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Well folks, it’s no secret that the global economy is taking a serious hit these days. In fact, experts are saying it’s the worst we’ve seen since the financial crisis of 1929. But hey, amidst all the chaos, there’s one question on everyone’s mind: how does this recession affect the currency market? The answer is simple: it’s ramping up the volatility and opening up more opportunities to make some serious dough.

Let’s talk trading range volume: In the good ol’ days, the daily range for most currencies, like the EURUSD, GBPUSD, and USDJPY, never went above 120 pips. We’re talking an average of 100 pips here, folks. But times have changed, and with increased volatility, the EURUSD is now rocking an average range of over 200 pips, though it’s been known to move a whopping 400 pips in a single day. Talk about some wild swings, right? With investors seeking safe havens for their cash, fear and greed are driving the market, resulting in wider trading ranges and more volatility.

The great thing about all this madness is that it’s creating endless opportunities to make some serious bank. Central banks and governments worldwide are pumping stimulus funds into their economies, which means there’s more cash flowing through the trading world. And where there’s more money and volatility, there’s a boatload of trading opportunities just waiting to be snatched up.

But here’s the downside: more inexperienced traders are gonna lose their shirts. It’s been said before that 90% of traders lose money, but these days it’s even worse. Only about 1% of traders are actually making real profits. That’s a tough pill to swallow, my friends. But don’t lose hope, because the truth is, for the savvy traders out there, the opportunities still outweigh the risks. So if money is changing hands like crazy, all you gotta do is figure out how to grab your piece of the pie.

The three standout markets: We’ve always had three distinct market types, but now they’re becoming even more apparent. If you wanna succeed in this crazy Forex world, you gotta understand these scenarios and take full advantage. No matter what currency pair you’re trading, you’re gonna encounter these bad boys: trending markets, counter trend markets, and breakout markets.

For those trending markets that pop up about 30% of the time, you’ll need a killer trading system that can pinpoint accurate entry levels during retracements and rebounds. Keep Fibonacci retracement in your back pocket, ’cause it’s gonna be a lifesaver.

If you’re trading in a counter trend market, you’ll need a system that helps you hop from one range to another. This is where support and resistance lines become your best buddies. And let’s not forget about Pivot points analysis – get cozy with it if you wanna profit like a boss.

Now, this type of market also requires a handy dandy trend indicator that alerts you when there’s no trend in sight so you can prepare to enter trades. And an Oscillator indicator is gonna be your go-to for determining those sweet overbought and oversold moments. Oscillators, my friends – they’re a Forex trader’s secret weapon.

When you’re trading, aim for a tidy 20 pips per trade. You can take anywhere from 5 to 10 trades in a day. Crunch those numbers consistently for 20 trading days in a month, and you could be raking in a juicy 100 to 200 pips a day. That’s gonna put a nice $1,000 to $2,000 in your pocket every day. Of course, on a mini account, that’s gonna translate to a still respectable $100 to $200 daily. So, if you can stay disciplined and snag anywhere from 100 to 500 pips daily, you’ll be sitting pretty, my friends. It’s all about having a killer trading system at your disposal – don’t leave home without it.

Now, when it comes to breakout moments, get ready for the market to relax for a spell. Breakouts tend to go with the main trend of the day, but sometimes they throw us a curveball. That’s when you’ll wanna lean on trend line breakouts – they can give you a major upper hand. And don’t forget about news breakouts – they play an important role too. Remember, straddling is your secret weapon here.

Timing is everything: It’s one thing to know that opportunities are out there, but it’s a whole different ball game knowing the best time to strike. Some currencies can be traded in a counter-trend market when the banks are closed. Wanna give it a whirl? Try trading the USDJPY pair around 1.00GMT and aim for 10 to 20 pips per trade. But beware – after a couple of oscillating movements, a breakout is usually on the horizon. And if you’re itching for an EURUSD breakout, be prepared for it to go down most mornings around 6:45GMT. As for GBPUSD, keep an eye out for a breakout in the mornings at 7:00am GMT.

Trending markets tend to show up after the banks have opened and things have settled down. Look for the majors to start trending between 3:00am and 9:00am during the Asian/Australian and London/European sessions. And keep an eye out around 1:30pm to 2:00pm for the New York session. And for GBPUSD and EURUSD, expect trends to emerge around 8:00am or 9:00am. Of course, these trends could encounter sharp reversals due to big announcements, but sometimes they’re just little course corrections before continuing on its merry way.

So, my friends, with all this in mind, it’s time to choose your trading adventure. Take into account your experience level, the time you can devote to trading, your discipline, and your aversion to risk. Find the strategy that works for you and dive in headfirst. Good luck out there!

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Ihab Salloum