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.
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@ChunHui @sst9383 @Appletizer @hawtness @最纯的蓝 good advice for yall if you do longer term horizon investment
@Eldenminaj @3Fs @Venus_M @JayceLee @JoelSeah @KYHBKO good article for you if you like longer term investments