Investment Insights

Exchange Traded Funds (ETF) have seen huge growth in trading volumes in recent years. They are now an integral part of the financial sector, with the Far East a particularly buoyant market for this relatively new type of investment vehicle. There are several reasons why ETFs are proving popular and why trading volumes are expected to increase significantly in the coming years.

While traditional investment trends change over time, the trials and tribulations of a day trader can change in a split second. The attractions of identifying short-term trades and banking constant profits are relatively easy to appreciate. However, there are several common mistakes made by modern-day day traders.

As the APAC region grows in size and economic influence, many investors are now reviewing their global investment strategy. While worldwide indices allocate weightings to specific areas, it is essential to try and appreciate the enormous range of asset classes and potential in different regions. Then there is the issue of risk and reward, aligning this to your investment strategy and long-term goals.

While we have looked at technical analysis as a form of identifying changing trends, there is a new movement towards AI and machine learning. There is some concern that this could eventually lead to self-fulfilling prophecies, with systems following other systems, but is this really the case?

Hong Kong and China’s role and presence within the global investment scene have grown significantly in recent years. Many people expect more of the same – a significant increase in trading volumes, IPOs and new listings – which will take Hong Kong to a different level. While much has been made of recent meetings with Middle East representatives and potential investors, do investors need to pay more attention to the role of global custodians?

Short-term traders often adopt a contrarian investment strategy to make money from mispricing. This global investment strategy can potentially work with any market, stocks, shares, or other types of investment and is based on market exuberance. However, there are many issues to consider with both global investment and contrarian investment to maximise your returns.

You can use many types of technical trading strategies to monitor share prices and, more importantly, buy and sell signals. While some of these trading strategies are highly technical, there is one known as the simple moving average chart. Is this too simple to be of any use to execution-only traders? What exactly does it show?

Here at Global Investment Strategy Hong Kong, we focus on trade execution, lower latency execution services, clearing services, and a range of post-trade services. Recognising the importance of pre-and post-trading services and how these will impact customer returns is essential. It is easy to discount these issues, assuming they come naturally, but they take time, investment and a deep-seated understanding.

In recent years we have seen an increase in the number of day traders and short-term traders focusing on the multi-faceted field of technical analysis. While there are many different methods, in basic terms, technical trading is an analysis methodology used to forecast the future movement of stock prices. This investment strategy depends on low latency execution only trading facilities, prompt clearing services and swift settlement.

There are many different elements to the clearing system, one of which is known as back-to-back clearing. As an international broker, GIS HK Ltd deals in many different markets some of which have a specialist element. Consequently, rather than dealing with their prime broker, some clients will deal through third parties with the securities then delivered to their prime broker. Confused?