I’m just wondering, how was the Forex market back then? I started trading back in December 2012, when BOJ started to print bills. This year, a lot of major news will pop up, creating volatility to the market, which is of course positive for the traders (not so much for the rest of world XD).
But I am pretty sure that the market will one day calm down, and I plan to trade for quite a long time. Just wondering, for those who have traded for years: How is the fx market before the crisis? Was the market easier to trade (easier to predict the movement)? Or was it tougher because there wasn’t that push volatility, aka opportunities to make money?
The only reason why I want to ask this question, is simply because I worry if there are no dramatic news around the world about these western countries (including Japan), there won’t be enough swings and volatility to make money.
So… what was it back in 2009? Were the swings intense enough to make money? As far as I know, the easing of different government were not as intense are they are now.
Why worrying about an event today that might turn the market to one side when tomorrow another one will occur turnig it to the opposite direction. Events don’t turn market, interpretation and panic of the event does. Remember that. It might occur a tremmor but maybe traders are not affraid and bothing might occur.
2009 did not have swings as such. The world was still crumbling. You can go back that far in your MT4 and see how it all happened.
Also, Japan have been printing their notes for years, and have been quite vocal about it. They say almost immediately after they do it that it has been done. They have a directive from their government to do whatever they think is necessary for their economy. It just isn’t working.
The Swiss National Bank has the same policy, however they state a bottom limit for their Swiss Franc of 1.20 Euros. Just check out the EUR/CHF charts on weekly view. You can see their policy decision after July 11 and the flatline at 1.20 soon after they “manipulated” their own currency. They were 1.63 immediately prior to the GFC. In terms of “manipulation” the bank was ordered to buy whatever it takes of Swiss Francs to remove the money from the market so its price increased
Thanks for replying! Since there wasn’t huge swings as we see today, were they big enough no make money? Apparently, the price action was a lot more predictable…
Volatility will always be present in the FX market. You just need to look at more currency pairs and across different time frames to spot for trading opportunities.
Recently all the JPY pairs displayed strong trending momentum due to the monetary policies initiated by the new Japanese Prime Minister Shinzo Abe. But you do not need such strong trends to profit from the FX market. You can also play ranging markets. You must have your trading plan in place to guide you on how to approach the market and trade accordingly.
Yes the market will for sure calm down and the crisis end. There wasnt that huge rush so ppl were not aware even last year. Now with quite a splurge people have become more into the business and huge flow of cash has come up.