Today, especially investors encounter frequently, but does not fully understand the details “saw market”I will explain the concept. This term refers to market conditions in which prices show harsh fluctuations and rise and descend without forming a specific trend. Understanding this situation, which has both risk and opportunities for investors, is the key to developing the right strategies. Let us examine this in depth.
What is a saw market? What are the basic features?
The name of the saw market is a sawsimilar to the teeth of the rising and falling price graphs. In this type of markets, instead of a significant rise or decrease trend, short -term and frequent direction changing movements are seen. These fluctuations are encountered in assets such as crypto currencies, commodities or stocks, especially during periods of economic uncertainties.
The main reason why the market acts in this way is that investors do not make a clear prediction of the future. For example, political tensions or Central Bank statements may instantly affect purchase-sale decisions. This causes prices to peak quickly and go down to the bottom levels.
Factors that trigger the saw market
More than one factor plays a role in the formation of the saw market. First of all, the inconsistencies in economic indicators stand out. Inflation, unemployment rate or growth data Investors can move with panic if not at the expected levels.
The second factor is the sudden effects of global events. For example, natural disaster or trade wars in a country can have a domino effect in the markets. Finally, speculative movements fueled these fluctuations. Short -term manipulations of major investors can put small investors in a difficult situation.
Investment Strategies in the Saw Market
In order to be successful in such markets, a patient and disciplined approach is required. The first step is to plan risk management correctly. You can limit possible losses by distributing your portfolio to different asset classes. For example, investing in safe ports such as gold or bonds with crypto currencies is a balanced option.
The second strategy is to actively use technical analysis tools. Technical indicator such as moving averages or RSI helps you catch instant trends. However, supporting these tools with basic analysis, not alone, gives healthier results.
Tips for short -term transactions
The saw market offers attractive opportunities for short -term transactions. First, focus on the timing of purchase and sale. You can accumulate small gains by following the bottom and peak points of prices.
The second clue is closely monitoring the news flow. In particular, important explanations in the economic calendar make it easier for you to predict market movements.
Finally, avoid emotional reactions. Fear or greed may cause you to make sudden decisions.
IMPORTANT Saw Market Samples
History is full of striking examples of the saw market. During the 2008 global financial crisis, stocks experienced fluctuations up to 40 percent in a few months. Similarly, the COVID-19 pandema in 2020 drew oil prices to negative levels, causing harsh decreases in crypto currencies.
All these examples show how unpredictable the markets can be. However, investors acting with the right strategies were profitable from these periods. For example Bitcoin 
$105,198.9 In the period of 2020-2021, it fell to 3 thousand 850 dollars and then saw 69 thousand dollars with the wave of purchase.
Fluctuations in the technology sector
On the other hand, technology shares have been one of the most prominent examples of the saw market in recent years. Speculation that interest rates would increase in 2021 led to rapid decreases in the Nasdaq index. However, artificial intelligence and developments in cloud informatics led to the recovery of shares.
Technology investors can turn short -term fluctuations into an advantage, taking into account the long -term growth potential in such periods.
Saw Market and Psychological Effects
Market fluctuations deeply affect investor psychology. In particular, the tendency to avoid loss causes people to make unreasonable decisions. For example, selling at a loss or turning to excessive risky assets are common mistakes.
Emotional discipline is essential to avoid falling into these traps. False to a predetermined investment plan prevents sudden decisions. Reviewing market conditions regularly helps you to update your strategy.
The most common error in the saw market is to make excessive operation. Continuous purchase and sale reduces the return while increasing commission costs. The second error is to invest all capital into a single being. This raises the risk to difficult to endure.
Finally, getting caught in market noise is also a problem. Instead of speculative interpretations on social media, it is more accurate to get information from reliable sources.
Steps for long -term success in the saw market
Long -term success requires patience and strategic thinking. The first step is to develop financial literacy. Understanding market mechanisms allows you to make conscious decisions.
The second step is to never neglect the diversification of portfolio. In your portfolio, include crypto coins, stocks, bonds, commodities and foreign currency. Finally, make a habit of making regular savings. The dollar cost average method offers stable returns even in wavy markets such as saw market.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
