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Top 4 Best Tips On How To Trade Gold Professionally

Gold Trade

Gold is undoubtedly one of the most appreciated metals amongst professional traders, at the moment – and that is perfectly understandable, given the fact that the gold prices have been on the rise lately. Most traders regard gold a very save haven asset, almost as safe as platinum, and if you are just getting started in the trading industry, then here are several professional and useful tips on how to trade gold efficiently, in order to minimize your losses and to maximize your gains:

1. Never Invest More Money In Gold Than You Can Afford To Lose

A very common mistake amongst beginners in the trading industry is that they often end up buying too much gold – in spite of being one of the safest and most stable metals at the time being, there are many other valuables from the same asset class that have fallen in value. Statistically speaking, most professional investors invest less than 5% of their portfolio in gold, while beginners are advised to invest no more than 3%.

2. Gold Miners Are An Outstanding Way To Gain Exposure

If you are committed to gaining exposure to gold, then look no further than gold miners. The share prices of mining companies have increased lately, thus making them hold better value. Nonetheless, it is important for every gold investor to remember that shares in gold mining companies will be affected by all broad sell-offs in equities, which means that this metal can be very volatile and easily influenced by the market conditions.

3. Exchange Traded Funds Are A Good Choice

As it happens with platinum and silver, investors who have decided to trade metals should know that gold ETFs (exchange traded funds) are a great way to gain further exposure to gold. Those who are interested in doing so should know that they can easily buy and sell shares on a daily basis, and all funds are always backed by physical gold, which means traders can rest assured knowing that their money is in good hands. However, it is important to remember that some yearly management fees may apply to these gold exchange traded funds. Also, if you just want to “test the gold market”, then you should only use gold exchange traded funds in the short-term: the longer the period, the higher the risks.

4. Never Underestimate The Value Of Holding Physical Gold Separately

Last, but not least, no professional gold trader will focus exclusively on physical gold – as mentioned above, the metal trading market is a highly volatile one, and abrupt changes in the gold prices can occur when you least expect them. This is why it is of utmost importance to hold some physical gold in vaults or in nominee accounts, as this is the only way to be sure that the metal is held in your name. There are numerous trustworthy, experienced and reliable gold storing services that offer such services, at affordable yearly storage costs. In spite of the fact that holding physical gold does offer the owner some peace of mind, the only downside is that finding a physical buyer can be a time-consuming process.

Best Commodities to Trade in 2015

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What affects oil prices?

Oil Prices

What affects oil prices? This can be a possible question in case you are interested in investing in the sector. There are many factors that affect the price of oil. They range from oil production to the way it is handled in the market. Oil is a mineral that is available naturally. In some areas there is plenty of oil while in other places it is very rare. There are many countries in the world that have a lot of oil resources which has made their economies grow. The mineral has many uses such as in powering industries and in the automotive sector. There are also other petroleum products that can be used for different purposes hence the commodity has many uses. Here are factors affect oil prices:

  1. Global changes in supply and demand

The oil production in the world is controlled by OPEC. The organization tries to maintain stable price for a barrel of oil but due to different challenges the price of oil barrel has been fluctuating. Because oil is produced in specific regions of the world, it depends on different means of transportation to reach different parts of the world. The constraints in transporting the oil to different parts of the world lead to differences in demand hence making the price of oil to fluctuate.

  1. War and political instabilities

Due to political instabilities in countries located in the Middle East, there has been an increase in the price of oil. This is due to the fact that when the countries that produce oil go into war with each other, they stop the oil production activity. A good example where political instability lead to an increase in the price of oil is when the countries that produce oil in the Middle East were in war with the USA. The most hit countries by the increase in the price of oil due to the war was those that used to import their oil directly from Middle East countries. War leads to lowering oil production hence leading to an increase in the world prices. The rise in the price of oil due to political instabilities in the producing countries affect many economies of the world especially those that rely on power from the oil to run their factories. This is mostly manifested where the cost of production goes up.

