Forex Trading is hard in the measure of your commitment, dedication, patience, and persistence. More you work with Dedication for the long-term, less hard becomes the Forex Trading.
How relevant would this be today?
I also think that we will soon see inflation. If you are a trader, you better be prepared for your next moves.
Exactly. You have to combine some tools to make a profit. Without these, risk and money management cannot be maintained. So I always like to trade with a trading plan.
Whatever be the situation, forex traders will eventually find their way out.
Frankly, it is hard to predict the market. If the market predictions are accurate and correct, economists would find some ways to re-balance it and prepare themselves for anything that happens. With the lesser demand of the currency, the value will reduce and hence, affect forex trades.
Yep, Forex traders are quite adaptive and inflation don’t scary them.
Could be a relevant forex lesson:
Forex depends on supply and demand. You better keep an eye on that. Inflation leads to increase in price levels. This would definitely lead to a decrease in the value of the currency. This might affect our trades as we won’t be getting an exchange rate that would be in our favour.
Of Course yes, @loistchiggle. Movements in forex currencies are due to the economic activities in the nations which are dependent on the supply and demand of various goods and products. Thus inflation is like a chain reaction of such economic activities and events.
I agree with you on 100%. The market is really hard to predict. Inflation maily influence the national currency thus investors give up any ideas to buy it and the price goes up. Here we are able to start a bullish trend because someday inflation will end and the price of this currency will be very high, especially when we speak about some major currencies. It’s a good opportunity to buy it at a low price and then sell at a higher price. Otherwise there is also a risk that this particular currency will drop down more and trader will have to take losses. That’s why is almost impossible to foresee the price movement during inflation.
any changes in the market are completely related to forex and, as a result, to your transactions, inflation is also included here
We know that inflation it’s always an increasement in prices, but not in all prices, some of them remain stable. Inflation is followed by increasement of CPI. Despite the fact that during inflation companies revenues can increase it’s not always a bullish factor for share holders, as this increase is more nominal rather than real. If we speak about currency, then the impact of inflation reports on currencies is less consistent. Usually a small rise in inflation strengthens a currency if it promises a rise in short-term interest rates. In the case of healthy economic growth and rising interest rates, the local currency becomes more attractive to investors. But if interest rates rise strongly because of fears of excessive inflation, it can weaken the local currency.
You just need to keep track of the currencies you trade with. It should be immediately understood that this is a rather important aspect.
Inflation is closely related to interest rates, which can influence exchange rates.
My favorite topic, I’ll listen to it.