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8 Reliable Ways to Predict Movement in the Forex Market

The ability to skilfully predict changes in the forex market can be the difference between a trader making profit and losses. To survive and thrive in the forex market, it’s important to grasp the factors that cause changes in the price value of currencies. These eight factors will help you forecast any changes in the forex market, allowing you to gain an edge in the trade.

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The Consumer Price Index (CPI)

This is the measure of the prices of consumer products and services, such as food, transportation, automobiles, and healthcare. The measure helps a country keep a leash on prices by indicating when prices are rising (inflation) and when they are falling (deflation).

As a forex trader, you should keep updated with current inflation rates so as to accurately predict market movements. When inflation rates are stable, then you know you can go ahead and trade that currency pair. However, with high inflation rates, trading in that country’s currency will lead to losses.

Trade and Capital Flows

With forex trade being a global industry, the capital or trade flows in and out of a country can increase or decrease its currency value. Before predicting a currency’s performance, check whether its country is heavily dependent on exports, because in the event the exports drop, the currency will fall.

Capital flow is the money investors inject in the country. A currency value is hurt if investors flee from a country, for instance, due to political upheavals, lack of political goodwill, etc. It is thus an important factor when pondering how to predict forex markets.

Economic Growth

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The performance of a country’s economy has an impact on its currency. Generally, a stronger economy creates the environment for a stronger currency. This is because; the higher the economic growth, the more opportunities to invest and conduct business in the country. This increases the demand for the local currency, lifting its value.

Interest Rates

Just like with economic growth, the more the interest rates of a country increase, the more its currency becomes stronger. This is because higher interest rates attract investors to save their money in bonds, stocks and savings accounts, causing an increase in demand for the local currency.

Geopolitics

Any disturbance of the political scene in a country causes a shake-up in the forex market. Since a currency is representative of a country, government politics and global relations will often determine its stability or its fall in value.

Mergers and Acquisitions

This factor is useful when predicting the short-term movements in forex trading. When a foreign country firm purchases or consolidates with a company in a particular country, it causes an economic ripple on the local country, causing a change in currency value. Any savvy forex trader will keep an eye open for this sort of movement and either lean in to capitalize on it or avoid investing, depending on the economic effect the move causes.

Natural Disasters

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Catastrophic natural events on a country, e.g. earthquakes, hurricanes and floods usually impact a country’s currency, and not in a positive way. The aftermath of such events, from national apprehension to damaged infrastructure – which is the backbone of any country’s economy, to loss of life, causes a currency to depreciate.

Wars

Much like natural disasters, war can have a devastating impact on a country’s economy. Apart from the destruction of infrastructure, wars can devalue a country’s currency value by the ripple effect of the massive rebuilding efforts – which cost massive amounts of money. This is because reconstruction efforts require capital obtained from very low-interest rates, diminishing the value of the local currency.

Forex traders should be on top of any such development so as to be able to predict the direction of forex movement in the country. If a widespread war occurs in a country whose currency is part of your currency pair, then you’ll know to hold out until the economy stabilizes.  

Summary

Forex traders have information at their disposal to assist them more than ever before. Taking calculated risks is the key to making maximum profit in the forex industry, and that starts with watching out for events that may rock their currency pair’s exchange rates. This information will enable you to strategize even better; by having an accurate idea of when to enter or exit the market.

Budget Blast: Having Fun With Your Money

The world of finances can often be a very boring one for those who don’t know much about it. Counting beans and making sure you have enough of the stuff is the most important part of it all, though you will also need to make sure that you are saving for the future. This post isn’t about the drab side of your money, though, instead focusing on some ways to have a little bit of fun with it. Before starting, it’s worth considering moderation. These ideas are just for fun, and shouldn’t come before covering your other financial commitments.

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Playing Games

The world of video games has been growing a lot over the last few decades. People across the world are enjoying digital experiences, and there are more games than ever before to sink your teeth into. Of course, though, there are some games which can be connected to your finances. Betting and gambling can be great fun when they are done in moderation, with the thrill of winning being a great way to make you think more about your finances. Tools like premiere league stats for betting can help you out with this, giving you a much better chance of winning the games you play.

Making Investments

While this next area is often seen as extremely serious, making investments can be a great way to have some fun with your cash. There are loads of businesses out there that need help with their general operations. Putting money into their pot will often give you a small chunk of the business, while also giving you an insight into the way they work. Even the process of choosing a company to invest in can be a lot of fun, and will almost feel like a game. Of course, it’s not worth putting serious money into something like this unless you plan to make something out of it, and this will be harder than simply having fun.

Moving Money

There are always loads of different types of bank account available in the modern world, and most people have to use at least one of them in daily life. Not a lot of people realise that these types of services are changing all the time, though. It can make sense to move your money around on a regular basis, choosing accounts based on the interest you’ll get back from them. Of course, though, you have to treat this like a game if you’re going to have fun with it. Applying for an account with a higher rate than you’ve had before will be a high score, while doing research will be the work which gets you there.

