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View Full Version : Analyze Stocks Like Countries



oussama94
05-28-2017, 18:56
Trading currencies is not difficult for
fundamental traders, either. Countries can be analyzed just like stocks. For
example, if you analyze growth rates of stocks, you can use gross domestic
product (GDP) to analyze the growth rates of countries. If you analyzeinventory and production ratios, you can follow industrial production or
durable goods data. If you follow sales figures, you can analyze retail sales
data. As with a stock investment, it is better to invest in the currency of a
country that is growing faster and is in a better economic condition than
other countries. Currency prices reflect the balance of supply and demand
for currencies. Two of the primary factors affecting supply and demand of
currencies are interest rates and the overall strength of the economy. Economic
indicators such as GDP, foreign investment, and the trade balance
reflect the general health of an economy and are therefore responsible for
the underlying shifts in supply and demand for that currency. There is a
tremendous amount of data released at regular intervals, some of which is
more important than others. Data related to interest rates and international
trade is looked at the most closely