Black Swan Hunting: Exploiting unpredictable market events for profit

financialexpress.com:

In today’s fast-paced stock market environment, new strategies and technical trading theories are introduced every other day. Traders and investors are in a race to discover the perfect strategy for finding a perfect trade setup with the help of in-depth understanding of candlestick chart patterns and price action strategies.

But unforeseen market circumstances are inevitable. We call it black swan events. These are the rare moments that occur in the stock market, mainly to trap traders and investors in their predetermined approach. Whereas, majorly it happens due to geo-political reasons, natural disasters, or corporate actions. Black swan hunting on the other side is the proper study to encounter the unforeseen market circumstances and make money out of them.

It was first defined in Nassim Nicholas Taleb’s theory, referring to black swan events as rare and impactful occurrences in the stock market. The one who knows how to track opportune black swan events is capable of making money out of adverse market conditions. These events often get the market off guard and cause insignificant volatility that raises tension among traders.

However, the ones who know how to understand market sentiment convert these adverse conditions into market opportunities. They do not see the sudden volatile movements as a risk. Instead, they see it as an excellent opportunity to make money ahead of other conventional traders and investors. This is what we call black swan hunting.

Also Read: How to manage health emergencies without breaking your bank

The trader and investor who is high on confidence with their knowledge and strategy always keeps their mind open to these events. Instead of panicking in these situations, they make sure to