“It’s not how right or how wrong you are that matters but how much $ you make when right and how much you do not lose when wrong” – George Soros.
Most commentaries on the state of the global situation agree that we are living in tough geopolitical and socio-economic times. Very few countries remain unaffected by America’s internal and foreign policies; consequently, the world waits on tenterhooks to see what Donald Trump’s latest bombastic and obnoxious utterances are going to be. It must be noted, however, that he managed to garner the majority vote in the November 2016 USA presidential elections; ergo, most USA citizens must feel that his policies and pronouncements are indicative of the direction that they want the USA to take.
Take the rise of nationalism in the USA, for example, and the move to exclude migrants from entering The United States of America. Another diplomatic crisis is once again brewing as Donald Trump has pointed fingers at other countries for not managing their migrant populations, as well as blaming the presence of migrants for an increase in the crime rate of the involved countries. Thus must, and does, play a major role in creating volatility and instability in the financial markets.
In my experience, the stock markets usually stabilize as they get used to an idea. In other words, they should start reacting less and less to Trump’s pronunciations. In this case, however, I am honestly not sure that this will ever happen. His foreign and domestic policies are too radical and too harmful to many people, especially the disadvantaged global citizens.
Minimizing debt by increasing investments
It goes without saying that many people are saddled with large amounts of debt, and they are battling to settle this debt. Is it possible to invest on the global financial markets in order to pay off debt? I think it is possible and a good idea; however, restraint and self-control must be exercised. It is easy to end up losing your initial capital outlay, as well as ending up in a worse financial position that when you started.
How do you minimize risk while increasing gains?
There are a few simple tips which will help you reduce your exposure to risk and increase the size of your investment portfolio:
The careful consideration of your online trading partner
It is easy to sign up with the first investment broker you come across; however, the continued ease of access to the internet has allowed for the rise of unscrupulous agents whose aim is not to help you grow your investment. It is rather to fleece you of your initial investment and then to disappear. Therefore, take time to look for a bona fide broker with a solid reputation. You won’t be sorry.
Knowledge is power
It’s vital that you try and learn as much as there is to know about trading on the global capital markets. The more time you take to research an underlying asset’s price movement history, as well as the past, present and future market trends, the greater chance you will have of making the right decision. At the same time, it’s important not to vacillate after having made an investment decision. Once you have made a decision on what assets you want to trade on, stick to your decision. Trust yourself! Don’t change your mind halfway once you have opened your position and before your position closes. This is one of the quickest ways to lose money.
Implement a conservative trading strategy
One of the best ways to thrive in volatile, unstable market conditions is to implement a conservative trading strategy. I believe it is best to stick to day trading; ergo, you open and close your position within the same day. In this way, you will avoid going to sleep at night knowing that the market conditions are looking strong to waking up the next morning to discover that the bottom has fallen out of the market because of Trump’s latest enunciations (for example).
In conclusion, it must be stated that the purpose of this article is not to opine or deliver judgment on Donald Trump and American politics. The facts are what they are; notwithstanding, the bottom line is that the global financial markets are strongly impacted by what the USA, and other countries, say and do. Furthermore, the aim of this discourse is to consider the extent to which the current global events impact the world’s financial markets, to determine how to thrive in such a challenging environment, and to be able reduce your debt levels in spite of the current market conditions.