Easy trading example 1
The following chart shows the exchange rate of the Australian dollar against the euro when Russia began its invasion of Ukraine. On Thursday, February 24, 2022, Putin’s troops invaded the neighboring country. The euro had already depreciated significantly against the Australian dollar (EURAUD) in the previous days. Let’s assume that the idea of profiting from the euro’s downward trend only came to mind at the weekend. So on Monday morning, February 28. 2022 EURAUD was sold.
All week, the euro dropped like a stone against the Australian dollar. But on Monday the price rose again, so the deal was terminated and the position closed. The difference of 4400 points is a huge number in forex trading. Even if one had traded cautiously, the profit would have been ten times the capital risked. In one week! A professional trader who had recognized his opportunity in time could have earned 50 times his stake.
It was not necessary to know much about economics and foreign exchange. Many people may have found the answer to the following question: Where does the capital flow to when war breaks out in Europe? – To the country that is furthest away from Europe and has the least to do with the war!
Of course, such big opportunities are rare. But there are often smaller opportunities that can be recognized by mere reflection.
If working groups specifically look for such opportunities, if a large number of swarm members posts tips & hints on where something might be available, the returns of our trading could far outweigh all other investments.
