Archive for July, 2009
Charisma, Leadership and the Forex Market
During this past week, some reports published on the United Kingdom have made clear that the recovery from the world financial recession is not an imminent as we thought it would be.
The GDP has been the lowest one ever recorded in the UK and the unemployment rates are also rising. This data has not stopped Britain’s Prime Minister, Gordon Brown, to refer to the “recovery” while talking to a large group of reporters.
And he is not the only world leader on this economical global crisis that is speaking as there is no crisis, look at Obama or Triche, they prefer to assume the recovery is in its way, whether to present other possible options to the public… I think in a sense, Angela Merkel and Nicolas Sarcozy are more downers than their colleagues.
Yes, as a forex trader, it is a bit alarming to know that, as I already pointed out on former posts the psychological and political individual factors play a much more predominant rule than we would have thought of.
And coming to think of it, this is not a new leaders’ syndrome, history has seen many leaders that preferred to ignore the facts rather to confront them.
Personally, I always prefer directness and authenticity over charm, and it seems, I am not the only one, only two weeks ago an article about this subject was published on the Times Magazine, called “No Charisma? Don’t Worry, You Can Still be a leader” somehow, I get a bit afraid of politicians that are too charismatic…
So let’s wait and see what happens, whether the serenity and charisma of our leaders will be proven right, in any case, I would recommend every forex trader to make his decisions based on his own judgment, and not on the charm and charisma of your leaders…
The USD and the JPY – two “safe haven currencies”
Last week were published at the US positive reports concerning corporate earnings (among them considerable profits gained by the giant 3M), along with positive home sales data. Consequently to these good news, the stock market rose significantly and the dollar gained broadly in a hectic forex trading day last Thursday.
The fact that the dollar raised along with the stock markets is a rather surprising one, since it is considered as a “safe haven currency” preferred by Forex traders and investors at times were the market is volatile (personally, I find a bit odd the fact that the USD adopts at most time a tendency opposite to the general stock market mood).
In any case, last Thursday the dollar raised along with the stock market which is an interesting change. let’s wait and see if this new symptom will became a new trend…
From his side, the Japanese Yen behaved last week as a traditional “safe haven currency”… i.e., it went down as consequence of the new positive data regarding corporate earnings and home sales at the US. from its part, the Yen is expected to have some relatively tight range in view of the elections that will take place in August 2009 in Japan. Let’s all remember that a climax of political uncertainty always affects the currency trading markets.
My personal advice, as always, is to keep being updated about all the financial and political events so to have an idea of the general trend of main currencies and, at the same time, keep track after new tendencies or potential patterns of specific currencies. The relatively new phenomena of the dollar raising along the stock market, let’s see whether this is becoming a regular thing or punctual.
Let’s remember that trading at the forex market requests keeping informed at all times about financial and political events, it is not a speculative activity that occurs on a void, or a gambling activity based on pure luck…
Trading Forex? go get the info
When trading at the Forex market, the key factor is being updated.
Many people believe that in order to succeed in forex you should be able to PREDICT. As a matter of fact, one of the attractive sides of this sector is that, in contrast to pure luck activities like gambling, at the forex market you are required to master additional skills, such as knowledge of the market and being updated on the latest financial and economic events and developments (and of course – being able to analyze it’s emphasis).
Forex cannot be based on predictions and pure luck, we are not talking here about tarot reading or gambling – this is a complex field that is nurtured by a huge amount of data and factors that are in constant change and are influenced by geographical events in the whole world since the marked is, as a matter of fact, a kind of “universal” market, without geographical or physical boundaries.
Just to let you know, the Forex online trading is active 24 hours a day, 7 days per week and it envolves huge huge sums of money every day, equivalent to 3 trillion dollars…
If you want to win in Forex, the best you can do is, as said, to keep yourself updated at all times in the most exhaustive way that you can… (today that should not be a problem, having in mind the huge amount of sites, blogs, Forex guide, newspapers, financial and economic Internet spaces). It is no chance that most forex agencies and online forex sites provide their traders a service of updated foreign exchange newsletters and updates around the clock.
On the other hand, many are the people who believe forex is a kind of “science” that behaves according to scientific laws, i.e., fundamental analysis, Fibonacci, Elliot and Gann theories… the forex e-books, tutorials and manuals are full of those… What can I say, don’t believe the trading in foreign exchange is an exact science either (as i wrote in my previous post)… as I see it, the truth remains in the middle somewhere, and the KEY is information, information and more information!