The Dax is currently literally dancing on you narrow degree – that’s the topic at Börse Aktuell.
The abyss is getting closer. In principle, this is not a problem. Because from a narrow degree it can also go up once more. In that case, the key support would have held in the 12,200 to 12,400 area. It only becomes dangerous on the stock exchange when you slip off the narrow line.
On Friday we saw the lowest daily closing price in the Dax for more than 18 months. And the pressure to sell seems unabated. This puts the important support in jeopardy. We should see the starting signal for a further sell-off at a daily closing price below 12,200 points.
Stock market up-to-date – the Dax falls back to 10,000 points
In that case we have to dress warmly. Because such a slump can bring us directly back to the psychological 10,000 point mark. We are therefore currently facing difficult times on the stock exchange. Maybe you should now think regarding a depot security once more. But what might this look like?
Dax: Should you secure your portfolio now?
However, you quickly have to say goodbye to the thought that you will not suffer any loss by securing a deposit with options or warrants. Because it is a kind of “insurance” and it ALWAYS costs money. Still, it makes sense to counterbalance his long-term long stocks.
Swing trading as a portfolio hedge
In addition to a long-term portfolio, I also run a “swing trading” depot. I only hold my positions there for a few days to a few weeks. On the stock exchange, you can benefit not only from rising but also from falling prices. That’s why I hold both long and short positions. This has the advantage that I can adapt very flexibly to market movements. Then, when the overall market falls, I can overweight my short positions. With the profits made in the short-term deposit, I can compensate for losses in the long-term deposit.
There is no “free lunch” on the stock exchange
Of course, short-term swing trading also has a catch. In order to implement it profitably, you first have to sit down and learn. Markets often follow very similar cycles and patterns. You have to identify them first. Only then should you go into implementation with a small risk. In the end, the stock market is not rocket science and trading is as easy as riding a bike. If you can’t drive, you have respect and maybe even fear. Once you learn it, it’s easy and a lot of fun.
Despite falling prices, I wish you a nice weekend
Your Mario Steinrücken
Mario Steinrücken is a stockbroker with body and soul. He usually holds his positions for several days to a few weeks. In the “Stoneback Academy“He helps his customers to achieve more returns on the stock exchange. He started his professional trading career in 2004 in stock trading at the Stuttgart Stock Exchange. He holds the Xetra and Eurex license and also worked as a futures trader at the securities trading company “Gass Capital Markets” in Frankfurt. He also tries to show his enthusiasm for the stock market to his followers with tips and tricks on his own YouTube Kanal to bring closer.
Read and write comments, click here