Huge opportunities to make money in the market, says CMTrading CEO
Daniel Kibel shares advice for local traders
We’re more than halfway through 2021 and while the markets started strong in January, the global economy is feeling the pressure from the “third wave” of the pandemic. SA’s economy, while still severely crippled, has started to rebound and has ramped up its vaccine rollout.
As a spike in Covid-19 sends ripples through the market, many traders are asking — is now a good time to invest?
CMTrading CEO Daniel Kibel shares his thoughts on market volatility and highlights some top trends investors should be watching in 2021.
The markets and global economy are reeling from a new wave of the pandemic: is now a good time to trade?
I think that’s the beauty of trading. The markets aren't clear at the moment, because nothing is clear at the moment. Will the stock markets continue to rise? Is Covid-19 over or not for the financial markets? We thought it was, yet now, we’re dealing with the new Delta and Beta strains. Overall, we’re living in interesting times and this uncertainty is what translates to higher profit potential in online trading.
Uncertainty creates volatility, which allows for huge opportunities in the market. Traders need to realise this is not a stable market; you’re either going to make it big or you could lose money. You need to go into this with your eyes open. The guys who make real money do so during conditions such as these. So now is the perfect time to enter the market, but caution is advised.
What’s your take on the global economic recovery?
Globally we’re not clear where we are. Certainly, in the developed world, vaccinations have taken off. People who were vaccinated are rarely dying or suffering serious side effects. Having said that, we don’t know exactly what is on the global stage. The UK is opening stores and is becoming a test lab for the entire world, as all restrictions are lifted. In terms of global economic recovery, I’m not sure we’ve gone over the top yet. You’ll always have huge tech companies that are too big to fail, whereas the small business down the street is feeling the full force of the pandemic. Unemployment rates are rising, and people are struggling financially more than ever before. It’s going to be a challenging time.
In forex, you can see the dollar/rand is touching R15 again, hovering at R14,90, when in June it was down to about R13,40. We are seeing the US dollar strengthening. Whether that will continue remains to be seen.
What’s happening in the crypto market?
The big news in the crypto market was bitcoin hitting $40,000, supported by rumours that Amazon would accept cryptocurrency as payments. It’s the world’s biggest online marketplace and if Amazon were to accept bitcoin, it would become a de facto currency and give crypto huge legitimacy. But Amazon has promptly denied this, which caused bitcoin to reel back yet again.
Bitcoin has been up and down these past few months, hovering between $30,000 and $40,000. Some analysts are confident it could breach $100,000 and some people believe it will eventually collapse. Once again, this is a market rife with speculation. It’s a market where you must be incredibly careful, yet it is also one where fortunes can be made.
How can South Africans get into trading?
You can join CMTrading webinars, complete some of the courses and understand the basics of trading. Fred Razak, CMTrading’s senior trading strategist, hosts popular weekly webinars. Now is the moment to jump in and give yourself a great opportunity to make money in the markets.
Not sure which stocks to trade?
Choosing the right stock can be daunting for beginners. Follow expert traders and copy their trades automatically using CMTrading’s CopyKat trading platform. When they profit, you profit.
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This article was paid for by CMTrading.