14 October 2020 (10:26 pm IST)
13 October 2020 (10:26 pm EDT)
World stock markets had a negative session yesterday which closed with negative closings in US stock markets in their overnight session.
The US presidential elections 2020 are just two weeks away and we may see a correction in US stock markets, followed by other markets in these two weeks.
Global investors have not forgotten the roller coaster ride of the US presidential elections 2016 and this time, nobody would like to leave money on the table to have multiple heart attacks. So, we can expect a range bound, and perhaps negative trend until the 2020 presidential election results are declared. And after that, we can expect some big wave, in any direction, in US stock markets followed by world stock markets.
After the negative closing in US stock markets, In Asia session this morning, all major Asian stock markets are trading in the red. SGX Nifty is 50 points down, indicating a gap down opening in Indian stock markets. US and European stock futures are mildly positive but these small numbers are not enough to support other markets.
How To Day Trade:
- World stock markets are under pressure in the Asia session.
- It is possible that the intraday trend will become range bound or stay negative in most of the markets.
- Day traders should remember that world stock markets are facing a major event, the US presidential elections 2020 and volatility levels will spike in global markets.
- The best day trading strategy would be to trade in minimum lots and cut down on the number of trades too.
- This strategy should be adopted for the next two week to conserve your trading capital because after two weeks, we are expecting a tsunami in world stock markets.
- This can go either up or down but the main thing is, day traders will get a good opportunity to book profits at that time.
- Until then, trade in fewer lots, trade for a limited time and strictly follow the trend line.
- World stock markets will have mixed, choppy and mostly negative trend until then.
- So, protect your money and if possible, do not trade at all until the results of the US presidential elections 2020 are out.
- After that, you can resume the regular trading pattern.
World stock markets are trading mostly negative in Asia session, This trend is expected to extend to the European session and after that, to the US session too. Market volatility will be high and day traders should trade cautiously.