naiyiksoon123
New Member
Lack of consistent outlook
Many a times, a retail trader may not get the unambiguous view of the situation. That may result in erroneous judgment. A currency which may look weak could be actually consolidating to go up as macroeconomic factors may be favoring an uptrend. The rise of the greenback after the 2008 financial crisis is a good example. The US dollar gained against the G10 rivals as soon as the 2008 financial crisis broke out. Many had expected the greenback to lose value. Instead, the opposite happened as markets across the world fell short of the US dollars required for day-to-day operations. The US Federal Reserve, the lender of last resort, had to step in and fill the void. Ironically, the financial crisis began with the US based Lehman Brothers filing for bankruptcy. Thus, traders and even some analysts expected the greenback to plunge. Only those traders who had thorough knowledge of the entire banking system could have made money or at least protected themselves. Not all retail traders are privileged to receive crucial information.
Many a times, a retail trader may not get the unambiguous view of the situation. That may result in erroneous judgment. A currency which may look weak could be actually consolidating to go up as macroeconomic factors may be favoring an uptrend. The rise of the greenback after the 2008 financial crisis is a good example. The US dollar gained against the G10 rivals as soon as the 2008 financial crisis broke out. Many had expected the greenback to lose value. Instead, the opposite happened as markets across the world fell short of the US dollars required for day-to-day operations. The US Federal Reserve, the lender of last resort, had to step in and fill the void. Ironically, the financial crisis began with the US based Lehman Brothers filing for bankruptcy. Thus, traders and even some analysts expected the greenback to plunge. Only those traders who had thorough knowledge of the entire banking system could have made money or at least protected themselves. Not all retail traders are privileged to receive crucial information.
