With Borsada stocks and foreign exchange on the forex market, you may want to evaluate your savings. Nowadays you can trade in financial markets with many investment vehicles. When you successfully complete your investment transactions, you receive a certain additional income. This is also the purpose of many people investing. That is to have a certain income by evaluating their savings in successful forms. Because of this feature, investing is among the additional income methods.
The successes of the investments are related to the correct interpretation of the markets. In other words, you need to estimate how a talk made will have an impact on stock prices. Likewise, you should know how an explanation by the FED will affect gold prices. If you anticipate these changes correctly in advance, you will benefit from the process you are doing. This is where you need to know what you need to follow.
There are essential issues that every investor must follow. Now we want to talk about 10 important topics that you should follow:
Supply and demand
The economic model in which supply and demand prices are found is discovered by Alfred Marshall and Leon Walrasta. As you know, the price of a good is determined by the supply-demand balance and changes. It is very important for an investor to be able to interpret and follow the changes that occur in supply and demand. Because of the changes in prices, these two important issues are at the core.
The prices of investment instruments traded in financial markets are determined according to supply and demand. For example; Although gold demand is high, prices are rising when supply is limited. Besides, prices will decrease because of the high supply of gold and the expected demand. You should know that there are many factors that affect supply and demand for investment instruments. If we give an example over gold again; When interest rates are attractive, investors will leave gold by turning to foreign currencies. In this case the demand for gold will be reduced and this will be reflected in prices.
There are factors that affect the demand and demand of every investment vehicle. Without knowing these factors, it is almost impossible to predict which way the investment vehicle will change. It is possible to count supply and demand depending on these reasons at the beginning of the topics that every investor should absolutely follow.
Countries’ economies also have considerable influence on prices. Especially the changes in the leading economies of the world such as the USA and China are absolutely reflected in the prices of investment instruments. At the same time, the countries in the position of producers need to be taken on the follow-up list as the investment instruments are influential on the supply and demand.
We often talk about macroeconomic data giving information about country economies. We also share with you the changes that have taken place in the investment tools during the disclosure periods of these data. For example; The US non-farm employment data has positive or negative effects on almost all investment instruments. The reason for this is that macroeconomic data shows that the country’s economy is progressing in a healthy manner. The fact that the economic data of an country is being explained positively and the expectation of it is pointing to a healthy progress. Likewise, negative and unexplained statements suggest that there are some problems in the country’s economy.
With a few examples we would like to share with you the importance of following the country’s economies. Unemployment data are important data that provide information about the country’s economy. A low unemployment rate in one country indicates that the economy is strong. In other words, the vast majority of people living in the country have a job and earn money. For this reason, people can invest.
Interest rates are important macroeconomic data that provide information about the country’s economy and must be followed. In periods when interest rates are high, it is known that the owners of savings in the country’s economy tend to interest-bearing investment vehicles. Non-interest-bearing investment instruments such as gold are not preferred. Therefore, prices will change as changes in the demand for investment instruments will be seen.
To get information about how healthy a country’s economy is; Non-agricultural employment, industrial production, retail sales, interest rates, inflation, personal income and expenditures must be monitored. According to this information, the economy of the country should be informed.
It is especially important to follow up market expectations for brokers. Because the price at the stock exchange varies considerably depending on psychological factors. That is, speculation of the majority analysts’ expectation that prices will rise when they move in the positive direction will be created, and investors will direct their portfolio accordingly. For example; As the FED‘s expectation of a near-interest rate increase strengthens, the dollar gains value and gold prices are under pressure. In this way there are changes in the market and the investor’s portfolio needs to be guided by these changes.
Speculation in the markets gives information about the future direction of future prices. Speculation is definitely not a crime. While it is seen as one of the important attitudes on behalf of the stock market, it is also known that prices prevent excessive increase or fall. It is frequently mixed with manipulation; But manipulation is a crime, and the practices that go against the prison sentence are the same.
