To make the most out of your money-making endeavors, knowing about the following would be truly helpful:
Understanding the Economy of China
Many people, especially those belonging to the “western-category countries” hate this idea, but as a smart trader, you have to acknowledge that understanding the economy of the country known as “The Sun’s Origin” – as their tagline is used by many journalists.
In case you haven’t known it yet, China will be the next world power. Hate the idea as much as you can, but such an outcome is inevitable. Historians, political analysts, as well as world leaders, in general, have this separately unanimous conclusion that China will indeed be the most powerful nation on the planet in approximately less than 2 decades from now.
To reinforce this claim, let us delve a little into how a country becomes a world power. It’s not because of the strength of a nation’s army, or the number of citizens that live within it, but of the strength of its economy. That’s how a country can gain global dominance, at least in this modern generation. Gone are the days when a nation needs to wage physical war against another nation to prove its power over the other.
Today, what needs to be done is to come up with a robust economy, one that can be effectively extended into other countries and continents. If a government can do that in the greatest measure compared to others, then that government is surely on its way to becoming the most powerful nation on the globe.
While it would be outrageous to expect that the Renminbi will gain supremacy over the Dollar and the Euro in the next few years, it will most likely be an equally strong currency force in the next decades. The best way to deal with this fact would be to study closely the economy of China in the same manner that you studied Europe’s and the USA’s.
Furthermore, acknowledging that Chinese-made products will be even more commonplace in the global market in the next set of years would be truly beneficial for a trader who wishes to be many steps ahead compared to common traders who rarely analyze things.
Understanding Web-Advertising
When Satoshi Nakamoto, the person behind the creation of Bitcoin came up with the idea of digitizing money, one of the main driving forces is computer networking technology – it is the very essence of the world’s connectivity in this digital generation where we happen to exist. Now more than ever, the world is becoming smaller and smaller due to the existence of this digital universe called The Internet.
Even our beloved Forex. which can still dwarf out the crypto-giant easily is still highly dependent on the power of cyberspace to conduct business. And since it is one of the most important truths of all, a smart Forex trader needs to also learn a lot about web-advertising.
Like the business that revolves around television and radio broadcasting, websites heavily rely on advertising as well so that they can continue to exist on the web. Without the viewers and potential buyers of the products that those ads are showing, the internet will surely collapse under its own unimaginably heavy weight, though such mass is not to be taken from any physical sense.
Although web advertising has no direct thing to do with Forex just yet, it has now a lot of involvement already with how businesses in the world today are presented and made known to people. For that reason, a good trader must also be ever-ready to grasp the framework that makes internet advertising works so well.
Studying cryptocurrency
We may have heard already that Forex and the Stock Market 2 of the biggest money-making metaphorical machines in modern history. But here’s another major player – Cryptocurrency. Is it a threat to the aforementioned markets? Very… and a very big threat at that, although it would be unfair for either major forces to pit them against each other.
Financial analysts bravely declare that since everything is going digital these days, the money will be ultimately digitized too in the not too distant future. Experts even claim that paper bills, coins, and even debit cards will vanish too because all you need to carry with you is your phone – which will act as your personal accountant as you buy, sell, and consume everyday commodities in your daily living.
Some even insist on outrageous claims that your money, as well as your entire identity, will be embedded into your wrist or forehead so that all the information about your being can be accessed whenever the need arises. This might happen, yes. But it would not be so until at least for another 100 years.
The point of such possible advancement is that money is really becoming digital. Without a doubt, cryptocurrency is the thing of the future, because it is the best proof that cash can really be transformed digitally. Businesses all over the world are now profiting efficiently as they are run by purely crypto coins alone.
As a smart trader, although you just deal within Forex, it would be foolish not to learn about Cryptocurrency. Even if we don’t look upon it deeply, we can easily grasp that it has so many similarities with Foreign Currency Exchange. Crypto is taking the financial world by storm, and the force it's showing must never be belittled.
Since that can’t be disputed, conventional trading wisdom hereby advises you that as you study about Forex, take another side course: learning about the likes of Bitcoin, Ethereum, and Ripple. They are 3 of the biggest name in the Cryptocurrency business, and they are surely the biggest players in that industry for the next foreseeable future.
Understanding the future of the Euro and the US Dollar
There is no argument needed about the supremacy of the EUR/USD pairing in Forex. Since they are so relevant today, it is very unlikely that they will become quickly irrelevant for the next few years, or even decades. The very smart traders of today always look into these 2 currencies closely, as an Eagle would on its prey, as a high-definition camera would to an object being shot at. To be very good at such efforts, it would be truly wise to look at the economical flows of the countries within those financially bustling areas. It would be a huge mistake in choosing not to.
You may find it a bit trivial, but some expert traders take hold of information that isn’t directly related to daily dealings with Forex. For instance, some traders absorb the idea that the physical design of the US Dollar Bill hasn’t changed since 1929. To simply put it, existing paper bills that come from that era are still usable today. So if your grandpa has some treasure chest buried somewhere with some dollar bills in it, you could still use it now. Seriously.
Such a fact could make us discern more about the significance of the US Dollar. If you add it up with some daily small doses of what’s happening within the economy and government settings of the Americans, you should be on the right path of a much broader understanding of Foreign Exchange. Consequently, better trading decisions from your head will just get channeled outwards, as you conduct more trading transactions each day.
Also, poking closely into the financial flows and events that traverse among the countries near England would be helpful too. The reason why the Euro is a much stronger force than the US Dollar is mainly due to this one simple truth: the economy is much more stable there, and that there are significantly richer business entities in Europe altogether, compared to those that are in the United States.
Although many US-based companies also exist somewhere else, they will still be a minority compared to the vastness of the sea or mega-rich entities across Europe. By understanding the economies of the governments there, as well as the “money-funnels” that thrive within the area, you can have a good understanding of where the Euro will go in the next years or decades
