I think Forex traders often care about economic indicators every day. Many people are checking what indicators are available today. But are few people looking at the political situation? Especially because of the exchange rate, the overseas situation has a great influence on the exchange rate. In fact, in the long run, the political situation has a much greater influence than economic indicators. It is the political situation that traders should be aware of.
It is essential for swing traders to understand the political situation
If you are a day trader or scalping, it will not be a problem if you only look at that day and that time. However, swing traders across days and weeks should always anticipate long-term movements and enter. Economic indicators have a big impact on a single shot, but in the long run, politics definitely has more power. Swing traders can’t win without looking at things in the big picture. International affairs have the greatest influence.
Asia could become the world’s fire
Looking at the international situation as of 2021, we can see that Asia is in a very dangerous situation. There is constant friction between China and its neighbors. China is currently exerting external pressure on Taiwan, Japan, India, Vietnam and the Philippines. Moreover, democracy is disappearing from Hong Kong. In contrast, the United States, the EU, and the United Kingdom impose economic sanctions on China. It can have a huge impact on the market, as it is in a very dangerous situation and can lead to war. It is expected that the composition will be China vs. the world in the future, and the world may face even greater changes than ever before.
Understanding the big picture is the way to win in swing trading
Not only the standard, but also politics, international affairs, and central bank interest rate policy. Swing trading is to think about everything comprehensively and trade. There are many things to think about because you can win big. It spans days and weeks, so you have to look at it from a long-term perspective.