It is obvious that there are different ways to watch, or analyse the financial market. They are fundamental, technical and sentiment, with technical analysis looking at patterns, trends, price movement and volume. Fundamental analysis studies price movements to determine the value of an asset, while sentiment relates to the psychology and the feeling of the market with the mind of keeping emotions under control. It primarily relates to market dynamics and buyers’ or sellers’ sentiment.
Each of these methods of looking at the value of an asset or price has its merits, and no one of them is complete on its own. Still, with some types of trading or investing, you will want to rely more heavily on one type of analysis than another to better control your risk. Market dynamics allow traders like you to know the financial market’s overall mood and current sentiment. Is it bearish or bullish?
Market dynamics are usually the result of conditions created by notable events from the past, company reports, economic data releases, and geopolitical tensions. Meanwhile, buyer sentiment tackles individual investors’ psychology, which is often guided by their past experiences and expectations of what can happen in the near term. That is commonly used in a negative context because a wise trader knows how to keep a cool head under the heat of the summer season, instead of making decisions based on how he/she feels.
The big challenge of trading is overcoming the emotions you feel when you win or lose, while determining whether the overall market is behaving rationally or if many traders are only going with the crowd. Many negative emotions can ruin one’s trading play, but fear and greed are the two common ones that affect traders the most. Being afraid of losses is a fear that every trader needs to overcome at some point. While it doesn’t feel good to see a losing position, remember that even the world’s well-known traders don’t get it right 100% every time.
The way to approach fear in trading is to accept that it always has its ups and downs, learn from your mistakes, and continue working on your technical and fundamental analyses skills. Greed can convince traders to keep a position open for too long so they can hit the even bigger jackpot, only to miss the right time to close it and end up with a loss. That is why having and sticking to an entry and exit plan is crucial.
Overall, improving self-awareness and understanding how your emotions play a role in your decision-making is key to controlling them. Once you have the right level of rationality and emotional detachment, you’re on your way to becoming a master of the markets. Below are charts, indexes and price actions

NGXASI (Opening chart)

NGX Banking

NGX INDUSTRIAL GOODS

NGX CONSUMER GOODS

NGX INSURANCE

NGX OIL/GAS

NGX 30

NGX PREMUIM

NGX PENSION

NGX 50