bhinder1713006680 Posted February 20, 2015 Author Report Share Posted February 20, 2015 STP broker forex – Straight Through Processing The forex market being the largest market in the world, the investment in the currency trading is continuously increasing. As there is always risk associated with the trading, well versed knowledge regarding going trends in the forex market is very essential. There are many other factors that need to be regarded while trading. Thus to avoid the risk due to the unawareness to the trading system, trading through the broker will bring many benefits to the trader. The broker using the model name STP (straight through processing) is known as the STP broker. The STP brokers act as the mediator between their client and their connected liquid providers which can be bank, another broker or any investor, etc. This is the electronic process, where the client places their order to the broker and in turn brokers will directly place their client’s quotes to the liquid providers. The broker will then find their appropriate liquid provider and ask the liquid provider to execute the deal. The brokers earn profits through the fixed commission charged by them for the single trading. Thus the more trading volume carried out by the client, the more commission will be earned by the client. The commission charges vary as per the different STP brokers. Sometime, the STP brokers also acts as the market maker in which they try to manipulate the ask/bid rate obtained from their liquid providers to gain some profits. They will find the liquid provider with the appropriate bid/ask rates and change the pip value of the given quotes by few units say 0.3 to 0.5, before presenting that quote to their clients. The difference in the increase of the spread will be the profit for the STP brokers. Thus adding the mark up to the received quotes, there is the scope of getting the varying spread every time. As the STP brokers can process the clients order without any intermediation, they are considered as the non dealing desk brokers. So there will be no delay in the processing of the clients orders and will provide the transparent trading system, where the clients are assured that their orders are routed to the real market, instead of artificial market. Also due to the less processing time, there is also the less risk of settlement. This is the main reasons behind the selection of the STP brokers by the clients. Also through the STP brokers, the clients can get the chance to trade on the competitive bid/ ask rates, due to the presence of wide range of the liquid providers who can also provide client more liquidity. Thus there are many benefits of trading through the STP broker. Certain brokers also provide other services like everyday market trends, guide to trade, etc. But along with the benefits, it is also need to take care that the STP broker, you are selecting is the true STP broker. Because there are many brokers available in the market, which does not transfer the clients order to the true market. Thus the selection of STP broker should be done very carefully. http://www.commexfx.com/stp-broker-forex-straight-processing/ Quote Link to comment Share on other sites More sharing options...
bhinder1713006680 Posted February 23, 2015 Author Report Share Posted February 23, 2015 The Future of the Forex Industry after the Swiss Franc’s Cap Sudden Drop In the financial sector, having a fluctuating currency which is not only predictable but also unstable is one of the greatest aims. When there is a sudden drop in the value of a currency, a number of negative effects on the market follow. This is exactly what happened on January 15, 2015 when the Swiss National Bank (SNB), removed the cap that had been placed on the franc against the euro. But what are the consequences of this action? What is the future of the forex industry? Let’s discover the answers to these questions in this article: One of the industries that will be hit the hardest by this move is the Swiss export industry. The exporters have suddenly found themselves in an undesirable position as their products command less competitive rates in the overseas markets compared to what they commanded before the cap dropping. This has led to the drastic decrease in the price of shares and hence resulting in losses by the stockholders. This move has also laid fertile ground for the central bank’s opponents who are most likely going to oppose any such drastic moves in the future. This has already been experienced in the past when in December of last year, a referendum was held in order to convert a majority of the bank’s foreign exchange into gold which is more stable. Even though the initiative failed, the latest move by the bank has given the opponents enough power for any future campaigns. The SNB’s monetary policy will have a ripple effect on major financial institutions in other countries. It will make markets quite skeptical on whether such policies in other institutions will stand the test of time. It would therefore discourage investors from pumping their money into the forex industry. With reduced investor confidence, less money will flow into the forex industry thus decelerating growth in the sector and effectively slowing down economic growth in other sectors as well. Another prominent predictable effect of this move is the fall of the Swiss stock market. Most investors were shocked and caught off guard by this action and have continued to sell their equities and shield themselves by running from the franc itself or gold. Even those who are still holding onto their equities are mostly doing so in anticipation of the stabilization measures they expect from the SNB as well as the European Central Bank to undertake. This move may also work against the strides made so far in the recovery of the global economy from the 2008-09 recession. According to the International Monetary Fund, this action may result in the Eurozone and Japan being held in a world of slow growth and low inflation for prolonged periods of time. This would be a blow to the health of the global economy whose growth is still too brittle, too low and too lopsided to withstand such situations. So, the forex industry needs to pay a lot of attention in making itself successful. http://www.commexfx.com/future-forex-industry-swiss-francs-cap-sudden-drop/ Quote Link to comment Share on other sites More sharing options...
bhinder1713006680 Posted February 25, 2015 Author Report Share Posted February 25, 2015 Going Short or Long –Strategies for Successful Trading Decision The Forex market is fast becoming a focal point for millions of new entrants due to its unique and extremely beneficial qualities. We are seeing a wave of people that have learnt how to make clever investment choices in order to benefit from the market. However, going long and going short are two strategies in Forex that may take slightly longer to grasp, but once a thorough understanding has been reached you will be able to make clear and crucial decisions in order to be profitable. Below we will examine the two main strategies mentioned in detail in order to clarify. Going Short This trading strategy is when we sell the base currency in order to buy it at a later stage when the price begins to drop, thus gaining return from the transaction. For example, if the current GBP/USD is 1.5345 meaning we pay 1.5345 Dollars for one Pound Sterling, and we have $1000 dollars, we would sell the Dollars in order to purchase the Pound Sterling. This is carried out when one anticipates the cost will once again drop in a short period of time. Once the price drops for example GBP/USD drops to 1.5350, this implies that more Dollars can be purchased with the same amount of Pounds that we obtained in the beginning. In other words one can keep the additional Dollars as profit, which he simply earned by considering the dollar as the base currency. Risk in Short Position As with all financial markets, forex has the same amount of risk involved. One can expect the risk of prices going in the exact opposite direction than originally expected, causing you a loss instead of profits. For example, if the GBP/USD gets to 1.5340, one would not even get the same amount of Dollars that he sold initially. This strategy is only profitable if prices drop. Going Long In the Forex Market, going long refers to buying of currencies with the intent of reselling them at a later stage once the price increases. Should one notice an increasing trend of a currency for a long period of time, then buying would be the correct option and keeping the trade open until we see the price reach its maximum point before reversing. For example, GBP/USD is showing an increasing trend for the past few hours or days and the current price is 1.5400 and it is increasing in price, then you can sell the Dollars to purchase the Pounds and wait for the prices to get to the desired level. You could sell when the price gets to 1.5500 and that yields you more Dollars than your initial investment. Risk in Long Position There is the risk of the price declining once you have purchased the currency. In this situation, your loss would equal the difference in the price at the point which you bought the currency and the price at which you are selling it. Regardless of which position you open or the investment in Forex market, all you have to know is the market trend and the economic conditions of the base currency. http://www.commexfx.com/going-short-long-strategies-successful-trading-decision/ Quote Link to comment Share on other sites More sharing options...
