Tuesday, February 12, 2008

Very Nervous & Cautious Trading In Equity Markets

Today's trading session in Asian stock markets saw very cautious investor and trading approach, after weeks of very steep falls, people have become extremely risk averse and are extremely reluctant towards equities in general, instead they preferring Commodity investment. They are right in their approach as equities are giving sleepless nights to each market player and situation is still very complex. Commodities on the other hand are lot more stable during the period in which equities were falling like anything, voaltility in commodities like copper, lead, zinc, gold, silver is minimal, thereby giving ample oppurtunity to earn profit or simply exit from position with minimal losses. On the other hand, equity markets haven't given enough time to very large section of market players to exit, even if they have exited, then that position was in deep losses, thus eroding confidance and patience. This carnage in equity markets will remain there in the people's mind for long time to come.