Posted on 07 July 2012.
The stock exchange only runs during the week and only part of the day, unlike the Foreign Exchange (FOREX) which is available nearly anytime an investor wishes to do some FOREX investing. The ability to trade internationally opens up a whole host of possibilities for the savvy investor. Foreign events have some impact on the New York Stock Exchange (NYSE), but not nearly as much of an impact as the events do on the FOREX. The FOREX provides opportunities for serious trend analysis as political and economic events in one country will have a major impact on another country.
The state of government within a country can have a major impact on the value of companies with major holdings in that country. Currencies can fluctuate wildly when a nation is in turmoil and being able to spot uprisings and other major political shifts is one way to get ahead in FOREX investing. Skilled investors will focus heavily on the political happenings in different countries; savvy investors will begin trying to understand how much impact one currency will have on another. Understanding how all the countries are interwoven in an economical sense is where a savvy investor will profit on a constant basis.
The FOREX can be an intimidating area of the stock market to deal with; there are people all around the world trying to beat their fellow investors to the punch and score the biggest returns. US companies with major holdings in a foreign country can have an impact on the value of the country’s currency; this is why it is important to know which big companies have manufacturing plants in which countries. If a major blue chip is opening up new factories in a foreign country then it is a safe bet that the country will be making a move on the FOREX; this is the sort of thing people look for when they are FOREX investing.
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