Economy
Effective Trading Tips That Will Help You Survive In A Volatile Market
The world of trading is quite exciting and dynamic. Many traders can relate to the adrenaline rush they get from the thrill of staking high amounts of capital in adventurous trades and the overwhelming joy that permeates their entire being when such trades come back successful with heavy profits.
Trading is also very risky. This is because the trading market can also be very volatile. As a result of this one has to be on his toes if he wants to successfully trade and survive the trading market. To help you do this are a couple of trading tips that are quite effective. They include:
- Don’t Stop Learning
One of the most effective tips that would help you successfully trade and survive in such a volatile market as this is that you should not stop learning.
No matter how much you know about trading, no matter how good you have become or how deep you have gone in your study about the rudiments of your profession if you are going to survive the turbulent waters of today’s trading world you need to maintain the heart posture of a student.
This is because the market is so volatile right now and the methods to combat challenges and make a profit are so dynamic hence you need to constantly study to be on top of the market’s volatility and develop strategies that would help you overcome challenges.
One of the best ways to ensure you continue to learn new strategies is by registering for a trading class and taking this tutorial is highly beneficial given the fact that you can do all your learning online and at your own pace. This would ensure that you can learn effectively without disruption to your normal schedule.
- Be Vigilant
This doesn’t even sound like a tip because it seems like the most obvious thing that every trader should know to do but at this point, it is worth reiterating. For you to succeed and survive in such a volatile trading market as this, you need to be extremely vigilant.
The importance of being vigilant as a trader cannot be overemphasized. The market is described as volatile for a reason. Predictions can go so haywire and cause traders to scatter at any time. Trading instruments can go from bullish to bearish in a matter of minutes and seconds. The market is so dynamic in its operations that a brief period of negligence can cost you your profit and many times even your capital.
For these reasons you always have to keep your ear on the ground. You need to constantly be in touch with your broker and keep an active eye on your trades until they are all done. While doing these ensure you also look out for what experts are saying and monitor even the smallest fluctuations. These would ensure you do not miss anything and that you are in a good position to act profitably.
- Do Not Trade-In Isolation
One of the best tips you can receive that would enable you to survive in a volatile trading market is that you should not trade alone, rather you should trade with others.
No matter how good and successful you are as a trader, it is advisable for you to not handle your trades all on your own. There is a greater level of security and precision available to you when you find yourself in the company of other traders than what would have been afforded to you if you were alone.
Trading within a community gives you access to tips that you may not have gotten on your own and give you a broader perspective of where the market is headed.
Not only that, surrounding yourself with fellow traders would give you more motivation and confidence to make some certain trades and there is no doubt that you would learn a couple of new things that you may never have known before. All these would make you a better trader and help you survive a volatile trading market.
The world of trading is not a walk in the park, it is a very risky and serious business. Investments worth millions of dollars easily get lost daily, due to tiny mistakes or lapses in judgment.
Surviving the volatile trading market is not an easy task. However, it is also not impossible to do. If you never stop learning new strategies and methods of trading and you are constantly in a state of vigilance whilst surrounding yourself with several fellow passionate traders, then you are going to successfully navigate through the treacherous waters of the trading market.
By Dipo Olowookere
A 1.08 per cent growth was further printed by the Nigerian Exchange (NGX) Limited on Friday on improved appetite for Nigerian stocks.
Data showed that the insurance sector lost 0.61 per cent yesterday due to profit-taking as the energy space gave up 0.08 per cent, while the commodity counter closed flat.
However, the industrial goods landscape appreciated by 2.06 per cent, the banking index improved by 1.31 per cent, and the consumer goods sector expanded by 0.83 per cent.
At the close of business on Customs Street, the All-Share Index (ASI) increased by 1,563.92 points to 147,040.07 points from 145,476.15 points and the market capitalisation went up by N996 billion to N93.722 trillion from N92.726 trillion.
UAC Nigeria led the advancers’ log yesterday after it grew by 10.00 per cent to N96.80, Transcorp Hotels jumped by 9.71 per cent to N172.80, Royal Exchange appreciated by 8.89 per cent to N1.96, Ikeja Hotel soared by 8.74 per cent to N31.10, and Veritas Kapital leapt by 8.07 per cent to N1.74.
On the flip side, Union Dicon declined by 10.00 per cent to N6.30, ABC Transport slipped by 9.88 per cent to N3.10, AXA Mansard depreciated by 7.19 per cent to N12.90, FTN Cocoa lost 4.62 per cent to trade at N4.75, and Guinea Insurance dropped 3.36 per cent to finish at N1.15.
A total of 38 stocks ended on the gainers’ table and 17 stocks finished on the losers’ table, representing a positive market breadth index and strong investor sentiment.
