When you talk with the more successful investors and traders in the Forex market many of them will lay claim to the forex report predicting price movement that the driving force behind their success has been their ability to skillfully predict the movements in the market. Normally, the stronger a country’s economy is, the greater the possibility that its central banks will raise interest rates in order to arrest inflationary growth. The higher those interest rates go, the greater the participation by investors in that country’s financial marketplaces.
Nothing deters a person from looking at the business section in the local tabloids more than boring economic statistics and dull accounting numbers. Well, to offset this disdain, you’ll be happy to know that the currency exchange market is the only one of the global financial markets that can be successfully traded by virtue of political as well as economic news. Remember that currencies are representative of countries rather than companies. The value of a country’s currency increases coincidentally with a rise in interest rates. The increased value of the currency reflects what is called capital appreciation, and this consequently affords the investor the opportunity to profit. Every currency rate comes packaged with an interest rate attached.
This is considered the least important of the five factors when it comes to predicting the direction that a currency rate will travel in. However, it is oftentimes the most powerful force where near-term currency moves are considered. Mergers and acquisitions occur when a company from one economic region wants to purchase a corporation in another country. The wise investor will keep on top of this sort of activity in that it helps to predict short-term movements in the Forex market. Capital flow refers to the amount of investment a country receives from international sources. Trade flow is the income resulting from trade. Some countries can be very dependent their capital flow, while other countries are extremely sensitive to trade flows.
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Please include your IP address in your email. How do forex traders predict price? Attachments: Why it is possible to predict price movement? Why it is possible to predict price movement? This sounds a simple question, but it is not indeed. There are a lot of trading methods claim working.
Nevertheless, I wonder in general what logic these methods based on in predicting price movement. Can anyone give me a good answer? If it was, then wallstreet wouldn’t have lost during the burst of the housing bubble. And they are supposed to be professionals with endless amounts of resources.
I think it is possible to predict price movement, but only half of the time. In the rest it goes in your opposite direction. It was a disaster, they were losing hundreds of pips. In my opinion, speculators are moving the markets to make max money out of it and this means most people will lose money. If the markets were not controlled by the few, if they were moving naturally then it would be possible to predict price movement. I wonder in general what logic these methods based on in predicting price movement.