Investing in the stock market is difficult, even if you are trying to follow my picks which are usually right. For example, I recommend U.S. Silica to be my stock of the year for 2015 on December 31st. Year to date U.S. Silica is up over 13% while the S&P 500 is up about 2.5%. This is a huge out-performance. That being said, investing in U.S. Silica has not been easy because it has had wild swings. This may have caused you to sell it instead of holding on. This is a natural reaction, but it would have been wrong. I have told my readers to buy the stock many times, but I cannot hold your hand every time the stock drops. If only there was a better way to follow me or any other investor without worrying about succumbing to your emotions.
Now this exists with the launch of Instavest. Instavest allows you to see my holdings. It will give you the confidence to hold on during the rough patches. You will now no longer have to wonder if I sold U.S. Silica or any other stock that I have advocated buying in between my blog posts. I have real money on the line, so you know that I am being honest in my recommendations. The added advantage to Instavest is that when you have an account you can click copy so that your investment is tied to my investment. When I sell the position, you automatically sell the position. This takes the hassle and angst out of investing.
As with all great opportunities there is a cost. The cost to you is whatever you chose to gift me or any other trader that you follow. The gift comes as a percentage of the profits you make on a trade. The gifts range from 1% to 5%. Let’s compare this to mutual funds. Mutual funds have what is called an expense ratio which is the amount of money that you pay the fund out of the total assets you have invested in it. These average about 1.5%. This gets taken out no matter how poorly the fund does.
Although the gifts that you give investors on Instavest most likely going to be lower than mutual funds’ fees, the performance is what truly sets it apart. On Instavest you can track an investor’s performance and see his/her reasoning behind each position. This allows you to transparently compare investors’ performance and only copy the ones with the best track record.
If I was going to describe Instavest in terms of choices to put your money, I would describe it as a hedge fund for the small investor. This is because it is a type of active management of investments and it can be accessed by anyone. This type of investment opportunity already exists in what is known as a fund of funds. A fund of funds invests money into a variety of hedge funds or mutual funds. It can allow you to gain access to a fund that has a very high minimum investment. The problem with these funds is that it charges a fee which is added on top of what the fund it is investing in charges.
If you are skeptical that an investor such as myself can beat the market, I would suggest you look at some studies which indicate that seeking alpha can help you beat the S&P 500’s performance. Maybe you don’t like my style of contrarian investing and would rather copy an investor that only buys dividend stocks. If so, you can always ignore my predictions and copy someone else’s trades.
I truly believe that Instavest will revolutionize personal trading accounts. If you’re interested in opening an account click this link.
BTW: I was not paid to write this and have no ownership stake in Instavest. I only have a trading account with them.