Thursday, March 28, 2019

Suerpower of a small/retail investor

In today's financial markets, technology and expertise are concentrated in Wall Street. The large institutional investors have more access to information and tools that they can deploy in scale. It is, at first, intuitive to a small investor that he cannot go up against a large investment firm and aspire for better gains that them. This blog post is for those investors.

A small investor, someone with less that $100,000 to invest, has one great advantage over the institutional investor.

Independence

An retail investor has control over his decisions. He can take decisions at his own pace. He can learn and invest with complete freedom. This is the ultimate power in investing.

Everyday, more  esoteric assets are available to the small investor.

The transaction cost, which used to be very high for a small investor, has now been reduced to almost zero, with the advent of zero brokerage trading apps (https://robinhood.com/).

Many research sources are online, allowing the individual investor to read and follow any school of investing.

The original power of the individual investor is still intact. It is being his own master. (source - https://www.poemhunter.com/poem/invictus/)

It matters not how strait the gate,
How charged with punishments the scroll.
I am the master of my fate:
I am the captain of my soul.


I first came across this poem in an online lecture by Prof. Sanjay Bhakshi. (https://fundooprofessor.wordpress.com/ )

So if you are a retail/small/individual investor, freedom is your superpower.

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