Investors know that investing money is always a big decision. With that being said, on the one hand, there are risks involved, and, on the other, there are also opportunities for great returns. This causes investors to be very strategic about their decision-making process. 

Investors strive to make well-informed decisions when choosing to put their money into one business rather than another. Well-informed investment decisions rely on high-quality investment intelligence. But to properly utilize investment intelligence, it is helpful to understand a few key points.

Data-driven decision making

The importance of big data and analytics for making business decisions is growing significantly every day. And this will most likely be the case for the foreseeable future. There is a noticeable tendency for leading organizations to adopt and cultivate data-driven decision-making strategies.

This means that data and business intelligence is seen as the key to success in all areas of business and finance. Investment decisions are no exception. Investment intelligence is precisely this: the ability to utilize data gathering and analysis tools for better insights into the current market and industry trends.

5 things to look out for

When starting to look into investment intelligence and how it gives an advantage for your investment decisions, it may seem a bit overwhelming at first. To make it a bit easier, here are 5 things that will help you get the hang of it.

1. It all starts with data. For data-driven investment decisions, you obviously need data. What might be less obvious is that sources for data are everywhere. Data relevant to investing is no longer comes in the form of official reports and press releases. Particularly, alternative data is now used and favored by investors worldwide. With the rise and growth of the internet, there are massive amounts of alternative data, if appreciated, could provide much assistance in choosing where to invest.

2. Chewing what you bit off. Simply gathering the data is not enough to count it as investment intelligence. To make use of it, you would need to be able to process it within a limited time. Like most things in life, information ages. If you do not process your data in time, it may no longer be beneficial for investment decisions. Processing data fast enough may be more challenging than acquiring it. Therefore it is advisable to consider your data processing abilities and options beforehand.

3. Be alert. Speed matters not only in processing data but also in staying current and aware of market trends. Market moves fast and so should you. Therefore, one of the main goals of productive investment intelligence is to constantly follow what is going on and inform the investors as soon as possible. Due to this it would be a good idea to build or look into tools that could alert on events that generate or modify investment opportunities.

4. Listen to the people. One way to make predictions about which businesses will take-off is to find out what people think about their products and services. With data analysis tools, the information surrounding the general public's opinions and sentiments is now more available than ever before. This constant creation of internet data is fueled by social media. Social networks are filled with people's likes, dislikes, observations and wishes. Looking into what people openly express, regarding their needs and wants, is a great way to be directed towards where to invest for future market gains.

5. Use the tools. The amounts and types of data we are dealing with today is not something that could be dealt with manually. Luckily, the capacities of artificial intelligence to do it for us is ever-growing. Therefore, to have an advantage when making investment decisions, it is necessary to get comfortable with the data filtering and analysis tools available. At the end of the day, the decision whether to invest or not is going to be made by humans. But knowing when and how to utilize the technology is also part of the decision-making process.

Investor in the age of information

It is undeniable that the game of investing has changed a lot in the last few decades. The developments in information technology has affected every aspect of living. And this impact is especially felt in the world of finance.

But being able to adapt to changing circumstances is not a new requirement for investors and financial experts alike. It is in the very essence of what they do, as is the ability to use their knowledge and understanding of the current market trends and insights to make predictions about the future.

The difference is that in this age there is so much more knowledge available than ever before. Investment intelligence tools are necessary to handle it fruitfully. But using machines and algorithms to work through the vast fields of information only broadens the realm of possibilities for investor's decision-making abilities to be displayed.