bhinder1713006680 Posted February 27, 2015 Author Report Share Posted February 27, 2015 The Future of the Forex Industry after the Swiss Franc’s Cap Sudden Drop In the financial sector, having a fluctuating currency which is not only predictable but also unstable is one of the greatest aims. When there is a sudden drop in the value of a currency, a number of negative effects on the market follow. This is exactly what happened on January 15, 2015 when the Swiss National Bank (SNB), removed the cap that had been placed on the franc against the euro. But what are the consequences of this action? What is the future of the forex industry? Let’s discover the answers to these questions in this article: One of the industries that will be hit the hardest by this move is the Swiss export industry. The exporters have suddenly found themselves in an undesirable position as their products command less competitive rates in the overseas markets compared to what they commanded before the cap dropping. This has led to the drastic decrease in the price of shares and hence resulting in losses by the stockholders. This move has also laid fertile ground for the central bank’s opponents who are most likely going to oppose any such drastic moves in the future. This has already been experienced in the past when in December of last year, a referendum was held in order to convert a majority of the bank’s foreign exchange into gold which is more stable. Even though the initiative failed, the latest move by the bank has given the opponents enough power for any future campaigns. The SNB’s monetary policy will have a ripple effect on major financial institutions in other countries. It will make markets quite skeptical on whether such policies in other institutions will stand the test of time. It would therefore discourage investors from pumping their money into the forex industry. With reduced investor confidence, less money will flow into the forex industry thus decelerating growth in the sector and effectively slowing down economic growth in other sectors as well. Another prominent predictable effect of this move is the fall of the Swiss stock market. Most investors were shocked and caught off guard by this action and have continued to sell their equities and shield themselves by running from the franc itself or gold. Even those who are still holding onto their equities are mostly doing so in anticipation of the stabilization measures they expect from the SNB as well as the European Central Bank to undertake. This move may also work against the strides made so far in the recovery of the global economy from the 2008-09 recession. According to the International Monetary Fund, this action may result in the Eurozone and Japan being held in a world of slow growth and low inflation for prolonged periods of time. This would be a blow to the health of the global economy whose growth is still too brittle, too low and too lopsided to withstand such situations. So, the forex industry needs to pay a lot of attention in making itself successful. CommexFX discusses > http://www.commexfx.com/future-forex-industry-swiss-francs-cap-sudden-drop/ Quote Link to comment Share on other sites More sharing options...
bhinder1713006680 Posted March 2, 2015 Author Report Share Posted March 2, 2015 Bankers or Thieves? The financial sector, especially the banking subsector; has a lot of players involved. However, not all these ply their trade in the honest manner they should. This leaves many people wondering if they are actually bankers or thieves in disguise. This article seeks to address this question by focusing on a number of illegal activities that have been done in the past and are still being perpetuated by some banks, albeit under the table. These include: Charging Negative Interest Rates Normally, depositors usually expect the money that they deposit in banks to gain interest over the period of time that it is kept there. However, this is not the case when some banks decide to do just the opposite: they charge for depositing money with them. This has been done in the backdrop of economic instability such as the current situation in Switzerland, where the Swiss National Bank is charging a -0.25% interest on large depositors. This and similar moves by such institutions discourage investors, as it passes the burden of poor economic policies by the regulators on the bank clientele. Trading Toxic Debts This is another activity done by banks that very much disadvantages investors and reduces their confidence in the institutions. It has been likened to corporate gambling. The practice involves loaning out money to people or companies that have little chance of paying back the debt at all or with interest. This may lead to an economic crisis and massive financial loss. Creating Fake Investment Sectors This is a practice that is against international security laws and involves inducing investors to make sale or purchase decisions based on fictitious information, thus leading to the investors losing their money or stock. False Financial Reports Often, financial institutions have been found to produce and present fake financial reports that are either aimed at hiding some illegal activities that go on in them, or to portray themselves as being in a better financial position than they actually are. Money Laundering Moving money from the underground to the mainstream economy as well as tax evasion maneuvering acts are sometimes executed with the help of banks which pass the money through their chains. This works against the mainstream economy as the appropriate tax money is not injected into the economy. It also serves as a means of funding criminal activities. A case study is how it has just been alleged that HSBC was involved in a tax evasion scheme that saw its CEO shelter millions of pounds in a Swiss Bank account. Running Away From Taxes The banks themselves have sometimes been involved in illegal activities aimed at shielding them from taxes. One such example is the BMP scandal which exposed massive irregularities in the sector. Ponzi Schemes The Ponzi scheme involves banks paying dividends to older investors using the capital that has been invested by newer investors instead of the profits that they have rightfully earned. One of the well-known example of such activity was the massive Ponzi scheme at Goldman Sachs investment bank, where the conglomerate was ordered to pay up to $10 million as claim to all the investors who had fallen victim to the fraud. http://www.commexfx.com/bankers-or-thieves/ Quote Link to comment Share on other sites More sharing options...
bhinder1713006680 Posted March 4, 2015 Author Report Share Posted March 4, 2015 Benefits of Using a Forex Trading System Trading in forex being mainly a speculative practice, can be quite demanding on the trader. However, not all people wishing to do so may be financial experts or adept at analyzing the complex forex data. All they want is to place their currency where there can be maximum returns with little effort. This is where forex trading systems come in. They help you do all the hard work. Benefits of Using a Forex Trading System There are several benefits associated with utilizing these systems for trading in forex. Some of these include: Quick analysis- Since these systems are computerized, they are able to do complex market analysis in the twinkling of an eye. This saves the trader a lot of time and energy which could have been used if they did it manually. Furthermore, these analysis are highly accurate and are displayed in graphs or tables that are easy to synthesize. Trends- the systems are able to model possible future trends in the forex market by use of historical and current data. This enables the trader to get a rough picture of how the market may fair, thus enabling them to make the best moves and employ the most effective strategies in response to this output. Unlike us humans who can get carried over by emotions such as greed and fear, a forex trading system places trading orders purely by analysis of data to come up with the best. This ensures that you only trade in shares which will most likely rake in profits. Frequently Asked Questions Regarding Forex Trading Systems Many people wishing to start using or even those already using these systems have a lot of questions regarding them. If you are one of them, have no worries, for you will find this section extremely helpful as all these queries will be answered in a very clear and detailed manner. How Do They Work? This is the most basic question that most people have concerning the systems. These systems simply operate by analyzing the forex market activity. It identifies market signals that lean toward the inbuilt profitability parameters. It then automatically broadcasts an alert signaling a buy or sell before making the trade. Who can Use them? The software just like many others out there are not limited to professionals in the financial sector or IT gurus. Even newbies in stock trading will find the software really useful in enabling them to make trades. What Currencies do the systems Trade In? The systems are designed to trade in the major currencies that are used in global commerce. These include the US dollar, Pound Sterling, the Euro, and the Japanese Yen among others. Do they have User Support? The best forex trading systems come with a comprehensive user support center that will offer you any technical or service related assistance in case you get stuck. Furthermore, most have online help platforms on their websites to solve all your problems. This is especially useful to beginners and newcomers. http://www.commexfx.com/benefits-of-using-a-forex-trading-system/ Quote Link to comment Share on other sites More sharing options...
