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Standard Account – The next step in your trading journey FXB Trading Standard Trading Account is a popular choice for more experienced traders. With leverage up to 1:500, and exceptional support from the FXB Team, Standard Account is the account choice for traders who want to take their trading careers one step further.
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Virtual trading and the global economy We have seen the rise of the virtual world in the twenty first century, which is a world that exists entirely on the internet. The currency that is used is known as bitcoin, but it does not possess any physical form. Bitcoin has now become a widely used currency, especially in China, the economic powerhouse. However, the lack of physical form makes bitcoin completely different to what money should be. A long time ago, the value of money was exactly what it was made of. Gold coins were made, and their value depended on the amount of gold in circulation. Nowadays, most money is printed on paper, which does not have that much value. Therefore, the government can print as much money as it wants as long as it has the cheap materials needed to print the money. Bitcoin is the next step in this worrying trend regarding the creation money. Bitcoins have no physical form, and they cost almost nothing to create. However, using bitcoin is very convenient as online transactions can be carried out using a currency which is suitable for expediting simple financial transactions. Read more..
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Trading share CFDs Explore opportunities on the most important global markets such as US as well as rising markets in Europe, Asia and beyond. Develop your positions, hedge your risks and use your portfolio as security for cross-asset-class trading, all from one account and the same innovative platform, with effective, dynamic technological tools that allow you to be in control. A contract for difference (CFD) is a common form of derivative trading. CFD trading allows you to speculate on the rising or falling prices of fast-moving global financial markets such as shares, indices, commodities, currencies etc. Why trade share CFDs? Research & analysis tools Our powerful technology allows you to manage your assets wisely. We provide effective research tools such as stock screener, charting features, fundamental and technical analysis, calendars, and access to in-house and third party analyses in order to give you the essential information to make your decisions. Dependability Technological expertise demands dependable control. Our track record of helping our clients succeed is the foundation on which you can build your success. Global access Select shares from dozens of markets in the US, Europe and Asia. Research shares directly in your platform and execute trades instantly. With FXB Trading’s global market access, you do not have to lose any opportunities. Extensive range of shares FXB Trading offers an extensive range of shares for different types of traders and market strategies.
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Boeing share price soaring, but turbulence lies ahead Boeing’s (BA) share price has risen an impressive 66% compared to this time last year, boosted by enthusiasm in the airline and defence markets. Increased travelling has had a positive effect on airline traffic, while rising international tensions have prompted countries to increase spending on defence. But there is turbulence ahead for Boeing in the shape of increased competition in its biggest operating segment, airline business, which has yielded $65 billion of the company’s $95 billion total revenue over the last two years. While this is unlikely to send Boeing’s share price into a tailspin, it might be expected to move sideways for the foreseeable future. Airbus, Boeing’s main rival in the airline business, have traditionally made bigger planes and hadn’t been able to benefit from the recent downsizing trend in the airline industry and increased demand for smaller, more fuel-efficient planes. However, now Airbus has taken a majority stake in Bombadier’s C series jet programme, and in an instant, has added a high-performing, smaller sized aeroplane to its range without incurring any acquisition costs. Read More...
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MT5 WebTrader FXB Trading MT5 WebTrader allows you to trade in an instant from any browser and operating system without the need for downloading or installing any software. Simply sign into your account through the browser of your choice and experience the unique trading functionality of MT5. Key features: Trade CFDs on 4 asset classes Available on all browsers and operating systems Multiple time frames to choose from One-click trading Market depth information
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Patience may pay off for General Electric traders Many analysts expect General Electric (GE) to exceed their profit expectations when they post their third quarter earnings report on October 20, as it has done in eight of the last nine quarters. However, there is also a high expectation that its share price will fall as it has done for the past seven quarters after earnings results are released. Fears over a dividend cut have eased since last week – which would have led to an investor exodus and a serious drop in share value – but there still seems to be a lot of work to do for recently appointed CEO John Flannery who is overseeing restructuring and reorganising efforts. “A dividend cut could crush the stock as retail investors flee, but maintaining it gives GE little or no excess cash to grow,” Jeffrey Sprague, an analyst at Vertical Research Partners, said last week. “GE has continued to shrink the company but it has not proportionally shrunk the dividend.” Moody’s Investors Service credit analyst Rene Lipsch told Reuters that GE’s options would narrow next year when it no longer receives billions from asset sales at GE Capital. Adding that, long term, the dividend “depends on Flannery’s ability to increase cash flow from the businesses.” Flannery’s appointment has been followed by the announcements that its CFO was leaving the company along with news that two vice chairs were retiring which have been taken as a bad sign by analysts. JPMorgan are one that hasn’t been impressed by the new appointments or restructuring at GE. Read More..
