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Why Should You Invest in Forex Market in 2020?

  • by Money Life Research
Why Should You Invest in Forex Market in 2020?

Global pandemic COVID-19 is an unprecedented health issue that has already affected almost all the economies around the world. The employees are transitioning to remote work in order to maintain social distance and lockdown protocols.

There has been a huge shift in business operations and they have exposed all the companies and stock markets to great uncertainties. This has lead to an increase in volatility across financial markets.

To accommodate these volatile markets during this global pandemic, adapting your trade plan and focusing on daily forex signals is essential to meet your investment goals. May investors are also looking for live tips in order to make quick and fruitful decisions.

We have compiled some forex tips that will give you a plan to make a good investment in the forex market in 2020.

#1. Implementing Stop Loss Orders

Since the beginning of March, daily moves between 100 to 300 pips have been recorded on EUR/USD. It is one of the accurate forex tips to execute protective stop-loss orders in order to prevent excessive losses and margin calls.

Not even during current situations but also under normal market conditions, a stop-loss order is an essential risk-management tool. A prudent trader will also try to protect gains or at least use a trailing stop to prevent a winning position to turn into losing position.

#2. Employ Leverage

Many traders employ leverage in order to maximize earnings. In forex trading, higher leverage leads to higher profits. But it is a two-sided coin so we suggest you to focus on daily forex recommendations.

It is important to adjust your leverage as per the movement of the market price.

 #3. Focus on Trade Duration

t is essential to be plugged into the latest news and track your open positions in these unprecedented times. Although for many traders it is impossible to monitor all this 24/7. That is the reason many of them are choosing to liquidate the positions before the close of each trading day.

We recommend you to subscribe to daily forex tips in order to get important tips in a single click.

#4. Equity Risk

In parallel with leverage, many traders are also considering equity investments. Many stock markets have crashed due to the global pandemic which is the reason many stocks are trading at undervalued prices. Traders who are willing to take certain risks are making investments in these undervalued shares to diversify their portfolio.

#5. Orders

There are two types of orders that are used in the forex market.

A market order that is executed immediately at current market prices.

Limit order is executed when the specified limit price is met. These orders protect you from risk as they are not triggered unless conditions are met. This saves you from market volatility.

Final Word

Covid-19 is having a dramatic effect on financial markets. Therefore it is prudent to manage your financial risk and implement proper strategies in this challenging environment


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