theconstantines

6.26.2013

Top FOREX trading centers

I want to present you the biggest financial Forex trading centers. In spite of the fact that FOREX traders are all over the word, majority of FOREX brokers, banks and funds have centers situated in just some locations.

WHY IS SO IMPORTANT TO KNOW WITCH MARKET IS OPEN?

The biggest volumes determine oftenly strong trends for local currencies. Best example is AUD/USD: it is very active on London sesion, but the major moves it makes on Australian time.
Why is that? During the open hours economic local news is published, price is very sensitive to it because australian financial institutions trade local currency.
This way we could know what are the  moments  for important trends to develope.

TOP 4 FOREX CENTERS

I. Great Britain
Daily volume: 1854 bd $
Market share: 32%
Biggest financial center. England banks trade twice the volume of the one traded by the US financial institutions.
Active currencies: EUR/USD, GBP/USD si USD/CHF. De asemenea, perechi care se misca mult in aceasta perioada sunt AUD/USD, NZD/USD, USD/JPY si USD/CAD.
II. United States of America
Daily volume: 904 bd $
Market share: 16%
On the first 3-4 US trading hours , London banks are still open and that is why we can see the biggest volume and trends.
Active currencies: The main traded currencies are the same as on London session, but USD/CAD and USD/JPY accelerate after New York opens.
III. Japan
Daily volume: 312 bd $
Market share: 9%
While japanese banks are open on forex market two important things are happening:
- EUR/USD and GBP/USD are moving slower because Europe and US are already closed
- asian currencies have a incresing movement, we include here USD/JPY, AUD/USD si NZD/USD.
IV. Singapore
Daily volume: 266 bd $
Market share: 6%
The banks of Singapore are open on the asian session, that is why big trends are developed by the same currencies as the Japanese market, you can also try to trade an exotic pair (USD/SGD), but the spread is wide. 
For the final

You can trade any currency pair you like and feel confortable with, but choose wisely the one that is chepest (low spread and commisions), most active (high volume, safe trend) and take action on your highest efficient time (do not trade when you are enthusiastic or nervous, tired or sleepy)





for suggestions, critics or whatever, I invite you to leave a comment below


6.25.2013

The rich and the poor

A poor person is seen in their words:
  • “I’ll never be rich.”
  • “The rich will not go to heaven.”
  • “I’d rather be happy.”
  • “The government should take care of people.”
The reason many people are poor is because they have a POOR STATE OF MIND. In most cases, more money will not make a poor person rich. In many cases, giving a poor person money keeps them poor longer...often forever.This is also the reason why so many lottery winners are soon broke. The same often holds true for sports stars.

Notice the shift in priorities, values, and words that communicate a middle-class person’s state:
  • “I must get a good education.”
  • “I need a high-paying job.”
  • “I want a nice house in a nice neighborhood.”
  • “Job security is very important.”
  • “How much vacation time do I have?”
People with a middle-class state of mind typically don’t get rich. Many consume more, go deeper in debt to keep up, instead of investing. They buy a bigger house, take nice vacations, drive expensive cars, and spend money on higher education.
Since most people buy on credit, they often find themselves getting deeper in debt—bad debt, consumer debt—rather than getting richer.
When they hear, “There is good debt and bad debt,” they are blocked. All they know is bad debt, debt that makes them poorer. Most cannot grasp the idea of good debt, the kind of debt that can make them richer.
For many of these people, it is best that they simply follow the advice of “Cut up your credit cards and get completely out of debt.” When it comes to investing, most middle-class people have the belief that “investing is risky.” That is because most invest in traditional education for college degrees, but fail to invest in financial education.

Statements that reflect a rich person might include:
  • “I must be rich.”
  • “I own my own business, and my work is my life.”
  • “Freedom is more important than security.”
  • “I take on challenges so I can learn more.”
  • “I want to find out how far I can go in life.”
When a middle-class person puts their savings or retirement fund into a bank, the banker lends that money to the capitalist. 

Today, ask yourself, what is my state of mind? Am I happy with it? Or do I want it to change? If you want to be rich, you must have a rich person’s state of mind. And that starts with learning what the rich know about money— their financial education.

