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RE: How to Start Trading on World Financial Markets Using Bitcoin! Quick, Easy and With as Little as .01 BTC
Good but in my opinion I would stay away from forex & stocks in the coming months. It's too financial crisis in the air mood right now, people should wait until it calms down. I dont want to wake up with -90% stock returns.
Ye,s many people are weary of a looming market collapse but if you are shorting stocks and longing gold that crash could be quite profitable. It may seem a little perverse but many of us made money and were cheering when the market corrected itself last month dropping the S&P 500 by 2.4% from it's all time high.
I would never short during a collapse, it's pretty much a suicide. It's never a straight way down (otherwise there is no liquidity and your order doesnt get executed anyway), sometime it bounces back enough to kick you out of the trade and you lose money. That is how a lot of people lose money.
Shorting carries assymetric risk, and crisis times can be pump and dumps. But also if the broker itself goes bankrupt, your whole account goes with it. Forget investor insurance, that will go too.
FDIC doesnt cover 1% of the liabilities, and you cannot register the stocks to your name if you are shorting, only if you buy and hold. So if the broker falls (which would be likely), all your money is gone, doesnt matter if you make 99999% profits.
Well I tend to wager on it being a crash or correction and not an actual collapse of the entire system. I do have jitters of about banks or brokers not being around to pay out on those contracts though.