Category: Money Tips Date: 2006-07-06
A lot of investors on the fundamental analysis and technical analysis of the relationship is not an accurate understanding. In fact, the stock market in the foreign exchange Ye Hao Ye Hao In order to see the true face of the market analysis is the lack of the two can not.
The so-called fundamental analysis in currency markets just want to know the target currency supply and demand process. Currency with a commodity which, like oversupply, they fell, in short supply on the rise. Given that a simple relationship, we need to study is, first, the relationship between supply and, secondly, the relationship between the demand. Other issues simply do not need reasons. Supply relationship is not difficult to understand. As long as the Fed's Web site to see a month White reported out of sunspots. Suppose the demand for dollars remains unchanged, the Fed began to increase the money supply, there are two market response. Stocks will rise, the dollar will be soft. Reduction in money supply, the dollar will be stable, or liters. The time difference of about two months, that is, the market response to slow changes in the money supply for two months. Therefore, studies of money supply every month in the financial markets, experts of the first thing to do. Aware of the money supply situation in the future, the next step is to study the relationship between the demand. This is more problematic due to the study of things that many questions. A money demand is determined that the attractiveness of the currency. The attractiveness of the currency which is to see first, value-added potential, second, the real interest rate direction. In order to look at the prospects for the currency monetary assets should first look at that prospect. The potential value of the assets that the country depends on the stock market, real estate market, bond market's prospects. In other words, the economic outlook is good, value-added potential, the potential for higher real interest rates is the increase in demand, that country's monetary potential is going up. Depends on the economic outlook, look at the employment / unemployment, national productivity, political stability, the international trade, the interest rate cycle, foreign capital inflows, domestic financing conditions, etc. to go. Understanding of the relationship between supply and demand for money and long-term future will have a sense of direction. This is known as fundamental analysis of the basic skills. A great need and very simple things. For example, the recent U.S. money supply to stabilize the U.S. dollar began to stabilize, the stock market weakness continues.
With regard to technical analysis, technical analysis is based on "because in the past such as graphics or technical information into the results of one kind or another, so now of such kind of graph may also be developed to the results of the past, the same" theory. Even some technical analysis were also confident that everything is reflected in the price inside, do not study anything else, as long as the study of price and graphics, or some of the indicators on the line. In the foreign exchange account for the vast majority of such investors. (The problem is most of the market is always a losing one?). Technical analysis focuses on the past to be thoroughly familiar with a variety of graphics and other technical information to their applications in the real situation. The number of hit rate, that depends on each person's good fortune.
The analysis predicted that no matter how less is the short / medium / long-term emergencies. For example, a major earthquake in Japan in serious condition. Or 911 events. Or a war in the Taiwan Strait contingencies. Or central bank intervention. Publication of data and so on. Some rely on big special intelligence to deal with these unexpected events. Small households no this capability, they can only be following the market. Things can only act according to circumstances.
In any event, in the investment market will always have to follow the trend to go before they can make money. With which the trend of a time frame that depends on the choice of each investor. So simple that the direction fundamental analysis, technical analysis identified with the basic direction of the road after another winding journey. Fundamental analysis and technical analysis of the combination of sights, it will improve the hit rate trends.
