How to profit if Greece defaults

Another week … another Greek bail out.

More politicians telling us that we can all breathe a sigh of relief.

Greece has been rescued.

The euro has been saved.

However, there’s something very important that the politicians are not telling us.

Something that – if we are prepared for it – will mean that the most exciting and profitable times in the forex markets are upon us.

A time when many people will see their trading accounts severely dented by volatile swings or over-exposure to the wrong markets.

While the few who are in the know, will be cleaning up.

It’s what always happens at historical moments like this – most people lose money, while a canny few are making a mint.

Like George Soros pocketing a cool $1 billion by short-selling sterling when Britain was forced to withdraw from the ERM in 1992.

If you want to be best-placed to be one of the few who are profiting from this important event – an event that the politicians are all denying – then you’ll need to make sure you are properly equipped.

In a moment, I’ll explain exactly what this “equipment” you’ll need is, and how you can be best placed to take advantage of events as they unfold, but first I want to look at what it is that the politicians aren’t telling us about the euro …

So, have the EU leaders really saved the euro?

The problem is – politicians have to try to convince us that they’ve saved the euro.

The only thing keeping the Eurozone together is the belief that leaders have the collective power and determination to hold the union together.

The moment anyone lets slip that they’re considering a Greek default – things will fall apart.

Let’s face it – if you were living in Greece now, wouldn’t you get the bulk of your money out of the country?

And if you thought the politicians were drawing up plans to exit the joint currency – you’d be getting it all out, and fast.

When a country defaults, you can expect the value of its currency to half – with that hanging over you, you’d want to get your euros over the border. Because if Greece did default – they’d have to stop anyone from taking euros out of the country.

Soldiers on borders posts … the same euro notes on one side worth $1.30 … and on the other side of the line worth just 60 cents … it’s not quite the picture of European unity that the Maastricht treaty painted, is it?

So, the only thing that’s stopping every bank note from fleeing Greece right now is a bunch of politicians telling everyone that it’s all going to be fine.

Would you be prepared to trust your money to that kind of reassurance?

EU leaders are looking more and more like a flock of turkeys all denying any knowledge of Christmas. They know that the moment the first one blinks – Bernard Mathews will be at them all with a carving knife.

How the Greek crisis is benefiting forex traders

Personally, I have a pretty bleak outlook on the future of the euro.

But it really doesn’t matter what I think.

It also doesn’t matter what the EU leaders think.

The future of the euro will most likely be decided on the streets of Athens.

But the lesson we should take is that we can’t believe the placations of the politicians. They are following the line that they have to follow.

If they show any signs of faltering in their belief that the eurozone can stay together – it’ll be game over.

Spain are already appealing to Brussels for easier targets – if Spain can’t meet their targets, how workable are Greek targets?

But a default, by its nature, cannot be planned. If it comes, it’ll come out of the blue.

We’ll wake up one morning – and it’ll be upon us.

For some, the effect on their trading accounts will be devastating.

Others, will be rubbing their hands in glee at the money-making opportunities.
But if you want to be in the later camp, you’ll need to make an investment in your future as a forex trader.

Default or not – what you need to do

Whatever happens in the months ahead, there’s no doubt that the saga will continue, with the market twisting and turn on a daily basis.

What this means for traders is that we are currently living through some of the most exciting forex trading ever seen.

The sheer volatility of the market means that there are chances to profit again and again and again.

However, if we want to make the most of this market – a steady guiding hand is what’s required.

Related posts:

How can you profit from the Greek crisis Where to put your money when everything’s going down the pan