  1. Oil available in oil reserves

The price of oil in different countries can be affected by the oil reserves of the countries. For instance, different countries that do not produce oil will import it from oil mining countries and store it in their oil reserves. In case of a decrease in the supply of oil in a given country, the government of the country can decide to tab oil from its reserves. This will lead to the price of oil falling because traders will fear more decrease in the price of oil hence releasing more to the market. Some of the oil reserves that the government can tab to regulate oil prices include oil available in the oil refineries.

Best Commodities to Trade in 2015

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Best Commodities to Trade in 2015

Best commodities to trade

As 2014 comes to a close, we take a look at the financial sector to see how commodities have fared in the market. What this does is that it allows us to predict what the market trends will look like in 2015. As a result one can plan what commodities to trade in within the coming year in order to maximize profits.

A Brief Review of 2014:

  • Gains: The year 2014 has seen quite a few highs and lows in the commodities market. The U.S. Stocks have increased considerably, despite a correction in September and October. Furthermore, the growth in earning and continual monetary support from the Federal Bank has ensured that the stocks thrive. The Standard and Poor’s 500 Index generated a total return of 10.35 percent year to date since November 2014.

With the Barclays Aggregate U.S. Bond Index generating a return of 5.19 percent, bonds have also proved to be a profitable investment.

  • Losses: On the other hand, gold and oil have shown sharp declines. Gold has dropped 1.8 percent while oil is down by a staggering 18.2 percent.

Having seen what the market looks like in 2014, let us look at some of the predictions regarding commodity trade in 2015.

Best Investments for 2015

  1. Metal: The market for metals has shown a steady increase over the last couple of years. As of now, they seem to be a safe bet in terms of investing. The returns have been fairly high and those who wish to invest in commodity instead of stock can take a look at this sector.
    1. The cost of palladium has increased from $853 to $860 per ounce in the Canadian market.
    2. However, it is important to note that gold and silver have suffered an overall decrease. Metal prices are predicted to drop by at least 5.5%. The reduced demand for precious metals from China is a major contributor to the weakness of this financial sector. Hence while considering investments, traders are advised to follow the updated market trends.
  2. Farming and Crop: While 2014 has seen a general downward trend in commodity prices of crops, rice, coffee and cocoa seem to be the exceptions to the rule. This is because of declining crop prospects amongst Asian suppliers. The result is an increase in prices across all three commodities. Cocoa, especially, could see a further price hike due to the problems faced by workers many of whom have become victims to the Ebola virus.
  3. Industrial Sector: While oil prices have fallen steadily over the course of 2014, there is also an increase in the number of new plants being constructed for natural gas supply. What this means is that it is possibly safe to expect that investments in the pipeline companies will return higher profits. No matter what happens with the price of oil, the infrastructural details promise to be unaffected. In fact, many financial experts predict that the government will allow a widespread supply of oil and natural gas in the new year.

While investing in any commodity, one must always consider the market trends in the past year and keep in mind predictions from credible sources. Since financial trends fluctuate based on any factors such as foreign policy and international demand and supply, there is a need to follow the changes on a regular basis in order to make a profitable investment.

More into currencies? – read THIS

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What Affects the Canadian Dollar

Canadian Dollar

As with every currency in the world, the strength of the currency and rate of exchange depends on numerous factors. These factors include government policies, global economic trends and foreign policies. However, it is not always easy to determine what factors affect the strength of a currency. In this article we will attempt to discuss what the various factors that affect the Canadian dollar today are.
Factors That Affect the Canadian Dollar

