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Are North Korean missiles really a trading risk for traders?

If nuclear-carrying missiles fired by ‘rogue nation’ North Korea captured your attention recently and then you wonder why the most recent launch did not cause a reaction in the stock market, you are not alone.

Possibly a reason why the recent launch did not shake the market is because market has become de-sensitised to risk.

Why not consider that previous times market reacted badly to something else and coincidentally a missile launch came along that provided a convenient explanation.

After all if we did not follow closely, we would imagine that missile tests were few and far in between but fact is they are pretty common. The market just didn’t bother with every single one. There is close two 20 missile tests in 2017 according to Wikipedia.

Maybe some missiles are more special than others? Maybe. It’s true that missiles fired by DPRK are getting more sophisticated and have the ability to destroy the world. I think it’s also true that weapons from any of the current nuclear nations are able to destroy the world many times over. So unless one has a guilty conscience…

Missiles are a convenient distraction. There are many other more pressing trading risks that traders should be worried about.

JP225 daily chart YTD overlaid with DPRK missile tests

JP225 daily chart YTD overlaid with DPRK missile tests

Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.

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