Utilizing Forex Info? Diversifiion-Business Opportunities?

thread: Utilizing Forex Info? Diversifiion-Business Opportunities?

  1. #1

    Utilizing Forex Info? Diversification-Business Opportunities?

    Hello,

    considers that the temptations of Trading, how should you utilize the knowledge of FX to diversify into other business opportunities.

    Example: One can look at monthly charts, which rather give us an notion of trend of a currencies. This translates into strength and weakness of countries economies.

    Mapping this information to a countries means of production like Australia-Mining and New Zealand-Dairy, can take advantage of any bottlenecks in the Supply Chain or Generation Chain. Perhaps entering Imports and Exports business or begin a factory/unit of production knowing a shortfall in some product is coming soon ...

    Simply put, how can you turn the understanding of FX into Traditional Business Opportunities?

    [Excluding Trading and Trading Associated opportunities like Coding, Signal Services, Account Management etc.. .]

    Thanks

  2. #2
    Simply put, how can you turn the Knowledge of FX into Conventional Business Opportunities?
    If you have such”understanding” or can predict the price, you can make money straight in Forex.
    For example, is EUR/USD is going up, down or sideways in the next months or weeks?

  3. #3
    Hello, Notwithstanding the Challenges of Trading, how should you utilize the knowledge of FX to diversify to other business opportunities. Case in point: One can look at monthly charts, which rather give us an idea of trend of a currencies. This translates into weakness and strength of countries markets. Mapping this information to a countries means of production like Australia-Mining and New Zealand-Dairy, can you take advantage of any bottlenecks at the Supply Chain or Generation Chain. Maybe entering Imports and Exports business or begin a factory/unit...
    if u r a fantastic chart analyzer then u can use it to d favor of companies related w commodities concerning commodity prices, stockpiling or decreasing stocks . .

    eg. . Iron ore prices fairly related to d satellite pictures of manufacturers stockpiles pictures or wheat...

  4. #4
    quote Hello, that's a really interesting question you pose. My attempt to answer it requires me all of the way back to my school days studying economics. In basic macro economic principle, the exchange rate between two currencies reflects the sum total of many influences, such as the balance of trade and capital flows, the interest rate differential, relative political and social equilibrium, and the market's perceived estimates of prospective relative economic growth and inflation of both economies. Simply speaking, it's a complied picture! For the...
    Thanks Marc for taking time in sharing your opinions....

  5. #5
    quote if u r a good chart analyzer then can use it to de prefer of organizations related w commodities concerning commodity prices, stockpiling or decreasing stocks . . eg. . Iron ore prices pretty linked to satellite pictures of producers stockpiles pictures or wheat...
    Due Mr.Brown...

  6. #6
    quote If you've got such”knowledge” or may forecast the price, you can make money directly in Forex. As an example, is EUR/USD is going up, down or sideways in the next weeks or months?
    Artcool,

    Prediction could have been a wrong word, what I meant was going with the general sentiment of a currency over a little higher time frame...
    Appreciate for your article...

    Thank you

  7. #7
    Junior Member Loox's Avatar
    21
    Hello, Notwithstanding the Challenges of Trading, how does one utilize the understanding of FX to diversify into other business opportunities. Case in point: One can look at monthly charts, which fairly give us an idea of trend of a currencies. This translates into strength and weakness of nations economies. Mapping this info to a nations means of manufacturing like Australia-Mining and New Zealand-Dairy, can you make the most of any bottlenecks at the Supply Chain or Generation Chain. Maybe venturing into Imports and Exports business or begin a factory/unit...
    Hi aaven,
    That is a really interesting question you pose. My attempt to answer it takes me all of the way back to my school days studying economics. In fundamental macro economic principle, the exchange rate between two currencies reflects the sum total of several influences, like the balance of trade and capital flows, the interest rate differential, comparative political and social stability, and also the market's perceived estimates of future comparative economic growth and inflation of both economies. Simply speaking, it is a complied movie! As a result of this complexity it is hard to have very precise helpful insights about one particular small business opportunity based just on the exchange rate.

    What you could say is that, as soon as you come to an opinion on exchange rates, you can then predict the impact on companies, some more confidently than many others. By way of instance, if the home currency is believed to be depreciating then nationally exporters will probably have more favourable operating conditions than national importers, because of the exchange rate influence on the price of products. The problem, of course, is that your perspective does not need to be right!

    And there is also the subject of time frame. You might be right regarding the general direction of the currency in the long run but there can be all sorts of shorter duration tendencies because you will never know which of the several drivers of exchange rates is going to be the focus of attention at any time, and every driver does not need to point the same way. As JM Keynes (because we are on economics) famously said,'the long term is a misleading guide to current affairs. In the long term we are all dead!'

    Hope that might help

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