I think we can all agree a recession may or may not occur once every decade.
The good news is that on average, a recession lasts about 11 to 22 months, according to The National Bureau of Economic Research. They can be shorter and milder, or longer and more serious, as we have witnessed from the financial crisis in 2008, or even catastrophic, like the Great Depression of 1929. It is now 2020 and we are dealing with a global pandemic named Covid-19 which is gradually turning into another severe global recession as businesses shutdown and several cities across the world were forced into lockdown to contain the spread of the virus. A virus so contagious that even financial markets have contracted it sending the S&P 500 and Dow Jones down more than 30% since January 2020 slashing most gains from the U.S election in 2016. Let us not mention how Oil prices crashed to negative territory after Riyadh and Moscow triggered an oil price war forcing OPEC members to intervene and discuss production cuts to stabilize the price.
Let us now jump to the point. If you are trading Forex or plan to start, then this article is for you.
So why trading Forex during a recession is good?
- Forex is the only market that grants traders to benefit and profit from bearish market movements. Traders can do so by selling the base currency on a pair (Example: USD/JPY) at a high price during the crash and then buying as the market starts showing signs of recovery.
- It can be a recession-proof way to make a lot of money and survive an economic crash, but it’s also an excellent way to learn and stay familiar with current world events that tend to move currencies.
- Another thing worth noting is the fact that forex trading remains open 24 hrs for 5 days excluding Saturday and Sunday. This means that there will be plenty of opportunities to catch a good trade around the clock so you won’t have to be bummed if you miss a move.
- If you are one of the unlucky ones who have lost their jobs during the recession then make the best of it. Forex requires you to have internet connection at home, a laptop and or even just a smartphone to get you started. In other words, you have the flexibility to trade anywhere and the idea of sitting in an office 9 to 5 isn’t anymore a necessity.
Conclusion
During the course of a recession, many people go through challenges such as losing their job or pay cuts. This can be a great opportunity to start trading Forex and earn money from home. The forex market so far is the largest and biggest in the world with over 5.3 Trillion daily turnover. So, trading forex is a great opportunity to get into during a recession.
However, trading forex is not as easy as it seems and it requires a lot of knowledge. This is now a potential opportunity to be involved and start trading.