Having fun with money isn’t something which a lot of people realise is possible. It makes sense that people worry about this side of life, but this doesn’t mean that you should have to treat it like something which is only serious. Instead, by having fun with this part of your life, you can push yourself to learn more about it, while also making significant improvements in the process.

Managing Your Money – Small Beginnings, Big Changes

The concept is straightforward enough, you want to save a little each month and build up a fund that will be there for you to tap into in case of an emergency or that you can grow in order to get that house renovation done, a new car or the holiday of a lifetime.

But while, yes, it seems straightforward it appears that for some of us those good intentions of saving for the not-so-distant future are hard to turn into reality. But what is it that’s holding us back? What prevents us from saving for the things in life we really want? Perhaps it’s a lack of organisation, a problem that exists around our monthly budget or the fact that we always seem to find something better to spend our money on. 

If you’re looking to make some changes in the way you manage money then you’ve come to the right place. In this article, we’re taking a look at how you can get yourself organised in your monthly outgoings and manage to start saving for those big things in life that seem so far out of your reach just now.

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The Dreaded Spreadsheet

You knew it would come to this, but if the idea of inputting all your incomings and outgoings into a spreadsheet bores you to tears or fills you with dread, then there are some far more user-friendly options out there to help keep track of your money.

We’re talking, of course, about apps and one of the best out there at the moment is Mint. You’ll find it helps you to set a monthly budget, see exactly where your money’s being spent and with a free sign-up, it’s far more satisfying than pouring over that Excel spreadsheet each month.

But yes, despite the more modern approach you are still tracking your finances and this is exactly where you need to start. Give yourself a long-term goal and simply spend the first two or three months getting used to tracking your money so you can figure out some of your spending patterns. You don’t need to change anything at this stage, this is the data gathering part of the process.

Analysis

When you do go back and take a look at where your money goes, you’ll begin to see some patterns emerging. Perhaps you spend the majority of your money at the beginning of the month and, what with your bills leaving at the same time, you’re left with very little spare cash for the last two weeks before payday.

You’ll also see what you’re spending your money on. That latte bought on your way to work every morning has, over three months, mounted up to quite a cost. This kind of analysis is worth going through to help you make some judgements and changes over how you ration your budget.

Finally, you’ll also be able to see all the direct debits and standing orders that are attached to your account. That insurance for a long ago expired laptop that still goes out or the expensive gym membership that never gets used, it’s a good time to make some changes and to see if there are any cancellations that might help you out. It will also give you the opportunity to shift around the dates that direct debits leave your account if that’s going to help you plan a little better.

Prioritise

Once you’ve analysed your spending, it’s time for the action part of the plan to get started. You’ll need to get to the point where you start prioritising. This might mean that you ditch the latte habit completely or set aside a budget for it where that weekly purchase becomes a once or twice a week treat instead.

You might think about dividing your budget up into several pots, including bills, essentials such as food and entertainment, including socialising and of course luxuries such as that latte.

Once you’ve found a natural rhythm for your outgoings, you’ll be in a great position to then add savings to that list.

What to Spend Your Money On

Once your savings are on their way then you’ll be able to think about what you’re saving for. We can’t recommend enough clearing your debts as a first priority. Not only will it free up your money in the long term, it will also help to improve your credit score. If you’ve been asking yourself How can improve my credit score? Then this is the very best way to make those changes.

Get those debts paid down and enjoy greater financial freedom. What you’re saving for is, of course, entirely down to you, as is the amount you’re able to put aside each month. Some experts believe in following the 50/30/20 rule where 20% of your income will go into your savings pot, 50% on the necessities and 30% on discretionary items.

If this works for you and if you have a fixed monthly income, then this can be a great method. Another equally as valid, though slightly more flexible approach is to set up a sweeper account. In this version anything that’s left in your account the day before payday or at a date you specify is swept into your savings account. It allows for those unexpected expenses, like a broken boiler and recognises that some months the savings are going to be minimal while other months there might be a lot more.

However you save and whatever you’re saving for is your choice but your active decision to begin managing money should be applauded. The difference you’ll make to your account with regular saving will seem minimal at first but you’ll be surprised at how quickly that small pot can grow. The sense of satisfaction, not to mention security you’ll feel is worth the effort of getting your accounts in order. Download an app, go through the process and add an extra layer of security to your finances.

Explaining Business To Kids

Owning a business can be confusing at the best of times, it can be overwhelming at times even for adults, so if we are going to raise a generation of incredible business people, who have all the skills they need to hit the ground running, we need to help them understand exactly what business is and how to manage their money effectively. So how exactly do we help small children understand all about business?

