Pakistan Forum
HomeCalendarFAQSearchMemberlistUsergroupsRegisterLog in

Share | 
 

 Market psychology

View previous topic View next topic Go down 
AuthorMessage
imagine_raza



Posts : 99
Join date : 2010-07-18

PostSubject: Market psychology   Mon Jul 19, 2010 8:16 pm

# Flights to quality: Unsettling international events can lead to a "flight to quality," with investors seeking a "safe haven." There will be a greater demand, thus a higher price, for currencies perceived as stronger over their relatively weaker counterparts. The U.S. dollar, Swiss franc and gold have been traditional safe havens during times of political or economic uncertainty.[14]
# Long-term trends: Currency markets often move in visible long-term trends. Although currencies do not have an annual growing season like physical commodities, business cycles do make themselves felt. Cycle analysis looks at longer-term price trends that may rise from economic or political trends.[15]
# "Buy the rumor, sell the fact": This market truism can apply to many currency situations. It is the tendency for the price of a currency to reflect the impact of a particular action before it occurs and, when the anticipated event comes to pass, react in exactly the opposite direction. This may also be referred to as a market being "oversold" or "overbought".[16] To buy the rumor or sell the fact can also be an example of the cognitive bias known as anchoring, when investors focus too much on the relevance of outside events to currency prices.
# Economic numbers: While economic numbers can certainly reflect economic policy, some reports and numbers take on a talisman-like effect: the number itself becomes important to market psychology and may have an immediate impact on short-term market moves. "What to watch" can change over time. In recent years, for example, money supply, employment, trade balance figures and inflation numbers have all taken turns in the spotlight.
# Technical trading considerations: As in other markets, the accumulated price movements in a currency pair such as EUR/USD can form apparent patterns that traders may attempt to use. Many traders study price charts in order to identify such pattern
Back to top Go down
View user profile
sadiaali



Posts : 109
Join date : 2012-01-17
Location : Karachi,Pakistan

PostSubject: Re: Market psychology   Tue Jan 31, 2012 3:06 am

i don't understand this thread hope it''s good or not.
Back to top Go down
View user profile http://www.talentidols.com
 
Market psychology
View previous topic View next topic Back to top 
Page 1 of 1
 Similar topics
-
» Psyphon's college paper on martial arts
» Psychological Component to Migraines

Permissions in this forum:You cannot reply to topics in this forum
Pakistan Forum :: Forex :: What is Forex?-
Jump to:  
Free Web Counter
Free Web Counter
Forumotion.com | © phpBB | Free forum support | Contact | Report an abuse | Free forum