The Peculiarities of Money Management for a Small Investor in Volatile Markets

摘要

Use of computer technologies and development of financial data analysis methods has proven that traditional financial investment management methods neglect the features of global financial market objects, their diversity and current trading advantages.rnThe basis for financial investment management strategy in ultra short time period is forecasting of financial instrument price fluctuations while taking into account its risk. This strategy can be used in any liquid financial market with high volatility and without any imitations for the number of the transactions. The central position of this strategy is identification of optimal mathematic coherence and assessment of optimal risk.rnThe research performed by the authors on the interconnection between cumulative profitability of financial investment management and historical data timeline length gives evidence that application of most recent important data is not always efficient.rnThe research conducted by the authors on the interdependence between the level of risk and profitability of the model proves that an investor can increase the risk level until modeled total profitability decreases.rnIn this paper the authors analyze some particularities of financial investment management in volatile markets for a small investor oriented for aggressive trading with aim to take maximal profit.