The Forex Market has 46 currency pairs on a conservative estimate. Telling you that you would need to keep an eye on developments on all the countries of the globe would be asking too much of you. For starters, you could keep an eye on developments of the countries whose currencies who have invested in the Forex Market. Look for economic and political developments that could create a stir in the forex market.
Why monitoring the political and economic scenarios of countries are important to global Forex trading?
As it has been observed statistically, the value of currency of a country changes a lot due to the economic and political climate of the country. For example, the Federal Rate cuts on Interest rates aimed at controlling the sub-prime crisis in USA increased the value of the US Dollar. Don’t get carried away of you get a cue from one such indicator. Please make a list of all such factors that would impact a currency in the Forex Trading Market.
A long pending factor to a currency movement is the price of crude oil per barrel. As the price of crude oil inches towards $100 per barrel, the US Dollar is inching towards new lows by the day. In such a scenario, you would think that the US Dollar could be undermined severely.
The sentiments of traders across the globe should also be considered
It is important that you stay updated with other traders of the forex market too. At the end of the day, traders and the developments in a country impact the pricing of a currency at 50:50 ratio. A classic example of this is the rebound of US Dollar. It has been observed that the Dollar has hit new lows almost every other day of the trading. Last week, a lot of people realized that the Dollar has much more potential than what it shows. This triggered widespread buying of the Dollar.
How would all this impact you as a trader?
Let’s take the example of EUR/USD. Let us assume that you had bought some USD two months ago when it was getting battered. Now with the correction taking place, you are more or less in a position to decide if you wish to stay in the market or exit booking your profits. The correction trend is expected to continue to till the new year after which the forecast for the Dollar looks a bit bleak.
Ideally, a smart trader would book his profits partly on the resounding correction of the US Dollar. He would keep a part of the money invested in the market to see how the Dollar behaves. The point being made here is that your eye on the economic developments of the country could be the best indicator for you to analyze your buy and sell points in the trade.
Which factors to be considered in forex trading?
Growth, Inflation, Crude Oil Prices - are three important factors in no order of priority would need to be taken into count when you make a sell or a buy call in a currency. Please note that there is no direct correlation between these three but all these impact the movement of a currency.
Successful Forex trading is about how you look at the developments of a country. Taking macro and micro economic factors into consideration will make you a smart trader instead of a speculative trader. As it goes, the speculative trader may make a lot of money but will also lose a lot of money.
Forex Update: Comparatively Reliable U.S. Dollar, Falling British Pound, And Geithner's Message to Asia 3 comments
Currency market participants are faced with increasingly diverse options amid the deepening erosion of risk appetite, persistent banking losses and deteriorating measures of corporate and household wealth. While yen-supportive strategies remain most prevalent amid the worsening risk-landscape, broad selling of the British pound and bearish stances in the commodity currencies (CAD, AUD and NZD) has also proven rewarding. The US dollar continues to emerge as a reliable companion to the yen in strengthening by default against the European and commodity currencies. USD-strength by default simply means the increase in value resulting from a slew of negative European issues (UK banking troubles and S&P sovereign downgrades of Eurozone nations). But as I have argued last week, gold's upward trajectory manifests the ongoing fundamental woes in the US economy and currency (last weeks retail sales, falling CPI and todays soaring jobless claims). As retail investors realize gold's ability to hold above its 2-month trend line, their new zeal for the metal via ETFs may help propel the metal back to December's $890s.
Sterling Focus: From Davos to Rome
As French and German officials begin to express concern with the impact of the pound's rapid fall on their already sluggish economies, more swings are expected in the British currency, particularly, the parity-bound EURGBP exchange rate. Chatter is already circulating about a possible mention of the weak GBP in next month's G7 meeting in Rome. Over the last 6 years, G7 summits were a popular venue for policy makers to voice their concerns over a plummeting dollar, an artificially low Chinese yuan or Japanese yen. But with the current GBP plunge already dubbed as a currency crisis (23-year lows vs the USD and record lows vs EUR and JPY), the focus has clearly shifted and the stakes are higher. Consequently, we should expect more GBP volatility ahead of the G7 meeting, especially as the chorus of remarks from German and French officials about GBP intensifies. Currency swings will be especially pronounced as German and French tensions may be further countered by the approving from UK Treasury officials. After all, the weak pound is the only silver lining of the UK recession.
