Monthly Archives: August 2014
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.