APPROACH TO FOREX MARKET

Stock Assault 2.0 - Artificial Intelligence Stock Market Software

forex-chartFor now, one of the most popular fields of trading (includes on-line trading) is the FOREX.

So what the FOREX Is and how to work with it?

FOREX stands for “foreign exchange“, means global currencies market. This market field has been revolutionized by the creation of the Internet.

Actually, Foreign Exchange Market is not a really new concept – for a hundreds years people changing their currencies. But in last decades, when currency trading is available online, it turns to a huge global field of investment and marketing.

There are few very specific points related to this type of on-line marketing
First of all, it’s good to know what the FOREX Market is the largest in the world – approximately as much as two trillion dollars daily! Which means - it includes much more than stocks and bonds market all together. And the good news in it – the FOREX marker can’t be influenced from any man or company or even group of huge financial corporations (as sometimes stock market does).

There is one more specific point about the FOREX Market – unlike any other market it has no any physical location (located in the virtual space of the global web), so it has no any central exchange either.

And, as an extension on the previous point – the FOREX Market works 24 hours a day, because the on-line trading passing through networks of corporations, banks and computer systems of individuals, trading currency one for another.
And the most important tip, related to the FOREX – in opposite to other kinds of markets (stocks, bonds etc), this market is totally speculative! At FOREX Market you trading something you do not really have (same as your counterparts do)! When you opening an account in any FOPEX brokerage house – you can get a margin (support) from your broker up to 1/100 (to each your dollar the brokerage house adds 100), so you can start with 100$ and trade like a millionaire! On one hand – it is very convenient, but on another – the FOREX Market very strongly influenced from numerous external factors and that’s why it is extremely unstable!

The external factors, determining the FOREX trading:

  • Political Situation
    Currency stability always requires political stability. Any single rumor or even minor sign of political instability in any country is going to have a negative impact on a nation’s currency. 
  • Economic Factors
    For sure, one of the greatest factors, determining currency stability, is the economic situation in certain country.  This may include the unemployment levels, inflation levels, government’s budget problems, balance of trends and trades on the inner market etc.
One useful tip for FOREX trader – in general, currency market  is opposite to the stock market (when stocks are falling down – people use to buy a currency), which means – if you want to know what is the next change in a currency trends – search the stocks!

  • Market Psychology
    All markets are influenced by perceptions of traders and market psychology, but the FOREX Market is something special! This market is really hysteric and flippant.  Any stupid rumor, “selling the fact”, some minor change in any global or local parameter may break the trend and bring to the significant changing of currency situation!
  • Technical Factors
  1. Lack of trustable information: Unlike with the stock market, the FOREX is very short or no at all insider information.  The fluctuations in the exchange rate of currency are caused by money changing hands and what people expect will happen in regards to money flows.
  2. Electronic invasions: at the last time the Forex Market flooded with electronic autopilot systems – brokering robots, created to read as quickly as possible the market signals and charts, and trade automatically. These systems may be rather beneficial for some beginners, but they also may cut incomes to other (non-robotic) traders.