Elliott Wave Theory was developed by Ralph Nelson Elliott by discovering that stock markets, thought to behave in a somewhat chaotic manner, in fact traded in repetitive cycles. Elliott discovered that these market cycles resulted from investors' reactions to outside influences, or predominant psychology of the masses at the time. He found that the upward and downward … [Read more...]
Archives for 28/10/2009
Financial instruments for Forex
Spot A spot transaction is a two-day delivery transaction , as opposed to the futures contracts, which are usually three months. This trade represents a “direct exchange” between two currencies, has the shortest time frame, involves cash rather than a contract; and interest is not included in the agreed-upon transaction. The data for this study come from the spot market. Spot … [Read more...]
Market psychology Of Foreign exchange trading
Market psychology and trader perceptions influence the foreign exchange market in a variety of ways: Flights to quality Unsettling international events can lead to a "flight to quality," with investors seeking a "safe haven." There will be a greater demand, thus a higher price, for currencies perceived as stronger over their relatively weaker counterparts. The Swiss franc … [Read more...]
Forex Trading
The foreign exchange market (currency, forex, or FX) trades currencies. It lets banks and other institutions easily buy and sell currencies. The purpose of the foreign exchange market is to help international trade and investment. A foreign exchange market helps businesses convert one currency to another. In a typical foreign exchange transaction a party purchases a … [Read more...]
Stock market myths
Many investors wonder whether or not investing in stocks is worth at all the hassle. At the same time, however, it's important to keep a realistic view of the stock market. Regardless of the real problems, common myths about the stock market often arises. Here we go over these myths in order to burst them. 1) Investing in stocks and gambling are alike This reasoning … [Read more...]