Next week's Global Economic Forum in the ski slopes of Davos should prove as a warm-up exercise for GBP-related chatter, speculation and verbal and intervention, leading to the Feb. 14 G7 meeting in Rome. Having reached $1.3618, GBPUSD is increasingly expected to extend $1.30 in the medium term, a figure last seen in September 1985. Parity in EURGBP remains a more plausible target than $1.25 in GBPUSD.
Geithner's FX Message to Asia
Yesterday's remarks from US Treasury Secretary designate Tim Geithner expressing his views in favour of flexible exchange rate systems were largely targeted at China, but more of such remarks could be interpreted as his green light to allow the further declines in the USDJPY exchange rate, currently at 14-year lows. Geithner is familiar with FX matters at the NY Fed, including the notion of double standard policy espoused by the Bush administration in past years whereby US officials pressured Beijing against yuan-selling intervention while allowing Tokyo to engage in yen-buying interventions in 2002-2003 as both measures served the interests of the U.S. economy.
Geithner's allusion Wednesday that China is engaging in currency manipulation would be a departure from the US Administration's repeated shrugging of the matter. In the event the Obama Treasury pressures China into further currency revaluation, the dollar/yen exchange rate would make the transition from falling to collapsing, especially if Beijing stonewalls Washington, as it is likely to do considering its slowing economy.
Forex traders may reason that Geithner's experience with international monetary affairs grants him the ability to attain successful coordination with European and Asian policy makers in stabilizing currency swings. But there is validity to the opposite argument stating that Geithner's experience implies his awareness of the non-viability of currency intervention due to prevailing fundamentals. With US interest rates expected to remain at zero and UK interest rates yet to reach that level, the downside for both USD and GBP is here to stay, particularly against JPY. Reiterating the notion of a high correlation between Fed tightening cycles and USDJPY, the exchange rate is expected to break below 80 and onto 72-73.
Sterling Focus: From Davos to Rome
As French and German officials begin to express concern with the impact of the pound's rapid fall on their already sluggish economies, more swings are expected in the British currency, particularly, the parity-bound EURGBP exchange rate. Chatter is already circulating about a possible mention of the weak GBP in next month's G7 meeting in Rome. Over the last 6 years, G7 summits were a popular venue for policy makers to voice their concerns over a plummeting dollar, an artificially low Chinese yuan or Japanese yen. But with the current GBP plunge already dubbed as a currency crisis (23-year lows vs the USD and record lows vs EUR and JPY), the focus has clearly shifted and the stakes are higher. Consequently, we should expect more GBP volatility ahead of the G7 meeting, especially as the chorus of remarks from German and French officials about GBP intensifies. Currency swings will be especially pronounced as German and French tensions may be further countered by the approving from UK Treasury officials. After all, the weak pound is the only silver lining of the UK recession.
Next week's Global Economic Forum in the ski slopes of Davos should prove as a warm-up exercise for GBP-related chatter, speculation and verbal and intervention, leading to the Feb. 14 G7 meeting in Rome. Having reached $1.3618, GBPUSD is increasingly expected to extend $1.30 in the medium term, a figure last seen in September 1985. Parity in EURGBP remains a more plausible target than $1.25 in GBPUSD.
Geithner's FX Message to Asia
Yesterday's remarks from US Treasury Secretary designate Tim Geithner expressing his views in favour of flexible exchange rate systems were largely targeted at China, but more of such remarks could be interpreted as his green light to allow the further declines in the USDJPY exchange rate, currently at 14-year lows. Geithner is familiar with FX matters at the NY Fed, including the notion of double standard policy espoused by the Bush administration in past years whereby US officials pressured Beijing against yuan-selling intervention while allowing Tokyo to engage in yen-buying interventions in 2002-2003 as both measures served the interests of the U.S. economy.
