Gareth Henry Reveals the Value of Quantitative Analysis

Years ago before the development of internet trading tools, investors would rely on fundamental and technical analysis in order to make investment decisions. Most investors and trading professionals would use these two methods to evaluate securities. However, there was a small fringe group of investors who would use another unique method to evaluate securities. This method proved to be very effective and would often yield very high profits on a consistent basis. These investors would name this new method of security evaluation as program trading. This entailed using computer programs to determine which financial securities to buy and sell. While this method was quite successful, some expert believed that it was comparable to illegal activities such as pump and dump stock schemes.

Since there was a limited amount of resources to evaluate financial securities, investors and traders would need to often rely on their gut instinct to make decisions on which securities to trade. However, the introduction of program trading would change this forever. Program trading proved to be very effective for anyone who used this method to make investment decisions. During the next several years, traders using program trading got very good results by making very profitable trades. Due to the success of this method, it would later become the standard method of evaluating and trading securities.

Program trading would later become known as quantitative analysis. This method consisted of using mathematical calculations and models to evaluate stock prices and the value of securities. By using quantitative analysis, investors and traders are now able to more easily evaluate financial securities and determine their likelihood of profitability. Today, quantitative analysis is used by a number of investment banks, commercial banks, and hedge funds. It has now become the standard for making trading decisions for all of these entities and traders alike.

Gareth Henry has used quantitative analysis during his career. When he was an analyst at a financial services firm, Gareth Henry would use mathematical calculations to help his firm make better trading decisions. Later on in his career, Gareth Henry would then use his knowledge of quantitative analysis to help firms assist clients on making investment decisions. Today, Gareth Henry continues to recommend quantitative analysis to financial services firms and professionals in order to make the most profitable trades.

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