The U.S. is the source of most of the political heat generated by China’s foreign exchange policy. But how does that policy affect the developing world

China’s economy during the past 30 years has changed from a centrally planned system that was largely closed to international trade to a more market-oriented economy that has a rapidly growing private sector and is a major player in the global economy.

Deterioration in the environment – notably air pollution, soil erosion, and the steady fall of the water table, especially in the north – is another long-term problem.

China is also the second largest trading nation in the world and the largest exporter and second largest importer of goods.
The PRC government’s decision to permit China to be used by multinational corporations as an export platform has made the country a major competitor to other Asian export-led economies, such as South Korea, Singapore, and Malaysia.

The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978.

Its mineral resources are probably among the richest in the world but are only partially developed.

The technological level and quality standards of its industry as a whole are still fairly low, notwithstanding a marked change since 2000, spurred in part by foreign investment.

The market-oriented reforms China has implemented over the past two decades have unleashed individual initiative and entrepreneurship, whilst retaining state domination of the economy.

Globally, foreign investment decreased by almost 40 percent last year amid the financial downturn and is expected to show only marginal growth this year.

“The growth rate (for ODI) in the next few years will be much higher than previous years,” Shen said, without elaborating.

It also aims to sell more than 15 million of the most fuel-efficient vehicles in the world each year by then.

In large part as a result of economic liberalization policies, the GDP quadrupled between 1978 and 1998, and foreign investment soared during the 1990s.

Agriculture is by far the leading occupation, involving over 50% of the population, although extensive rough, high terrain and large arid areas – especially in the west and north – limit cultivation to only about 10% of the land surface.

In terms of cash crops, China ranks first in cotton and tobacco and is an important producer of oilseeds, silk, tea, ramie, jute, hemp, sugarcane, and sugar beets.

Horses, donkeys, and mules are work animals in the north, while oxen and water buffalo are used for plowing chiefly in the south.

Coal is the most abundant mineral (China ranks first in coal production); high-quality, easily mined coal is found throughout the country, but especially in the north and northeast.

China is among the world’s four top producers of antimony, magnesium, tin, tungsten, and zinc, and ranks second (after the United States) in the production of salt, sixth in gold, and eighth in lead ore.

China’s exploitation of its high-sulfur coal resources has resulted in massive pollution.

The east and northeast are well served by railroads and highways, and there are now major rail and road links with the interior.

More:
Does China’s Forex Policy Beggar Its Neighbors?

Just as there are mistakes that are common in currency trading, there are also habits and principles of successful currency traders. It is said that we learn 70% of what we know with our eyes. As a currency trader you would be wise to watch those around us that are successful, and mirror their strategies as much as it is possible in your own trading plan.

Your Trading Plan

We have written before about the necessity of a trading plan. Failure to execute a viable trading plan is a stepping stone to failure. Successful traders are successful for a reason. No successful currency trader will last very long without a detailed, well conceived, trading plan. Your trading plan will include a specific plan for each position, including an entry point, a stop loss exit, they take profit exit and position size. With those components in place, think for a moment how you would react to market conditions as they present themselves. The answer is you have every potential event covered in the details of your trading plan.

Monitoring Current Events

The Forex trading hours not only present an opportunity to trade almost anytime of the day or night, but our significantly affected by current events. Successful traders are able to monitor current events and look into future events and determine if the market has priced in an expected outcome. At the same time, successful traders can determine what is the likely reaction if the event fails to match expectations. If you are able to build this particular strategy into your trading plan you won’t be left trying to figure out what happened or how you lost money. While others may scramble while the market digest unexpected news, you were prepared if you are monitoring current events and you should have a plan in place to trade the news.

Flexibility

Making money trading currencies is not necessarily about being right and wrong. Successful currency traders are able to resist becoming emotionally attached to a particular position. They are flexible and are able to adapt to current events and news. You must be able to pull the trigger and abandon an open position in the news or events take the market or the pair that you are trading a different direction. While a stop loss as we have discussed will help, your experience in time should be able to tell you it is time to move on. Remain flexible, nothing is written in granite when it comes to currency trading.

Being prepared

If you were to ask any successful businessman or businesswoman what was a key component to their success, their answer would be that they were prepared. Trading currencies is no different. You must be prepared as much as it is possible. Remember the market moves on news and information. You can prepare yourself by reading and forecasting economic data news releases. Find out when central bankers and finance officials will be speaking. Their words are often accompanied by market swings. You should know when central banks set their interest rates or if they are about to change. Remain vigilant and stay aware of time zones in different countries. Unexpected news is a driving force when it comes to currency trading. You should conduct exhaustive research and assimilate as much of this financial data as possible. It is important to note that collecting this data is not a one-time affair. As a currency trader who wants to be successful, you must exercise due diligence on a daily basis. These factors won’t guarantee 100% success, however, they will enhance your chances.

Trading securities like stocks and commodities have something in common with currency trading. All have trading platforms used to trade those securities. There are a number of Forex trading platforms from which to choose, and most differ greatly and the expense for using these programs varies just as much.

Simply put, a Forex trading platform is trading software that is used by currency traders to help with trading analysis and trade execution. Currency trading platforms will help traders order taking methods, as well as provide charts for analysis and comparison.

There are number of options to consider when choosing a Forex trading platform. Essentially your trading platform choice will provide a bridge of information between you and your broker. It will provide quotes, intraday trading statistics, and charts.

Typically it will include an interface between you and your broker for entering orders. Your software can be installed locally on your computer and most platforms are easily adapted to different computer systems, like Windows, Mac and Linux. You will find that many brokers also offer web-based platforms that can be accessed from locations other than your own personal computer.

Most trading platforms are available at no cost, however, many brokers offer more sophisticated trading platforms that offer a higher degree of functionality for an additional cost. Depending on how active a trader you may be in the currency markets will dictate what level of trading platform best fits your needs.

There are a number of other considerations when you go about the process of choosing a Forex trading platform. Primarily look for a trading platform that is simple, and easy to use. Additionally, determine whether or not the trading platform you like is free. If not, how much is that Forex trading platform going to cost?

• Will you be able to add additional features to your trading platform in the future?
• What technical indicators are available on your trading platform.
• What fundamental information is available on your trading platform?
• Will you be able to make trades from available charts?
• Is the user interface easy to understand?
• Does your trading platform have an application program interface ( API) that will allow you to integrate third-party or proprietary software?

Trading currency markets successfully is about assimilating information, implementing a strategy and seeing it through to its conclusion. The more information that your Forex trading platform provides the more opportunity for success you will have. Your platform should include all relevant fundamental and technical analysis.

Perhaps one of the most important components of a good Forex trading platform is the ability to open a demo account before funding an account.

Investing in any form requires that you manage risk. Currency trading is risky investing at its core. Ultimately, the Forex trading platform you choose should be able to help you manage that risk more successfully.

Very few people are born successful currency traders. The ability to practice your trading strategies, trading skills and practice making sound decisions is paramount to your success. Demo accounts will help you to this end. A good Forex trading platform will also allow you to define your trading style.

Again with the use of a demo account you can begin to discern your individual style when it comes to factors like, your trade timeframe, your currency pair selection, the rationale for making your trade and the risk associated with your trade. If all of these factors sound complicated, that is all the more reason for choosing a trading platform that will allow you a demo account to hone your skills.

Choosing the best Forex trading platform for you should be as important as choosing the currency pair in which you wish to trade. Here we have listed some of the Forex trading platforms for you to consider.

• Etoro

• Easy Forex

• Ava FX