bernardtayet
2023-02-19

Market noises refer to violent stock prices fluctuations in a volatile market. It occurs more in a turbulent macroeconomic situations. 

All market players have emotions. One way to deal with market noises is to control our emotions, detach ourselves from looking at market on a daily basis. This can be achieved if we know the reasons for being in the market. If we are investing for long term gains, patience is much needed. Our investment goal will trump over our emotion. 

To me, market noises reflect share prices volatility rather than risk. Understanding the risk reward ratios of the shares we have bought will help us ignore market noises. We may even buy more shares of company that are undervalued, good fundamental, strong balance sheet, and wait for the pot of gold when volatility is subdued. 

We need to make sure we buy at an inexpensive price with reasonable margin of safety in order to ignore market noises as we know the drop in price is less drastic with a good entry price. Again patience is key. 

One way to ignore or overcome market noises is to invest in index funds with a composite of stocks to balance volatility as not all shares fall at the same time and at the same degree. The cushioning effect helps to soothe pains and emotions. 

Last but not least diversify your investments. Never put your money only in equities. Invest in investment grade bonds, bank deposits and treasury bills, among others. Product diversification is key not to lose all hopes when equity market investment is not doing well. 

The best way to deal with market noise is to prevent it or minimise the impact on us. Trade with care and not with greed. The market has no mercy. It is a place full of blood if we are not careful. 

These are how I deal with market noises and just share a few ideas. Not all shared ideas are comfortable or suitable for each investors and traders. 

Since we are in this wonderful sharing community initiated by Tigers Brokers, it is my pleasure to say a few ideas. 

Best wishes in your investment journey. @CT888  @SR050321  @HelenJanet  @Tiger_SG  @TigerEvents  @MHh @AnthonyVes  @Fenger1188  @DiAngel   @Kiyosumi  @Success88  , join me in sharing here. Thanks. 

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • MyBaobao
    2023-02-27
    MyBaobao
    I like your comment market is full of blood if we are not careful… i have bled too much blood that i am have awakened
    • MyBaobaoReplybernardtayet
      Thanks… For now i will stay side line and on the look out
    • bernardtayet
      Thanks for the sharing. Trade with great caution. Best wishes.
  • VinkaloZendo
    2023-02-20
    VinkaloZendo
    When one looks at the performance of a stock, they will see a trend over a few years but when they zoom in they will see it go up and down often throughout the months. These fluctuations are normal and we should not get too excited/anxious over them. Instead one should look at the big picture, macro trends and good company strategies or fundamentals to make a good investment decision

    @ChunHui @sst9383 @Appletizer @hawtness @最纯的蓝 good advice for yall if you do longer term horizon investment

    • bernardtayet
      Thanks for the sharing and having similar views on investment.
  • Kiyosumi
    2023-02-20
    Kiyosumi
    Indeed a good advice. Sometimes people just like to make a quick buck by buying and selling smaller amounts for smaller gains, affecting the price of the stock. One should not panic when seeing slight dips in the share price and should emphasise more on fundamentals

    @Eldenminaj @3Fs @Venus_M @JayceLee @JoelSeah @KYHBKO good article for you if you like longer term investments

  • HelenJanet
    2023-02-20
    HelenJanet
    Thanks for sharing your insight and best wishes in your investment too. 👍👍
    • bernardtayet
      Great thanks. Hope we will reap gains in 2023.
  • Thomastank
    2023-02-20
    Thomastank
    Thanks for sharing!
  • Furore
    2023-02-20
    Furore
    ooo
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