How to identify when and what currency is better to buy and when and what currency is better to sell?
In order to know what, when and how to buy and sell, you had better learn to draw conclusions
on market situation using the information available to you. There exist several methods.
Forex situation as we already mentioned affect many factors, and particularly strong and rich people. For example, big financiers, real grandmasters like George Soros can change the quotation dynamics for their purposes. They can play upon human nature and have enough money. They provoke panic on market (or on the contrary lull the vigilance) and then we have a headache which only ice can cure. And they earn money on this. To cut a long story short they have made all the conclusions on exchange rates and our behavior in advance - before the events the whole world would then scratch head over.
The conclusions can be drawn basing on intuition (if you are a speculator by nature) or on simple assumptions. For example, Swiss franc went up by one cent yesterday and by one more today. Consequently it is very likely to go up again by one cent tomorrow.
And finally the conclusions and money can be made on the knowledge of the world financial and economic system laws. You are lucky if you are an economist by education. But it does not matter if you failed to ever read relevant books. Certainly, you will fail to become a financial magician within a few days. And we do not promise this. Promise means deception. It is impossible to become a great one in a second, though one can strive for it. If you have such urge then the foundation van be considered laid. You are sure to get basic economic knowledge. And also you will have a try to learn trader software (currency trader). You will learn to free and easily transform quotation changes into graphic diagrams. You will do this not without the help of such instrument as MetaTrader-4, and of the best thing you have - your brain! Speaking about the programs they can be downloaded for free at any time from our website - www.nordfx.com. As for brain… It is exclusively within your competence!
"Knowledge nut is hard. But you are not used to retreat!.."
However, if you want to know more vivid examples, here you are! Refresh your memory and remember Monica Lewinsky. Yes, exactly the one… But let us have a look at that as a professional currency trader. The diagram of the dollar exchange rate towards the Swiss franc proves very expressively what a great influence the relationship between Monica and the president had on the world economy. When it unexpectedly became clear that Bill Clinton, a president of a great nation, is a normal person having emotions, everyone rushed to discuss this matter…
Sex in the Oval Office and the consequent threat of impeachment and playboy Number 1 resignation cost an arm and a leg to the American currency. The event that evoked positive emotions in two people, evoked sadness and grief in the USA citizens and the greater grief in the financial markets participants. The investors all over the world were especially upset. You see, they are conservative by nature and do not like when the heads of such rank are replaced. Therefore, when the scandal happened the dollar took the plunge. Certainly, the Congress came to its senses and decided that there shall be no impeachment (resignation). That was the time when the dollar revived again, just as if nothing had happened. But America was appreciably shaken…