Articles

In major investment companies a risk manager is the major figure controlling investment management. If a risk manager stops a transaction, no one has the right to change the existing investment portfolio, even if it may seem profitable. Investment companies with professional risk managers always suffer fewer losses even in crisis situations or when the market is falling.

With the knowledge that certain events in the market are preceded by certain patterns, you can earn money in such situations with a reasonably high probability and small risk by introducing or removing certain securities from your investment portfolio.

With the development of computers, automated trading systems have appeared to assist traders. Their number is huge, but their quality leaves much to be desired. Much has been said for the last 20 years about automated trading systems, neuron networks and other ways of traders’ activities facilitating. The boom of such technologies is over. A lot of money has been spent on supercomputers, which developed, optimized and trained these neuron networks. While some results have been achieved, they are naturally not available for the general public. It is obvious that major banks trading with billions of dollars are using the modern technical devices for trading resolutions, which minimize the risks. The market is always changing so the trading systems shall be always adjusted to the changing market and servicing of such trading systems is not less expensive than the qualified traders.