Is the current economic crisis good, or bad for Trades and Investments?

Welcome back, Traders!

Look, we know that the title seems silly-but it’s a genuine question, with the cost of living crisis coupled with inflation rising more now then since we started to record inflation in the UK, Europe and U.S particularly- we know people that work 9-5s and full and part time jobs are going to struggle but does the same thing affect traders or does the unpredictable market and ups and downs of currency give us a unique opportunity to make profit?


Why are we seeing current trends?

The world is currently in crisis, coming out of 2 years of Coronavirus pandemic with governments having to step up to help the masses who couldn’t work survive- the money was always going to have to be recouped somehow. Everyone has their own opinions on this, but we think as soon as lockdowns started we could see the future having some sort of negative outcome on financial aspects.

We, like most couldn’t predict how long Covid was going to last and how much of a financial impact it was going to have on countries worldwide, so we are now seeing the outcome of the decisions governments made during this time period.

Should you invest

Investing in crisis is risky but can be rewarding! The 2008 recession caused a lot of panic with investors, which in turn made things worse- people sold investments when everything started to dip losing 30-40% on portfolios, this then caused a double dip at bottom line due to the mass sell offs. Picking a bottom is a gamble as there is never a guarantee something is going to go back up so as always we would say research and keeping your ear to the ground with upcoming announcements and news is the best way to be informed!


Trading and how to navigate in current time

Day trading is a different beast entirely, as we have wrote about before- take emotion away from the trade, make sure you set your bottom lines, take your profits at the correct times and stick to a system that works for you, the moment you start to manually trade away from a pattern you usually would- your fate (and money!) is in the hands of the trading gods and we can tell you first hand they can be brutal on occasion!

The other thing we realize is a lot of the people that come to Trading Top Ten might only just be starting their trading journey and looking to us for solid advice, so here it is-

· Only Trade what you are willing to lose

· Trading is a long term project, don’t base your abilities off one bad day (or one good one for that matter)

· A lot of people don’t care if YOU lose YOUR money, don’t follow the Instagram charlatans- remember they have either already made their money (or looking to make a ‘quick buck’ off you!)

· Create a system of trading that works for you, don’t go into each day without a strategy, 9 times out of 10 that will lose you money!


We think that the current crisis does give some opportunity to make significant wins, but with the unpredictability of the market it also gives opportunity for big loses, sticking to a strategy before you start your trades, regardless if that means you don’t enter a lot of trades for that specific day and making sure you research and look out for news and upcoming announcements will give you the very best chance of winning!

Be sure to join The Trading Top Ten Premium Ideas group, listen to our experts give their honest analysis of the markets, with at least 10 trade ideas a week giving you a chance to copy the experienced trader’s and listen to the reason they will be entering them! See here!!

Thanks for reading, your friendly Trading Top 10 team!