During the last two years, the activity of traditional trading and the taking of criptomoendas trading by people who make traditional investments in the physical world or stock market as in the electronic world using the Internet have intensified, everything has changed dramatically due to the intensification of the commercial activated, trading has double meaning before the speculations of the supposed gurus, which emit one and another meaning around this activity that has been professionalizing
Eduardo Bolinches, trader and analyst, showed no hesitation during his presentation. In it, he wanted to highlight the manipulation to which the followers of the market are exposed via news. For Bo linches, sometimes “a message is transmitted that is not completely truthful”. Bolinches, without hairs on the tongue, refers to the messages thrown by certain managers ensuring that “the stock market is cheap and that it is time to enter even if it is a bear market”. In this sense, the trader reveals the servitude faced by the manager, who must attract clients, with their consequent money, and the only way to do it is to
‘Sell the message’ that the stock market is cheap, there are buying opportunities, when it really is in a bearish environment.
During his speech, Bolinches pointed out that the current situation is similar to that of the end of 2007, beginning of 2008: “We are in a bearish moment, with a pattern of decreasing highs and lows due to the Catalan crisis”, so it is not the best time to enter the stock market. To which it is necessary to add what can happen in the United States, warns Bolinches, since “if Wall Street reaches a ceiling, the Ibex
It could come down. Even Inditex, which is a good value, is bearish ».
In conclusion, Bolinches has insisted that we are at a very similar time and advises investors not to go public in pursuit of these claims because when the trend really changes, that investor who has bought more expensive, can be without liquidity to be able to invest.
How to take advantage of a sleeping market
The professional trader is trained to catch trends in the markets, but it seems that if the markets are asleep, he is bound to wait for the movement to return to the stock market.
Well, no. Alberto Chan, professional trader and CEO of Método Chan, devoted his speech to demolish the myth that side channels are the end of a trader. “It’s precisely when more money can be earned,” he argued.
In one of the most didactic presentations of the day, Chan threw away all the ins and outs of the ‘vanilla’ (vanilla) options and how one can use them for the lateral zones.
The ‘vanilla’ options give the right – not the obligation – to buy or sell an asset on a specified date at a pre-determined price. That is, it allows you to secure the price of an asset in the future.
Within them there may be options of ‘call’ or ‘put’. The first ones serve of “safe” for the climbs and the second ones for the falls. And for that reason they are the most powerful weapon of a trader in lateral channels. Because they allow a double gain if the asset remains in the fixed range. For example, if the Ibex-35 has been dancing for 10,200 points for a while, one can propose a strategy with the range of 10,000 – 10,400. In that case, Chan would sell an Ibex call option at 10,400. That is, if it goes beyond that, it would lose money, but it would win if it stays below. And in turn it would sell a put over 10,000 points. If the index does not fall below that level, it would earn the premium. If that is maintained laterality, would win with both positions and if not, one would compensate the other. It is a strategy that can be applied in any asset class, from currencies to stocks.