Investing in the markets has long been a popular way of boosting income. Some people do it for a living, others like to dabble, with the hope of creating a nest egg. But, whatever the reason for investing, you’re going to want to see returns. For that, you’ll need to monitor the local and global markets.
It should be noted the easiest way to do this is to choose a reputable broker offering CFDs trading. When you use a reputable broker you’ll get access to all the latest news and other information to help you make informed decisions and increase the likelihood of you placing successful CFDs trades.
Don’t forget, the beauty of CFDs trading is that you don’t need to spend large sums of money purchasing shares, you’re simply trading on the movement, allowing you to place much smaller trades and leverage them against the full value of the stock.
Economic Events
It’s fairly obvious that economic events will affect trades. For example, the failure of one business is likely to lead to increased orders and profits for another business. This is likely to increase their share price, allowing you to trade on this and generate a good rate of return.
All traders need to monitor economic events and specific events within the industry or sector in which you are trading. It’s an essential part of successful trading.
Global Events
However, it’s not just industry-related events that can take a toll on your trades. Global events can also have a big impact. This may be rarer than industry events but it is still a real possibility, especially in recent times.
Perhaps the most topical global event is war. While there are several wars currently occurring, the most prominent, Russia’s unprovoked invasion of Ukraine, has caused a huge tumble in currency values and a great deal of volatility in the market.
In addition, the war has constricted energy supplies, resulting in price rises and, potentially, a dramatic increase in profits and share values.
Elections are commonly held across the globe and can have a surprisingly big influence across the globe. For example, the conservative approach of Donald Trump caused huge ripples across the world, especially as he was so unpredictable.
Equally, Brexit caused huge uncertainties in the market. In fact, the GBP/USD ratio moved 1800 pips in a day after the referendum result was announced. That’s more than it had moved in the entire six months previous.
Another global event worth mentioning is climate change. As governments react to scientific evidence and pressure, they can introduce subsidies to help energy-efficient companies, potentially boosting their value. They can also penalize industries causing climate change, potentially reducing their value.
Naturally, it is difficult to know what global change will happen next. But, if you monitor the news channels and the markets, you’ll gain a good idea of what is likely to happen and how it will affect the market. It can allow you to make a lucrative CFDs trade!
