Forex Opportunities in Isolation
|Uncertainty in recent times
With hotels, bars, restaurants and retail outlets deemed ‘non-essential’, closing across towns and cities across the world, streets that we see in the media are reminiscent of ghost towns in spaghetti western movies.
Most Governments including the US, UK and many across Europe and Asia have implemented preventative measures to stem the spread of the virus as death tolls and confirmed cases on the rise.
At the time of writing the Coronavirus in numbers:
Total Cases: 347,244
Total Deaths: 14,943
Total Recovered: 99,811
Territories Affected: 192
Among other measures contributing to ghost town like scenes include bans on mass gatherings such as sporting events, concerts as well as closures of cinemas and theatres. Travel has been severely restricted with flights cancelled all over the world as the hotel and hospitality industry takes a hammering.
Many Governments have called for lockdowns and for anyone who has been in contact with a person showing symptoms, to quarantine for at least 14 days at least.
Working from home
Perhaps the biggest impact on our streets is that non-essential travel is down. There is a clear void left by would-be commuters and school goers with roads, train stations and buses virtually empty.
Many employers have had no choice but to ‘close shop’ to prevent any potential spreading of the virus. People who can have been encouraged to work remotely by UK Prime Minister, Boris Johnson.
Those who are able will be working from home, a dream for some but a potential nightmare for those who are self-employed, in the retail sector or dependent on the footfall generated by tourism. Governments have vowed to support peoples with ‘Mortgage holidays’ being introduced to the UK where payments will be frozen for the next 3 months. The UK PM has also vowed to cover 80% of employee wages.
As more and more people are being told to self-isolate, how can we make money whilst being at home?
Isolation Opportunities
Markets are particularly volatile at the moment as people sell off stocks and shares as they look to turn their assets liquid in times of panic.
As more and more employers are sending staff home, how can we make money from the comfort of our own homes?
Trading CFD’s
With all the negativity in the market right now, with infrastructure, logistics and jobs heavily affected, there are trading opportunities out there. Asset classes across the board have been hammered by the ongoing global pandemic.
By trading CFD’s, traders can enter and exit the market quickly, capitalizing on volatile market movements. By going short on stocks and currency pairs, traders can turn a profit when the value in a market goes down.
Short term trading on Forex pairs is a fantastic way to make gains in these unpredictable times.
Many commentators are saying the NOW may be the best time to start investing in an uncertain currency market. What we know is that when markets dive bomb, there are 2 things traders can primarily do.
1. Short currency pairs.
When markets go up, they tend to go up by the ‘escalator’. This is a gradual upward movement akin to a staircase. When markets go down, they tend to gown down by ‘the elevator’. In other words, markets fall about three and a half times faster than they go up. This means traders can make extremely quick profits in a short market with limited risk.
2. Make use of divergence signals and indicators
Identifying the time to enter markets is key when entering a short trade. As the markets continue to plummet, it seems that there is more downturn yet to come with press releases each day advising of what people should do to stay safe.
There are many signals and indicators that can be used in platforms like MT4 such as RSI and Bollinger bands.
Indicators are used to to help traders find areas of divergence. Divergence is when the price of an asset moves in the opposite direction of a technical indicator like an oscillator, or is moving away from other data trends.
Divergence signals momentum with a possible trend or signals a reversal i.e when a trend is almost over. A visual discrepancy between price and indicator is known as divergence.
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Utilise stop losses and take profit whilst trading
In volatile market places, it is important to make use of platform features to assist you when involved in open positions. Stop loss and take profit features allow traders to set a profit they would happily take and a loss they would be willing to accept should the market take a drastic turn whilst away from your trading computer/device.
SL’s and TP’s are particularly useful features when trading volatile cryptocurrencies as well as trading in times of uncertainty such as the ongoing COVID-19 pandemic.
Forex Affiliation
Arguably the easiest way to make money whilst stuck at home is Forex Affiliation. Simply advertise a broker on your social media channels or through an email contact list and each time a new trader signs up using a unique link and trades, you make a profit.
There are plenty of brokers out there which offer such packages but look for one that most benefits you and offers a generous commission. Most would consider around $4 per traded lot ‘generous’. Look for a broker which will help you with your advertising campaign such as having access to an exclusive affiliate executive.
Analysis and News
The markets are moving but are you moving?
Keep an eye out on the latest press releases from around the world as there are new pieces of information coming onto our television screens and airwaves by the hour as the uncertain future of when things will be back to normal remains to be seen.
A general rule of thumb is that the more you hear about a certain country in the media, then the more volatility there will be in the markets for said currency. A good tip would be for to see which countries you begin to hear about more and more and keep an eye on chart movements.
By using a range of news and analysis you can help to build yourself a picture of when to enter a market and whether to go long or short.
Don’t rush into markets without doing your own research.
Final thoughts
In times of uncertainty, there are ways to earn additional income whilst at home. Using a healthy blend of trading strategy and marketing it is possible.
By advertising a brand using a unique affiliate link traders can profit by a simple marketing campaign. The more traders you refer, the more commission earned.
Short trading Stocks only a few weeks ago would have gained many a small fortune. However, this economic downturn does not seem to be slowing down so it seems more trading opportunities remain.
Keep well informed and up to date with the latest market news at EagleFX.
Trade Stocks, Forex pairs, Indices, Metals, Energies and Cryptocurrencies for as little as $10.00.
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