With 2019 towards its end, we’d want to draw traders’ attention over apparent strategies for trading in the new year for high returns. A lot of analysts are fretting over the probable recession in the year 2020 in Bursa Malaysia, but if you’ve already been long enough in the market you might invariably know how to deal with this slump.

1- Invest in Obscure markets. Markets can consume a small amount of trading money without large price movements. For a year that is predicted to hit a recession, this strategy has to be the best for traders. The two benefits out of this strategy are-

  1. Even if these companies do not earn profits, you won’t be at a greater loss than investing in high-end companies during the fall in the prices.
  2. These markets are likely to give profits, though small, once they get popular and recognized.

2- Do not fail to shuffle. Let’s say, your capital currently is invested 70℅ in stocks and 30℅ in bonds. When the stocks are performing generously, you might want to increase your investment in stocks to 80℅. But when the same stocks under perform, you might sell a part of your share gains and put more money in bonds. Look for trade signals for when to re balance. Many analysts suggest to re-balance annually or when the stocks show a variation of more than 10℅.

3- Analyze shares. Know how did they perform during last year, peak and fall both on the table. Examine if the assets you’re about to invest in produced above-average returns.

4- No matter what everyone says, if 2020 is going to be a downturn, it’ll be the best time to buy more stocks. Investors can buy shares at a very low price and keep them over time until someday in the future they reflect their intrinsic values. Trading profits bind by four words, ‘Buy Low, Sell High.’ 2020 will be the year when you can buy shares at discounted prices provided you know which company has good fundamentals and shall again see its rise.

5- Reduce your debts this year. Prioritize debt reduction over earning high-profit

6- REITs were red hot this year. Market investors speculate that 2020 could be another hit year for Real Estate Trusts.

7- Invest in Defensive stocks. 2020 will be the year where most of the investors would prefer refraining from growth stocks. By investing in defensive stocks you can insure yourself from the volatility of the market. Good examples of high dividend defensive stocks are Coca-Cola and McDonald’s.

Every trader is optimistic about the next financial year, but when has the market behaved certain. These policies might assist you at least a loss-free year. There’s nothing better than the market hit its peak in 2020, but the investment market has never been fully predictable so far. I hope you’ll analyze the above strategies to invest wisely in the coming year. We wish for the best!