GDP or Gross Domestic Product represents the total monetary value of goods and services produced over a specified period of time in a country. In other words, GDP measures the overall productivity of a country's economy and is used to measure the level of growth and the economy's health in general.
Quite simply, eurodollar (also known as EURUSD), is the exchange rate between the currencies of the world's two largest economies when measured by GDP - USA and the Eurozone. The Eurozone consists of the economies of 19 EU member states who have adopted the euro as their currency. These 19 member states have ceded control over monetary policy and interest rates to the European Central Bank. And as far as the currency is concerned at least they trade as one entity.
Do you remember the first time that you came across the financial markets, or more specifically, forex trading? Unless you had a keen interest in economics, it's highly likely that you were almost immediately drawn to technical analysis (T.A). Those attractively colourful indicators, pin-point accurate support/resistance lines and rumours of other technical traders trading for a living, is usually enough to lure the majority of newcomers into this category. There is, however, another technique used to analyse the markets: fundamental analysis (F.A).
We understand that this is a perfectly natural question, especially for newer traders. Unfortunately, it is difficult to answer. To a degree, we believe it depends on the person who is doing the asking. With that in mind, let's have a look at some of the key points relating to this subject…
Pivot points are extremely popular with traders, they are used to spot direction, probable reversal points and potential support and resistance levels. It's a well-known tool that is of particular interest to novice traders, due to the simplicity of the mathematical formulas it incorporates.
"Risky" means that, like other endeavours in life, you need to plan ahead in order to manage the inherent uncertainty of the markets, and make sure that your risk capital (which, after all, is what allows you to stay in the game) is never depleted. Notional funding, proper position sizing, and discipline are key to this part of the equation.
“How a trade is implemented is more important than the trade idea itself” – Colm O’shea, Market Wizard.
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