The Australian dollar has witnessed a recent fall in trade with no significant data release scheduled in Asia, says Barry Sendach. The AUD & USD traded down 0.15% at 0.8755.
The U.S. dollar traded considerably lower against foremost global currencies after investors summarized weekly jobless claims data, and resolved the numbers portraying a labor market that is still in need of financial support to some degree.
Weekly initial jobless claims rose in line with expectations, reports the U.S. Labor Department. The number of ongoing jobless claims stayed put above the 3 million mark for a second consecutive week, they said.
Barry Sendach is also of the opinion that fed bond purchases soften the dollar for as long as they continue to linger by holding back long-term interest rates to incite recovery, sending investors to advantage classes such as stocks and commodities in the process.
The U.S. manufacturing PMI turned down to 53.7 this month compared to a final reading of 55.0 in December last year, although analysts were looking forward to a steady index.
The National Association of Realtors submitted a report that the U.S. existing home sales at 4.87 million units from 4.82 million in November, ’13; in contrary to the expected increase of 4.94 million.
First, it may be necessary to explain what forex trading is. Forex trading also known as currency trading, FX trading, Foreign Exchange trading and forex currency trading refers to the largest financial investment in the world. It is the simultaneous buying of one particular currency and simultaneous selling of another particular currency. If an investor believes that the Euro currency would weaken versus the US Dollar, they would sell EUR/USD. In forex trading the strongest currency is listed first in the pair, out of four top currencies the European Currency (EUR), US Dollar (USD),the Australian Dollar (AUD) and the British Pound (GBP).
According to Forex marketing expert, Barry Sendach, there are three reasons behind extensive popularity. Those are listed below.
The first reason for its popularity is the ease and accuracy of trading according to convenience of traders. It follows the sun around the world which enables investors to trade 24 hours a day from the comfort of their laptop. Most of the platforms offer free real time quotes, charts and news to facilitate trading efficiency.
The second reason behind popularity of forex trading is the inexpensive trading costs. Many companies do not charge any commissions and are compensated by the pip spread. Moreover, there is no restriction on amount, as the person can invest small amount or large amount as per the convenience.
The third reason why forex trading is so popular is because Forex market itself plays a part. The volatility of the forex market is another advantage that allows new traders to offset their other trading activity. The dynamic movement in the price of the currency enables a well-informed trader to reap a sizable profit from a single investment in short interval. In fact a trader can enter and exit a position in less than a day of trading to realize these profits.
The volatility, flexibility and inexpensive nature make it so popular among newbie’s. If you want surefire success, only experts like Barry Sendach can assure you, due to his wealth of experience and knowledge.
It will be a guided misconception if I would say; the Forex market is a place to invest safely and without losses. There are days which fall into your fortune but not all days are like that. The volatile nature and dynamicity of market sums it up that nothing can be predicted with 100% surety. So, the key is to play safe going with the trends and not believing the virtue of your instincts for making quick profits. So, filtering the odds and taking ace advices from the pros with the likes of Barry Sendach in Forex market is a wise choice.
Learning from the losses
- Never keep the glass full of water in hand, place that down: It’s a generic thought and must have been inherited from common mistakes of trading. One should never stuck to the loss, rather make a quick note of what went wrong and move on to the next deal to make it big. Dealing business with emotions is the first mistake most traders do.
- Patience and Responsibility: Take the responsibility for every of your decision surmising to a loss. This will keep your self-confidence intact which will automatically be seen in next investments. Being the steady and curbing the gut feels will reduces the risk.
Capitalizing on the Profits
- Never deny a voice of expert: They have seen the toughest patches of Forex. They will never let you take a decision based on predictions. Trading elites like Barry Sendach have seen trends of fluctuating graphs and every piece of information given by them is vital for any type of trade.
- Tap your back for every milestone: Positivity is the key of a smooth running trade. Celebrate every small to big profit you made. Boosting your confidence is equally important to boost your profits.
- Never sell or buy than your opponents: The competition of you will actually make things easy for you. Look your competition as the graph and goals you have to achieve beyond. This helps in citing the goals. Sneaking in the shoes of your rivals for what they’re up to is must, if you want consistent trade growth every year.
Last year, when Eurozone was under threat of rising inflation, due to geo-political issues and the isolation from community countries. Most of the Forex investors in Europe had to digest a consistent loss overtime, why? The answer is simple, Inflation affects the currency rates directly. More is the inflation, lesser will be its currency value(purchasing power) and vice versa and so does to Forex, which is an economical measure for currencies exchange. The country has to import more and export less leading to financial crisis.
I am referring this because it’s not only the nation’s organization which will suffer losses, but every small or big investor like us. So, to avoid getting under the burden of debt, banks give higher interest rates. But what will every common investor or broker do. In order to decide the plan action. Let’s grasp an idea from Barry Sendach about the causes of inflation:
Demand-pull : Suppose, in an economy, price of a certain commodity rises due to more demand than supply. This is a usual behavior of growing economies and so the risk factor is normally monitored by forex investors.
