Forex encyclopedia

It is an open secret that the most part of freshmen coming to the Forex lose their deposit in their first trading year. Some statistics shows that in percentage terms it is up to 95% from all beginning traders. A bunch of material on technical analysis and recommendations on preservation capital are in circulation and novices primarily focus on studying these works. Forex psychology in their education program is considered an afterthought and fades in the insignificance. In practice, having a good knowledge of Money Management, excellent trading system and serious capital, novices get to lose all their capital.
Real average weekly earnings is the market indicator used in fundamental analysis. It is expressed in absolute terms and represents an index in relation to the previous period. The index slightly influences movement of prices, therefore, it is considered supplementary and can act as supportive to such indicators of fundamental analysis as major interest rates or non-farm. Real average weekly earnings accounts for inflation and is calculated in relation to 1982, which was conditionally taken for benchmark. Thus, this fundamental indicator can be considered as the inflation figure, which is caused by increase in earnings. Also it can perform as the indicator of rate consolidation: if increment of major interest rates of Central Bank is expected, then increase of earnings can tell about growth of national currency rate. Publication of data is made simultaneously with publication of Consumer Price Index at 8:30 a.m of New York time, regularly in the middle of every month.
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Forex encyclopedia
Forex encyclopedia “Clever FX” is the unique service created by FreshForex to introduce world of Forex to traders. The main purpose is to share knowledge of experienced traders with novice traders in simple and convenient form. Every trader will be able to learn something new here. If you are a professional trader, we invite you to write an article for “Clever FX” and get reward. Let's write Forex history together!
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