Online Trading During the Coronavirus Pandemic
Contributed by FXTM
05 October, 2020
The world has overcome the initial shock of the pandemic. In some countries, lockdowns are being lifted, and consumers are adapting to the new reality. The future looks uncertain. What is clear is that the economic damage is lasting.
In South Africa, forecasts look menacing. The most optimistic scenarios include a 5-percent decrease in GDP. In 2019, this would have been perceived as a disaster! The economic shutdown has affected everyone. Today, online trading is a viable opportunity to earn a living, and the segment is booming.
The Best Time Is Now
South Africa saw its first set of lockdown measures in March 2020. COVID-19 shows no signs of vanishing. To date, there are almost 916,000 registered deaths worldwide, and the toll is growing. Given the probability of the second wave, consumers could be confined to their homes once again.
The effects of lockdown measures are more damaging than the pandemic itself. Economists and politicians have no doubt that the ramifications will last for years. The travel industry has suffered the most. All segments of the economy have been affected. Millions of people have lost their jobs, as businesses have been going under.
It is clear that conventional systems of employment are unreliable. In times like these, employees need to become their own bosses. Fortunately, foreign exchange is not going anywhere. This market has existed for centuries. Today, it is a tap or a click away.
Overview of Accessible Markets
Forex is just one of many directions in Internet-based trading. Advanced platforms like MetaTrader 5 allow the creation of broad portfolios. Clients may explore stocks, CFDs, and precious metals. The range depends on the brokerage, so this is another criterion of choice. Popular options are:
- precious metals;
- CFDs on commodities;
- CFDs on market indices;
- CFDs on stocks;
- CFDs on cryptocurrencies.
In South Africa, traders can buy and sell stocks of the biggest U.S. corporations through FXTM. Diversification is recommended as a risk hedging method. The more markets you trade - the safer it is. Your risk is thereby spread across a number of instruments. When one of them brings a loss, you can soften the blow owing to profits elsewhere.
Cloud-based servers allow you to access the system from any device. Top trading platforms like MetaTrader 4 come in three versions: desktop, mobile, and online. Web-based terminals are opened within browsers. There is a free MT4 download option for Windows, Mac, iOS, and Android.
Gone are the days when traders were stuck in front of PCs. Now, they can analyze the market and manage trades on the go. They may even program an Expert Assistant to work around the clock. This feature advises when to make trades, and it can also execute them automatically.
Another important feature is VPS or virtual private servers. These protect you against power outages and technical bugs. Disruptions may cause disappointing trade results. In areas with an unstable Internet connection, such protection is extremely important.
Choose Broker Carefully
The choice of a broker is one of the most important decisions for a trader. This company is your intermediary, as it connects you to the global foreign exchange. You may wonder if it is possible to cut out the middleman. In Forex this makes no sense, as a brokerage account opens access to the market.
The best brokers provide a range of services. They register demo accounts, giving clients a risk-free opportunity to practice. They ensure around-the-clock support and guidance. Finally, they process all payments to and from your live account. Thus, a broker may be likened to your online banker. Would you trust a shady bank with your deposit?
Be wary of companies that promise you a fortune. Forex is not a 'get rich quick' scheme. Any broker that guarantees results is a fraud. Steer clear of such crooks. The South African Forex market lacks regulation, which allows scammers to thrive.
Conclusion: Start Trading Today
Now, online trading is more accessible and attractive than ever before. With the economy in dire straits, residents of South Africa need alternative sources of income. Remote technologies like Forex allow you to monetize knowledge of finance and earn money via any device. All you need is trading skills, powerful software, and consistency. Traders who stick to their strategies, manage risks, and act rationally are most likely to succeed.
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