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MetaTrader 5 platforms MetaTrader 5 offers all the innovative features that MT4 has to offer allowing you to analyse the market with a wide range of pre-installed technical indicators and graphical objects, and functions as a platform where you can place your orders. The platform provides everything you need to trade the financial markets. Trade CFDs on forex, indices, commodities, and shares from one platform with no rejections, no re-quotes and flexible leverage from 1:1 to 1:500. MT5 desktop application If you prefer to trade directly from your desktop, the advanced MT5 desktop platform puts you in control when trading the world’s markets. Key features: Spreads as low as 0 pips Tick chart trading All order types supported Over 80 technical analysis objects Market depth information Market execution
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Buckle up the Tesla ride is going to be bumpy This looks likethe time for traders to bet against Tesla (TSLA) shares in the short term as the market reacts to reports that Model 3 electric vehicle (EV) deliveries are going to be delayed with news stories about escalating production costs, production line issues and lay-offs throwing doubt on the company’s ability to turn a significant profit on its new model. The chart above shows that after steep rise of 68% throughout the year the share price is showing signs of volatility. Barclays were among the first to advise their clients to short Tesla with their analyst Brian Johnson suggesting a $210 price target – well below the $340 consensus on Wall Street. Barclays feel Tesla’s November 19 announcement about truck production will be decisive in swaying investor confidence in the company. Tesla are projecting production targets of several million per year in the near future as well as significant progress in other business opportunities like battery storage. On the back of these projections some analysts have been uber-bullish about Tesla with Morgan Stanley’s Adam Jonas – who is widely followed on Wall Street – raising his 12-month price target from $317 to $379. Read More..
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Start your trading career on the right platform. Open your FREE account and download FXB Trading MT4 platforms today. Enhanched Security And The Lastest Technology Monitor The Market With Accuracy Extremely User Friendly Trade on PC, Mobile, or Tablet
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Traders cashing in on PayPal success In his note to clients Faucette noted that the market may have been overly concerned about a potentially negative impact of renegotiation of its contract with eBay, and that PayPal is maintaining its massive acceptance as an e-commerce website over other digital wallets and that it is expected to benefit significantly from e-commerce tailwinds. It looks like a great time for traders to start getting friendly with PayPal (PYPL) shares after Morgan Stanley’s James Faucette upped his price target to 76 from 62 along with a number of other analysts who are equally enthusiastic about the online payment service provider. The above chart plots the increase in share value which has grown steadily from the beginning the year, and which is expected to continue after the third quarter earnings report is released. In his note to clients Faucette noted that the market may have been overly concerned about a potentially negative impact of renegotiation of its contract with eBay, and that PayPal is maintaining its massive acceptance as an e-commerce website over other digital wallets and that it is expected to benefit significantly from e-commerce tailwinds. What PayPal has over its competitors is consumer trust. It feels like it has been around for a long time, and that’s a priceless commodity in the e-commerce age. Since its spin-off from former parent company eBay in 2015 PayPal has expanded into a payments service provider, incorporating mobile payments into its operations. It has also reaped the benefits of giving consumers more options at checkout by using credit cards following its online checkout deals with Visa and Mastercard in 2016. Bernstein’s Lisa Ellis sees PayPal grabbing an even greater portion of the market over the next three years and her positive prognosis has been echoed by analysts at BTIG, Merrill Lynch and Barclays. One area where more growth is possible for PayPal is by forming partnerships with retailers who are looking for ways to better compete with Amazon. Deutsche Bank have described PayPal’s social payment app Venmo as its “crown jewel” which they believe will accelerate revenue growth in the coming months and years. Buckingham Research initiated Paypal’s stock at buy, proclaiming that “nowhere are the prospects higher” in the payments arena – a ringing endorsement. Many experts also see the contract renegotiation with eBay in 2020 as unlikely to have any significant impact on PayPal’s earnings. A continuation of their ongoing relationship as eBay’s preferred payment provider is highly likely as both companies benefit from each other, and even if the terms are less favourable, the American P2P market is predicted to triple in size by then which suggests PayPal will become far less reliant on eBay. PayPal’s third quarter earnings report is just around the corner, making this a great opportunity for traders to take a position. This is no flash in the pan. PayPal has reported strong double-digit top-line growth for several years now, with a slight blip in earnings reported in the third quarter of 2015. For advice on how to take advantage of PayPal’s share price movement, or on how to trade shares in general, talk to the experts at FXB Trading. Our platform makes it easy to start earning a second income with only a small investment in time and funds needed. The FXB Trading team are on hand to teach its members any aspect of trading that they are interested in, and reveal how they make their living trading the world’s markets.
