Opinion piece – Coronavirus: A Trader’s Eye View

Daniel Kibel, Founder and Director of CM Trading shares his insights into trading in these times

These are trying times indeed. Following President Cyril Ramaphosa’s coronavirus address on the 15th of March 2020, there’s uncertainty on all fronts; with schools being closed, public gatherings severely limited, sports events cancelled, travel bans officially in place and the economy suffering as a result.

Global markets are under strain. It doesn’t matter which market you look at right now, they’re all effected by the economic climate. It’s simple cause and effect.

The butterfly effect the situation is having on people’s ability to make a living is extraordinary. But all is not lost. In the midst of the apparent darkness, there is light to be found in the strength of the human spirit. Humanity has the innate ability to persevere and come together in times of crisis, and even to find opportunity behind the fear and uncertainty.

“Opportunities multiply as they are seized.” – Sun Tzu

Sun Tzu’s “The Art of War” is a book that many business leaders use as a strategic guide. And within this famous tome are many principles that, if applied wisely, can be of great help – both in life and in business situations.

One of the simple but striking principles Sun Tzu lists may be of particular importance right now: “Opportunities multiply as they are seized.” In the midst of all the unpredictability, share price crashes and forex fluctuations, a whole host of traders are capitalising on the situation, and as Sun Tzu so poignantly suggested, opportunities do seem to be multiplying rapidly.

At CM Trading, we’ve noted a heavy upward curve in investment as traders hear opportunity knocking. It’s a given that when prices drop extensively, a lot of people can – and do – capitalise on that. Some make money as the Dow Jones goes down. Gold, on the other hand, has flown up into the 1500s-1600, and certain buyers and sellers are making extraordinary amounts of money on the precious metal, which is often seen as a safe haven for investors.

Ultimately, within this crisis, there is potentially an amazing silver lining for traders. And there are a lot of people in isolation around the world, so more casual traders are also spending more time reading up what’s going on and investing. The trading environment is currently buzzing. There is always a “BUT”, though. And it’s definitely worth mentioning.

Two sides to every coin

When the market moves at its current pace, huge levels of volatility will be experienced. Chances are, you’re either going to make a lot of money or you’re going to lose a lot of it. It’s unlikely for anyone to be somewhere in the middle right now.

What we’re seeing currently is a trend of higher risk investment with much higher potential gains. And yes, even in less turbulent times, trading still carries risk. But risk at the moment is extremely high with equally high gains. So, while some people are seeing remarkable returns, others are losing enormous sums.

There simply is no crystal ball when it comes to trading. There is no right or wrong answer. But information can keep you ahead of the curve. While the opportunity is still at its peak, the best we as traders can do is stay informed.

We need to be keeping our fingers on the pulse and paying attention. If we keep clicking refresh on those webpages, opportunities can, and will present themselves.
And CM Trading offers individuals the chance to invest themselves, taking full control of their personal financial choices.

That’s exactly what it all comes down to: choice. You can take responsibility for your financial destiny if you are courageous enough at this juncture. This could be a life-changing opportunity. The beauty of a market that acts like this is that you can go out and trade at any time. And you can trade a choice of so many different things.

Stay informed. Watch the markets. To start your journey of learning and discovery in the world of trading, head over to CM Trading’s official website and open your live trading account today!

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