Is Forex still reliable during COVID-19? Is it safe to trade?
June 1, 2020
Many people have asked me these past two months if it’s a good idea to trade during these difficult times.
The answer is Yes and No.
If you are already a trader and you understand the aspects of technical analysis.
Technical analysts or price action traders are used to big movements that happen almost every month; either from positive/negative news on an economy or positive/negative news releases that are out during the week.
If you are familiar with our previous articles, you know that we firmly believe that as traders the only thing we can control is our risk. The market can do what it wants any time it desires.
Therefore, if you are sticking to your trading plan, entering high probability setups, with a great risk management strategy, your trading will not be as affected as you might think.
What covid19 has done to the markets is make it more volatile.
However, seasoned traders could take advantage, by entering the same trades they always take, knowing if they are right, their trades would reach take profit faster than on normal days.
Furthermore, experienced traders could use this free time from quarantine to upgrade their skills, improve their strategies, to become better traders.
If you are a person that wants to enter the market thinking they could make a lot of money betting on the rise or fall of a certain currency.
Many people have asked me how they could buy the Chinese currency after knowing that China was able to control the pandemic outburst in record time. Why? because People believe that since China is opening up its economy faster than the rest of the world, it would result in the rise of the Chinese currency.
So for all the people that want to learn how to trade, you can take advantage of the time you have in quarantine, to learn how to trade properly and to practice all the knowledge that you will gain in order to become a successful trader in the future.
One of the main advantages of technical analysis is its ability to cancel out all the noise that lies in fundamental analysis. Price action traders simply react to what price is doing regardless of the reason.
Covid-19 or any other crisis won’t affect seasoned traders as they are fully aware of the power their trading plans have over an extended period of time.