How much can a software developer learn about individual investing from being employed developing financial software? A few examples of such software would be the Bloomberg Terminal, charting software, brokerage account websites, user interfaces for traders, or quantitative trading algorithms. Would certain projects provide a better learning experience than others?
closed as primarily opinion-based by gef05, user32479, Dheer, JoeTaxpayer♦ Dec 28 '15 at 3:44
Many good questions generate some degree of opinion based on expert experience, but answers to this question will tend to be almost entirely based on opinions, rather than facts, references, or specific expertise. If this question can be reworded to fit the rules in the help center, please edit the question.
My master's thesis was on using genetic algorithms and candle stick method. If you are familiar, the AI was used to answer questions like "what is a long day", which is not formally defined in most candle stick texts.
So in theory unlimited potential for learning including teaching machines to learn. Wall street pays pretty well for such developers, and if you are young and single man Manhattan is pretty sweet place to be.
In practicality your formula for building wealth is the same as everyone else's: get out of debt, build an emergency fund, and invest. Initially invest in growth stock mutual funds through a 401K (assuming US).
The software you provided as an example won't teach you much about investing.
The most important things of investing are:
- allocation: do you invest your money in stocks, bonds or real estates?
- diversification: international diversification, diversification between large and small companies, diversification in time, etc.
- managing costs and taxes
These are the only free lunches in investing. Allocation tells you how much expected return (and also how much risk) your portfolio has. Diversification is the only way to reduce risk without reducing return; however, just note that there is market risk that cannot be eliminated with diversification. Every penny you save on costs and taxes is important, as it's guaranteed return.
If you were to develop e.g. software that calculates the expected return of a portfolio when given allocation as an input, it could teach you something about investing. Similarly, software that calculates the average costs of your mutual fund portfolio would teach you something about investing. But sadly, these kinds of software are uncommon.