Adam Austera, financial analyst at broker Ozios, told us on the occasion of the launch of a new service for investors and traders, gave an interview. Ozios Zona gives an answer to the question of how not to get overwhelmed with information about trading on the financial markets, while also using sophisticated tools and strategies without having to be an investment professional.
Online trading and digital tools should also make market activities easier for the retail user. However, the ever new concepts and tools sometimes make one feel lost. How do you see it as a professional, who is also involved in educating the public?
You are right that developments are moving forward terribly fast, even in the financial and capital markets. Especially when it comes to in terms of their service and the instruments available. What 20 years ago was only dealt with by professionals of investment banks can now be done on a daily basis by virtually anyone who registers on a trading platform.
Doesn’t this also mean an increase in risk?
Of course. Anyone interested in trading or self-investing should educate themselves continuously. Or it’s not just about learning something and becoming a trader. You need to continue to follow trends and new risks. Of course, brokers can and should provide the necessary user and technical support.
How do you handle the complexity of the markets in relation to your retail client at Ozios?
In addition to educational programs for all client groups, from beginners through intermediate to advanced professionals, we have newly launched the Ozios Zone. This is a place where, in addition to news and an overview opportunities and risks, we share business strategies with the participant.
Technical analysis is no substitute for the necessary knowledge of economics
What can I imagine by them? Already names like Pin Bar or RSI Oscillator seem to indicate a rather complicated things.
It is one thing to overcome the conceptual barrier. It’s part of the necessary education for anyone who’s trading or self-investing. It’s another thing to get beneath the surface and watch
the logic, merits and problems of each strategy.
For example?
At Ozios Zona, we are ready to meet the needs of those interested and, in addition to a detailed description of the strategy and discuss the strategy with examples. For example, the aforementioned Pin Bar, whose strategy is based on tracking daily clues, in this case the significantly deviated price efforts in the market, the turnaround in the price development of a given of an asset, either from a rise to a fall or vice versa. However, as this is a very technical, I would say almost machine-like way of estimating future developments, a trader must certainly not rely on them unquestioningly rely on it. One should always keep an eye on the market fundamentals as well. These are, for example, data on economic growth or developments in the industry whose assets we are interested in.
For the RSI oscillator, which is also a technical instrument by nature, we usually follow the fortnightly period. We derive the value of the index from the ratio of increases and decreases in the price of the asset, which indicates whether the the market is oversold or overbought. From this, we can then logically predict how the price will develop further.
And do these strategies really work?
No one can correctly claim that a given strategy is sufficient for success. Statistics and automated processing data confirms some credibility of such a tool, but as I said, a trader cannot get by without an understanding of how the economy works. Therefore, we consider the strategies mentioned above as tools for the advanced. The interested party should start from scratch, so to speak, and educate themselves both with experts and by independently monitoring economic developments and reflecting on them in the markets.
