Archive: June, 2010

Few months ago, we all learnt what happens when an economy (government, to be precise) spends more than its means. The recent increase in debt level would result in inflation, lower standard of living, currency devaluation, and so on. This is certainly not a good sign for an economy. Although our President, Barack Obama, is taking several measures to smoothen the economic conditions, US national debt is mounting incessantly. Annual deficit increases due to several years of faulty management, and it certainly cannot be rectified in a short period. When the debt level of a country exceeds its GDP (Gross Domestic Product), the debt is simply too high. Greece is going through such similar situation. The debt owed by the nation is much more than what it earns. Besides, when such crisis occurs, the nation cannot boost the economy by printing more currency or borrow funds by issuing bonds.  [...]

Considered to be a highly volatile market, Forex is also the most liquid market on our planet. This is because the global population including corporate bodies, financial institutions, governments, and individuals trade in foreign currency. However, due to its extremely volatile nature, it’s very difficult to predict the market movements. This market, however, reacts to some global factors. Knowing how it affects foreign currency exchange rates can help you exit before loss and enter just at the right time. Let us have a look at some of the factors that affect Forex market. Economy Foreign exchange rate of a currency is highly depended on the revenue earned by the country. If there is a stable inflow of revenue every year, the rate would remain steady, with a gradual growth. However, if the financial condition of a country is unstable, the currency would lose its value against other  [...]

For beginners, a stock chart is an essential tool to start investing in equities. This chart keeps updating stock movements during trading hours, helping investors gauge the fluctuations instantly. However, it become difficult for a beginners to read stock charts if they don’t possess appropriate knowledge. For them, it would simply be a bunch of colorful lines. If, however, you are a trained observer, these lines are powerful indications of a company’s performance. For most traders, it’s a crucial tool. There are several types of stock charts used to indicate stock movements. Before we try to understand each of them, it’s important to note that these charts, regardless of their type, share similar axes. The horizontal line or x-axis indicates time, while the vertical line or y-axis talks about price movements. Hence, each chart must be read from right to left. The simplest amongst  [...]