Forex trading business – It is possible that a good formula could be built around the loan-deposit ratios of commercial banks, the underlying assumption being that the Federal Reserve Boardâ€which influences this ratio by its actions in the money marketâ€is a major influence on the stock market.
Although the relationship of business cycles to stock market cycles was distant during the war and postwar years, it may be that a formula based on business indicators might again be profitable in the future. All these areas, of course, would require detailed investigation, but the important point is that the reader need not feel restricted to the formulas that have been devised in the past. In order to show how an original formula may be constructed with little trouble, this writer has devised and tested a modification of the constant ratio formula, based on odd lot indexes, that would have given adequate results over a number of years. Like the “compromise plan” described on page 77, it is simply the constant ratio plan with an added feature, based on odd lot trading, to improve results. As used by specialists in the study of odd lot statistics, the significance of these extends far beyond that indicated by the use made of them in this formula.4 For the present purpose, it will be sufficient to point out that studies conducted by Garfield A.
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[tags]Day Stock Trading[/tags]