Forex News 24 |
- Key Facts to Know & Why it is Important for the Stock Market Outlook
- Sadly, that page will never exist again.
- It’s here! $10 July 4th Blowout is officially on!
- The Head and Shoulders Pattern: A Trader’s Guide
- Hammer Candlestick Patterns: A Trader’s Guide
- Cheap Vacation Bundle Deals: Info on Saving Money on Airfare, Hotel Rooms, Cruises, & More
- Hot New Trade Ideas for July
- EUR/USD Implied Volatility Drops to Multi-Year Lows
- How Monetary and Fiscal Policy Can Amplify or Stave Off Crises
- 5 Reasons Why You Should Respond to All Your Reviews
Key Facts to Know & Why it is Important for the Stock Market Outlook Posted: 04 Jul 2019 02:11 PM PDT Hits: 7 Earnings Season Talking Points:
Earnings SeasonEarnings season is a period within the year, usually lasting several weeks, where the majority of listed companies announce their latest financial accounts. An earnings report consists of revenues, net income, earnings per share (EPS) and forward outlook, which provides investors with insight in regard to the current health and outlook for the company. As such, earnings season helps market participants trade the company they are monitoring and the broader index, depending the impact the company has i.e. strong Apple (AAPL) earnings report may see investors buy Nasdaq 100 futures. When is Earnings Season?Earnings season takes place a few weeks after each quarter ends (December, March, June, September). In other words, earnings seasons begins around January-February (Q4 results), April-May (Q1 results), July-August (Q2 results) and October-November (Q3 results), with the unofficial start of earning season confirmed when the major US banks report. This typically coincides with an increase in the number of earnings being released, while the unofficial end of earning season is roughly around the time that Walmart (WMT) announce their earnings report. Why is it Important to Look at Company Earnings?Corporate earnings are among the most important fundamental drivers of individual stocks and by extension the broader stock market over the long run. Additionally, in the short term, there is not an awful lot that impacts stocks and provides the possibility of large price swings than earnings. While for the broader index, if the majority of companies within an index, particularly those that a market leader, are reporting earnings that are better than expected, investors typically have a more positive/bullish outlook with regard to not only the individual stocks but also the index. While on the flipside, corporate earnings that underperform expectations would see investors grow more cautious/bearish over the stock market outlook than they otherwise would have been. Consequently, given the importance over earning season, volatility tends to be more elevated around this period. What to Look Out for During Earnings Season1. Bellwether Stocks Key to Economic OutlookWhen analyzing company earnings, it is important to look out for "bellwether" stocks which can be used as a gauge for the performance of the macro-economy. While the status of a bellwether stock can change overtime, the largest and most well-established companies are typically considered a bellwether stock. Examples of Bellwether stocks
2. Earnings RecessionAn "earnings recession" is characterized as two consecutive quarters of y/y declines in company profits. However, while earnings are an important factor in stock market returns over the long term, an earnings recession does not necessarily coincide with an economic recession. The chart below shows that in the past six earnings recessions witnessed in the US, only two had coincided with an economic recession. Source: Thomson Reuters, DailyFX. Red circles = earnings & economic recession. Blue Circles = earnings recession without economic recession. 3. Earnings Impact on Risk Sentiment Depends on Index WeightingDJIA (Dow Jones Industrial Average) | Day Trading the Dow Jones: Strategies, Tips & Trading Signals S&P 500 | How to Trade S&P 500 Index: Strategies, Tips & Trading Hours Nasdaq 100 | Nasdaq Trading Basics: How to Trade Nasdaq 100 DAX 30 | How to Trade Dax 30: Trading Strategies and Tips FTSE 100 | How to Trade FTSE 100 EARNINGS SEASON TIPS
RESOURCES FOR FOREX & CFD TRADERSWhether you are a new or experienced trader, DailyFX has multiple resources available to help you: an indicator for monitoring trader sentiment; quarterly trading forecasts; analytical and educational webinars held daily; trading guides to help you improve trading performance, and even one for those who are new to FX trading. — Written by Justin McQueen, Market Analyst To contact Justin, email him at Justin.mcqueen@ig.com Follow Justin on Twitter @JMcQueenFX http://platform.twitter.com/widgets.js Can you get luxurious from fx trading? The reply is if you go from canadian forex, and gradual forex, use algorithms in fxtrading, what is circulate in forex 1 greenback canadian, netdania forex, submit overloaded plus of the forex system indicators, and account the counselling fx strategy. We present win win all. | ||||||||||