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Account comparison FXB Trading offers a wide range of account types to suit the trading preferences of all types of traders. Have a look at our accounts, and if you have any questions, please get in touch with our support team by live chat or email support@fxbtrading.com *Minimum deposit amounts are quoted in USD. Deposits made using other currencies will be subject to the prevailing exchange rate and must satisfy the minimum USD deposit amount stated.
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Did the markets miss what happened in Vegas? It’s the morning after the Vegas shooting. Over 50 innocent lives lost in another act of random violence that has shocked every decent person to their core. Everyone except the markets, it seems, despite it being the deadliest shooting in modern US history. Predictably, gun stocks have soared while the value of MGM shares (the company that own the hotel chain that was the scene of the massacre) have plummeted. But for Wall Street and the other markets it’s almost like it never happened. But imagine yourself, if you can, in America’s playground today. What would you be doing? How many people are out and about enjoying what makes Vegas what it is? How many have decided to end their visit early and go home? How many others have decided to cancel their trip to Sin City? How much money that would have been spent in Vegas today and in the coming weeks is going to stay at home. Probably billions, but that disturbance to the economy is being treated like a scraped knee. In Catalunya, violence during the referendum for independence from Spain saw 850 people injured. It also had a direct effect on the value of the Euro. It’s likely to have an ongoing influence on Euro/Dollar trading as the aftermath and implications of the Catalan vote are factored in. It could be argued that the two events shouldn’t be compared. It’s a valid argument until the memory is cast back to how the markets reacted to the 9/11 attacks. Every event that has a direct effect on the flow of a significant amount of money has an effect on the markets. It’s like taking some of the oxygen out of the air – it’s going to get harder to breathe. Vegas is one of the US’s biggest tourist destinations. Over 250,000 people work in hotels, restaurants, bars and casinos in the area. An additional 100,000 jobs rely on tourism by providing services to the industry. And yet CNBC decided a history of gun stocks value rising after shootings is the most significant aspect of the massacre to focus on. The Wall Street Journal didn’t mention it at all on the front page of their website, but found space for effect of hurricane Maria on insurance. CNN lead with the charitable donations big business were offering the grieving. Las Vegas is going to be affected by this shooting because it relies on tourist arrivals. Last year 43 million people visited the city and they spent $35.5 billion. $1.4 billion of that is collected by state and local government in gaming and rooming taxes every year. But Reuters’ main finance story on the shooting was a video interview of New York University hospitality professor, Richie Karaburun, saying that there would be no impact on international travel to the city and only a very slight impact on the number of visitors who will go this weekend to Vegas. Sometimes the news will help a trader make trades, on others, like today it doesn’t. But you can be sure that the experts at FXB Trading have already factored in the effect of the tragic event that took place in Las Vegas on Sunday evening into their immediate trading strategy. Seasoned traders don’t need a news report to tell them which way the markets are going to go, they create their own analysis and draw their own conclusions to events in order to stay profitable. For advice on how to take advantage of price movements in shares, or on how to trade shares or currencies in general, talk to the experts at FXB Trading. Our platform makes it easy to start earning a second income with only a small investment in time and funds needed. The FXB Trading team are on hand to teach its members any aspect of trading that they are interested in, and reveal how they make their living trading the world’s markets.
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Trade CFDs on commodities Discover the potential of the commodities market by trading CFDs on the world’s most popular commodities. Trade CFDs on products such as gold, silver, and oil. Diversify your investment portfolio and take advantage of price movements. Why trade commodities with FXB Trading?