OPT THE OPT USE OPM
Optimize Other People’s Talents Using Other People’s Money...GET RICH

KYOSAKY TRIBUTE

We may soon once again be in recession even if QE continues

In order for an economy to grow, one or more of the following things must happen: the workforce must expand, earnings must increase or credit must grow. That is because, ultimately, the size of every economy is determined by the size of the population and by how much the people spend. The problem with the US economy is that none of these things is increasing enough to generate a satisfactory rate of growth. Worse still, there is little reason to believe this is going to change within the foreseeable future.

The growth rate of the US workforce has slowed sharply in recent decades and is now barely growing at all.

Meanwhile, globalization has put extreme downward pressure on US wages. Real median income was the same in 2010 as it was in 1989. With the size of the workforce slowing and median income not growing at all, the rate of growth in real disposable income has naturally been slowing as well.
From 1980 to 2007, total credit as a percentage of GDP expanded sharply. The rapid expansion of credit contributed enormously to the economic growth during recent decades. In fact, credit growth was the driver of economic growth. Even still, the credit boom was not enough to sustain the rate of economic growth. Then, in 2008, even credit ceased to expand. That occurred because the private sector simply could not bear any more debt and began to default on the debts already incurred, median income is actually falling. 

The Fed is desperately trying to make credit expand again by printing money and pushing up the value of property and stocks. Higher asset values create more collateral, which should allow more borrowing.
Asset prices have indeed begun to rise. Credit, however, is still not expanding enough to make the economy pick up. Household sector debt is still contracting and now the rate of growth of government debt is set to slow sharply due to sequestration and the recent tax increases.

Looking ahead, with almost all the recent economic data coming in weak, the Fed must feel that it has little choice but to continue printing money in order to drive property and stock prices higher, in the hope of causing credit growth to revive. Recently, the market has begun to speculate about when the Fed will begin to “taper off” the amount of money it prints each month. That speculation looks premature. 

QUANTITATIVE EASING IS THE ONLY THING KEEPING THE ECONOMY AFLOAT.

P.S. If the Fed does significantly reduce QE any time soon, a new recession would almost inevitably result. In fact, we may soon once again be in recession even if QE continues.

Financial markets

What you have to learn is TO NOT FALL IN LOVE WITH THE MARKET. The market is an easy woman who doesn't sleep in the same bed every night... the market doesn't sleep at all.

Biggest financial bubble is about to blow

It must have happened and now it is starting. The biggest speculative bubble in history is starting to deflate, and the next months the trend could accelerate and a collapse would occur. Any financial active on planet will be affected. 

The monetary policy adopted by the Federal Reserve, European Central Bank and other powerful central banks (Japan, Switzerland) pushed prices of financial active to a historical highs…this will end up bad.


Results: hyperinflation and collapse of some economic sectors
Stockmarket – trend inversal

United States Utility index…12% down on the last two weeks, biggest decline of last four year
Japanese Stock Market…18% down on the last two weeks,
Worldwide Stock Exchange…negative trend



Bond market – higher interest


Most liquid bonds (Japanese and American) biggest decline of the last years
Lower the bond, bigger the interest;
Credit very expensive or inaccessible



Forex market – illiquidity


AUD… 10% down…lower demand of commodities and row materials
JPY... decline … investors running
USD… three years top… dollar safe heaven, global panic
.



There are powerful signals that stock and bond markets ignore risk. Investors are looking for higher return rate on extreme levels. Putting all together, we see a big bubble and as always it separate the rich from the ordinary people, money do not disappear, money run away from the last buyers to the last sellers

How to exchange an old car of 10.000$ to new one valuing 25.000$





You Should Detail Your Old Car Before You Buy a New One


        The automobile producers and dealers were affected by the last world crisis and I considered it was a good opportunity to buy a car. I sell my old BMW on a discounted price (from 11.000$ to 10.000$, loosing 1.000$) and I bought a new one at 20.0000$ discounted from 25.000$ (high supply). Also on the lack of demand on credit, the bank lend me 20.000$ at a very low cost (about 1% per year), the circle was completed by a low risk investment with just a 2% interest per year.

cash flow looks like:
ASSETS: 10.000$ (investments)                    INCOME: 2.000$ (return on investment - 2%)
LIABILITIES: 20.000$                                      EXPENSES: 2.000$ (car payment - 1%)
                        ---------------------------                              -------------------------------------
                                                                                        zero dollar to pay

It is like magic how to exchange for free an old car to a new one

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