| Abstract [eng] |
Subject relevance. Global interbank exchange market (FOREX), working 24 hours per day and five days per week regardless any national holidays or other important events, provides investor with tremendous investment possibilities. Investor can apply any trade strategy, choosing both long-term investment and profiteering. It is even possible “to play casino” using big equity resources, i.e. chose a random pair of currency and expect a big success. About 90% of international exchange market deals are made for profiteering purposes, intending to get a short-term profit. Such dealers actively buy and sell currencies, using various trade strategies. However statistics show that almost 95 % of beginner investors in exchange market loose their invested money. Most often investors fail not because of their strategy choice, but because they don’t follow this strategy. The dealer, who uses profiteering trade strategies during continuous trade in exchange market in opposition to other financial markets, has no time to think over his strategy in details after working hours, to review and analyze his positions, because of non-stop trading from Monday to Friday. It means that a person has to make all his decisions in active market, when it is much harder to maintain his emotional stability while seeing fluctuations of his positions. The dealer simply cannot get earnings in such a global market if he does not use his own strategy. Therefore, is it possible to state that properly chosen investment strategy brings profit? Subject of the paper – Global interbank exchange market (forex). The goal of this paper is revelation of the importance of the investment strategy choice in exchange market and its influence to the investment results. The following main tasks have been raised for reaching of this goal: 1. To reveal theoretical aspects of formation of investment strategies in exchange market. 2. To analyze theoretical investment strategies and the ones used in real trading. 3. To develop an investment strategy. Structure of the paper. The paper consists of 3 main parts. The first part “INVESTMENT IN GLOBAL INTERBANK EXCHANGE MARKET" contains the concept of exchange market and descriptions of the main methods of exchange market analysis and strategy components. The second part "ANALYSIS METHODOLOGY AND PRESUMPTIONS FOR INVESTMENT STRATEGIES IN EXCHANGE MARKET" provides a discussion about the need of development of investment strategies in exchange market. Also it contains analysis methodology. The third part “RESEARCH OF EXISTING INVESTMENT STRATEGIES AND DEVELOPMENT OF A NEW INVESTMENT STRATEGY” contains the analysis of the existing investment strategy and provides a newly developed strategy. The main results. After analysis of the literature by Lithuanian and foreign authors, the main theoretical aspects have been formulated in order to develop an investment strategy in exchange market. With reference to the data of theoretical strategies and the ones used in practical trading, the investment strategy TA-FA2011 has been developed. It can be used for a currency pair EUR/USD trading in exchange market. |
