How the rise of programed automated trading making influence to the investment environment and investors?
How the rise of programed automated trading making influence to the investment environment and investors?
Brief Description
Especially with the rise of index funds and ETF, the investing process has become more and more automotive. It helps investors successfully invest their money into a diversified portfolio instead of directly investing the money into stock by investors’ hands, the valuation model runs in the computer helps human to choose the strategies and stock.
In my topic, I am going to mainly focus on the influence that made by automated trading in financial industry and investors. I will deeply explore my research and find out how the automated trading changes the environment in Goldman Sachs and explore the idea how it changes investors’ behavior or attitude about their investment choices as well.
Introduction
In this section, I will describe what is Automated trading and the development of itself, also I will talk about what is the current trend by listing out the historical data and market research into it (actually I also see automatic trading exists also in China). The automated trading changes the way that people do the trading and give us more alternative way to make the investment, the financial company also gets hit by this and tries to invest more money into this area which improves the performance of the firm and its investment portfolio.
In additional, I will discuss both the advantages and disadvantages of automated trading and what is its biggest challenge might face right now or in the near future, and also talk about how people feel about automated trading and what is their expectation or attitude for it.
Fayman, L. (2017, May 9). 5 Advantages OF automatic trading. Retrieved May 15, 2017, from http://forexware.com/en/blog/5-advantages-of-automated-trading/
Findings
In this section, I will use Goldman Sachs as my example to deeply discuss how automated trading works in the company and affect the way that people doing business. For example, the way of operating automatic trading and how the company’s team structure adapt and make changes for it. Then, I will also introduce the company’s performance after ATS’s development in the firm and what is its customer and employers feeling about the way of doing trading, including what they like and dislike. Moreover, I will give out the what is the company’s future projection for automatic trading, will they invest this area even more and what part of business that ATS could be more focused on in the future?
Byrnes, N. (2017, February 7). As Goldman embraces automation, even the masters of the Universe are threatened. Retrieved May 14, 2017, fromhttps://www.technologyreview.com/s/603431/as-goldman-embraces-automation-even-the-masters-of-the-universe-are-threatened/
Wigglesworth , R., & Platt, E. (2016, August 30). Goldman takes spoken word out of bond deal with automated trading. Retrieved May 15, 2017, fromhttps://www.ft.com/content/4c9ee956-6bd6-11e6-a0b1-d87a9fea034f
Campbell, D., & Massa, A. (2017, January 10). Goldman makes play for quant funds in electronic trading reboot. Retrieved May 15, 2017, fromhttps://www.bloomberg.com/news/articles/2017-01-10/goldman-makes-play-for-quant-funds-in-electronic-trading-reboot
Dugan, K. (2016, August 31). Goldman Sachs looks at future trading done only by computers. Retrieved May 15, 2017, from http://nypost.com/2016/08/31/goldman-sachs-looks-at-trading-future-done-only-by-computers/
Goldenberg, B. (2017, January 19). Quantum Trading: Goldman Sachs emerges into the field of AI. Retrieved May 15, 2017, from https://iknowfirst.com/rsar-quantum-trading-goldman-sachs-emerges-into-the-field-of-ai
Conclusion
This section will give out conclusion both on the good and bad influence that conducted from automatic trading, and also brings out possible future projection of its development in different areas. In additional, I want to throw out my suggestion and imagination about automatic and give out thoughtful question for audience to think about.
Comments
I feel good for the finding part right now with listing out the example of Goldman Sachs, the scope of topic has been narrowed down into the influence of automatic trading. However, I definitely should do more research for my paper in order to find if anything more is related and interested to the topic, it is possible there will be more interesting ideas come out in my real paper.
