We perform rounding off numbers in our daily activities, be it going to the market, considering the temperature, or buying a piece of property. All of us are drawn to round numbers or those that end in zero. In online forex trading, round numbers have a major role to play.
The Reason Behind the Interest in Round Numbers
Using the stock market as an example, the Dow Jones Industrial Average approached the 10,000 mark for the first time in March of the year 1999. The event included index testing investors for approximately two weeks before finally closing above 10,000. This event was greeted with elaboration because it was a significant milestone.
Seven years later, the extensively tracked index was trading at an estimated 11,000. The investors who frenzied during the peak of the Dow 10,000, however, had little to show for it.
Back then, the success of Dow was highly publicized and filled the front pages of newspapers and magazines. Channels for financial news ran four-hour television specials advertising the event. At the time, the whole market was absorbed on the figure.
There are some scientists who believe that human beings generated a numeric system called “base-10″ because we are born with 10 toes and 10 fingers. More so, we began to believe in terms of factors of 10. This is one of the reasons you need a solid free forex trading system.