Tip 7: Reasons for participating in forex trading

Reasons for forex investment

While in the past it would not have been a good idea for amateurs to get involved in forex trading, today forex trading is recommended to amateur investors because it has become easier to understand.
Ordinarily, the key to investing is choosing investments that will make money for the investor.
If equities have good returns, investors should choose the stock markets.
If foreign exchange has good returns, they should choose forex markets.
If real estate has good returns, they should choose to invest in real estate.
The investments that are in season undergo constant change.

What will happen to forex markets in the future?

How should investors respond to markets undergoing severe price fluctuations?

Today, a rising market that would have lasted one or two years in the past may last only about two weeks.
I think in some ways a market can be considered attractive if it does not tumble.
By reducing leverage and buying when the yen is rising, what in the past had taken one year now can now be done in one week.

Another method is to change the subject of investment

If in the end Japan were to become fiscally insolvent or to suffer a similar fate, such as severe inflation even though not technically insolvent, continued fiscal deficits would lead to a breakdown at some point.
Until now the day of reckoning has been postponed, but the longer it is postponed the greater the fall.
If such an outcome were to come to the surface, resulting in disorder in the markets, the yen would bottom out.

I think the Australian dollar could rise to about 200 yen.
At that point investors should sell.
At the moment they sell, investors should buy investments such as equities or real estate that have become more attractive.
I think this is the best performing type of investment.
While investors buying and selling over the short term also can take part in forex transactions, it would be a good idea to buy leading international equities that had bottomed out, such as stock in Canon or Toyota.
Since the times will change, it is a good idea to invest only in the most attractive markets.

Eight tips for Forex trading in Japan