There are unlimited number of factors that can cause the stock market to move significantly in one direction or another. This can include things like economic data, geopolitical events and market sentiment, among a myriad of other factors. There is a constant in each of these situations, however. In any stock market move, whether up or down, there is a significant difference … [Read more...]
Elliott Wave Theory – the concept
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...]
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...]