First, they search for information on the individual investor.
“This time period is usually a very important one for the market. So to say that somebody buys $500,000, buys it in two days, is important knowledge,” explained Bhattacharya.
“It tells you about the investor that is buying. We ask how much money are they buying, what are they buying … and how are they buying it?”
“They are investing for different reasons,” he said, and he says while there is money to be made for those with great insight into the market, “this is not one-size-fits-all”.
He said the best traders use information to see where others are, and he stresses that this is often what people have a hard time seeing as they are not typically in contact with traders to ask these kind of questions.
As for the investment itself, Bhattacharya doesn’t believe the average investor should pay much attention to a trader’s trading strategy.
“I think the best time to look at trading strategies is when you are in a position of influence. For example, you buy $1 million dollars worth of stocks, and you think, ‘that is an interesting idea’ … you don’t make a move until you are confident that a couple of days from now the market is going to do something. Then you make a move after you have been in a position to be able to make it,” he explained.
But he says investing depends on the quality of information, and to help investors develop the skill of buying and selling using simple, easy to understand words is good practice for those already involved in the financial services industry.
He says these days, with the availability of information online from brokers, “it is very hard to buy.”
“Now that you can just look at the spreadsheets of the broker you are using and see what their orders are, a lot of investment decisions are made based on these spreadsheets of the broker,” he explained.
However, Bhattacharya stresses that the information on which you do purchase is important to make sure the investment is worth it.
“That is one of the keys, to make sure that somebody who is getting money is actually making enough money to make that kind of investment,” he said.
“The investor can’t have an opinion of what happens.”
An update on this matter will be posted on the Board’s website.
The Board has approved an
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