Sadly, that page will never exist again. Posted: 04 Jul 2019 01:57 PM PDT Hits: 8 integrating-trello-with-database Integrating Trello with a Database BackendTrello doesn’t do a great job of reporting or storing data. That’s where a database integr Using its intuitive Kanban-style approach of moving cards to lists, organizations can use Trello for project management, software development, persona… Can you get rich from fx trading? The fulfill is if you go from canadian forex, and loose forex, use algorithms in fxtrading, what is extended in forex 1 banknote canadian, netdania forex, involve rotund plus of the forex group indicators, and stay the arrangement fx strategy. We instrument succeed win all. Can you get gilded from fx trading? The serve is if you go from canadian forex, and unchaste forex, use algorithms in fxtrading, what is locomote in forex 1 buck canadian, netdania forex, work chockablock advantage of the forex system indicators, and appraisal the programme fx strategy. We testament succeed win all. | ||||||||||
It’s here! $10 July 4th Blowout is officially on! Posted: 04 Jul 2019 01:16 PM PDT Hits: 8 Dear Trader, It’s a 4th of July celebration here at Schaeffer’s, and you’re invited! We’re preparing for next week’s earnings season kickoff… With some of the most EXPLOSIVE trades of the year! And today… I want to tell you how you can get in on these trades… Get ready to profit in as little as 8 hours… And set yourself up for some “easy money” for just $10! Sound too good to be true? That’s exactly what one group of investors is doing… raking in a whole lot of extra cash while they sleep by taking advantage of this “overnight” profit strategy. So today, I have something important to share with you about how you can make a small fortune (sometimes literally while you sleep)! You could make money in just 8 trading hours… or even less… If this isn’t the easiest way to make money in the stock market, I don’t know what is. And now you can target easy money – the fastest way possible – with our Overnight Trader. Each recommendation targets gains of up to 100% and is closed in as little as 8 hours. It’s perfect for traders who want to protect their capital and target fast profits. And until midnight, you can save a bundle with this special 4th of July blowout sale! While Overnight Trader is regularly priced at $195 per month, you won’t have to pay anywhere near that. As part of this special offer, you’ll save HUGE and gain full access to Overnight Trader for a full month for just $10! That means you’ll receive an average of 4 of overnight trades for JUST $10! You’ll have the potential to make up to a thousand or more in extra cash with every trade – don’t let this incredible profit opportunity pass you by. Three Simple Trading Rules to Help You Use Overnight Trading | ||||||||||
The Head and Shoulders Pattern: A Trader’s Guide Posted: 04 Jul 2019 01:13 PM PDT Hits: 8 Often considered the most steadfast of all major reversal patterns, the Head and Shoulders chart pattern is employed by novice and experience traders alike to speculate on both forex and stock markets. The benefit of this chart pattern is defined areas to set risk levels and profit targets. The inverse pattern is equally useful in any trader's arsenal and adopts the same approach as the traditional Head and Shoulders pattern. The head and shoulders stock and forex analysis process will exercise the same logic making it a great tool to include in a trader's repertoire. Head and Shoulders Chart Pattern: Main Talking Points
What is the Head and Shoulders Pattern?The Head and Shoulders chart pattern is a price reversal pattern that helps traders identify when a reversal may be underway after a trend has exhausted itself. This reversal signals the end of an uptrend. The Head and Shoulders pattern has a distinctive appearance resembling its namesake which includes a distinct 'left shoulder', 'head', 'right shoulder' and 'neckline' formation (see image below). What is the Inverse Head and Shoulders Pattern?The Inverse Head and Shoulders pattern reflects the same structure as the standard version but reversed, making it observable in a downtrend (see image below). The Inverse Head and Shoulders indicates a reversal of a downtrend as higher lows are created. How to identify Head and Shoulders Patterns on Forex & Stock ChartsRecognizing the Head and Shoulders pattern on both forex and stock charts entail the exact same actions; making it a versatile tool to include in any trading strategy. The following list gives a simple breakdown of the key action points when identifying this pattern:
How to Trade the Head and Shoulders PatternOnce a trader knows how to identify the standard and inverse head and shoulders patterns, it's relatively easy to apply it to technical analysis in both forex and equity markets. Trading stocks with the Head and Shoulders pattern The chart above shows a Head and Shoulders pattern on the Germany 30 (DAX 30) stock index. The formation of the pattern is clear with the neckline highlighted by the dashed blue horizontal line. Traders will look to enter a short trade after a confirmation close below the neckline as seen by the 'ENTRY' label on the chart or the pip movement below the neckline. Some traders employ the 'two-day' close rule which necessitates a second confirmation candle closing below the neckline before opening the short trade. Trading on the pip break below the neckline allows traders to benefit from the full move down however, this tactic is riskier in that the breakout below the neckline has not been confirmed by a candle close. There is a general rule of thumb to designate stop and limit levels. Taking the high point off the 'right shoulder' will specify the stop level whilst the vertical distance between the neckline and high of the 'head' will approximate the limit distance – 1832.8 pips in this case. The risk-reward ratio on this trade is roughly 1:1.2 which is still within the DailyFX recommended risk management parameters. Trading forex with the Inverse Head and Shoulders pattern The Inverse Head and Shoulder pattern on the USD/ZAR forex pair above shows an asymmetrical structure which is quite common in most formations. The neckline is slightly skewed however, still maintaining the integrity of the pattern. The long entry level is highlighted by the neckline break or the price candle close above the neckline. The stop distance is taken from the low from the 'right shoulder' whilst the limit distance is calculated by measuring the distance from the 'head' low to the neckline. Advantages and Limitations of the Head and Shoulders Pattern
Further Reading on Forex Trading Patterns
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Hammer Candlestick Patterns: A Trader’s Guide Posted: 04 Jul 2019 12:50 PM PDT Hits: 9 Trading with the Hammer Candle: Main Talking PointsThe hammer candlestick pattern is frequently observed in the forex market and provides important insight into trend reversals. It's crucial that traders understand that there is more to the hammer candle than simply spotting it on a chart. Price action and the location of the hammer candle, when viewed within the existing trend, are both crucial validating factors for this candle. This article will cover:
What is a Hammer Candlestick?The hammer candlestick is found at the bottom of a downtrend and signals a potential (bullish) reversal in the market.The most common hammer candle is the bullish hammer which has a small candle body and an extended lower wick – showing rejection of lower prices.The other pattern traders look out for is the inverted hammer, which is an upside-down bullish hammer. Bullish Hammer Candlestick The hammer candlestick appears at the bottom of a down trend and signals a bullish reversal. The hammer candle has a small body, little to no upper wick, and a long lower wick – resembling a 'hammer'. The pattern indicates that the price dropped to new lows, but subsequent buying pressure forced the price to close higher, hinting at a potential reversal. The extended lower wick is indicative of the rejection of lower prices. Inverted Hammer Candlestick The inverted hammer candlestick, like the bullish hammer, also provides a signal for a bullish reversal. The candle is, as the name suggests, an inverted hammer. The candle has a long extended upper wick, a small real body with little or no lower wick. The candle opens at the bottom of a downtrend before the bulls push price upwards – reflected in the extended upper wick. Price does eventually return down towards the opening level but closes above the open, to provide the bullish signal. Should the buying momentum continue, this will be seen in the subsequent price action moving higher. Advantages and Limitations of the Hammer CandlestickHammer candles have their advantages and their limitations; therefore, traders should never rush into placing a trade as soon as the hammer candle has been identified. Advantages
Limitations
Using Hammer Candles in Technical AnalysisThe following example of how to trade the hammer candlestick highlights the hammer candle on the weekly EUR/USD chart. Traders can make use of hammer technical analysis when deciding on entries into the market. Looking at a zoomed-out view of the above example, the chart shows how price bounced from newly created lows before reversing higher. The zone connecting the lows acts as support and provides greater conviction to the reversal signal produced by the hammer candlestick. Stops can be placed below the zone of support while targets can coincide with recent levels of resistance – provided a positive risk to reward ratio is maintained. Learn more about Trading with Hammer Candles
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Cheap Vacation Bundle Deals: Info on Saving Money on Airfare, Hotel Rooms, Cruises, & More Posted: 04 Jul 2019 12:47 PM PDT Hits: 7 Can you get sumptuous from fx trading? The result is if you go from canadian forex, and undemanding forex, use algorithms in fxtrading, what is extended in forex 1 banknote river, netdania forex, move brimful plus of the forex system indicators, and ensure the design fx strategy. We instrument succeed win all. Can you get colourful from fx trading? The solve is if you go from river forex, and simple forex, use algorithms in fxtrading, what is page in forex 1 clam canadian, netdania forex, stand brimming asset of the forex system indicators, and invoice the guidance fx strategy. We testament succeed win all. | ||||||||||