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How to choose technology and industrial stocks The common denominator for everyone who invests in stocks is to make predictions on the price evolution in order to capitalise on market movements and consequently make money. But how they go about it is dependent on how risk averse they are, and the time frame over which they want to realise profits. Investing in the stock market is both an intellectual challenge and a reflection of your own character. Before you decide which stocks to pick you need to understand what kind of investor you are. Growth investors tend to focus on a company’s potential for future profits, and whose earnings are rising the fastest. Since growth-oriented investors are interested in big future earnings, they are often willing to pay a high price for a stock relative to what it earns right now. The metric used to value stocks here is the price-to-earnings ratio (commonly referred to as the P/E). Value investors hone in on the current value of a company’s assets (factoring in its debts), and look for stocks that are cheap compared to those assets. Optimistic forecasts for profits are less important for them so they end up buying stocks with lower P/E ratios. Taking the value approach sounds like a more conservative approach, but there is the risk that these stocks go out of style for long periods of time. What may have initially looked like a bargain may turn out to a bad investment which other investors avoided because they identified serious problems with the business. That’s why solid research is critical when buying stocks, and the most common advice you’ll read about investing in stocks is to diversify. Investing in stocks in a business sector about which you already have knowledge will usually result in better results than taking a punt on company based on a tip you’ve read about, but about which you know next to nothing. The industrial sector is filled with companies whose names are familiar and whose products you may well own. They’re in construction, manufacturing, agriculture and transportation and include aerospace, defence and industrial machinery. When picking a stock in this sector look for a company with a history of sustained profitability. If it has come through a recession and maintained profitability that’s a big plus. Study the behaviour of the Board of Directors. If they’ve been able (and willing) to return excess capital to owners through dividends and share repurchases then they are worth considering. Also, look out for companies with a competitive advantage, it usually means it’s harder for their competition to attack their market share. For many the technology sector is a huge investment opportunity. It is the largest single segment of the market, eclipsing both the financial and industrial sector. But it is also the toughest to predict with any degree of long term certainty because it is the most highly competitive, where technological breakthroughs can render a product redundant and cause a stock to plummet. Today’s game-changing innovation can quickly become yesterday’s obsolescence. It wasn’t so long ago that 640K of RAM was considered leading edge for personal computers and mobile phones the size of bricks were only seen in the hands of city slickers. Since being founded in 1975 Microsoft has been written off as a force on numerous occasions. But a combination of diversification and technological advancement has seen it continue to dominate the market. Similarly, Apple’s obituary was penned in the 1990s, but they returned with a product that has arguably had the biggest effect on our lives in recent years. Many investors simply avoid technology stocks entirely. The unpredictability makes it too risky a proposition. However, this cuts them off from one of the most dynamic engines to modern economies. Compromise is the key, and finding a balance in your stock ownership to meet your needs. Once you’ve picked your list of companies you’ll need their latest performance figures before making a decision on which to invest. Every major corporation is obliged by law to publicly declare their accounts – the information provided in their balance sheets and profit and loss accounts will provide critical information on whether it is the right time to invest in them. To help your research there’s an excellent tool on FXB Trading which will help you find out the publication dates for this critical data (https://fxbtrading.com/ex-dividends-dates). The ideal situation is to amass a collection of businesses that produce sufficient dividends to use to enjoy life. Some stocks you will buy at one price and quickly sell at another, in the hope of realising a decent profit. These will more often, but not always, be from the technology sector. Others are better owned for years as the underlying earnings per share continue to grow even while the stock price itself is volatile. Stocks like these are more often in the industrial sector, but again, they can be found elsewhere. Avoiding a commitment to one single industry or company ensures that the risk is spread and that in the long-term your portfolio is able to ride the inevitable waves of volatility while still remaining a solid investment. For advice on how to take advantage of price movements in technology and industrial shares, or on how to trade shares or currencies in general, talk to the experts at FXB Trading. Our platform makes it easy to start earning a second income with only a small investment in time and funds needed. The FXB Trading team are on hand to teach its members any aspect of trading that they are interested in, and reveal how they make their living trading the world’s markets.
