No Middlemen
Centralized exchanges provide many advantages to the trader. However, one of the problems with any centralized exchange is the involvement of middlemen. Any party located in between the trader and the buyer or seller of the security or instrument traded will cost them money. The cost can be either in time or in fees. Spot currency trading does away with the middlemen and allows clients to interact directly with the market-maker responsible for the pricing on a particular currency pair. Forex traders get quicker access and cheaper costs.
Buy/Sell programs do not control the market
How many times have you heard that "fund A" was selling "X" or buying "Z"? Rumor had it that the funds were taking profits because of the end of the financial year or because today is "triple witching day", all as an explanation of why this stock is up or the market in general is down or positive on the session. The stock market is very susceptible to large fund buying and selling.
In spot trading, the liquidity of the Forex market makes the likelihood of any one fund or bank to control a particular currency very slim. Banks, hedge funds, governments, retail currency conversion houses and large net-worth individuals are just some of the participants in the spot currency markets where the liquidity is unprecedented.
Analysts and brokerage firms are less likely to influence the market
Have you watched TV lately? Heard about a certain Internet stock and an analyst of a prestigious brokerage firm accused of keeping its recommendations, such as "buy" when the stock was rapidly declining? It is the nature of these relationships. No matter what the government does to step in and discourage this type of activity, we have not heard the last of it.
IPO's are big business for both the companies going public and the brokerage houses. Relationships are mutually beneficial and analysts work for the brokerage houses that need the companies as clients. That catch-22 will never disappear.
Foreign exchange, as the prime market, generates billions in revenue for the world's banks and is a necessity of the global markets. Analysts in foreign exchange don't drive the deal flow, they just analyze the forex market.
8,000 stocks versus 4 major currency pairs
There are approximately 4,500 stocks listed on the New York Stock exchange. Another 3,500 are listed on the NASDAQ. Which one will you trade? Got the time to stay on top of so many companies? In spot currency trading, there are dozens of currencies traded, but the majority of the market trades the 4 major pairs. Aren’t four pairs much easier to keep an eye on than thousands of stocks? I’d say so.
Wednesday, December 19, 2007
How You Make Money Trading Forex
In the FX market, you buy or sell currencies. Placing a trade in the foreign exchange market is simple: the mechanics of a trade are very similar to those found in other markets (like the stock market), so if you have any experience in trading, you should be able to pick it up pretty quickly.
The object of Forex trading is to exchange one currency for another in the expectation that the price will change, so that the currency you bought will increase in value compared to the one you sold.
Example of making money by buying Euros
Trader's Action
EUR
USD
You purchase 10,000 euros at the EUR/USD exchange rate of 1.18
+10,000
-11,800*
Two weeks later, you exchange your 10,000 euros back into US dollars at the exchange rate of 1.2500.
-10,000
+12,500**
You earn a profit of $700.
0
+700
*EUR $10,000 x 1.18 = US $11,800** EUR $10,000 x 1.25 = US $12,500
An exchange rate is simply the ratio of one currency valued against another currency. For example, the USD/CHF exchange rate indicates how many U.S. dollars can purchase one Swiss franc, or how many Swiss francs you need to buy one U.S. dollar.
How to Read an FX Quote
Currencies are always quoted in pairs, such as GBP/USD or USD/JPY. The reason they are quoted in pairs is because in every foreign exchange transaction you are simultaneously buying one currency and selling another. Here is an example of a foreign exchange rate for the British pound versus the U.S. dollar:
GBP/USD = 1.7500
The first listed currency to the left of the slash ("/") is known as the base currency (in this example, the British pound), while the second one on the right is called the counter or quote currency (in this example, the U.S. dollar).
When buying, the exchange rate tells you how much you have to pay in units of the quote currency to buy one unit of the base currency. In the example above, you have to pay 1.7500 U.S. dollar to buy 1 British pound.
When selling, the exchange rate tells you how many units of the quote currency you get for selling one unit of the base currency. In the example above, you will receive 1.7500 U.S. dollars when you sell 1 British pound.
The base currency is the “basis” for the buy or the sell. If you buy EUR/USD this simply means that you are buying the base currency and simultaneously selling the quote currency.
You would buy the pair if you believe the base currency will appreciate (go up) relative to the quote currency. You would sell the pair if you think the base currency will depreciate (go down) relative to the quote currency.
Long/Short
First, you should determine whether you want to buy or sell.
If you want to buy (which actually means buy the base currency and sell the quote currency), you want the base currency to rise in value and then you would sell it back at a higher price. In trader's talk, this is called "going long" or taking a "long position". Just remember: long = buy.
If you want to sell (which actually means sell the base currency and buy the quote currency), you want the base currency to fall in value and then you would buy it back at a lower price. This is called "going short" or taking a "short position". Short = sell.
The object of Forex trading is to exchange one currency for another in the expectation that the price will change, so that the currency you bought will increase in value compared to the one you sold.
Example of making money by buying Euros
Trader's Action
EUR
USD
You purchase 10,000 euros at the EUR/USD exchange rate of 1.18
+10,000
-11,800*
Two weeks later, you exchange your 10,000 euros back into US dollars at the exchange rate of 1.2500.
