Learn more about Forex Trading when the Stock Market Declines.

Posted on January 7, 2008
Filed Under Forex Trading |

imagelight071100003.jpgTo all my readers investing/speculating the stock market, it may be time that you start to take a serious look at the Forex Market. I try to avoid making overall market prediction. But it seems to me that the Stock Market is heading for further decline in 2008. Unless you are into shorting (selling), 2008 may not be a profitable year for people speculating /investing in the stock market. Before the end of 2007, there are many articles that talked about how 2008 is going to be a tough year for the stock market.

These people may be correct in their prediction. You just need to look at the result of the first trading week for the year. Dow Jones fell another 256 points, probably one of the worst first trading week of the year in many years. Nasdaq also fell 3.77%, the biggest point loss in a single day for the index since the market reopened for trading after 9/11. To make matter worse, we are only in January – historically the most optimistic month of the year.

There is simply too much negativity. Consumer debt keeps surging with the help of rising oil price. Housing woes is only starting to riddle its effects on major financial institution and begin to impact the broader US economy. Last Friday jobs report tanked the market and brings up recession talk. When the market believes and is convinced that the risk of US is for real. The market will continue to fall further.

Under such scenario the US dollar is likely to fall as speculators anticipate a series interest rate cuts from the Fed. The only consolation for a weaker greenback is US products become cheaper and more popular overseas.

With so much uncertainty in the stock market, investing/speculating in the Forex market becomes another better option. This is not to say that the Forex Trading is not without risk. In reality, you could lose your pants in Forex Trading if you don’t know how to control risk.

Comparing with the stock market, Forex market has no such thing as “bull” or “bear” market. In Forex Trading, you could make money in both directions. In the Forex Market, there is of no concern whether the economy is booming or in a recession. For stock trading, most of the profits are usually made when the economy is booming. But we all know that the economic cycle is cyclical – all things that go up must come down, a scenario that we are facing right now. This is not the case in Forex market. Regardless of how major economies are performing, currency exchange rates are always fluctuating, and this in turn will provide trading opportunity for traders to gain profit. You may read more about the advantages of Forex Trading HERE.

With the current anticipation of the stock market downturn, it is only time that you should take a serious view of Forex Trading.

Cheers, Kampai, Proscht^^!!

Comments

2 Responses to “Learn more about Forex Trading when the Stock Market Declines.”

  1. Seeni J G on January 7th, 2008 4:06 pm

    Great Stuff Joon,,,thanks for sharing and dropping by :)

    Best Wishes,
    Seeni

  2. Gwen on January 10th, 2008 2:16 pm

    Very analytical and informative information. Will definitely be your regular reader.

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