by: Martina van Dongen
Over the past few years we've seen that many local currencies have come into existence.
Let's first take a look at what a local currency is, and then follow the story why they mushroom now.
A local currency or a complementary currency is used as a medium of exchange among participating of a local group. The members of the group share the same economic interest: they wish to broaden the economic basis of the region they live in, and they wish to broaden the basis of the businesses they run. Local currencies may come in the shape of coins and notes just like the ones issued by the Central Bank, or they may be completely virtual, like credit and debit entries of a barter exchange. Also, they may be digital, like for instance digital currencies, backed by precious metals.
The common feature of all the local interest groups is to find ways and means to overcome the flaws of the monetary system in existence.
In the current monetary system there are two flaws.
First of all, the current monetary system allows private individuals or private companies to charge interest on loans to others.
Today there are huge inconsistencies in the value of global production, debt and assets.
In an environment of tougher competition prices drop. With falling prices risks are on the rise that borrowers will default on loan repayment.
Another feature of the current monetary system is the fact that it is not cash flow safe. The bearer of an amount of cash may prefer to hoard his cash. There is even a premium on this strategy: any local bank will pay interest on deposits of money. However, there is no guarantee that the bank will grant loans to the local community.
Local (regional) currencies are not in use as a substitute for legal tender. Hence the name complementary currency. Complementary currencies are used anywhere where a group (local, regional, or special economic interest) finds that adverse economic trends need to be responded to.
The focus of groups that adopt a business strategy to use a form of complementary currency is to broaden its economic basis. The local economy will grow because it is active, open, and diversified. Sustainable economic growth is not expected to come from a rapid sale of assets, like local resources.
Benefits
The introduction of a complementary currency is successful if participants of the system have at least one product or service to offer to the community using that currency.
From the point of view of each individual participant in the currency system, the system provides a marketing tool at virtually no cost.
Ever since the end of the experiment in the Austrian township of Woergl in 1934, chances are slim to none that the monetary system in existence (a National Bank that is responsible for the issue of money; private individuals and companies are allowed to charge interest on loans to others) will ever be replaced by a system that handles these issues in a different way.
For this reason, complementary currencies that perform a function of deferred payment in one way or another have the best chances in the marketplace.
Best choice
Entrepreneurs have a wide variety of complementary currencies at their disposal.
Your best options are with the ones that provide easy access. So many people are expected to join; this feature makes a complementary currency a real marketing tool.
Your choice should also be for the ones that are closely linked to the existing monetary system. People who go with the tide succeed in the marketplace. People who go against the tide don't.
Deferred payment poses a risk to the party that accepts this form of payment.
Parties who take risks obviously deserve to be rewarded. Complementary currencies in the shape of credit and debit entries in the books of a barter exchange have a role to play here.
In a barter exchange participants may be eligible to a line of non-cash "credit" against collateral. The credit is granted in form of purchasing power with other participants to buy goods and services. Accounts are settled with the line of credit. The participant has the option to repay the line of credit by selling products and/or services for complementary currency within the group of participants, or to settle the account with cash within the time frame agreed upon. This option makes the system sustainable, and it protects the participants against the risk of default of one of their peers.
The combination of the features: easy access and numerous participants, and linkage to the current monetary system as a form of deferred payment make for a solid, sustainable system.
One of the opportunities today (November 2006) is http://threepointeightmillioncash.blogspot.com.
Especially if you are a small business owner, you should plan ahead and develop a strategy to stand out from other small business owners. The use of one or more complementary currencies and the organizations that stand behind them provides a low cost and time efficient means to put your product on the market, before somebody else does.
To take things a step further, you will stand out in a positive way by packaging seemingly unrelated business transactions, making use of offers of surplus production of various goods, standard currencies, and complementary currencies. The latter may be freely replaced by: the services of a barter exchange.
You will stand a better chance starting your small business following this strategy than focusing on selling your product for cash, which is always in short supply.
Along with this strategy, as Frits Visscher points out in his brochure "How to be a successful corporate consultant", there are tons of opportunities for small start up businesses and for consultants, business promoters, middlemen, intermediaries, finders, business developers and commercial agents. In your home town there are people who plan to start a business, who have started a business, who are buying an existing business, who are selling a business. All are looking out for cash that is in short supply. You can earn substantial fees if you make use of one or more complementary currencies. Incidentally, Frits Visscher's brochure is for sale by referral only.
Resources:
Finder's Fees; Special Report by J.F. Straw
http://www.barternews.com
http://www.complementarycurrency.org
Thursday, December 28, 2006
Sunday, December 24, 2006
Learn About Equity Index Annuities
by: Scott Walker
‘Save for a rainy day’ is a wise old saying and there are many ways you can prepare for the sunset of your life. Investing in an annuity is one way. An annuity is a long-term, interest-paying contract offered through an insurance company or financial institution. An equity indexed annuity is an annuity that earns interest that is linked to a stock or other equity index. Depending on how those stocks fare will determine what you gain. The equity index annuities, as in any kind of investments, have to be kept untouched for a long period. The typical time is a minimum of 7 years. This will ensure that you get the full benefit of having invested in an equity index annuity.
