Look For Judgement

wealthymattersAbout a week back I was pitched an algo trading scheme that was offering a mostly 12%+ return monthly. There were the past performance figures, with even the odd slip-up.

At the point I was put off by the fact that a bot would have access to by trading account. It seemed a risk not worth taking.

Moreover, I had not the experience to know what are normal returns from futures trading.

On Saturday last, I had lunch with a friend who owns a stock broking firm. And he was willing to offer a guaranteed 20% return per year only. Anything more in his opinion would be undoable/too risky and likely to bankrupt any broking company.However his was manual trading, not algorithmic trading. Read more of this post

Be Hands-On In Money Matters

wealthymattersEvery day,these days,scores of businesses are opening shop in the financial advisory space.Their siren call is ‘Listen to us!Give us your  money.Then relax,take it easy or go off and make more money.We will ensure you get rich and have have a great worry free life.Your family will never want for anything in this life.’Each of them have propitiatory tools and processes that they claim are magic wands that will ensure your financial well being.

The problem here is that personal finance is fundamentally personal and varies from person to person.There is a huge value component that these companies gloss over.Most of them will tell you that you need to build a corpus for your children’s education and marriage,your retirement and to take care of providing for health care.Many have readymade numbers for these goals.A few more will throw in planning for a home purchase,car purchase and perhaps a foreign vacation.But is this what you really want?Perhaps you want multiple homes in multiple locations?Maybe you wish to build them yourself,with your own hands.Log cabins anybody?How many of these plans allow enough flexibility for you to be yourself and do what you really want to do?Since it’s plans that are being sold,do planners really want to go beyond the cookie cutter variety and put in more effort?Do they have the competence to dish out advice for unique goals? Read more of this post

%d bloggers like this: