Translated from Russian by Google Translate
1 Сентябрь 2009

Financial crisis VS FX market. Who’s who?

Perhaps we are not open for you to America, saying that if Russia was not at the epicenter, exactly in the zone of high risk in relation to events, impulsively has encouraged many eminent businessmen to the abyss. Finance, of course. Perhaps there would be no sense to talk about whether the discussion of the crisis if the scale of the latter did not acquire gigantic proportions. Even in the capital, many Muscovites knew firsthand that such a crisis: a wholesale downsizing, regular delays in payments of wages, premature withdrawal of unpaid leave - this is only part of what is called a crisis.


I want to say that the economic collapse is not in the least touched on the major town enterprises. In this regard, always had and have to read about despair, where there are people on the continuing negative and pessimistic remarks on the future prospects of the situation. But let’s try to assess realistically: Is it all a bad thing?

Looking back on historic events, including 11-year-old, I want to say that at all times, Russia quite successfully cope with a variety of financial turmoil, at least, give this impression. I agree that many are tired of such shocks, but if you look at the situation in the eyes of an optimist, we can conclude that circumstances like the present, not only carry the destructive power, but also teaches a good lesson in development.

Following the concept of this article, I want to make a small conclusion that the financial crisis is forcing many people who invest their savings, think about whether they should invest in a particular business structure to assure safety of funds and mechanisms for the protection of their depreciation, profit, derived from such investments.

If you try to grasp the system of investment, then, first of all, it is worth considering the question of funds for investment. Fortunately, at present most of these funds, there are many: and real estate, and mutual funds, and have become such «tasty» per cent of bank deposits. But many ways different from each other. A feature of the above investment options is that when you make the necessary payments from you nothing will depend.

Take the same property. Certainly, enough popular method of investment, but the fact is that despite the crisis, this same property can greatly fall in price. And if there are large number of objects, it is hardly worth talking about what a loss it shines. Bank deposits also not too credible. During the first impulsive thrust crisis acute shortage of funds has forced many banks to declare themselves bankrupt. And together with the bank went bankrupt, and many investors. If we talk about mutual funds, here, too, can not do without surprises.

Really appreciating the situation, we note that even against the background of the global financial crisis, there are places where you can invest successfully, even in the current situation. In these financial niches can be sure that the capital does not depreciate or be subjected to that one fine day the bank will simply not pay for that money to their depositors. And while you complete control over their investments. These niches are the FX market and the stock market. And participants in these markets are called traders.

If we compare the stock market and forex market, we can see that there is a difference and quite substantial. Speaking about the complexity of assessing the situation and participate in the tender can confidently say that the FX market is much easier than the stock. Put in terms of participation in tenders, and in forecasting and in the time frame of trade, etc.

It is worth noting that the main tool for analyzing the stock market - is fundamental analysis. And if the FX market can predict how to use fundamental and technical analysis, the stock market at 100% subject to fundamental analysis. In order to be able to assess the situation and decide on the stock market will require in-depth knowledge of economic theory, macro-and microeconomics and be able to, depending on developments in the world correctly projecting the data on the stock market.

Forex Market if not directly opposed to the method of assessment of the situation, then, at least, has significant differences in the assessment and prediction of the situation. Here, fundamental analysis can be successfully replaced the technology sector. Therefore, in order to evaluate and predict the situation on the currency market is enough to learn the technique correctly assess the market using technical analysis. The main principle of technical analysis - is a theory according to which all the events that take place in the Forex market, sooner or later are repeated.

For example, if a few months ago out any news, then the FX market running out of strong growth, such as the U.S. dollar, the trader by analyzing the situation, could conclude that the U.S. withdrawal related news, which will be accompanied by the same events , as in previous times, would make the same leap, as in previous times.

Incidentally, the fundamental analysis is the place to be and the forex market, but if you compare its significance for the stock and currency markets, there are two big differences. If the stock market fundamental analysis - the basic tool for predicting the development of the situation, the forex for this type of analysis is the only basis for more in-depth study of processes occurring in the market.

If you examine the practice of currency dealing, we can see that the FX market presented a rather «incoherent public». But the main point is that many newcomers who come to the FX market, initially did not think seriously engage in currency dealings - they are just interested in something new. But as more and more study of many newcomers from the category of amateurs into being the practitioners and experienced traders, for whom the FX market - is «fat feeding». The question: «Is not this the way to survive in a stormy world financial crisis?»