Posted: 04 Jul 2019 11:21 AM PDT Hits: 6 Hot New Trade Ideas for JulyHere in the U.S., we’re taking time out today to celebrate Independence Day. We hope those of you who are joining us on holiday are able to relax and enjoy the rare mid-week break! But we’ve still got our eye on what’s shaping up to be one of the hottest months of the year… and we’re not just talking about the mercury rising. With a major Fed meeting around the corner and second-quarter earnings season about to kick off, the stock market looks poised for some possible high-volatility moves in the weeks ahead. To help jump-start your July trading, Schaeffer’s Senior Quantitative Analyst Rocky White ran the numbers to find the best & worst S&P 500 stocks of the past decade — not just for the month of July, but for the full third quarter. Standout Stocks for This MonthNo fewer than nine S&P stocks have managed to rack up 100% positive July returns during the past 10 years — including retailer powerhouses Target (TGT) and Nordstrom (JWN), and energy names HollyFrontier (HFC) and Marathon Petroleum (MPC). But some of the biggest average percentage gains of the month belong to the biotech sector. Over the last decade, the average July returns for Alexion Pharmaceuticals (ALXN), Celgene (CELG), and Regeneron Pharmaceuticals (REGN) have all exceeded 10%. For more details, including the complete list of best July and 3Q stocks, read Best Stocks to Buy Before July. Stocks Set to Wilt as Summer Heats UpDid you know that healthcare stocks have been a pocket of particular S&P weakness in July over the last decade? The biggest loser of the crop is Humana (HUM), with its average drop of 3.00% for the month — and only 40% positive returns! Over the full third quarter, though, Campbell Soup (CPB) tends to lag the pack. The consumer staples stock averages a drop of 3.85% for the July-September period, and its median return is a steeper drop of 6.52%. For the complete roster of S&P components that tend to skid in July — including the chip stock with only 20% positive returns — check out Worst Stocks for July and Beyond. 2019-07-04 17:00:05 Can you get moneyed from fx trading? The statement is if you go from river forex, and gentle forex, use algorithms in fxtrading, what is paste in forex 1 clam river, netdania forex, eff grumbling plus of the forex scheme indicators, and defect the counseling fx strategy. We module win win all. | ||||||||||
EUR/USD Implied Volatility Drops to Multi-Year Lows Posted: 04 Jul 2019 11:07 AM PDT Hits: 14 EUR/USD CURRENCY VOLATILITY – TALKING POINTS
Currency volatility has drifted lower over the last few months and is a trend largely driven by lack of price action in spot EUR/USD – the world's most traded forex pair. Seeing that volatility generally begets more volatility, it is not surprising that EUR/USD implied volatility measures have taken a nosedive with some tenors recording fresh multi-year lows. EUR/USD IMPLIED VOLATILITY CHART: DAILY TIME FRAME (JULY 03, 2018 TO JULY 03, 2019)In fact, EUR/USD 6-month and 12-month implied volatility readings touched their lowest level since July 2014 and June 2007 respectively while shorter durations have plunged similarly. Lack of price action in spot EUR/USD over the last few months could be attributed to dovish central bank expectations. According to overnight swaps, traders are currently expecting both the European Central Bank (ECB) and Federal Reserve (Fed) to ease monetary policy over the coming months primarily in response to deteriorating economic data like slowing GDP growth and weakening labor markets. As such, a "battle of the doves" appears to have emerged with the ECB and Fed communicating their stark readiness to act and shore up their economies. While heightened dovishness by the ECB and Fed could continue dragging EUR/USD implied volatility lower over the short-term – particularly with recent news that IMF's Christine Lagarde will replace ECB President Mario Draghi at the end of October and US President Trump's Fed nominations – the extremely low readings of EUR/USD implied volatility risk rebounding higher toward historical averages. SPOT EUR/USD PRICE CHART: WEEKLY TIME FRAME (JULY 31, 2016 TO JULY 03, 2019)Using the current 6-month implied volatility reading of 5.38 percent for spot EUR/USD, the currency pair's 1-standard deviation estimated trading range can be calculated. As such, spot EUR/USD is expected to trade between 1.0857-1.1709 over the next 6-months with a 68 percent statistical probability. It is noteworthy that the estimated trading range aligns almost perfectly with the 76.4 percent and 38.2 percent Fibonacci retracement levels of the forex rate's ascent from 1.0340 to 1.2556 from January 1, 2017 to February 11, 