What is happening in the market and what should we pay attention to this week?
The coming week will be significant for the market's short-term direction -
What should we look at?
1) The Fed's statement: to be held on Wednesday at 9:00 PM Israel time, the markets this week reflected a sharper interest rate hike than expected,
Investors expect Powell to try and calm the markets, so everyone is waiting for his words, especially on the issue of interest rate hikes.
2) Leading companies report: Microsoft (Tuesday), and Apple (Thursday), whose guidance will be a significant parameter for the market's short-term direction.
3) Massive lockdowns in China: The issue could disrupt global supply chains, which are already not in good condition.
4) The geopolitical situation: Investors are uncertain about the conflicts in which the US is involved, the Russia-Ukraine arena is heating up, the US is preparing for the possibility of a Russian invasion of Ukraine. This could shake global security stability.
Note: A professional trader must know how to profit from every possible market situation,
but there are times when the market has no clear direction. At these very moments, beyond the market being directionless and full of manipulations -
It is reasonable that due to the expected volatility and the necessary 'shake-outs', success rates will be significantly affected, and consequently, profits.
Therefore, our tip for the inexperienced: it is better not to trade. You don't always have to trade; sometimes the best thing you can do is simply observe from the sidelines, gain experience, and benefit from learning.
The market is falling! What to do?!
First, calm down:
1) Long-term investors: lean back, buying opportunities in various stocks are ahead.
Strengthening positions/new purchases is a necessary, essential, and correct process.
Remember: the key to making money in the stock market is the expertise to buy low and sell high.
2) Swing traders: those who entered with risk management and stop-losses for trades, good luck.
For those who didn't, it's time to set stop-losses according to the risk defined for each trade individually.
3) Day traders: this is your time. The most profitable market for day traders is a volatile and fearful market.
Remember: the market does not pity the unknowledgeable and inexperienced, and rewards the learned and cautious. You must stick to your predefined strategy and manage risks accordingly.
And most importantly, stay calm, remember why you bought the stocks you hold, and do not act out of emotion. Even if you are contemplating selling stocks at a loss, let logic be the one to make decisions for you, not emotion.
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