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Market Analysis

The Forex Market – Deciding When and When not to Trade

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The movie ‘A Good Year’ begins with a scene that takes place in the financial centers of London, England where the protagonist Max Skinner earns over $70 million dollars in a single morning with his agressive trading style. There is a quote from that scene that is relevant to all traders: “The secret to riches is the same as the secret to comedy… Timing.”

In currency trading, knowing when to get in and knowing when to get out is what its all about. Having a profitable trading strategy is a great thing, but even the best trading strategy in the world will fall apart if it is not executed with proper entry and exit points. This article will show you a few forex market analysis methods that you can use to determine when is a good time to trade, and more importantly when to stay on the sidelines.

If you are already a trader then you have probably narrowed down a list of currency pairs (or perhaps just a single popular currency pair like the EUR/USD) that you feel comfortable trading and that fits your trading style. Once you know the pair you are trading, the next step is to open up your price charts and determine where the market is and where it is likely to go next.

One of the best ways to determine the overall trend of any set of price data is to overlay a 200-period moving average line. This principle applies whether you are looking at a 15-minute chart or a daily chart, and the nature of your trading strategy will determine how big of a price movement you are trying to capture and consequently which time frame is most relevant to your trading.

If you had a short-term forex trading strategy where you went for gains in the range of 10-30 pips per trade, a 10-minute or 15-minute chart would serve you well and you could look at your moving average line to see if the market is in an uptrend, a downtrend, or if there is no defined trend. You may likely want to stay out of the market if there is a sideways moving market because these market conditions are the hardest to predict.

It will also serve you well to bring up a longer term price chart for your chosen currency pair such as a 4-hour or daily chart and to bring up your 200-period moving average line on this chart as well to see what the overall activity of this currency pair has been over the past weeks and months. With this knowledge you will know what type of market conditions you are dealing with and whether you should trade an open position or stay out of the market.

Market Analysis

B2b Global Trade Market Tips

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When conducting trade through B2B websites such as EasyTrade.com, it’s important to look at some of the factors in your target market. 

 Rather than venturing directly into the offshore market, every business firm should make a prior analysis about the feasibility of exporting its products. This process, which is termed as “assessing export readiness”, must be a systematic, unbiased and a properly planned procedure that can be useful in evaluating the viability of the product in international market.
 
According to US Department of Commerce’s Export Qualifier Program, there are certain criteria that can determine the export readiness of the company and its products. There criteria can be broadly termed as organizational factors and motivational factors.

 Motivational Factors – One of the prime motivational reasons is business expansion. A successful export business requires a proper planning involving detailed market analysis,structured overseas partnership and developing an international sales and marketing strategy. Proper use of  B2B websites allows you to gain access into new markets for expansion. Competing in the international market provides an opportunity for the companies to get exposed to international standards, acquire new technologies, building long-term partnerships and improving the quality of their products. International customers demand superior quality products. Any company with a technologically advanced product can make a successful impact in the export sector.

 Organizational Factors – A successful export business is only possible with the commitment extended by the management towards their partners and customers. Management must ensure that adequate funding is available for supporting international business strategy on a long-term basis. Exportation would require funding as a working capital, for modifying products, providing short or long term credits to<a rel=”nofollow” onclick=”javascript:pageTracker._trackPageview(‘/outgoing/article_exit_link’);” href=http://www.easytrade.com/English/Member/TradeLeads/Offer2Buy.htm> overseas customers</a>, recruiting employees, communications, quality verification, shipment costs and traveling. Apart from this, management must actively participate in devising plans for overseas market, managing the programs and allotting well-qualified personnel for this purpose. The personnel must be versed with international trade regulations and better have the ability to communicate in the local language of the target market. Management must always concentrate on building plans that are aimed at building long-term international customer base,and providing deeper penetration into the market. They should always ignore any short-term profits. The business also has to make sure to capitalize on the ability to connect with new clients using websites oriented towards B2B commerce.
        
Apart from these, the company must have the resources and manufacturing facilities sufficient to cater the demand of the international market. There should be no compromise in the quality of the product even with an increase in the production capability of the company. Along with these criteria, a detailed market analysis must be done in order to determine whether the product would qualify for the international market.

Market Analysis

Forex Managed Account – Nov 28 Market Analysis

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Previous Session Round-up

In the US, looking forward after the financial turmoil, the Federal Reserve Bank of Chicago head said Tuesday, Nov. 27, that business investments may decline, while consumer purchases (including those by creditworthy consumers) of durables and housing units will also go down, leading to sluggish US economic growth.

The US Consumer Confidence Index plunged nearly 8 points from Oct 95.2 to Nov 87.3. This marked the fourth consecutive month that consumer confidence decreased. The Nov figure is much lower than the expected 91 and is the lowest level reached since October 2005.

The credit crunch, continued weakness in the housing sector, and soaring oil prices continue to weigh heavily on consumer’s minds.

The S&P/CS housing price index again fell by 4.9% Y/Y in September in a continuing slide from -4.3% Y/Y in August. The labour market situation is currently mixed and uncertain, but forward outlook is not good.

Citigroup, America’s largest bank, which was badly hit by the mortgage crisis, revealed Tuesday it was set to receive 7.5 billion dollars in investments from the Abu Dhabi Investment Authority to shore up the bank’s capital.