Geithner's allusion Wednesday that China is engaging in currency manipulation would be a departure from the US Administration's repeated shrugging of the matter. In the event the Obama Treasury pressures China into further currency revaluation, the dollar/yen exchange rate would make the transition from falling to collapsing, especially if Beijing stonewalls Washington, as it is likely to do considering its slowing economy.
Forex traders may reason that Geithner's experience with international monetary affairs grants him the ability to attain successful coordination with European and Asian policy makers in stabilizing currency swings. But there is validity to the opposite argument stating that Geithner's experience implies his awareness of the non-viability of currency intervention due to prevailing fundamentals. With US interest rates expected to remain at zero and UK interest rates yet to reach that level, the downside for both USD and GBP is here to stay, particularly against JPY. Reiterating the notion of a high correlation between Fed tightening cycles and USDJPY, the exchange rate is expected to break below 80 and onto 72-73.
Top 10 Forex Resource Sites in the Internet
This time, we give you the list of what we consider to be the 10 sites with greatest use, considering the information and resources relative to the Forex market. For each one of them we have included a brief summary of their functions and what you can expect to get.
1- Forex Directory (http://www.forexdirectory.net)
This is a complete specialized Forex directory in which you may find a great variety of resources and information. Among these, you may obtain quotes and data from the currency, agricultural, commodities, gold, oil, bonds, and stock markets, etc. It includes a currency converter, charts, economic calendar, relevant data from polls, and summaries of the latest news and predictions related to Forex trading. It also offers some recommendations on software and utility applications.
2- FX Info (http://www.fxinfo.com)
In this site you will find articles, tools and useful methods to improve your Forex strategies. It also offers free versions of software for real time analysis, like charts and quotes. Among other tools, it includes: a margin calculator, a pivot points calculator, a currency converter, a free forex account, a pips and pairs calculator, an earnings calculator, etc. Lastly, it contains a wide repertoire of forex theoretical information and basic concepts for those found at their starting stages.
3- Info Forex (http://www.info-forex.com)
This site´s strength is found in the available information and analysis. It counts with economic calendar and indicators, technical indicators, charts and news. Also, it offers on time reports of the Forex market published by the most prestigious financial entities (UBS, Scotia Bank, Rabobank International, etc.), as well as active links to the main news and information sites of the Exchange market, among others (Bloomberg, Forbes, The Wall Street Journal, CNN Financial Network, CNBC, Reuters Finance, etc).
4- Forex Listing (http://www.forexlisting.com)
This is yet another directory specialized in the Exchange market, where you can find: Listing of associations and central banks, sector news, technical and fundamental studies, broker listings, predictions, charts, converters, software and platform recommendations, etc. It also offers e-books and free articles.
5- ForexStreet.com (http://www.fxstreet.com)
This site besides providing classic Forex tools, like rate history tool, risk probability calculator, pivot point calculator, etc., offers multimedia educational resources as: videos of live web seminars, e-books, DVD´s and access to published articles in the blogs of over 15 Exchange market specialists. Also, it maintains an updated list of the upcoming events, conventions and sector workshops. It counts with a more limited version in Spanish. (http://www.fxstreet.es).
6- Easy Forex (http://www.easy-forex.com)
It offers trading services, as well as tools to use in Forex and market information. Also, it counts with a complete info center that includes articles explaining the function of the Exchange market, glossary, technical and fundamental analysis, among others.
7- Forex Trading- Mataf.net (http://www.mataf.net/#en)
It offers daily currency predictions and intraday Forex tools. It includes the latest news and alerts.
8- Forex Glossary (http://www.forexglossary.com)
It is a very complete glossary of terms for Forex trading, finance and investments. The site contains a wide array of definitions, with more than 1200 terms, cross references between related terms, information tips and numerous examples.
9- Forex Yellow Pages (http://www.forexyellowpages.com)
Forex directory where you may find a list of useful links related to Forex and broker listings. Also, it counts with an explanation of basic concepts about how the Exchange market works, and real time rates.
10- Forex-Directory.net (http://www.forex-directory.net)
In this extensive directory you can find: Listing of Forex advisors, alerts and signals, brokers, charts, Forex forums and blogs, news, training courses, resources and tools.
