Trading

Trading strategy In finance, a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The main reasons that a properly researched trading strategy helps are its verifiability, quantifiability, consistency, and objectivity. The development and application of a trading strategy follows eight steps: (1) Formulation, (2) Specification in computer-testable form, (3) Preliminary testing, (4) Optimization, (5) Evaluation of performance and robustness, (6) Trading of the strategy, (7) Monitoring of trading performance, (8) Refinement and evolution. For every trading strategy one needs to define assets to trade, entry/exit points and money management rules. Bad money management can make a potentially profitable strategy unprofitable. Trading strategies are based on fundamental or technical analysis, or engage them both. Technical strategies can be broadl...

Electronic trading , sometimes called  etrading , is a method of trading  securities  (such as  stocks , and  bonds ),  foreign exchange  or  financial derivatives  electronically.  Information technology  is used to bring together buyers and sellers through an  electronic trading platform  and network to create virtual market places. They can include various exchange-based systems, such as  NASDAQ ,  NYSE Arca  and  Globex , as well as other types of trading platforms, such as electronic communication networks (ECNs), alternative trading systems, crossing networks and "dark pools".  Electronic trading is rapidly replacing human trading in global securities markets. Electronic trading is in contrast to older  floor trading  and phone trading and has a number of advantages, but glitches and cancelled trades do still occur. For many years stock exchanges were physical loc...

The efficient-market hypothesis Thus, according to the EMH, no investor has an advantage in predicting a return on a stock price because no one has access to information not already available to everyone else. In efficient markets, prices become not predictable but random, so no investment pattern can be discerned. A planned approach to investment, therefore, cannot be successful. This "random walk" of prices, commonly spoken about in the EMH school of thought, results in the failure of any investment strategy that aims to beat the market consistently. In fact, the EMH suggests that given the transaction costs involved in portfolio management, it would be more profitable for an investor to put his or her money into an index fund.Although many companies offer courses in stock picking, and numerous experts report success through technical analysis and fundamental analysis, many economists and academics state that because of the efficient-market hypothesis (EMH...

A  stock trader  or  equity trader  or  share trader  is a person or company involved in agent,  hedger ,  arbitrageur ,  speculator ,  stockbroker  or  investor . A  stock investor  is an individual or  company  who puts money to use by the purchase of equity securities, offering potential profitable returns, as interest, income, or appreciation in value (capital gains). This buy-and-hold long term strategy is passive in nature, as opposed to  speculation , which is typically active in nature. Many stock speculators will trade  bonds  (and possibly other  financial assets ) as well. Stock speculation is a risky and complex occupation because the direction of the markets are generally unpredictable and lack transparency, also  financial regulators  are sometimes unable to adequately detect, prevent and remediate irregularities committed by malicious listed companies or other...

In finance, a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The main reasons that a properly researched trading strategy helps are its verifiability, quantifiability, consistency, and objectivity. The development and application of a trading strategy follows eight steps: (1) Formulation, (2) Specification in computer-testable form, (3) Preliminary testing, (4) Optimization, (5) Evaluation of performance and robustness, (6) Trading of the strategy, (7) Monitoring of trading performance, (8) Refinement and evolution. For every trading strategy one needs to define assets to trade, entry/exit points and money management rules. Bad money management can make a potentially profitable strategy unprofitable. Trading strategies are based on fundamental or technical analysis, or engage them both. Technical strategies can be broadly divided into the mean-reversi...

International trade is the exchange of goods and services across national borders. In most countries, it represents a significant part of GDP. While international trade has been present throughout much of history (see Silk Road, Amber Road), its economic, social, and political importance have increased in recent centuries, mainly industrialization, advanced transportation, globalization, multinational corporations, and outsourcing. Empirical evidence for the success of trade can be seen in the contrast between countries such as South Korea, which adopted a policy of export-oriented industrialization, and India, which historically had a more closed policy. South Korea has done much better by economic criteria than India over the past fifty years, though its success also has to do with effective state institutions. Trade sanctions   Trade sanctions against a specific country are sometimes imposed, in order to ...