How to become a vigilant short hunter

{}Posted in2023/2/25 11:17:31 | 5Browse

short forexrebatecommission the most efficient way to profit from the f fxrebatecentralancial best forex rebate companys, every smart speculator should be skilled in the winning skills short there are two opportunities, one is the early reversal of the long market sudden shorting, the second is in the obvious short trend in the trend for the second opportunity is not worth too much to explore, this article focuses on how the market environment in the general In conjunction with the long quotes of specific assets for reversal operations, only before the market has been launched to build a good position, in order to wait for the development of the trend with peace of mind, quickly gain considerable profits, especially for shorting, profits come more quickly Identify the shorting environment, the market atmosphere of the three major indicators: 1, the stock index decline The stock market as a bestforexrebatecompany trading Weathervane, the degree of its rise or fall has become the most important basic indicator to measure market sentiment when the stock market has a generalized plunge or sustained decline, representing a deterioration in market risk sentiment may be a turn for the worse in economic conditions, geopolitical instability or other cyclical risks 2, VIX volatility Volatility Index VIX measures the volatility of a series of S&P 500 index options, can VIX measures the markets volatility expectations for the next 30 days VIX expressed as a percentage, the value greater than 30 said investors are worried about the outlook, representing a large volatility; less than 20 values represent a bullish market outlook, volatility is small VIX measures the overall risk of the stock market, if the stock market plunge, rebatesforexbroker the VIX index did not rise sharply, the stock market plunge is most likely just a temporary sell-off of profit taking or If the stock market plunges and the VIX index rises sharply, then investors should pay enough attention to this is a shorting opportunity to come signs 3, bond spreads Corporate bond spreads are another measure of market risk appetite and the degree of corporate confidence Corporate bond spreads are a measure of high yield corporate cashback forex (also known as junk bonds) and The difference in yields between high-yield corporate bonds (also known as junk bonds) and U.S. Treasuries with similar maturity terms measures the level of risk in the market based on the interest spread between high-yield bonds and 10-year Treasuries When market risk sentiment is prevalent, due to abundant liquidity, the market chases high-yield bonds, resulting in higher high-yield bond prices and lower interest rates, so bond spreads will narrow; conversely, when market sentiment tightens and risk aversion rises On the contrary, when market sentiment tightens and risk aversion rises, people will be eager to sell high-yield bonds in their hands and go to buy long-term bonds of developed countries with lower returns but with risk-averse properties, which will lead to, the interest rates of high-yield bonds rise, the interest rates of Treasury bonds will fall, rapidly expanding the spread between the two (high-yield bonds, also known as junk bonds, when investors are afraid of risk, their prices fall much more than other bonds) & nbsp nbsp; Therefore, when the stock index plunges while the VIX index rises, bond spreads are bound to expand, if not, then speculators hurry to short junk bonds it How to accurately select the underlying short assets? First, lets distinguish what is risky assets and safe-haven assets Risky assets include: stocks, commodities, high-yield bonds and commodity currencies (Australian dollar, New Zealand dollar, Canadian dollar and high-yield currencies of emerging market countries); typical safe-haven assets include: gold, developed country low-yield treasury bonds, safe-haven currencies (Japanese yen, Swiss franc, U.S. dollar) According to the stock market decline and VIX or bond spreads these three indicators to determine the markets general mood and background, the next is to target specific assets, the right time to strike at the right time, the choice of species and timing of the two major magic weapons: 1, CFTC positions and then according to the CFTCs currency futures position report to assist in determining the critical point of the market, if at this time the CFTC report of certain risky currency positions has accumulated to an unusually high level, then short the currency will be the best choice due to the CFTCs futures report delayed by a week, so the price and position divergence will be a strong trend reversal signal, wait until next weeks CFTC release, if the data also appears to be a clear reversal, then the data is a clear verification signal of the reversal of the market 2, price trend nbsp; choose the price due to the sudden occurrence of risk aversion has had the first wave of decline, and the decline is relatively larger than other risk assets, which is weaker inside the financial markets weaker law in the continued fermentation of emotions, the weak assets will have a greater probability of generating a huge short market in a comprehensive manner, a standard shorting procedure is this: the current three risk metrics issued after the resonance of obvious risk aversion signals, we can instantly detect a shift in market sentiment, at this time pay close attention to the changes in the price trend of each asset and the data changes in futures positions, the two have verified the change in sentiment of the assets focused on shorting Of course, in the air also need to do a good job of adequate risk management IG Group analysts (https:// www.ig.com/zh) gave more pertinent advice: Remember, in most cases, traders usually hold short positions for a shorter period of time than long positions, market downturns are usually more violent than upturns, and day-to-day volatility is also greater This is an important factor to consider in risk and currency management in particular, in this environment full stop-loss and constantly lower positions may be more beneficial IG Groups Analysts point out two important factors in making air, respectively, volatility and position time, fast and accurate to the precise asset to launch an air attack, get out quickly, if bitten by the crocodile, decisive manual chop positions rather than sitting on the market reversal, this is a measure of a short hunter is the sign of maturity Want to know more details information please check the IG website: https://www.ig. com/zh/market-update

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