WHY SHOULD YOU BE SCARED YOU MIGHT ASK?
Well you should be because this is the 3rd of 5 legs down from the top of 2008 which will break the lows of March 2009 and will continue on down until it completes all 5 legs. The ultimate bottom will be equivalent to the ongoing crash in Japan's Nikkei 225 Index which topped in 1989 around 40,000 and crashed below 5000. This means of course that all Mutal Funds, Shareholders, Pension Funds will be obliterated to the point of no return at least not in your lifetime or mine. So whats the average time to recover all those funds lost? The average is 18-25 years but in reality it could take much longer to recover and in the end analysis will be of no use to you
if you need your funds to support yourself. What would I do? Run like hell because the odds are stacked against you in a major way. I would go with a safe 2-3% return and count your luck stars you managed to save your capital. If you are afraid of missing out on potential gains in your investments then use 5% of your capital with a leveraged product such as Options, Foreign Exchange Derivative's or Forex to say take a position wherby you would say Sell or Buy The USD against another currency such as the EURUSD, GBPUSD, USDCAN, OR SWISS FRANC (USDCHF). How would you do that you might ask? You would use Technical Analysis to ascertain if say the US DOLLAR (USDCAD) is going up or down vis a vis the Canadian Dollar. Look at the chart below.
The white bars (Up)and red bars (Down) on the top part of the chart is the price. Each bar is 1 hour in duration but can be easily changed if you wish to trade a different timeframe such as weekly, daily, 4 hour 1 hour as above and lesser timeframes such as 30 min, 15 min, 5 min, 1 min etc. I do not recommend you go less than 1 hour timeframe, The MACD Indicator (large white image) just below the price is optimized for 1 hour timeframe and creates a staircase effect when it decides to move up or down from a consolidation or
sideways pattern. If you look very very closely under the white bars (candlesticks) you will see green dotted lines which is the entry point of my trades using the MACD staircase effect as an entry point. The Trade was entered approx 2 hours ago and I bought 3 lots with margin of exactly $500 per lot times 3 lots, and then I added (3) 1/20th of a lot margin=$25 so in total I am up $2164.97 within the 2 hour timeframe from when I placed the trade. All you need to trade successfully is the above configuration exactly as I laid it out and wait for the staircase effect with white candlesticks (price) to enter. When price goes over the top of the Macd which appears as a
Mountain effect then you get out because the staircase will start down instead of up. So in effect you are only trading 2 patterns re an up or down staircase. If you try to trade any other patterns you will lose. Something you should know is that the USDCAD trades the opposite direction to the following currencies at any one point in time. So if the USDCAD (THAT IS THE US DOLLAR GAINING ON THE CAN DOLLAR) THEN GBPUSD, USDJPY ,GBPJPY,USDCHF, ETC WILL BE TRADING DOWN ON THE STAIRCASE.