Sep 2 2010
Managing one’s financial portfolio is sometimes equated to trying to predict the weather. You can look at the clouds or the seasons, but as often as not forecasts will just be wrong. Ironically, meteorologists and newscasters receive heated threats over missed or ill predictions. I have a theory that they hedge their bets by always predicting rain if there’s any chance of it, and predict it four to eight hours prior to it actually arriving. This is just based on personal observations.
My personal observations about predicting stock investments is that you just as well might use a magic eight ball. There are many different investment strategies, none of which work all the time. And once you find one that does work, the contrarians tell you to do the opposite. People can spend long hours researching a company and still end up losing money. Others pay advisors to do the research for them. Some blindly pick stocks based upon a nominal amount of research.
PortfolioRunner is a site that applies multiple strategies to make predictions about the stock exchange. They do all the financial research and provide trading recommendations. It’s designed to be a complete substitute for financial advisors.
PortfolioRunner offers three main branches of investment strategies. The first is Technical strategies, which are based on pattern recognition and indicators. Next are Fundamental strategies, which are based on calculating ratios, making projections, and discounting. Finally, Community strategies which track the latest picks by top investors.
The people behind PortfolioRunner are seasoned professionals in stock trading, IT professionals, and math geeks. They have a couple Mathematics PhDs who developed the portfolio management algorithms the drive PortfolioRunner’s analysis. If that doesn’t mean anything to anybody, what it boils down to is they’ll tell you what stocks to buy and then sell, and when. It does all the hard work for you, just like a financial advisor.
Upon signing up you’re prompted through a quick set up process. Here you indicate your risk tolerance, current holdings, as well as how much cash you’d like PortfolioRunner’s engine to make investment recommendations on. It gives you the option to select up to three investment strategies. These are the brains behind the recommendations that are made. Each strategy’s history is documented. What this means is you can readily see the track record from its inception and exactly how much money it made. Once your account is set up, you can get your first set of recommendations. Buy recommendations are ranked based upon the risk level involved, and include the quantity and price it should be bought at. PortfolioRunner isn’t intended to be used for intra day trades, and as such, all engines are run after market close.
A common usage would be to sign up for an account, and then take a few minutes to configure your preferences. From there you can view your dashboard, check to see what stocks are recommended to buy or sell. Every time you transact in real life, just update it in your portfolio. Then PortfolioRunner will readjust your account and supply more buy recommendations based upon the strategies you selected and your portfolio preferences. Although you’re limited to three investment strategies per portfolio, you can have multiple portfolios. So, let’s say you start out with $10,000. After watching it grow to $15,000 you decide it’s time to invest more. Just create a new portfolio with its set of strategies, and off you go.
Another helpful option is that you can research stocks of your choosing using PortfolioRunner’s engine. So say you have a nutty friend that is always coming up with obscure investment ideas. (Doesn’t everyone have a friend like that?) You can submit these stocks to learn how they measure up to PortfolioRunner’s recommendation engine.
PortfolioRunner provides a fully functional risk management tool. It’s designed by professionals within the industry with strong technical backgrounds. All its trading recommendations are tracked so its successes can be measured and monitored. These successful investment recommendations are currently all free for the taking, during PortfolioRunner’s beta phase. From seasoned investors to those who prefer to have someone do the research for them, PortfolioRunner is a powerful tool to guide investment decisions.