Currency Speculation in its highest form is far from a flip of a coin. Believe it or not, the forex markets actually have a strong degree of logic and science to them that insures that the basic premises of economics are to be respected and followed with the utmost care. A lot of stock traders have to put up with the notion that they are just gambling and that there is no fundamental reason to choose to sell or buy a stock besides a hunch. This is not true and I feel for my fellow traders even though it is not the same as currency trading.
Currency trading is an art form in a way. People like George Soros one of the finest artists in his day. There are so many moving parts to the actual prediction of which way a currency pair is going to move in X amount of time that it takes the cake as one of the most complicated forms of trading. The amount of patience required to trade forex is immense. The foreign exchange market does not move nearly as fast as the stock market. The other fact that is of importance is that there is more money traded in foreign exchange than any other market. Trillions of dollars a day but guess what. In the infinite wisdom of the brokers of this market. A person can trade for as little as 10 cents a tick. Some brokers even offer cent accounts where you can trade for less than a penny. What does that do ? It allows the novice forex trader to study, research, and trade based on economic theory.
A trader can actually trade as if they were the head economist at a major international bank. What is one of the main things that banks do in the forex market ? In a nut shell, they move money. For what ever reason they have to place trades at certain times in order to keep their books orderly and provide the best service to their clients. The other side of it is Central Banks and interest rates. Countries are keenly aware of how the price of their currency is doing compared to their economic environment and the mechanizations that keep an economy running smoothly.
So it is a sophisticated system that takes a lot of studying to be able to participate. There is no traditional school for forex trading. Most people open an account, search on the internet for what they hope is good advice, and start trading. Very rarely do they get the kind of input that they need in order to make it. That is the order of things and it has been that way for hundreds of years. Before I was born currency speculators were doing there thing in financial centers like London. So what does the current Coronavirus epidemic do to the foreign exchange market ? Well, it makes it harder to see what a countries economic profile will look like in a few months or a year. It is also harder to anticipate which business owners will be able to take advantage of doing business on the internet. Think of that for a minute. Can you imagine going through this epidemic without the benefit of cell phones and personal computers hooked up to the internet. I still do not believe people fully understand just how important the internet is to the framework of our society.
Currency Speculation will make it because the economists will do their jobs for the banks, governments, and hedge funds. They will make sense of what we are all going through and like Einstein would say, relativity is very important. It will come down to which country is in the best position to find their way through this dilemma. Which country is closer aligned to the fundamentals of how our financial system runs. It is not a great time for highly sophisticated economies in the forex market. They have so many moving parts and the Bull Market went for so long and they got so big that this is just one huge melt down. That is where institutions like the Federal Reserve come in. This is what they were created for.
I was talking to my brother the other day. His name is Washington. I asked him. Do you think the Coronavirus(Covid-19) came out of a lab in China. He said that it might be true because of how the Chinese reacted to the situation as if they knew more than they were letting on. I could not agree with him at the time because I though to myself. Why would they unleash something this awful and put their own economy in trouble. That is not something a country wants to do from a currency speculators point of view. Now to be honest, the question I asked my brother was, do you think it came out of a lab ? The little that I know about the lab is that they were not working on any virus that even remotely resembled the Coronavirus.
Australia's Prime Minister Scott Morrison has called for an investigation into China's handling of the virus epidemic. This could get messy and I hope that calmer heads will prevail.
Follow Clifford Bryan on Twitter
Currency trading is an art form in a way. People like George Soros one of the finest artists in his day. There are so many moving parts to the actual prediction of which way a currency pair is going to move in X amount of time that it takes the cake as one of the most complicated forms of trading. The amount of patience required to trade forex is immense. The foreign exchange market does not move nearly as fast as the stock market. The other fact that is of importance is that there is more money traded in foreign exchange than any other market. Trillions of dollars a day but guess what. In the infinite wisdom of the brokers of this market. A person can trade for as little as 10 cents a tick. Some brokers even offer cent accounts where you can trade for less than a penny. What does that do ? It allows the novice forex trader to study, research, and trade based on economic theory.
A trader can actually trade as if they were the head economist at a major international bank. What is one of the main things that banks do in the forex market ? In a nut shell, they move money. For what ever reason they have to place trades at certain times in order to keep their books orderly and provide the best service to their clients. The other side of it is Central Banks and interest rates. Countries are keenly aware of how the price of their currency is doing compared to their economic environment and the mechanizations that keep an economy running smoothly.
So it is a sophisticated system that takes a lot of studying to be able to participate. There is no traditional school for forex trading. Most people open an account, search on the internet for what they hope is good advice, and start trading. Very rarely do they get the kind of input that they need in order to make it. That is the order of things and it has been that way for hundreds of years. Before I was born currency speculators were doing there thing in financial centers like London. So what does the current Coronavirus epidemic do to the foreign exchange market ? Well, it makes it harder to see what a countries economic profile will look like in a few months or a year. It is also harder to anticipate which business owners will be able to take advantage of doing business on the internet. Think of that for a minute. Can you imagine going through this epidemic without the benefit of cell phones and personal computers hooked up to the internet. I still do not believe people fully understand just how important the internet is to the framework of our society.
Currency Speculation will make it because the economists will do their jobs for the banks, governments, and hedge funds. They will make sense of what we are all going through and like Einstein would say, relativity is very important. It will come down to which country is in the best position to find their way through this dilemma. Which country is closer aligned to the fundamentals of how our financial system runs. It is not a great time for highly sophisticated economies in the forex market. They have so many moving parts and the Bull Market went for so long and they got so big that this is just one huge melt down. That is where institutions like the Federal Reserve come in. This is what they were created for.
I was talking to my brother the other day. His name is Washington. I asked him. Do you think the Coronavirus(Covid-19) came out of a lab in China. He said that it might be true because of how the Chinese reacted to the situation as if they knew more than they were letting on. I could not agree with him at the time because I though to myself. Why would they unleash something this awful and put their own economy in trouble. That is not something a country wants to do from a currency speculators point of view. Now to be honest, the question I asked my brother was, do you think it came out of a lab ? The little that I know about the lab is that they were not working on any virus that even remotely resembled the Coronavirus.
Australia's Prime Minister Scott Morrison has called for an investigation into China's handling of the virus epidemic. This could get messy and I hope that calmer heads will prevail.
 |
| Currency Speculation |
Comments
Post a Comment