Share market is very corporate dependant, we need to understand the corporate strategy, what is current corporate trend, who is managing the company? Is the company reliable? Is the annual report reflect true situation? On the other hand, Forex market is economic dependant among countries. Unlike the financial, political and crisis factors, economic factors occur in a steady stream.
Therefore, its very import to keep an eye on the economic announcement in order to make the enter and exit decision on your position.
Some economic aspects:
1.
Information source
Update the news on cnn or
www.ny.frb.org ,
forexcapitalnews and so on.
2.
Economic data
Measurable values of price and changes in price. For example, the cost to hire a stuff for a month, or the cost of a particular commodity.
3.
Formulation of economic activity of relationship
Consumer spending, government spending, ratio of import and export activity, etc. 4 major consumer spending are clothing, food, living and transportation. The economy is considered growing if people switch to consuming from saving. Government spends on building the country facility, construction, government corporate and service, military, etc. A Country economy is growing if the export revenue is more than import demand. Or that means, country‘s income is more than its spending to get other countries’ goods. A strong country is considered independent by supplying significantly more than demanding.
4.
Inflation rate
The specific inflation rate involves taking measurable prices, and a model of how people consume, and calculating what the general price level which is from the statistics model. For example, the fuel in U.S. is cost 1 USD 1 litre; To calculate the price level would require a model of how much petrol a person uses in average and what fraction of their income is devoted to this, another factor is how people use the petrol and whether there is any replacement for substitution.
5.
Employment
This is another critical economic factor. Its basically measured in the stability of different job and satisfaction in sound.
6.
Production
The production is playing important role nowadays as its chain-influence with other economic aspect. The measurable indicators are based on the change in material prices, Quantity orders for supplies and resources, change in manufacture’s durable goods and unfilled orders, sales and supply performance, Index of Production yield to customer expectation, expanding margin.