Learn to Arbitrage Hedge...

Avoid Unnecessary Losses When There Are Trade Solutions - Flashback Reference August 2015

In an online meeting with some of our constituents trading both currency and stocks in Asia and the US; we were asked how do we manage to find certain market conditions that has distinct trade setups in trading the market. Particularly now that skeptic traders have finally realized that a declining stock and US Dollar trend have made its point.

 The first answer is why it takes too long to accept that certain market forces can change even before any turning point can be reflected on the chart formation. This can be attributed towards most technical trading orientation and practices traders tend to follow once a resistance / support price level would be broken through price action.

A BIG SHOUT OUT: Attemtion Asian & US PH Investors & TradersAttemtion Asian & US PH Investors & Traders

Market conditions in global stocks have followed a bearish contagion since the start of the 3rd quarter this 2015. The correlation of the Dow Jones, US Dollar directly and indirectly comparing the indices with the price action of the Philippine Stock Exchange Index which have been associated with is a strategic plan well worth checking especially for Asian / US Asian investors involved in the financial markets. Not all traders present during our online meeting have had the opportunity to arbitrage trade positions in Manila or in any other markets; so to speak, As most traders either tend to hold individual company stocks or run a day-trade which obviously are on the red by these current moves since touching the 8100 levels of the PSEI.

What we do emphasize is that to arbitrarily hedge their total portfolio amount or funds traded correspondingly is essential by using available trade positions in the US markets through foreign affiliated and licensed broker firms that carries an indirect/ direct link to the Philippine stock exchange index. It maybe a complex process and expensive for most qualified investors. And without the proper training and introduction to the right financial instruments including strategies correlated with the major stocks traded in the local stock market in the Philippines, would meet some degree of trading difficulty.

However, it may sound there are methods of doing so that can be an advantage or at least be able to minimize unnecessary losses executed properly. With the current decline seen with the Dow nearing the 17K mark, the PSEI well below the 7500 is on its way lower below the 7000 support mark in the near term. With a market holiday expected traders would now have to wait for the following week to be able to cover long positions or simply exit their long waited positions at a loss.

Strategies are open to all who would simply take time to try and do their due diligence in market research. Where and how to implement these trade plans are within reach, for as long as you know where and how to apply these strategies. Of course, the next step in keeping pace with portfolio / investment modernization will improve the fversity of trading in the global markets. Better yet finding the right mentor / trading partner can shorten the learning curve that one can spend on during actual trading session.