This is Jose from EquitySmart.
A lot of times we hear traders and investors talking about how the market is rising or stressing about a dropping market. Regardless of your level of expertise in trading or investing, watching for market direction is very important to base our decisions on buying or selling shares.
Today we will talk about market direction using the S&P/ASX 200’s (ASX:XJO) 1 year graph.
Bullish market periods like the one represented in the trend channel on this graph represent ideal periods to buy shares, on a rising market most shares will rise with it.
On the other hand when the market is dropping, what’s likely to happen is that most shares you are holding today will be worth less tomorrow for as long as the market keeps dropping.
At the time of the publishing of this video we can see that the market is in an uptrend, a period were we would consider buying shares, yet taking a closer look we can see a lot of instability, or in more technical slang “Volatility”. When a market is volatile you may want to exert more caution on anything you are currently holding in your portfolio.
Learn about timing your entries and exits into the market and more by visiting us at www.equitysmart.com.au.