bhinder1713006680 Posted March 5, 2015 Author Report Share Posted March 5, 2015 Forex Vs Spread Betting Trading in shares on the stock market is one of the most important activities in the global economic sector today. This is due to the fact that it not only enables companies to raise capital, but also gives the traders an opportunity to get a piece of the profits gained by the companies whose shares they invest in. For traders, there are two directions they can choose to go when investing in shares: Traditional forex trading or spread betting. These methods have a number of similarities and differences that may act as a guide to the trader depending on their needs. In the next paragraphs, we discuss some of these aspects with an aim of comparing and contrasting the two. Definitions The logical point to start at would be to define each method since by definition, they are quite different. Forex trading involves buying and selling of the shares of the companies listed on a given forex market. Spread betting on the other hand refers to speculative betting on such shares by placing a bet whose outcome depends on whether the future price of the shares increase or decrease. Leveraged trading Given that spread bets are leveraged products, it makes it possible for a trader to gain exposure to large share values by investing with only a fraction of that value. For instance, to spread bet on Vodafone shares, a trader needs to invest about 5% of the stock value for that number of shares only. In forex trading, the trader has to invest the exact amount of money that is needed to purchase a certain number of shares. In this context, it requires more capital than its counterpart. Commissions charged Forex trading of shares usually attracts commission which is a percentage of the total stock value traded; it is charged by the stock brokers. Spread betting however does not attract any commission charges whatsoever. The trader gets to earn the whole amount of cash of the stock they invested in. Capital Gains Tax and Stamp Duty Charges For spread betting, the trader is neither required to pay any stamp duty charges nor any tax on the capital gains. Forex trading does not attract stamp duty but the trader is charged a capital gains tax. However, losses are considered as tax reductions. Expiry Spread bets do have expiry bets that are fixed to specific timelines. After these dates are reached, the investment is no longer active. Forex trading do not have any expiry dates (except binaries, options and forwards), thus enabling traders to hold onto and gain from the shares for decades. Physical Ownership Stock traders gain physical ownership of the company thus the ability to attend AGMs and hence participate in the formulation of company policies. The more shares one holds, the more influence they have. Spread betters do not have such privileges since it is simply speculative. Profit Gains For stock traders, one can only gain profit when the value of their shares appreciate. They suffer a corresponding loss when the price falls. Spread betters have the ability of going both long and short- and can therefore bet and gain from either a fall or a rise in share value. http://www.commexfx.com/forex-vs-spread-betting/ Quote Link to comment Share on other sites More sharing options...
bhinder1713006680 Posted March 11, 2015 Author Report Share Posted March 11, 2015 Pros and Cons of Virtual Finance Over the last decade, there has been a great surge in the development of internet technologies thus increasing accessibility to several people throughout the world. This has in turn led to an increase in financial activities taking place over the internet, known as virtual finance. These services are offered by traditional financial institutions such as banks and stock brokerage firms as well as newer institutions such as online payment services which are sorely based on the internet. There are many aspects of virtual finance that make it such an attractive medium that it is today. However, it also has some cons which may discourage people from widely embracing them. These two aspects are what will be focused on in this section article. Keep reading and learn more! Advantages of Virtual Finance There are innumerable pros that are associated with virtual finance. Some of these include: Wide Accessibility- Have you ever decided to go and visit a land based financial institution but found it impossible to summon the energy to do so? If you have had this experience, virtual financial institutions present you with a very practical solution and one that demands next to nothing in terms of the energy required on your part. This is because you can be able to access their sites from anywhere in the world and at any time without having to worry about travelling expenses or time. All you need is an internet connection. Ease of movement- Most people on average, deal with more than one financial institution. However, moving from one land based financial institutions offer a great challenge due to the physical barriers and the time constraints. Virtual financial institutions eliminate this since with them, one can move from one institution to another with ease by just the click of a mouse to open new tabs. This enables one to be engaged in several financial dealings simultaneously without any constraints. Fast service- If you are familiar with most land-based financial institutions then you are aware that more often than not there will be a queue that you have to join when seeking services. This is completely eliminated in virtual financial institutions, where you will get the transaction you want done completed in the blink of an eye without waiting for long, which saves you time. Availability and mobility- This is one front on which the virtual financial institutions are very advantageous. Unlike land based institutions which have set times at which they close, the virtual ones operate 24/7, 365 days a year on any device with internet connection. Disadvantages of Virtual Finance Notwithstanding the above pros, virtual finance also has some cons associated with it. These include: Security- This is the biggest concern to most people. This is because their virtual accounts may suffer phishing, malware and hacker attacks thus leading to losses. Personal relationship- With physical finance institutions such as banks, one has an opportunity to create a personal relationship that may last for many years with it. This is not the case with the virtual institutions as their dealings are purely transactional. Transaction issues- Some transactions and problems are better addressed on a face to face basis. Virtual finance does not offer clients this as all transactions are based on the web. http://www.commexfx.com/pros-and-cons-of-virtual-finance/ Quote Link to comment Share on other sites More sharing options...
bhinder1713006680 Posted March 12, 2015 Author Report Share Posted March 12, 2015 The Gold Bubble Price and the Swiss Franc Gold is one of the most popular commodity assets, as well as being the highest valued precious metal. The gold bubble, which refers to the high market activity it attracts, is a millennia old due to this popularity. The Swiss Franc on the other hand is one of the eight basic currencies that are widely used in the global forex market. With this in mind, it is quite obvious that the value or price of one will without an iota of doubt have an effect on the other in one way or another, directly or indirectly. This article focuses on how this has been the case in recent times and how this has in turn had effects on the global forex market and economy. The Beginnings of the Swiss Franc Value and the Gold Bubble Price The forex market is subject to several market forces that are mostly beyond the control of financial institutions such as the Swiss National Bank (SNB).To compound matters, the bank recently enacted unsound policies that resulted in the ballooning of Switzerland’s balance sheet from 100 to 500 billion in just over five years so as to hold the Franc down against other major currencies. This value represented about 2/3 of the countries’ GDP. This situation was especially dangerous for Switzerland who over the years has been a poster child of good economic policies, with the franc having been on a constant appreciation against other currencies. This, combined with its largely export-driven economy made it one of the most dangerous economic situations ever experienced by any country since the Great Depression. Compensatory Measures Taken In the wake of this looming disaster that may have seen the collapse of the Franc, the Swiss people went on a referendum in an effort to tap into the gold bubble as an alternative to the paper currency. The November 2014 vote had a 3-point agenda on which the Swiss had to vote on: Returning the Swiss National gold held offshore back to the country Compelling the SNB to hold at least 20% of the their assets in nothing other than solid gold To prevent any further sale of gold. With stiff opposition from both the Swiss government and the SNB, the Swiss people returned a ‘No’ vote thus maintaining the status quo at that time. The Aftermath Following the referendum results which prevented the widespread use of gold reserves, the SNB got a chance of taking other recovery measures to make the Franc more stable. The action it took was to remove the 1.20 EURCHF cap that had been set in late 2011- a time when the gold bubble had hit an all -time high. This made the franc fall below 1.0. The move did not come without consequences. The value of gold once again soared as stock traders escaped the hit to hedge themselves against the losses resulting from the currency’s devaluation. Also, greatly affected were the Swiss manufacturing industries which experienced massive losses on their exports. http://www.commexfx.com/the-gold-bubble-price-and-the-swiss-franc/ Quote Link to comment Share on other sites More sharing options...
bhinder1713006680 Posted March 19, 2015 Author Report Share Posted March 19, 2015 200% Welcome Bonus on your first deposit! Create a Mini account and get some extra trading cash to get you started! Start trading with $5 > http://commexfx.com/campaigns/200bonuspromotion/ Quote Link to comment Share on other sites More sharing options...