11- Other important directories and sites:- Forex-Directory.org (http://www.forex-directory.org)- Forexdirectory.org (http://www.forexdirectory.org)- Go Forex (http://www.goforex.net
1- Forex Directory (http://www.forexdirectory.net)
This is a complete specialized Forex directory in which you may find a great variety of resources and information. Among these, you may obtain quotes and data from the currency, agricultural, commodities, gold, oil, bonds, and stock markets, etc. It includes a currency converter, charts, economic calendar, relevant data from polls, and summaries of the latest news and predictions related to Forex trading. It also offers some recommendations on software and utility applications.
2- FX Info (http://www.fxinfo.com)
In this site you will find articles, tools and useful methods to improve your Forex strategies. It also offers free versions of software for real time analysis, like charts and quotes. Among other tools, it includes: a margin calculator, a pivot points calculator, a currency converter, a free forex account, a pips and pairs calculator, an earnings calculator, etc. Lastly, it contains a wide repertoire of forex theoretical information and basic concepts for those found at their starting stages.
3- Info Forex (http://www.info-forex.com)
This site´s strength is found in the available information and analysis. It counts with economic calendar and indicators, technical indicators, charts and news. Also, it offers on time reports of the Forex market published by the most prestigious financial entities (UBS, Scotia Bank, Rabobank International, etc.), as well as active links to the main news and information sites of the Exchange market, among others (Bloomberg, Forbes, The Wall Street Journal, CNN Financial Network, CNBC, Reuters Finance, etc).
4- Forex Listing (http://www.forexlisting.com)
This is yet another directory specialized in the Exchange market, where you can find: Listing of associations and central banks, sector news, technical and fundamental studies, broker listings, predictions, charts, converters, software and platform recommendations, etc. It also offers e-books and free articles.
5- ForexStreet.com (http://www.fxstreet.com)
This site besides providing classic Forex tools, like rate history tool, risk probability calculator, pivot point calculator, etc., offers multimedia educational resources as: videos of live web seminars, e-books, DVD´s and access to published articles in the blogs of over 15 Exchange market specialists. Also, it maintains an updated list of the upcoming events, conventions and sector workshops. It counts with a more limited version in Spanish. (http://www.fxstreet.es).
6- Easy Forex (http://www.easy-forex.com)
It offers trading services, as well as tools to use in Forex and market information. Also, it counts with a complete info center that includes articles explaining the function of the Exchange market, glossary, technical and fundamental analysis, among others.
7- Forex Trading- Mataf.net (http://www.mataf.net/#en)
It offers daily currency predictions and intraday Forex tools. It includes the latest news and alerts.
8- Forex Glossary (http://www.forexglossary.com)
It is a very complete glossary of terms for Forex trading, finance and investments. The site contains a wide array of definitions, with more than 1200 terms, cross references between related terms, information tips and numerous examples.
9- Forex Yellow Pages (http://www.forexyellowpages.com)
Forex directory where you may find a list of useful links related to Forex and broker listings. Also, it counts with an explanation of basic concepts about how the Exchange market works, and real time rates.
10- Forex-Directory.net (http://www.forex-directory.net)
In this extensive directory you can find: Listing of Forex advisors, alerts and signals, brokers, charts, Forex forums and blogs, news, training courses, resources and tools.
11- Other important directories and sites:- Forex-Directory.org (http://www.forex-directory.org)- Forexdirectory.org (http://www.forexdirectory.org)- Go Forex (http://www.goforex.net
Top 10 Forex Resource Sites in the Internet
This time, we give you the list of what we consider to be the 10 sites with greatest use, considering the information and resources relative to the Forex market. For each one of them we have included a brief summary of their functions and what you can expect to get.
1- Forex Directory (http://www.forexdirectory.net)
This is a complete specialized Forex directory in which you may find a great variety of resources and information. Among these, you may obtain quotes and data from the currency, agricultural, commodities, gold, oil, bonds, and stock markets, etc. It includes a currency converter, charts, economic calendar, relevant data from polls, and summaries of the latest news and predictions related to Forex trading. It also offers some recommendations on software and utility applications.
