This post was written in collaboration with IG. While we are financially compensated by them, we nonetheless strive to maintain our editorial integrity and review products with the same objective lens. We are committed to providing the best recommendations and advice in order for you to make personal financial decisions with confidence. You can view our Editorial Guidelines here.
Amidst the numerous calls over the last year or so to prepare for retirement, start growing your money, and a whole host of other things you might mistake for nagging, more Singaporeans are starting to be aware of the need to protect and grow their money.
But speak to any young Singaporean, and one of the things you’ll realise is that there is still a very strong perception that investing their money is a hassle, or that because of the many unknowns involved, they’d much rather just keep their money in a savings account. We don’t really need to go into how that isn’t such a good idea, do we?
Many institutions have recognised this trend, and it’s no surprise then that in the next few years or so, making investing easy and safe will be one of the key priorities to get more people started.
Where Exactly is Investing Moving Towards?
We’ve spoken about algorithmic trading before, and if that term sounds like a different language to you, you should probably read this article first. Now, even some investment startups in Singapore are beginning to integrate algorithmic trading into their platforms, in an effort to ease the burden of decision making and remove the emotional aspect of it from growing your money.
Why is this happening? The simple answer is that when it comes to investing, discipline is a significant factor in determining the consistency of growing your money. Be it in being disciplined about protecting your losses, or adjusting your investment strategy, these are all things that we as humans might not always be able to keep up on a consistent basis. This is where algorithmic trading can come in and assist. And you can be sure that at an institutional level, companies are also looking to reduce the risk associated with human error.
But apart from removing the element of fear and greed from trading, algorithmic trading is also able to pull from a pool of historic data, and this is a huge bonus when it comes to adjusting your investments. The ability to back-test your trading strategy and learn along the way not only helps you to better achieve your ultimate goals, but also gives you a better understanding of your own risk profile and what you are comfortable with. This is something people very often don’t figure out and this can lead to either giving up altogether, or making uninformed investment decisions.
If It’s So Easy, Why Aren’t More People Doing It?
Mention the term “algorithmic trading”, and you wouldn’t be faulted for picturing a nerdy office worker hunched over screens of flowing data that no normal human being would be able to comprehend. Thankfully, this is rather far from the truth, and you don’t need to be some superstar programmer in order to utilise this trading system.
Additionally, many companies have recognised this increasing interest in algorithmic trading, and companies like IG have started specialised training seminars, such as their MT4 Masterclass to help beginners get started. Of course, educational seminars would be relatively useless to a newbie if the platform itself looked like something out of an IBM data center, which is why the Masterclass is also tied in with an extremely easy-to-use platform that requires minimal management.
One other huge barrier in terms of perception is that these educational resources are usually open only to “special” customers who invest a crazy amount of money. That’s hardly the case these days, and many introductory classes can be attended for free to get you started.
What Should I Be Paying Attention To Then?
The thing that you should really be paying attention to when it comes to growing your money is the ability to sustain this in the long run. For many Singaporeans, growing their money might seem to be a lofty ideal (I mean, who doesn’t want their money to grow right?), but sustaining it might seem really tough for the uninformed. Here’s where IG’s MT4 trading platform can help significantly.
You can either utilise ‘Expert Advisors’ created on the MT4 market place that can fully automate your trading, or make use of the bespoke apps created by IG that can monitor the markets on your behalf.
At the end of the day, if you’re someone who wants to grow your money but still think that investing is a huge hassle, this is certainly something you should be checking out, or at least getting familiar with. This year, IG launched their MT4 Masterclass series, which brings people all the way from the basics of understanding algorithmic trading to how to effectively utilise the platform. Did we mention that registration is free?
You can find out a lot more on their educational seminars here and get started on your investment journey without the fear of making mistakes or having too much to handle.
What are your thoughts on algorithmic trading? Would you prefer to be more hands on or have an automated system of trading? Share your thoughts with us here!
This article was sponsored by IG, the world’s No.1 CFD provider (by revenue excluding FX, 2016). All views expressed in the article are the independent opinion of Moneysmart.sg. The information in this article is meant for informational purposes only and should not be relied upon as financial advice. Users may wish to approach a financial advisor before relying on any advice provided by the website to make any decision to buy, sell or hold any investment product.