bhinder1713006680 Posted March 20, 2015 Author Report Share Posted March 20, 2015 How to Deal with Stress when Trading Tell me if you have ever found yourself in the following trading scenario: You have just suffered a big loss, the biggest you have ever had and are feeling averse to risk- nearly to a level where you see nothing good or safe to trade in. There is a biological origin to this experience that is very common amongst traders and it, more often than not, creates a negative psychological effect on you. These biological, as well as psychological causes, may have a great impact on your mindset in trading, possibly setting the basis for the future moves in your trading career. However, the great thing is that your brain alongside your trading future can be altered. Risk in trading Losses will have an effect on your trading psychology and brain. Cumulative losses will lead to growth of cortisol in your system, too much of this can cause your neurons to fire – which will result in the inability to concentrate and make good trading decisions by re-wiring your brain. Afterwards of risk in trading The hippocampus area of the brain records the facts regarding the big losses while, the amygdala records their significance emotionally. The effect of the latter on your trading can be read here. Stress affects both – releasing hormones, which can heavily affect the performance of your brain. The tendency to recall these trading events increases with exposure to loss and results in increased cortisol and stress levels. The intensity of these hormones imprints the events in your memory, thus corroding your trading mindset. This makes you draw upon the negative experience whenever a new setup arises when analyzing price action in real time; thus making you greatly risk averse even in the presence of a high-quality signal, thus paralyzing you. You may also be ‘Shell-shocked’ from the event, but still capable of making a trade – however, these trading decisions may not yield consequences because you would realize when reviewing your trades that there was no setup or pattern at all. This is as a result of a biological reaction to the stress you experienced and to some traders, without the proper tools; it may affect them for several years or even, they may never recover from it at all, remembering it whenever they trade. How to change them? The positive side is that your brain can be rewired and the neural connections can be rebuilt and tuned for success with new connections that overpower this event- making you regain your confidence and make great trades. One great way of re-wiring your brain for success is by entering a ‘whole-brain state’ where; both hemispheres of your brain operate in an integrated balance that prevents the pumping of stress hormones into your system. This can be avoided by being overly emotional or too emotional. Yoga is another effective way of achieving this. If you have experienced the aforementioned events and are still experiencing them, then this is a great tool to help you build a successful trading mindset. http://www.commexfx.com/how-to-deal-with-stress-when-trading/ Quote Link to comment Share on other sites More sharing options...
bhinder1713006680 Posted March 24, 2015 Author Report Share Posted March 24, 2015 Trading has never been more fun! For a limited time only CommexFX offers you the chance to open a live trading account and get up to 100% Tradable bonus! Claim your Tradable Bonus: http://commexfx.com/campaigns/50-70-100-tradable-bonus-promotion/ If you are a trader with a successful strategy then this is the bonus for you! Quote Link to comment Share on other sites More sharing options...
bhinder1713006680 Posted March 26, 2015 Author Report Share Posted March 26, 2015 Learn Forex Trading With 10 Tips Trading in Forex is one of the best ways to invest your time and money. However, it’s a proven fact that anyone can learn Forex but only a few can make profits. Forex Trading is a business activity just like any other; you either gain or lose. That’s why, it’s highly advisable to educate yourself about how to “trade currencies for profits” if you really want to succeed in the forex market. Here are a few tips that will help you learn Forex Trading with much ease. Always have a Back-up Income for Security Reasons Although Forex Trading is a lucrative way to earn huge sums, there is a high risk of losing capital. In Forex Trading, sometimes it’s hard to predict the outcome. We’ve heard about people who have lost a great deal of money and ended up being broke. The truth is, it’s all about taking risks and having an alternative source of income is highly advisable especially to the beginners. Instead of Experimenting, Follow the Conventions As stated earlier, Forex Trading is all about taking risks. However, there are various trading rules that one must not break. Remember that Forex Trading does not favor anyone. That’s why, making even the slightest mistake can cost you a lot. The best way to do this is letting the loss to come naturally without being triggered. Don’t Engage Yourself in Competition Each trader follows his own theories and beliefs while trading. Thereby, some traders are willing to take more risks while others will decide to play a fair game. It’s up to you to do you trade based on previous experiences than following what others are doing. Practice the Trade Regularly to Gain Experience The only way to gain experience is by practicing trading. There are no shortcuts to success in Forex Trading. Practice enables the trader to make the right decisions in order to trade effectively. Don’t Increase the Risk Levels After Seeing Some Positive Signals The biggest mistake that most traders make is increasing the risk levels immediately after a few successful trades. It’s important to focus on whatever appears to have stronger fundamentals instead of trading based on successful performances. Overconfidence Will Only Reduce Your Chances of Survival In Forex Trading, the chances of surviving for an overconfident trader are minimal. The truth is, in this trade, there are good and bad times which are hard to predict. The best thing is to learn from your past experiences and apply the right tactics during your venture. Stop Wasting Time on Excessive Research Most traders waste valuable time and money researching and using several approaches to the trade. Instead of over experimenting, the best thing to do is to use a particular approach and proceed in a systematical manner. Adopt a Simple System The only way to survive in Forex Trading is by using simple systems instead of the complex one because it’s easier to get better results in the end. Never Exaggerate Your Achievements Just like with all trades, it’s always good to stay humble even during good times. The problem with some traders is that they have the tendency of exaggerating their achievements but do not open up on their failure. This makes other people assume that all is well and may not assist you in any way. Always Take Some Time Off Trading can be a daunting task, especially the depression that occurs when losses are incurred. Your mind may become overworked and you may develop health problems. Always ensure that you are getting enough time to relax your body and mind. http://www.commexfx.com/learn-forex-trading-with-10-tips/ Quote Link to comment Share on other sites More sharing options...
bhinder1713006680 Posted March 27, 2015 Author Report Share Posted March 27, 2015 CommexFx Review CommexFX gets atop the contenders with the diversified trading strategies, maximum client satisfaction and no hidden policies and procedures. From lowest spreads in the markets to the very option of copying other traders online, CommexFX makes its mark on the Forex Trading market. Being licensed by the CySEC, a user can rest assured to be working with a trusted and a regulated FX broker. When it comes to the best of the FX market offers, CommexFX carves new ways coming up with the state of the art technology woven with robust technical expertise. With both live and a demo account, a user is never left deserted to lose the money. Bagging expertise with demo one assures welcoming good amount of profit. In this CommexFX review, we’d go through where CommexFX stands out of others and how it can boast of being the best. Right after its launch, it has managed to grab the honorable awards like Best ECN Newcomer Asia in 2012 in addition to being the Best ECN Forex broker. Moreover, it has also garnered the Best Online Trading Platform badge. Let’s take a look at some of the best things to go with ComemxFX that would tell you why you need to choose it over others. Here we go: MT4 trader platform makes it easier than ever before to place trades. No complex and complicated figures and steps are involved. Moreover, it is also multi-terminal. The users can easily copy other traders with courtesy of MyFxbook Autotrade which is a socially connected platform offering the members to copy other ones who are already successfully making good bucks out of their FX trading on CommexFX. Mobile trading allows the users to place their trades on the go. Users can work it out on all of the major Mobile Operating Systems like iOS, Android, Windows and Blackberry. Users can open and close a position, monitor the performance live and produce the activity reports while trading within a lucrative ECN/STP environment. One of the best features of this latest CommexFX review deals with literally very low spreads. Other FX brokers in the market offer different spreads for different types of account. This discrimination won’t harm you whatever the size of your account is. The spreads offered are lowest in the market. The faster and prompt execution of trades makes the users comfortable with no chance of manipulating the prices as users have direct access to the live prices on the dashboard. The CommexFX manages to secure and segregate the clients’ funds where it deposits the same with globally recognized and trusted banks. It is also a member of the ICF that assures the safety and security of the clients’ funds. Transferring your funds has never been that easy as CommexFX offers a smart card for the same. The help desk is available 24 hours a day and 5 days a week. Imagine what you expect out of the best brokerage services, CommexFX has everything to offer. From a robust affiliate program to the best online trading environment, CommexFX has been tailored to meet your custom requirements. This CommexFX review brings to light all what you know. For more about the CommexFX, join us on FB or Twitter for regular updates. http://www.commexfx.tv/commexfx-review/ Quote Link to comment Share on other sites More sharing options...
