?
?
- written by Bernard the Editor for
LifestyleSecretReview.com
?
?
?While it used to be that the foreign currency exchange market was restricted to financial institutions and governments, private individuals can now dip their fingers into this exciting investment instrument.? Traders in forex are exposed to a highly dynamic and volatile market.? Moreover, this market is highly liquid.
?
It is rarely closed, so any investor who wants to cash in on his or her investments can do so without waiting for a maturity date (as in bonds) or the opening of the stock market the next day.? Somewhere in the world, the forex market is always open.? These factors set the forex market apart from other investment medium like stocks and bonds.
?
For beginners who see promise in the currency market, here are some forex tips to help you understand what this whole new world (pun intended) of investments is about:
?
Tip #1: All currencies all over the world are traded, but there are the Big 4.
?There are some currencies that are not as traded as other currencies.? The most active ones are the British pound, the euro, the US dollar, and the Japanese yen.? They are the ones being traded often because they are the most frequently used currencies in global business transactions.
?Moreover, the countries behind these currencies ? the US, the UK, the European Union, and Japan are the most influential forces in global finance.? Anything that occurs in these countries, whether political, social, economic, or environmental, has a huge impact on their currencies, and thus, the entire forex market.
?As seen in the earthquake and tsunami in Japan, the financial meltdown of Southern Europe, and the recession in the US, currencies have become highly volatile because of these events.?? As someone searching for forex tips who want to get involved in the world of foreign currency trading, it is very important to keep abreast on what is happening in these countries.
?
Tip #2: Currencies do not exist in a vacuum.? They get affected by certain factors.
?As mentioned earlier, not just financial or economic news affects the trading of currencies.? The Tohoku earthquake and tsunami in 2011 dealt a big blow to the Japanese yen, which for more than a decade, has been suffering from the country?s stagnating economy.
?The Olympics in London has caused an increased consumer spending in the country, making the pound stronger.? As of 2011, the euro has been sliding, mainly because of the financial sector crisis in the continent.
?Moreover, it seems that China is pushing for its currency, the renminbi, to play a more active part in international trade.? These two factors are seen to have an adverse effect on the common European currency.
?
As seen in recent years, a global economic slowdown affects all currencies, but in varying degrees.? It is a matter of how each country adapts to the situation that their currencies might get more hit or will be saved from devaluation.
?
As someone who is looking for forex tips and wanting to profit out of the market, you need to be aware of how each currency is affected by world events.
?
Source: http://lifestylesecretreview.com/1forex-tips-for-the-neophyte-be-aware-of-whats-going-on/
bcs championship game beyonce baby detroit auto show tebow broncos ben roethlisberger downton abbey season 2 2013 dodge dart
No comments:
Post a Comment