2- FX Info (http://www.fxinfo.com)
In this site you will find articles, tools and useful methods to improve your Forex strategies. It also offers free versions of software for real time analysis, like charts and quotes. Among other tools, it includes: a margin calculator, a pivot points calculator, a currency converter, a free forex account, a pips and pairs calculator, an earnings calculator, etc. Lastly, it contains a wide repertoire of forex theoretical information and basic concepts for those found at their starting stages.
3- Info Forex (http://www.info-forex.com)
This site´s strength is found in the available information and analysis. It counts with economic calendar and indicators, technical indicators, charts and news. Also, it offers on time reports of the Forex market published by the most prestigious financial entities (UBS, Scotia Bank, Rabobank International, etc.), as well as active links to the main news and information sites of the Exchange market, among others (Bloomberg, Forbes, The Wall Street Journal, CNN Financial Network, CNBC, Reuters Finance, etc).
4- Forex Listing (http://www.forexlisting.com)
This is yet another directory specialized in the Exchange market, where you can find: Listing of associations and central banks, sector news, technical and fundamental studies, broker listings, predictions, charts, converters, software and platform recommendations, etc. It also offers e-books and free articles.
5- ForexStreet.com (http://www.fxstreet.com)
This site besides providing classic Forex tools, like rate history tool, risk probability calculator, pivot point calculator, etc., offers multimedia educational resources as: videos of live web seminars, e-books, DVD´s and access to published articles in the blogs of over 15 Exchange market specialists. Also, it maintains an updated list of the upcoming events, conventions and sector workshops. It counts with a more limited version in Spanish. (http://www.fxstreet.es).
6- Easy Forex (http://www.easy-forex.com)
It offers trading services, as well as tools to use in Forex and market information. Also, it counts with a complete info center that includes articles explaining the function of the Exchange market, glossary, technical and fundamental analysis, among others.
7- Forex Trading- Mataf.net (http://www.mataf.net/#en)
It offers daily currency predictions and intraday Forex tools. It includes the latest news and alerts.
8- Forex Glossary (http://www.forexglossary.com)
It is a very complete glossary of terms for Forex trading, finance and investments. The site contains a wide array of definitions, with more than 1200 terms, cross references between related terms, information tips and numerous examples.
9- Forex Yellow Pages (http://www.forexyellowpages.com)
Forex directory where you may find a list of useful links related to Forex and broker listings. Also, it counts with an explanation of basic concepts about how the Exchange market works, and real time rates.
10- Forex-Directory.net (http://www.forex-directory.net)
In this extensive directory you can find: Listing of Forex advisors, alerts and signals, brokers, charts, Forex forums and blogs, news, training courses, resources and tools.
11- Other important directories and sites:- Forex-Directory.org (http://www.forex-directory.org)- Forexdirectory.org (http://www.forexdirectory.org)- Go Forex (http://www.goforex.net
1- Forex Directory (http://www.forexdirectory.net)
This is a complete specialized Forex directory in which you may find a great variety of resources and information. Among these, you may obtain quotes and data from the currency, agricultural, commodities, gold, oil, bonds, and stock markets, etc. It includes a currency converter, charts, economic calendar, relevant data from polls, and summaries of the latest news and predictions related to Forex trading. It also offers some recommendations on software and utility applications.
2- FX Info (http://www.fxinfo.com)
In this site you will find articles, tools and useful methods to improve your Forex strategies. It also offers free versions of software for real time analysis, like charts and quotes. Among other tools, it includes: a margin calculator, a pivot points calculator, a currency converter, a free forex account, a pips and pairs calculator, an earnings calculator, etc. Lastly, it contains a wide repertoire of forex theoretical information and basic concepts for those found at their starting stages.
3- Info Forex (http://www.info-forex.com)
This site´s strength is found in the available information and analysis. It counts with economic calendar and indicators, technical indicators, charts and news. Also, it offers on time reports of the Forex market published by the most prestigious financial entities (UBS, Scotia Bank, Rabobank International, etc.), as well as active links to the main news and information sites of the Exchange market, among others (Bloomberg, Forbes, The Wall Street Journal, CNN Financial Network, CNBC, Reuters Finance, etc).
