We are at this time of the year again when everyone holds hand’s and decides to work together to fix the problems in the United States (Kidding). I find this election to be one of the most important in not only the history of the United States, but also the world.
We have arrived in a completely new world with unique complexities
The decisions that the United States makes, and even Europe or China, now not only affect their own countries, they effect the whole world. The world economy is so intertwined that whenever one country has a slowdown it can be felt across the globe in another.
I will give you a simple example about how this works. The United States is the 2nd largest economy behind Europe and the largest consumers in the world. Citizens of the United States devour products, food, and services at an alarming rate.
The question is where are these products, food, and services coming from?
Ever turned a fruit around and taken a look where it’s from? I’m willing to bet most of those fruits are from Latin America, how many times have you called a calling center to find a man (or woman) with an Indian accent whose name is Brad Pitt? And what exactly isn’t made in China anymore? I just found a made in China sticker growing on one of my teeth.
The crisis in Europe and the ripples that it sends throughout the globe affects the way that you do business. The new South American Union (UNASUR) is sure to be the European Union of the South once their leaders get their act together. The Middle East, Africa, Asia, everyone is creating monster markets.
I am neither democrat nor republican, I choose to invest and live overseas because I find the policies of the United States to be getting worse and worse. With the implementation of quantitative easing after more quantitative easing, there is going to be a moment when the economy will choke because there is no more money to “quantitative ease”.
Day Traders have nothing to worry about until the election
Congress is in a stale mate and until things change we will be free to make a living day trading. Democrats have the ideology that speculators are the problem, specifically oil speculators like myself. Many have gone on record saying that we are the ones that drive prices higher which affects the gas prices at the pump which in turn, drives up prices for middle America.
Republicans on the other hand don’t think that oil speculators are the problem and instead focus on solutions like looking for more oil or looking at the viability of constructing an oil pipeline from Canada to the good ole boys down in Texas. And we wonder why Texas is doing okay in this recession?
Click here to educate yourself about the pipeline
So the question is do you want the party that proposes potential regulations against day trading or not. It will remain to be seen how far these regulations go (if put in place) as speculating on commodities is completely different than speculating on the Emini S&P 500 for example..
In reality, the Emini S&P 500 is an imaginary market that only has value because there are millions of traders around the world that say it has a value. The actual market is moved by the index which is moved by the buyers of the sellers of the stocks that are on that index, the top 500 public American companies respectively.
In either scenario I am still personally concerned with the health of not only the global economy, but most notably the United States & European economies. According to the numbers of the CIA fact book, the US & Europe have roughly 39% of the world economy. What they don’t mention is how involved those economies are in other emerging economies.
In other words, how many business from Europe & America do you think are investing in places like Brazil (6th largest economy), China (3rd largest economy), India (4th largest economy).
Either party is going to have to make tough decisions in order to turn things around. One of the reasons I have decided to move to India is to look at the prospects of day trading in the Indian markets, free and clear from US government regulation. Just want to note it will be all above board.
Even with the current problems that the United States and the world faces I still consider now to be a great time to start day trading. Should be interesting how things turn out.
they mention daytraders drive the market up… even if that would be true,, the opposite apllies day traders would move the market down either..
Guillherme.. that I feel is one of the biggest problems. Congressmen dont really understand how the markets works. In one of the events they where asking questions about how it did work one congressmen was stunned that we could make money when the market does go down. He didn’t even know that was possible…
Thank you Marcello!!
Enjoy India and be prepared for the unexpected!
You mention more Crude, since we, ES mini traders, aren’t at all affecting the S&P, since that’s going on if we existed or not, will this market stop?
And how can government actual do anything at all about it, isn’t this more localized rather than at the president’s level?
Congressmen may not know about the making money with the market going up or down, but I can guarantee their money manager does and I am positive the money handler works the futures plenty to allow anything to really ever pass. If a stodgy congressman found out that his funds are going down, he’ll do all he can to prevent it from happening.
Plus, if it does happen, this can be years in the making.
No because the entire world trades crudes.. not just speculators. The crude market will never cease. The president can say that you aren’t able to speculate on crude futures just like the pattern day trading rule where they required people to have $25,000 in a brokerage account in order to day trade stocks. You can’t day trading stocks unless you have that amount of money in your brokerage account.
Just because they do it, and may do it even though there is a law in place that says you can’t, doesn’t mean they will allow us normal people to do it. I would anticipate within 2 years if the right person gets elected and wants it done.
Ok, so what I’m understanding they are simply going to put stricter restrictions? For instance, if we have that kind of money to back it up, we can still trade?
You’re mainly talking about crude? Or will the ES mini get affected as well – or all futures trading will be affected.
Could be either or, that is one of the reasons why I am heading to India to make sure that if any restrictions are in place I can trade, as well as all you guys in the training program, without any issues. It’s the same way that we look at the market Marina, try to anticipate everything that can happen and react
will you be teaching us how to get into other markets too? I would love to not have any restrictions and continue to trade.
I know i’m not a pro yet, but this is a career move for me and will be for my husband too starting 2013!
So want to be trained by you for all markets 🙂
I plan on it Marina