  1. Market Influences: Since the Canadian economy participates in a floating exchange system, the value of the currency is determined by the market trends. What this means is that factors like change in the demand and supply of market commodities affect the Canadian Dollar. Market influences include:
    1. Internal Business Activities: Business activities within the country affect the dollar. Increase in activities (rise in production, sale and purchase of goods) increases the demand for the dollar. This leads to an net gain in currency strength. Similarly, a decline in the supply-demand trend leads to a decrease in terms of currency strength. Furthermore, if the supply is not adjusted to suit the lower demands, the value of the dollar may fall relative to other currencies.
    2. Movement of Investments: International investments strongly affect the Canadian Dollar. Every day companies in and out of Canada invest in foreign stock and bonds around the world. The cash flow from Canada where business companies buy foreign exports or invest in companies abroad, leads to changes in the value of the dollar. Whenever there is an increase in the number of foreign investments, the rate of the dollar rises. So, for instance, if a foreign company decides to invest in a Canadian business or product, the strength of the dollar rises in proportion. Similarly, when investments leave the country, the value of the dollar suffers.
  2. Government Influences: One of the largest factors that affect the value of the Canadian Dollar is the monetary policy of the government. The monetary policy is over-viewed by the Bank of Canada which outlines interest rates, foreign exchange rates and determines the financial policies. Some of the ways in which this affects the economy are:
    1. Regulating Money Supply: The Bank of Canada regulates money supply by buying and selling shares in the international market. In order to stabilize the value of the dollar, the Canadian bank will buy or sell significant quantities of the Canadian dollar. This prevents a sharp increase or decrease in the value of the dollar.
    2. Changing Interest Rates: The Bank is authorized to change interest rates across the country. What this means is that if there is a drop in the strength of the currency, the bank might increase the interest rates in order to stabilize the dollar. The fluctuations in market trends are an important factor in deciding the interest rates in the country.

As can be seen, the value of a currency is affected by multiple factors. These factors depend entirely on the current market scenario. Hence, although one can determine why the strength of the currency has increased or decreased, it is impossible to give the exact reason for market changes. The Canadian dollar is affected by a variety of internal and external factors and anyone who wishes to invest in shares or stocks is advised to follow the country’s financial trends closely. go here to read our Canadian dollar outlook.

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Best Currencies to Trade At 2015

dollar 2015

With the New Year around the corner, it is crucial for you to carefully consider your financial status and plan a strategy for further investments. The key to increasing profits and maintaining long term business gains is to try and find the strongest currency pair to trade in.

Currency Strength Forecast for 2015

While a few currencies such as the Dollar and the Euro have normally dominated the market, it is important to review the currency strengths regularly. As 2014 comes to a close we look at some of the major currency trends in the world so far. This allows us to make predictions for the coming year so that we can reap maximum financial benefits.

  1. The Euro Forecast: The current Euro exchange rate is:
    1. 1 EUR= 0.7837 GBP and 1 GBP= 1.2770 EUR
    2. 1 EUR= 1.2516 USD
    3. 1 EUR= 1.443 AUD

A forecast for 2015 suggests that the EUR/USD will decline to 1.25 by the year end. It also says that there will be a consistent fall although at a slower rate than at present. HSBC Holdings predict that the EUR/USD will be 1.19 by the end of 2015. Furthermore, if the US government ignores the push backs to increase the value of the USD, the downside may be significantly higher.

  1. Australian Dollar Prediction: The popular forecast suggests that the year 2015 will not be a positive one for those expecting a strong Australian currency. Economists expect the Australian GDP to fall by 2% in the coming year. At present the GBP/AUD exchange rate is trading at 1.8460 which is at a 0.43% decline.
  2. Pound Forecast: Currently, the GBP/USD exchange rate is below 1.6000 and can possibly fall even further to 1.550. Needless to say the GBP-Dollar trading seems to be at a back foot. Financial experts predict that this will decline further depending on the USD bulls.

The predictions of declining exchange strength have led many to believe that UK will join the European and Monetary Union (EMU). This has been further strengthened by the fact that the Bank of England has recently supported the prediction that the GDP/USD rates will suffer a decline.

