Diversification across different financial assets seems to be the rage today but is it really that important? Most gurus preach that you should diversify your capital across different asset bases such as commodities, property, stocks, CFDs, forex, hedge funds…etc and I have no doubt whatsoever that this is a sensible route to take but I do think that as far as trading is concerned diversification is not always the answer.
Many people consider sovereign debt to be as much about debt as it is about politics. The sovereign entity has obligations to people that live there, and some of these obligations will end up being more compelling than the obligations from a loan agreement or from a bond indenture. This means that the analogy to personal bankruptcy or even corporate bankruptcy will only get people so far.
2015 was an excellent year for the U.S. dollar. However, with just 5 trading days remaining, many investors wonder if will still be a smart trade in 2016 to be long on dollars. The month of December has been difficult, with dollar bulls struggling to stay in control. Interest rates have been raised for the very first time by the Federal Reserve since June 2006. However, instead of the dollar appreciating, it erased most of its gains from November. Many investors are now wondering if the dollar can’t be lifted by hawkish forward guidance and a rate hike, whether or not it is a foolish idea to purchase greenbacks in 2016.
Is there something like Holy Grail of trading? Some kind of „magic” procedures and strategies that would be 100% efficient, and that would allow you to avoid all mistakes and earn every time? We think you already know the answer. Of course no. Nobody can understand all aspects of the global market, simply because it is too complex and unpredictable. This is the reason why trading is one of the riskiest jobs you can imagine.
However, there are certain “impulses” you can use for making your trading decisions safer, more accurate and more profitable after all. These “impulses” can be described as signs that global market (or local one) sends in a real time, giving us opportunity to predict certain movements and make better moves. If we are talking about the stock market, then we can call them stock trading signals. And yes, stock trading signals can be “X factor” that can make a difference between successful and poor traders.
China has been making a protracted effort to liberalize both its currency and its capital account in the past few years. Now that the renminbi (RMB) is dropping, foreign reserves are running out, and capital outflow is picking up, it’s not certain that this reform policy can continue. Is China going to forge ahead or enter a more conservative cycle and wait for the markets to calm down? In our opinion, either possibility would have both good and bad points.
One of the most important tools and references that forex experts, buyers and sellers rely on are forex charts. Discover what a forex chart is and its key importance in the lucrative trading business in this informative post.
What is a Forex Chart?
Becoming successful in forex trading means investing in the study, audit, analysis and research of historical financial data to infer trends and changes that will happen in the future. One of the best ways to do that is by acquiring and collecting forex charts.
As major stock markets crashed in late 2007 before starting a rally in the month of March 2009, a lot of people who had believed in fundamental analysis began to questions its validity.
Elliott wave expert and famed technical analyst Robert Prechter has for a long time called the bear market we are currently in. In his view, the 2009 rally was a bear-market rally and not the start of a
First trading week as Tsunami hit first Asian market in afternoon came to Europe and at the end of day struck US market. Many analyst predicting new economic crisis wave which could be much higher of those in 2008. But what is really happening? China is reaching its potential, it will still grow but on smaller rates. Economy theorist at beginning of 20 century explained this: Every economy goes through several phases : Introduction, Growth, Maturity,
First trading day in 2016 brings slowdown in world economy. First PMI report caused China market close with -7% hit, that spirally effect hit European market and soon after Us market. What we can expect, as answer to weakling of Chinese economy Chinese governing can answer with further weakling of Yuan. This could effect on South Korea and Japan further weakling YEN/USD.