Cost-pull: When you have to pay more for your business, you have to compensate that by increasing profit margins for every good you sell, which leads to price increase.
These factors can be tackled as they never exceed from the expected analysis in accord to a strong economic growth. But, what if the factors are not controlled by you but by the nation you are trading with.
For instance OIL, there are so many other end products whose sales and prices depends on the availability of crude oil. Infact in 2008, when USD price for a barrel touched 150$, purchasing power of most of the European and west nation currencies got reduced. This is known as hyperinflation and is a rare case in global economy.
That’s why, depicting global trends and trading in global market is considered precious to get an idea how and when the inflation factor will have considerable effect. There are 2 roles, inflation play into a national economy:
1) The bullish nature of inflation in a strong economic environment will give you good profits, More money involved, means more profits. .
2) If the economic growth isn’t stable, the inflation will hurt the investors and so the nation’s economy and currency power will drop, which ultimately affect FOREX.
Keeping these factors and trends in mind, you may need guidance from a novice broker or investor to keep up with dynamics of market as rhythmic automation tools are not a trustable asset in this fluctuating FOREX trend. Good brokers like Barry Sendach can give you certain tips & tricks to find the right timings and amount to put in your investment. Keep yourself updated, invest wisely!!
In Forex Market, people use millions of trading terms and it’s hard to remember all of them. To help you out in memorizing all commonly used terms in the Forex Market, Barry Sendach is describing some of the terms starting from alphabet ‘B’ –
- Broker – An intermediator who brings the sellers and buyers together for trade. Barry Sendach is a broker, who suggests people for profitable deals.
- Back Office – Branch of financial organization that confirms and regulates transactions, accounting, settlements, regulatory, clearances, record maintenance and compliance.
- Balance – Net value of account
- Balance of payments – Record of all transactions made by one particular industry. The compares the transactions & include foreign investments, balance in trade, foreign investments.
- Banks for international settlements (BIS) – An international organization encouraging the corporation of central banks and other financial institutions internationally. BIS is located in Basel to monitor and collect data regarding banking activities.
- Base Currency – Currency taken as the primary currency & is used by trader to maintain his account. Normally, dollar is considered as the base currency.
- Basis – The difference between future and cash price
- Basis Points – 1% of change in total yield equals 100 basis points. Alternatively, 0.01% change equals to 1 basis point.
- Bull – Actions of a trader expecting market prices to hike.
- Bear – Trader’s actions when he thinks the market will decline soon.
- Bundesbank – Central Bank of Germany
- Bid – The price an investor is willing to pay.
- Big figure – First number left to decimal point in exchange rate quote that changes and omit them in quotes.
- Bonds – Debt tools used to increase capital issues for a period more than a year. There are numerous types of bonds, bills and notes, corporate bonds, municipal bonds.
- Book – It is a type of record maintained by trader or desk for positions.
- Bretton Woods Accord (1944) – This accord established a legal and fixed exchange rate regime, which requires central bank to interfere to maintain stability in exchange rates.
- Buy a Bounce – A recommendation to stay in market for long.
- Buy Break – Recommendation to buy currency pair, if it is going to break to some specified level.
- Buy Stops above – Recommendation to step in the market at time when exchange rate breaks. Traders place the stop entry notice by assuming that the market rate breakage will continue in same direction for long.
Keep all the above-mentioned terms starting with alphabet ‘B’, whose meaning is elaborated by Barry Sendach, A Forex Market Expert.
Do you want to know, why most of the traders lose money in Forex Market? It’s simple to answer this question – many of you will mention lack of appropriate knowledge or lack of wise advice as the reason. But, if both of them are not applicable on a trader and still he is continuously loosing, then what would be your answer to the same question. You might be thinking, is the market so mysterious that few of the traders are only able to gain profits. The fact is, markets are not mysterious, these are the mistakes been committed by traders, which are repeatedly leading them towards failures.
The market can’t be set or framed according to traders to make their plans and strategies successfuly. The traders will have to learn from their mistakes and improve their trading strategies according to market. This would only lead them towards success. It is emotionally as well as psychologically challenging to deal with this issue but effective risk management techniques suggested by Barry Sendach can help them deal with them –
1. Take minimal risks to make maximum profits – make at least 1:2 risk to profit ratio. – This strategy would help anyone to earn more than they have ever expected. For this, you need solid plans that require minimum investment and offer maximum profits in return. Traders need to study and analyze currency fluctuation pattern thoroughly before investing. This would help them to gain more on minimum investment. As the wise men say, profit is not a profit until investment doubles its amount.
2. Take risk on a small part of your assets – take risk less than 5% of your account over all open trade. – Never ever try to invest all that money you have. No matter how much experience you are having, always keep a backup that you can use if you fail. Invest unsurely by imagining that you are not getting your money back. Professionals like Barry Sendach always suggest people with methods that allows wise management of assets and save traders from facing financial crisis.
So, consider the above-mentioned points, plan your investment in Forex Market accordingly, and enjoy profitable trade.