  1. Canadian Dollar Forecast: The current CAD rates are:
    1. 1 GBP= 1.8124 CAD
    2. 1 USD= 1.1183 CAD
    3. 1 EUR= 1.4095 CAD

The Bank of Canada seems to foresee its currency value decreasing over the course of the coming year. This puts a bit of a pressure on the currency exchange rates. The possible decline has been credited to the fact that the US might reduce their purchase of Canadian assets. All in all, the currency does not look favourable for a secure investment.

  1. The New Zealand Dollar Predictions: The New Zealand Dollar (NZD) has faced substantial pressure in terms of exchange rates. The recent rates are as follows:
    1. NZD to USD is 0.27% low
    2. Pound to NZD is 0.22% high

As far as predictions for the coming year are concerned, financial experts have recommended that traders proceed with caution while working with the NZD.

These are the broad trends that analysts have predicted for the coming year. While the predictions are based on the current situation and the possible government foreign policies, traders are advised to keep an eye out for market changes. Since currency rates always have the possibility of fluctuation one must remember to research thoroughly before investing.

Are you ready to trade binary options? – learn how to choose a binary options broker

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What affects the CAD/JPY?

The Canadian Dollar (CAD) and Japanese Yen (JPY) are among the most stable currencies in the world. However, like with all currencies, they can be affected by a number of different factors. In fact, Canadian Dollar and Japanese Yen fluctuations are a normal part of the global economy. These currencies can be affected by rate changes, as well as supply and demand that can determine currency rates based on monetary flow. This article explains what affects the CAD/JPY.

Check out the current CAD/JPY Rate.

1. Interest rates

Interest rates can affect all currencies, including the Canadian Dollar and Japanese Yen. In fact, the interest rate of these currencies are incorporated into the price of the currency, or the predicted price at a point in the future. Currency rates can rise if interest rates are expected to rise, while currency rates can decrease if interest rates are expected to decrease. Interest rates have effects which influence currency. Currencies of economies that are expanding are favored, especially when it comes to supply and demand. However, a country that has a GDP that is increasing faster than the monetary base it has is increasing the value of its currency. This increase in the value of the currency can be seen in currency rates.

2. Supply and demand

Purchasing power can affect currency rates, and the economy may go through different cycles called ‘inflation’ and ‘recession’. During a recession, the ability of a country like Canada or Japan to purchase goods on the international market can decrease. However, during inflation, the purchasing power of a country increases, which then can increase the value of these currencies. Both Canada and Japan have high purchasing power, and are known for manufacturing many different products which are then exported around the world.

3. Global events

Global and national events can have an effect on a country’s currency. In some countries, war and other events can have a negative effect on their currency. However, as Canada and Japan are both politically stable countries, they are considered good places for businesses to invest. For example, the Canadian cities of Toronto and Montreal are economic powerhouses, and attract foreign investment from businesses around the world. In Japan, cities like Tokyo and Osaka are financial centers, also attracting global trade – which has a positive effect on the Japanese currency. Businesses and financial experts will often keep track of a country’s national policy and other events that may affect their currency rates. They will keep up to date by watching financial news networks, or by reading financial publications on a daily basis.

4. Economic fundamentals

Economic fundamentals can have an affect on the currency of a country. These can include data reports, changes in economic policy within that country, investments, levels of business, and interest rates. When this information is released, it could deter international companies from making investments within that country, and the value of that country’s currency could be affected in a negative way.

5. Debt

The amount of debt that a country owes can also have an effect on their currency. Currency values can be affected when the amount of debt that a country owes is high.

Best Currencies to Trade At 2015

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An outlook at the Canadian dollar

As the year comes to a close the Canadian economy faces a five-year low. Owing to the slump in the sale and purchase of crude oil which is one of the country’s largest exports, the Canadian dollar reached an all-time low. It depreciated by 0.5 percent, closing at $ 1.1534 per U.S. Dollar. This has been recorded as the weakest that the Canadian currency has reached since July 13, 2009.

