The year 2011 has been difficult for traders as well as investors. investor saw significant erosion in values of their portfolios, while fresh opportunities for investing were absent. For traders, the year saw a series of small trends interrupted by counter trend moves. Small trends are difficult to make money. What then is the possible scenario for the New Year - 2012? When we look at long term charts of the Nifty, we see the scope for further declines. While markets will do what they will do, it does appear that the recent low of 4530 may not be the final low of this bear market. At some point, the markets will bottom out. But, that point is not within sight.
This is what 2012 could look like:
Trading will continue to attract the best minds in business, because of the intellectual challenges, mental satisfaction and independence that the profession offers.
Markets will bottom out in 2012, after which a new bull market will start that may last for several years.
High Frequency Trading Systems will dominate scalping, but individual traders will dominate all other time frames including swing trading which lasts for a few hours to few days.
A number of stocks will never revive from their bear market.
Gold will continue to be in a bull market after a deep correction, while silver bulls may remain disappointed during the year.