Trump's speech scares the US stock market, how can we cleverly use stock indices to hedge risks?

Recently, the US stock market has recorded significant gains, especially the S&P500Since Trump11month8Since the Japanese victory election, it has repeatedly set new historical highs, with gains exceeding250Point, cumulative surge10%Investors who hold onto this wave of market trends can be described as smiling with joy. At present, Trump's market continues to dominate the US stock market. This Tuesday, Trump will deliver a speech to Congress, which is expected to include some details on infrastructure spending and tax reform plans. The US stock market will once again usher in a major market trend.
British finance reminds that the specific details of economic planning promised by Trump so far are very few. If Trump's first speech in Congress makes people feel that these plans will be implemented slowly, or the plans are too vague, it will pour cold water on the hot stock market,stock market indexWhen the high level falls, investors can take advantage of the trend and enter the market to short the stock index; If Trump's speech provides more details on his promised government spending, infrastructure investment, or tax cuts, a higher risk trading strategy would be to buy long on dips in moderation and chase orders beyond the range, which would be more advantageous. Compared to stocks, stock indices can be bought and sold in both directions, just like the stock index product of British Finance: the US Standard500, corresponding to S&P500The index allows the market to make profits by taking a long position on a rising stock index, while making a short position on a falling stock index can effectively hedge against losses caused by a stock market decline, and even achieve the effect of turning losses into profits.
It is worth noting that market fluctuations can bring high returns, but they are also accompanied by high risks. Once mistakes occur, losses will be even more severe! It can be seen that in addition to selecting the right products, controlling risks is also important. The following are three trading suggestions shared by British financial analysts regarding trading errors that investors are prone to make:
The first step、Strategic entry into the market
The timing of entering the market can be divided into two types: entering the market before the announcement of the news and entering the market after the announcement of the news. Compared to others, it is better to grasp the timing of entering the market after the news comes out. If Trump doesn't disclose too many details in his speech, the heat of the US stock market decreases, and the momentum of the stock index declines, this is the trend. When the stock index price fluctuates high, enter the market and buy long.
Step 2、Position management
Position management is a compulsory course for trading profits in leveraged markets. It is important to note that high leverage may bring high returns, but it also comes with significant risks. However, many investors often engage in heavy positions in order to earn high profits. The larger the market, the more significant the profit potential, and this phenomenon becomes even more severe. Ultimately, most holders of heavy positions end up with positions being sold out due to market reversals or wide fluctuations.
Step 3、Set a stop loss
I believe many investors do not have the habit of setting a stop loss when placing orders, and it is important to note that investing carries risks. Once the market appearsThe "Black Swan" event or analysis of the wrong trend often results in investors losing nearly a thousand dollars in just a few minutes. Some investors may even miss the best stop loss point due to thoughts such as "the market may reverse", "there was no mistake in making orders, but now there is only market volatility", "we have already lost, we will close our positions when the price returns", etc. The more we lose, the less willing we are to exit, and the outcome can be imagined.
To learn more about market entry techniques, you can log in to the official website of British finance(yifx.com)orAdd WeChat“A65883732”,Free participation in online training courses for British finance.
Adhering to customer-oriented principles, British finance has launched a special launch [free]+ [interaction]Our online courses cover everything from beginners to advanced levels, covering a wide range of topicsgold、crude oil、foreign exchangeThe relevant attributes of products such as stock indices, common trading psychology, technical analysis, market research, etc. are tailored to the learning needs of investors. While improving their analytical abilities, many customers can also grasp the market investment focus in real time and directly obtain guidance on entering the market and making profits. If you want to improve your ability to make orders, you can register for the investment online lecture on the official website。
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