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Saturday, 21 March 2009

New opportunities for Russians

As it turned out unnoticed, that the problems of the Russian middle class added one more: where to invest free cash? Statistics show: the means is, the desire to invest them - too. So far this problem has been low in Russia, but it is well known in the western developed countries.

The market, which protects against dishonesty
In the West, in particular, the well known possibility of placing money in a bank account, gosobligatsy and mutual fund shares. But much more interesting investment environment that attracts the active, and I think people who prefer to manage their money independently. They are willing to invest in the management of not only money but also their intellect and time. We are talking about the American stock market. One of the main parameters taken into account when investing is the risk to profitability. The risk is always present. Yield - unfortunately, no.

The main risk factor at work in the U.S. stock market has now become the risk of improper actions trader. All other risks are reduced to very small size. And this is one of the main advantages of the American stock market.

U.S. Stock Market in its current state inferred by the long development of the method of trial and error. Moreover, this development occurred only in the defense establishment and the convenience of investors - first, corporate, and now also private. Today, a private investor in the American stock market is fully protected against incorrect actions broker, the clearing company of the Exchange. The brokerage and clearing company is composed of one or more professional organizations that make its members the very stringent requirements, not just financial.

All the activities of professional participants of the U.S. stock market, especially in terms of interaction with customers, is governed by very detailed and strict law and under the strict control of the Senate Special Commission on the Securities and Exchange Commission - SEC, which has full powers. The effectiveness of the work of this commission can be seen even on the frequency with which even the Russian press there are reports of investigations of violations of the stock market, and following them for sanctions. Membership of professional organizations, commit its members to insure customers' accounts for a certain amount, reduces the risk of bankruptcy. Large brokerage and clearing companies often provide an additional insurance is usually several times more than mandatory. Money for such insurance is payable immediately.

What should a trader
Thus, from a trader or investor, you want only one thing - a successful and correctly deal. This, of course, the most difficult, and for the need of tools.

System access is precisely represent such a tool. This is like a scalpel - a sharp and precise, sometimes dangerous instrument in the hands of amateur.

Direct Access Systems connect directly to a trader's market, bypassing all the middlemen and offer the possibility of more recently available only to professionals. This, in turn, the amount of the trader and a measure of control over the application. Much of the information contained in the so-called windows of Level 2. They show the depth of the market on the chosen action. Execution of applications takes place within seconds of shares.

Compare this with the opportunities offered by conventional brokers! The faster performance of the application, the less "slippage" - the price of care being placed on the application before its execution. In this situation, saying "time - the money" is literally true.

In volatile market price of shares may fly or fall to 25 cents for a few seconds! In terms of a standard lot of 1000 shares - it is possible profit (or loss) of 250 dollars! Will there be a realized gain, or whether the trader has to go against losses - has now depends only on himself. With such possibilities Day Trader has absolutely no matter whether the market is growing as a whole, or falls. It does not matter, because the "quick" trading is not important global trend, but rather wave variations on it. Investors should always be able to open a position in the appropriate direction - long or short.

But the possession of such a scalpel does not make a human surgeon. In power systems, direct access and the difficulty lies, and danger. Between the trader and the market has no shock-absorbing cushion in the form of a broker. Work directly with the market demands a very good response, attention and perseverance. However, not everything is so terrible! The system is organized simply and logically, and can be configured to save the trader from any excess of choice - for example, from a choice of ways to the performance of his application. Generally, program settings preclude the possibility of "accidental" purchase or sale. Companies that provide direct access services, provide training and work with the system. Trading on a demo account allows a trader, not only to master the interface, but also "feel" the market. Often this is the first safeguard against loss in the transition to a real account.

They should live a long and happy
Companies that provide direct access service, a direct interest to their clients "were on the market long and happy life." Therefore, service companies seeking to organize the support of customers that if they do not make them rich, then at least protect against loss. The best option is the issuance of specific recommendations to buy or sell shares. On the Internet you can find many examples of such a service.

But as a rule, such recommendations are given for short periods (1-5) days and are available through the web interface. In terms of intraday recommendations, there is a problem of operational information, a trader. To this end, developed special client-server applications. Ie along with a system of direct access to the trading station trader runs the application (client side), through which the information-analytical server gives specific recommendations. Thus, in particular, to organize support for traders in the company of "Level 2 Consulting".

The analytical unit was built on neural networks algorithms, analyzes the state and the accumulated history of the market. Then the signals are formed at the opening and closing positions. At the trader's trading station in real-time displays all the applications and recommendations of the trading system. Ie main computational load is accounted for on the server. This reduces the technical requirements for commercial stations client.

This is constantly statistics and the recommendations of the trader's actions and shows realized and unrealized gains. Trader may use the information for the opening and closing of real positions, or simply treat it as a starting point to build their own trades.

Such systems do not let the trader from taking trading decisions. This is not an automatic machine for making money on the stock market, and system analysis support, and formed its recommendations are just recommendations, and nothing else. The system reduces the psychological strain the trader. Using the adopted formula in the investment business, we can say that the successful outcome of the system in the past (a lot of them!) Does not guarantee a similar outcome in the future. As a system of direct access, it is - a tool, and how useful it can be, depends on whose hands it is. The masters know the price of a good instrument.

What conclusion? Of course, the possibility of direct access platform, even as supplemented by a strong self-analysis system can use is far from everyone.

For investors who prefer long positional trade, they are probably not required. Do not work with them and those who have passion too, and not very disciplined. But traders with the analytical mind, able to see the appearance and disappearance of the collective psychology of market applications, to find a pattern in it and turn this knowledge to benefit themselves, they simply needed.

Alexander Cavallo

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