Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
system trading-1
Market terminology

System trading as a tool for market activity

18.01.2022
2 min read

How system trading is applied and its main points

Trading on the exchange implies carrying out a number of operations for the purpose of making a profit. However, you should be prepared for the fact that not all transactions are guaranteed to bring income. In order to minimize losses and multiply received funds, it is necessary to build a certain scheme of action. System trading which assumes carrying out of trade according to strict rules is a great help in that. The rules are based on the methods of market analysis, including fundamental analysis, factor analysis and others.
Beginner traders often act intuitively, which often does not lead to the necessary result. At the same time systematic approach allows to trade with clear structure, where it is necessary to:
– determine the entry point to a particular position;
– to indicate the approximate goal of where the asset is moving, as well as the amount of desired profit;
– fix a possible loss in case of force majeure;
– choose a way to control the position, to track changes in the size of profits and losses;
– analyze the risks, taking into account the various criteria that affect the position.
It should be noted that the fundamental analysis of the market is used very rarely, it is easier to use the model “buy when it goes up, sell when it goes down”. The financial analysis is also not quite suitable, it is rather necessary for calculating profits in the long term. That’s why the most popular approaches among traders are considered to be factor and technical analysis.system tradingThe basis of the technical option of studying the market is the principle that everything repeats itself. It means that the approach that brought a profit in the past may work this time as well. This rule can be put into a special program and start calculating possible trading results for these or those averages. In addition, technical analysis tools allow you to create a decision-making scheme based on the values of a breakout or rebound from resistance or support limits. With such an approach, you can get important components that allow you to apply the principles of systematic trading. And the more different data a player has, the higher the chance of making a profit and not losing money.
Factor analysis is the study of various events that affect price movements. It is based on the principle “buy based on rumors, sell when there are facts”. Modern programs make it possible to construct a market model where statistical factors and probable variants of processes development are taken into account.
The key advantage of following the concept of systematic trading is the exclusion of a human factor. Thanks to the fact that in this case activity is not based on emotions but on facts the psychological tension is reduced. It allows evaluating the situation soberly, searching for the best variant of solving the problem and, if necessary, acting quickly.

Tags: Market terminology
0
Previous Post India's technical recession is over: an overview of the situation Next Post Dmitry Glushakov, VTB-Capital: why the demand for platinoids is growing

You Might Also Like

Elliott Waves
Market terminology
Elliott Waves: an overview of the theory on the cyclicality of price structures
16.09.2022
Clearing activity in the market
Market terminology
What is a clearing activity in the market and its advantages
27.07.2020
Special purpose acquisition company
Market terminology
Special purpose acquisition company or SPAC: features of a shell company
09.03.2022
open interest
Market terminology
What is the open interest in trading
03.01.2021
short and long position
Market terminology
Short and long position on the stock exchange and their application in trading activities
19.12.2021
prop trading
Market terminology
What is prop trading?
12.02.2021

Recent Posts

  • 1Brookfield
    Brookfield and Closed Loop create the largest recycling company in the U.S.
    30.01.2023
  • 2Bybit
    Cryptocurrency exchange Bybit provided information about the volume of stored assets
    29.01.2023
  • 3Apple Search
    Apple Corporation is working on its own search engine, Apple Search
    28.01.2023
  • 4Tom Ford brand
    Estee Lauder made a deal to buy the fashion brand Tom Ford
    27.01.2023
  • 5Golden Visa
    The Golden Visa program has brought Portugal more than 6 billion euros during its existence
    26.01.2023

Popular Posts

  • Skolkovo analysts: the Russian energy market is suffering losses
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • The London Stock Exchange has announced the acquisition of Refinitiv

Social media

Editor's Picks

Chaslau Koniukh
Analytics

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

Press Secretary
17.08.2020
Expert Chaslau Koniukh
Analytics

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

Press Secretary
18.06.2020
expert Chaslau Koniukh
Analytics

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

Press Secretary
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

Press Secretary
16.05.2020

Latest Posts

Brookfield
Brookfield and Closed Loop create the largest recycling company in the U.S.
30.01.2023
Bybit
Cryptocurrency exchange Bybit provided information about the volume of stored assets
29.01.2023
Apple Search
Apple Corporation is working on its own search engine, Apple Search
28.01.2023

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh – an expert in marketing and project management, IT consulting, international investments, investor, financial analyst. A commodity trader, private consultant, entrepreneur, lecturer, author of several articles on the stock market.

Popular Posts

  • Skolkovo analysts: the Russian energy market is suffering losses
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • The London Stock Exchange has announced the acquisition of Refinitiv
  • Inventor and businessman Isaac Singer: a success story
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram
  • Biography

Chaslau Koniukh – an expert in marketing and project management, international investments, financial analyst.

Social media

Menu

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