A new class of currency

Major currencies and exotic currencies are the current classes of currency. However, big brokers could easily declare some currencies to be a class above the others in terms of spread. Spread helps all traders from the little £500 traders all the way to the big traders spread can determine whether a market is reasonable to enter. If you were not already in the EURZAR market before the spread hit 40+ pips, there is no benefit to gain, the risk to reward is almost never worth it with currency pairs being so hard to predict past a foreseeable future. Companies like Amazon and Tesla have a product base that their value relies on, for currencies, it's a whole complicated web of connections as you all know.

My point is, that Currency pairs like USD, EUR, GBP, possibly others like CHF, can be relied on to not fall below a certain resistance line. If you asked even an amateur trader, trading a day, to draw a support line on a D/Hr graph, he could do it easily, there are very few points where it dips below a fairly low support line, It's almost the first thing they teach you for trend analysis. Fundamentals are important in any competitive arena and you cannot start to assign a trend before you identify the lowest that people are willing to sell or buy at so how can trend analysis traders be competitive if a leg cannot be identified to stand on? When you can rely on a stock, at least short term gradual gains or losses can be identified and trend analysis can be done, if this wasn't the case, scalping would be the dominate style of trading it is only that in day trading, where people are willing to risk small amounts of money, Trend analysis is where the big bets are made and security is either gained or lost.

This comes back to the Tesla and Amazon, as they have products that will remain useful for the coming foreseeable future in everyone lives and companies like this are becoming more powerful by the day, but classifying companies should come after classifying countries, you cannot identify with a company but people identify with a nation, its patriotic and in human nature, psychologically, we like to form and be part of groups. Which is also what everyone should constantly be wary of any time they put an idea into the trading universe. With forums and social media's increasing in popularity our sense of connectedness is increasing everyday and this shouldn't be forgotten for trading either, countries like America have companies that need a place to do their business, so countries can be considered almost landlords of these big companies, as any good business landlord, their tenants should be given fair and open business opportunity within a regulated and fair market, and for a home landlord, their citizens should be treated with respect as humans. For a currency to be considered a class above it would produce a global support line, that further support lines can be drawn from, thus a flourishing and confident market where businesses and people can live the lives they want to, and another human nature which is the need for a sense of freedom, just like any animal, we don't like being caged, and we don't want an economy that can do this everyone hates the bears that put in an order that can manipulate all the other orders.

For economic analysis to move in the right direction and avoid as much speculation and manipulation (which should be the core of ideas to avoid the speculation of lay persons and manipulations of large players). With trading become more and more accessible, Voices will become more trusted and followed and we want this to be the right people who have the prosperity of everyone as the main goal rather than their personal balance. Countries should be considered more safe than companies, companies can and will charge people for things, countries are supposed to have their peoples best interests at heart. If a player in the Forex game became so affluent that they could manipulate the market on a day to day level could they control the global rhetoric? This is scary to me which is why I spend the time to write this post.

These currencies, therefore, can be considered stable enough to be classed as the class above major currency (i can't think of a catch name, what is above major? haha). The reason this would help is that it could provide stabilization across the entire world once anyone from ISA account holders to Fund managers can be relatively safe in the knowledge that a currency won't crash other currencies can use them as a support line to increase their own value. Value is given based off what it is compared to that's the basis of all trading and having a fair and unified currency is good for humans which is what spurred the interest of bitcoin. One of the reasons bitcoin crashed a while ago is that people were scared that it was a hollow shell, and that what they were going crazy over actually had nothing in hard assets, but the hard asset is the connectedness, but how crazy is that? Our sense of connectedness is currently being valued and for my country it is 1 Pound sterling equals 0.00014 Bitcoin. Everyone wants a currency they can rely on how can you feed your children and house them and give them a good future if the money in your pocket might suddenly collapse. Let companies collapse and allow countries, and their currencies, to be supported by the very connectedness that drove you to finish reading my post. I like my home to be safe, and im sure everyone in the world would agree with me.

I could write about this for a while longer and if there is any interest, i'm very willing to debate the idea.

Thank you for reading
David Cummins
University of Hull
[e-mail]