In his book, Follow the Fed to Investment Success, the effortless strategy for beating Wall Street (2008), Douglas S. Roberts, explains how the United States Federal Reserve has an “incredible power” on the availability of money and credit in the financial markets. He also cites that at one stage– Fed Chairman Alan Greenspan was in the news almost every day and the Fed seemed to be the 800- pound gorilla, influencing all aspects of the stock market. As a result, he recommends investment strategies that are entirely based on monitoring the Fed and its effect on monetary and credit policy. This is particularly true when one considers investing on the stock market, which is prone to short-term movements brought on by the release of economic news and financial results of listed companies. In addition, global news flow is very important. For example, any news that affects exchange rates of major currencies such as the USD can easily impact the markets. As a general rule, since the USD is on the “other side” of c90% of all currency trades, US economic releases tend to have the most pronounced impact on different financial markets.
A key strategy that traders on different markets have adopted includes news trading. When trading news, one has to know which releases are actually expected that week and be up-to-date with all critical news feeds and market-moving data. There is a lot of information to keep your eyes on since most important economic releases for any country cover various areas such interest rate decisions, retail sales, inflation, unemployment, industrial production, business sentiment surveys, consumer confidence surveys, trade balance and manufacturing sector surveys.
One of the concepts that enable traders to remain updated with all developments on the economic calendar is social trading. This is one of the newest trends in financial markets trading where people can connect, interact, discuss and profit in a community trading environment. Social trading; (i) enables traders to receive real-time alerts on-the-go for important economic events and obtain the latest fundamental/technical commentaries; (ii) necessitates information-sharing/knowledge transfer and (iii) less experienced traders can benefit by following the trades of more experienced traders. While a number of applications have been developed to enable social trading, social media and messaging platforms with live chat capabilities can be used for the same purpose. Piggy has embarked on a national campaign aimed at increasing the participation of individuals on Zimbabwe capital markets such as the Zimbabwe Stock Exchange (ZSE) and Financial Securities Exchange (FINSEC) using the C-Trade platform. Piggy has proposed a WhatsApp-based Social Trading Group as illustrated below;
WhatsApp provides a perfect platform to create Social Trading Groups whereby a group of traders can co-ordinate themselves and share information as well as trading ideas or strategies. This new trend is very beneficial and can be used by new traders that would like to connect and receive ideas directly from other trading teams. Join the piggybankadvisor.com social trading group today by contacting the group admin on +263 78 358 4745 to be added to the WhatsApp Group.
Join a piggybankadvisor.com WhatsApp based social trading group today by following the link; https://chat.whatsapp.com/GOqNASPbCFWEyNDb5AWG28
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