The economy is probably the most volatile it has been in most of our lives. It’s actually quite groundbreaking. I turn on CNBC and I see the markets continue to tumble day after day. The bailout bill has been passed that was supposed to give the market a little hope, but it hasn’t done anything. The only real good news is that oil has gone down. It even looks like it might fall below $80 a barrel today.
Forex traders are a bit scared. They’re not scared because there aren’t profit opportunities because I mentioned in my previous post that this is a recession free market. The fear isn’t of everything going down the tubes, the fear is of the volatility in the market.
Volatility is probably about the biggest killer of wealth during any sort of tough economic situations. It’s not that things are actually bad. Trades don’t really represent what should actually be happening. People are dumping trades and not exactly buying because they’re afraid that the volatility might get them.
That’s the problem, people don’t really believe the forex markets are bad, it’s just that you don’t know which side your trade is going to come out for you and that is extremely risky.
