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A Guide to Position Trading in Singapore

Position trading is a strategy traders employ to ride on the market’s long-term trends. It is considered a more conservative approach than day trading or scalping, where positions are held for days or weeks. Position trading has several benefits, including reducing stress and taking advantage of more significant price movements. However, you must note that this strategy also has risks. You can get started in position trading with Saxo Bank.

Define Your Goals

Before you begin position trading, you must first define your goals. Are you looking to generate profits or grow your capital? What kind of risk are you willing to take? Your answers will help you determine the best course of action and strategy.

Find a Suitable Market

Not all markets are suitable for position trading. You will need to find a market that is liquid enough so that you can enter and exit trades quickly but not so volatile that prices fluctuate wildly. The Singapore options market is generally considered a good choice for position traders.

Consider Your Time Frame

Position trading generally relies on longer-term charts such as daily or weekly charts because you are looking to ride on the market’s overall trend rather than trying to profit from small price movements.

If you don’t have the time to monitor your trades daily, you can opt for a longer-term timeframe, such as monthly charts. However, be aware that this will also require you to hold your positions for a more extended period.

Choose Your Entry and Exit Points

After determining your time frame, you must identify suitable entry and exit points. To do this, you can use technical indicators such as moving averages or support and resistance levels.

Another approach is to use fundamental analysis to identify undervalued or overvalued companies. You can then buy when prices are low and sell when they rebound.

Place Your Trade

Once you have found a market, determined your time frame and chosen your entry and exit points, it is time to place your trade. You can enter the relevant buy or sell order using a broker.

If you are trading CFDs, you must open a position by selecting the number of units you wish to buy or sell. You can then monitor your trade using the platform’s live charts.

Manage Your Risk

When position trading, it is essential to manage your risk carefully. You can do this by placing stop-loss orders. It will limit your losses if the market moves against you.

You could also use leverage to increase your potential profits. However, be aware that this also increases your risk. Use leverage only if you are comfortable with the risks involved.

Review Your Trade

Once your trade is placed, review it regularly to ensure it is still in line with your original goals, which will help you make any necessary adjustments to your stop-loss or take-profit orders.

Risks of position trading:

You May Miss Out on Opportunities

If you only look at longer-term charts, you may miss out on short-term trading opportunities because you will focus on the market’s overall trend rather than small price movements.

You May Hold On to Losing Trades for Too Long

If you do not review your positions regularly, you may hold on to losing trades for too long. It can erode your capital and affect your overall profitability.

The Markets may not trend

There are times when the markets may not trend, making generating profits from position trading challenging. If you experience this, you must be patient and wait for the market to move in your favour again.

You May Experience Drawdowns

Drawdowns are periods when your account value decreases, which can be due to losses or margin calls. When this happens, you will need enough capital to cover your losses.

You May Need to Use Leverage

If you are trading with leverage, you may need to put down more money than you would if you were trading without it, which can increase your risk of losing money if the market moves against you.

Conclusion

Position trading in Singapore offers a balanced approach for traders aiming to capitalise on medium-term price movements while avoiding the intense demands of day trading. By understanding the key strategies, benefits, and tips outlined in this guide, you’re better equipped to navigate the dynamic Singaporean financial landscape and pursue success in position trading. Remember, consistent learning, patience, and adaptability are the cornerstones of achieving your trading goals.

Digitalisation Across The Energy Value Chain: Revolutionising the Power Sector

In the dynamic landscape of the 21st century, digitalisation has emerged as a transformative force across various industries, and the energy sector is no exception. The energy value chain, encompassing exploration, generation, distribution, and consumption, has witnessed a significant paradigm shift due to digital innovations. This article delves into the pivotal role of digitalisation in reshaping the energy value chain, its impacts, and the future prospects it holds.

Section 1: Digitalisation in Energy Exploration and Production

Digital technologies have revolutionised the way energy resources are discovered, extracted, and refined. With the integration of advanced sensors, data analytics, and artificial intelligence (AI), companies are optimising exploration processes, enhancing decision-making, and improving operational efficiency.

