Economics

This is a vast subject, which would require a website in its own right !

In this section you will find information relating to how the fundamental economic situation is communicated to financial markets, as well as a selection of FAQs on the subject, which are derived from questions posed by members in the past.

No matter what your level of understanding of the subject we are able to offer members a valuable service in that we can apply 'text book' economics to the 'real world' (if that's what you can call financial markets !) and we are able to do this on a real time basis.

The most effective means of learning anything is by applying the theory to what is actually happening in the markets and rather than blandly regurgitate what can be read in any decent economics text book, we prefer to stimulate members' interest in this important subject by answering and developing any questions they may have as they relate to the various markets we cover.

Having a wide understanding of economics is one thing ... being able to apply it to what we see on a daily basis in the markets is another. Quite often we come across economic commentators, who display a complete lack of understanding of why a market is reacting the way it is. They forget one critical element when looking at the subject of economics and that is traders' psychology. The reason they fail to understand this element of psychology is that the large majority have never held a position in their lives and are not able to adequately apply what they know to market movements.

Fortunately for ourselves and members, we do understand how to apply our economics' background. Why ? Because we have positions running based upon our understanding of both economics AND trader psychology. After all economics is just a subset of the realm of human psychology and as we know, humans are not rational economic agents, so traders will not always react rationally to developments on the economics front.

That's where we differ from other services, so if you have any questions relating to this wide and interesting subject, don't be shy and please feel free to ask !