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 Adedapo Adesanya
Oil fell further on Wednesday as the market considers how the US President, Mr Donald Trump’s proposed tariffs could affect global economic growth and demand for energy.
Brent futures declined by 29 cents or 0.4 per cent during the session to settle at $79.00 a barrel and the US West Texas Intermediate (WTI) lost 39 cents or 0.5 per cent to trade at $75.44 per barrel.
Possible sanctions under the new Trump administration remain unclear, with possible tariffs related to Canada and Mexico now seemingly at the forefront of trader uncertainties.
The American president also vowed to hit the European Union with tariffs and said his administration was discussing a 10 per cent duty on Chinese imports because the narcotic fentanyl is being sent from China to the US via Mexico and Canada.
Mr Trump had previously threatened a 10 per cent duty on Chinese imports but realigned that with the February 1 deadline.
On its part, China said it was willing to maintain communication with the US and sought to promote stable and sustainable ties.
In Europe, French President, Mr Emmanuel Macron, and German Chancellor, Mr Olaf Scholz, insisted Europe was strong while expecting difficulties due to threats of tariffs from the US.
The US president also said his administration would “probably” stop buying oil from Venezuela, a member of the Organization of the Petroleum Exporting Countries (OPEC) under US sanctions.
The US imported about 200,000 barrels per day of oil from Venezuela during the first 10 months of 2024, up from an average of 100,000 barrels per day in 2023, according to the latest data from the US Energy Information Administration (EIA).
Saudi Arabia’s crude oil exports in November jumped to their highest in eight months while Libya is planning to boost its crude refining capacity from the current 300,000 barrels per day to 400,000 barrels per day.
The American Petroleum Institute (API) estimated that crude oil inventories in the US increased by 1 million barrels for the week ending January 17. For the week prior, the API reported a draw of 2.6 million barrels in US crude oil inventories amid build season, while product inventories saw a hefty build for multiple weeks in a row.
In 2024, crude oil inventories dropped by more than 12 million barrels, according to the API’s inventory data, with the downward trend continuing beyond the new year.
Official data from the US EIA will be released later on Thursday with both weekly reports delayed by a day due to the US Martin Luther King Jr. Day holiday on Monday.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited came under selling pressure on Wednesday, resulting in a 0.29 per cent loss at the close of trading activities by 2:30 pm, when the closing gong was struck.
Data showed that investors booked profit on equities that have recorded a reasonable price appreciation in the past trading days.
As a result, the All-Share Index (ASI) was down by 301.86 points to 102,836.13 points from the preceding day’s 103,137.99 points and the market capitalisation went down by N186 billion to settle at N63.147 trillion versus Tuesday’s value of N63.333 trillion.
Business Post reports that apart from the banking sector, which gained 0.61 per cent yesterday, every other space turned red.
The insurance counter declined by 0.91 per cent, the consumer goods index tumbled by 0.26 per cent, the industrial goods counter crashed by 0.18 per cent, and the energy industry shrank by 0.11 per cent.
Multiverse topped the losers’ chart during the session after it lost 9.87 per cent to close at N10.05, May and Baker slipped by 9.78 per cent to N8.30, Prestige Assurance retreated by 7.69 per cent to N1.32, Guinea Insurance crumbled by 7.45 per cent to 87 Kobo, and Red Star Express moderated by 4.75 per cent to N4.81.
On the flip side, SCOA Nigeria appreciated by 9.70 per cent to N3.28, Cadbury Nigeria jumped by 9.65 per cent to N25.00, Secure Electronic Technology gained 9.59 per cent to 80 Kobo, C&I Leasing expanded by 5.85 per cent to N4.34, and FTN Cocoa grew by 5.41 per cent to N1.95.
On top of the activity log was Access Holdings with a turnover of 92.0 million shares valued at N2.2 billion, UBA exchanged 27.0 million stocks worth N919.3 million, Sterling Holdings traded 23.0 million equities for N124.1 million, AIICO Insurance transacted 17.9 million stocks worth N31.7 million, and Zenith Bank sold 17.0 million equities for N802.2 million.
In all, the market participants bought and sold 394.8 million stocks worth N15.2 billion in 10,766 deals at midweek versus the 440.3 million stocks valued at N12.0 billion transacted in 13,087 deals a day earlier.
This showed that the value of transactions increased during the session by 26.67 per cent as the volume of transactions and the number of deals decreased by 10.33 per cent and 17.74 per cent, respectively.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.16 per cent decline on Tuesday, January 21, extending its loss this week to two.
This further depleted the market capitalisation of the alternative stock exchange by N1.65 billion at the close of transactions to N1.071 trillion from the N1.073 trillion it closed in the preceding session.
In the same vein, the NASD Unlisted Security Index (NSI) slid by 4.79 points to wrap the session at 3,100.33 points compared with 3,105.12 points recorded in the previous session.
The bourse ended with two price losers yesterday led by Geo Fluids Plc, which gave up 32 Kobo to trade at N4.38 per share versus Monday’s closing price of N4.70 per share and FrieslandCampina Wamco Nigeria Plc, which depreciated by 15 Kobo to close at N39.50 per unit compared with the previous day’s N39.65 per unit.
On the second trading day of the week, the number of deal carried out slightly went up by 8.3 per cent to 13 deals from the 12 deals executed at the previous trading session.
Also, the value of transactions increased by 97.2 per cent to N4.5 million from the N2.5 million recorded a day earlier, while the volume of securities traded in the session declined by 71.6 per cent to 183,780 units from the 767,610 units recorded on Monday.
FrieslandCampina Wamco Nigeria Plc remained the most traded equity by value (year-to-date) with 4.1 million units worth N162.9 million, followed by Geo-Fluids Plc with 9.1 million units valued at N44.0 million, and 11 Plc with 55,358 sold for N14.5 million.
Also, Industrial and General Insurance (IGI) Plc closed the day as the most active stock by volume (year-to-date) with 25.3 million units worth N5.9 million, trailed by Geo-Fluids Plc with 9.1 million units sold for N44.0 million, and FrieslandCampina Wamco Nigeria Plc with 4.1 million units valued at N162.9 million.
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