As you know FTSE 100 index is back below 4000 and the Dow Jones is below 8000, so it's safe to say that shares across the board are performing woefully at the moment. Although I think there are some excellent bargains to be had at these prices, I believe that you also need a more stable source of income in this current economic climate, which is why I can recommend forex trading.
Of course forex trading is extremely risky in general but if you can spend time to develop your own profitable trading system then the earnings can be relatively stable and predictable. I personally have developed a trading system based on the 4 hour charts and it seems to generate solid profits every single week with just one or two good trades being triggered each week.
The great thing about forex trading is that the major currency pairs conform extremely well to technical analysis. This means that by educating yourself about the various technical indicators and learning which ones give the most reliable signals, you can make excellent profits from forex trading.
Furthermore another benefit is that there is potential to make good profits whatever the current economic climate may be. So it doesn't really matter if the economy is strong or weak at the moment. When you trade forex you can go long or short of a currency pair, so it's just as easy to make profits from currencies that are in a downwards trend than those currently trending upwards.
The real trick to making money from forex trading is to find a solid trading system and apply strict money management rules to get the most out of this system. So this means you want to apply a strict stop loss to every trade to keep your losses small, and you should also only risk a small percentage of your capital on any one trade to keep yourself in the game and not overexpose yourself.
If you can do all this, you should find that forex trading can provide you with a solid and dependable income. Furthermore you can potentially make far higher gains than you could from stock market investing, even with a conservative trading approach.
For example most investors would generally be happy to make 10-20% profit each year from their share portfolio, but there are skilled forex traders out there who are capable of earning these kinds of returns in a month, particularly if they make use of leverage. So hopefully you can see why forex trading can be much more lucrative than share investing, particularly during this current economic crisis when shares are weak and out of favour.
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