Be­gin­ner’s guide to mar­ket anal­y­sis

Simply Her (Singapore) - - Help Your Hubby -

Ac­cord­ing to wealth coach Sandy Jadeja, stock mar­kets mostly trade ac­cord­ing to known pat­terns. If you know what these are, you can im­prove your odds of get­ting greater re­turns. He shares four sim­ple mar­ket strate­gies.

1 LEARN WHEN AND HOW TO WORK WITH THE MAR­KETS

“His­tor­i­cally, mar­kets tend to be more volatile around Oc­to­ber and Novem­ber. So in­ex­pe­ri­enced in­vestors might want to avoid trad­ing dur­ing this time,” says Sandy.

He adds that the first five days of Jan­uary are gen­er­ally used as a guide to how the mar­ket will per­form for the rest of the year. “If the first five days end on a neg­a­tive note, in­vestors may wish to con­sider short-term trad­ing pe­ri­ods – rang­ing from a few days to a few weeks – rather than hold­ing the stocks for the en­tire year.”

2 WATCH FOR RANGE PAT­TERNS

“For ex­am­ple, you no­tice that the stock mar­ket on Mon­day climbs from 100 to 200 points. On Tues­day, its range is smaller, mov­ing be­tween 110 and 190 points. This means that on Wed­nes­day, mar­kets will look to break out of that limited range.” On these “range days”, Sandy says that if the mar­ket breaks higher, then you’d ex­pect mar­kets to climb; if it breaks lower, you’d look for a down­ward move. “Recog­nis­ing range pat­terns means you can take ad­van­tage of them to place a quick or­der on the stock mar­ket.”

3 WORK AC­CORD­ING TO YOUR OWN TIME

You don’t need to mon­i­tor your in­vest­ments all day, says Sandy. “You just have to know when to en­ter and exit the mar­ket. For ex­am­ple, the open­ing time and clos­ing time of the Sin­ga­pore mar­ket (9am and 5pm, re­spec­tively) will of­ten be when the ma­jor­ity of mar­ket move­ments will take place for the day. You may choose to come in just af­ter open­ing and be­fore clos­ing to put in an of­fer.”

4 DO YOUR HOME­WORK

Don’t just rely on study­ing trad­ing pat­terns. “You need to put in time, ef­fort and money to be­come pro­fi­cient,” says Sandy. If you in­tend to make this a life­long method of earn­ing a pas­sive in­come, con­sider in­vest­ing in a com­puter pro­gram that will help you do mar­ket re­search. He adds: “These types of in­tel­li­gent soft­ware can recog­nise known stock mar­ket trad­ing pat­terns and keep you up­dated on changes, so you don’t have to put in so much time to man­u­ally study your stocks.”

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