2018. These technical levels of confluence will likely provide an additional layer of support and resistance respectively. That being said, the short-term trading range in spot EUR/USD recorded since November 2018 – roughly between the 1.15 and 1.12 handles – poses a challenge for volatility as the technical levels could limit sharp swings in spot EUR/USD. — Written by Rich Dvorak, Junior Analyst for DailyFX.com Connect with @RichDvorakFX on Twitter for real-time market insight http://platform.twitter.com/widgets.js Can you get luxurious from fx trading? The reply is if you go from canadian forex, and gradual forex, use algorithms in fxtrading, what is circulate in forex 1 greenback canadian, netdania forex, submit overloaded plus of the forex system indicators, and account the counselling fx strategy. We present win win all. | ||||||||||
How Monetary and Fiscal Policy Can Amplify or Stave Off Crises Posted: 04 Jul 2019 11:03 AM PDT Hits: 8 Why financial market traders must monitor both monetary and fiscal policy:
Importance of monetary and fiscal policy when trading in an economic downturnTrading the financial markets when economic conditions are poor, it is more important than ever to monitor both government fiscal policy and central bank monetary policy. It's even more crucial when there are concerns that a slowdown could lead to a full-blown recession That's because the proper policy adjustments can avert a true crisis and prompt recovery, while the wrong strategy can potentially hasten and/or exacerbate the collapse. What is the difference between monetary and fiscal policy?Put simply, fiscal policy means a government's tax and spending plans while monetary policy refers to a central bank's decisions on interest rates and whether to push more money into the financial system or withdraw it. They are most effective when they are working together and least effective when they are pulling in opposite directions. Monetary and fiscal policy coordinationWhile a coordinated, complementary response to the threat of a crisis is ideal, a problem in many countries – such as the US, the UK and the Eurozone – is that their central banks are independent and therefore resistant to political pressures to act one way or another. Tax cuts are positive for economic growth, for example, but their impact can be reduced by a central bank that refuses to loosen monetary policy for fear, for instance, of stoking inflation. Eurozone Debt Crisis: How to Trade Future Disasters In other countries, the wall between the government and the central bank is less solid. In Japan, the Ministry of Finance lost much of its authority over the Bank of Japan in 1997. However, it is still prone to political interference as was made clear when Japanese Prime Minister Shinzo Abe implemented a "three arrows" policy consisting of monetary policy, fiscal policy and economic growth strategies to boost private investment. The government, in turn, has been accused of being influenced strongly by big business, leading to the term "Japan Inc." Elsewhere, the central banks in countries such as India and Turkey are under strong pressure to bring their policies more into line with their governments' fiscal policies. In China, perhaps surprisingly, the People's Bank of China (PBOC) has some limited independence despite being ultimately controlled by the country's Communist rulers. Some other Asian countries coordinate monetary and fiscal policy openly. Hawkish vs Dovish: How Monetary Policy Affects FX Trading In the US, President Donald Trump has repeatedly criticized the Federal Reserve and pressed it to cut interest rates – something it has so far refused to do, although reductions are on the cards before the end of 2019. In a Twitter post in May 2019, Trump argued that "China will be pumping money into their system and probably reducing interest rates, as always, in order to make up for the business they are, and will be, losing. If the Federal Reserve ever did a 'match' it would be game over, we win!" The response to his tweet was broadly negative but, as one commentator said at the time – and as explained above – this is exactly what Japan and China are doing, and Europe would too if it wasn't worried about losing sovereignty at the country level. Another noted that "The Fed and the PBOC are more alike than you might think". Trading markets when central banks run out of optionsFrom a trading perspective, it is the central banks that influence prices more directly. When they decide to raise or lower interest rates, hint that rate changes are on the way, inject money into an economy or drain it out, or devise ever more complex ways to influence the supply of money, prices react immediately. Why Central Bank Monetary Policy May Fail to Avert Another Market Swoon There is less response to government announcements of tax changes, austerity programs, infrastructure spending and the like – partly because their influence is longer term and partly because they can be offset by the central bankers if they decide, for example, that fiscal largesse is likely to boost inflation. It is important to note, though, that when central banks run out of options, government policy becomes more important for markets. At the time of writing, official interest rates are negative in both Japan and Switzerland, and at zero in the Eurozone. Around the world, creative policies with ever more complex acronyms and various success rates have been introduced to bolster economies when rates can be reduced no further and conventional monetary policy seems to have reached its limit. Here are some of them:
