Investing Secrets of the Big Investment Banks
Most investors feel at some point during their investment career that the large institutional investors somehow have an upper hand or an advantage when it comes to investing in the financial markets. While this used to be the case the Internet and software developments have began to erode these advantages and allow individual investors to play on a level playing field with the professionals.
Traditionally one of the main advantages Investment Banks such as CL King & Associates have had is their experience. Even as traders retire, leave or get fired they always leave behind a trail of knowledge and experience that the business managers learn from and use to decide future trading or investment decisions. As an individual investor you can sometimes feel that you are so inexperienced in a particular investment type that it is too risky to proceed and invest. This effect can be described as a barrier to entry. Individual investors need a certain amount of knowledge of a market to be able to enter and trade.
Another area where the banks have an advantage is manpower. Traditionally traders in banks had an army of research analysts that will process and analyze huge amounts of market and company data in order to find profitable trades. In more recent years traders at financial institutions have increased this advantage by automating their research and stock picking using computers.