-10,000
+12,500**
You earn a profit of $700.
0
+700
*EUR $10,000 x 1.18 = US $11,800** EUR $10,000 x 1.25 = US $12,500
An exchange rate is simply the ratio of one currency valued against another currency. For example, the USD/CHF exchange rate indicates how many U.S. dollars can purchase one Swiss franc, or how many Swiss francs you need to buy one U.S. dollar.
How to Read an FX Quote
Currencies are always quoted in pairs, such as GBP/USD or USD/JPY. The reason they are quoted in pairs is because in every foreign exchange transaction you are simultaneously buying one currency and selling another. Here is an example of a foreign exchange rate for the British pound versus the U.S. dollar:
GBP/USD = 1.7500
The first listed currency to the left of the slash ("/") is known as the base currency (in this example, the British pound), while the second one on the right is called the counter or quote currency (in this example, the U.S. dollar).
When buying, the exchange rate tells you how much you have to pay in units of the quote currency to buy one unit of the base currency. In the example above, you have to pay 1.7500 U.S. dollar to buy 1 British pound.
When selling, the exchange rate tells you how many units of the quote currency you get for selling one unit of the base currency. In the example above, you will receive 1.7500 U.S. dollars when you sell 1 British pound.
The base currency is the “basis” for the buy or the sell. If you buy EUR/USD this simply means that you are buying the base currency and simultaneously selling the quote currency.
You would buy the pair if you believe the base currency will appreciate (go up) relative to the quote currency. You would sell the pair if you think the base currency will depreciate (go down) relative to the quote currency.
Long/Short
First, you should determine whether you want to buy or sell.
If you want to buy (which actually means buy the base currency and sell the quote currency), you want the base currency to rise in value and then you would sell it back at a higher price. In trader's talk, this is called "going long" or taking a "long position". Just remember: long = buy.
If you want to sell (which actually means sell the base currency and buy the quote currency), you want the base currency to fall in value and then you would buy it back at a lower price. This is called "going short" or taking a "short position". Short = sell.
MAKE MONEY WITH THE BANK?S MONEY
During a 6-month period you will be able to deposit 50,000 dollars in your personal bank accounts, without doing anything at all!? Let me elaborate just a little.? ?You do not do anything physical to bring in this kind of money!?? The bank does all the work for you at your convenience, and as long as you keep your account ?open? they almost have no choice!? I will show you how to make a minimum of $5,000 a month by just opening a bank account. ?But that is just the tip of the iceberg!? By opening a bank account, I will teach you how to have that kind of money deposited into your bank account Automatically, though a built-in automatic process that I will personally show you.? That is the beauty of the $ecret Banking $ystem!? Imagine making $5,000 a month for each bank account you ?open?.? And aside from opening the account, it does not cost you anything!? Just one bank account can make you financially independent for life!
Now Think Big.? Think of the same idea on a slight larger scale, like two or three bank accounts working at the same time each producing a guaranteed monthly income of $5,000 each.? As of today, I have 13 active account @$5,000 = $65,000 per month, every month, 12 months a year.? I assure you, there is no print error.? I said 65 thousand dollars per month!
In summary this is how the formula works:? YOU walk into a bank, open a bank account, follow the instructions like a recipe in a cookbook, and 30 days later you will make $5,000. ?And one of the most amazing realities of the $ecret Banking $ystem is that you can begin with literally $0, zero money.? In the $ecret Banking $ystem manual, in an easy to duplicate as a set of ?blueprints?, you will find out for yourself where all the money comes from and how it is added up for you.
I realize what I am originating to you may sound impossible, but I promise you, it is possible, doable and simple.? There is not shortage of money, the Federal Reserve Board creates money daily but most of it must pass through and circulate in the banks over and over again. ?That is how banks run.? That is where this Ingenious $ecret Banking $ystem comes in.? All you need is the $ecret Banking $ystem manual to start making big money.? IF YOU ORDER TODAY WE SHALL ADD AT NO EXTRA COST TO YOU, THE FAMOUS "101 High Profit Businesses You Can Start Online For Little Or No Money", PLUS 1,000,000 ONE MILLION OPT-IN ADDRESSES- FREE!!
Now Think Big.? Think of the same idea on a slight larger scale, like two or three bank accounts working at the same time each producing a guaranteed monthly income of $5,000 each.? As of today, I have 13 active account @$5,000 = $65,000 per month, every month, 12 months a year.? I assure you, there is no print error.? I said 65 thousand dollars per month!
In summary this is how the formula works:? YOU walk into a bank, open a bank account, follow the instructions like a recipe in a cookbook, and 30 days later you will make $5,000. ?And one of the most amazing realities of the $ecret Banking $ystem is that you can begin with literally $0, zero money.? In the $ecret Banking $ystem manual, in an easy to duplicate as a set of ?blueprints?, you will find out for yourself where all the money comes from and how it is added up for you.
