What do we associate with the word “crisis”? With an unprecedented rise in prices, loss of work and other negative consequences. The crisis is really very detrimental to the real markets. It also has an impact on the so-called virtual markets, that is, financial exchanges, but here its consequences cannot be assessed so clearly.
How does the Forex crisis respond?
The main negative impact of the crisis on financial markets is to bring the exchange rate of assets to complete chaos and confusion. Virtually all trading instruments become too volatile to predict any outcome of a transaction with high probability. The reason for this is the frequent appearance in the media of so-called newsmakers – people who play a significant role in the global economy, for example, heads of banks, presidents, reputable analysts and traders. Market participants pay great attention to this kind of performances, and since experts, as a rule, do not agree, traders have to make adjustments almost every hour, closing unprofitable transactions so that they do not “eat” the entire deposit, and opening new ones.
Who wins in a crisis?
The most perspicacious and experienced traders use the crisis for their own purposes. Successful trading in a crisis has several secrets:
- You can not trust the technical analysis – the indicators will not give reliable information, and the trends follow each other, not having time to start. Fundamental analysis is much more effective. A trader should watch the news, analyze and calculate further moves.
- You can not hurry. In a crisis, Forex makes it possible to close profitably almost any transaction, the main thing is not to rush into closing. However, it is worth it to stock up on a large deposit, because fluctuations in rates can be very rapid.
- It is worth paying attention to the stock market. During the crisis, the stock market is quite predictable – the shares of almost all companies are falling in price. Therefore, a long-term sell order can be very profitable.
- Earn a spread return from each trade in FxCash.Ru and get profit 3-4 times faster.
Thus, the crisis is more likely to have a positive effect on the Forex market, as it attracts more and more novice traders who want to make money on the rise or fall of a particular currency.