bhinder1713006680 Posted March 30, 2015 Author Report Share Posted March 30, 2015 The Top 5 Most Successful Forex Traders Forex Trading requires discipline, hard work, as well as, determination in order to be a successful trader. Most people have tried their hand on the trade, but have ended up with huge losses. The truth is, there are risks involved in forex trading but the real gurus know what it takes to be a winner. If you are a newbie in Forex Trading, you need to follow certain strategies in order to be successful. To be successful in this field, you need to learn from other professionals who have made immense success in trading. There are various people around the world who are recognized for their expertise in this field and are included in some of the most successful traders in the world. Below is a list of some of the renowned forex traders who have made it through the good and bad times to be successful. Bill Lipschutz Bill Lipschutz was a brilliant student who had excellent mathematical skills. The New York born trader received his Bachelor degree in Fine Arts from Cornell College and then acquired a Masters Degree in Finance in 1982. His interest in stocks started during his college years where it’s said that he invested $12000 in stocks, which grew up to $250,000 after only a few months. Despite the huge achievements, Bill is said to have lost all his money to stocks but later shifted to Forex Trading, which was more stable. Bill is now a famous trader in the financial sector and is estimated to have made $300 million in a year by trading in the Forex market. George Soros The graduate from London School of Economics shocked the world when he made $1 billion in one day. When he gained $10 billion dollars, he was nicknamed as “the man who broke the bank of England.” George is a renowned author of investing books and is also a philanthropist. He is also said to have donated about 8 billion dollars in charity. John R.Taylor, Jr. John enhanced his trading skills at the Chemical Bank where he was working as a political analyst. He, then, became a Forex analyst for the bank after one year. This gave him the opportunity to build a strong foundation in the Forex Trade field. Today, the Princeton University graduate is the owner of a currency managing firm, FX concepts, and is also recognized for inventing computer-aided Forex Trading systems. Stanley Drunken miller After graduating from Bowdoin College, Stanley, he worked as an oil analyst for the Pittsburg National Bank. He, then, left his job at the bank and created the firm namely Duquesne Capital Management. It was at this time that he started working for George Soros, a successful Forex Trader, where he learned his trading skills. During his time with George, he is said to have earned both himself and Soros over $1 billion. He, then, returned to Duquesne in 2000 and is working there till today. He also owns a non-profit organization which is dedicated to educate people. Andrew Krieger Andrew became famous in 1987 when he sold the New Zealand currency between the value of $600 million to $1 billion. The value exceeded the money supply circulation in New Zealand at that time. Andrew earned $300 in revenue from the single transaction. In 1988, he worked for the Soros Management Fund and later moved to Northbridge Capital Management. He is also a philanthropist and is said to have made $350,000 donation for the tsunami victims in 2004. http://www.commexfx.com/the-top-5-most-successful-forex-traders/ Quote Link to comment Share on other sites More sharing options...
bhinder1713006680 Posted March 31, 2015 Author Report Share Posted March 31, 2015 Tips on How to Develop a Profitable Forex Trading Mindset Trading in the Forex market largely depends on your mindset. Your success or failure in the trade highly depends on your mindset. This means that if you do not have the right mindset, you will not be successful in making profits no matter how good your strategies are. The truth is that most traders often ignore this fact, or are simply unaware of how important it is for them to succeed in the Forex market. If you are not sure how to go about it, here are few tips that might help you develop a profitable Forex trading mindset. Have Realistic Expectations We all know the risks involved in Forex Trading. Sometimes, the business is so good that you might end up thinking that things are always the same. That’s the biggest mistake that a trader can make. Setting high expectations when you are just starting out will only discourage you especially after incurring severe losses. You need to accept that you might lose the money in your trading account and thus, you have to be prepared for it. Be Organized and Have a Clear Plan Successful traders always have a plan. With a trading plan, you can plan out the things you intend to do and what you should be looking out in the next trade. You also need to have a trade journal where you can record all your trades and use them to see your progress. The journals should also contain your long-term and short-term goals and how you plan to achieve them. Be Patient Most people get into Forex Trading with the aim of making quick cash. What they fail to realize is that quick money comes and go easily. It’s better to start doing your trade in the small daily charts instead of investing huge sums expecting to grow rich in one transaction. It’s better to wait for some time to place an order only when the price set ups are worth taking the risk. Also, remember that with trading, it’s all about winning or losing. You have to be prepared for anything. Be Accurate in your Selection Your experience in trading helps you discover what’s effective in making profits and staying away from what does not work. You need to be extremely choosy during your selection. Select only those strategies that are beneficial and valuable for your trading. Always Be Prepared to Learn New Things The best way to get a better understanding of the trade is by training yourself on a regular basis. Learn about the basic rules that are most effective in trading. Look for a “trade mentor” to help you get a clear understanding of the trade as well as motivating and rectifying you when mistakes are made. With that, you will be able to make wiser decisions while trading. Familiarize Yourself With the Market Trends In Forex Trading, the markets change every now and then. Most beginners find it hard to cope with the trend but the big secret is to know when to trade. First, you must learn the market properly and know how it works before venturing into the actual trading. You must learn and practice how to trade, how to place your orders and what to do when losses are incurred. This way, you will be able to develop a successful Forex trading mindset. http://www.commexfx.com/tips-on-how-to-develop-a-profitable-forex-trading-mindset/ Quote Link to comment Share on other sites More sharing options...
