Singapore-based financial blog that aims to educate people on personal finance, investments, retirement and their Central Provident Fund (CPF) matters.

Tuesday, 30 June 2015

A 2-Week Trading Tip

I chanced upon this piece of statistics when reading my daily CNBC email.

Inside, there is an excerpt regarding how the US stock market reacted towards bad news such as the potential Greece failure.
The link to the whole news is HERE

What this means is:
1) Should the market (Indexes like S&P500 or Nasdaq) fall 2.4% or more
2) Within 1 trading day - especially after a market-shocking-event
3) It will recover over an average of 14days

Possible Action to Take:
1) Should the market during an intra-day trading period fall more than 2.4%,
2) A possible may be taken where you buy the index and hold it for 14days
3) Upside includes the 2.4% (or more if you bought at a lower point) in 14days

While this short-term opportunity does not occurs frequently, it is always good to have a bonus (or extra) 2.4% return added on top of your annual returns - once a year would be nice!

The above do not constitute financial advice, it is merely a sharing of my personal investment insight.
Please understand that investment comes with risk and that all investment actions should be taken only after fully considering all risks involved.

Remember to offer your opinions. If you don't put your two cents in, how can you expect to get change?

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