According to the expectations, while investors tend to deal with the investment instruments they trust, they stay away from the investment instruments they see unsafe. This again has an impact on supply and demand balance. Therefore, changes in prices are observed. For this reason, the fact that an investor follows market expectations is an important issue in order to predict price changes.
We all know the problems Samsung is experiencing with the explosion of Note 7 phones, right? This news, while Samsung stopped production, the stocks bottomed out. This supported global markets, especially Apple shares. Developments in the world’s leading companies can be effective in global markets. While it primarily affects stocks, indirect effects also spread to other investment instruments.
A major buying news from an important company will affect stocks positively. Another company that the whole world is awaiting with curiosity is that Twitter is not going to be sold or sold. The fact that things are not going well on Twitter, and the lack of targeted revenue, brings with it a lot of negativity. The stocks of the company also fall together with these developments.
Companies can make great strides towards investors to follow the developments that are happening on the edge. Tracking news and developments for purchases to be made will allow future price changes to be predicted.
Political and Political Developments
Political developments have a lot of influence on the stock market. Political impotence, reduced confidence in the ruling party, political developments such as military initiatives and corruption are important issues that an investor should follow. The unsuccessful coup attempt on July 15th is the closest example. We have all witnessed the tension and uncertainty created by the elections. This is not the case only in our country. Because the political developments of every country in the world bring sound. For example, in recent years, the presidential elections in Greece have led to the collapse of the Athens Stock Exchange, but the euphoria has been felt more widely because it is included in the European Union.
Political impotence and uncertainties negatively affect the country’s economy; It also affects the financial markets. Demand for investment vehicles that have secure port features increases because markets do not like the uncertainty. Besides, in foreign currencies and stocks, declines come to fruition. In order to anticipate these situations, political inhabitants must also be judged.
Terror and War
Terrorist acts and wars are developments that affect the economy in a negative way. We have all seen the effects of terrorist acts in Turkey. It is one of the biggest obstacles to the development of the economy. The lives are attacked and the war causes great damage to the stock market. For example; After the terrorist attacks on the Twin Towers on September 11, US stock exchanges have lost approximately $ 1.4 trillion.
The speculation that will arise due to the increase of military spending will affect the stock exchange negatively. The perceived increase in the military spending of an country can be perceived as a news story about a war and it starts to worry about the markets. For this reason, while investment instruments are adversely affected, demand for investment instruments in the safe haven property increases.
News media, newspapers, magazines, television channels and social media are also influential on investment instruments. Because these broadcast tools do not only include large and real news. He is also publishing especially about gossip and rumors. Although these publications are carried out under the heading of sensation, the effect that they create creates the formation of speculation. With the creation and strengthening of speculation, changes in the prices of investment vehicles come into play.
For example; News about the sale of Twitter, almost 2 years is an occasional twitter. Even if there is no precise information about this situation yet, sensational news is causing Twitter shares to fall. In the same way, the spread of the rumors about a strong investor taking the gold in the laden amount increases the gold demand. For this reason, it is very important for you to follow the publications and to make correct comments.
Global Events and Living Developments
Global events and developments, particularly those affecting developing countries, will cause a variety of investment vehicles, from exchange rates to commodity prices. For example, developments in the world’s largest economy, such as the US, will affect global markets. Increasing concerns globally may increase demand for safe harbors. Likewise, changes in global interest rates can affect the stock market and the foreign exchange market positively.
Significant developments in all countries, not just those happening in the world’s powerful economies, have global implications. At the same time, not only economic developments but also political and political tensions will affect global markets. In particular, a forex trader must follow global events and developments.
Natural disasters that occur in countries also have negative effects on the markets. Natural disasters, especially those occurring in the countries of the producers, will be effective in the global investment instruments. Natural disasters such as earthquakes, floods, and hurricanes have a negative impact on the country’s economy and cause permanent damage in many directions. At the same time, natural disasters have effects that will prevent countries from developing. The effects of a natural disaster on all investment instruments, especially stocks and currencies, can be clearly seen.