Day traders and short-term traders tend to focus on multiple,relatively small gains, repeated over a period of time. The constant investment of a growing investment pool can have a significant impact on long-term returns, even on relatively small monthly returns. This is similar to the principle of interest on interest, a strategy used by credit card providers. So what do we mean?
When you consider that the Bank of England has a long term 2% target rate for inflation, you might assume this is a minor threat to your long-term investment returns. Unfortunately, over the last 12 months, we have seen a gradual strengthening of inflation which hit 7% in March 2022. The Bank of England believes inflation will peak at 8% towards the end of 2022. However, a double-digit spike is not out of the question. This has the potential to decimate real investment returns as opposed to nominal investment returns.
There are many different strategies you can take concerning investment, but the two most basic are passive and active. While these are very different strategies, trade execution and low latency execution services are still very important.
Whether looking at individual stocks or a particular index, when sentiment turns negative this can lead to a drip feed that drags prices downwards. If we look at individual stocks, day traders and short-term traders specifically look for oversold positions. This allows them to take advantage of market volatility and hopefully buy at the bottom.
Born on 30 October 1930, Warren Buffett has achieved legendary status in the world of investment. He is estimated to be worth more than $100 billion and is affectionately known as the “Oracle of Omaha”. Famous for his basic investment approach, based on value for money, he has uttered many extremely helpful quotes.
As a group, GIS UK Ltd offers a range of prime broking services with a high degree of personalisation to accommodate individual client requirements. In many ways, this is the public face of the company, but like a swan gliding across a lake, there is a lot of unseen work required to create our seamless trade to settlement service.
For many people, a typical day for a stock-market trader appears to be glamorous, fast-moving and ultimately financially beneficial. In reality, the majority of activity is preparation to give a solid foundation for the day’s trading. That is not to say day traders do not think on their feet but a lot of the hard work is done before the market even opens.
While the prospects for individual quoted companies can vary enormously, there are four very important factors which dictate stock market trends. Taking a top-down approach to your investment means taking into account general market trends, then drilling into individual sector and company trends. In volatile times, individual sectors and individual shares may find it difficult to “go against the wider market trend” which may impact your investment decisions.
Cast your mind back to the 1980s, a time when stock markets were flying high, economies were booming, and decadence was in full bloom. Referred by many as the “greed decade”, this was a turning point for stock market investment. Private investors, who had long since depended on the advice of experts, began to make their own investment decisions. Then, step forward the movie Wall Street!
As a broker offering prime services, we have many clients wishing to deal directly with the market. This type of trade execution service is known as Direct Market Access (DMA) and is available to eligible established clients. So what are the pros and cons of electronic trading?