hi all,
i’m a newbie here.
i’m not sure whether this has been discussed but i want to know how will the economic recession and financial turmoil affect forex?
thanks. 
It has made alot of Forex traders “in the know” rich…look at long term charts over the last six months, there has been huge amounts of volitality, which (if you are on the right side of it) is a very good thing…
what do you foresee the forex market for 2009 and 2010 if the whole world goes into a recession?
anyone has info or data of what happened to forex during the last global recession?
It is true that this market has made lot of people rich. However, there are also people who have lost their hard earned money in this market for earn a lot. This market is always uncertain and cannot say where it is going to move. I do not ignore the fact that i have also earned money form this market but still going against it. This i would like to tell the new investors willing to invest their money in this market. So, that they trade this market with great precautions.
It’s a double edged sword because if you know what you are doing, volatility creates plenty of opportunities to grab some pips. On the other hand, if you are inexperienced, sharp moves like this can play with your emotions and cause you to make unnecessary errors. This can lead to big losses.
Be careful out there!!! Happy trading
Personally I think although volatility creates opportunities for making a good amount of pips it is necessary to have some knowledge and experience in trading, I mean there is a huge risk in there too, so just be careful not to lose too much�
I think what Imorgan099 is trying to say is, if you want to invest in forex and manage your own account, try to win (of course) but also, try to don�t lose too much, is almost impossible to don�t lose a pip, but when that happen, don�t get panic. Besides that, it�s a good advice, you will learn too much from that experience.
thanks guys. good advice.
does anyone have data of forex from the previous global economic recession and financial crisis?
Your question worries me. What kind of answers are you looking for? It’s so vague, I would have to say your fundamental analysis will fail you. Not trying to shoot you down, but you do realize that this current crisis will affect various currencies differently right?
YOUR question to answer my question is a good one. truthfully speaking.
actually, i’m a total newbie in forex and i was thinking of getting involved end of june 2009 after i’ve played the demo account for 6 months.
so when you asked that question, it does plug some holes in my lack of understanding in forex.
so any feedback is good feedback if it is based on true facts, no matter how much it reveals the asker’s lack of understanding.
thanks.
No one can say what is going to be the effect on the market of this recession. The economical condition of any county naturally effects the movements of the markets. However, the clash of the market in the past days has really affected the economical conditions worldwide. Worldwide businesses also affected, which has limited the income of all the business.
Most of the businessperson and individuals are facing the market recession. It has affected the employment too.
The only effect that I have observed is that it reduces the overall trading volume and activities in the forex trading market so it reduces the volatility in the market and since the profitability of daytrading increases with volatility, a reduction in volatility just reduces the potential profitability for us forex traders. Just to illustrate, before the financial crisis happened in 2008, the daily range in forex trading was several hundreds even reaching tens thousands of pips, after the financial crisis today, the range has been reduced to just tens of pips to the point that it’s almost not profitable to trade intraday. And the reason why is because the economic recession/turmoil has taken out even some of the “BIG BOYS” in the market so there is less people “moving the market” and creating volume now. We all hate the “BIG BOYS” especially when they make pips at our expense but they are sort of the “anchors” of the market and unfortunately we do need them. Without them, there will be no market.
Other than that, economic recessions or turmoils doesn’t affect us forex traders much since we can trade both ways profiting no matter which direction the market goes.
Good pipping!!
I Believe that economic recession changed the behaviour of many symbols and that is the reason why many strategies stopped working. But on the other hand now it is the best time for inventing new strategies which may work in new world.
The two, recession and financial turmoil, are not the same thing. Turmoil can be a very good thing for the trader. If a country finds itself in economic turmoil it usually means volatility – big moves to take advantage of, usually shorting the nation’s currency. Recession and general economic malaise usually mean low volatility. The moves are much more subdued but also prolonged. An advantage can be gained by trading smaller, less volatile moves or holding positions for a much longer period of time.
That’s the annoying part: having to wait ALL day for just a 20-pip movement and have to pay roll-over interest in order to hold positions over the cut-off time.