Posts Tagged ‘market analysis’

Small Business Market Analysis and Business Plans

October 2, 2015

An executive with currency trading firm BForex, Pablo Soria de Lachica serves as its director of business development and director of new projects. Pablo Soria de Lachica, a master of business administration graduate of Universidad Tecnologica de Mexico, specializes in a number of different industry areas, like market analysis.

Although market analysis is important for businesses of any size, it is especially vital for small businesses, as they often lack the backup capital to sustain themselves if profits are lower than expected after opening. To that end, market analysis should be the foundation of the small business’s plan on which other pillars of its strategy are built.

Any successful marketing analysis includes information on the customer base, area, and main competition. For instance, the customer base will help determine if a business can actually succeed in the location it has chosen, how many potential customers exist, and their purchasing power. When researching its competition, a small business should pursue the goals of identifying the current market saturation and the potential profits it can reasonably expect.

Beyond market analysis, a successful business plan depends on the type of small business it is designed for. In addition to the standard business plan, other types include the startup, which accounts for additional costs and milestones, and the lean plan, which does not include summaries or other similar information and can be quickly adjusted as circumstances require.

The Importance of Market Sentiment: Bear and Bull Markets

April 27, 2015

Pablo Soria de Lachica leads the development of innovative online trading tools as director of business development for Bforex, a currency trading firm with more than a dozen offices spanning the globe, including branches in Uruguay, Brazil, and Mexico. The recipient of several company awards including Best Worker, Best Moderator, and Best Director in the Bforex Latin America division, Pablo Soria de Lachica facilitates the delivery of convenient trade platforms that aid both trade execution and market analysis for both experienced and novice traders.

An understanding of investor sentiment can aid foreign exchange trading activities, allowing traders to detect, or even predict, global investment trends. Traders across various investment sectors often characterize markets as having either a “bull” or “bear” sentiment. Marked by optimism and confidence, a bull sentiment characterizes a market that is experiencing significant momentum and investor optimism. Oftentimes, a bull sentiment occurs due to existing positive trends in a given market. When investors expect the value of currencies or assets to increase or continue to increase, they often react by rushing into a particular investment, generating upward momentum.

In contrast, traders refer to a market as having a bear sentiment during periods of investor pessimism, which is often self-sustaining. As investors predict losses caused by a prevailing bear sentiment, they further bolster negative investor sentiment. Unlike a correction, which is a downward market trend lasting two months or less, a bear market is a long-term trend that poses significantly more risks.