Can Forex Trading Be A Safe Haven During Stock Market Crashes?
When stock markets worldwide crash and burn, many traders will run helter skelter. Many traders especially the newer ones who has entered some time into the extended bull run of the past few years have never experienced a stock market crash before, and will be surprised at how prices of stocks can fall faster than they have risen.
In all the commotion, can forex trading be a safer haven? Is it worthwhile to migrate to forex trading as a financial instrument of consistent income during a time of great volatility experienced during a stock market crash?
Consider these advantages forex trading has over stocks:
1. A Continuous market
Forex trading is a continuous market 24 hours a day. You can access a market to trade at any time. In that sense, effects arising from stock market crashes or up swings from other international markets has a continuous effect on prices of currencies, however small, and there are no sudden abrupt gaps due to differences in overnight markets from overseas markets.
2. Low Access Fees
Trading in forex is no longer a complete institutional game. The small time trader can access a forex account and start to trade with as low as $25. Check out established forex brokers – they have different types of accounts that meet your needs as a trader.
3. Trading Platform inclusive in most accounts
Within the trading platform provided for you as part of your trading account is a charting interface that allows for you to track your forex trades by means of charts , and can take your orders at the same time. There is no need for you to trade blindly without a live chart interface.
4. Trading to your own preferences
The current crop of currencies and currency pairs provide for day trading and swing trading opportunities across multiple time frames. You can be a day trader in one currency pair and still be swing trading for a longer period for another currency pair, tailoring a trading mix to your own preferences.
5. Easy liquidity
Currency markets are always liquid – you can sell or buy them at split seconds of giving your orders. Trading volumes are important in stocks and shares and you may end up holding some stocks that are illiquid or when volume shrink during stock market crashes and there are no buyers unless you bail out at heavily discounted prices.
Can trading markets ever be “safe”? There is always risk trading in markets, whether it is forex, stocks and shares or futures and commodities. Have the mindset that you are a trader in the forex markets and that trading forex is a business. When you have that mindset, you will seek to apply the best business practices into your forex trading- including the use of the best trading systems that have consistently outperformed the markets, the importance of stop loss and money management, and the power of re-investing as you scale in and out of trades.
April 14th, 2010 at 04:53
Cheers very much, I have found this article very nice!
April 16th, 2010 at 13:12
I do exactly the same thing. I don’t blame you for not commenting if you think you’re not going to add something new to the discussion.
April 18th, 2010 at 19:21
Precisely ideas which i was searching for. Nicely put as well.
April 19th, 2010 at 17:48
This is my second visit to your website. We are starting up a new initiative within the identical market as this web site. Your blog offered us significant information to work with. You’ve done a wonderful job.
April 27th, 2010 at 09:20
Good post, I can’t say that I agree with everything that was said, but very good information overall:)
May 1st, 2010 at 15:41
I enjoyed checking out your blog today and I will be back to check it more in the future so please keep up your good quality work. I love the colors that you chose, you are quite talented!
May 3rd, 2010 at 01:11
Hey can I quote some of the material from this entry if I link back to you?
May 3rd, 2010 at 20:31
lol a lot of of the responses most people enter are a little out there, there are times i think about whether they really read the posts and reports before leaving a comment or whether or not they take a moment to read the title of the blog post and prepare only the first thought that drifts into their heads. in either case, it is really nice to browse keen commentary every now and then rather than the same, traditional oppinion vomit that i oftentimes see on the internet
May 4th, 2010 at 03:45
I seen this blog when I was doing a Google search. Thanks for the good read, I look forward to reading more in the future.
May 4th, 2010 at 10:22
I have been looking at at Apple and Goldman Sachs primarily. The last Goldman fall helped me make a lot money with my puts but I kept Apple for the longer term, I think it has longer term potential. Thanks for your revealing articles and please wirte more.
May 4th, 2010 at 11:02
I have been betting at Apple and Goldman Sachs primarily. The last Goldman fall helped me make a lot money with my puts but I retained Apple for the longer term, I think it has longer term potential. Thanks for your informative posts and keep them coming.
May 4th, 2010 at 11:07
I have been looking at Apple and Goldman Sachs principally. The recent Goldman fall helped me make a lot money with my puts but I kept Apple for the longer term, I think it has longer term potential. Congratz for your advisory posts and please wirte more.
May 5th, 2010 at 06:26
That is interesting point of view
May 5th, 2010 at 18:56
I have been betting at Apple and Goldman Sachs principally. The recent Goldman fall helped me make a lot money with my puts but I saved Apple for the longer term, I think it has longer term potential. Thanks for your advisory articles and keep them coming.
May 6th, 2010 at 01:09
It is just exactly as you said.
May 7th, 2010 at 00:55
Thanks lots, I have found this info very good!
May 7th, 2010 at 02:53
Awesome article you have got here. Will keep coming reading these good articles you are going to write. Maybe you want to check out the commodity brokerage website.
May 8th, 2010 at 13:48
Hi,this is Gracie Derbacher,just identified your Post on google and i must say this blog is great.may I quote some of the writing found in this blog to my local people?i am not sure and what you think?anyhow,Thank you!
May 9th, 2010 at 03:25
Man what a week for the markets! I have been trading for over 20 years and have never seen the market take a dive like this week. I hope the investigation shows what happened. Funny thing though, I thought there were circuit breakers that suspended trading for a bit to let the markets settle down after a large point drop.
May 12th, 2010 at 01:06
Love the article. Keep up the good work! Thank you!