Investors need to know and follow some things to make money. In this article, we list the issues that need to be followed individually.
You may want to evaluate your savings with stocks on the stock market and foreign exchange on the forex market. Nowadays you can trade with many investment vehicles in financial markets. When you successfully complete your investment transactions, you receive a certain additional income. This is also the purpose of many people investing. That is to have a certain income by evaluating their savings in successful forms. Because of this feature, investing is among the additional income methods.
The successes of the investments are related to the correct interpretation of the markets. In other words, you have to predict how a talk made will have an impact on stock prices. Likewise, you need to know how an explanation by the FED will affect gold prices. If you anticipate these changes correctly in advance, you will benefit from the process you are doing. This is where you need to know what you need to follow.
There are essential issues that every investor must follow. We will talk about some of them.
Supply and Demand
The economic model in which prices and claims are found is discovered by Alfred Marshall and Leon Walras. As you know, the price of a good is determined by the supply-demand balance and changes. It is very important for an investor to be able to interpret and follow the changes that are absolutely necessary in the supply and demand. Because of the changes in prices, these two important issues are at the core.
Prices of investment instruments traded on financial markets are determined by supply and demand. For example; Although gold demand is high, prices are rising when supply is limited. Besides, prices will decrease because of the high supply of gold and the expected demand. You should know that there are many factors that affect supply and demand for investment instruments. If we give an example over gold again; when interest rates are attractive, investors will leave gold by turning to foreign currencies. In this case the demand for gold will be reduced and this will be reflected in prices. Here are the factors that affect gold prices.
There are factors that influence the demand of every investment vehicle. Without knowing these factors, it is almost impossible to predict which way the investment vehicle will change. It is possible to count supply and demand depending on these reasons at the beginning of the subjects that every investor should absolutely follow.
The economies of the capitals have a great influence on the prices. Especially the changes in the leading economies of the world such as USA and China are definitely reflected in the prices of investment instruments. At the same time, the countries in the position of producers are required to be taken on the follow-up list because the investment instruments are influential on the supply and demand.
We often talk about macroeconomic data giving information on country economies. We also share with you the changes that have taken place in the investment tools during the disclosure periods of these data. For example; US non-farm employment data has positive or negative effects on almost all investment instruments.
The reason is that macroeconomic data shows that the country’s economy has progressed in a healthy way. The fact that the economic data of a country is positive and that it meets expectations is a sign of a healthy progress. Likewise, negative and unexplained data suggest that there are some problems in the country’s economy.
With a few examples we would like to share with you the importance of following the country’s economies. Unemployment data are important data that provide information about the country’s economy. The low rate of unemployment in one country indicates that the economy is strong. In other words, the vast majority of people living in the country have a job and earn money.