The volatility in the STOCK MARKETS across the world due to credit problems with financial establishments in recent weeks have offered some great opportunities for experienced day traders to accumulate wealth.
Most experienced TRADERS and MARKET WATCHERS would agree that the market will carry on being panicky, hence volatile until the day that the credit crisis are put behind us. So if you are trading daily and watching the market's every move you should be well placed to make good profits - in my opinion these are not times for long-term trading and anybody who does that is only throwing away valuable time and of course his or her hard-earned money.
Last Friday, the US Federal Reserve cut down the lending rate to banks, which was a temporary measure to calm down the market and this made a positive effect on the day and consequently made all the major WORLD MARKETS to rally.
The credit crisis cannot disappear overnight and it will stay with us for a while. For instance, last night Capital One, after the close of the US market, hit the market with more negative news that it will close down its wholesale mortgage unit. TODAY, the German Bank WestLB AG warned that it has become very difficult to acquire FOREIGN CREDITS and the FUTURES are already down as a result a considerable amount.
My advice to junior traders who use CFD or other leveraged accounts to trade, is a word of caution. Make sure your stakes are kept to a sensible size and in a volatile market I would always take profits when they arise for the reason that profits can turn to a loss in a blink of an eyelash.
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