Forex Trading Strategies | Forex Investing
There is a battle raging among the nations regarding currency values. This battle is having a huge affect on the forex currency trading strategies of many investors and traders. Here is an overview of the situation so you know how to proceed with your forex trading strategies and investment plan.
There is a race to devalue currencies right now. There are many reasons for this, but the main one is to boost economic growth. This is especially important for emerging market countries. A cheap currency means cheap export costs on designs, and for many of these emerging market economies, cheap exports are what is driving their economic growth. That is why China has been artificially deflating their currency, to drive exports.
Counties like South Korea has been warning about a currency war. They said that once the domino was dropped, it would cause a cascading effect to draw virtually every economically powerful country into the war. That is exactly what has happened.
When the US went through with the quantitative easing measure, other countries immediately responded with plans to fight the rising value of their currencies. The most notable peacemaker, South Korea, vowed to mitigate capital inflows. This was on top of virtually every other emerging market echoing the same exact thing.
If you are an experienced forex trader, this is great news. You love volatility because that is how you find trading opportunities. For a new trader, this is not such a great thing because it adds to your risk. There is an alternative. You can do forex investing instead of trading.
If you are new to forex currency trading, you should consider investing in a fund. There are forex investment funds out there where you can take advantage of the volatility, but in a way that is wise. For an experience trader, the volatility is great. So with a forex investment fund, you can hand your money off to someone where the volatility is very welcomed news.