Who will win in the crisis: brave or careful traders
Who will win in the crisis: brave or careful traders?
An era always affects the behavior of traders and their trading results. Nowadays, during the increased volatility of currencies and stocks, both cautious and daring players change their potential trading results. We will tell you how in the export article Grand Capital.
Analysts around the world unanimously predict an economic collapse due to radical measures against the coronavirus. Oil prices in the U.S. were followed by a drop in the value of key indices of the country on the New York Stock Exchange. European stock indices also opened with a decline on Monday, following the negative dynamics of Asian trading platforms.
Some analysts have concluded that the global recession has actually occurred. And not only the coronavirus played a big role in it, but also problems on the capital market. We have already written about how to make money during the crisis, and now we will talk about the strategy of behavior of two types of traders in an unfavorable world environment.
It's time for the brave
During a crisis, potential profit increases in proportion to the increase in risks. In this situation, brave traders, who trade the most volatile assets, earn tens of thousands of dollars.
We have already told about a trader who has earned $38,050 in three days. He did not stop at the achieved. Working on the oil corrective bounce, March 19, 2020, he bought a contract for 10,000 barrels of Brent (BRN) at $26.37 and sold it the next day at $28.64. The profit from the deal was $22,700! You can repeat his strategy now, because on Monday the oil price remains in the same range. The most advantageous conditions are presented on the MT5 account.
How to earn $4 650 in 12 hours without leaving home?
The market can't fall all the time - it's an axiom. And the market can't fall without adjustments. Of course, it is not so easy to catch them, but where the market falls significantly - it corrects strongly. The price movement downwards is like a ball thrown from the stairs. The ball hits the stairs, continuing its downward movement.
Ac, one of Grand Capital's clients opened a deal to buy the EUR/USD pair at 1.0652 at 21-00 (Gmt+3) on March 19 and already at 9 am on March 20 recorded a profit of 155 points. The deal was opened in three lots, the client used leverage 1 to 500, so the deposit for him was only $639! It is easy to calculate that the trader earned $4 650 while he was asleep.
What should we do to be careful?
The other type of trader is careful. They rely on long-term deals and are less determined than their "short-term" colleagues, ready to take risks. They know how to wait for their time in the era of crises to buy an asset as cheaply as possible and sell it on the rebound. Most of these traders reduce their activity in forex during extreme currency volatility. However, CFDs on stocks and energy resources are becoming more popular with them.
One of such assets is the above-mentioned Brent oil. Its unpredictable volatility in the range from $19 to $30 does not allow cautious traders to be sure of short-term gains. However, based on history, cheap oil is a temporary phenomenon, and its price will return to its recent level of $60 in some time. And it is not a question of a distant future, but of the next year.
Some of our clients cover 100% of the transaction margin with their money to avoid risks. At the same time, they hold a "shoulder" on the reserve, in case the oil reaches the bottom, such investors will get a better average price for the contract.
In terms of timing, as opposed to risky transactions, the terms are calculated in months. For such transactions it is more profitable to use Swap Free accounts, which will allow avoiding daily swaps.
For those who have just started trading in Grand Capital, it is highly recommended using the 40% deposit bonus. This will reduce the risk of losing your own funds and help increase your profits.
For both the brave and cautious traders, the most important thing is to keep a close eye on the news and prices of all available instruments.