FEATURES OF TRADING ON THE ELECTRONIC EXCHANGE FOR INVESTORS

Ганна Сергіївна Ліхоносова, Єлізавета Іванівна Мельник

Abstract


The modern financial market is undergoing significant transformations driven by rapid technological advancements. One of the most prominent manifestations of these changes is electronic stock exchanges, which provide investors with unprecedented opportunities to trade stocks, bonds, and other securities. However, the high market volatility and the abundance of trading strategies complicate decision-making processes for investors. The purpose of the study is a comprehensive analysis of popular trading strategies, such as long-term investment, medium-term trading, and day trading, to determine their effectiveness for investors with varying risk tolerance. The object of the research is trading tactics on electronic exchanges as a tool for achieving investment goals. Special attention is given to analyzing the effectiveness of various trading strategies, the impact of psychological factors on traders' decision-making, and the role of technological tools in modern trading. Scientific publications and monographic editions, magazine articles and materials of scientific and practical conferences became the methodological basis of the research. During the research, content analysis of scientific periodicals was used; comparative critical analysis of existing approaches and methods of analysis of financial stability and tax burden; statistical methods of analysis. Methods such as technical and fundamental analysis and comparative analysis of various trading strategies were applied. The primary hypothesis of the research asserts that success on an electronic exchange depends not only on the selected strategy but also on a combination of factors, including the trader's psychological preparation, market analysis quality, and the effective use of trading tools. The main hypothesis of the research is that success in the stock market depends not only on the chosen strategy but also on individual investor characteristics, such as patience, risk appetite, and requisite knowledge. Presentation of the main material. The study provides an analysis of various trading strategies employed on electronic exchanges to determine their effectiveness and impact on investment profitability. Particular attention is paid to the roles of technical and fundamental analysis, psychological aspects of trading, and external factors influencing market dynamics. Originality and practical significance. This research offers an in-depth analysis of contemporary trends in trading, including the growing popularity of algorithmic trading and the use of artificial intelligence. Based on the results obtained, recommendations are formulated for investors regarding the development of personalized trading strategies and risk management. Conclusions and prospects for further research. The analysis demonstrates that success in financial markets depends on a comprehensive approach that includes a deep understanding of market mechanisms and the ability to adapt strategies to changing conditions. A promising direction for future research is the study of the impact of cryptocurrencies and other digital assets on traditional financial instruments and the development of new indicators for analyzing their volatility

Keywords


trading, exchange, strategy, investor, stock market, analysis, securities papers

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DOI: https://doi.org/10.32620/cher.2024.4.07

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