Taking advantage of the opportunities in the market
We have seen massive market movements in recent weeks stemming due to the COVID19 pandemic which shows no signs of easing.
Since early March many early investors shorting assets will no doubt have seen a healthy return on their trades as markets fell to all-time lows across the globe.
Asset classes across the board have seen valuations brutally down pegged ever since Black Monday, on the 9th of March. The day saw the biggest market downturn since the great financial crisis of 2008 where Mortgage-Backed Security loans and some Wall Street big wigs were to blame.
Now we are seeing something quite remarkable, nothing like the generation of today have ever seen or experienced before. As the virus continues to spread and kill, Governments have put in methods to help stop the transmission of Coronavirus.
Lockdown is here and it seems to be the new norm for the foreseeable future. Perhaps the most recent time to assimilate current times to would be rationing during World War 2. We are seeing shelves cleared in shops and stocks falling as investors look to liquidate assets for cash.
Bear Opportunities
There is a silver lining to all of this doom and gloom which may not yet be obvious to most. Day Trading on CFD's!
There has never been a better time to short Stocks and Indices as the bears continue to keep a tight grip on the market.
You can trade on more than 200 asset classes from Stocks and Indices to Metals and Forex at Award-Winning broker EagleFX.
We have seen short terms recovery periods but as a whole, the DOW Jones is down almost 10% with Donald Trump and other world leaders looking at ways in which to support their citizens for cash flow as unemployment rates rise and businesses close their doors.
Market sentiment took a whack on Friday as the US becomes further gripped by COVID-19 with a further 900-point drop.
Low Sentiment Creates Chances
Although market sentiment is low, there is MASSIVE opportunity in the markets right now. Throughout history, we have seen stocks bounce back and economies recover.
The US is moving forward with a Government Aid bill which will see a welcome cash injection of $2 Trillion into the US economy to help those most in need. The bill will include a monthly check for employees unable to work, hospital funding and to help businesses stay afloat during these uncertain times.
With quantitative easing and aid bills from Governments, we are seeing countries rally together in an effort to deal with these unfamiliar times.
Profit
So how can you as a trader make gains from this otherwise bleak situation?
With great market volatility comes unrivalled opportunity. Day Traders can capitalise on market movements by a variety of ways. A big way to profit in these times would be scalp trading.
Scalping is a method of entering a market and closing out a quickly with the aim of making a profit. By trading with leverage, profits can be further magnified. Scalping is a particularly useful strategy in volatile markets as Traders can open and close positions in line with rapid market movements.
You can benefit from up to 1:500 leverage on over 200 tradeable assets at Award-Winning Broker, EagleFX.
Have instant access to tradeable funds thanks to lightning-quick deposit methods. Enjoy same-day withdrawals and start trading from as little as $10.00 today.
Trading from Home
During current times of lockdown, people who can work from home, remotely are doing just that. But what about the ones who can't? Taking up something new such as day trading could be a great way to start making some profit out of uncertain times.
Not only will trading from home be a great way to spend free time which there seems to be more and more of recently, it's a fantastic way to learn something new. We have an array of news available to us online to make the best-informed trading decisions.
Do Your Own Research before entering markets!
If you are looking for a new broker or indeed, your first broker, it is advisable to look out for some key broker features before depositing.
Account Costs
Look for a broker which doesn't have any ongoing account costs where there are set parameters. I.e. deposit $1,000 for leverage up to 1:500.
There are many brokers out there which are free to join with competitive trading conditions.
Leverage
The higher the leverage the faster action you can have which is especially useful in scalping or indeed long terms trades which have less liquidity. Having adjustable leverage would be more beneficial for the trader.
Assets
Consider if the broker offers enough assets for it to make trading worthwhile for you. The more variety the better. Gold and Cryptocurrencies have been a relative safe-haven of late but the more tradeable assets available, the more opportunities a trader has.
Lot Sizes
The smaller the lot sizes the smaller your exposure. If you are new to trading then consider micro-lot trading to get started. Going up to the 1,000-lot mark would be considered for more experienced traders.
Commission
Consider the commission charged by your broker especially if opening many trades. Somewhere between $4 to $6 commission per traded lot is a ballpark industry average.
Deposits and Withdrawals
Having a variety of deposit methods is desirable. However, consider using Bitcoin when choosing a broker. This is a super-fast way of getting tradeable liquidity in and out of your trading account. By using BTC you can ensure you will have same-day deposits and withdrawals.
Customer Support
We all need support in some way whenever we use products and services. With the Cryptocurrency market operating 24/7 there has never been a greater need for round the clock, reliable support. A broker which is always available will give a trader greater conference in the broker and can trade with peace of mind.
Brand new broker EagleFX offers leveraged trading on over 200 assets including Forex, Stocks, Indices, Cryptocurrencies plus much, much more.
Join their exclusive Affiliate programme and get even more money for referring friends, family and existing online followings. Gain access to your very own affiliate executive to assist with your marketing campaign and start earning more, now.
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This
article was submitted by EagleFX.
