What we often say is positive and negative, which is a choice of trading direction. At a certain time, whether we choose to buy or sell is the decisive factor in whether our transaction is ultimately profitable or loss. This article will give you a specific introduction to what is bad, and how foreign exchange transactions look good and bad.

What is bad

Negative is a professional term in the stock market, it mainly refers to the bad news that caused the foreign exchange market to fall. Once there is a bearish trend in the foreign exchange market, there is often a short market. A large number of investors begin to sell their chips, and the exchange rate will fluctuate greatly. It’s easy to get trampled on funds.

Negative refers to information that can cause the stock price to fall, such as the deterioration of the operating performance of listed companies, bank tightening, increase in bank interest rates, economic recession, inflation, natural disasters and man-made disasters, and other political, economic, military, and diplomatic factors that have contributed to the decline in stock prices. Bad news. The negatives often lead to the overall decline of the foreign exchange market, and the constant negative news will cause the prices of the foreign exchange market to continue to fall, forming a “bear market.”

The bad news actually comes from many sources, such as the performance loss of the listed company itself, financial fraud, etc., or some policy factors, such as rising interest rates and currency tightening. These news will have an adverse effect on the growth of the stock market. Therefore, all belong to the category of bad news.

To some extent, bad news will cause many effects. For example, the “herding effect” in the market may be only a part of small funds being sold when the bad news is announced. However, these funds drove the selling sentiment in the market, and a large number of investors began to follow the trend to sell, so there was a situation of hitting the market. At this time, if there is no funds to escape, it is likely to cause serious losses.

How do foreign exchange transactions look good and bad?

It is also necessary to maintain a rational and objective attitude towards positive and negative judgments. The good and the bad can be considered from both the fundamental and technical aspects, or they may be formed from multiple aspects. You cannot make your own conclusions from a single angle.

For example, in 2002, the European Central Bank announced a reduction in interest rates. If you consider it according to normal thinking, when the interest rate of a country’s currency is reduced, it is an obvious negative factor. The euro should fall, but at that time the war between the United States and Iraq was looming. The rise was suppressed, but it was released after the euro cut interest rates, forming a favorable situation. This is a typical example where things cannot be considered from a single fundamental perspective.

Similarly, we will also use technical indicators when trading to determine when we are good or bad. Through technical indicators, we can reflect the upward or downward trend of the market, whether it is about to peak or bottom. These are positives. The negative reference factor is also a method often used by traders. Especially in short-term trading, the fundamentals do not affect the market. In this case, the best way is to judge whether it is good or bad based on the technical side.

Now everyone should know what is bad. Although bad is a professional term in the stock market, it can also be used in investment industries such as foreign exchange. When making foreign exchange investments, if you can grasp the negatives, you can make your investment just add to the advantage. For specifics, you can refer to the precautions mentioned above.

What is bad

Negative is a professional term in the stock market, it mainly refers to the bad news that caused the foreign exchange market to fall. Once there is a bearish trend in the foreign exchange market, there is often a short market. A large number of investors begin to sell their chips, and the exchange rate will fluctuate greatly. It’s easy to get trampled on funds.

Negative refers to information that can cause the stock price to fall, such as the deterioration of the operating performance of listed companies, bank tightening, increase in bank interest rates, economic recession, inflation, natural disasters and man-made disasters, and other political, economic, military, and diplomatic factors that have contributed to the decline in stock prices. Bad news. The negatives often lead to the overall decline of the foreign exchange market, and the constant negative news will cause the prices of the foreign exchange market to continue to fall, forming a “bear market.”

The bad news actually comes from many sources, such as the performance loss of the listed company itself, financial fraud, etc., or some policy factors, such as rising interest rates and currency tightening. These news will have an adverse effect on the growth of the stock market. Therefore, all belong to the category of bad news.

To some extent, bad news will cause many effects. For example, the “herding effect” in the market may be only a part of small funds being sold when the bad news is announced. However, these funds drove the selling sentiment in the market, and a large number of investors began to follow the trend to sell, so there was a situation of hitting the market. At this time, if there is no funds to escape, it is likely to cause serious losses.

How do foreign exchange transactions look good and bad?

It is also necessary to maintain a rational and objective attitude towards positive and negative judgments. The good and the bad can be considered from both the fundamental and technical aspects, or they may be formed from multiple aspects. You cannot make your own conclusions from a single angle.

For example, in 2002, the European Central Bank announced a reduction in interest rates. If you consider it according to normal thinking, when the interest rate of a country’s currency is reduced, it is an obvious negative factor. The euro should fall, but at that time the war between the United States and Iraq was looming. The rise was suppressed, but it was released after the euro cut interest rates, forming a favorable situation. This is a typical example where things cannot be considered from a single fundamental perspective.

Similarly, we will also use technical indicators when trading to determine when we are good or bad. Through technical indicators, we can reflect the upward or downward trend of the market, whether it is about to peak or bottom. These are positives. The negative reference factor is also a method often used by traders. Especially in short-term trading, the fundamentals do not affect the market. In this case, the best way is to judge whether it is good or bad based on the technical side.

Now everyone should know what is bad. Although bad is a professional term in the stock market, it can also be used in investment industries such as foreign exchange. When making foreign exchange investments, if you can grasp the negatives, you can make your investment just add to the advantage. For specifics, you can refer to the precautions mentioned above.