Money is nothing but a tool of war for those who dream of empires. That's true during the industrial revolution and 'it's true now. During the age of the gold standard, the U.K. applied monetary pressure to other nations to protect the empire. Nowadays, China has been accused multiple times of currency manipulation to favour their export industry. But these two nations aren't the only example. During the Cold War, several countries engaged in currency exchange manipulation as the U.S. and the USSR fought satellite wars.
Some businesses do not pay dividends but offer their shareholders free shares. The tax office also considers this to be a dividend, and hence, this revenue is subject to taxation.
Some funds have at least 66% invested in equities. They are characterised by short-term exchange rate fluctuations, even fractions of percentages in a few months. They are risky funds suitable for the most extended investment horizon due to the advantage of the long-term highest appreciation potential.
1) Signal Sellers
Signal sellers are commercial firms, pooled asset managers, managed account companies or individual traders that express their ability to have a constant edge on the market. To be precise, they claim to identify the best time to open or close a position based on expert guidance.
Some scammers will collect money from unseasoned traders before disappearing. Others will intermittently recommend some good trades, to keep perpetuating the signal money. All and all, it is best to avoid anyone who claims to have a 100% track record when it comes to market signaling.
One of the most important things that differentiates a winning trade from a poor one is information. An informed trade, based on key insights, has a higher likelihood of success than a mere hunch or guess. Trading is not like gambling - it’s not a question of blind luck that gets you winning trades, despite what some traders think.
When getting started into the world of forex trading, the amount of information can seem overwhelming enough to convince you to enter trades blindly by guessing your way into the markets. While you may get lucky every now and then, it’s a matter of probability, and it’s not enough.
So which sources should traders follow?
An educated, insightful trade backed with the right information (charts, news, updates, analysis tools, etc) can help you maximize your profits. And who’s going to hand you this information? Forex traders and investors have a wide variety of websites, big and small, to choose from, but how do you know which is the right resource to depend on for advice or for backing up your daily activity?
The big names in the market, such Market Watch or Bloomberg, are obviously worth following. But what if that’s too advanced and high level for you to grasp, especially as an amateur trader? Or what if it is overwhelming and feels like too much information for your size?
You then need to turn to websites that are focused on what you actually need - In-depth courses, guides, strategies and education to learn the basics of forex trading, keep you updated with all the important news and market updates that can affect your trades, provide real time quotes, charts and trading tools, and give you tips and trade ideas from time to time.
An emerging market (EM) currency is the money of a nation that is considered to be transitioning from underdeveloped to developed.
Currently, five nations are more or less considered the emerging market's darlings. Collectively, they are known as 'BRICS' (Brazil, Russia, India, China, and South Africa). But, as of recent Brazil has fallen a bit out of grace. It's political scandals, and an increase in unemployment has made traders drop the BRL altogether.
Everyone knows or have heard about the wolves of Wall-Street. These people are usually traders who work for Goldman Sachs, Merril Lynch, JP Morgan, CityGroup, Morgan Stanley, and others.
Whenever the central bank of a country introduces a change in its economy, the numbers on the financial markets around the world will go upsides or downsides. Traders are aware of this, so they follow the events closely in order to stay informed and know how to act.
What Is Forward Guidance?
Central Banks make public communication about the state of the current economy, and what would possibly be the outcome for future monetary policy. This communication practice is called Forward Guidance and is significantly helpful for traders.
Forward Guidance gives an estimated path for the interest rates that affect the decisions for making inversions or adjusting the prices on different business. It notes the public about possible changes in the economy; that way, it won’t come as a surprise when it happens. Forward Guidance is now widely used by most of the major central banks in the world, including the US Federal Reserve, the Bank of England, the European Central Bank, and the Bank of Japan.
Luckily for you, you’re about to learn about a money management technique that will probably end up saving you a lot of money!
Fixed Ratio is what they call it, and you’re about to know what it is!
That is why it is vital to make highly rational decisions while looking at a trading chart. The behavior of the masses is simply an aggregate of individual actions. From mass hysteria to bullish overperformance, all of it revolves around how millions of people feel about the conditions of a given situation.
There are three main groups in the COT report:
Knowing the groups is nice, but what matters is what a trader can do with such information. These are the most common ways top-traders use the COT report.
Ordinary shares, which represent the most common issued shares. Shareholders have the right to take part in the profits generated (called “dividend right”), general meetings, and liquidation balance. The contrary to an ordinary share is called a priority share.
For example, Robert Prechter predicted the dot-com bubble with a high degree of accuracy. Granted, it was 5 years too early. However, it still speaks about the potential advantages of this theory. And they lie at the heart of what has made Elliott Wave so divisive and useful at the same time.
The retail sales report is one of such elements, for it’s one of the most significant indicators of a country’s economic development.
Now it’s your time to learn what it is, what it does, and how to take advantage of it!
Understanding Bollinger Bands and Pivot Points is one of the elements that make a reliable forex trading foundation. And comprehending them will allow any trader to do top-level forex trading.
Since knowing the importance of central banks is paramount to execute good fundamental analyses, you’re about to learn just that in this post.
Since being one step ahead of the market is one of the best Forex strategies, we will now delve into NFPs and why they are so important for traders.
What Is The Non-Farm Payrolls Report?
It’s one of the economic indicators released by the US. It represents how many jobs have been added outside of farming, government, private household, and non-profit organisations.
The NFP report is released monthly and is one of the most closely watched economic indicators for estimating the current state of the US economy. It is prepared and published by the Bureau of Labor Statistics.
This article will focus on the effects of QT, but, in a nutshell, QE sets to encourage higher economy output by having interest rates close to zero while injecting money into the economy by purchasing different financial instruments. QT, by definition, is the opposite of that – removing money from the economy through similar measures.
Quantitative Easing, or QE for short, has been frequently talked about in recent history. Introduced as a way to incentivize economic stability and growth after the 2008 financial crisis, QE has become the centerpiece of most major central banks in the world
The effect of Quantitative Easing on the currency’s value is negative (currency depreciates). The logic is simple - more quantity of the currency by definition weakens that currency - more supply leads to lower prices.
Nowadays, GDP calculations can vary from nation to nation. There is no single formula to be used when trying to assess the economic health of a nation. However, the most widely accepted way to measure GDP by economists is the so-called expenditure approach. This system calculates the value of Y (GDP), by adding total consumption (C), investment (I), government spending (G), and net exports (NX) which are total imports minus total exports.
The final equation looks like this: Y= C+I+G+NX
The go-to platform for anyone interested in trading forex, there is no equal for this fantastic platform. MT4, as it is commonly known, comes with several features and capabilities that will help novice and experienced traders alike.
The main interface in MT4 gives traders access to all the technical tools they need to a proper and efficient technical analysis. Moreover, these tools can be used in real-time, which means traders can make quick decisions based on accurate information.
Traders can open demo accounts to test their skills. But, if they are ready to trade, the platform can be download for free at the developer's site.
When it comes to economic news, there are critical events any trader must track if they wish to do a highly reliable fundamental analysis.
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