Guest Lecture on Engineers in Trading


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Guest Lecture on Engineers in Trading
Posted on 22 Oct 2022

Mr. A. Dhinakar Justus Raj. Trading Analyst, FXEC has delivered a Guest Lecture on the topic " Engineers in Trading?”

This event was organized by FX Alumni Association cell in association with Department of Electrical and Electronics Engineering Mrs. A.Amala Manuela, Assitant Professor/EEE was the coordinator for this event. Dr.J.Jasper Gnana Chandran, HOD/EEE was the Convener for the event. This event was conducted with the guidance of the Mr.S.Krishna Kumar, Director – FXAA, Dr.V.Velmurugan, Principal - FXEC and Dr.K.Jeyakumar the General Manager for Development – SCAD Group of Institutions.

This event was organized by FX Alumni Association cell in association with Department of Electrical and Electronics Engineering Mrs. A.Amala Manuela, Assitant Professor/EEE was the coordinator for this event. Dr.J.Jasper Gnana Chandran, HOD/EEE was the Convener for the event. This event was conducted with the guidance of the Mr.S.Krishna Kumar, Director – FXAA, Dr.V.Velmurugan, Principal - FXEC and Dr.K.Jeyakumar the General Manager for Development – SCAD Group of Institutions.

 

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Resource person explained that he met a lot of engineers who have become fascinated with investing in the stock market. Except it’s usually not straightforward index investing but something convoluted involving a lot of math, options and stock picking.

Anyone who studies finance or economics probably understands why this is a bad idea. Stock prices may not be perfect, but they at least approximate their true value. Whenever someone realizes a stock is underpriced, they try to buy it, thus bidding up the price.

A smart engineer, who understands the system, can do a lot more than one who doesn’t. Because of this, engineers naturally develop the assumption that the more they learn about a system, the better their results will be.

Economists, on the other hand, tend to form a different assumption about reality. They see how millions of different participants all influence stock prices and therefore see how it becomes increasingly difficult to beat the market reliably. A “dumb” strategy of simple index investing may outperform one that requires more intelligence.

He also explains about Stock trading .It involves buying and selling of shares in a certain company. If you own certain stocks and shares of a company, it translates to you owning a piece of the firm. A professional or an individual who trades on behalf of a financial firm will be known as a stock trader. Stock traders are broadly classified into three categories - informed, uninformed, and intuitive traders.

A few of the most common traders include swing traders, day traders, momentum traders, and buy and hold traders.

He Explains about the advantages of Stock Trading. Where an individual trader will buy and sell via brokerage or an agent. On the other hand, institutional traders are mostly employed by investment companies. Stock traders provide liquidity to the markets, and employ several methods and styles for defining their strategies. Stock trading has two main types - individual stock trading and institutional stock trading.

Stock traders are different from stock investors. Stock traders trade equity securities, whereas stock investors utilize their own funds to purchase securities. The stock investor's primary goal is to produce interest income or to profit from the increase in value, also termed as capital gains.