https://www.google.com/amp/s/m.economictimes.com/markets/stocks/news/nomura-flags-2-billion-loss-cancels-bond-issue-shares-plummet/amp_articleshow/81745107.cms
Another Big thing this week, Billions in losses
Another Big thing this week, Billions in losses
The Economic Times
Nomura, Credit Suisse warn on losses after Archegos share dump
Nomura's loss was related to Archegos' trades, Bloomberg reported citing people familiar with the matter, one of whom said Archegos was a prime brokerage customer of Nomura.
Markets are in Fear.. If the fear turns into panic, then we may see a fall.. or else no..
One Thing Never to Do When the Stock Market Goes Down
*Don't panic. Have a strategy for different outcomes*
When the stock market goes down and the value of your portfolio decreases, it’s tempting to ask your financial advisor, “What should I do? Should I pull money out of the stock market?” That’s understandable but wrong. Instead, you should ask,
“What should I not do?
”The answer is simple: don’t panic. Panic selling is often people's first reaction when stocks are going down, leading to a drastic drop in the value of their hard-earned funds. It's important to know your risk tolerance and how it will affect the price fluctuations—called volatility—in your portfolio.
Investors can protect themselves from market risk by hedging their portfolio through diversification, which includes holding a wide variety of investments.
KEY TAKEAWAYS
*Knowing your risk tolerance level will help you to choose the right investments and avoid panicking during an economic downturn.
*Diversifying a portfolio with real estate, commodities, or precious metals, or hedging risk through some derivatives can mitigate some risk during market crashes.
*Experimenting with stock simulators (before investing real money) can provide insight into the market's volatility and your response to it.
*Don't panic. Have a strategy for different outcomes*
When the stock market goes down and the value of your portfolio decreases, it’s tempting to ask your financial advisor, “What should I do? Should I pull money out of the stock market?” That’s understandable but wrong. Instead, you should ask,
“What should I not do?
”The answer is simple: don’t panic. Panic selling is often people's first reaction when stocks are going down, leading to a drastic drop in the value of their hard-earned funds. It's important to know your risk tolerance and how it will affect the price fluctuations—called volatility—in your portfolio.
Investors can protect themselves from market risk by hedging their portfolio through diversification, which includes holding a wide variety of investments.
KEY TAKEAWAYS
*Knowing your risk tolerance level will help you to choose the right investments and avoid panicking during an economic downturn.
*Diversifying a portfolio with real estate, commodities, or precious metals, or hedging risk through some derivatives can mitigate some risk during market crashes.
*Experimenting with stock simulators (before investing real money) can provide insight into the market's volatility and your response to it.
*Foreign Institutional Investors are net sellers this week..
*Whereas Domestic Institutions like mutual funds and insurance companies are net buyers this week..
*Whereas Domestic Institutions like mutual funds and insurance companies are net buyers this week..
Secrets Of successful trading.
10 Steps to Mental Success
1.Stops – You must respect your stops. They compel you to take a minute and focus on where and why you went wrong.
2.Consistency – You must outline your strategy at the beginning and stick to it thereafter. Trust in your research and data.
3.Start small – Focus on big wins and you forget the importance of following the pattern. Over the long run, taking smaller positions will give you greater control. Then you can gradually increase your position size as your confidence grows.
4.Lifestyle – You must find a plan that fits around your lifestyle. Looking at 50 charts when you only have time for 5 is a guaranteed way to waste time and stress. Instead, concentrate on a few very good opportunities.
5.Noise reduction – It’s all too easy to get bogged down in huge volumes of microdata. Breathe for a minute and focus your energy on the overarching picture.
6.Realistic goals – This is one of the best trading secrets. Unrealistic profit targets will quickly lead to reckless decision making. So, set yourself small and realistic goals, particularly to start with.
7.Cutting losses – Going on autopilot and getting out is essential when threatened with big losses. So, prepare mentally and visualise that emergency exit. As Bruce Kovner highlighted, “if you personalise losses, you can’t trade.”
8.Learn from the best – Pick up books on developing discipline. The Disciplined Trader by Mark Douglas is a great place to start.
9.Trust yourself – Whilst chatrooms and forums can be useful, don’t allow yourself to be overly influenced. Spend too much time on them and you will quickly doubt your strategy when your capital is on the line.
10.Overall picture – Fix your bad habits and practice building that willpower in all aspects of life. You will then find staying neutral when you trade is far easier.
10 Steps to Mental Success
1.Stops – You must respect your stops. They compel you to take a minute and focus on where and why you went wrong.
2.Consistency – You must outline your strategy at the beginning and stick to it thereafter. Trust in your research and data.
3.Start small – Focus on big wins and you forget the importance of following the pattern. Over the long run, taking smaller positions will give you greater control. Then you can gradually increase your position size as your confidence grows.
4.Lifestyle – You must find a plan that fits around your lifestyle. Looking at 50 charts when you only have time for 5 is a guaranteed way to waste time and stress. Instead, concentrate on a few very good opportunities.
5.Noise reduction – It’s all too easy to get bogged down in huge volumes of microdata. Breathe for a minute and focus your energy on the overarching picture.
6.Realistic goals – This is one of the best trading secrets. Unrealistic profit targets will quickly lead to reckless decision making. So, set yourself small and realistic goals, particularly to start with.
7.Cutting losses – Going on autopilot and getting out is essential when threatened with big losses. So, prepare mentally and visualise that emergency exit. As Bruce Kovner highlighted, “if you personalise losses, you can’t trade.”
8.Learn from the best – Pick up books on developing discipline. The Disciplined Trader by Mark Douglas is a great place to start.
9.Trust yourself – Whilst chatrooms and forums can be useful, don’t allow yourself to be overly influenced. Spend too much time on them and you will quickly doubt your strategy when your capital is on the line.
10.Overall picture – Fix your bad habits and practice building that willpower in all aspects of life. You will then find staying neutral when you trade is far easier.