bhinder1713006680 Posted April 2, 2015 Author Report Share Posted April 2, 2015 Ways to Emotional Stability for Forex Traders Forex Trading can cause severe emotional instability problems especially when a trader loses his money. The first reaction when losses are incurred is anger and frustration which can, sometimes, make the trader become aggressive and violent. A Forex Trader must learn how to handle his emotions during such occasions in order to be successful in his ventures. The only way he can do this is to use his emotions in a positive way and as a source of inspiration to make crucial improvements. Below is a list of some of the most effective ways to maintain discipline in trading. Exercise Apart from helping you keep fit and healthy, exercise plays a crucial role in relaxing your body and mind, relieving stress as well as keeping your brain healthy. Exercise helps clear the mind and increases your ability to perform well even under intense pressure. It also helps in keeping your emotions stable at all times. Always Be Happy Spending a whole day frowning because you lost in your trades will only reduce your chances of winning in the next trade. This is because frowning will destabilize your mind in such a way that it will be much harder for you to make wise decisions while trading. You always need to smile and laugh because you will not only set a positive mindset but at the same time, you will be able to make successful trades. Meditation There are a million reasons why you should start meditating. Meditation has, over the years, proven its ability to improve a person’s overall well-being. One of the main reasons is that it helps reduce stress and anxiety attacks. This is especially common with Forextraders who spend their days waiting for the unexpected to happen during trading. Meditation is also known to increase serotonin production which is a hormone that improves mood and behavior. It also heals the body and mind, makes you become more focused, increases wisdom and gives you perspective and finally, it helps you beat the blues. Set Your Goals Right Nothing gives you more satisfaction than having clear set plans for the future. It gives you joy to know that, at the end, you will still achieve something, no matter how hard things become. Take Care of Your Body As a trader, you are always too busy to even take good care of your body. A healthy body and mind is more likely to have a positive mindset than an unhealthy one. Always take a balanced diet to provide your body with proper nutrients, exercise regularly to relax the body and mind and also, get quality sleep each day. Sleep helps the body relax and provides a great relief. It also helps stabilize our hormones which are the main causes of emotional instability. Take Deep Breathes Taking deep breathes offers some amazing benefits to the body. As a trader, sometimes, it’s hard to come to terms with huge losses. The next time you feel angry, resentful or anxious due to your loss, pay special attention to your breathing. The fact is, when negative emotions run high, your breaths become shorter and shallow. Take a couple of deep breaths everyday so as to stabilize your emotions. Find Solace in Music The right kind of music can help relax your mind and body, reduce chronic stress, and affect your emotions in a positive way. Offer a Helping Hand to Others Helping others brings back so much more in return. It makes you feel happy and less stressed knowing that you changed someone’s life in one way or the other. Celebrate Your Achievements As a trader, it’s easy to get carried away by emotions after earning huge profits from your trades. Most people crave for more and end up even stocking more money into their trading accounts in attempt to earn more. It’s always good to sit back and relax while enjoying the fruits of your labor. http://www.commexfx.com/ways-to-emotional-stability-for-forex-traders/ Quote Link to comment Share on other sites More sharing options...
bhinder1713006680 Posted April 6, 2015 Author Report Share Posted April 6, 2015 The Top 5 Most Successful Forex Traders Forex Trading requires discipline, hard work, as well as, determination in order to be a successful trader. Most people have tried their hand on the trade, but have ended up with huge losses. The truth is, there are risks involved in forex trading but the real gurus know what it takes to be a winner. If you are a newbie in Forex Trading, you need to follow certain strategies in order to be successful. To be successful in this field, you need to learn from other professionals who have made immense success in trading. There are various people around the world who are recognized for their expertise in this field and are included in some of the most successful traders in the world. Below is a list of some of the renowned forex traders who have made it through the good and bad times to be successful. Bill Lipschutz Bill Lipschutz was a brilliant student who had excellent mathematical skills. The New York born trader received his Bachelor degree in Fine Arts from Cornell College and then acquired a Masters Degree in Finance in 1982. His interest in stocks started during his college years where it’s said that he invested $12000 in stocks, which grew up to $250,000 after only a few months. Despite the huge achievements, Bill is said to have lost all his money to stocks but later shifted to Forex Trading, which was more stable. Bill is now a famous trader in the financial sector and is estimated to have made $300 million in a year by trading in the Forex market. George Soros The graduate from London School of Economics shocked the world when he made $1 billion in one day. When he gained $10 billion dollars, he was nicknamed as “the man who broke the bank of England.” George is a renowned author of investing books and is also a philanthropist. He is also said to have donated about 8 billion dollars in charity. John R.Taylor, Jr. John enhanced his trading skills at the Chemical Bank where he was working as a political analyst. He, then, became a Forex analyst for the bank after one year. This gave him the opportunity to build a strong foundation in the Forex Trade field. Today, the Princeton University graduate is the owner of a currency managing firm, FX concepts, and is also recognized for inventing computer-aided Forex Trading systems. Stanley Drunken miller After graduating from Bowdoin College, Stanley, he worked as an oil analyst for the Pittsburg National Bank. He, then, left his job at the bank and created the firm namely Duquesne Capital Management. It was at this time that he started working for George Soros, a successful Forex Trader, where he learned his trading skills. During his time with George, he is said to have earned both himself and Soros over $1 billion. He, then, returned to Duquesne in 2000 and is working there till today. He also owns a non-profit organization which is dedicated to educate people. Andrew Krieger Andrew became famous in 1987 when he sold the New Zealand currency between the value of $600 million to $1 billion. The value exceeded the money supply circulation in New Zealand at that time. Andrew earned $300 in revenue from the single transaction. In 1988, he worked for the Soros Management Fund and later moved to Northbridge Capital Management. He is also a philanthropist and is said to have made $350,000 donation for the tsunami victims in 2004. http://www.commexfx.com/the-top-5-most-successful-forex-traders/ Quote Link to comment Share on other sites More sharing options...
bhinder1713006680 Posted April 8, 2015 Author Report Share Posted April 8, 2015 Benefits of Forex trading Forex is an acronym for Foreign Exchange Markets. Forex is further denoted by the symbol FX a well known term among investors, bankers and stock brokers across the world. The Foreign Exchange Market or currency market is a global, decentralized market for trading of currencies. Major international banks are the core participants in the FX market. Financial centers around the world provide a convenient platform for trading in currencies among multiple buyers and sellers round the clock with the exception of weekends. And the FX market operates on several levels. Let us briefly look at some unique advantages of FX trading. 24 hour market As already mentioned in the introductory paragraph the FX trading operates on a 247 basis with the exception of weekends. Trading across the world starts when the markets open in Australia on Sunday evening and closes when markets end at New York Stock Exchange on Friday evening. High Liquidity Liquidity is when you can easily convert an asset into cash with minimum price fluctuations. In FX market one can easily effect transactions by moving huge lots of foreign currencies in and out of the market with least price fluctuations. Low transaction cost As per FX terminology the cost for a transaction is added with the price i.e. Buying price of the currency itself. This in other words is called a spread. Spread is the difference between the buying price and the selling price. Leverage The leveraging factor is nothing but the ability to trade more money in the market than what is actually available on the traders’ account. Forex brokers allow traders to make profits on the leveraging factor. If you are allowed to trade on a leverage factor of 50:1 ratio it means you can trade for $50 with $1 capital available on your account. You can control a trade volume of $50,000 with just $1000 worth of capital. You need to open a Forex trading account online to be able to buy and sell foreign currencies. For every FX currency you buy, your account will be credited with the aforesaid amount. For every FX transaction you effect in terms of selling the corresponding currency will be debited from your online Forex Account. The profits you incur of the same will be wired directly into your account through Paypal. Profit potential from rising and falling markets You can trade freely in the market as far as your potential goes. If you feel a currency price will go up, you can buy it, in other words, go long. Increased currency price indicates you can sell it at the much increased price. You can compensate for huge profits by trading on volumes. On the other hand, if you feel the currency value is going to drop, you can sell it or go short. Seasoned stock traders can make huge amount of profits and even become overnight millionaires. On the other hand, if you crave for huge amount of profits and start trading without following the tricks of the trade you can also end up losing a lot of money. Thus, you should exercise caution while you are operating in the Forex market or stock market. http://www.commexfx.com/benefits-of-forex-trading/ Quote Link to comment Share on other sites More sharing options...
