Alternative Methods Of The Market Analysis Part 2
Some can doubt in this methods of market analysis. Certainly, it not always works, but it is the useful indicator. Mark Faber actually used covers of various business and financial publications with good effect during time of excellent speech at conference FIA in Sydney December 1996, specifying in recent tops of the market of biotechnological shares and the several Asian markets among the other. The theory, standing up for this method, it is rather simple for the analysis. In essence, we observe of theory origin, like that which registers progress of historical philosophy etc. In this case often it is required to three human generations before ideas of intellectuals become standard. However on quickly developing financial markets such things move ahead much faster.
At first “smart money”, that is markets-makers and acute (mainly, hedge) funds, sits down on a trend. Then managing directors of pension funds join them and them similar. Gradually news that the share market is hot, reach any passers-by. Stories of facts of common knowledge among the lower class are characteristic feature among the reasons on which some great traders prefer to leave the market about historical peaks.
So, if the door-keeper of hotel, the boy – the cleaner of footwear, the waiter or the parlourmaid offers a confidential information concerning shares on the near future keep in mind, what even neighbour’s billionaires regularly sell on such news. Moreover, they appear absolutely right in idea that time the confidential information has reached the lower class as a call to jump on a train footboard the share market should be bought up.
Other excellent source for the information can be taken from fashionable magazines. Such analysis proves once again, how much serious we burden, alternative analysts, should bear to get profit on the profession chosen by us. Within the limits of fashionable magazines we can have access to a number of things. To begin with, there is a release of an editorial column. In a context of wider themes always it is necessary to read all mentions of the markets attentively.
In case you decided to participate in forex trading should start from learning the basics of this market to make sure you do not have problems with this industry.