What Are the Current Exchange Rates?

Following the trend across the international markets and the domestic situation in Canada, the conversion rates have been predicted to be around:

  • The Pound Sterling to the Canadian Dollar is at 1.8384
  • The Euro to the Canadian Dollar is at 1.4533

Causes

  1. Crude Oil Export – Financial experts have ascertained that the fall in the strength of the currency is owing to the declining profits of the crude oil business. As crude oil prices fell to about 20 per cent below the $80 a barrel mark, the International Energy Agency predicted that about a quarter of the Canadian producers needed to turn in a profit if they wished to stabilize the CAD.
  2. Unemployment – Economists have noted that it is not only the reduction in oil prices, but also the high unemployment rates that have affected the Canadian dollar. The labour market has been said to have lost over 9,000 jobs since June this year. This officially pushes the rate of unemployment up by 7.1%. Only 6 out of 16 sectors reported higher payrolls. This development comes despite their being a rise in full-time hiring. In addition to the construction sectors of the labour market, those at the manufacturing unit also suffered losses. The resultant leads to a severe decrease in momentum as far as providing jobs are concerned. Economists apprehend that with the fall in oil prices, the labour market might see a further depreciation.

Consequences

Following the fall in the Canadian government bonds, the Bank of Canada has been compelled to release a statement that predicts a further drop in 2015. While the dollar stabilized over the week after the initial slump, the Bank has not ruled out a further depreciation. In fact, the lack of exporters as regards crude oil indicates that a full financial recovery is a good two years away. The Canadian economy could weaken further as the CAD/USD exchange rate is expected to fall to $1.18 in 2015. This could further slow the economic growth by as much as one-third of a percentage point. Coming at a time when unemployment rates are at an all time high, this news could potentially shock many of the Canadian citizens.

However, the Bank has also predicted that the weaker Canadian currency could broaden the economic recovery scheme. What this implies is that there might be an increase in the number of exporters that could potentially expand the economy by 2-2.5 per cent next year. This would solve the problem of indebted customers and could potentially prevent the correction in a housing market that is currently over-valued by 10-30 per cent.

Overall, however, the scenario in the global oil market has sapped the Canadian economy. Financial experts across the country are apprehensive of the year 2015 since they predict a further depreciation. Despite the marginal benefits of the weaker, the Canadian Dollar continues to be a major cause for concern in the country.

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An Outlook at the Canadian Economy

CAD

This year, the world’s economy has experienced better GDP numbers and positive media commentary. However, despite all these positive optimism, the U.S economy and the Euro-zone continue to be fragile and the momentum in Japan is tapering off. The situation is even worse in developing countries that are still facing various country-specific challenges, including increased financial risks, structural imbalances, incoherent micro-economic management, geopolitical and political tensions as well as infrastructural bottlenecks.

The Organization for Economic Co-operation and Development (OECD) recently published a report on an outlook at the Canadian economy. According to OECD, the Canadian economy appears increasingly vulnerable to recession as the country continues to grapple with the challenge of taking appropriate fiscal and monetary policy actions in the aftermath of the financial crisis. The international economic research and policy group forecast Canada’s economic growth to strengthen, but is highly threatened by substantial risks including still-high debt levels, divergent monetary policy, volatile markets and still-high financial instability amid a slowdown in China and the spread of the Ebola virus outside of West Africa.

Inflation continues to be a non-issue

The Canadian Chamber of Commerce in its 2014-15 economic outlook report states that the country’s economy is projected to strengthen moderately to 2.5 per cent in 2015, up from 2.3 per cent in 2014. This prediction is based on the IMF’s global financial and economic forecast that World Gross Product will grow at a pace of 3.3 per cent in 2015 compared to 3.0 per cent in 2014. The IMF report expects GDP to increase by 3.1 per cent in U.S., 7.1 per cent in China, 8 per cent in Japan, 2.7 per cent in U.K. and 1.8 per cent in Japan. The Bank of Canada reports that the country’s inflation remains well anchored. It is expected that inflation will remain within the bank’s 1.0 per cent to 3.0 per cent inflation-control range for the next two years.

