Given the strong trending nature of commodities it makes more sense for traders and retail investors to look at a different asset class, especially since equity markets are getting heated up in all markets.
It is difficult to pinpoint one method that would be best in all circumstances. But most fund managers these days follow a mix of both the approaches.
In order to answer the question we need to first define what a high level for the market is. This can be done both by using technical analysis as well as fundamentals.
Patience is one of the most important virtues in investing. But being over patient can be dangerous too. One needs to have an understanding of the changing dynamics.
It is not necessary and financially feasible for an investor to carry a hedge at all points of time. But normally a crisis or a fall leaves enough tell-tale signs.
Swing trading are short term strategies to take advantage of price swings, either reversing back to the median or fading a rally.
Many events in daily life of humans, animals and in nature display a repetitive pattern. Patterns are seen in stock markets too.
A checklist, if followed helps a trader/investor to stay on track and stick to his strategy. Almost all successful traders and investors follow a checklist
There are numerous strategies out there which have been described in various books. But not all are useful to a retail trader.
Retail investors are attracted to get rich quick possibility in option market in short term. However, in that process they end up making these mistakes that can ruin their chances of making money.
A sector with a high growth rate will deserve a higher PE while a matured sector will always get a lower PE.
Before checking on what history tells us about war and its impact on the economy and markets, we need to understand what actually happens in war
Bond market affects almost everything under the sun. Bond markets are the fundamental base for all markets.
Most successful investors have the ability to call the cycle right. For them fighting for the last rupee for a good entry or a good exit is not important.
A good trading strategy goes through various processes – creation, testing and use. Creation is the creative part and the only part which requires mental work, the other two are laborious and mechanical in nature.
In India algorithmic trading has just caught on, but globally the market has evolved to something called artificial intelligence.
Shrewd investors literally munch through an annual report before deciding on their course of action.
Trading is often compared to performance sports. And why not since both have commonalities in terms of fear, anxiety, confidence and risk taking.
Option trading throws interesting numbers. If you keep a track of these, you can emerge as a better trader.
In the long term the volatility goes down and the patience is rewarded
Retail investors generally enter the markets in euphoria, when ‘easy money‘ is being made. They can better their performance by being a bit wiser.
Most retail investors enter the game of trading and investing in the hope of making a quick buck. But rarely they have a plan in place.
For running any business there is a cost involved. For trading these losses are the costs of doing business.