Remember Goldilocks and the three bears? The first porridge is too sweet, the second too salty. But the third – it’s just right.
How does Goldilocks relate to the world of investing? While just a children’s tale, we think there’s some merit to finding that so-called “sweet spot.” Hear us out.
Traditionally, those interested in becoming serious investors are limited in their options.
They could either A.) seek out an investment advisor to manage their portfolio for them or B.) trust the advice of strangers in an online investor forum.
For most investors, neither is ideal. Below we’re breaking down the pitfalls of seeking investment data the traditional way. Plus, we’ll discuss how investors can take better control over the decision-making process.
What Does an Investment Advisor Do?
An investment advisor is an individual who can legally select and manage investments for a client. A registered advisor is governed by a state’s regulator or by the SEC – depending on the number of assets under management (AUM).
Investment advisors serve as fiduciaries to their clients, meaning they must act in their client’s best financial interest.
Who Do Investment Advisors Work With?
While not always the case, investment advisors often require clients have a certain net worth in order for them to work together. This can make it difficult for young professionals, new families or those who’ve accumulated significant debt to find and afford a registered investment advisor.
An advisor will typically charge a percentage of the AUM. If an advisor charges a quarterly 1% AUM fee, for example, and they’re managing $500,000, their quarterly fee would be $5,000 – or $20,000 annually. Considering the median household income in America is $67,521, this arrangement isn’t feasible for the majority of average investors.1
In many cases, DIY investors turn to a more (seemingly) affordable alternative when seeking investment data and advice – investor forums.
What Are Investor Forums?
An investor forum is an online space for individuals to meet and discuss topics regarding investments.
Every forum functions differently. Some groups may allow members in by invite-only, while others may create tiers of access dependent on a member’s level of activity. These forums are typically overseen by moderators, and topics include anything from regulation changes to breaking investment news.
You may remember… trading forums had their 15 minutes of fame at the beginning of 2021, with the spotlight on Reddit’s /WallStreetBets and the aptly named “Reddit Stocks” that wreaked havoc on the market. While the fast and wild ride made some investors rich quick, the event brought to light the risks of using investor forums for stock market advice.
Those who attempt to provide investment advice in these online forums are not required to have your best interest at heart and, most importantly, they may be breaking the law.
When an investment advisor is unattainable and investor forums are cause for concern – where can DIY investors turn to find relevant, attainable data?
Introducing Dialect
Dialect is an AI-powered platform that uses natural language (meaning you don’t need to know or memorize commands) to immediately deliver simple, relevant data you can use to make investment decisions.
Ask a question, like “What are the highest volumes of options premium bought today?” and receive the data in seconds. Dialect gives you the reigns to sort through information quickly and efficiently by interacting with your computer through typed or voice-activated questions the same way you would ask a person.
Who Is Dialect for?
Because Dialect is built to be an intuitive, natural language system, it’s suitable for any level investor. Ask it to show you information on a singular stock, or direct Dialect to sort through thousands of options in an instant. Not sure what to ask? Utilize the preset questions, alerts, and data dashboards to get you started.
The purpose of this platform is to serve as the sweet spot for retail investors. How? Because it provides the data analytics needed to quickly and easily make your own investment decisions at your convenience – no costly advisor or community forum required.
Interested in learning more? Sign-up today to receive a free 1-week trial, or reach out to our team with any questions.