4- Forex Listing (http://www.forexlisting.com)
This is yet another directory specialized in the Exchange market, where you can find: Listing of associations and central banks, sector news, technical and fundamental studies, broker listings, predictions, charts, converters, software and platform recommendations, etc. It also offers e-books and free articles.
5- ForexStreet.com (http://www.fxstreet.com)
This site besides providing classic Forex tools, like rate history tool, risk probability calculator, pivot point calculator, etc., offers multimedia educational resources as: videos of live web seminars, e-books, DVD´s and access to published articles in the blogs of over 15 Exchange market specialists. Also, it maintains an updated list of the upcoming events, conventions and sector workshops. It counts with a more limited version in Spanish. (http://www.fxstreet.es).
6- Easy Forex (http://www.easy-forex.com)
It offers trading services, as well as tools to use in Forex and market information. Also, it counts with a complete info center that includes articles explaining the function of the Exchange market, glossary, technical and fundamental analysis, among others.
7- Forex Trading- Mataf.net (http://www.mataf.net/#en)
It offers daily currency predictions and intraday Forex tools. It includes the latest news and alerts.
8- Forex Glossary (http://www.forexglossary.com)
It is a very complete glossary of terms for Forex trading, finance and investments. The site contains a wide array of definitions, with more than 1200 terms, cross references between related terms, information tips and numerous examples.
9- Forex Yellow Pages (http://www.forexyellowpages.com)
Forex directory where you may find a list of useful links related to Forex and broker listings. Also, it counts with an explanation of basic concepts about how the Exchange market works, and real time rates.
10- Forex-Directory.net (http://www.forex-directory.net)
In this extensive directory you can find: Listing of Forex advisors, alerts and signals, brokers, charts, Forex forums and blogs, news, training courses, resources and tools.
11- Other important directories and sites:- Forex-Directory.org (http://www.forex-directory.org)- Forexdirectory.org (http://www.forexdirectory.org)- Go Forex (http://www.goforex.net
Famous Forex Quotes
- “If you get in on Jones’ tip; get out on Jones’ tip”. If you are riding another person’s idea, ride it all the way.
Run early or not at all. Don't be an eleven o'clock bull or a five o'clock bear.
Woodrow Wilson said, "a governments first priority is to organize the common interest against special interests". Successful traders seek out market opportunities capitalizing on the reality that government's first priority is rarely achieved.
People who buy headlines eventually end up selling newspapers.
If you do not know who you are, the market is an expensive place to find out.
Never give advice-the smart don't need it and the stupid don't heed it.
Disregard all prognostications. In the world of money, which is a world shaped by human behavior, nobody has the foggiest notion of what will happen in the future. Mark that word-nobody! Thus the successful trader bases no moves on what supposedly will happen but reacts instead to what does happen.
Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough.
Except in unusual circumstances, get in the habit of taking your profit too soon. Don't torment yourself if a trade continues winning without you. Chances are it won't continue long. If it does console yourself by thinking of all the times when liquidating early preserved gains you would otherwise have lost.
When the ship starts to sink, don't pray-jump!
Life never happens in a straight line. Any adult knows this. But we can too easily be hypnotized into forgetting it when contemplating a chart. Beware of the chartist's illusion.
Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic.
Whatever you do, whether you bet with the herd or against, think it through independently first.
Repeatedly reevaluate your open positions. Keep asking yourself: would I put my money into this if it were presented to me for the first time today? Is this trade progressing toward the ending position I envisioned?
It is a safe bet that the money lost by (short term) speculation is small compared with the gigantic sums lost by those who let their investments "ride". Long term investors are the biggest gamblers as after they make a trade they often times stay with it and end up losing it all. The intelligent trader will . By acting promptly-hold losses to a minimum.
As a rule of thumb good trend lines should touch at least three previous highs or lows. The more points the line catches, the better the line.
Volume and open interest are as important to the technician as price.
The clearest and easiest way to determine a trend is from previous highs and lows. Higher highs and higher lows mark an uptrend, lower highs and lower lows mark a downtrend.
Don't sell a quiet market after a fall because a low volume sell-off is actually a very bullish situation.
