Waiting For The Market To ‘Recover’? Some Investors Aren’t Waiting At All

Tariff news, ongoing conflicts, and the possibility of a recession still loom, making the markets now grumpier than my cranky teething baby. While at least they don’t scream as loudly, I’m the one who feels like crying when I see the markets down. 

During such turbulent times, we tend to stick to the safer method of passive investing for the future in things like ETFs, CPF and SRS. While these long-term strategies are important, during sideways or volatile markets, they can feel stagnant. 

This leaves many investors wondering—should they wait it out or act now? 

 

The reality of today’s market: uncertainty is the new normal

Since 2024, markets have been anything but steady. We’ve seen interest rate hikes, then pauses. Some tech giants soared on AI gains, while other sectors, especially retail and logistics, struggled with slower demand and rising costs.

At the same time, global tensions haven’t helped. New US–China trade tariffs, conflicts in Europe and the Middle East, and shaky supply chains have made things even more unpredictable. For Singapore, where trade is the lifeblood of the economy, this means extra pressure on both investors and businesses.

Trying to time the market in this climate? Might as well try guessing when your baby will nap. Volatility isn’t a blip, it’s the baseline. And the best move isn’t chasing certainty, but planning for the swings.

 

Why some investors are using CFDs to stay in the game

Here’s where Contract for Difference or CFD comes in. 

CFD trading is where you predict the underlying price of an investment asset, such as shares, indices, commodities, forex and more, instead of buying the actual asset. 

This way, you’re only exposed to the price movements as CFDs work by mimicking the underlying market that you’re trading in. 

They’re a great way to continue making your money work for you, as they’re used during volatile markets to act on short-term opportunities. Unlike traditional investing, CFDs let you capitalise on whether the prices of assets move up or down, useful when markets are volatile. 

As a trader, you can go long (take a position expecting prices to rise) in an optimistic market, or short (potentially profit even when prices are falling) when you anticipate that the market will fall in price. In volatile times, this flexibility is gold. 

But what if all this happens when we’re asleep in Singapore and the action is happening during US time? 

With the CFD trading platform IG, you get access to 24/5 trading hours (open 24 hours a day, 5 days a week)—and you’re not stuck waiting for markets to open. On top of that, weekend trading is available on forex, global indices, and commodities, so you can act on market moves even outside regular hours. 

 

How to start with CFDs

If CFDs sound like your thing, great. But before diving in, it’s worth knowing how the mechanics and safeguards work.

What leverage means (and why it matters)

Leverage is a core part of CFD trading. It lets you open a position that’s bigger than your initial deposit. For example, if a stock is trading at $1,000 and you put in $200, the broker covers the remaining $800.

This also means your gains (and losses) are magnified. So yes, there’s risk, but you’re not flying blind.

IG’s platform helps you manage risk

IG offers several tools to keep your trades in check:

• Guaranteed stops: These close your position at your set price, no surprises, even if the market gaps or slips, for a small fee.
• Stop-loss orders: You can set these to automatically exit a trade if the price moves against you.
• Real-time alerts: Stay updated with market news or price changes that matter to you.

An example

Let’s say Apple’s earnings just smashed expectations and the stock jumps. You go long on a CFD trade, but also set a guaranteed stop. If things turn south, your downside is capped, no extra fees unless the stop is triggered.

Basically, you’re in control. The tools are there to help you trade smarter, not take wild swings.

 

You don’t have to abandon your portfolio—just add a strategic move

Just like parenting, investing isn’t all-or-nothing. You don’t have to give up your REITs, ETFs, or SRS contributions to try something new. Think of CFDs as that extra tool in your parenting bag, like the emergency snack stash or white noise app. You don’t always need it, but when things go sideways, it helps.

If you’re in your 30s or 40s, balancing work, family, and long-term goals, flexibility is everything. CFDs offer a way to act quickly during market swings, whether it’s hedging against a dip or jumping on a short-term event.

With IG’s risk management tools, like guaranteed stops and real-time alerts, you can stay in control, even when the market’s having a full-on toddler tantrum.

A little treat for trying something new

Ready to give it a go? Open and fund an IG account with at least $1,000, make just 1 trade, and you’ll get:

• $250 in cash OR
• 4,925 SmartPoints, enough to redeem the Sony WH-1000XM5 Noise Cancelling Headphones (worth $589)

 

Disclaimer: IG provides an execution-only service. The information in this article is for informational and educational purposes only and does not constitute (and should not be construed as containing) any form of financial or investment advice or an investment recommendation or an offer of or solicitation to invest or transact in any financial instrument. Nor does the information take into account the investment objective, financial situation, or particular need of any person. Where in doubt, you should seek advice from an independent financial adviser regarding the suitability of your investment, under a separate arrangement, as you deem fit. No responsibility is accepted by IG for any loss or damage arising in any way (including due to negligence) from anyone acting or refraining from acting as a result of the information. All forms of investment carry risks. Trading in leveraged products, such as CFDs, carries risks and may not be suitable for everyone. Losses can exceed deposits. This advertisement has not been reviewed by the Monetary Authority of Singapore.

 

This post was written in collaboration with IG. While we are financially compensated by them, we nonetheless strive to maintain our editorial integrity and review products with the same objective lens. We are committed to providing the best information in order for you to make personal financial decisions with confidence.

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About the author

Caleb Leong is passionate about travelling the world and getting involved in cross-cultural works. Freelance digital marketing and content writing is a way for him to express himself creatively while earning his keep. He unwinds by diving into a variety of music genres. Living in a digitally disrupted world, he’d like to offer a different perspective on finances to show people the possibilities of what goes beyond a typical “Singaporean life”.