Explaining Volatility in Financial Markets

The prices of a stock in a market may be up today, but the next thing you know within five minutes they are down again. This up and down game is always there in financial market and that is exactly what is termed as stock market volatility.

In a layman’s language, it would be better to understand with the example of how car insurance premiums go up if the likelihood of risk is higher. It could be based on person’s poor driving record or based on the fact that the person resides in an area where number of thefts is high.

There are some who say that the term volatility is just a polite way of translating investor’s nervousness. While volatility increases, the chances of problematic trading also on increasing trend. There are some analysts who feel that volatility can be indicative of rebound and make room for plenty of money making strategies.

Since volatility increases chances of risky trading, that is why investors and traders implement risk management systems (software) in order to cut down on the degree of risk or to at least mitigate its impact.

Dragon Holdings AG:

This company is located in Germany and designs algorithms for algo trading. It also designs risk management systems that are implemented by investment banks, traders, market makers and individual investors.

Link to company’s website for more updates and information:

www.dragonholdings.net

Don’t Fail To Plan In Financial Market

We have often heard about stories people ended up losing all of their money just because the market crashed wiping away all of the funds they had put into financial market. Usually this happens when people fail to plan well ahead of time about how to distribute their money across various instruments.

Sometimes people take risk and put all of their money into just one financial instrument. As a result, whenever there is a sudden upward or downward movement in that financial item’s value, it goes on to affects people’s earnings simultaneously.

It is good to take risk, still need to consider the negative impacts as well, also need to consider your position to afford losses. Otherwise, it is only wise to plan every single move of yours very wisely before you invest money into anything. This is why people need risk management strategy and systems.

Risk management strategies allow people to plan their investment in a way that puts minimum on the risk and yet provides plenty of opportunities for earnings passive income.

For example, diversification is the technique of financial investment; where instead of putting all the money in just one basket investors spread it over multiple items.  

Dragon Holdings

To know more about financial trading and risk management, do visit Dragon Holding:

www.dragonholdings.net

Purpose Of Back Testing In Designing Auto Trade Systems

There is no area of life that has remained untouched by technology. One of its rather new offerings is algorithmic slash automated trading which is conducted through auto trading systems. It means letting a machine do all the work for a human trader such as collecting, analyzing and interpreting the financial data and using it to find out most viable trade option.

At first it may sound how can a machine do all that. But it is true! Before an auto trading system or software is launched it is tested for its efficiency via back testing.

Back testing implies to trading uses associated with historical market data in order to determine how viable the idea would be. For a system that is supposed to do something as critical as place financial trade orders, all the rules must be established in an absolute way, meaning the program cannot go to make guesses.

It must be fed with precise instructions telling it exactly how to do and what to do. To make sure whether the designed system is capable of making sound decisions, programs are fed with historical data on which the set rules are implemented. This way a trader can figure out the efficiency of the system before risking his money.  Careful back testing is essential to fine tune the system for trading ideas.

Dragon Holdings AG:

This German company owned by Niraj Goel, is known for devising auto trading systems, after careful back testing.

www.dragonholdings.net

Preserving financial trading discipline with automated trade systems

Auto trading refers to the practice of letting software handle the task related to financial markets such as executing and placing orders to make money. The first aspect where this practice scores big is that it helps minimize emotions that can impair our judgment rendering us unable to take right decisions.

At every stage of trading the trading system will keep human emotions under check making it easier for trader to stick to the plan. It takes the hesitation out of placing a trade and finalizing the deal when the time is right, instead of delaying the decision. Since everything is automated, the user would not be able to raise any questions or hesitate to pull the trigger just when the timing is perfect.

Another way auto trading helps people is by preserving the discipline. Since all the rules are already set and established within the system, execution of trade is done on an auto mode. This way, the system helps preserve and maintain discipline during even the most volatile market conditions.

It does so by sticking to the plan and following it exactly the way it is supposed to. There is absolutely no room for committing any arithmetic errors where the user may accidently enter a 1000 shares when in fact he was supposed to enter a 100 share value.

Dragon Holdings AG:

To know more about algorithmic trading and technology, Visit:

www.dragonholdings.net

Safeguarding Your Money During Financial Trading Practices

If you are a swing trader, then the money management strategy is the only thing that will offer you edge in stocks trading. We all know that it is not possible for anyone to control how the market is going to react, but you sure can control your own investment and money and the degree of risk on every single trade that you have invested in.

The key secret to playing safe and making money in stock markets is to make sure that at every point the amount of money you stand to lose is least when you are not right. Any money and risk management strategy should be able to answer these two questions:

•                      How many number of shares should I purchase
•                      And how much of many funds can I put on risk on one trade

For a swing trader the number one goal should be to preserve the capital in order to stay active long enough to cover the losses and make profit. All this can be accomplished via a sound and shock proof moment and risk management planning.

Dragon Holdings AG:

Based in Munich Germany, Dragon Holdings AG specializes in designing algorithms for automated trade systems it also designs risk management systems for financial trading. Dragon Holdings AG is a part of Niraj Goel’s Clone Algo Group.

Why Use Auto Trade Software For FX Market Trades

If this is the first time you have looked into the Forex market and trade, chances are you have probably never heard about auto trading. This type of trading is conducted with the help of automated software.

The software is designed in a way that allows people to trade currencies and make profits from their transactions. Since, the trading software function on its own, one doesn’t have to supervise the ongoing activities at any point of time.

The best thing about this arrangement is that it leaves you with plenty of time to focus on your other day to day tasks while also making money side by side without actual mental or physical efforts.

This is probably the easiest way of earning passive income. Auto trading is particularly beneficial for those, who want to trade currencies, since Forex markets operates day and night and never stops. As software doesn’t sleep, it will continue to track new changes and keep finding out new trade opportunities round the clock.

Auto trading software responds exceptionally well to changes taking place in FX markets. It is because of it, that the software helps you earn cash quickly. The best thing is that you can always make money in all types of market conditions.

Dragon Holdings AG:

This German company based in Munich,a part of Niraj Goel's Clone Algo Group specializes in designing algorithmic for creating algo trading or automated trading software.