Interest rate is one of the most influencing factors in Forex Market according to Forex market expert, Barry Sendach. The Interest rates are been decided and regulated by the Central Bank of particular nation. The countries keep on changing the interest rates in order to encourage people to invest in their currency. In order to adjust the rates in their efforts to encourage the trade, investment and control over the price inflation. The lower interest rates use to encourage the economic expansion, as credit cost becomes cheaper. Higher interest rates delay the economic expansion as the charge on credits is reduced to certain amount.
The frequent changes in the interest rates greatly influence the currency value by attracting the traders and the investors. Lowered interest rates on currency implies that the yields are denominated by the dollar as the dollar denominated assets are less. This clearly gives less incentive or profit to traders on investment. The rate is not the only thing that influences the traders and investor’s involvement. The decisions taken by the FOMC are also important. The interest rate that is been regulated by the FOMC, is been taken as standard and the investors and traders take further decisions on its base.
Explaining the characteristic of Central Banks, Barry Sendach is highlighting the importance of interest rates that are been regulated –
- Setting overnight lending rates in order to change the interest rate paid on currency
- Buy and sell the government securities to increase or decrease the supply of currency between traders and investors.
- Purchase and sale of domestic currencies in open Forex Exchange to affect the exchange rates.
- The central banks regulate certain economic goals before changing the interest rates on currency
- Access the capital reserves to maintain and control interest rates for local currency
All the above-mentioned characteristics of Central Banks of different countries are been analyzed by experts like Barry Sendach to suggest people of right time to invest.
One of the best and efficient marketing strategies is to analyze the currency thoroughly. This is a full proof method to analyze all the market movements to predict future currency fluctuations. There are many ways to analyze the market variations, but according to Forex marketing expert Barry Sendach, two best methods to analyze the currency are – Technical analysis and Fundamental analysis.
The Technical analysis – This completely depends upon the price of currency in order to identify trends and measure the price volatility of a given currency. With this information, you will be able to detect the trending signals whenever you have to buy or sell your assets. You can check the charts, by gaining some chart reading skills. This type of technical analysis is much accurate as there is less error probability, only if analyzed by a professional.
Fundamental analysis – This type of analysis follows an entirely different approach. Instead of evaluating and analyzing the currency pairs, fundamental analysis is required to look at external factors including unemployment rate of a specific nation and the stability of the currency due to politics in that country. Politics strongly affects the currency value and experts like Barry Sendach know the methods to analyze Forex marketing Trends through fundamental analysis.
Whichever method you follow to analyze the current fluctuations in Forex Market, make sure you consult a professional if you have any doubt in your analysis report.
Political conditions of any of the nation directly influence all markets including the Forex Market. Marketing experts like Barry Sendach analyze the nation’s political situations to judge the market fluctuations and they consider studying the changes in decisions that earlier and the new government is taking to improve and maintain the economic conditions of that country. National, international and regional political conditions along with related events strongly affect the currency market. In fact, the market fluctuations totally depend on political changes that the government make during their session. The profit of the nation increase the overall value of national and international currency assets and hence the Forex Market. The greater is the value of asset more will be the releasing of currency assets by investors and lower the value more will be the investments.
According to Barry Sendach, all exchange rates are completely vulnerable to political expectancy and the governmental instability about the ruling party. The political disturbance and instability will deliver a negative impact on national economy and the currency value will fall instantly to significantly lower number. Experts will let you know things in a better way. Take an example of Pakistan and Thailand. The political conditions are not much sound there. The currency values have negative values and no one consider investing on such currencies. Apart from this fact, political situations of some Arab countries and China shows a sudden hike in their currency values. Therefore, not anyone with average knowledge can predict the Forex market trends by analyzing the political conditions of any nation.
Economy policies and terms focus on management of national and international currency values, so it directly affects the Forex market. Economic policies and conditions both influence the market trends and hence experts like Barry Sendach focus on them to judge and foresee the currency values. They analyze the economic indicators and reports to predict them in right way, here are few points that can help you analyze the economic conditions. There are few economy indicators, focused by forex market experts –
The economic policies include the government fiscal policy or spending/budget practices and monetary policy that further help in getting information about the government central bank that directly affects the cost and supply of currency. The level of interest rate directly reflects the monetary policy.
The government budget surplus or deficits usually affect the market negatively when it is expanding and influence it positively when the budget is narrowing. The results highlights the currency value.
Balancing the trading trends and levels illustrates the trade flow between two particular nations regarding goods and services. These trends indicates the trade requirement of the country and it’s currency demand.
Inflation level and trend – High inflation levels reduce the currency value in the market as it degrades the purchasing power and the currency demands are highly reduced.
Economic health and growth – This includes the GDP reports, retail sales, employment level, utilization capacity etc. that explains the health and growth of nation’s economy.
Economic productivity – The increasing economic productivity influences currency value positively.
Barry Sendach suggest people to analyze the above mentioned economic factors neatly to predict the currency value fluctuations while investing or releasing your assets in Forex Market.