Good afternoon, everyone is concerned about what is happening in the world. If you follow the news about the fashion industry, it becomes clear why there were these fluctuations of the market .I don't think it's possible for someone to do this artificially.
Experts have warned that as a result of the collapse of the deal and the price war between Russia and Saudi Arabia, the volume of production may exceed market demand on a scale never seen before. The situation in the markets is complicated by the developing coronavirus epidemic in different countries , which puts national economies at risk.
You can gauge market volume by looking at traded volume under community outlook tab. I've been collecting data for 2 years about that. When i started traded volume was around 150 K lots. In 21. feb. this year it reached it max with 2 mil lots and then it started to drop. Traders were closing positions. Right now its been 3 weeks since that maximum and the volume is 680 K. Take a look at EUR/USD and USD/JPY on 21.feb when volume started to drop.
World markets in recent days have shown an extremely high incidence of coronaviruses and severe restrictions on the prevalence of infection.
The amplitude of fluctuations in stock markets is at record highs. The American 'fear index' (VIX) on Monday managed to update the highs in history. That is, this was not observed even in 2008. In just a couple of months, global stock markets lost a quarter of capitalization (according to MSCI ACWI).
It is extremely difficult to find the bottom of the fall in the case of high volatility. Today's bottom can become tomorrow 's peak, and Vice versa. Don 't give in to emotions , stick to the chosen strategy and act coolly and deliberately - the best recipe. At the same time, I would not recommend making transactions with margin lending, closing all transactions with leverage, since in conditions of high volatility, these transactions can lead to an irreparable drop in the portfolio
Negative market sentiment did not even change the actions of the Federal Reserve System, which promised to intervene in the short-term lending market in the amount of more than $ 1.5 trillion on March 12 and 13, and also expanded the program for the purchase of government bonds. Investors are frightened by forecasts of weakening global economic growth as a result of radical measures taken around the world to curb the spread of coronavirus.
The answer to the question 'where to run' during a market panic is simple: don't run on a slippery floor. Especially when this gender is in the blood of those who succumb to momentary emotional impulses. There are many would-be traders who use leverage to try to grab luck by the tail. All brokerage firms are littered with their corpses at times of severe corrections.
To prevent this from happening to you, before you put money on the stock market, whether it is a brokerage account or a collective investment, you need to do your homework and spend at least a few hours studying what happens to the asset classes in which you are going to invest. It is desirable to determine the investment strategy, goals and horizons before purchasing the first security.
The modern world economy must not just change - it must be fragmented. Simply put, partially collapse, partially close within large states and interstate unions. This is not due to this particular collapse of the real estate market in the United States, or even because of the likely collapse of the dollar. The reason is that the world state did not take place.
I do not think that the current collapse of the market can not be profitable for ordinary people. Most likely, this is an artificial phenomenon, and I do not even assume today how it will all end for us.
The whole idea about fluctuations in the market being caused artificially is plausible. There are sometimes when the market is stable and then within a few moments things change drastically that leaves us shocked sometimes. Maybe it is a regulatory measure to control how much people gain form forex.
The market has to fluctuate. The market is affected by a lot of factors.These factors are influenced by people because it is people that are involved in them. People have changing interests and when they change then the market is boung to be affected. If someone is intentionally causing fluctuations in the market then who knows.
The fluctuations in the market cannot be caused by a single person or artificially as you are implying. You forst need to find out what may cause the market to fluctuate then find out in the news if those areas have reaaly been affected to the pont that they have interfered with the market.
FX volatility like this is the best time to trade. I had been out of the markets for a few years. the movement in currencies got me back into the market.
People get scared, they run to mama. So for the short term, the dollar and the yen rise. The news gets less dire, jump out of the market. and when (if) optimism comes back, then hop back into undervalued currencies. The dollar is headed for a drop, but don't sell until it becomes obvious. then stay out of the markets until the next crisis. They come every few years.
I don't have the time to trade consistently, but when I see what started happening in Italy, it is obvious that selling a few contracts of the euro and GBP was the thing to do because those currencies would fall against the dollar. Now I am out, and will wait for the dollar drop that is sure to come in a month or so. maybe less.