The question has to be asked about the longevity of Forex trading in the current economic climate. In our view, it has a very short shelf life as the world is becoming ever more unstable and consumers are becoming ever more frugal. What the market needs is for more volatility and a more stable, established financial system.
For Forex to survive, the world must move towards a free market system. We believe that the “system” needed is a total overhaul and clean-up of the whole financial industry. There is no point in reinventing the wheel when there is no need for the wheel.
We believe that Forex trading is like that proverbial ship which sails too close to the wind and gets tossed over the side. We also believe that the Forex market is bound to crash and burn within the next five years. In this brief piece we aim to make an appeal to all those who feel the same way as we do. As an alternative to investing time and effort in an increasingly unstable, fragile financial system, why not stay clear of this volatile market?
We agree with recent statistics that suggest a growing number of young people are delaying moving out of their own homes and paying for a larger mortgage until they get on the property ladder. This trend shows no sign of abating. We think that in due course the banking system will implode and that will lead to a lot of people losing their jobs and their ability to borrow and afford properties.
People do need to start thinking about other means of making money and of course some will choose to invest in the market by trading in Forex. Forex is highly liquid and extremely easy to trade, however the price can go up and down so we would always advise you to watch the trends before investing. It could turn out to be a big mistake!
To invest in the market you will need to set up a Forex account and this is not very difficult and it is simple to do. We would strongly advise against the use of automated trading software and this is because it is virtually impossible to predict exactly what the market will do in the future. The markets are notorious for the fact that they can be highly unpredictable and they change at the drop of a hat.
So our advice to those looking to trade Forex is to stick to using actual real-time quotes. We believe that the best times to trade Forex are when the market is still open, when it is trading slightly below the short-term support level and when it is in a resistance level. This is because the market remains liquid and the price action remains relatively unaffected.
The important thing to remember is that trading is an effective method of diversifying portfolios. You can open a Forex account, put some money in and then invest part of your portfolio in other forms of investment such as stocks. All you need to do is to invest in a low-risk, reliable, low-cost asset and the returns can be very substantial indeed.