Trading Systems As A Determining Factor in Trading Performance
Studies on individual investors and professional fund managers indicate that one reason professional fund managers perform more consistently is their reliance on trading systems for making investment decisions. It could be hypothesized that a trading system is a determining factor in producing higher performance. This research sought to validate that hypothesis by investigating the effect of trading systems on individual trading performance, measured by investors’ trading decision accuracy rates. In particular, it examined the positive relationship between the extent of investors’ reliance on trading systems and their performance level. A trading system is a collection of technical trading rules that could enhance an investor’s decision accuracy and predictive power in buying or selling a security or a commodity future contract. For optimum performance and profit, a trading system helps an investor buy or sell a security at some specific price at a particular time. Performance is the net profit gained by an investor after liquidating all his or her holding positions.
Product Details
- Amazon Sales Rank: #2585875 in Books
- Published on: 2009-01-23
- Original language: English
- Binding: Paperback
- 132 pages
Editorial Reviews
About the Author
Dr. Ned Gandevani is a professional trader and developer of the renowned Winning-Edge Systems. He authored the trading- psychology book How to Become a Successful Trader¿The Trading Personality Profile: Your Key to Maximize Your Profit with Any System. He teaches MBA courses at Keller Graduate School of Management in Long Island and Manhattan.
Customer Reviews
A must read for the serious trader.
Dr. Gandevani’s book “Trading Systems as a Determining Factor in trading Performance” takes an in depth look through his scientific research, the relationship between traders and tading systems. He proves that traders are much more suited to perform better in the markets if they utilize a well proven system or methodology. However, due to cognitive error and psychological slip ups, the trader doesn’t follow the systems every signal even though the system has a proven track record. For the first time, Dr. Gandevani has given us a book which essentially describes in great scientific detail that humans will always interfere with the performance of any system or methodology in the markets, thus creating pitfall towards sunccess. This book is a must read for the serious trader who can identify with the results he has proven.
ZK