Elland Road – Encountering Market Volatility

0
(0)
<p class=“MsoNormal“>Are you trying to keep up with the
constantly fluctuating markets? You’re not alone. 2022 has been extremely
volatile and full of surprises for the financial markets due to the unpredictability
of economic and political events. </p><p class=“MsoNormal“>Whether you’re a beginner or a more
experienced trader, you’re probably struggling with making trading decisions as
you fear you might make the wrong move.</p><p class=“MsoNormal“>This article will give you a better
understanding of what happens during volatile market periods and what you can
do to boost your trading strategies. Keep reading to find out more!</p><p class=“MsoNormal“>What
is market volatility?</p><p class=“MsoNormal“>It’s a common misconception that
volatility is only about prices falling rapidly, when in reality it has to do
with any sudden price movement, including an unexpected rise in prices. In
simple terms, an indicator of market volatility is the frequency and magnitude
of price movements, whether upward or downward. Therefore, market volatility
increases when price swings are larger and more frequent.</p><p class=“MsoNormal“>It’s helpful to keep in mind that
volatility is a normal part of the cycle of online trading. In this way, you
can be more prepared to take control of your trading positions.</p><p class=“MsoNormal“>What
causes volatility in the markets</p><p class=“MsoNormal“>Volatility is often a result of
economic factors, such as financial news, interest rate changes, and fiscal
policy. More recently, a leading factor has been political developments. As
volatility reflects investor sentiment, any factor influencing investor behavior
will influence market volatility. Markets are typically considered volatile if
they rise or fall more than 1% over a long period of time. </p><p class=“MsoNormal“>The
current state of the markets</p><p class=“MsoNormal“>2022 has been full of ups and downs for
<a target=“_blank“ href=“https://ellandroadcapital.com/product-specifications/“ target=“_blank“>CFDs in every asset class</a>, including
stocks, forex, and crypto futures. Major economic and political events have
shaped the market sphere throughout the year. Increasing inflation, recession
fears, and the Russia-Ukraine conflict are some of the main aspects that have
influenced traders’ sentiment and their trading decisions. Let’s take a look at
some of the most prominent examples of market volatility this year:</p><p class=“MsoNormal“>Forex: Some of the most powerful currencies, such as the EUR, JPY,
and GBP, experienced record-breaking lows, while on the other hand, the USD has
managed to push through the turbulent global economies and is expected to go
even higher by the end of the year.</p><p class=“MsoNormal“>Stocks and Indices: The S&P 500 witnessed one of its worst
performances in decades, reflecting a bearish market sentiment.</p><p class=“MsoNormal“>Cryptocurrency: The crypto
market is facing one of its most challenging years as the uncertainty of the
economic outlook has made traders turn to safe havens rather than
cryptocurrencies. For example, Bitcoin dropped by 56% during the Q2 of 2022 and
is still struggling to remain above average levels.</p><p class=“MsoNormal“>The
bottom line</p><p class=“MsoNormal“>An essential trader trait is being
aware that online trading entails high risk as there are many factors that can
impact the markets and affect your trading positions.</p><p class=“MsoNormal“>What can you do to be more prepared?
Staying up to date with economic events is always a good idea so you can be in
a better position to understand what is happening in the markets, while also practicing
and adapting your trading strategies so you can be able to respond to any
market condition. <a target=“_blank“ href=“https://portal.ellandroadcapital.com/login“ target=“_blank“>Log in to your Elland Road trading account</a> to explore
the volatile markets.</p><p class=“MsoNormal“>Risk
Warning: Contracts for Difference (‘CFDs’) are complex financial products, with
speculative character, the trading of which involves significant risks of loss
of capital. </p><p class=“MsoNormal“>Disclaimer:
This
material is considered a marketing communication and does not contain and
should not be construed as containing investing advice or a recommendation, or
an offer of or solicitation for any transactions in financial instruments or a
guarantee or a prediction of future performance. Past performance is not a guarantee
of or prediction of future performance.</p>

This article was written by ForexLive at forexlive.com.

Go to Forexlive

Wie hilfreich war dieser Beitrag?

Klicke auf die Sterne um zu bewerten!

Durchschnittliche Bewertung 0 / 5. Anzahl Bewertungen: 0

Bisher keine Bewertungen! Sei der Erste, der diesen Beitrag bewertet.

Es tut uns leid, dass der Beitrag für dich nicht hilfreich war!

Lasse uns diesen Beitrag verbessern!

Wie können wir diesen Beitrag verbessern?