As the world plunges into and, more importantly, climbs out of its current economic mess the short term trader will be well served to look at where the action will be. Which stock exchanges will grow and which stock exchanges will dwindle? Which foreign stocks will prosper and which domestic stocks will have foreign holdings? When there is an economic disaster this magnitude there will be a reshuffling of where the money and talent goes and thus where the ideas will come from. A little research into the world’s stock exchanges, foreign stocks listed on US exchanges, and US multinationals will serve the short term trader well in coming months and years.
This writer knows of a trader who does very well in the Australian stock exchange in Australians large caps, thank you very much. Australia has become the major raw materials provider for China’s industrial growth. The short term trader can capitalize on the ups and downs of raw materials, shipping, as well as Chinese industrial production by following and dealing in the Australian stock exchange. One need not trade in an incredibly busy market if the right indicators are there and there is money to be made.
Computer software companies in India such as Infosys trade on the US stock exchange. These folks have made money on outsourcing of US software business. However, they are also well positioned to take advantage of India’s phenomenal growth. This company and any number of Indian tech companies are good bets for growth and investment. This makes these companies which trade in the USA good targets for the short term trader as India comes out of the worldwide recession.
US international giants such as Proctor and Gamble, 3M, IBM are everywhere beside being on the New York Stock Exchange. Because of their sheer size they tend not to be very volatile. However, these folks’ stocks tend to reflect currency prices and general economic trends. They are, in fact, a roundabout means of trading currency and worldwide economic fluctuations. Expect to see a realignment of currency values as the recession rights itself. You can trade Forex and you can trade multinationals on the New York Stock Exchange.
The point of all this is that you can be the best technical trader in the world but if you are trading in the wrong place you will not make any money. In fact, if you are trading in an area where there is no action you may find yourself tempted to take risks trying risky trades.
That sort of thing flies in the face of trading to make money. Do enough reading, enough research, and talk to those who are successful to find out where the most profitable action is. That is where you want to be.
Then you can follow a well thought out and practiced trading plan and make enough money retire early. Or, better yet, continue to trade successfully and live the life of your dreams.
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