Fasten your seat belt guys, it’s going to be a rocky ride.
Trump sent out warning signals about a possible stock market crash, if he’s not re-elected.
“If anyone but me takes over,” Trump told his 61 million Twitter followers, “there will be a Market Crash the likes of which has not been seen before!”
source: Bloomberg (June 15, 2019)
The president has claimed several times this year that the U.S. stock market would be 5,000 to 10,000 points higher if the Federal Reserve hadn’t raised interest rates four times in 2018.
This is big news, but you know what’s even bigger – the profit opportunities a possible market crush can present to traders.
So, how does one make money during a very aggressive market downturn? A stock market crush is a fast, significant price drop of a large number of shares in the stock market. Extremely volatile by definition, these events provide plenty of opportunities for CFD traders.
So how can you make the most of the price action?
One of the most obvious ways to make money is to go short on stocks and indices. Some traders, however prefer to wait and go long on the market’s recovery. Certain forex pairs can also see plenty of price action. Central banks will sometimes cut interest rates, which may cause that currency to devalue compared to others.
And features markets such as the VIX have implied volatility, so they may rise in response to anxiety that often surrounds a stock market crash.
source: IG.com (March 20, 2019)
Whichever market you choose to trade, it’s likely to be volatile, so there would be plenty of opportunities for you to action.
Even now! TradeApp offers you the unique chance to trade indices, commodities and currencies via CFDs, starting with as little as €5.
Trading is risky, you may lose all your capital