What will today’s market be like? [Trading strategy for Friday, July 26, 2024]

Hello everyone! I’ll bring you another market analysis today as well. We’ve entered month-end mode, haven’t we? It’s a time when options start to take effect, and a cautious mood seems to be in the air. Now is the perfect moment to firmly plan next month’s budget and prepare for August.

First, let’s talk about current positions. For those holding positions aligned with the current trend, especially continuing to hold as is, that is likely best. I’ll also discuss those holding contrarian positions, i.e., counter-trend positions. If you are in profit across the week boundary, it may be wise to hold as is. However, if you’re showing unrealized losses, it’s prudent to exit quickly.

The period when options gain their effect is actually very important. Because at this timing, market movements can change dramatically. For example, as options near expiration, many traders begin adjusting their positions. As a result, price movements often exhibit patterns different from usual.

Trading in a cautious mood requires prudence. Rather than forcing positions, it’s wiser to prepare for next month. For instance, it’s good to anticipate future market movements and think about what strategies to implement.

When budgeting, it’s important to review this month’s trading results. Analyze which trades succeeded and which failed, and apply those lessons to next month’s trading. Also, it’s necessary to reassess capital management. While rigorously managing risk, think about how to operate funds efficiently.