How can investors protect themselves against losses during economic crises? - TopAsiaFX

028, Dec 2021

Frankly speaking, the world economy is far from being stable. Crises follow one another, so the system cannot fully recover.  Suppose all we've been witnessing these years just refers to teenage problems.  Like a pimply teenager, the market grows, matures, acquires experience, makes mistakes and tries proving its independence.

Mood swings, home scandals, piercing, and crazy haircuts - the same refers to our economy! When it's running to extremes, the market volatility is increasing. Rouble to euro rate, euro to dollar rate - it seems that currencies sometimes go mad at Forex.

And just like patient parents, we only have to wait till "hormones" calm down and we see a full-grown system able to regulate world economies, control currency rates and develop sustainably along with other areas of life.  

How can be a crisis dangerous for investors?

Not for nothing are investors cautious during crisis periods. As we've mentioned before, the market volatility grows considerably in those periods. Today you invest in euros, and tomorrow the dollar grows against the euro at Forex. You look at the euro to rouble rate, but Forex has already prepared a new surprise.

Classic investment methods are dangerous exactly because of this traditional approach: your investment is long-term and therefore not flexible. It can't react promptly to the results of OPEC's meeting or US unemployment rate statistics. It's you who can react, but as an investor, you aim to make passive profits without having to follow currency rates and move eggs between baskets.

Anyways out?.. Earn from crises! 

Fortunately, investors are offered plenty of new opportunities today. They are not new in the exact sense of the word since the PAMM system has already had faithful fans. Not only can investors protect themselves during crises, but they can also increase their money through passive income.

As we know, the currency market's instability is like a river jammed with fish.  A professional market trader needs those volatile conditions and rate fluctuations to have something to predict and make profits from. If the market is quiet, a trader's waiting. For want of trades and profits, there's no point in casting the line.

So, what do we have? Money to invest, the world economic crisis, Forex market volatility, and traders who make money from this instability. All these factors make up the image of the PAMM investment system. You invest in a PAMM account, entrust your money to an experienced trader and get a percentage of his profit.

How that works and why it should be interesting for the trader can be read in one of my previous articles ("PAMM system: a view from both angles”). Continue reading on LiteFinance.