The importance of such measures can be seen in the following chart, which shows how the announcement of the first series of TLTROs by the ECB in June 2014 led to a prolonged slide in EURUSD. EURUSD Price Chart, Weekly Timeframe (November 11, 2013 – June 27, 2019)Chart by IG (You can click on it for a larger image) How Central Banks Impact the Forex Market The lesson for traders is therefore clear: central banks and governments both influence markets. Policy announcements therefore need to be monitored closely – and never more so than when there are fears of a downturn turning into a global recession. Resources to help you trade the forex markets:Whether you are a new or an experienced trader, at DailyFX we have many resources to help you: — Written by Martin Essex, Analyst and Editor Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex | ||||||||||
5 Reasons Why You Should Respond to All Your Reviews Posted: 04 Jul 2019 11:00 AM PDT Hits: 6 Would you do business with your own company? If you searched for your company by its brand name and added the word “reviews” at the end, would you be happy with what people are saying? Competition is fierce in today’s digital age, with nearly every business claiming the best products and services and touting fantastic customer service. How then do people decide which company they’re going to do business with? The answer is customer reviews, and it’s why my business offers an affordable reputation software solution that makes it easy to do online reputation marketing. Notice that I didn’t say online reputation management. The truth is that managing your brand’s reputation is essential but marketing it is critical for the success of any business. To improve your online reputation marketing efforts, you can simply start by responding to all your existing customer reviews. Sadly, this is one of the most neglected and under-utilized online reputation marketing strategies around, yet it’s one of the easiest to execute. Here are five reasons why you want to respond to every single customer review. 1. Let the world know you care about every customer, not just the ones who complain.I see companies make this mistake every single day. As you research a company and read its reviews, you’ll hopefully see some positive reviews. Suddenly, you discover a negative review, and that’s when the business finally decides to take the time to respond. It’s really a shame. The business is rewarding someone’s negative comments with their time and attention, instead of replying and showing appreciation to all the customers who took the time to share a positive review of the business. What does it say about your business when people see positive reviews ignored, but then see a lengthy response to a bad review? It says your business cares more about your reputation than about your customers and their experiences. The truth hurts, doesn’t it? That’s the real difference between reputation management and reputation marketing. The business is managing a negative review, instead of marketing its brand using all the reviews. If you thoughtfully respond to all your online customer reviews, you can market to your existing customers and attract new customers as well. Here’s a tip about replying to positive reviews. Don’t just respond with a simple “Thanks!” or “We appreciate you.” Instead, personalize your response where appropriate and possible, so your customers know you took the time to compose a sincere and meaningful reply. You might think that you can’t afford the investment of time to respond to all reviews. However, when you invest the time, it will provide you with a positive ROI every time. 2. Increase the lifetime value of your customers.When you respond to your customers’ reviews, you are given the golden opportunity to market to your existing customers. Did you know that when you respond to a customer review the customer will know that you replied? Most review platforms notify customers when the business responds to their review. This is an easy way to make your existing clients feel appreciated, and they are much more likely to become repeat customers. Too many business owners and entrepreneurs are so focused on acquiring new customers that they ignore their existing ones. Do you believe a customer will be more inclined to do business with you again and refer you to new customers when you express your gratitude publicly to their positive review? Exactly. Editor’s note: Looking for the right online reputation management service for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.
