With so many things influencing USD these days, it’s hard to figure out when the next price spike will come, but many on Wall Street will be sitting next to a TV for Jerome Powell’s speech today. Rumor has it that the Federal Reserve’s Chairman will be delivering a brutal speech that promises to cut the bull and poke the bear. As is so often the case, a strong speech with rallying promises could create an entirely different market environment when compared to harsh warnings and conflict.
Powell’s speech will expand on the comments he made in October 2018 that suggested the Fed would not end the interest rate hikes. Since then, the dollar has fluctuated on or above the correction level and now show signs of growing instability. Notably, the US is not the only country experiencing such problems. It’s all very familiar.
Is Powell pointing to another recession?
Powell’s speech begins at 20:15 EST USA at the Economic Club in New York, where he will reiterate that the Fed will discuss coming rate changes and concerns over an escalating trade war in the wake of a US slowdown.
So far, tight financial conditions, limited growth in Europe and China, and geopolitical unease are leading the way towards bitter USD market sentiment in Q2 of 2019. Some say it is a prelude and sign that the next recession is just beyond the horizon. Consumer debt has risen back to pre-2008 crisis levels in most countries, and corporate borrowing has exploded over the last few months.
People and companies are not the only ones getting buried in credit. Like last time, governments everywhere are sitting on mountainous debts with no clear plan for repaying. Hiking rates to slow down growth used to be the go-to solution, but that’s not an option for 2019 since growth is already slowing. Should we be preparing for the worst?
How to react to Powell’s announcements
The biggest guarantee in life is that “things change.” Being prepared for the future means being prepared for change. The threat of another financial crisis is not something to ignore. When stocks plummeted back in 2008, businesses fell, homes were lost, and the future seemed bleak for too many, and yet thousands of traders worldwide shorted stocks and currencies and saw their equity go through the roof. The world’s media painted a story of misery and hopelessness, but forex traders can actually benefit from a crash. Are you ready for the next one?
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Your 4-step guide to opening a trading account
Step 1: Getting registered
It's very easy to open an account with Exness. Click here to open the sign-up page in a new tab. If you want to get everything done in the next 10 minutes, be sure to have a credit card, ID, and, proof of address by your side. You can choose to open a demo account without these things. Either way, everything you need to know is here in this two-minute video. Pause the video as you go through the first three steps.
Tip: Account type depends on the amount you wish to deposit. Leverage is effectively an interest-free loan that the broker offers. It allows you to make a large investment from a small deposit. If you are looking for high profit with high risk, a higher leverage might be right for you. If you prefer slow-burning safety with lower results, then keep your leverage low. You can never lose more than you have, but higher leverage means faster results... both good and bad.
Step 2: Prove who you are
Exness takes security very seriously, and they check every client signing up. Just like opening a bank account, you'll need to prove who you are before getting access to the global markets. Watch this one-minute video to see how.
Tip: While you're waiting for your real account to be approved, open up a demo account and start getting to know the trading platform.
Step 3: how to get access to the market
Trades are made using the award-winning MT4 trading platform. Inside the box of the demo or real account you'll see a gear cog. Click the gear cog to make a deposit. Use the passwords provided in the email. Click the gear cog again and select SIGN IN TO MT4 WEBTERMINAL then follow this one-minute video. You're about to make your first virtual trade on the real markets.
Step 4: making a trade
As a default, the top currency pair on the list will have an open chart. Right click on the chart and select the “close” option.
As a professional trader, selecting the right pair requires some research. For a first-time test, any pair will be sufficient. Drag a pair from the list of currencies on the left side of the trading terminal. The old saying goes, “what goes up, must come down.” Obviously, this principle goes the other way too. Your mission is to find a moment when the price direction is going to swing or reverse. If you feel the price is about to go up (bullish), then BUY, if it looks like it’s been trading high and the price has started a downward (bearish) trend, then SELL.
Open a trade
There are many ways to open your trade. You can select from the buy and sell options on the top left of the chart. Preferably, double-click the currency pair on the list. Right click on the chart when you’re ready to make your first trade. Time to set the volume depending on how confident you are in the direction you are forecasting. This is the perfect time to set your stop loss and take profit. Click the arrow to the right of the stop loss and take profit prices.
Note how the blue and dark red lines in the popup graph sit above and below the buy(ask) and sell(bid) price. In the example, we traded long (buy) and got a message confirming the order was successful. If you get an error, your volume was too high for your balance, or your stop loss/take profit was too close to the spread. Remember, every order starts as a negative because of the spread. Be patient. Your take profit will activate when the time is right, and your stop loss is protecting you. To close an order, you have three options. Click the X on the right or right-click the order. If you double click the order, you can close or modify the order.
You now know how to make a trade. Forex trading can be an exciting way to spend your free time, and you'll actually learn some real-world skills that will serve you well throughout your lifetime. Be patient, learn, and who knows, you might one day be one of the lucky few full-time traders. How will you spend your day?
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