How to trade mega opportunities
The world of trading is very exciting- the market trading volume reached 4 trillion dollars per day.
The market is open 24 hours, during the time which currency pairs alternate in ups and downs in endless random and rhythmic movements. At the start, it’s hard, but after learning it’s easier to understand.
Each pair has its own strength and beauty; it attracts us to invest and take over its points to make decent profits.
Absolutely! The process seems easy to you! We’ve conducted intense research based on how people can make millions from trading foreign currencies. The requirement includes using a large amount of our savings with a broker and buying the latest and greatest index or hiring a trading consultant- then drown in points and profits. It’s not that easy!
Warning: Forex is an exciting, yet dangerous world!
It seems easy from the start, but it’s WAY harder than you think. Your first impression feels as though you’re earning points continuously, meanwhile, you’ll experience losses and ultimately lower your account balance.
It is essential to learn correctly, discover opportunities and set them rationally and wisely.
To achieve this goal, we must avoid the double risk in overdue and shortage of capital, find the right entering prices and sell prices to achieve the best profits.
There are two methods to seize the opportunity: Firstly, through technical and chart analysing and secondly through main analysis depending on the markets and the available opportunities.
So, let’s find out how to seize those opportunities.
Setting main price movements
The price highlights the high and low-price zones at all time frames and traders notice these special zones at all assets and on all historical charts. The ratio trends make the price movement unique.
A series of low bottoms and high peaks determine the clear price directions (higher highs and lower lows).
Falling bottoms indicates a downward trend
While buyers and sellers compete to control the trend, pattern cycles are generated.
The markets grow endlessly and down to points lower than zero, which create trading opportunities at each time frame moved by sentiment.
The price drop creates fear of low profits, then new price gatherings awaken greed, and creates an implied invitation to thrust traders to enter the markets and achieve profits as much as they can.
Creation of bottoms:
The bottom gets created as a direct result of the trend. The impulsive movement or the reaction helps create two unique models in each pattern cycle. In the rising direction, the low rise must be followed by a high rise and creates a new peak. While in the down turn direction, the bottoms creation is over when the price bottom gets higher. This event represents the creation of the double bottom.
Double bottoms grasp its prediction strength from previous trends. With the present series of low bottoms on the chart, it slowly changes into the rising direction. تقييم شركات التداول Traders notice the drops and expect it to drop more, then suddenly the last bottom holds stable. The crowd observes notice buyers entering slowly to get new prices, then the stability of the prices encourages traders to get familiar with the pattern of executing positions.
The price grow percentage reaches its maximum at the beginning of a new rise. Therefore, the truth about you “being right” with your analysis at the bottom movement can result in a higher profit from any trade.
What is the strong news that moves the market and prices, and where does the investment opportunity stand?
First, let’s familiarize with the term “Recession”:
Recession is a downturn in economic growth, but the macro environment indicators used to define the term “recession” has evolved in time.
Since the great recession in 2008, the International Monetary Fund has described “Global Recession” as a decline in real global GDP per capita, as supported by other macroeconomic indicators such as industrial production, oil consumption and unemployment for at least 180 days.
The great recession began in the United States in 2007. The GDP lowered by 4.3% in the United States, and the unemployment rate got closer to 10%.
Without a doubt, the main engine of the markets now is COVID-19. The health dimensions are known to everyone, but the economic dimensions globally is what we would like to discuss, as it affects currency movements and assets such as Gold and Crude oil.
In comparison to the corona virus outbreak, the unemployment rate is increasing consistently.
After COVID-19 spread In the US at the end of March this year the economic data started covering the effects of the virus on the economy. While the US Dollar is the world’s reserve currency, it simply means that at times of economic pressures the investors provide dangerous and risky assets or currencies and buy the US Dollar, as it’s a safer purchase due to its safe qualities.
Companies have stacked dollars due to scare of harder times in the future- which results in the US Dollar value being pushed higher.
The Federal Reserve promised unlimited quantitative easing, the fiscal stimulus package of 2.2 trillion dollars eased the fears in the markets and decreased the dollar value.
But the lead to market stability relates to clear signs, based on the number of the coronavirus cases is decreasing, and the frequency of new cases and spread is declining.
In short, we have not reached there in a global sense - China reversed the reflection angle in some areas, but regarding the market value of trading, the main focal points are concentrated in Europe and the US market in terms of market value. Indeed, the issue is also global and not limited to a country, discussed below.
We will present three possibilities for how the situation has evolved- starting with the current situation. We will review the best and worst scenarios. None of the three scenarios may happen in the same manner described. Please note that this is a schematic diagram of potential outcomes that are designed to arouse the idea and expand perceptions and possibilities to make the best use of these opportunities, these possibilities are not expectations for certain moves.
First, referring to epidemiologists, scientists have indicated that 40-70% of the planet's population could be infected with this disease- it is essential to study the implications of these allegations.
Regardless of the situation, two things that are necessary to acknowledge in the upcoming weeks and months about the effects of the coronavirus on our lives and on our investments - although these opportunities may be ideal on CFDs, and the presence of leverage and liquidity when the market faces a major crisis or decline: The market will provide greater opportunities for trading.
There is a good reason why 89-year-old Warren Buffett recently hit record profit and liquidity levels! One of his most famous sayings:
“Another note - It is clear that central banks and governments are also preparing for a round of interest rate cuts and other measures to boost confidence in the economy. This could spark large volatility and even overwhelming gains in the near term. The scenarios below do not include this stage of reaction to this situation, but wherever the bottom lies and whatever assets, tools and currency pairs move in general and even if they reach their lowest levels, the primary task is to exploit this movement in the best way possible.”
Finally, regardless of the form that markets take after the so-called corona crisis, we doubt that the other option of this crisis will accelerate the trend towards globalization, as it proves that the crisis is an inflation crisis while globalization is considered deflationary.
The risk was already in full swing, following Trump's tariffs and the trade policy confrontation between the United States and China that led to a fragile breakthrough. The final confrontation of trade policy between the United States and the European Union poses yet another threat to the US dollar, whether with Trump and with him as president for a second term or even without it. But the coronavirus has reinforced the dangers of global sprawling horizontal supply lines in a world that is shifting to globalization, the need for more repetition and perhaps vertical integration in supply chains and meeting internal needs, which is contrary to globalization.
We will witness a major change in behavior after this crisis, as heads of global companies and even countries take a different stance toward these types of risks. While the direct impact of coronavirus may prove a classic and deflationary effect, overwhelming political stimulus and global inflation indicate that we are close to the lowest global level of global interest rates.
