Benefits of the financial trading and what will happen next
- by George Solotarov
What will happen in the future? That is probably the most important question humanity has asked itself. The cruelty of the situation here is that there is no way to answer it. And right now this question is even hotter than it was ever before.
We are already facing uncertainty and perspective of financial ruin. The markets are already performing in a very unusual for an every-day-Joe way. They are failing; they are sliding and the recovery is short-lived. In general we are not in a great spot right now.
But even with that in mind, there are still benefits to being a trader right now.
For starters, as we are stuck at home, it is practically the only profession that wasn’t affected by COVID-19 crisis at all, when it comes to daily routine and every-day operations.
Secondly, we now have the possibility to buy low and sell high – the golden rule of trading. For example, GBP. Several weeks ago it has hit the lowest point in all the history of its trading. And those, who managed to buy it then, are going to have the possibility to sell it for a price much higher. I am not going to lie, yes, it is very risky, but the markets have the tendency to recover after every catastrophe.
What else? Even though the primary color is red, there are some instruments that display growth. Gold and USD are the surest examples, as their connection is the most famous inter-market correlation there is. If one goes down, the other one goes up. And let me tell you, if something is growing right now, it goes straight up, no questions asked.
So, as you can understand, I am trying to tell you that if you spot the growth, it is better to get in on it as the growth tends to be quick, rapid and short-lived. Bear trend is gone and we have to adjust to it.
Our lives as traders are changing. We have to adjust to the present conditions and to the thoughts of the new future. There is no sense in denying that the coronavirus outbreak has changed the world forever. Now we will not have to ask ourselves what is going to happen in case a world pandemic is going to break out. We already know. The life and trading as we know them are going to be paused for an unspecified amount of time and we will have to live in accordance to the new rules.
What will it all look like in the nearest future?
Well, seeing how both of the strongest economies of the world are struggling and are looking for stimuli, I would say that things do not look great for us. If USA and China are not able to withstand the hit, who will be? Joblessness level is growing; whole countries are shutting down their production and their activity. Workers are staying at home. No one can tell us when it all is going to end. We all are left guessing.
Experts predict that we can face economic crisis as strong as we saw in 2008. Of course, these are only predictions, but we have to take this theory into consideration.
Is it good being a trader right now? I would argue that it is. We have the freedom to make our own decisions and our own mistakes. We are free to earn working from home 24/7 and we can choose what will bring us success. The only thing we cannot control is the future of the markets performance. But did we ever have control over it?