With all the commotions and noises in the market.
We have fear spreading across the world with supply chain issues, political issue (Debt Limit & Infrastructure Bill being passed) and etc.
Outer region like China, like Evergrande on the verge of collapsing due to over leverage of debt.
How will the market react?
My analysis:
I see fear-mongering as a short term impact to the economy, as investors and traders are afraid of the economy tanking due to many reasons.
As a result, we see some panic sellers taking out their position to prepare for the downside.
However, do we really know when is the time of a reversal or even the continuation of a bull run.
My method:
1. I tend to be a contrarian trader, when most news strike fears, I would set a long position with a nice entry on futures.
2. Risk management with Stop loss or Mental Stop loss.
3. Will add small positions on a huge drop, and sizeable positions on a rebound up.
Conclusion:
We never know when is the time the market crashes,
so just use risk management to ensure your portfolio will not get impacted significantly.
May the Market be With you
We have fear spreading across the world with supply chain issues, political issue (Debt Limit & Infrastructure Bill being passed) and etc.
Outer region like China, like Evergrande on the verge of collapsing due to over leverage of debt.
How will the market react?
My analysis:
I see fear-mongering as a short term impact to the economy, as investors and traders are afraid of the economy tanking due to many reasons.
As a result, we see some panic sellers taking out their position to prepare for the downside.
However, do we really know when is the time of a reversal or even the continuation of a bull run.
My method:
1. I tend to be a contrarian trader, when most news strike fears, I would set a long position with a nice entry on futures.
2. Risk management with Stop loss or Mental Stop loss.
3. Will add small positions on a huge drop, and sizeable positions on a rebound up.
Conclusion:
We never know when is the time the market crashes,
so just use risk management to ensure your portfolio will not get impacted significantly.
May the Market be With you