Concepts that are wrong: about forex

Posted by Sony Friday, July 2, 2010
Concepts that are wrong:
There are concepts that are wrong for the market first is that the work in this market resembles playing roulette - one wins a large amount of money and lose the rest. It is natural that the risks are great. But warming is not a game of roulette, in the changing currency rates play certain laws. First, adopt the currency value specific indicators of the country's economy specified. Secondly determined by the preferences and expectations of market participants. Despite the difficulty of the work expectations, but possible. Work on the Forex market is confirmed by the analysis that the proportion of positives include more than coincidence.
Today we find that the risk and the risk is part and parcel of doing the work actively in market conditions, ie, can simply say that the real amount to the success of any project or deal could be different from what was expected when the decision-making. But speculation in the capital market is the most risky and dangerous because it can be the loss ratio of the complexity and the difficulty of predicting the behavior of the market can never guarantee a positive result. This fact has alienated many of the work in the capital market although it is accessible to all thanks to electronic communication technology and huge base for the analysis of information .
The second concept that profit is the wrong person must necessarily offset the loss of others. But speculation in the Forex market is not in many cases at the expense of changing currency rates, because there is a large group of participants using the currency exchange for other purposes (import and export, investment and tourism) does not play the price fluctuations for a short time an important role for them. Thanks to the freedom to change the basic world currencies the free floating rate determined by supply and demand become the process of changing the currency in itself a source of income, namely that the currency is a commodity like any other commodity.
The fact that the currency market like other markets, IMF is never in equilibrium. The condition can be described as the constant search for balance slippery slope.
What is required for success in the currency market? The basic vehicle access to that can be formed as follows:

    
* Predict the correct direction of change of exchange rates;
    
* To achieve a minimum of loss when the market situation is unpleasant;
    
* Dealing studied with the funds used in trading.
The prediction right price depends on the deep study of the market. Usually had three forms of market analysis: analysis of news and analysis of technical and analysis of myself. And be combined and considered the right of this analysis of the three is the guarantee for the correct prediction in the currency market.
News analysis includes the study of economic and political factors that may affect the currency market. For example, reports policies of the Reserve Bank of Central American and transactions economy, and the pronouncements of the important events and other important. The main objective of the analysis is essential to analyze the main factors and their impact on the dynamics of prices in the currency market. The shops in the Forex market always be familiar with the status quo in the world.
Technical analysis is an analysis of the market situation changes based on the previous price. And used in this analysis Albianh drawings that reflect price changes for a certain period of time. We can also technical analysis to understand the general market situation at the present time, several indicators can predict price changes in the near future. Technical analysis is based on the fact that the price to take into account all the factors that could affect the market - economic, political, psychological and other factors - are all already in the account when determining prices. And if the market was really a market as a result of movement consist of a large number of participants taken after analysis of the enormous amount of information when they contract deals. The behavior of prices is a result of these decisions, and you have to monitor input all the information in this market. That the necessary shops is the fact few - to know the direction of movement of prices. And technical analysis, gives an enormous amount of tools enable us to draw useful forecasts of graphs of prices.
Psychoanalysis is to analyze the behavior of traders in the market and their psychological and expectations, hopes and fears. This type of analysis is very important because the proportion of health is very high. We should not forget that behind the computer stations that give price expectations on human beings and their actions depend in the end currency rates.

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