The Hong Kong (HK) market was the worst performing major stock market in the world in 2021. Factors such as concerns over the property sector, China’s tightening regulation on big tech and US sanctions on HK companies, all contributed to the underperformance.
Retail investors with less experience may be struggling to adjust because they’re familiar with the prominent technology companies. However the market often passes through multiyear cycles. Understanding changes in investor sentiment can help traders avoid areas of weakness and focus on new opportunities.
This practice can help manage volatility because not all stocks move the same way when the broader market swings. It also prevents a big drop in a single security from inflicting major damage on an account. And perhaps most important, diversification can reduce the kind of bad emotional reactions that happen when accounts swing in value.
All else being equal, a trader with poor stock selection and sound risk management will outperform and survive longer than the trader with great stock selection and poor risk management.
This post will help traders keep up with shifts in sentiment. It will describe some basic techniques for discovering new areas of leadership at almost any time. These can also help you avoid falling into value traps, or being late to stocks that are losing buyers.
The second choice is where to trade. Currently, we have access to 50,000 global securities. We can facilitate offshore stock trading in
China, Hong Kong, Japan, Taiwan, Korea, Thailand, Singapore, Malaysia, Indonesia, and the Philippines as well as Australia. Brokerage fees start at just USD 9.99 and range between 0.1 – 0.3%.
First, even if you don’t trade currencies (and most people don’t), they can have a big influence on the stock market. Moves in the foreign-exchange markets impact companies operating outside the U.S. They can also move commodity prices and related stocks.
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