The equity index annuities are basically an option of investment that is offered by insurance companies. They actually provide you with the benefit of investing in the stock market without the associated risks of losing your money. So, in an equity index annuity, your principal is never lost and even in a worst case you may take some interest back home. The flip side of this however is that even if the stocks that the equity index annuity is invested in gives high returns, you will not receive the full returns but just a percentage. So you do not get the maximum returns for your equity index annuity but just a part.
This is however the compensation that the insurance companies who offer you the equity index annuities receive, for providing you with a safety net throughout the term of the annuity. The percentage of returns (i.e. the gain of the index) that your equity index annuity brings you is determined by the participation rate. This rate is pre-decided and varies and to know this you have to read the fine print prior to signing on the documents. The general participation rate offered for most equity index annuities is between 70 to 90 percent.
The equity index annuities are therefore seen as a conservative and prudent investment.
They became quite popular during the previous bullish run in the market and insurance companies saw them as an excellent means of combining the security of a guaranteed return with the boom of the stock market. All equity index annuities offer a minimum interest rate and its value also does not fall below the guaranteed minimum percentage of the premium paid i.e. 90 percent at least.
However to achieve maximum benefits, your equity index annuities should not be withdrawn before the term. If you do even a partial withdrawal it will definitely affect the interest you receive. Like all investments, this is best kept for a long term. This will also help your equity index annuities even out and recover if the index plunges. As we know the stock market is volatile and this needs to be kept in mind when investing. Also there are definite withdrawal penalties that you would have to pay as well.
How then do the insurance agencies benefit from offering equity index annuities? The insurance companies reinvest the premium amounts that you pay and this is usually invested into bonds. Since the participation rate is fixed, they have to pay only those set rates of interest to the investors of the equity index annuities and the insurance companies profit the balance.
Equity index annuities are generally affiliated to a particular stock market index such as the S&P 500 or the Dow Jones Industrial Average. However as the equity index annuities combine features of a typical insurance product with the traditional security they do completely fall into each of those specific categories.
As a typical insurance product you are guaranteed minimum return and in terms of securities your investment is linked to the equity market. However it all depends on the features that your equity index annuity provides and it may or may not be a security. The typical equity-indexed annuity is not registered with the SEC.
So then how does one know which equity index annuity is best for oneself? The only way is to find out as much as you can about the equity index annuity before you decide.
Ask a lot of questions like which stock market index does the equity index annuity use? What participation rate is being offered to you? Are there any hidden charges in terms of any fees or deductions payable? You have to run through a number of equity index annuity offerings before making your decision.
So save for a rainy day and do it the equity index annuity way!
‘Save for a rainy day’ is a wise old saying and there are many ways you can prepare for the sunset of your life. Investing in an annuity is one way. An annuity is a long-term, interest-paying contract offered through an insurance company or financial institution. An equity indexed annuity is an annuity that earns interest that is linked to a stock or other equity index. Depending on how those stocks fare will determine what you gain. The equity index annuities, as in any kind of investments, have to be kept untouched for a long period. The typical time is a minimum of 7 years. This will ensure that you get the full benefit of having invested in an equity index annuity.
The equity index annuities are basically an option of investment that is offered by insurance companies. They actually provide you with the benefit of investing in the stock market without the associated risks of losing your money. So, in an equity index annuity, your principal is never lost and even in a worst case you may take some interest back home. The flip side of this however is that even if the stocks that the equity index annuity is invested in gives high returns, you will not receive the full returns but just a percentage. So you do not get the maximum returns for your equity index annuity but just a part.
This is however the compensation that the insurance companies who offer you the equity index annuities receive, for providing you with a safety net throughout the term of the annuity. The percentage of returns (i.e. the gain of the index) that your equity index annuity brings you is determined by the participation rate. This rate is pre-decided and varies and to know this you have to read the fine print prior to signing on the documents. The general participation rate offered for most equity index annuities is between 70 to 90 percent.
The equity index annuities are therefore seen as a conservative and prudent investment.
They became quite popular during the previous bullish run in the market and insurance companies saw them as an excellent means of combining the security of a guaranteed return with the boom of the stock market. All equity index annuities offer a minimum interest rate and its value also does not fall below the guaranteed minimum percentage of the premium paid i.e. 90 percent at least.
