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Personal finance + economics + markets

Good morning investors! September continued to be cruel as all major indexes fell and the crypto industry continued to remain stagnant. Now, all eyes are on this weekend’s G20 summit.

Today we cover:

• Oil to get more expensive 🪧 

• Why the G20 summit is important for crypto lovers 🪙 

• How to make money as a day trader 💴 

• Get the free audio version of the newsletter, which comes out the night before!

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📊 Economy and News 

Oil could hit $107, warns Goldman Sachs

The Fed might have a difficult time reaching its target of bringing inflation under 2% given that Goldman Sachs is now predicting oil to hit $107.

🙋‍♂️ But why? Saudi Arabia is mostly to be blamed.

The Arab country has decided to reduce supply, which may push oil to $107 by 2024.

The bank, however, emphasizes that $107 is not their base-case scenario as they don’t see OPEC+ pursuing prices well above $100.

Saudi Arabia says the move is designed to “support the stability and balance of oil markets.”

😢 It’s already bad: Oil is already trading at around $90 due to the Ukraine-Russia war.

Global hits:

• Chinese imports and exports continue to decline.

• The Pakistan Stock Exchange (PSX), which was the world's best performing stock exchange in July, is gearing up for new IPOs.

• European private loan market falters due to increasing corporate credit stress.

• Chinese social media campaigns are impersonating U.S. voters, warns Microsoft.

📈 Stocks

S&P 500 4,451.14 (-0.32%)
DJIA 334,500.73 (0.17%)
NASDAQ 15,258.52 (-0.73%)
VIX 14.40 (-0.35%)
* Prices as of Sep 8th, 12:20 AM UTC

Apple shares fall due to China

Apple shares fell more than 3% on Thursday, following a 4% decline on Wednesday, after several reports suggested that Chinese government workers could be banned from using Apple’s iPhones.

🤛 This comes months after the US government’s decision to ban TikTok from federal devices.

🇨🇳 China is Apple’s third-largest market, accounting for 18% of total revenue last year. This ban could significantly impact the company, which is gearing up for the release of the latest iPhone on September 9th.

The result? Experts believe that a ban on all government employees could reduce iPhone unit sales in China by as much as 5%. 😢 

“Perhaps more importantly, restricted use of iPhones among government employees could negatively impact sales among consumers (related family members; general populace) and could be part of a broader move by the Chinese government to promote usage of domestic technology,” said Bernstein analyst Toni Sacconaghi.

Insult to injury: Apple is already facing tough competition from local manufacturers in China.

🔐 Crypto

Bitcoin $26,320.90 (2.23%)
Ethereum $1,649.80 (1.09%)
Total market cap $1.04t (0.57%)
* Prices as of Sep 8th, 12:20 AM UTC

IMF and FSB are against a blanket crypto ban

Just banning cryptocurrency won't eliminate its risks, a joint policy roadmap published by global standard setters Thursday said.

Set to be presented to the G20 this weekend, the paper is part of a series of efforts by international bodies to introduce global norms for the industry.

👍 G20 is important: because of a key paper that calls for the licensing of crypto services and money laundering.

👁 All eyes on the summit: The industry expects a framework on how stakeholders like crypto exchanges and brokerages might work, to ensure retail investors are protected from volatility.

💵 Personal Finance

Making money as a day trader

We don’t endorse day dreading as it’s very risky. Only about 5% of day traders actually profit from their endeavors. However, it’s too rewarding to ignore and everyone loves to trade, so let’s talk about it.

Wikipedia defines day trading as “a form of speculation in securities in which a trader buys and sells a financial instrument within the same trading day to avoid unmanageable risks and negative price gaps.”

But can anyone do it? Yes, but you shouldn’t until you know all the strategies.

Remember this:

• Start with a demo account to learn how day trading works.

• Make sure to only invest in assets you know about.

• Don’t risk more than what you can afford to lose.

Ready to try day trading? Here are some strategies

Market opening gap

Most smaller opening gaps are typically filled, but larger breakaway gaps aren’t. They indicate where the market is heading. Hence, look for opening price gaps in markets to decide your move.

Pre-market stock scanning tools can be used for this task. The chart below highlights a huge gap of 80%.

When you come across a situation like this, your next step should be to:

• Find why this is happening. Does it make sense?

• Look for an entry point and use the ‘limit order’ option to buy.

• Place stop loss support

End of day trading strategy

You will need to be active before the market closes as stocks typically become very dynamic at this point.

Who is it for? This is for people who are short on time as this strategy removes the need to sit in front of a screen all day.

This strategy involves studying the day’s price action and then speculating how the price could move based on the price action. Risk management orders such as a limit order​ and a take-profit order can be used to reduce the risk.

Day trading is fun but risky, watch this video to learn more about it:

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👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.