Lessons From SVB’s Failure

Moomoo Learn joined discussion · Mar 14, 2023 18:33

History is unfolding before us, and we have been chosen as witnesses.

The fallout from SVB's collapse still looms over the market. Not sure how the bank runs will affect the rest of the U.S. banking sector, especially some smaller banks. Global financial stocks have lost $465 billion in market value so far as investors cut exposure to lenders following the collapse of Silicon Valley banks, according to a Bloomberg news report on March 14, 2023.

Now is not the time to be scared out of your wits by the unpredictable future. At least, we can learn some lessons from the aftermath of SVB:

1. Investing always involves risks. Be sure to make your trading risks controllable or bearable by yourself.

2. Investment should be diversified to reduce risks. More importantly, it will help you stay calm during market storms to make smarter decisions or avoid panic selling at bad times.

3. Prepare ahead of time. The Fed's next move in interest rates remains a major focus for financial markets. CPI data will be released on Tuesday, March 14, 2023. The Sharing of an options trading strategy from Moomoo TA might help hedge against volatility without knowing the direction of the market. But it is for reference only.

4. In addition, if you tend to invest in combination with technical trends, knowing more about technical indicators will help you take advantage of short-term fluctuations, thereby reducing the anxiety caused by doing nothing. Here we bring a common technical indicator - the Inverse Head and Shoulders Pattern.

Click on the lessons to get ready for the week ahead>>>