Forex Is dead – That was so last decade
I had an interesting question in the mail bag earlier in the week and I thought that it would make for interesting reading for you too
As you read it consider that I spent 12-yrs primarily day trading Forex so I do speak with a smidgen of authority on the subject of Forex
So, from the mail bag came this…
Q – I’m really enjoying the signals and trading stocks and can see a lot more longevity and consistency in your approach to the markets- I wondered what your thoughts are on forex as retail traders as opposed to trading stocks in this way?
A – I think we should consider ourselves traders or investors and not bracket or blinker ourselves into being forex or futures or stock traders
I will trade forex if I think it offers a good trade as well as oil, indexes commodities and obviously stocks
I have always flippantly said that if my time and resources are better spent flipping beanie bears on ebay like it was the 90’s again – then that is what I would be doing
I am a capitalist and an entrepreneur first – in that Im looking for the best opportunity for my time and resources
That is not in forex for you, me or anyone else at the moment and hasnt been for several years – back in 02 ahead of the forex explosion was the time to be in to forex and Im more focused on what will happen in the next decade rather than looking back on what was good last decade
If I did that then I would have gotten slaughtered in 02 trying to trade the tech stock bubble or what was left of it
The currency / tech bubble is over – so whats next?
What is next is for the economic house of cards to tumble especially emphasised in the US markets with a now 7yr bull market with barely a down tick to satisfy the bears and recession watchers – we have skipped 2 economic cycles so far and when this bear pulls into port there will be a case of the clap like you have never seen before
So bear market and recession on the horizon = increased volatility
options are priced using volatility and I anticipate becoming a net seller of options when the tide turns
That is all for now
Still need a little more help?