The success of stock trading lies in studying the market. However, does a great day at the market really mean what it seems to indicate? In 2020, starting direct market center access trading online is easier than ever. As you begin your new journey into online stock trading, tread lightly and pay attention to the outlook from experienced market strategists.
A Bullish Day for the Market
Wall Street experienced a bullish day on February 6 last week with China deciding to slash its tariffs in half on US imports worth $75 billion. It appears that the political uncertainty has also eased with President Trump being acquitted. And investors don’t seem to be very worried by the coronavirus pandemic.
However, this enthusiasm has been worrying some experts, because it is far greater with equities than with other classes of assets. There is a concern that the next 10% move will be more to the downside than the upside, MarketWatch reports.
Be Wary - A Further Rally Not Expected
Many leading strategists believe that the market for some time has been “priced for perfection” and it may be harder for it to continue to rally. The consensus is that it isn’t advisable for regular investors to feel the market will take off as it did in 2019 and they shouldn’t rely on the extremes. Some investors are afraid they’ll miss a massive rally like last year or fear the other extreme, that the stock market is heading for a crash. Essentially, the stock market lands somewhere in the middle. With the market now in an extended position, strategists don’t recommend chasing it.
With commission free trading offered by direct market center access brokers such as TradeZero, it’s easy to get started. Contact us at (718) 709-4925 to learn more. You can also email us at support@tradezero.us.
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