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Trade CFDs on forex Forex, otherwise known as Foreign Currency Exchange or FX, is the world’s largest market and it is waiting for you! When trading forex with FXB Trading , you can be certain that we have your best interests in mind. We offer a competitive pricing structure and tight spreads on a wide range of major, minor and exotic currency pairs, allowing you to build a portfolio with the outcome that you want. Why trade forex with FXB Trading? Tight spreads from as low as 0.1 pips Competitive levels of leverage MT4, MT5 and Web trading platforms Wide range of tools for analysis
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Cryptocurrencies and gold: You need to take a position Any trader looking to make money on the markets needs to invest time researching before taking a position. If you do a search on cryptocurrencies it won’t be long before you’ll see an article that compares their merits against gold. Should you invest your hard-earned money in gold or cryptocurrencies? They ask, and variations on that theme. The number of these articles implies that they are somehow in competition with each other. But it’s a phoney war, as they both have a different role to play in the world of finance and in your portfolio. One of the reasons gold has stood the test of time is the stability it offers against the unpredictability of currencies and the sudden collapses that have taken place throughout history that can wipe out fortunes in an instant. Gold is the perfect way to hedge against risk, impervious to natural, financial or political disasters. Cryptocurrencies also offer a viable alternative to traditional currencies because they are decentralised, meaning no central authority can take it away from you. But they differ in tangibility. Gold has been around forever and relied upon for centuries. Cryptocurrencies have no history, they are so new people are still waking up to them and their possibilities. The sense of value that comes in physically holding gold can’t be replicated by cryptocurrencies. They don’t ‘feel’ as safe as gold because they rely on an internet connection, they can’t be seen, they can’t be held. But in reality, very few people reading this will have actually bought anything with gold. The likelihood is that most never will, but there is a strong possibility that some will make a transaction with a form of cryptocurrency in the future. Their full role or use hasn’t been fully explored or understood which has led to sceptics expressing caution. This month Ray Dalio of Bridgewater Associates gave an interview to CNBC where he expressed his concern that Bitcoin (one of the leading cryptocurrencies) is a speculative market that was a bubble. JPMorgan chief Jamie Dimon went even further, describing it as a fraud and warning that he’d fire any trader he caught buying or selling it. But Bitcoin and other cryptocurrencies are necessary because people are losing trust in money, and while gold offers the sense of security people are looking for it lacks genuine usability. And, if central banks start to invest in Bitcoin and other digital currencies it will increase their legitimacy to a wider number people in a short period of time. Gold will be around for the next hundred years and beyond. However, it’s difficult to predict how long cryptocurrencies will be around. So, as a store of value, gold holds sway. But gold’s value won’t increase dramatically in the next 2-3 years or beyond. Cryptocurrencies have and will continue to gain value. So rather than seeing gold and cryptocurrencies as an either/or situation, it makes more sense to find a place for both in your portfolio when you trade them on FXB Trading and focus on finding a balance between the level personal goals and exposure and the level of acceptable risk. They both provide a great opportunity to enhance your earning potential.
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Prime time to trade Netflix If you’re already a Netflix (NFLX) subscriber you probably don’t need too much convincing about how good it is and will appreciate why analysts are predicting thatits share price is set to rise even higher, despite the fact that it has already grown 59% this year as it teases the $200 per share mark. You will notice from the chart that Netflix share price has a tendency to reach a peak as quarterly earnings figures are announced followed by a drop before picking up on its overall upward trend. If you’re not a Netflix subscriber then you’re one of the reasons why these analysts expect its share price to keep on rising – they expect that you soon will be. Streaming is the present and the future. It’s a service that meets the entertainment needs of our increasingly demanding lives and once you’ve subscribed it’s hard to live without. Think of it as having unlimited access to one of those old video stores that you used to rent DVDs from. Only with Netflix you never need to leave your home to get your viewing entertainment and you watch what you want, when you want and as many times as you want. Opt for the premium service and you can also view the content simultaneously from another screen, tablet or smartphone and enjoy your favourite show while other members of your family watch what they want. And most important of all, Netflix offers some of the best shows and movies around in an app that’s very easy to use. So far, they’ve produced hits like “House of Cards”, “Orange is the New Black”, “Narcos”, “Peaky Blinders” and “The Killing”. Last week Netflix announced a price rise which immediately boosted stock prices. And they are not worried about losing subscribers because it’s still value for money. By comparison, the monthly subscription for the premium service is about the same as it costs one person to go to the cinema. Wall Street firm UBS has told its clients that Netflix will report a third-quarter subscriber growth, and this has been achieved without the addition of any compelling new content. However, new content is being rolled out in the fourth quarter with the release of new seasons of “Stranger Things” and the “The Crown” – two of the network’s most popular shows. Netflix recently made its first acquisition by buying Millarworld, a comic book publishing company that includes “Kingsman: The Secret Service” and “Wanted” among its titles which suggests further new original content should be expected. Netflix has competition from rivals Hulu and Amazon (AMZN),and the potential entry of Disney (DIS) into the streaming market could disrupt their market share. Traders who have followed Netflix for a long time are also aware that the stock can be volatile. However, as long as it continues to produce its own steady stream of original content and remains price competitive it stands on firm ground. For more advice on Netflixand how to capitalise on share price movements talk to the experts at FXB Trading.
