19 January 2018 (8:22 AM IST)
18 January 2018 (9:52 PM EST)
A warning for day traders! World stock markets are turning highly volatile and facing various negative challenges in different regions. On the other hand, an speculative bubble is pushing world stocks upwards which is making markets trend risky and prone to sudden reversals.
In such conditions, day trading should be done for short term durations, without market bias (can go in any direction) and day traders must keep strict stop loss in all their trades. These conditions are worse for positional trading so avoid taking short term positions in markets.
U.S. stock markets closed negative on worries of a U.S. government shutdown. Asian stock markets are also trading under pressure after an overnight negative session in U.S. stocks. The starting trend is quite choppy in Asian stock markets. SGX Nifty is marginally positive, indicating positive/ flat opening in Indian stock markets today.
U.S. stock futures are turning negative and European markets futures are already trading negative. These negative futures hint at more choppiness in these bigger markets which can affect global stocks too.
Day traders should watch the intraday trend in their local index, take help of pivot levels for their day trading strategies and trade with the short term trend.