Analysts believe that 2017 has every chance of being as challenging as 2016. If so, is it possible to navigate the instability in global financial markets in order to trade successfully?
The New Year has been ushered in all over the globe. New Year’s resolutions have been made and people are settling down to the task of getting on with 2017. Did you think that we would make it to the end of 2016? To be honest, at some stage, I wondered whether 31 December 2016 would ever arrive, but with its usual regularity, the last day of 2016 dawned upon us.
Why was 2016 so enervating?
Most people found last year very stressful, even if they didn’t know why. Events such as Brexit, the grinding, never-ending war in Syria, the 2016 US presidential elections, terrorist attacks in Europe and Turkey, as well as natural disasters such as earthquakes, floods, typhoons, and tropical and winter storms, are some of the reasons why 2016 was a challenging year which was devastating for many.
Unfortunately, 2017 is expected to be as challenging, if not more challenging than 2016. European Union leaders are expecting a continuance of the political instability, extremist attacks, unchecked immigration, and a rising military threat from Russia.
Adam Thomson, director of the London-based European Leadership Network research group, offers his thoughts on the fact that the “risks for 2017 remain very high… Europeans need to recognise that [they] face a level of risk in the West-Russian confrontation that they have not seen since the 1960s…. Consequently, there is much uncertainty about. Most Europeans do not perceive the danger because they have been lulled by the cordial East-West relations that prevailed for years after the Soviet collapse in 1991. People have become used to 25 years of peace.”
Will the European Union survive 2017? This sounds like a rhetorical question but it is asked with alarming regularity. Elections are due to take place in countries such as the Netherlands, France, and Germany, and in all of these countries there are far-right parties who seem to have a good chance of coming to power who want to take their respective countries out of the EU.
How will another year of instability in Europe and the general geopolitical and socio-economic volatility of the USA, and other countries, impact the global financial markets?
2017: Socio-economic and geopolitical influences
It is well-known that geopolitical affairs play a major fundamental role in the volatility of the world’s financial markets. If the global political system continues with its current levels of uncertainty and explosiveness, there is no doubt that the financial markets will reflect it somehow.
Linked to the geopolitical influences on the international financial markets, the worldwide socio-economic conditions also play a large role in impacting the stability/instability of the markets. Our global socio-economic system is by and large a capitalist system. Robert Gilpin, in his book, The Challenge of Global Capitalism: The World Economy in the 21st Century, says that capitalism “is the most successful wealth-creating economic system that the world has ever known… Capitalism… creates wealth through advancing continuously to ever higher levels of productivity and technological sophistication.”
The flip-side of capitalism is that, although it produces many success stories, it also “poses a serious threat to traditional social values, beliefs, and institutions.” Finally, capitalism is also susceptible to recessions and economic downturns that can destroy people’s lives.
Investing on the global financial markets in 2017
So the question now is: How can we trade successfully on the world’s financial markets in periods of economic upturn/downturn topsy-turvy?
In my opinion it is feasible to invest successfully in global financial markets under current pecuniary conditions. All you need to do is to ensure that you have the following assets working together with you and on your behalf:
- Registered, reputable online trading broker
There are many online brokers available online today; however, it is vital that you choose to partner with a brokerage that takes options trading seriously.
It is estimated that today there are about 300 or more options trading brokers globally, but they are not all legitimate or sincere. Added to this, there is no single global regulator who oversees and regulates all Binary Options and Forex trading activities worldwide. Therefore, different regional regulatory bodies have been formed to regulate binary options trading as well Forex trading.
Therefore, when looking for a reputable broker, you need to look at which region the stated broker is registered in. If the broker is not registered with any regulatory body, or you are not 100% sure that this broker is registered, you need to stay away from this broker. In a nutshell, if a broker is not an asset, it is a liability and will more than likely end up costing you the total value of your investments.
- Proficient, reliable, and solid online trading software
An essential part of successful binary options trading is to sign up with a company/broker that offers a highly effective, trustworthy binary options trading software package. The end goal of this software is to return useful information to the trader; thereby, helping him/her to trade with a successful strategy.
High-quality, effective online trading software employs complex mathematical algorithms which perform live moment-by-moment price tracking. Absolutely key to strategy making for you, there are two types of online trading software to be aware of: Signalling Software and Auto-Trading Software.
Signalling software returns analysed and interpreted data back to the software package which, in turn is sent to the trader in the form of graphs, charts, and trading signals or messages.
Auto-trading or binary options trading robot software has control over the integrated trading process as it makes trades on the trader’s behalf. All he/she needs to do is to set up specific tactical parameters so that the auto-trading software knows what trades to make and what amounts of capital to actually invest.
Volatility is a symptom of our times, but it is not always bad news for the binary options investor. This is because price volatility very often equals opportunity for the binary options investor. Much more can be said about the challenges investors face in 2017. However, we should not be despondent because when all is said and done, the case for binary options is that we can derive profits whether the price moves up or down!