Software Is a Trader, So Be an Investor
They could be.
I have written a lot about the John Henry story lately, as described at Wikipedia.
John Henry was a strong 19th century man who was being replaced by a machine. The John Henry story is the story of the U.S. economy. We keep eliminating labor costs, and increasing the value available for personal labor -- people doing for other people what we prefer that people do.
The story of my generation is of minds getting the John Henry treatment. Middle management isn't coming back, and many sales jobs -- travel agents, brokers -- aren't coming back.
Stock trading will continue, but you're no longer playing against the market, or the other traders. You're playing against the machines. I think the way to win is by looking over the horizon, to a point algorithms can't see, toward real value. I hope I'm not repeating myself, but for 2013 the lesson seems clear to me. Trading is out, investing is in. At the time of publication the author had positions in GOOG and AAPL. Follow @DanaBlankenhorn This article was written by an independent contributor, separate from TheStreet's regular news coverage.Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
TheStreet Quant Ratings
TRY IT FREENew! $49.95/yr
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
Product Features:
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Dividend Stock Advisor
TRY IT FREEJim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
