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A New Age of Investing? Nope, But Digital Tools Can Help You.

By U.S. News & World Report

With the rise of the digital era, many investors believe they can make investment decisions using charts and algorithmic trading to help improve their investment performance.

Technical analysis is the name given to making investment decisions based on market activity, like past volume totals or prices. It often uses charts as a way to try and help clarify when to make buy or sell decisions. You hear interesting terms thrown about by technicians, phrases like the double handle, flying death cross, 200-day moving average, 50-day moving average, higher highs, lower lows, or just maybe, the ever-popular triple humpback bottom — as opposed to the double bottom or just a nice-looking bottom.

Another area that has become popular is algorithmic trading, which is using computer-based programs to make investing or trading decisions. Algorithmic trading is based on mathematical formulas that weight different variables of the formula according to how much emphasis the variable should make up of the investment decision.

In most institutional cases, the basis for using algorithms is to bring trading costs down by automating trading decisions, more commonly known as high-frequency trading. Algorithms are also used by institutions to help identify potential arbitrage situations in asset classes, such as equities, bonds, currencies, interest rates instruments or in merger arbitrage.

[See: 20 Awesome Dividend Stocks for Guaranteed Income.]

Interestingly enough, high-frequency trading volumes as a percentage of total volume of trades have been trending down. In 2009, HFT trading accounted for 61 percent of all U.S. equity trades and 38 percent of all European trades. In 2013, those figures dwindled to 49 percent in the U.S. and 25 percent in Europe. The high-profile incident of the flash crash in 2010 and the 2012 problems of then-HFT king Knight Trading have further called into question the value of HFT platforms. Just recently, IEX Group set up a new exchange with a speed bump as an alternative to HFT platforms used by other large exchanges.

In any event, for individual investors the digital tools like charts and algorithms can potentially be useful if applied in conjunction with solid analysis of any business you are considering for an investment. Looking at the strength and history of the management, competitive positioning of the business, balance sheet situation, five years of operating results and future growth potential are fundamentals that can be enhanced by charts, which show past stock performance and trading volumes.

Algorithms might be useful in making your trades more efficient, especially if you are placing large-dollar trades. Still, if you sense skepticism about using the new digital tools as your only method to make investment decisions, you are correct, as services are similar to fortune tellers or palm readers.

[See: 11 Stocks That Donald Trump Loves.]

Consider the history of the investment industry and some well-known investors that made their fortunes and those who owned shares in their entities who are quite well off. Ben Graham, Warren Buffett, Sir John Templeton, Michael Price, Charlie Munger, and more recently, activists like Bill Ackman, David Einhorn, or even Carl Icahn all are fundamental investors who put a great deal of work into understanding, evaluating and then investing based on business fundamentals. Their investment styles may be different based on value or growth as an emphasis, but analyzing potential opportunities is the common underlying theme.

The best way to build wealth is through good, old-fashioned fundamental business analysis and by making well-informed decisions to invest in the best businesses one can find at the most attractive price one can.

Develop a routine, a method, or a process you build as a way to systematically think about evaluating potential investments. First, pick three to five businesses you are familiar with and feel like there will be opportunity for the business to grow for a long period of time. Second, read the most recent 10-Q filing the company made with the Securities and Exchange Commission to become familiar with the management, operational performance, business quality, competitive landscape and financials.

Third, consider visiting a few locations (if they are retail based) to get a sense of how the business functions on the ground. Fourth, if possible, contact competitors or analysts to get their point of view about the industry. Fifth, compare the valuations of your opportunity versus the others to see how it stacks up.

[Read: Should a Part-Time Job Be Part of a Retirement Plan?]

You will notice none of these steps involve the double bottom, death cross or a moving average. Still, these new technological tools are here and it makes a great deal of sense to apply them in ways which can be useful.

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A New Age of Investing? Nope, But Digital Tools Can Help You. originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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