Traders transacted 361.6 million equities for N14.8 billion in 21,051 deals yesterday versus the 1.9 billion equities worth N19.2 billion traded in 23,369 deals a day earlier, showing a decline in the trading volume, value, and number of deals by 80.97 per cent, 22.92 per cent, and 14.20 per cent, respectively.
The busiest stock for the session was Zenith Bank with 59.5 million units worth N3.6 billion, Access Holdings traded 46.1 million units valued at N973.0 million, Fidelity Bank exchanged 29.4 million units for N560.4 million, FCMB transacted 27.9 million units worth N293.9 million, and Tantalizers sold 13.0 million units valued at N29.8 million.
By Adedapo Adesanya
Energy stocks influenced the 4.76 per cent loss recorded by the NASD Over-the-Counter (OTC) Securities Exchange on Friday, December 5.
The culprits were the duo of 11 Plc and Nipco Plc,with the former shedding N32.17 to end at N291.83 per share compared with the previous day’s N324.00 per share, and the latter down by N21.00 to sell at N195.00 per unit versus the previous session’s N216.00 per unit.
Consequently, the NASD Unlisted Security Index (NSI) slumped by 170.16 points to 3,401.37 points from 3,571.53 points and the market capitalisation lost N101.81 billion to close at N2.035 billion from the N2.136 trillion quoted in the preceding session.
The OTC securities exchange suffered the decline yesterday despite the share prices of three companies closing green.
Central Securities Clearing System (CSCS) Plc was up by N1.80 to close at N39.80 per share compared with Thursday’s price of N38.00 per share, Air Liquide Plc appreciated by N1.09 to N11.99 per unit from N10.90 per unit, and FrieslandCampina Wamco Nigeria Plc grew by 78 Kobo to N56.57 per share from N55.79 per share.
During the session, the volume of transactions rose by 6,885.3 per cent to 18.2 million units from 4.3 million units, the value of transactions ballooned by 10,301.7 per cent to N389.7 million from N347.2 million, but the number of deals declined by 29.7 per cent to 26 deals from 37 deals.
Infrastructure Credit Guarantee Company (InfraCredit) Plc ended the day as the most traded stock by value on a year-to-date basis with 5.8 billion units worth N16.4 billion, followed by Okitipupa Plc with 170.4 million units valued at N8.0 billion, and Air Liquide Plc with 507.5 million units worth N4.2 billion.
InfraCredit Plc also finished the day as the most traded stock by volume on a year-to-date basis with 5.8 billion units transacted for N16.4 billion, followed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.2 million, and Impresit Bakolori Plc with 536.9 million units worth N524.9 million.
By Adedapo Adesanya
The Naira depreciated further against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, December 5, as FX demand pressure mounts.
The Nigerian currency lost N2.60 or 0.18 per cent against the greenback to close at N1,450.43/$1 compared with the previous day’s N1,447.83/$1.
Equally, the domestic currency declined against the Pound Sterling in the official forex market during the session by N4.48 to trade at N1,935.45/£1, in contrast to Thursday’s closing price of N1,930.97/£1 and shrank against the Euro by 43 Kobo to end at N1,689.17/€1 versus the preceding session’s rate of N1,688.74/€1.
Similarly, the local currency performed badly against the US Dollar at the GTBank FX counter by N2 to close at N1,455/$1 versus Thursday’s N1,453/$1 but traded flat at the parallel market at N14.65/$1.
As the country gets into the festive period, pressure mounted on the local currency reflecting higher foreign payments and lower FX inflows.
However, there are expectations that the Nigerian currency will be stable, supported by interventions by to the Central Bank of Nigeria (CBN) in the face of steady dollar Demand and inflows from Detty December festivities that will give the Naira a boost after it depreciated mildly last month.
Traders cited by Reuters expect that the Naira will trade within a band of N1,443-N1,450/$1 next week, buoyed by improved FX interventions by the apex bank.
As for the crypto market, it was down yesterday due to profit-taking associated with year-end trading. However, the December 1-Year Consumer Inflation Expectation by the University of Michigan fell to 4.1 per cent from 4.5 per cent previously and 4.5 per cent expected. The 5-Year Consumer Inflation Expectation fell to 3.2 per cent from 3.4 per cent previously and 3.4 per cent expected.
With the dearth of official economic data of late, these private surveys have taken on a new level of significance and the market banks of them to make decisions.
Cardano (ADA) depreciated by 5.7 per cent to $0.4142, Dogecoin (DOGE) slid by 5.1 per cent to $0.1394, Ethereum (ETH) dropped by 3.9 per cent to $3,039.75, Solana (SOL) declined by 3.8 per cent to $133.24, and Litecoin (LTC) fell by 3.7 per cent to $80.59.
Further, Bitcoin (BTC) went down by 2.6 per cent to sell at $89,683.72, Binance Coin (BNB) slumped by 2.2 per cent to $883.59, and Ripple (XRP) shrank by 2.1 per cent to $2.04, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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