How To Profit From The Falling Dollar
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Another reason for great opportunity in this market as the dollar weakens is because as of right now over 90 percent of all currency transactions involve the U.S. dollar. This means that as the dollar crashes the cross pairs will get stronger and will trend longer. This makes for a great opportunity when it comes to investing. Prior to September 11, 2001 the U.S. dollar was considered the worlds’ safe haven currency. Prior to 9/11 the risk of severe instability in the U.S. dollar was very low and the U.S. was one of the most stable and developed economies in the world. This allowed the U.S. to attract investment at a discounted rate of return. This offering resulted in over 76 percent of global currency reserves being held in dollars. Another major reason why currency reserves are largely held in dollars is the fact that the dollar is the world’s dominant factoring currency. Due to the dollar’s stability pre-9/11 it played a major role for foreign central banks. However, in the years since 9/11 the same foreign investors and central banks that had heavily invested in the dollar have now trimmed off a large portion of their holdings. Now, many of the investors are diversifying into the new major player on the scene, the euro. Numerous central banks have already begun this diversification process into euros by reducing their dollar holdings and increasing their euro holdings. If this trend continues it will become a major determinant for the future of the U.S. dollar.
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About the Book
Have you ever wondered if the U.S. economy and dollar is in trouble? Would you like to profit off a few simple economic truths? How to Profit from the Falling Dollar examines the China factor, current government spending habits, trade deficits, the baby boomer’s retirement effects on the economy and other important factors. More important than the overwhelming evidence that the dollar will weaken in the coming years is the opportunity to profit from these global emerging trends. Filled with facts and sound advice, How to Profit from the Falling Dollar offers an insider's view on how to easily take advantage of the coming drop of the U.S. dollar and how to protect yourself while there’s still time. Cecil Robles is a professional alternative money manager and has trained over 1,000 students on how to invest in the currency markets. Mr. Robles is a frequent guest on national radio and television programs.
About the Author
Forex Investments LLP believes in capital preservation first and profits second. Mr. Robles’ fundamental approach to the spot foreign currency market is to be risk averse. Capital preservation is much more important to portfolio growth than capturing every possible opportunity that presents itself. Mr. Robles has designed a trading system to recognize conditions wherein the underlying market is in a state of accumulation or distribution of one currency relative to another. Once the market direction has been determined, trades are placed based on price relationship to support and resistance levels and the probability that the trend will continue. The system relies on modifications to existing technical indicators such as MACD and Stochastics, the development of proprietary indicators, and the use of technical pivot points and support/resistance levels. Through a correlation of these variables, Mr. Robles has developed a system where these trends can be identified and exploited. The entry and exit signals are evaluated against the macro analysis and examination of the overall market. The combination of a statistical signal and a subjective review results in a system which is not black box, but discretionary. Risk management and trade discipline are the cornerstones of Forex Investments’ trading philosophy. Adhering to strict risk management guidelines and applying a disciplined approach to the trading system is always applied. The use of hedging is one of Mr. Robles best approaches for doing this. Mr. Robles also performs fundamental analysis by looking at the economic conditions that affect the valuation of a nation’s currency relative to other currencies. The trading program has a hedging strategy to counter any catastrophic events. The trading plan is continuously monitored, re-tested, and examined to determine whether or not it continues to be relevant to changing macro market conditions.