70trades’ tips how to trade in crises
Along the year’s economic crises have come and went, bringing about instability and uncertainty on all sides of the economic spectrum. Between salary cuts, inflation, and staff reductions – it affects everyone. 70trades comes with some tips how to trade in crises if you decided to get extra income.
Since traders work intricately within the finance sector, fluctuations in the market profoundly impact them, both negatively, but also positively in some regards. Ultimately, it’s essential to keep your head about yourself and not give in to panic.
The last thing you want to do right now is a panic buy or sell your current assets for a fraction of the profits you predicted. That leaves you with neither the asset nor the potential for profit.
The world news will report at a much higher rate than usual, and for the most part, it’s not going to be positive. It is often tricky when overwhelmed by so much information to analyze the situation appropriately and find profit opportunities. Here are some tips to help you with that.
1. It is valuable to discern the difference between absolute and relative change trends
An excellent example of that is the forex market – historically, as soon as the situation stabilizes, the value of the currency tends to revert to its original state.
2. There is always opportunity within the market
Volatility makes predicting the changes harder, but with a bit of flexibility in your trading and being willing to go long or short – you can guarantee profits. You have to be ready to change your mentality to go along with the changes in the world.
3. Don’t take unnecessary risks
One of the prime trading strategies, true especially for CFD trading, but also in general – don’t take needless risks. If, for example, you’re holding out for a piece of news on which your position hinges – holding out becomes a necessary trading risk. However, if, instead, the bad news is abundant, it’s usually best to be out than in, when it comes to making trades happen. That means closing before the weekend and ideally every night to avoid big impact decisions made overnight that leave you at a loss.
4. Use stop-loss orders and alerts
These are your friends during volatile times. By placing a stop-loss during your trades, you can prevent losses, while also being able to adjust it later. Be aware though, that the only automatized part is the ordering. If an unexpected event has caused the price to drop even lower than expected overnight, it’s not going to be much use. Ideally, using alerts is preferable – so you can personally inspect the changes in the market and use your best judgment. But that’s not always physically possible, so the stop-loss is a viable alternative.
5. Hedge out some of the risks
There are ways, such as employing market-neutral CFD trading strategies, or trading in multiple currency pairs with variable volatility to minimize unwanted instability. This way, you can keep your head above the water, if you do the math right. It’s not always possible, but it’s good practice to analyze your trading strategies and figure out where the riskier outliers are.
6. Adjust your leverage
By using leverage, you can generally expect higher profits. However, it also opens you up to more significant losses, especially in a time of high volatility and downturns everywhere. By adjusting your leverage, you protect yourself from outsized losses.
7. Size your portions appropriately
In a more unstable market, your position determines how much you make but also how much you lose. During more difficult times, the focus should be on minimizing losses, so use a general position sizing strategy. A good rule of thumb is at most, having each trade risk 3% of your account.
Where is 70trades located? The headquarters of the 70trades broker is in Cyprus.
How does 70trades make money? 70trades earns with the spread, the difference between the purchase and sale price of a title.
How can I open an account with 70trades? Click the “Join Now” button at the beginning of most pages on the website.
Does 70trades use MetaTrader? No, the Broker only uses the PROfit trading platform.
What is the minimum deposit to open a 70trades account? The minimum deposit is $ 200.
What is 70trades’ maximum leverage? The maximum leverage is 1: 200 for Foreign Exchange currency trading (Forex) and 1:200 for Commodities trading.
How can I deposit to the 70trades account? The payment options accepted are bank transfers, credit/debit cards such as Mastercard, Maestro, Visa, and the main electronic payment systems.
Disclaimer and Risk Warning
Online Forex and CFDs trading involves high risk. Make sure you invest wisely and are ready to lose those investments in case of market instability.