Prices are made in the minds of men, not in the soybean field: fear and greed can temporarily drive prices far beyond their so called real value.
When the market breaks through a weekly or monthly high, it is a buy signal. When it breaks through the previous weekly or monthly low, it is a sell signal.
Every sunken ship has a chart.
Take a trading break. A break will give you a detached view of the market and a fresh look at yourself and the way you want to trade for the next several weeks.
Assimilate into your very bones a set of trading rules that works for you.
The final phase in a bull move is an accelerated runaway near the top. In this phase, the market always makes you believe that you have underestimated the potential bull market. The temptation to continue pyramiding your position is strong as profits have now swelled to the point that you believe your account can stand any setback. It is imperative at this juncture to take profits on your pyramids and reduce the position back to base levels. The base position is then liquidated when it becomes apparent that the move has ended.
How The Economical Crisis Affects Forex
In every crisis there is very interesting events, opening the gap of social status. I really mean, the rich and poor, and I do not mention the middle class; I place them in the methodology in the same bag as the poor. The poor are poorer and the rich are richer. But being rich is not about money, it is a matter of attitude.
The economic crisis we are experiencing stronger than ever these days not only affect our economy, but as always happens when the world is mobilized by an important fact, also our mental health at risk. Stress, depression, among other mental disorders is leading to the economic crisis raging for months to markets, and that affects our decisions every day. Therefore, we must understand that our emotions precede our attitudes, changing our thinking is a key fundamental.
You may think that a lot of rich attitude you may have is not enough, if you don’t have capital you’re out; you will not cross the line of a poor with aspirations. Investing in Forex is a real and effective solution. Doesn’t produce great opportunities the crisis in Forex? Perhaps this is one of its greatest attractions.
We are in crisis and this is no longer questioned anymore. Now we wonder what kind of crisis we are suffering. There is talk of a global crisis, or more chain-crisis, value crisis, environmental crisis, financial crisis, a crisis of production, economic crisis, real estate crisis, etc.
Most of us were resigned and think that the cycle of crisis will be about for two years as the experts say. Others look for opportunities. Every crisis creates an enormous opportunity for anyone who is willing to take the risk. We can stay looking as prices go up and how that affects our accounts or we can risk and pursue new business and investment by taking advantage of the bear market. This is what forex is creating, opportunities.
Does The Current Crisis Affect the Forex Market?Yes, the fall of the stock market and the global financial crisis, affects forex as well. However, as speculation on world currencies we do in forex, there will always be currencies that are better than others. So, we trade the strongest by buying and sell the weakest.
When the Crisis is Over, Are People Going to Invest in Forex?The blows that have suffered major economies of the world in recent months hurt those who do have an investment in forex. What happens is that the volatility in the markets provides an extreme sensitivity to any asset and the risk increases as the days pass.
If we are to make an investment in forex we must take into account that in this market, 80% of transactions are conducted with the so-called major currencies. These currencies are backed up by the strongest economies in the world providing the security that the investor needs.
The euro has become a safe trade currency, and this has led many countries to be saving or investing in that currency, even in many cases is to prefer the euro against the dollar. The dollar has depreciated against the euro, which is why many countries are investing in this currency. This has also contributed to this phenomenon, the differential between the official rates of the major hard currencies and some of the country’s most affected by the crisis (United Kingdom). The United States on official rates are currently at 0.25%, 0.50% in the United Kingdom, 0.25% in Canada and 0.1% in Japan. All this contributes to a strong euro is continuing to act as a refuge.
The substantial difference between the two powers is that U.S. lowered their interest rates and the results were not expected, and in Europe they are reluctant to lower the cost of money to prevent the fall of the euro, although in recent days has suffered a slightly low rate cut.
The banks have followed the policy of the Fed for example the Bank of England who reduced its interest rate to protect the British economy from the global crisis. While the measure is too recent to be seen whether the British pound suffered a fall, so it continues to be a good option to invest in the forex market.In these cases it is advisable to invest in the forex market, but betting on currencies that might not have a performance as profitable as the dollar, the euro or sterling, but they provide confidence to investors.
