Is there association between global markets?
It becomes essential to understand how the commodity markets relate with one another. There is a relation between all the relevant products in the market and as the price of one of them rises so does it affect the other commodities. The demand and supply chain varies all the time and it becomes necessary to understand the global market in every sense, be it commodities or shares or bonds. It is important to understand the current trends in the market place to start trading in the first place. Without the apt knowledge, it is difficult to make your stand in the forex market.
I am sorry, the title should have been 'Is there association between global markets?'
Dear Sonu,
We have updated your topic title. [:D]
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Thank you Sonu for bringing this subject to this forum. It is very essential to trading and unfortunately most of the traders do not understand the concept or the impact on the market. When you trade, you need to know where the flow of money is going? There are too much questions we need to ask ourselves as traders. Are we in a risk on or risk off period? Risk on means that investors are confident with the current economy and the future of this economy. Investors will look for instruments that gives high returns (or currencies that has a a high interest rate). They may buySP500/ Dow/ euro/pound etc... Risk off (risk aversion) means that the investors are scared about the future of the economy and will take their money from high yielded instruments to put them in low-yielded but more secure instruments. (could be Gold/USD/YEN and essentially bonds)
Of course, these instruments change by time. What I mean by this is that sometimes they will invest in bonds and other time in USD or Yen.
What we saw in the last economical crisis (2008) was the extreme of this process. We had Gold and USD trending down, which means that at that time (and because there were no liquidity) even Gold wasn't considered as a safe-heaven. Everybody wanted to have liquidity and that liquidity won't be Euro or even Yen, it is USD!
Now, the markets follow Mandebrots fractals. This means that the same reaction investors will have on a higher scale (higher time frame) will exist on a smaller level (like intra-day) Here comes the importance of daily economical events that will have effects on the financial instrument in a proportional way. Mandelbrot's fractals are a long story. Maybe I can make a post about that if you want.
Food for brain: Does an EA take all that into consideration?
All nations depend on growth for their economies' durability and therefore motivate their businesses to get and increase their marketplaces through business. Worldwide business that is global market , it is considered, has the potential to increase a nation's potential to generate products as well as to buy them.
I don't think so, Because forex profit is fully depend on knowledge and experience. Without this thing you never earn few profit. But if you think you can earn profit without this thing then it's become gamble.
I think you can share forex on the separate markets. It is global and decentralized market.