Forex Lessons for 2016

by Kaylie Phelps

As the new year is now upon us, many Forex traders are looking back and appreciating the lessons learned during 2015. This is critical for anyone who hopes to take advantage of the most liquid marketplace in the world. Failing to take such lessons to heart will inevitably result in stagnation and falling profits. Let us therefore take a quick look at some of the enlightenment that 2015 has provided and how such information can be applied during the coming 12 commercial water slide

Failing to Watch the News

Some traders became caught up in what is known in some circles as the “do-or-die” syndrome. To put it another way, watching the charts and the relationship between two currency pairs alone took precedent over a more well-rounded approach. Keeping up to date with the latest news at it occurs has always been one of the defining principles behind any successful Forex trader. As opposed to having to browse disparate news and information portals, CMC Markets has provided a centralised feed which can be paired directly with one’s live trading platform. This will enable even the novice trader to make on-the-fly decisions when they are critical.

A Lack of Familiarisation

This next mistake is quite common during any year. New investors are very eager to reap the potential rewards that the Forex markets have in store. As such positions seem “just around the corner”, this attitude supersedes the principle that a learning curve is always present. One can never take advantage of opportunities that he or she is unaware of. Whether you are a full-time trader or put in a few hours after a day of work, the fact of the matter is that understanding market movements and the impact of numerous variables is essential to make the correct decisions when the time comes. This lesson should never be overlooked.

Keep an Eye on the China and Middle East

The past two lessons were centred around theory. This next observation has some undeniable real-world applications. It is a known fact that regional instability can have a marked impact upon currencies within a short period of time. It can be rightfully argued that two locations which represented the largest of such impacts in 2015 were China and the Middle East. The former is due to such a burgeoning economy and the latter is more associated with the potential for oil disruption and the possibility of regional conflict. These very same locations should be monitored closely. Just as they had a very real influence on Forex trading during 2015, the same notion will hold true for the coming year.

The Myth of the Perfect Trade

There have been countless newcomers who have failed to capitalise on a position because they were awaiting the vaunted “perfect trade”. There is simply no such concept in the real world. Every trade is associated with a certain degree of risk. The key is to appreciate how much risk is present and if this level is acceptable depending upon one’s current financial position. As opposed to missing out on an opportunity, one needs to appreciate that profit is always associated with the occasional loss. Without losses, one would never learn new strategies. In the simplest terms, take the good with the (occasional) bad.

We have already seen a great deal of volatility on the open markets and this has equally translated into the Forex sector. However, informed investors will thrive on such movements. With the use of efficient trading portals such as CMC Markets, 2016 could very well be a year to remember.


How to Prepare Your Parents for End of Life Finances

by Mrs Money

Preparing for your death is never a nice topic. Many people avoid it exactly for that reason. And that’s where financial problems happen due to unexpected bills and a failure to prepare for what happens after death. You can prepare your parents, though. Here are some of the aspects you need to address when it comes to end of life finances.

Write a Will

If you haven’t already, you should have them write a will. This is crucial for ensuring all the family assets are divided up appropriately. It creates a whole trunk of legal complications if this doesn’t happen in the beginning. It can take many months to sort the problem out.

Here’s what will happen if you don’t have this crucial contract drawn up. Legally, the state takes over where a will doesn’t exist. At this point, the problem is on you to prove that you are the desired person to inherit. You will have to attend probate court and the process can take about a year to sort out.

This is assuming you don’t have any siblings or relatives who also want to lay claim. It can easily cost you thousands and lead to the process lasting years. Before they know it, squabbling relatives have drained the entire estate due to legal costs. Imagine if this problem could be avoided simply by having a will in place. You don’t even need an attorney to draw one up, although this is recommended.

Power of Attorney

Power of attorney can have huge financial implications. If one or both of your parents become legally incapable of making decisions, the power of attorney will state who makes the decisions on their behalf. This applies to both medical care and financial issues. Get the power of attorney issue in writing from the very beginning.

Burial Insurance

You must have some sort of coverage for funeral expenses. These days, it can cost a few thousand dollars for both a funeral and burial. If you don’t have any cover, this must come out of the estate of the family, or the next of kin is responsible for paying. It’s always better to have a comprehensive burial insurance policy setup to ensure you don’t lose a big chunk of your inheritance.

Your Investments

Contrary to popular belief, many investments don’t pass out of your hands and into oblivion when you die. They can be passed to the next of kin, assuming proper instructions have been setup. There are only certain investments that can’t be passed on, but they don’t include things like stocks and shares. Get a full idea of what you parents own before they pass on.

A Difficult Task

It’s perfectly understandable why this may be a conversation you wish to avoid with aging parents. Sooner or later it has to be discussed because otherwise you’ll suffer the consequences of unexpected bills and the state taking over your family assets. The earlier you can address these issues the easier it will be to manage.

Related Posts Plugin for WordPress, Blogger...facebooktwitterrssfacebooktwitterrss
  • Archives

  • Find Us on Facebook!

  • Categories