Seismic imaging using AI algorithms has enabled more accurate subsurface imaging, reducing exploration risks and increasing the success rate of drilling. Additionally, real-time monitoring of production platforms and equipment through the Internet of Things (IoT) devices ensures predictive maintenance, minimising downtime and reducing costs.

Section 2: Transforming Energy Generation

The energy generation sector is undergoing a profound transformation, thanks to digitalisation. Smart grids are a prime example, where digital technology enables real-time monitoring and control of electricity distribution. This results in better load management, reduced energy wastage, and improved integration of renewable energy sources into the grid.

Renewable energy forecasting, driven by machine learning, enhances the predictability of energy generation from sources like solar and wind, enabling utilities to balance supply and demand effectively. Furthermore, digital twin technology, which creates virtual replicas of physical assets, aids in optimising the performance of power plants and equipment.

Section 3: Digitalisation of Energy Distribution

In the distribution segment, digitalisation has paved the way for smart meters and demand response systems. Smart meters provide consumers with real-time data on their energy usage, fostering energy conservation and cost savings. Demand response systems enable utilities to manage peak demand efficiently by incentivising consumers to reduce consumption during high-demand periods.

Advanced analytics and AI assist in detecting anomalies and faults in the distribution network, enabling swift responses and reducing downtime. This not only enhances reliability but also contributes to the overall stability of the grid.

Section 4: Revolutionising Energy Consumption

Digitalisation empowers consumers to actively participate in energy management. Smart home technologies allow users to control and monitor their energy consumption remotely. Energy management systems analyse usage patterns and provide personalised recommendations for optimising energy consumption.

Blockchain technology is also making headway, enabling peer-to-peer energy trading and transparent tracking of energy sources. This decentralisation of energy distribution could potentially reshape the entire consumer-producer dynamic.

Section 5: Impact on Sustainability and Environmental Goals

The integration of digital technologies across the energy value chain aligns with global sustainability objectives. Greater operational efficiency reduces waste, minimises environmental impact, and lowers carbon emissions. The increased adoption of renewables and the improved management of energy consumption contribute to the transition to a cleaner energy future.

Section 6: Challenges and Future Outlook

Despite the transformative potential, the digitalisation of the energy value chain presents challenges. Concerns about data security, privacy, and the interoperability of diverse digital systems must be addressed. Additionally, the industry needs a skilled workforce capable of navigating this digital landscape.

Looking ahead, the future of the energy value chain lies in the convergence of digital technologies with renewable energy sources. The proliferation of smart devices, coupled with advanced data analytics, will likely lead to more autonomous and efficient energy systems.

Conclusion

Digitalisation has ushered in a new era for the energy value chain, redefining traditional processes and opening doors to unprecedented opportunities. From streamlined exploration to smart consumption, every segment of the energy sector stands to benefit from the integration of digital technologies. As the world strives for sustainable energy solutions, embracing and furthering the potential of digitalisation will undoubtedly play a pivotal role in shaping the energy landscape of tomorrow.

Singapore Convention on Mediation

The signing ceremony for the United Nations Convention on International Settlement Agreements Resulting from Mediation was held on 7 August 2019 in Singapore.

The United Nations is an intergovernmental organisation whose purpose is to maintain international peace and security, develop friendly relations among nations, achieve international cooperation, and be a centre for harmonising the actions of nations.

There is a great expectancy by the players involved in international commercial disputes concerning what really wait from this point in the mediation international scenario.

It is true that the Convention is a milestone. An international convention is very likely to bring us various benefits, and contribute with the development of mediation as an adequate method of dispute resolution in the international arena.

Many users are expecting the same positive effects that New York Convention has brought to arbitration.

The text of the Convention gives a wide interpretation of the term Mediation and sets grounds under which the recognition and enforcement of the agreement could be denied by State courts.

It seems there will be no more excuses not to consider Mediation as an option for the ones who are involved in actual our potential conflicts.

Singapura is giving us the example, by leading an International Mediation Competition during the week of the Singapore Convention signature, and, thus, putting together many of the young generation representatives, that will be soon dealing with international dispute resolution.