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| Are the Guarantees Guaranteed for Forex Account Invested? |
Are the Guarantees Guaranteed for Forex Account Invested?
In
the short run these business developments mean less money to play with less
disposable household income and ultimately a lower economic growth rate.
However, this slows inflation and slows down the inevitable accumulation of
debt, which is a very good thing in the long run. Alternatively, when interest
rates are cut off, all market participants borrow more. For the moment, a lot
of money is created and the exchange rate is reduced.
Short Term Situation
In
the short term, this means expansion, increased household spending and a
growing economy. More money borrowed means more money. In the long run, the
accumulated bank loan creates a financial crisis like a big storm at the heart
of everyone. This is called the macroeconomic cycle. This pinnacle is common to
all capitalist type economies. National banks are periodically trying to
balance the scales by raising and lowering interest rates. This is called
micro-economic cycle. These economic cycles are very similar to cycles of
climate change – very dangerous that they can not be slow, unstoppable and
unable to reach market participants.
Analysis Key
The
analysis is not just the key to the success of trading, but the analysis is, to
some extent, the only thing that really works in Forex trading. The two main
branches of market analysis are basic analysis and technical analysis. Basic
analysis is a form of financial control that evolves only on a country scale or
sometimes world-wide. This is the oldest price estimate that examines the
various elements of the economy. Current stage in the cycle, related events,
future prognosis and possible impact on the market.
Basic
analysis concerns an individual’s GDP and unemployment rates, interest rates
and export volumes, wars, elections, natural disasters and economic
developments. The impact is predominant in terms of impact on supply and
demand. For example, recent developments in schist oil drilling technology are
promising a steady and growing supply of oil, which now and in the near future
will cause oil prices to fall to a ten-year low in the winter of 2014/15. Basic
analysis requires an understanding of the international economy and deals with
factors that are not yet disclosed by the market. This anaysis school is
working for investment and long term trading.
disadvantages
The
disadvantage of such analyzes is the uncertainty created by many entrances. The
advantage of the basic analysis is that it predicts basic price movements that,
when done correctly, can help to achieve profit over a long period of time.
Technical analysis is a younger market analysis that deals only with two
variables (time and price). Both are precisely measurable, accounted and
undeniable facts by the market. For this reason, many Forex trades work better
when doing graphical studies than doing economic research.
