Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
mechanical trading systems
Market terminology

Why mechanical trading systems should be used to trade in the market

13.01.2021
2 min read

Mechanical trading systems: essence and efficiency for stock trading

The investment market in Russia lags far behind other countries in terms of development. Stock trading here does not yield the expected returns and involves some risks. According to statistics, only 5% of investors make a profit in the first six months, while the rest suffer losses. And in most cases the reason for the failure is insufficient analysis of the situation and not a serious approach to the case. In this activity it is important to use special instruments, one of which is considered to be mechanical trading systems.
Working with stocks requires attention and careful analysis of a number of points. It is necessary to draw up an action plan, to record reporting, to study the market situation. Using mechanical trading systems or MTS, you can control the trading process and analyze your actions for further correction. Such an approach will allow increasing profits and minimizing expenses in the future. MTS gives an opportunity to receive income in the amount from 60 to 100% regardless of the market – side, growing or falling.
Mechanical trading systems is a list of rules and recommendations that regulate the processes of opening and closing positions in the market. Thanks to these tools it is possible to avoid most mistakes when trading shares.

mechanical trading systems

MTS can be of two types – trend and counter-trend. The first provides income if there is a trend. And it is the trader’s duty to see it at the right moment and to hold the maximum period. However, trend systems have one nuance. In case of sideways market movement, unprofitable signals can be actively generated. At the same time, several successful deals in this approach bring a large profit, which will cover losses in loss-making trades. Counter-trend systems are used for the sideways market.
When applying MTS, the ratio of the number of profitable and loss-making transactions is taken into account, which is obtained by comparing the average profit to the average loss when analyzing one transaction. The system also generates the possible size of profit for a certain time.
Besides the correctly chosen instrument, one should also choose the market. The Russian segment does not provide much opportunities for business development. The only ones worth paying attention to are the shares of UES of Russia and Gazprom. However, the securities of the second option have low liquidity, so there is no reason to claim a successful outcome of trading.

Tags: Market terminology
0
Previous Post Russian wheat could become one of the main export products Next Post American corporation Oracle Inc: business scope and product overview

You Might Also Like

crowdinvesting
Market terminology
Crowdinvesting as a popular tool for generating income
21.04.2023
Dragonfly Doji as a powerful tool
Market terminology
The Dragonfly Doji as a powerful tool for tracking market trends
11.11.2024
Bid and Ask
Market terminology
Bid and Ask: rules for using them to manage trades
08.09.2022
harmonic patterns-2
Market terminology
Harmonic patterns as a tool for technical analysis in trading
18.10.2022
blue chips
Market terminology
Blue chips: what criteria companies use to get this status
07.05.2023
Types of transactions
Market terminology
What are the types of repo transactions and their features?
22.06.2021

Popular Posts

  • Ingeborg Mootz: a woman who became a stock player at the age of 75
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Analysts: Egypt’s economy to continue falling in 2023

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Popular Posts

  • Ingeborg Mootz: a woman who became a stock player at the age of 75
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Analysts: Egypt’s economy to continue falling in 2023
  • Field of activity of the American Monsanto Company Corporation
  • Spain’s economy performs best in the EU
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram

© 2024 CHASLAU KONIUKH. ALL RIGHTS RESERVED. Expert in marketing and project management, international investments, financial analyst.

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics