Economic Fundamental Aspect

Economic Fundamental Aspect

Share market is very corporate dependant, we need to understand the corporate strategy, what is current corporate trend, who is managing the company? Is the company reliable? Is the annual report reflect true situation?
On the other hand, Forex market is economic dependant among countries. Unlike the financial, political and crisis factors, economic factors occur in a steady stream. Therefore, its very import to keep an eye on the economic announcement in order to make the enter and exit decision on your position.

10 Things You Should Beware of During Currency Trading:

Watch out of those who guarantee large profits. Stay away from those who promise no financial free Beware of those everything sounds very easy. Don’t trade on Margin unless you have been trained Please take cautious to online/phony transferring cash in online trading Make sure its really interbank market Job offer as Account Executive might lead you to use your money for currency trading Need to ensure the company background Avoid those company who won’t let you know their background Don’t fully trust any agency or broker, put some effort to understand currency trading by yourself.

Make Profit in Forex Trading

Foreign exchange trading is mainly about buy and sell activities. The theory is slightly similar with share market. To make the profit, there is the only way which is buy at lower price and sell at higher price, or we can also sell at higher price first and buy at lower price. Is it very easy? It is actually not that difficult. What we need to do is to analyze the forex in a correct way and do the good trade. Together with good money management and proper guideline, I can say that success will be eventually more on your side.
Sometimes, trader involves in foreign exchange not because of make profit but just do not want to lose money. Let me take an example, A US Construction Company want to build a subway in India and it is going to take about 7 years with $50 million construction cost. The first thing this company will do is to hedge the dollar value of the project. By buying or selling US dollar against the future market value, no matter how big the amplitude of the fluctuation, the company will not lose any money.