I realize what I am originating to you may sound impossible, but I promise you, it is possible, doable and simple.? There is not shortage of money, the Federal Reserve Board creates money daily but most of it must pass through and circulate in the banks over and over again. ?That is how banks run.? That is where this Ingenious $ecret Banking $ystem comes in.? All you need is the $ecret Banking $ystem manual to start making big money.? IF YOU ORDER TODAY WE SHALL ADD AT NO EXTRA COST TO YOU, THE FAMOUS "101 High Profit Businesses You Can Start Online For Little Or No Money", PLUS 1,000,000 ONE MILLION OPT-IN ADDRESSES- FREE!!
Tuesday, December 18, 2007
3 Secrets for Creating a Successful Newsletter that will Bring You a Nice Online Profit
Secret 2 - Provide Helpful Content that Your Readers WantWant to have a newsletter with thousands of fans and loyal readers?Then simply give your readers helpful information that they want.What does it mean?It's simple. Everybody knows you should offer helpful content in your newsletter.But what few people pay attention to, is giving their readers what really want. Because not every helpful information is what your readers want. Let's say you publish a newsletter about cars. You keep including information and pictures for Mercedes Benz in issue after issue.The information and pictures are really cool and useful. So you think your readers love it.But without you knowing this, there is a problem with that…85% of your readers are interested in Ferrari – and not even a bit interested about Mercedes Benz. So imagine how frustrating it is for them to hear all about Mercedes Benz in your newsletter week after week.See the problem here?That's why you should not only provide helpful content, but also the information that your readers really want. Otherwise, it will be like giving very valuable information about growing a coconut tree to Eskimos. Your information is still very helpful – but not to your readers.Most newsletter publishers give their readers what they think their readers want… which is by the way 80% not right. So How can you discover what your readers really want?Simply ask them!Yes, you can run a simple and easy survey from your list and ask them what they want to find most in your newsletter. You'll be surprised about the responses. You can simply create your survey outline by email and send it to your list and ask them to reply back, or if you want to look more professional and get more response, you can simply use SurveyMonkey. It's a great survey service that I have personally used and have seen other big newsletter publishers use too. So find out what your readers most like to hear about, and then give it to them. Then I promise you will have a big list of fans and loyal happy readers behind you.Now let's get to the last newsletter success secret.Secret 3 - Use a Professional, Reader Friendly Newsletter Design I still can't believe how many honest, hard-working newsletter publishers spend hours on writing and preparing each issue and still kill their efforts and results by using a poor newsletter design for their newsletter.It's like you spend years of your life writing an awesome book and then when it comes to choosing a cover for it, you use a very cheap and low-quality paper and write the book title in handwriting on its cover.Wouldn't it be insane?Still, some people do the same with their newsletter. Even if the newsletter content is very helpful, people won't still read it because they are turned off by the low quality and cheap looking design so much that assume the content will be as bad as the design. Or maybe the design is so bad that hurts their eye to read the articles – like too small text or a cluttered look that confuses them which part is where.So what about you?Is your newsletter design really professional? Or maybe it is killing your newsletter readership...You can read this article and learn 3 ways to easily get a professional design for your newsletter that your readers will love. You will find this article an eye-opener.Final Thoughts So now you know the top 3 secrets to have your own highly successful newsletter...1. Give Your Newsletter a Personal Voice2. Provide Helpful Content that Your Readers want3. Use a Professional Design for Your NewsletterSo now you are armed with powerful information that can help you transform your newsletter success.
Outsourcing - What it is and how it Benefits the Internet Entrepreneurs
People sometimes wonder when they hear the term "outsourcing'. Here's is a brief definition of outsourcing and some ideas on how it can benefit the online business entrepreneur, especially one who is making a go on the Internet.In actually, outsourcing has been going on for many years. The essence of outsourcing is simply engaging the services of an individual or organization outside your full time staffs to handle certain aspects of your business plan.These aspects may be public relations, marketing, content creation for website, clerical and administrative functions, or IT management. In fact, with today's virtual environment, there is really no part of the business that could not be outsourced effectively.Of course, the big question is whether or not there are any benefits to outsourcing, especially for persons who are building their business on the Internet to make money online. Actually, there are several good reasons to outsource certain functions. Here are some examples.Often, an Internet business is set up with a shoestring budget and one person doing all the work. As the business grows, it is easy to get caught in dealing with general office functions, such as answering emails, handling correspondence, creating unique content and maintaining client lists.By outsourcing your clerical support needs, you can spend more time focusing on the expansion of your business, not the day to day details of running it.Second, promoting your online presence is a full time job all by itself. You can hardly manage that and still be involved in making the big decisions that impact the overall operations of your company. Using outside agents to promote your presence and to stimulate sales makes it possible for you to do what owners need to do, which is grow the companies roster of goods and services.Last, outsourcing allows you to not get bogged down with employee taxes, withholding and providing a benefit package. When you outsource to an agency or to another individual, they will not expect a benefit package to go along with their pay.You will save a great deal of time and money on accounting functions; these savings can be pumped right back into your business and used for expansion.Outsourcing is a great way to expand your online company without undue stress on your resources. Why not look at your present situation and see if you would benefit from outsourcing a function or two.
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