Online trading

Strategist reveals e-commerce secrets any South African can use

Fred Razak, CMTrading’s Chief Trade Strategist, recently arrived on South African shores to participate in a free trading seminar to enlighten ordinary South Africans on potential online trading offerings to generate additional income.

Razak shares some ideas about the modern business environment discussed at the seminar.

We live in a very volatile economic environment. The Russian-Ukrainian conflict weighs heavily on world economies. Unemployment is high and fuel prices have skyrocketed. Additionally, the US economy has contracted and is affecting global markets, and the exchange rate of the dollar rand is fluctuating rapidly. Just because the data doesn’t necessarily reflect that we’re in a recession doesn’t mean we aren’t already in the middle of a recession.

So many factors are fueling the structure of the post-Covid economy. And millions of people feel the stress. But I worked on Wall Street during the global financial crisis of 2008 and continued to trade the markets through various booms and busts, and one thing I can say with absolute certainty is that during any crisis , there are always huge opportunities for those who can see beyond the dark times.

Sometimes it’s hard to see the wood for the trees. But it’s never just a black and white case of right or wrong. There is a much wider spectrum when it comes to economics. Yes, some companies do not recover from recessionary climates. But there are also opportunities for new companies to enter the market. There will be chances to capitalize on businesses that “go on sale” during the recession. And ultimately, no matter what, markets always bounce back – even if it’s not immediate.

There are positive notes in the crisis if we know where to look for them. After going through the dot-com crisis in 2000 and the credit crunch crisis in 2009, then COVID, we see that history is repeating itself. Markets will always boom and bust and then boom again. It is a self-perpetuating cycle.

The current climate should not discourage anyone looking to get started in e-commerce. It is an opportunity to capitalize and anticipate the next recovery. It’s always important to remember that money never goes away, even during tough times. Money simply moves.

Similarly, if you “relocate” financially, you can take advantage of the markets. For example, gold is generally considered a safe haven. Thus, investors will put their money in gold in a recessionary environment. Gold will then appreciate over time.

And while other things may go down – for example, FAANG stocks (Facebook, Amazon, Apple, Netflix and Google) – there will be more opportunities in gold. The pendulum will always swing one way or the other.

If we are looking at the current state of Bitcoin trading and cryptocurrencies in general – which have recently seen a significant drop in value – it is important to look at the demographics of those who have invested in crypto.

People in their 40s and 50s typically hold portfolios in blue chip stocks because they are less volatile and growth oriented. This demographic group is primarily concerned about retirement and does not want to take risks.

Conversely, if you consider the twenties to thirties demographic, they invest much more aggressively in cryptocurrencies. And in the next twenty to thirty years, this demographic will dominate the investment market. If they are already engaged in cryptocurrencies, it might only be a matter of time until the world really adapts to cryptocurrencies and uses them to conduct transactions every day.

We will likely see a single cryptocurrency win the race in global consciousness at the end of it all. But back in the present, the crypto boom and bust movement we have seen is entirely natural and organic for something so new. The world does not yet know what to do with cryptocurrencies. But that will change and the pendulum will swing again.

There is never a right or wrong time to trade the markets. Just as I believe in responsible driving, I also believe in responsible business. If you educate yourself and are careful enough to trade defensively when the environment calls for it, you can turn a profit.

I would never advise anyone to put their hard earned money on the line unless they enter the trading arena with a working knowledge of how the markets work. The best way to gain this knowledge is to partner with a regulated and reputable brokerage firm that offers training, mentorship, and user-friendly platforms to help you trade with more confidence.

Anyone can trade, even if you start small. You don’t have to be on Wall Street in the digital age. Online trading has become accessible to the average person, and all the information we need is freely available. Adding value to your life and generating additional income through trading is possible. Lots of normal people all over the world do it. And even in times of crisis, you can succeed if you trade responsibly.

  • By Fred Razak, CMTrading Chief Trade Strategist

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