Ming Jong Tey
Independent Analyst
I used to participate running from time to time (maybe 8 years ago), such as the Standard Chartered & Sun Down’s half-Marathon and a few others local events, mainly because I enjoy the feeling of a sense of achievement upon completion.
Although I was an amateur runner (I no longer run since running hurts my knee badly…), I do know that it is essential to keep moving (no matter how slow) even I am extremely tired and exhausted during running. Else, it is almost impossible to complete the run within the acceptable duration (yes, you will be stopped and a bus will pick you up).
Stay in the game is the key to complete a Marathon. Similarly, in trading or investing, stay in the game is also the key. Let me explain further:
A lot of traders tend to give up easily especially during challenging market environment. It is fine to stay out and only monitoring instead of trading. Yet, it is not acceptable to totally ignore and abandon the market and only come back when you realize it is at all time high from the news. There is a subtle difference between stay out and abandon the market.
If you still keep in touch with the market, it will be a lot easier for you to come back in when you spot the right opportunity and the right market environment that suits your personality and trading method.
Vice versa, if a person was out of touch due to account drawdown caused by the market volatility and only come back when they realize the market hit all time high and FOMO (fear of missing out). The chances for him/her to survive and profit from the market in the long run is slim because of the emotion and lack of the skill of analyzing and execution.
The market since Feb 2021 has been challenging due to the sector rotation and changing of the dynamics. Breakout trades tend to fail easily and even if it is successful, the trend might not last long enough for a smooth ride. Yet, there are still many profitable trades waiting to be discovered every week and we just need to pay attention to adopting the right trade management strategy.
So do stay in the game with the right mentality and risk management in order to become profitable in the long run.
Meanwhile, watch the video below to find out how to profit from the sector rotation back to the tech & growth stocks by following a trading plan with low risk entry:
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Editors’ Picks
EUR/USD stays below 1.1850 after dismal German sentiment data
EUR/USD stays in negative territory below 1.1850 in the second half of the day on Tuesday. Renewed US Dollar strength, combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.
GBP/USD falls toward 1.3550, pressured by weak UK jobs report
GBP/USD remains under bearish pressure and extends its decline below 1.3600 on Tuesday. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month and making it difficult for Pound Sterling to stay resilient against its peers.
USD/JPY slides further below 153.00; eyes 200-day EMA amid a firmer JPY
The USD/JPY pair meets with a fresh supply on Tuesday and slides further below the 153.00 mark heading into the European session, reversing a major part of the previous day's positive move. Spot prices, however, manage to hold above the 200-day Exponential Moving Average support, around the 152.50 region, preserving a tentative bullish bias despite a shallow cushion.
Editors’ Picks
EUR/USD stays below 1.1850 after dismal German sentiment data
EUR/USD stays in negative territory below 1.1850 in the second half of the day on Tuesday. Renewed US Dollar strength, combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.
GBP/USD falls toward 1.3550, pressured by weak UK jobs report
GBP/USD remains under bearish pressure and extends its decline below 1.3600 on Tuesday. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month and making it difficult for Pound Sterling to stay resilient against its peers.
Gold recovers modestly, stays deep in red below $4,950
Gold (XAU/USD) stages a rebound but remains deep in negative territory below $4,950 after touching its weakest level in over a week near $4,850 earlier in the day. Renewed US Dollar strength makes it difficult for XAU/USD to gather recovery momentum despite the risk-averse market atmosphere.
Canada CPI expected to show sticky inflation in January, still above BoC’s target
Economists see the headline CPI rising by 2.4% in a year to January, still above the BoC’s target and matching December’s increase. On a monthly basis, prices are expected to rise by 0.1%.
UK jobs market weakens, bolstering rate cut hopes
In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.
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