bhinder1713006680 Posted April 9, 2015 Author Report Share Posted April 9, 2015 How To Achieve Your Forex Trading Goals? Every trader wishes to make profits by trading. It is hard to attain long term goals as only the minorities attain that milestone. Your trading actions must be well planned in order to achieve that level of success in trading. There are various ways of achieving long term goals: 1. Decide on the trading objective Interrogate yourself and ask whether you aspire to be a full time trader or not. It is important to ask oneself whether one wants the trading actions to be continued from home or somewhere else. The trader must be clear with his own intentions and objectives. 2. Dividing the goals into bite-sized chunks Long term goal must be divided into fragments. This step will help in the accomplishment of the goal realistic. There must be a mini goal for each month set aside. Psychologically, it is easier to attain mini milestones and not the gigantic ones. If the mini goals are captured this will charge you up with optimism which will act as a fuel in the long run. Risking more is not the way to enhance your trading profits. Small profits must be earned consistently to boost up the level of confidence. Do not pounce on your goal at once, rather take one step at a time. Master the steps of trading, then aspire to be a professional trader. Achieve the mini goals and just them up to reach at the long term goal. Various guidelines must be followed while devising the mini goals: Structure of the mini goals • Go for just six trades per month as this will cultivate discipline and keep oneself away from the temptation of over trading. • Be consistent with your losing amounts. Do not increase the trading amount when you are a starter. Master the art and trading strategies, by heart the price action plan, trading journal only then go for bigger trading amounts. • The amount of risk to be borne at each trade should be bearable. • Monitor whether the risk reward ratio of 1:2 is achieved or not. • The setup for price action should meet the various guidelines in the trading plan. • Make use of daily affirmations in order to improve trading 3. Accomplish your goals by being a bit more thoughtful Break your goals into small chunks so that it appears achievable and not impossible. Trading is something like operating the hedge fund where you are a manager. Follow the method of trading, your trading routine and do not always fix yourself on vague unachievable goals. Risking the monetary figure which you cannot afford can be harmful for your trading career. Do not frame up a complicated trading mindset. Do not trade like a beast, but trade like a rational trader. Trade logically and methodically if you wish to attain your goals. Follow your trading routine to make a substantial amount of money at the end of the year. Set realistically achievable mini goals. Do away with your bad trading habits by giving the least importance to the instincts. http://www.commexfx.com/how-to-achieve-your-forex-trading-goals/ Quote Link to comment Share on other sites More sharing options...
bhinder1713006680 Posted April 20, 2015 Author Report Share Posted April 20, 2015 Are Zombie Banks Real Liquidity Providers A zombie bank is a stark and foreboding feature of the modern economy. The term zombie bank is essentially used to refer to a financial institution that possesses an economic net worth that is less than zero, which essentially means that this financial institution is in debt. Technically speaking, a financial institution that does not have any more money, that is, in fact, in debt itself should cease to be called a financial institution, as it does not possess any money that it can provide to other people, nor can it be trusted with anyone’s money as this money could very well be used to pay off debts. However, the thing about zombie banks is that, even though they are in debt, they are continued to be called financial institutions. They are able to continue functioning in this capacity because their debts are being paid off through credit provided by the government. Whether this credit is being intentionally provided for this purpose varies, but the result is the same: a financial institution that is being its debt off by collecting more debt from a slightly less strict debt collector in order to continue providing financial services to unknowing patrons. Liquidity is a term used to describe a markets ability to sell an asset quickly without having to reduce its price. This usually occurs due to the fact that the asset in question is in particularly high demand, and will be sold off quickly regardless of the markets requirements. Gold, for example, is an asset that is virtually always in high demand. Hence, the gold market has a high market liquidity. One asset with the absolute highest market liquidity is cash. Cash can be used immediately to purchase virtually anything and the speed with which it is used has no affect on its value. One does not need to wait for someone that is willing accept cash, because cash is the basic medium of financial transactions throughout the world. The liquidation of an asset is essentially the exchanging of an asset with low market liquidity for an asset with high market liquidity. The asset with high market liquidity is often provided in a larger amount, proportional to the availability of that asset, than the asset with lower market liquidity. The most common form of liquidation is the exchange of any asset for cash, an act which is referred to as selling. Zombie banks provide liquidity, it can be argued. If gold is provided to a zombie bank, cash is provided in exchange. However, this cash, this asset that is being provided by this zombie bank, is not an asset that the zombie bank possessed in the first place. Hence, the asset provided will likely be government money intended for an entirely different purpose. As a result, zombie banks certainly do not provided any real form of liquidity for assets due to the fact that they don’t possess the most liquid asset of all: money. http://www.commexfx.com/are-zombie-banks-real-liquidity-providers/ Quote Link to comment Share on other sites More sharing options...
bhinder1713006680 Posted April 21, 2015 Author Report Share Posted April 21, 2015 China and Russia’s New Credit Card Payments and their Impact on the Foreign Exchange Market There has been significant tension in the east of Europe, and much of this tension has been caused by Russian encroachment into Crimea and Ukraine. As a result, American companies that had become a mainstay of a flagging Russian economy began to freeze Russian accounts. The supremacy and dominance of America in the world of international economics allowed it to coerce Russia into withdrawing from Ukraine through the leveraging of accounts held by Russians with American companies MasterCard and Visa. Following Russia’s involvement in crimes committed against Crimea, account holders at Russian banks who were using credit card services offered by MasterCard and Visa found their lines of credit frozen. However, Russia had already made moves this year that seemed like an attempt to end the American dollar’s supremacy in the foreign exchange market by selling of dollar assets and purchasing gold assets instead. A similar move was made by China last year. These attempts at destabilizing the dollar made by the two dominant superpowers after America seem to indicate a similarity in strategy that is shared between the two nations. It is fitting, then, that China and Russia have begun to work together to try to topple the American economic behemoth. China had launched a credit card of its own called Union Pay, and this credit card is quickly gaining vogue in the Russian economy. Major Russian businessmen have already begun favoring the use of Union Pay credit cards, especially after the accounts freezing performed by MasterCard and Visa. Union Pay is now the most widely used credit card in the world, mostly due to the fact that China’s enormous population almost solely uses this credit card rather than MasterCard or Visa. UnionPay now spreading to Russia, a similarly formidable economic entity, has lead to the rise of the Chinese Yuan as a strong contender for the world’s major currency. There are simply so many people in China, and as a result so many businesses and so much money being spent, that transactions in Yuan are slowly outstripping transactions in dollars. As a result, the dollar has seen its popularity starting to wane in favor of other currencies. The dollar has become a lot more unstable in recent years, and a lot of this instability can be attributed to the confrontational political moves performed by the American government. The sanctioning of Iran and Russia, as well as an arguably unsuccessful economic war with China, has had America fighting on three fronts, and the strain is starting to show. The use of UnionPay credit cards in Russia has also resulted in a bolstering of the Ruble. The lack of need to rely on dollar investments in order to stabilize the country has allowed the Ruble to stand on its two feet, something that is clearly indicated in the high amount of dollar to Ruble conversions in recent months. http://www.commexfx.com/china-and-russias-new-credit-card-payments-and-their-impact-on-the-foreign-exchange-market/ Quote Link to comment Share on other sites More sharing options...