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Maths

A lot of children may hear the word business and automatically assume it’s all about the numbers and money, and since a lot of children don’t particularly enjoy maths it can be off-putting, but it’s essential to make sure children are enthusiastic about trying business. Many teens are making money currently from using their entrepreneurial skills already, so there’s nothing to say the smaller children can’t start learning the ropes as well, and as long as they know there are tools like corporation tax calculators to help with the tricky finance moments, then there will be less fear around business and what it entails. 

Roleplay

There’s a little bit more about playing ‘shopkeeper’ than having fun and spending £4675674 on a tomato. It teaches kids the very basics of business, it teaches them some skills surrounding sales, and it boosts their communication skills. The next time the pretend shop comes out why not show them how to put a little bit of savings aside for tax and make sure they know their objection handling skills too! Why not help them type a mini CV while you’re at it? 

Do what you love

Encouraging children to try everything they can and find the thing they love the most is a surefire way to put a child on the right path to success, business usually starts with a love for something or a passion, and often that ‘thing’ can be discovered as a child which saves a lot of time and energy later down the line. Of course, there’s no pressure, let them learn and discover new things at their own pace. But It’s also great fun and confidence-building to try new things out! 

Online Marketing

This is a big one, children must know about advertising and the many forms that it takes in 2019, most Youtube videos children watch these days will be making money for a brand or sponsored one way or another, so it’s great for kids to know what they are viewing may not always be as natural as they think, and that companies make a lot of money from toys sold via videos and adverts. It’s also helpful to show kids how that works in business as well, it gives them an insight into marketing, and depending on their age, it helps with realistic expectations too! 

Whichever way you decide to introduce business and how it works to your kids it’s essential to keep it light and age-appropriate, kids don’t need to know about the ins and outs of every detail in business, but they can certainly show an interest and get a good insight from an early age.

Smart Ways to Make Positive Changes in Your Budget

Looking to be a bit more sensible with your finances? Maybe you’re fed up of running out of money mid month- or perhaps you have a new savings goal that you want to reach. You might want to get out of debt, or even just feel more organised. Whatever your motives are, being organised with money is no bad thing- here are some smart ways you can go about making changes. 

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Switch bill providers

The companies that you pay your bills to are highly competitive, meaning a little shopping around will snag you the best rates. Every year, run some quotes through price comparison sites, and switch to the company which will provide you with the best rates and overall price- it makes no sense to be loyal to the company you’re with as they make their money from their long term customers. While you’re always going to have to pay for things like electricity, broadband and insurances, you shouldn’t be paying over the odds. A few hours just once a year searching for the best providers can save you a decent amount of money overall. 

Meal plan

Food is one area that just about all of us tend to overspend on. We all need to eat, and so it’s something that everyone should be more organised in, once a week, write up a menu for the next few days and then shop to that list. When you get home from work you know what you’re having and always have the ingredients on hand to make it. You don’t end up buying what you don’t need at the supermarket and you reduce your food waste too. Go on sites like Pinterest and write a list of all of the meals you enjoy eating or want to try. Then when you’re building your menu each week, you can pick meals off the list rather than having to think off the top of your head (which can be harder than it sounds!)

Set a budget for extra or luxury spends

We all enjoy our little luxuries- when you work hard it’s these fun extras that make it all seem worth it. Maybe you enjoy going out for meals in nice restaurants, perhaps clothes are your thing or you might just enjoy a night at home every now and again with a glass of wine, a takeaway and a few dollars to flutter at a slots casino. We all have our little enjoyment and luxuries and it’s nice to have them, but just make sure you’re budgeting for them. Your bills, food, travel and other important expenses should be paid first on payday. It’s only then should you treat yourself to any extras, using money that’s leftover. It can be helpful to have a cap or limit on your treat spends, that way you don’t go overboard and can save anything you have afterwards and put it in a savings account. 

Set up extra sources of income

Even if you already have a full time job, it’s a smart move to set up additional streams of income. Blogging, freelancing, even a home business can generate extra cash- this can make your life easier financially, help towards your savings goals or contribute to paying off your debts depending on your situation. If you ever lose your job then you have at least a little something to fall back on while you look for something new, and it generally provides you with a bit more financial security. 

Sell what you no longer use

Most of us have new things coming into our home all the time, so decluttering needs to be an ongoing process. Not only is this good on a practical level (we can sell what we no longer use to raise money and make space for the things we do) but it’s also great for mental health and wellbeing. Being surrounded by clutter, mess and having a house packed to the rafters can create feelings of stress and unease- research even shows that a messy bedroom can cause sleep problems. Go through your cupboards, drawers, wardrobes and other areas of your life and sell anything that’s still good but that you don’t use any more. Put this money into a savings account or spend it on debt- either is a much better use than having it tied up in items that are simply sitting there collecting dust.