Diversifying is the key and foreign exchange is a good option to make such moves. The dollar is a currency that has devalued and one of the reasons is that oil had change in short range of time and that enhances competitiveness.
Anyone who invests in foreign currency should analyze what are the economies most affected by the global crisis, and from there, to deduce which are the currencies that are devalued, and which benefit from this situation.
Actually the current situation is not favorable for those with a negative attitude, but for those who see an opportunity where none exist are those that can grow. We can learn that in forex there is always an opportunity, but each investor must believe in it and see in detail where you can take advantage of every opportunity. Today the psychology of the operator is essential to survive
The economic crisis we are experiencing stronger than ever these days not only affect our economy, but as always happens when the world is mobilized by an important fact, also our mental health at risk. Stress, depression, among other mental disorders is leading to the economic crisis raging for months to markets, and that affects our decisions every day. Therefore, we must understand that our emotions precede our attitudes, changing our thinking is a key fundamental.
You may think that a lot of rich attitude you may have is not enough, if you don’t have capital you’re out; you will not cross the line of a poor with aspirations. Investing in Forex is a real and effective solution. Doesn’t produce great opportunities the crisis in Forex? Perhaps this is one of its greatest attractions.
We are in crisis and this is no longer questioned anymore. Now we wonder what kind of crisis we are suffering. There is talk of a global crisis, or more chain-crisis, value crisis, environmental crisis, financial crisis, a crisis of production, economic crisis, real estate crisis, etc.
Most of us were resigned and think that the cycle of crisis will be about for two years as the experts say. Others look for opportunities. Every crisis creates an enormous opportunity for anyone who is willing to take the risk. We can stay looking as prices go up and how that affects our accounts or we can risk and pursue new business and investment by taking advantage of the bear market. This is what forex is creating, opportunities.
Does The Current Crisis Affect the Forex Market?Yes, the fall of the stock market and the global financial crisis, affects forex as well. However, as speculation on world currencies we do in forex, there will always be currencies that are better than others. So, we trade the strongest by buying and sell the weakest.
When the Crisis is Over, Are People Going to Invest in Forex?The blows that have suffered major economies of the world in recent months hurt those who do have an investment in forex. What happens is that the volatility in the markets provides an extreme sensitivity to any asset and the risk increases as the days pass.
If we are to make an investment in forex we must take into account that in this market, 80% of transactions are conducted with the so-called major currencies. These currencies are backed up by the strongest economies in the world providing the security that the investor needs.
The euro has become a safe trade currency, and this has led many countries to be saving or investing in that currency, even in many cases is to prefer the euro against the dollar. The dollar has depreciated against the euro, which is why many countries are investing in this currency. This has also contributed to this phenomenon, the differential between the official rates of the major hard currencies and some of the country’s most affected by the crisis (United Kingdom). The United States on official rates are currently at 0.25%, 0.50% in the United Kingdom, 0.25% in Canada and 0.1% in Japan. All this contributes to a strong euro is continuing to act as a refuge.
The substantial difference between the two powers is that U.S. lowered their interest rates and the results were not expected, and in Europe they are reluctant to lower the cost of money to prevent the fall of the euro, although in recent days has suffered a slightly low rate cut.
The banks have followed the policy of the Fed for example the Bank of England who reduced its interest rate to protect the British economy from the global crisis. While the measure is too recent to be seen whether the British pound suffered a fall, so it continues to be a good option to invest in the forex market.In these cases it is advisable to invest in the forex market, but betting on currencies that might not have a performance as profitable as the dollar, the euro or sterling, but they provide confidence to investors.
Diversifying is the key and foreign exchange is a good option to make such moves. The dollar is a currency that has devalued and one of the reasons is that oil had change in short range of time and that enhances competitiveness.
Anyone who invests in foreign currency should analyze what are the economies most affected by the global crisis, and from there, to deduce which are the currencies that are devalued, and which benefit from this situation.
Actually the current situation is not favorable for those with a negative attitude, but for those who see an opportunity where none exist are those that can grow. We can learn that in forex there is always an opportunity, but each investor must believe in it and see in detail where you can take advantage of every opportunity. Today the psychology of the operator is essential to survive
