Home / Articles / INVESTOR PROTECTION TECHNOLOGY - THE NEED OF THE HOUR

 

As atmanirvar Bharat is now mission of our nation, there are some question comming to my mind that is it really possible to be atmanirvar without our own investment? Since 1990s we have changed our self from controlled economy to market economy. But unfortunately common people do not know much about market mechanism and importance of capital market. Only 3% of our population directly or passively involved in capital market. How it is possible to be real atmanirvar without equity culture?


It is true several times people went to stock market but without proper knowledge and skill they are unable to handle the volatility which caused huge losses and they left market.


Now a day’s technology changing many thing in our society .Algorithmic trading is now reality for small investor the cost has come down as less as 500 rupees per month. At this stage why we are not developing investor protection technology for them? Govt. of India, SEBI spending huge amount of money on investor education. But if we spend a portion of this fund to develop investor protection technology that would be more effective to reach the goal. Each and every day there are so many journal , tv channel, awareness program are trying to educate our self on that, but one thing is very unclear to me how one person use all this knowledge at market hour? While he is busy with other profession. Is it possible for a doctor, advocate, engineer, CA, even an cab driver to use this investment knowledge at market hour stopping his dally work? That’s why large number of our population is not participating in equity market.


In our stock exchanges there are stop-loss system to protect an investor from losses but each everyday he has to feed his stoploss if once it hits stoploss goes up further there are no any tool to repurchase it, but both are possible by technology. I have seen many investor who made handsome profit within the span of 3-5 years, but suddenly he lost all of his gains within 6 month in bear market & start to making losses .It is important to protect the capital of an investor in this volatile environment.


Keeping all this things in my mind I have developed an application where investor needs not to be vigilant all the time. once he keep a price in the system it will start working like a thermostat, It sell your stock below your mentioned price and will repurchase it if the stock make an U turn. To avoid excess jobbing there is a mechanism which keeps your desired price half precedent up and down with every trade. Once the maximum trade limit crossed the system will send an alert and temporary suspend working till reset. For gap-up and gap-down the price will change itself at opening and closing price. Investor does not have to feed stop loss level every day. It will remain in the system until you change it and will work automatically regular basis.

 

 At present there is some limitation at this system. I believe within a few days by the support of technology & AI we can make this application more efficient. Once people get the sense of security & comfort in this market the participation will go up, as a result resource mobilization from primary market will also go up and that will be the real flavor of Atmanirvar Bharat.

 

About the Author:

The Author is Past dealer of DSP-MERYLLYNCH, Castle Securities, Past chairman-Rotry District 3291 Financial Literacy Committee, at present dist co-chair of the committee.

 

Views expressed herein are not necessarily the views of the organization.