Currency trading in 2021 despite global pandemic
The year 2020 has been a turbulent time for the whole world. From developing countries to developed ones, each nation was going through its own war against the Coronavirus. The global pandemic is yet to be fought off despite having vaccines and new strains emerging. The financial industry took a hut and many countries saw an all-time low in their currency valuation. It is no wonder that 2021 is a hopeful year for investors. This article will shed some light on the latest issues and try to explain whether that has been a positive development in the sector. If you are aspiring to become a professional, read this article first. This will clear up confusion and provide authentic facts which will help you to make the right decisions.
Stay away from virtual coins
Yes, we are referring to Bitcoin and other cryptocurrencies. 2020 has been weird enough and Elon Mask even introduced another coin lately, the Dogecoin. All these fancy elements sound attractive but experts are wary of their potential. Many estimate that in the long run these will lose value and ultimately harm their owners. They will have no place to spend or utilize the coins. The price of Bitcoin skyrocketed a few months ago, to almost $40 thousand but soon plummeted. It then rose again, but the future is uncertain.
If this persists, shareholders of these cryptocurrencies will take the fall. If you do not want to include this additional issue, this is highly recommended to stay away. This may seem the perfect opportunity to make some money but can drastically impact your capital.
Look out for the country’s COVID situation
This is another crucial aspect that many have forgotten. While all nations are declaring emergency pandemic funds, remember the financing will not come out of thin air. Some sector has to compromise and this is where it gets complicated. The US, for example, has been struggling to provide adequate doses to citizens. Although this currency is the most stable but considering recent times it is better to stay alert. Do not compare the past year’s data to this years as it might be misleading.
Keep an eye on the major news factors and make your decisions. A similar things goes for Switzerland, a country that has gone through multiple lockdowns after making social distancing obsolete. The economy is integrally related to every aspect of the market, so make sure you read before placing an order. Explore more about the socio-economic aspects of trading by reading articles at Saxo. Keep yourself up to date with the latest economic news so that you can trade conservatively.
Stay away from the British Pound
After Brexit, the UK has been going through a lot of weird stuff. If you are not living under a rock, you should have seen news such as border guards taking meat from the burgers of drivers crossing EU borders. While this created a light atmosphere during the hardship in a pandemic, th UK is undergoing major reforms. As they are also one of the worst affected countries, their Pound is not stable either. Considering all these facts it is better to stay away from GBP at this moment. Moreover, many transnational businesses are thinking of shutting down operations there or open new offices on European soil to reduce administrative costs. Until it happens and things settle down, it is best to leave this sector as it is. We are not discouraging you, but are only explaining the potential drawbacks. As the world has been through a major catastrophe, finance is not stable.
Being a full-time trader in Switzerland, you should be extremely cautious about the global pandemic. Develop a habit of reading news and articles regularly so that you can take trades with confidence. Never rely only on the technical data, as fundamental factors are very important in the world now. Relate the news to the technical data so that you can find reliable trade signals.