Overall, there are signs of improvement for the world’s 11th largest economy. The Euro-zone is finally creeping out of the protracted recession and the U.S. economy continuing to recover. Majority of the emerging economies are starting to see accelerating economic growth characterized with growth in foreign direct investment (FDI) inflows, portfolio equity inflows and significant fall in non-bank credit flows. At present, the average rate of inflation in Canada and the U.S. is less than 2 per cent, around 2 per cent in the U.K., and below 1 per cent in the Euro-zone. In fact, even in countries in the periphery of the Euro-zone, such as Cyprus and Greece, prices have dropped recently compared to the previous year. However, for the country to reap full benefits of an improved global economic outlook, it has to tap new markets, strengthen its competitiveness, and secure and expand its involvement in global supply chains.

Major challenges and remaining fragility

Canada’s main growth challenge and fragility still remains lackluster international trade flows. These flows continue to remain the key policy concerns as long-lasting effects from the financial crisis continue to weigh on labor markets in the country. Vulnerability in emerging economies to both the external shocks and domestic structural bottlenecks, the remaining fragility in both the financial sector and the real economy in the Euro-zone, a possible escalation in geopolitical tensions and the risk of a failure in containing Ebola may also exacerbate any financial recovery. Other challenges include the risks and uncertainties associated with the divergence in monetary policies among the major developed countries, and QE exit and normalization of interest rates by the U.S. Federal Reserve.
Best Currencies to Trade At 2015

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How To Trade Binary Options Profitably

How to trade

The fact that Binary Options trading is used to make profit does not mean that an alternative outcome cannot crop from the same. This implies that it is not automatic that profits will come right after you have decided to venture into Binary Options trading. It is therefore imperative to ensure that everything is set right in order to get an assurance of profit in the end.

Fortunately, there are a lot of ways and strategies you can use to succeed in Binary Options trading. However, it is very important to ensure that the strategy you have decided to implement matches with the situation at hand. You also must approach Binary Options trade with a lot of prudence to ensure that chances of going on the drain are narrowed.

Here are some guidelines on how to trade Binary Options profitably:

Research Is Fundamental
You must reckon that not all strategies can work ideally in each Binary Options Situation. It is for this reason that thorough research is called upon before you make any further move into the investment. The research is considered paramount in dictating the ideal strategy to be implemented. It is also a great way of understanding the prevailing market trends and identifying ones that can generate high profit.

Deal With The Right Broker
You will realize Binary Options trading features a lot of brokers. However, out of the many brokers, not all can be relied on. It is therefore necessary to ensure that the broker you deal with is indeed the best and nothing less. The reputation of the broker you have chosen must be very appealing. In addition, the broker must be totally conversant with Binary options. The good thing about such brokers is that they reduce the risk of losing money in the trade. A good broker makes all the difference.
Read the article on – How to choose a binary options broker

It Is A Long-Term Investment
The problem with most people is that they venture into Binary Options trading with a mindset that it is a short-term project. This is because they live with the fear of losing money in the deal. As such, they are compelled to consider brokers who offer early exit from the plan. For your information, binary Options trading must be considered as a long-term plan for substantial profits to be registered. All you need is to play the right cards during the trade and you can be assured of making huge returns in the end.

Avoid Emotional Decisions
The decision you make during Binary Options trading determines on if you will make profit or get nothing. This means that you must have a clear mind in order to make the right decision. In most cases, new Binary Options traders are carried away by emotions and end up making their decisions in such state. In the end, they make the wrong move hence prompting zero returns.

It is only natural that emotionally compelled decisions can be misleading. In this regard, it is greatly advised that both new and existing Binary Options traders should decide courageously and rationally in order to elevate the chances of making high profit eventually.

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