This week has been a crazy week and hugely influenced by the geopolitical event - as always, it seems that nowadays, everything is about politics. 😱
We opened the week with the conflict between Iran & U.S, the possibility of another Gulf War or even worse, a potential World War III overshadowed the market. We saw selling from Asian equities, European stocks to S&P and Dow Jones. We saw inflows of safe-haven assets in JPY, CHF, and Gold as different assets reacted to their usual personalities. However, within 21 hours, everything had changed, and the picture reversed 180 degrees. 😳
The Iran & U.S conflict halted, and the good news about U.S & China Trade negotiation, the positive job markets in both U.S and Canada, and the market continued the 2020 uptrend movement to end the week on a positive note. 🤝
If you’re a trader, particularly a day trader, this is the market for you with lots of intraday potentials to make some profit.🤑
However, if you’re a swing trader or investor, you have to be careful in this kind of environment. The most important lesson is that although you should read the news, absorb as much information as you can, but at the end of the day, you should always come up with your independent thinking. 🧐
If you follow the news and trade other people’s ideas, you will always catch the tail of every trend - that means you will always buy at high and sell at low, the opposite of what a good trade and investment are. 😭
On the other hand, if you do not learn from others and do not read the news, then you’re trading blindly and married to your ideas, which might be completely wrong and dangerous. 😵
So the tricky part about trading/investing is that you always expose yourself with new ideas and news, but you always have to trade something that you’ve thought through - it does not have to be your original idea, but it does have to be something that makes sense to you. 😁
Have a wonderful weekend!
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