Trading With Forex- Important Political and Social Factors

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					Political and social developments, you will find, can have an immediate or eventual
effect on stock and currency prices as readily as economic factors.
  When the Suez Canal was closed, stocks of companies obtaining appreciable
amounts of oil from the Middle East reacted adversely, while domestic oils advanced,
anticipating a greater demand on their production.
  Washington, in all its ramifications, can alter the course of the market. The President,
the Congress, the Supreme Court, and all the attendant Government agencies, bureaus,
and committees can take action influencing the prospects for companies or industries.
  Projections of the President's Council of Economic Ad?visors are important.
Congressional action on the corporate tax structure, on the extent and direction of
military spending, or on labor legislation can have far-reaching effect on business. So
can a Supreme Court ruling or an opinion of the Justice Department.
  The Bureau of Internal Revenue's corporate or personal tax rulings, the Commodity
Credit Corporation's policies on commodity prices and lending, the Commerce
Department's business forecasts, the Farm Credit administration's schedule of prices
for agricultural products, the Interstate Commerce Commission's rulings on railroad
freight rates the list of actions and possible reactions is virtually endless.
  The power of state utility commissions to regulate rates, the wages-and-hours
demands of labor unions, and such revolutionary admistrative decisions as that of
New York state, some years back, for the first time permitting certain trusts to invest
funds in common stocks have direct impact on the financial and investment world.
  Read widely and read regularly. Among other things, most financial information is
carried in the form of charts, indexes, and averages that won't make much sense until
you have enough background to compare them with last month, the previous quarter,
or a year ago.
  Don't expect to have hot tips or inside information re?vealed to you. Most of the
available market material is in the public domain, and the professionals have seen and
di?gested it before you. In any event, you are not yet ready to outwit the experts.
  You are interested in getting into the habit of informing yourself and of staying alert
to changes and trends. It will take a powerful lot of reading to decide whether Gulf is
a better oil company than Standard of California, or whether General Mills grind finer
than Pillsbury.
  But if you want to know what new products or what new ventures a corporation is
undertaking, or how one segment of industry is going compared with another, or what
some analyst thinks of a certain stock, your reading will tell you.
  In time, you will become selective. You will want to stay abreast of general business
and market news, but, unless you are dealing in commodities, you will not pay much
attention to the grain markets or coffee, sugar and onion futures. And you will
probably not memorize freight-car loadings except insofar as you want an indication
of how the railroads are getting along.
  The internet can also help you with research and it is amazing how quickly
information is received by everyone nowadays.
  To protect yourself if you are trading on Forex, download some Forex software that
can help you predict currency prices
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