Twitter talk: Finding it hard to find the time to trade? Look at time trading, then you know exactly when to look at a chart rather than where. » Forex And The Financial Crisis
The world is ending! No really! See those giant shadows? … Giant meteors aimed at all the major banks of the world. Once the banks are gone, chaos will reign, the dead will be resurrected, Vanilla Ice will become cool again, the human race will deploy garbage cleaning robots (they should make a movie of that), and we will all be consumed by an invasion of money eating plants.
Well that’s what it seems the mass media are spinning out to us here in Australia about the “World Economic Crisis!!”, the banks are all going under … crisis! … people of Africa are starving … crisis! … Paris hasn’t got her good stuff out for the cameras to see lately … crisis! … Britney is making a comeback … crisis! OK maybe the last one is a crisis, but the media sure like spinning their proverbial don’t they.
The question is, if you are a currency trader, should you be worried about current market conditions? After all if all the world economies are going down the one way ocean highway, perhaps now is a good time to step aside and just let the world end, we don’t want a repeat of the dot com bubble again do we (pop!)?
Naturally I am talking more rubbish than a council pick up day, now is a great time to trade! We are seeing some of the best volatility of the year across the board, the EUR went down faster than a $2 hooker (no offence to any $2 hookers reading this) last Tuesday (420 pips). There has been as many 300+ range days to trade as there are celebrity sex tapes released this month. Look at the Average True Range (ATR) on the EURUSD, a traditionally stable pair to trade on the spot FX markets;
Look at that baby go, we are pretty much seeing triple the ranges we saw just two months ago on the EURUSD alone. Traders of CFD’s, Futures and Currencies, where it is just as easy to go short as it is to go long, should be loving these markets conditions. Perhaps it is because I didn’t come from a stocks background, but I love nothing more than seeing an instrument drop to the floor (clean thoughts please).
The week of the largest drop in something like 30 odd years on the ASX provided some of the best opportunities on the spot FX pairs, and with no site of an end to the doom and gloom speculation, we should be in for a fantastic ride again in coming weeks. Be ready, be prepared and be nimble.
What are your thoughts on the global meltdown? Leave a comment and lets us know.
Joel
6 Nov 08 at 7:07 am
For trading, it’s been pretty good… just don’t keep too much in your account.
What happens if your broker goes belly-up? I know that my funds on deposit are considered “general credit,” receiving no special treatment in court…
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Akuma99
November 6th, 2008 at 10:53 am
Thankfully regulation is starting to come into the spot market. You can check http://www.brokerontop.com/ for who is regulated by who and how each broker is going financially.
If regulation and security is of a great concern, trading Currency futures is another option which are traded through an exchange and has much tighter regulations.
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