In the EU, there was slight improvement in overall business confidence this month in Germany and France. The German IFO rose to Nov 104.2 versus Oct 103.9 which the IFO interprets as an indication of gradual cooling of the still-strong current economy. In France, business confidence also gained ground from Oct 108 to Nov 110. But in Italy, a slight deterioration in business confidence, from Oct 92.8 to Nov 92.2, led to the lowest confidence level reached since December 2005.

Germany’s preliminary inflation data for November increased more than originally thought at 0.5% M/M and 3.3% Y/Y, with the main drivers being higher prices for energy and food. The higher inflation in Germany puts more pressure on the ECB, caught between a slowing economy and a growing inflation.

But the better than expected business confidence levels in Germany, the volatility in the stock market, and the rising inflation buoyed the euro as it tested the 1.49 level. Towards the end of the session, the euro settled in the 1.4820 band, although US data remained weak.

Brief notes on trades:

• EUR/USD at 23:10 GMT rose to 1.4832 dollars, up from 1.4826 dollars in late trading New York.

• GBP/USD at 23:10 GMT was 2.0671 dollars, down from 2.0690 dollars, after a BoE member noted the inflation risk carried by higher oil and commodities prices. The speech dampened market expectations of the BoE cutting interest rates, pushing GBP lower. The weakness in the UK housing sector and uncertainty of BoE interest rate cuts may increase the chances of more GBP losses, going forward.

• USD/CHF traded at 1.1051 francs after the rallying US stock market triggered more volume in carry trade activity, weakening the CHF.

• USD/JPY was trading at 108.84 yen improving from 108.88 yen in late New York trade. Japanese retail sales enjoyed its third consecutive month of increases, rising 0.8% Y/Y in October. Overall retail sales had also risen at 0.5% each during August and September. However, large-scale retailers reported a slight 1.8% Y/Y decrease, after adjustment.

• A degree of bullishness buoyed up the AUD after Construction sector grew 2.8% in Q3 and the US equity markets rebounded. The Australian dollar reached a slightly higher level of 0.8768 US dollars from 0.8767 US dollars overnight..

• USD/CAD traded at 0.9961 as the slowing US economy fuelled concerns that the Canadian economy would be sluggish as well. Selling pressures on the CAD also came from retreating gold and crude oil prices.

Market Outlook

The EU economic calendar will release M3 money supply data today. No activity is scheduled in the UK economic calendar today. Yesterday, a BoE member highlighted two shocks that hit the UK economy: sharp increases in oil and certain commodity prices, and financial market crisis, both of which increase worries of inflation.

Close attention is invited on the US housing data and durable orders. Later in the session, comments from two Fed speakers and information from the Fed Beige Book (a preliminary document in preparation for the December FOMC meeting) should provide significant information. Durable goods are still expected to decline, perhaps by -0.1% M/M. Existing Home Sales for October are expected (5M units, -0.8% M/M) to confirm the softness in the housing market.

The Fed Beige Book may provide information about the stuttering economic growth, which may leave the door open to some easing in policy.

Market Analysis

Executive Summary Service (Ess) Media Converter Market Analysis-Aarkstore Enterprise

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Summary-level research findings of our study of the worldwide consumption value (US$, Million) of selected copper/fiber optic media converters used in communications applications.

For the purposes of this study, The media converter as a device that changes from one type of media to another. Specifically, we classify this product as a hardware device that connects different communication transmission media; for example, from copper to/from optical fiber or from copper to/from multimode optical fiber to/from singlemode optical fiber. The global media converter market is segmented into major product categories, as shown in Figure 1.

Media converter types range from small standalone devices and PC card converters to high port-density rack-mount products. Media converters can connect different Local area Network (LAN) media, modifying duplex and speed settings. Switching media converters can connect existing/installed 10Base-T network segments to more recent 100Base-TX or 100Base-FX Fast Ethernet infrastructure. For example, existing Half-Duplex hubs can be connected to 100Base-TX Fast Ethernet network segments over 100Base-FX fiber.

When expanding the reach of the LAN to span multiple locations, media converters are useful in connecting multiple LANs to form one large “campus area network” that spans over a limited geographic area. As premises networks are primarily copper-based, media converters can extend the reach of the LAN over singlemode fiber.

Market Analysis

Forex Market Analysis

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I wanted to take the time to talk to you about forex market analysis. This is a very important skill to develop because being able to properly analyze the market allows you to predict the movement of a currency and profit from it. A lot of people, for some odd reason, just don’t want to put in the necessary effort to learning this market. These are the people that continuously lose money because they’re just not willing to be smart. I’m going to share with you what I’ve learned over my time trading that can help you be more profitable.

This is a global market that is open all hours of the day and night. This may seem like an advantage because you can work on a very flexible schedule, but the fact is the market can be extremely unprofitable at certain times. Typically, you have too different times to trade; low and high volume. These are the two that you have to watch out for. At low volume times the market is extremely slow. A lot of people think this is a great time, but the fact is that supply and demand isn’t stable, so things are erratic. Stick with the high volume times for trading.

Being prepared for the job with the right tools will help you do better forex market analysis. Most people try to do things on their own and that just doesn’t cut it. The key is to have automated software like the 10 Minute Forex Wealth Builder, which watches the market and is constantly analyzing it.