After A Stock Market Crash - Cash May Be King But Forex Trading Still Brings In The Income
- ridhi bhatia
- Jan 31, 2021
- 2 min read
For some people, the only financial instrument they have ever traded is stocks and shares. Anything else to them belongs to the dangerous genre forex signals. In a way, they are correct in their thinking because all things unfamiliar do pose some difficulties; we do sense some discomfort in our hearts working with the unfamiliar.
This fear can easily and quickly turns into extreme anxiety when the stock market crashes, because many are new to the stock market game and have never ever gone through any semblance of a market crash or a collapse. All they ever know is to buy a stock at the low, hold it as it rides its way up in price and sell it off after a few months. For some it is holding the stock on and on...so that it is just all paper profits, without selling!
A day ago, fear was written on the faces of many stock market traders and investors as millions of dollars were wiped off the market capitalisation of the major markets of the world. To them, with the stock market drop, their source of additional income was all gone. For some, their capital would have been wiped off if they had just got on the bandwagon of stock market investing or trading the week before.
Admittedly, it is a universal understanding that in turbulent times like a major market collapse, there is always a flight back to quality- where traders will seek to move their capital into the blue chips or more established shares that will generate them a dividend, and are more resilient in a turbulent market economy. Others will subscribe to the belief that "Cash Is King", and will just liquidate their shares and hold their capital as cash.
But for a special group of stock market traders, any stock market crash will provide them a golden opportunity to utilise their capital for trading another financial instrument that will escape unscratched from the vagaries of a market collapse.
That financial instrument is forex or currency trading.
Irrespective of any stock market collapse, the forex market continues 24 hours every day without fail.
Gone are those days that only a big time individual or institution such as a bank can only trade the forex, now every private trader or investor can trade the forex with as little as $25 with an established forex broker, who also provides you with the trading platform best forex signals. More interesting is that you can put your trading skills in the stock market to use very quickly after learning some special nuances peculiar to the forex market.
So where the stock market has crashed and burned, another financial instrument is available for the trader who is able to seize the opportunity, and to create a solid stream of income for himself adopting forex as his next trading vehicle. For these, the exciting world of forex trading beckons, and with that the prospect of great wealth if they can learn how to trade and capture the profits consistently and confidently.
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