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Hmm, perhaps taking the advice I should delete MoneyLife Podcast from my iPhone.
On the other hand, I understand what he is trying to say. He is mostly referring to apps with transactional capabilities but if you are not disciplined your monitoring app will urge you to rush to your computer when market is tanking and you do not have a plan or discipline. Financial Institutions have vested interest in your frequent trading to make money/commissions on trades so they will push these new capabilities and I agree with him that if you think you have an edge over professionals in rapid trading, you will be hugely disappointed. It is a new rope to hang yourself up in that sense.
But that is not new. With each new technology we have gone through that. Before you could logon to your account in computers, you had to call your broker or send written buy/sell instructions to your mutual fund company. It was a slower process and in the middle you could come to your senses having thought of the situation a bit longer. Heck, you would only find out about the NAV of select mutual funds on the next day's WSJ paper. I am sure at each point of technological advancement we got such warnings.
Comments
On the other hand, I understand what he is trying to say. He is mostly referring to apps with transactional capabilities but if you are not disciplined your monitoring app will urge you to rush to your computer when market is tanking and you do not have a plan or discipline. Financial Institutions have vested interest in your frequent trading to make money/commissions on trades so they will push these new capabilities and I agree with him that if you think you have an edge over professionals in rapid trading, you will be hugely disappointed. It is a new rope to hang yourself up in that sense.
But that is not new. With each new technology we have gone through that. Before you could logon to your account in computers, you had to call your broker or send written buy/sell instructions to your mutual fund company. It was a slower process and in the middle you could come to your senses having thought of the situation a bit longer. Heck, you would only find out about the NAV of select mutual funds on the next day's WSJ paper. I am sure at each point of technological advancement we got such warnings.