In this video:
00:32 – The looming economic storm.
01:04 – Interest rates are rising.
01:36 – Fuel prices are heading up again.
03:15 – The cost of food increasing.
04:20 – Unemployment increasing and wages not rising.
04:50 – Are you waking up to this yet?
05:27 – Start now and give yourself time to learn.
06:08 – Trade when the conditions suit.
06:52 – Don’t fall for the trading hype on social media.
07:45 – Look at www.TheForexTradingCoach.com
Did you know there’s quite a high potential of the perfect economic storm on the way? What are you going to do to make sure that you have safeguarded yourself as best as you possibly can, and to be aware of what’s likely to be happening? Let’s get into that and more right now.
Hey there, Trades! This is Andrew here at The Forex Trading Coach for video and podcast number 652.
The looming economic storm.
Outside on another lovely day here. But I want to talk about the storm that potentially is coming. Not the weather storm but the economic storm. And there’s a lot of quite interesting things likely to be brewing. And it doesn’t really matter where you live in the world.
I think this is probably going to affect so many people and it’s not good. And the purpose of today’s video and podcast is not to scare people, but to make people aware and also to make people wake up to like, what are you going to do to ensure that you ride the storm as best you possibly can? So let’s talk with a few obvious examples of happening right now.
Interest rates are rising.
Interest rates have started rising again here in New Zealand. Have just put them off to put them up in the US and put them up in, I think Australia as well, and, and also Canada and various other countries, and they still talk about them going up further again. So what is that doing. Well potentially that’s making mortgage rates higher.
So certainly here in New Zealand has prices have been dropping for some time. So your price of your house, your value of your house is going down. Yet the cost of servicing your debt is going up. So that’s obviously not good.
Fuel prices are heading up again.
Fuel prices, You know they they went up a while ago. Then they’ve come back a bit around the world and everybody thought oh that was it.
And now this started to go back up again. And when you think about the fuel price and diesel especially, you know, it affects everything we do from transportation to the cost of food and basically everything in our lives. And so when you are in countries say, like here in New Zealand, where our New Zealand dollar rate against the US has been dropping quite a lot when we’re importing things in US dollars, regardless of if that product goes up or not, it’s costing us more money and this will probably affect you depending on where you live in the world in a different way.
So purely as an example from here, the price of fuel, even if it stayed the same, but the New Zealand dollar is dropping against the US. It’s costing us more and more to import that. But now we’re getting that scenario where the price of fuel is going up as well, and the dollar is dropping against the US. It’s a double whammy.
And then you hear, like with the US looking at potentially now stopping a lot of exports of their diesel because they need it, you know domestically and their domestic prices going up. So they’re looking at looking after themselves, which of course that’s what most economies probably should do. And and they’re not so much worried about the exporting of that volume of diesel.
And so that’s likely to put a more pressure on the price of countries that import diesel from other places. So you can see how this is starting to all add up.
The cost of food increasing.
You add on top of that the cost of food and the cost of living, you know, going up anyway. And you know, last week we talked on the video and podcast 651 about health and, you know, people not being able to afford, you know, good food or organic food because of the prices.
And to me, what we’re getting right now is probably not even like, you know, the tip of the iceberg. It’s going to get probably just getting higher and higher and higher and getting worse. So you put all this together, you know, what have you got left after your wage and you’re paid for your food and you paid for your mortgage and your transportation.
Probably not much. And if you’re struggling with that now, what’s likely to be, say, in 6 months or a year from now? And that’s what I’m talking about, the perfect storm. Because a lot of these things are outside of our control. And, you know, we can’t help what’s happening globally with interest rates or fuel prices. But we still need to live, you know, we still need to pay mortgages, we still need to buy food, and we still need to move around.
Unemployment increasing and wages not rising.
And this is where I see this big issue coming for people because, you know, unemployment is getting, you know, worse, people are losing jobs. AI potentially is going to, you know, sort of take more and more jobs. And, you know, the the salaries are not great. Wages are not increasing, if at all, but certainly not to the rate that they need to be to cope with this food and fuel, etc.. So I see this as the perfect storm coming, and things are going to get real tough for a lot of people.
Are you waking up to this yet?
So as I mentioned at the beginning, the point of this is not to scare people is to say, let’s wake up and let’s see what’s happening and what can we do about this. And that, again, is where I see trading has been such a great skill.
Now, I’ve sort of said that maybe in 6 months, 12 months time things will be a lot worse. With trading. You cannot get into something new if you’ve not traded and and expect it to solve all your financial problems straight away. It’s not going to. It’s a silly way of getting into it. You’re forcing errors and mistakes, and you’ll probably lose money and give up and blame the broker and forex and me and everybody else but yourself.
Start now and give yourself time to learn.
You need to give yourself some time to learn this, to study it, to practice, to make mistakes. And, you know, not always our market conditions. Good either. You know, we’ve just come out of the northern hemisphere summer in July and August where the market conditions were really tough, you know, really, really hard. We didn’t, you know, have great months ourselves.
We had some good trades and, you know, and also some bad conditions. So we didn’t have a lot of trades. Now we’re starting to see, you know, trades going really well. We just had yesterday. We just had 6 trades posted on our forum site. All 6 were profitable. And today I’m just about to go and take 6 trades on the daily charts and 2 on the 12 hour charts. So there’s lots more happening right now.
Trade when the conditions suit.
So in other words, when the conditions are good for trading, we we take the trades. And you know, hopefully we do well when conditions are not so good. You just need to be steady cautious. And you can’t expect to make money if conditions are not always there. So my point being is give yourself time, get yourself educated, invest in yourself.
Now if you think that investing in yourself today’s expensive, don’t wait till it’s too late and then you’ve got no choice at all. Or you can’t afford to do it. So, prepare when it comes to your health, as I mentioned last week, prepare when it comes to your finances and your future. And that’s where we see good, realistic trading as being such a great way for people to help with passive income.
Don’t fall for the trading hype on social media.
You know, it makes it drives me mad. It makes me kind of sick when I see some of the rubbish out there online on, you know, on social media of, you know, people just praying around in red flash Lamborghinis and France and you know, it’s it’s people get caught up in that, you know, and people don’t have the attention span and the focus unfortunately, very much these days.
And they see that as the way forward. I can promise you, as someone that’s been trading for now, 21 years and teaching for 17, the way forward is to do this properly yourself. Invest in yourself. Take your time to do it properly. Understand the system. Join a community of people who are proven to make this work for themselves.
Trade on your demo account to start with this small account, maybe a bigger account or your prop firms. There’s so many options there to make sure that you beat this upcoming storm that’s coming. I think almost certainly it’s coming. Be prepared. Do something about it today.
Look at www.TheForexTradingCoach.com
If you’d like to find out more, jump on to TheForexTradingCoach.com
And we can certainly help you. This is Andrew Mitchem I see this time next week. Bye for now.
Episode Title: #652: The Perfect Economic Storm Is Building… Are You Ready?