How to CORRECTLY interpret the direction of the Trend

FOREX trends

Without news and economic announcements, the FOREX market would be an apathetic place

In fact, any stock market would exist for nothing if there were no news, financial results or any other events meant to change the bearish or bullish trends of the balance of supply and demand.

As a trader, I do not care very much to understand this news in depth.

However, I am very attentive to how the market reacts to these ads.

The way the market “reacts” to a certain event can provide the necessary clues related to our next move.

Reading the Market Trends Based on FOREX News

Being able to determine the trends is very important if you want to become a profitable long-term trader.

In fact, all Price Action or geometric formations experts use in trading are a way of reading the stock market’s trend. Obviously, when you understand and interpret them correctly and not mechanically, things might start looking up for you.

Let’s suppose we have an upward trend for GBP/USD and obviously, we want to buy in order to benefit from this trend or we have a buying position already open and we want to pyramid correctly by adding to that position.

Following the reaction of a currency after the news is being released from the UK, you can see the market trends in the GBP/USD area (keep in mind that you are interested only in the news marked with red).

If a market is on an upward trend and this negative or neutral news appears on the market, and yet the market is still rising, it means that buyers ignore this news and continue to maintain their position.

Moreover, new buyers enter the market, a factor that leads to the increase of the price even more.

Conversely, if a market is on a downward trend and positive news fails to reverse this trend means that vendors took over control.

 

The big players from the American bond market

Apple, Alphabet, and Microsoft are just three of the most appreciated American companies that have become a force in the global bond market, pumping billions of dollars into the national budget and corporate titles.

No less than 30 different American companies share investments worth $00 billion dollars in fixed income tools, suggests an analysis created by Financial Times.

Their holdings transform these names into a real force when it comes to debt markets, in comparison to top asset managers like AllianceBernstein, Invesco or Franklin Templeton.

“They are real asset managers,” revealed Ramaswamy Variankaval from JPMorgan about these companies.

Against the reluctance of US multinationals to repatriate their earnings abroad, the level of US-owned liquidity has risen to more than $2 billion, with 50% more than in the last decade and twice the levels reached at the beginning of the century, according to the data released by the US Central Bank.

In total, those 30 companies, including Ford, Coca-Cola, and Boeing, hold more than $1.200 billion dollars of liquidity, according to FT analysis.

Apple will use these funds to finance the capital program for their shareholders as well as for general expenses.

The US company has a $96.6 billion exposure to senior unsecured bonds and $12 billion in unsecured short-term bonds, according to July 1 data.

Apple has so far issued bonds in dollars, pounds, euros, and yen. Almost two months ago, Tesla sold $1.8 billion in bonds for eight years. On Tuesday, Amazon.com issued $ 16 billion in bonds to finance the acquisition of the Whole Foods Market for $ 13.7 billion.

 

The Americans are running away from London: Goldman Sachs might triple the number of employees from Frankfurt

Goldman Sachs might increase up to four times their Frankfurt staff due to the Brexit, revealed Wolfgang Fink, co-CEO for the German subsidiary for Bloomberg.

“We have discussed on numerous times about doubling the staff in Frankfurt from the current level to about 200 people and there are scenarios about a tripling it”, added the German leader.

Morgan Stanley, Citigroup, and UBS also expressed their desire of relocating their activity positions in the German financial capital in the context of Brexit.

Frankfurt has become a very popular destination for bankers who end up leaving London.

Meanwhile, the Frankfurt Main Finance lobby group has predicted that up to 10.000 employees will, eventually, end up relocating from London to Frankfurt in the following four or five years.

Britain’s decision to leave the EU has led major financial institutions to set up new operations centers within the EU bloc to secure access to their EU customers.

A source inside Goldman Sachs revealed earlier this year that the US bank is considering moving at least 1.000 employees to Frankfurt.

According to the last estimates published by the Bruegel Reflection Center, London could lose up to 30.000 jobs in the financial sector due to the Brexit.

Earlier this year, German paper Handelsblatt wrote about Goldman Sachs’ plans of transferring 3.000 jobs to Warsaw, Frankfurt and New York.

 

HOW TO MAKE MONEY ON FOREX

How to make money on FOREX

“Is that even possible?” – This is the exact question that convinced me to write this article, a “mystery” which I have chosen to clarify with the following response: “Yes, a lot of money.”

However, just as easily as you have managed to earn some cash, you can also end up losing all of them.

The main concept is actually quite simple: except for those major unpredictable events such as the chaos which is now storming China’s economy or the unexpected bankruptcy of some state, a typical FOREX day is characterized by a low rate variation… just like today.

For example, if you invest $100 when the American dollar is showing some signs of increasing and you plan on selling it the following day, you will end up scoring a win.

So far, the process sounds like an investment, right?

Here comes the “miracle” taking place every single day in the FOREX market, also known by the “veterans” as the concept of “margin trading”.

So, what does this “pompous” term means?

For every single euro or dollars invested from your own pocket, the broker offers you the opportunity to invest 10, 50 or even 100 euros or dollars from his pocket…and that’s normal.

You just have to trust the process because this is similar to a loan which the broker offers you in order to earn more money on FOREX: for each $100 you end up investing, you will actually gain the opportunity to invest $10.000 or, why not, much more.

In specific FOREX terms, that means you invested with a leverage of 1: 100.

For example, if you chose to invest $100 with a leverage of 1: 100, you profit will be 100 times bigger.

During a month with 20 working days, you will end up scoring $2.000 in revenue from the comfort of your own home.