Investment has always been a game of wits, where one has to consider many factors to make the right moves and come out on top. Thus, investment has always been tightly interlinked with knowledge and understanding of the market, the industries, and, in fact, life in general – take, for example, the breadth of hedge fund intelligence needed to successfully trade in pooled investments.
But now the information accessible and useful for the investors is greater in volume and travels faster than ever. Thus, one has to be very attentive to their investment intelligence and make sure to use the best available tools and methods in an effort to be well-informed in their investment decisions.
Investing with intelligence
When we speak of intelligence, we usually mean one of the two things. Either we talk about being smart, intelligent, or the collection of information that can be used for some strategic purpose. It is easy to see that these meanings are not entirely unrelated.
And making good investments is closely connected with intelligence in both of these senses. Successful investors are intelligent, capable of understanding the complexities of economics and business. They are also aware of a lot of facts, relevant to the potential investments. In other words, they are utilizing high-quality investment intelligence.
Today investment intelligence is especially important as there are so many various types of data that can be very informative for the investors. And no matter how intelligent or skilled you are, if you are simply unaware of something that others know, you are prone to make mistakes.
Knowing what others know is absolutely crucial because the market is a network of actors where every action changes the conditions for others. With equal or greater knowledge, you can presume with some assurance how they will act and what that means for you. But if you know less than others, you will be surprised by their actions. And being surprised in investment is usually not a good thing, since one aims to make calculated decisions with predictable outcomes.
This is why investment intelligence based on quality data is more important than ever. And investors are well aware of this fact and doing their best to get their hands on as much data as possible.
Methods of investment intelligence
Understanding investment intelligence in the age of big data requires some work and focus from both the newcomer investors and the old wolf of investment making sure they are still on top of things. But work and focus was never an issue for serious investors.
There is a lot to know about the utility of various types of data for investment. Here are 3 simple methods that may help to get the grasp of matters in investment intelligence today.
1. Get your data raw and make the most of it
This is the way of the modern investor. Raw data has all the potential intact, no value has been lost through processing. With the right tools and professional help if needed, an investor can use raw data to extract unique insights and build high-quality investment models. Great advantage of raw data is that you get it fast, without letting the information age. This method combines two of the most important features of contemporary investing – a lot of valuable data and decision-making skills of the investor.
2. Track constantly
Life is fast these days. This means that the markets are fast to fluctuate and generate important events. This also means that the information about these events travels fast. Therefore, it is advisable to use the constant-tracking method and be on top of everything that happens as it happens. This is done with the help of AI tools and algorithms, made specifically for tracking and reporting market events that could mean great investment opportunities. Automated tools are the best way to make sure that you get your investment intelligence in time to make profitable decisions based on it.
3. Do the research
If the two methods above seem a bit too much and you would rather start with something simple, the research method is perfect for you. Research is something we do when we try to figure out how to do something or make a choice. Investors have always done it as well. Research in the era of big data means that you need access to databases where data relevant for investment is stored and updated. There should be filters available to sort the data so that you could view it in various ways and explore its insight-providing capabilities.
Mastering the data
The methods above are just the stepping stones that will help you master the usage of data for investment. You can combine all these methods and add more to find what works best for you.
What matters most is that the more you practice utilizing big data analysis for investment, the better you will get at it. And then you will be able to find new and exciting ways to identify unique investment opportunities.