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You can now fund your FXB Trading account with Skrill Traders can now use Skrill to fund their trading on FXB Trading which means they'll no longer have to enter their credit card details when making a transaction Deposits Login to your Member Area Navigate to ‘Deposit Funds’ Choose your preferred fund withdrawal with Skrill Submit your request. It’s that simple. WITHDRAW Login to your Member Area Navigate to ‘Withdraw Funds’ Choose your preferred payment method with Skrill Submit your request. It’s that simple
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Don’t bank on the banks As earnings season edges closer, investors are looking over the banking sector’s biggest names to assess their potential. JPMorgan (JPM) and Citigroup © release their figures first, followed by Wells Fargo (WFC) and Bank of America (BAC) then Goldman Sachs (GS) and Morgan Stanley (MS). US banks have benefited recently from a perceived likelihood of interest rate increases from the US Federal Reserve. However, much of these banks’ future performance will depend on the tax cuts that US President Donald Trump proposed recently, and the ability of his administration to get them through Congress. If passed, net income of the big six banks could rise $6.4 billion with Wells Fargo, Bank of America and JPMorgan the biggest beneficiaries, according to a recent Bloomberg report. However, Trump’s administration has been frustrated by Congress’ unwillingness to back the president on a number of policies that he has wanted to pass since coming into power. And Morgan Stanley’s chief US equity strategist, Mike Wilson, claims that S&P 500 companies will not hit their 2018 estimates without them. JPMorgan chief executive Jamie Dimon predicted a 20% year-on-year decline in the bank’s trading revenues. However, analysts are expecting JPMorgan to report EPS (earnings per share) of $1.66, an increase from the $1.58 recorded in the same period last year despite revenues falling year-on-year to reach $25.3bn. Citigroup’s chief financial officer offered a similar outlook revealing that total market revenues are down 15% in the third quarter. However, Citigroup EPS are forecast to be $1.30, six cents higher than the same quarter earnings posted last year. Wells Fargo’s problems are self-inflicted as they are struggling to shrug off the battering their reputation took as a result of numerous recent scandals. Wells Fargo may be legendary investor Warren Buffet’s favourite stock but earnings are expected to be less than 1% up on last year. Bank of America warned earlier this month that trading revenue in the third quarter is expected to be down 20% and that this is may have a negative effect on its quarterly earnings report. Goldman Sachs produced record revenues in the first three months of the year and maintained a strong performance throughout the first six months. Goldman Sachs co-president Harvey Schwartz is predicting similar figures for the third quarter. Despite this the bank seem to have missed out on the recent big bank rally with its share price up just 1%. The EPS forecast is $4.25 down on last year’s $4.88. Morgan Stanley’s share price has increased more than 16% this year. Analysts forecast EPS of $0.84, up exactly $0.04 from 2014’s $0.8 EPS. For more advice on the banking sector and how to capitalise on share price movements talk to the experts at FXB Trading.