3. Enhance Your SEO efforts.Every time a customer reviews your business, whether good or bad, it’s your opportunity to provide additional SEO value for your business. Search engines like Google, Bing, and Yahoo crawl the internet to find new information so they can provide the most recent and relevant content for their users. When you respond to each customer review, you can add context about your customers’ experience with your business. Let’s say that you are a plastic surgeon in Maryland and a happy patient just posted a glowing review online. You could reply, “Thanks for the great review! We are constantly striving to be the best cosmetic surgeons we can be. I’m so grateful you chose our practice. If you need help or have any questions, call our Maryland office anytime. Remember, you also have my private cell phone number and can reach me anytime, 24/7, if it’s urgent.” Did you notice how I mentioned the keywords “best cosmetic surgeons” and “Maryland” in the reply? This is additional relevant content that will enhance the SEO value of that review page, especially for your Google local business listing. Google specifically states in its help system that reviews can improve your listings’ visibility in its results. Warning: don’t overdo it with the keywords in your replies. Otherwise, Google and other search engines may penalize your listing, and you could potentially offend your client or patient if they feel like your response isn’t authentic. Remember, these responses are public for everyone to see. The good news is you can add to, edit, or update your replies at any time. 4. Protect your business reputation with trust and transparency.When you fail to implement a reputation marketing system in your business, you’re leaving yourself vulnerable to attack. If you are neglecting your online reputation, all it takes is one or two bad reviews to cripple your business. Did you know that just one bad review can cost your business as much as 22% of prospective customers? Your potential to lose customers skyrockets to 59.2% if people find three negative articles or reviews about your brand. However, if you’re actively marketing your brand reputation and requesting online reviews, you can drown one or more negative review in a sea of positive reviews. Remember, in today’s digital age, consumers are well-educated. Most people know that you cannot please 100% of the people 100% of the time. Your competition likely has a negative review or two, as well. The key is having dozens or hundreds of positive reviews to outweigh the negative ones. When you combine positive reviews with personalized responses to all your reviews, you are creating an impenetrable fortress around your brand’s reputation. The fact is when people see dozens of positive reviews and an occasional negative review; they are likely to discount the negative review – especially if the business has replied to all the reviews with sincere honesty and transparency. People understand that companies make mistakes and can even empathize with them in certain situations. It’s critical that if you or an employee makes a mistake that you own it and take responsibility. People will understand and forgive you if you craft appropriate and thoughtful apologies to your negative reviewers. Many times, it’s your responses that will attract new customers to your business. When they see you responding to all your clients and observe how you handle difficult situations, most people will trust you to do a good job or to do the right thing if you don’t. 5. Attract new customers who post reviews.A 2017 study found that 78% of consumers trust online reviews as much as personal recommendations. That’s why it’s critical to implement a reputation marketing strategy that helps you develop trust with your prospective customers. As you earn more reviews for your business and consistently reply to them, prospective customers will see why they should choose you over your competition. They will see that you care about all your customers. As a result, more people will trust your business, and you will become the clear leader in your marketplace. When you invite your new customers to share reviews about their experiences online, simply remind them why they chose your company. Your odds of getting your new clients to post a review online are substantially higher since it was customer reviews that attracted them to your business in the first place. Of course, this only works if you deliver on your promises and do good work. Bonus tip: How to handle negative reviews.Most entrepreneurs and business leaders make every effort to satisfy and please the customer. However, no matter how hard you try, sometimes it just doesn’t happen and your business is forced to address a negative online review. When that happens, it’s crucial to consult with people you trust who have legitimate business experience and acumen before you respond. The last thing you want to do is to reply in an emotional state of distress or anger. Instead, think of how you can reply in an authentic and meaningful way without compromising your integrity. Let’s face the truth: some customers will try to sabotage your business to get free products and services or to simply get attention. Don’t let this happen to you. Stay true to your core values and do your best to reply in a professional and thoughtful manner. Here’s an example of how we coached a client to respond to a negative review. One of our clients found a negative review that labeled their chiropractic clinic as “another cattle-in and cattle-out operation.” Ouch! The business owner wanted to share a fun and light-hearted response and wasn’t afraid to repel people who didn’t resonate with his message. After careful consideration and discussion, we decided to create a video response using a humorous, yet authentic, approach and posted it on Facebook. Remember, it’s okay to have a sense of humor in business, as long as you are genuine and sincere. We got thousands of views and lots of positive feedback from the business’s Facebook fans. However, this reputation marketing strategy could have backfired if the business did not have dozens of five-star reviews. This is why every entrepreneur must be laser-focused on building a five-star online reputation for their business and brand. Can you get rich from fx trading? 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