Humans are hardwired to seek out predators and react to warning signs. The behaviour helped our ancestors to survive the tough times. Sadly, it is not helping us make wise investment decisions.
Investing is a continual struggle between emotion and logic. Only two types of people make money in the market:
- First, who end the struggle
- Second, who use advanced tools to set aside emotions
We created Invest Jarvis, as we believe, it is impossible to control emotions for most investors. We will talk about the advantages of using Jarvis for investing.
Common investor behaviour
Let us understand the cycle of investor behaviour. You let us know if you have ever been in the below situation.
When the market starts rising (most of you must have seen it last year), you feel optimistic. As the NIFTY goes up, so do your emotions. Market hits an all-time high, and you are in a state of euphoria. The natural state is to buy since you assume the rally will continue, and you don’t want to miss it.
Then the price starts going down, just a little. You start feeling anxious, and before you realize it, the fear has taken control of you. You get convinced that correction will happen, and if you don’t sell, you will lose all the gains.
It is normal to enjoy the market highs. However, you should know that the higher the price you buy a stock, the riskier your investment. If you buy at market lows, you have maximum opportunity to make gains.
You may think that since now you know the concept, you will start buying at lows and selling at highs. It is easier said than done. Read the first line of the article – it is hardwired within us.
Investing based on emotions
When you invest based on emotions, what you are doing is acting on what you wish should happen. Everyone dreams of having gained in the market upswing. If you make investment moves based on what you wished would have happened, it is similar to driving while looking in the rear-view mirror. It can be dangerous for you. If you continue to do, you are likely to get hurt – sooner rather than later.
You are only human, so what is the solution to this problem?
Jarvis is the solution – But how?
Jarvis is the right solution for you. Do you acknowledge that emotions have been the major hindrance for you? And that because you were unable to control emotions, you have not made significant gains in the stock market.
Jarvis is designed to eliminate the emotional aspect of investments. It is built using Artificial Intelligence and helps you create your own personalized equity portfolio based on your risk profile and investment horizon.
Machine, can it really work better than humans?
When it comes to investment, machines definitely work better than humans. If you are not from a technology background, you may find it hard to believe a machine can do better than humans. To remove your doubts, you can compare the returns of Jarvis and NIFTY. It has beaten NIFTY in terms of returns for a very long time.
One more benefit
Every financial advisor, investing guru talks about diversification. The concept is easy to understand – you have to invest in different kinds of stock to minimize your risk. Most of us know that we should buy at lows and sell at highs but fail to implement it. Similarly, we know we should diversify, but we fail to implement it.
The problem is most of us pick stocks randomly. There is no proper planning, and hence it becomes difficult to diversify. We would request every reader to evaluate their portfolio and find if it is diversified?
When it comes to Jarvis, it suggests you companies and creates your portfolio such that it is always diversified. You may forget about portfolio rebalancing and reviewing your portfolio -Jarvis does not.
There are so many stocks in the market. Some good, some bad, and from a few, you should definitely maintain distance. Avoiding bad stocks is not the only problem. There are many good stocks in the market, and you cannot buy every good stock. Hence, it becomes difficult for an investor to decide which companies he should pick.
Jarvis helps you in such a situation. The intelligence of Jarvis guides you – which stock to pick.
Managing risk is another important aspect of investing. You may buy an excellent share today, but the fundamentals can share after some time. For a retail investor, it is challenging to follow each update for all stocks in her portfolio. If not done, it is a risk for investors. They lose money in the market because they are unaware – when to exit.
To manage your risk, Jarvis tracks the performance of every portfolio and generates alerts related to:
- Timely Profit Booking
- Minimizing Losses
- Managing allocation
- Periodic Rebalancing
- Portfolio Reset
Time is the most valuable asset. If you think the same, Jarvis is the right choice for you. If you are looking for a hassle-free investment where you don’t have to spend hours searching for good stocks and days evaluating the performance of your portfolio, Jarvis is the best option. It gives you the freedom to spend your time as you like as it is always at work to pick the best stocks for you. So you can get the best returns on your investment.