bhinder1713006680 Posted April 24, 2015 Author Report Share Posted April 24, 2015 Russia’s Gold Buying Spree and its Effect on the US Dollar There is a sense of might that is often associated with Russia, a sense of rootedness, of ancient presence. This is due to the fact that Russia was, for a long time, one of the largest and most powerful empires in the world. However, as of late, this stereotype of Russian might and firmness has begun to slip. This is due to the fact that it lost, quite decisively, during the middle of the 20th century to its only major cultural competitor: The United States of America. In the 21st century, America, thanks to its success in wars and its victory in the space race, has become the world’s major cultural exporter. Much has come of this development, not the least being the rise of the US dollar as the world’s major currency. Conversely, Russia, after the fall of the Soviet Union, has seen a steady decline in its currency. The Ruble was once a major contender in the world of foreign exchange, but these days it doesn’t seem to hold much weight. Russia has attempted to bolster its currency by purchasing dollar assets, however, a recent move by Russia seems to indicate an end to this trend. Russia, seemingly inspired by a similar move performed by China recently, has begun selling of dollar assets and inflating its gold reserves. The gold buying reached an amount equivalent to over six billion dollars, the largest purchase made by the Russian government since the dissolving of the Soviet Union. This seems to be an attempt on Russia’s part to destabilize the American dollar, thereby ending its reign of supremacy and creating a vacuum that Russia can attempt to fill using its Ruble. The selling of dollar assets in favor of gold assets seems to be becoming an increasingly common trend among America’s economic competitors. Russia’s purchase was so large that it accounted for a third of the world’s total spending on gold. The resulting impact on the American dollar has been, predictably, not too healthy for the currency. A marked decline in the value of the dollar was noticeable almost immediately after Russia finished purchasing the gold. Conversely, the price of gold seemed to rise, further inflating the value of Russia’s gold reserves. The sudden influx of dollar sold by Russia into the foreign exchange market has resulted in economic shockwaves spreading out throughout several countries. These countries, particularly powerful Middle Eastern countries such as Jordan, Saudi Arabia, the UAE and Qatar, all possess currencies that are pegged to the US dollar. The marked decline in the value of these currencies due to the faith these countries have placed in the dollar might result in them shifting to a more stable currency, perhaps the Chinese Yuan or maybe even the Russian Ruble. With the rise of the Indian Rupee as a strong currency as well as the stability enjoyed by the Eurozone and British Pound, the dollar’s decline looks to be inevitable. http://www.commexfx.com/russias-gold-buying-spree-and-its-effect-on-the-us-dollar/ Quote Link to comment Share on other sites More sharing options...
bhinder1713006680 Posted April 27, 2015 Author Report Share Posted April 27, 2015 Factors Causing Foreign Exchange Volume Growth The foreign exchange market is now considered the absolute largest market in the world. The market’s enormous success is due to the fact that the sole asset it deals in is, without a doubt, the only asset in the world that possesses absolute market liquidity: money. The foreign exchange market deals basically in the trading of currency, which in essence means buying one currency by exchanging it for another. The value of currencies in relation to each other is in a constant state of flux, which allows people to make a profit by purchasing a currency during a period of stability and then selling it off if the value of the currency spikes. The most stable currency is often considered to be the dollar. This is due to the fact that the American dollar has a reputation for solidity and stability. However, this once universally well regarded currency seems to be going through a downward spiral. This is due to several factors that have resulted in the depreciation of the American dollar, following a sudden foreign exchange volume growth of currencies being exchanged in the market. In recent times, America has made certain economic and political moves that many countries considered to be hostile. Additionally, America’s political maneuvering has backfired in certain countries where it was trying to gain political leverage. A very poignant example of this is America’s involvement in the lifting of sanctions against Iran. America’s under the table economic war against Iran has always been related to nuclear weapons. The United States used its powerful economy and its status as the world’s major cultural exporter to leverage Iran’s abolition of its nascent nuclear program. The economic sanctions imposed by America and the other four permanent members of the UN security council, these nations being the UK, France, Russia and China, as well as Germany, resulted in an intense downward spiral of the Iranian economy, which in turn resulted in massive depreciation of the Iranian currency, the Rial. This resulted in the appearance of a unique trend among Iranians. They would change the Rials they possessed into dollars in order to preserve the value of the money they had earned. However, recently the economic sanctions placed upon Iran were lifted after Iran agreed to abolish its nuclear program. This resulted in the appearance of a steady increase in the value of the Rial, causing people who had invested in the American dollar to convert their money back into Iranian Rials. This resulted in a flurry of activity in the Foreign Exchange Market, as the sudden overflow of dollars into the market began to undermine the value of the dollar. Additionally, there are several middle eastern countries with powerful currencies that were pegged to the dollar. However, this sudden depreciation of the dollar ended up creating a financial climate that forced people investing using these currencies to shift to different currencies, further increasing the volume of foreign exchange being conducted. http://www.commexfx.com/factors-causing-foreign-exchange-volume-growth/ Quote Link to comment Share on other sites More sharing options...
bhinder1713006680 Posted May 6, 2015 Author Report Share Posted May 6, 2015 Technical versus Fundamental Analysis The rule followed by all investors in all markets throughout the world is that they are looking to earn money. However, if one were to closely examine the dynamics of the foreign exchange market or the stock market, they would be able to ascertain that the nature of the investments being made in these markets, the nature of the money being placed where and for what, is similar to an activity that is well known for either providing heavy losses or enormous profits, an activity called gambling. However, businessmen that gamble for too long often find that their luck has run out, and this loss of luck ends up leaving them on the streets after they lose everything. This is due to the fact that gambling is an extremely high risk endeavor, and is at least partly based on luck. The high risk nature of this endeavor can result in profit if the luck of the gambler is good, but the balance of probability states that, eventually, in one gamble or the other, the gamblers luck will run out, and when the gamblers luck runs out, he finds that he has lost everything that he had previously earned. Hence, the smart businessman does not gamble often, and certainly never with all that he owns. Businessmen that get rich and stay rich tend to take a more analytical approach to their investments, especially when these investments are applied in markets as volatile as the stock or foreign exchange market. In order to minimize risk, businessmen tend to use analysis techniques so that they may gather information that would end up helping them in making investments that would be profitable. There are two main analysis techniques that are implemented by traders. The first analysis technique is called technical analysis. Technical analysis involves the studying of past trends in order to ascertain precedents. If the market that one is trading in looks like it is following a trend previously seen in the markets, the trader can act based on this trend. If there is precedent, technical analysis usually provides a sound prediction of how the market will behave in the near future, and the use of this analysis technique can go a long way towards helping investors and traders make sound financial investments in the markets. The second analysis technique is called fundamental analysis. Fundamental analysis involves the studying of the business’s own statements and financial dealings in order to ascertain the amount of assets, liabilities and earnings, as well as the statements and financial dealings of competitors to do the same along with an in depth analysis of the markets current status. The collection of all this information can give a trader an idea of what businesses may be making a profit in the near future, and knowledge regarding future profitability of businesses can allow the trader or investor to make a sound investment or purchase based on this new found knowledge and earn a profit. http://www.commexfx.com/technical-versus-fundamental-analysis/ Quote Link to comment Share on other sites More sharing options...
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