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Stay up-to-date with the FXB Trading App Use this useful trading app on-the-go to keep an eye on market moving news, identify emerging trading opportunities by reading in depth technical and fundamental analysis, utilise signals to ensure you are trading in the correct direction, and so much more. Whatever your trading style, whether you like to trade CFDs on forex, commodities, shares or indices, the FXB Trading app delivers exactly what you need to boost your results. What’s in the App? FXB Members’ Area: Access your FXB account area from anywhere with an Internet connection Market News: Stay up-to-date with the latest news Economic Calendar: Predict the impact of key, upcoming economic announcements Live Price Feed: Rely on us for real-time currency rates Daily Analysis: Read daily Technical and Fundamental Analysis Trading signals: Check your trade set-ups with accuracy Trading Calculators: Make important trading calculations quickly and easily
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It’s going to get volatile sooner or later Strap yourselves in, the markets are going on a rollercoaster ride. And depending on your appetite for risk you should prepare your portfolios accordingly. If you want to protect what you have, the sign posts to the safe havens haven’t changed and are easy to read. If you want to try and ride the volatility and believe you have the know-how to profit from it, then take a deep breath and start reading between the lines of news stories. There’s no roadmap for this because the outcome is far from certain. The ongoing chess match between two superpowers has reached a critical point, and control of the Arab states is set to be redefined according to whose plans play out the most successfully with Syria as the focal point. From 2012, former US President Barack Obama argued that the US shouldn’t intervene in Syria’s civil war, wary of the anti-US atmosphere resulting from conflicts in Iraq and Afghanistan. Russian President Vladimir Putin stepped in and directed the Syrian conflict in favor of Russia, Iran and the Assad regime at the expense of the US and its Arab, Israeli and Turkish allies. Perhaps it was payback for Washington meddling in Serbia and Bosnia in the 1990s. Turkey, a long time US ally, now seems to be aligning themselves closer to Russia. The King of Saudi Arabia has just made the first ever state visit to Russia in a prologue to billions of dollars’ worth of deals between the two nations. If Russia continue unchecked they’ll have a greater influence on the Middle East than the US, and that’s a situation the Americans cannot allow to happen – they’ll have to react – and that’s the big unknown. How they react and the outcomes that result are going to cause volatility in the markets. So how does a trader prepare – or take advantage – of this upcoming situation? Expect the currency markets and the price of oil to experience the highest levels of volatility in the wake of an escalation of conflict in the Middle East – especially in European stock markets. But other commodities will also experience volatility. Significant movement in the VIX (Volatility Index) – also known as the fear index – reflects the market participants perception about the market’s future volatility. The safe havens, like Gold and other precious metals, tend to do well during periods of extreme volatility. It’s no coincidence that Russia has been stockpiling gold for years, and despite official figures no-one really knows how much they are holding because they’ve also been mining gold at a far greater intensity in recent years. Gold is the insurance policy countries take out when currencies are set to fall, China has also followed Russia’s lead on gold and this could be very significant if the US dollar loses its status as the leading reserve currency. Those hoping that Cryptocurrencies can step into the breach and restore calm to volatile currency markets need to bear in mind that their very existence is still precarious. If it doesn’t yet have the backing of the central banks it’s hard to envisage a reality where it is taken up in a significant enough volume to be able to provide buoyancy to free-falling currencies. This could explain why China has blocked Cryptocurrencies – perhaps it has designs to take over from the USD as the leading reserve currency. As ever, the financial institutions will play a significant role in how the markets react. New money has been pumped into economies at unprecedented levels in recent years in an effort to promote sustainable growth. But at the same time world debt has increased to a point where a significant crash is no longer being talked about in terms of ‘when’ and not ‘if’. Why? Because world debt has increased to a point where it can no longer be paid off. It’s at $65 trillion and climbing. If you were to ask a real estate agent to put a value on the value of all the land in the world today, based on current market values, it wouldn’t come anywhere near the figure of debt that countries have accumulated. And what happens when what you own is worth less than what you owe and you can’t pay it back? The bank forecloses. This will translate into an economic crash of proportions that have not been witnessed before. Years of depression will follow, as global economies effectively press the reset button to bring debt back to manageable proportions. It’s time to prepare for the volatility, it’s coming.
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FXB Trading is accepting bitcoin payments through Bitpay, a leading Bitcoin payment service provider. Traders can now fund their accounts with Bitcoin and start earning by trading with FXB.
