Monday, September 22, 2014

financial goals and your risk tolerance for investments

Know your financial goals and your risk tolerance for investments to pick a level of risk, return and appropriate term for your profile. Take your time and compare options to find the best fit. Never invest in products that do not understand. In case you do not understand, you can not know in the event that they are suitable for your profile.

Seek professional advice prior to making investment decisions, but keep in mind that the final responsibility is yours. Your adviser ought to not make decisions for you, advise.

 Destine investment over between your income and common expenses. Do not use money that you require. Always have a reserve equivalent to 3-6 months of expenses in comparatively liquid that may have emergency assets. Never invest in equities or money that may be needed in the short term.

 four Invest for the long term. Markets go up and down, but long term there is usually more ups than downs. Know stay the work and not be distracted by every day variations and procure profits.

Diversify, diversify, diversify. Do not take stock or sector. This temporal diversification protects against fluctuations in rates of interest, and ensures an income for longer.

Beware costs! Compare rates all right and costs of each entity. Much influence on the final return on investment. And this also applies to transactions of speculation.

Monday, September 15, 2014

Foreign exchange market


At the top level of the Foreign exchange market is situated what is named the interbank market, composed of the world's major banks,governments, etc. In the interbank market there is an exchange of buying and selling currencies between banks (unless absolutely necessary), but is a collection of knowledge from communication among the largest banks.

To understand this is example that was discussed in the forum Forex . Imagine an office with multiple PCs connected to each other forming a network. Each PC runs independently until a situation where a PC needs a resource located in another PC is not given; at this time the first PC will contact the second PC requesting access to the resource you need, get access only if the owner of the second PC has given authorization. Substituting the PC's resources by banks and foreign exchange can get an idea of the relationship between the participants in the interbank market.


Above each bank there is communication between the EBS network, a system that allows to know how much and at what cost are making transactions all members of the interbank market. The EBS, along with Reuters services, allowing each bank to offer a cost appropriately (even if everyone can put their funds freely) .

Friday, September 12, 2014

Control of the rate of change is the end of the day

In recent months the trend rate of change towards a greater appreciation of our funds has increased & for this reason has been the subject of much controversy. I will must cease on the key in this economic phenomenon occurs right. This is a substantial increase of income of foreign funds in to the country, reflecting the growth in investment and exports of mining and energy, without that wealth has an equivalent increase in compensation appetite to acquire such currencies. In short supply exceeds demand.






 I will refer to highlight the beneficiaries & the victims of the trend, which explains to some extent, the delay or resistance to take steps to give greater stability to the exchange rate ,Control of the rate of change is the finish of the day, a political decision, & government agencies can only legislate on the matter. They are concerned with public opinion about the effect that the rate of change is occurring in the productive sector of trad-able goods and services, therefore in employment, but I doubt that in his heart did not feel satisfaction for a phenomenon that facilitates management and improvement in appearance results.

The exchange rate fulfills the same role as tariffs; if dollars are worth less, importing is cheaper. This factor favors the guild of merchants, long lasting goods importers.

Thursday, September 11, 2014

To trade Forex you need to have a strategy to take advantage



To trade Foreign exchange you need to have a strategy to take advantage of the speedy changes & market conditions. There is no short way to create a strategy as it is necessary to check it in different situations. This means that every trader must invest considerable time analyzing charts, news reading and staying updated economic announcements.

Like any profession, it is important to be aware of the prices of the money pairs that you are interested in running & do some research on the subject. Before you start trading in any particular pair, it is important that a questionnaire is made with some questions & find the answers. Some questions might include this questionnaire are:


How strong is the economy of country A relative to country B at the moment? This query can be answered by taking a look at the current Gross Domestic Product, unemployment and indicators of production, among others.
  

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Gold and currency




Central banks have become the main weapon of countries to try to revive their battered economies to devalue their funds strength against the rest. The world is full immersed in the so-called funds war and the "aggressive" easing announced yesterday by the Bank , but more episode of this strategy has its greatest exponent

all central banks carried out very expansionary financial owner results are not desirable and the risk of entering a downward spiral from which escape is difficult runs. In fact, this will be of the topics you plan on the World Economic Forum .

The issue is that it is generating in all countries counterfeit money to deal with a debt that is very hard to pay and also accumulates while disposable household income decreases because states must increase the tax burden , which rises and falls insecurity therefore, consumption.