Supply and Demand – the fundamental cause of market movements
It’s easy for beginners to get caught up in exciting new words and to explore the intricacies of Fibonacci Bollinger exponential moving parabolic resistance zones, but perhaps equally important is asking yourself the question: what actually makes the price go up and down?
Taking this view not only gives you a better understanding of the financial system, but it also gives you a better understanding of how all other strategies work.
Supply is a term used to describe how much of something there is in existence, how many shares in a particular stock for example, how many government bonds have been issued, or how many units of currency there are in circulation. Supply is always finite. There is a limited number of shares in Apple. You can’t keep buying them infinitely, even if you had the money; eventually there won’t be any more to buy and you will own 100% of it! If you study economics, you’ll be familiar with a supply and demand diagram. In this case, the supply is fixed. It doesn’t matter how high or low the price is, the supply is always the same, as shown by the diagram.
Demand represents how much…
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Yulia10 avatar
Yulia10 18 May

good article

AND avatar
AND 19 May

Nice article! Thank you

Fizatata avatar
Fizatata 20 May

Nice, wish you stay winner????

nhamfx16 avatar
nhamfx16 21 May

Good article

AndreK avatar
AndreK 27 May

Good job.

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Year 2017 is closing and I am in mood for some light-hearted banter yet to write meaningful article. So here I go talking about some behavioral economics and its implication on forex trader and his trading. Behavioral economics in essence is a method of analysis that applies psychological aspect of human behavior on economic decision-making.
Although the terms mentioned in this article have wide implications in different economic decision making process, I will keep the scope of these terms to forex trading and investing only.
  • Framing

Fig. 1
Framing refers to how a trader perceives a forex movement of a pair. It’s a glass half full or glass half empty kind of situation(same as above comic strip). In last 2 weeks gbp/nzd is correcting from 1.98 to 1.90 zone. So when price retrace to 1.93, a trader may think, wow the pair is at 3% discount and will try to buy only to find price go even lower. So it is important to see that pair is in strong corrective mode after more than 10% rise in last 2 months.
The key is to perceive the market correctly and never feel that “I am most intelligent”. Follow technical’s and wait for the pair to form a support/resistance in strong correction / r…
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Yuliya_N avatar
Yuliya_N 3 Jan.

Very nice article. Good job friend!

Annyrio avatar
Annyrio 3 Jan.

Very good!!!

hrustiashka avatar

Well written article!

Vlad73 avatar
Vlad73 8 Jan.

well done

Siarhei89 avatar
Siarhei89 14 Jan.

good article!!!

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The global economy is in turmoil and central banks from the breath and width of the globe are struggling to spur economic growth in 2016. They have deployed most the weapons in their arsenal in a desperate attempt to spark economic growth, including negative interest rates and massive stimulus packages but the much need growth remains elusive. Consequently, central banks are looking for new ways to spark economic growth, and the use of unconventional means such as "helicopter money," have become topical issues.
This article seeks to demystify the concept of helicopter money, making it clearer and easier to understand to the ordinary person.

What is Helicopter Money?

Helicopter money is a reference to an idea made popular by the American economist Milton Friedman in 1969 in his paper “The Optimum Quantity of Money.”
The basic principle is that if a central bank wants to raise inflation and output in an economy that is running substantially below potential or targeted levels, one of the most effective tools would be simply to give everyone direct money transfers. In theory, people would see this as a permanent one-off expansion of the amount of money in circulat…
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Natalia_Kisenko avatar

well done!

olya2517 avatar
olya2517 23 Sep.

very good

Armands avatar
Armands 25 Sep.

Instead of giving more money directly to everyone, they give it to selected ones!

VictoriaVika avatar

great article!

Sharpshooter avatar

Точно. Так и вливают они обычно)

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I have decided to write a follow up to my previous article about GBP due to the fact that last week there was important news coming from the UK which gives insight into the upcoming monetary policy of the Bank of England.
The week in review
On the 14th of July we saw the release of the Consumer Price Index for June which disappointed as it retreated to 0.0% YoY and MoM from 0.1% growth in May. Although the reading was better than in April which saw a drop of -0.1% which was the lowest level in over 50 years, the retreat comes in as a hindrance to the plan of the BoE of embarking on a rate hike schedule. The core CPI, which measures price changes among energy, food, alcohol and tobacco, has slowed to0.8% from 0.9% in May.
These data releases gave a bearish perspective for the GBP. However, afterwards the governor of Bank of England MarkCarney said in his statement that the BoE expects inflation to pick up later this year when the effects of lower oil and food prices subside. Thus, the time for interest rate hikes, which are going to be gradual, is coming closer, however he did not specify when. He said, "the point at which interest rates may begin to rise is moving closer with the p…
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Milian avatar
Milian 28 July


pipx avatar
pipx 28 July

I was sure the cable would hit 1.6 and went long this month in the trader contest boy was I wrong :-) In August I believe it will. Lets wait and see

WallStreet6 avatar

Thanks:) Yes, I think it may continue to appreciate in August and maybe even hit the 1.60 level. Especially that today's GDP came on target. But later on I think it will go the other way:)

sarah_gio avatar
sarah_gio 29 July


Margoshka avatar
Margoshka 30 July

very interesting

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United Kingdom economy has been struggling ever since the financial crisis was triggered there with the bank run on Northern Rock in 2008. The Bank of England had to adjust to an expansive monetary policy in order to avoid further slowdown of the economy. It has introduced the quantitative easing program in 2009 and since March 2009 the interest rates have been at it’s historic record low of 0.5%. On the 9th of July 2015 the Bank of England has kept interest rates and asset purchasing program unchanged at 0.5% and 375 billion pounds respectively. Analysts predict that the earliest date for a rate hike could be August 2016.
Last week we saw the GBP/EUR drop by 0.98% (biggest weekly drop since June 5th) and the GBP/USD by 0.4% (3rd consecutive weekly drop). But more importantly last week the GBP/USD has broken the upward trend line on which it embarked on at the beginning of April and is currently below it.
Last week 10 year UK bonds prices depreciated (yields rose by 0.08 percentage points to 2.08%) amid less demand for safe haven assets due to the improvement in negotiation talks between Greece and it’s creditors. Lower demand was also due to the fact, that the planne…
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ivanbgd avatar
ivanbgd 28 July


al_dcdemo avatar
al_dcdemo 28 July

Useful information and very well written. Great article!

Milian avatar
Milian 28 July

good work!))

piter44 avatar
piter44 29 July

superb +1

Margoshka avatar
Margoshka 30 July


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