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Learn to read between the lines to make better trades So, you’ve got the trading bug. You’ve made your first profits – albeit modest – by making safe trades. There are riskier trading strategies that can earn bigger profits. You know about them, you’ve been warned about them, and you’re not interested because the downside is too great. So how do top traders end up making so much more money? It’s not by taking bigger risks. Profitable traders earn more because they’re better at predicting and understanding how markets react to news and economic data. They read between the lines of the constant stream of information that is available on trading platforms to make more profitable judgements. The best traders use information to make a trade before the trend becomes visible to others. For profitable traders, breaking news stories and economic data is information to be deciphered into factors that can affect the market. It’s not easy. If it was everyone would do it. But it’s far from impossible, and can be learned. Understanding economic performance and what affects it is an area that profitable traders excel. What follows are examples that demonstrate the importance of being able to translate data and news into something meaningful. Example 1. Gross Domestic Product (GDP) is one of the key indicators used to gauge how a country’s economy is performing. During the last recession in the US economy’s GDP was $14.3 trillion (2008), $14.2 trillion (2009) and $14.6 trillion (2010). During one of the worst economic periods in recent history the US economy was actually flattish and ever-so-slightly growing. But it felt much, much worse and to most people it probably felt like it was shrinking. So why the disparity between perception and the economic indicator? The answer is that America has been accustomed to growth. Since 1945 the US economy had averaged 3.3% growth per year. Small changes in GDP can have a huge impact in stock market values. 4% feels like a boom and is reflected in consumer sentiment. 2% growth feels like a recession and flat conjures up bleak, black and white newsreel from the 1930s. Any GDP figures above the 3.3% average triggers investors to pull their money out of safe havens, employers start hiring and consumers start buying. Anything less than the 3.3% average triggers negative reactions. Example 2. How should you react when Apple, IBM or Microsoft post successful quarterly, half-year or yearly results? These are companies with combined revenues that run into the hundreds of billions of dollars. So, clearly, they are important. But a far more significant indicator of economic health is the success of startups, not the giant corporations. The Kauffman Foundation, the US’s top entrepreneurial think tank, revealed that the most important contributor to a nation’s economic growth is the number of startups that generate billion-dollar revenues within 20 years. They suggest that the US needs between 75-125 billion-dollar startups per year to maintain economic growth. Example 3. GDP is a widely used by economists to measure economic progress, but it falls short of incorporating the impact the economy is having on average citizens and the day-to-day realities of life. The Genuine Progress Indicator (GPI) was created in 1995 by the Redefining Progress think tank as an alternative measure to GDP and tries to reveal a perspective on a nation’s economic prosperity. GPI and GDP calculations are based on the same personal consumption data, but GPI is adjusted by applying monetary values to non-monetary aspects of the economy. Many GPI factors have a direct impact on people’s quality of life, while traditional economic focus is more strictly on making money. So far, it has been adopted except in Canada and some smaller European nations. But it has been reviewed by the scientific community and recognised for its validity at gauging the public’s consciousness, which is critical for understanding how an economy feels to consumers. There are also some popular economic ‘myths’ involving government that need to be debunked to clarify their relevance and impact. ‘Increased government spending helps the economy grow.’ All monies that a government injects into the economy must first be taxed or borrowed. It doesn’t create new income or increase production it simply moves money to another part of the economy. ‘Government spending makes people more productive.’ This can often have the opposite effect, and can make an economy worse. For example, there are some welfare programmes that encourage recipients to rely on government handouts rather than work. However, spending on infrastructure improvements can reduce transport costs which can then increase productivity and help the economy. ‘Governments should bail out faltering industries to revive the economy.’ Again, the opposite is largely true. Bailouts effectively reward reckless spending and encourage more of the same in the future. However, government leaders are sensitive to bad headlines, for instance when a high-profile company closure will result in widespread job losses. Politically, it makes sense to save those jobs with a bail out, but not economically, especially if they are not followed up with measures to improve how that organisation runs its finances in the future. ‘Tax cuts only reward the rich.’ Strategically programmed tax cuts stimulate economic growth by encouraging work, savings and investment. In the US high tax rates were reduced during the 1920s, 1960s and 1980s. Economic growth and increased investment followed. The economy grew 59% from 1921 to 1929, 42% from 1961 to 1968 and 34% from 1982 to 1989. The populist headline that usually follows high end tax cuts is that the government are simply helping the rich get richer. To an extent this is true, but they also create more jobs, help people to save for their children’s education and increase earnings in general. The real point is that the ‘rich’ got rich because they are better at making money than other people and are far better at using money than most governments. Some traders are better than others because they are better at understanding economic data and news and its implications. And now you know how to become a better trader.
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