However to achieve maximum benefits, your equity index annuities should not be withdrawn before the term. If you do even a partial withdrawal it will definitely affect the interest you receive. Like all investments, this is best kept for a long term. This will also help your equity index annuities even out and recover if the index plunges. As we know the stock market is volatile and this needs to be kept in mind when investing. Also there are definite withdrawal penalties that you would have to pay as well.
How then do the insurance agencies benefit from offering equity index annuities? The insurance companies reinvest the premium amounts that you pay and this is usually invested into bonds. Since the participation rate is fixed, they have to pay only those set rates of interest to the investors of the equity index annuities and the insurance companies profit the balance.
Equity index annuities are generally affiliated to a particular stock market index such as the S&P 500 or the Dow Jones Industrial Average. However as the equity index annuities combine features of a typical insurance product with the traditional security they do completely fall into each of those specific categories.
As a typical insurance product you are guaranteed minimum return and in terms of securities your investment is linked to the equity market. However it all depends on the features that your equity index annuity provides and it may or may not be a security. The typical equity-indexed annuity is not registered with the SEC.
So then how does one know which equity index annuity is best for oneself? The only way is to find out as much as you can about the equity index annuity before you decide.
Ask a lot of questions like which stock market index does the equity index annuity use? What participation rate is being offered to you? Are there any hidden charges in terms of any fees or deductions payable? You have to run through a number of equity index annuity offerings before making your decision.
So save for a rainy day and do it the equity index annuity way!
Wednesday, December 20, 2006
How To Avoid Bankruptcy & Get Out Of Debt Faster Using Debt Negotiation!
Has credit card debt got you thinking about bankruptcy?
You’re not the only one these days. Even with the new bankruptcy laws, credit card debt continues to climb. Unfortunately for most of us, our paychecks don’t climb as quickly.
If you’re on the verge of bankruptcy, you may have another alternative.
Debt negotiation is a process where you negotiate with your creditors to pay off your debts at a reduced amount – for example, if you owe $12,000, you can negotiation a payoff of $5,000. The benefit for the creditor is that they get more money than they may have through bankruptcy, and they get the money sooner. The benefit for you is obvious – you get out of debt faster, and save lots of money in interest.
Where do you get the money to pay off the debt?
Take the money you would have normally used to pay your credit card bills, put it aside, and when you accumulate enough to pay off the debt, send in the reduced amount you agreed to.
If this sounds confusing, that’s ok. It’s really not.
There are many professional companies that will do all the work for you, and charge you a percentage of the savings.
I can speak from experience (I built up a lot of debt trying to start a sporting goods business, which didn’t quite work out) that even with the fees, this is a good deal – plus you save a lot money by not having to pay the high interest rates on your credit card bills.
Sure, it is a more aggressive approach to getting out of debt than making minimum payments, using credit counseling, getting a debt consolidation loan, or borrowing from a friend or relative. But in the end, you’ll get out of debt faster…
And avoid bankruptcy!
If you’ve never heard of debt negotiation (also called debt settlement), that’s ok too, not many people have. I didn’t until I began to seriously consider bankruptcy.
One reason many people are hesitant to consider debt negotiation is that it goes on your credit report. Sorry to tell you, but having lots of debt (even if you pay on time), making payments late, even credit counseling – all go on your credit report and can negatively effect your credit. And (of course) bankruptcy is a big negative!
In my case, getting out of debt, removing all the financial stress, and being able to live a normal life were well worth it. With so much debt, having good credit was meaningless anyway.
Plus, I was able to get all but one of the negative items off my credit report (that’s a topic for another discussion), and my credit is now back to normal. In fact, I now get more credit card offers than I can handle – and fortunately, I can now throw them all in the trash!
When money is tight, and debt is high, there aren’t many simple answers.
But if you are already considering bankruptcy, then debt negotiation might be the right alternative to help you get out of debt faster!
About the author:
Kris Bickell is the owner of Debt-Tips.com, a helpful site for consumers struggling with credit card debt. For tips on getting out of debt, repairing your credit, saving money, and making extra money online, sign up for the free “5 Simple Steps To Getting Out Of Debt Faster, Fixing Your Credit Problems, & Saving Lots Of Money!” email course at: http://www.Debt-Tips.com/.© 2005 Debt-Tips.com
You’re not the only one these days. Even with the new bankruptcy laws, credit card debt continues to climb. Unfortunately for most of us, our paychecks don’t climb as quickly.
If you’re on the verge of bankruptcy, you may have another alternative.
Debt negotiation is a process where you negotiate with your creditors to pay off your debts at a reduced amount – for example, if you owe $12,000, you can negotiation a payoff of $5,000. The benefit for the creditor is that they get more money than they may have through bankruptcy, and they get the money sooner. The benefit for you is obvious – you get out of debt faster, and save lots of money in interest.
Where do you get the money to pay off the debt?
Take the money you would have normally used to pay your credit card bills, put it aside, and when you accumulate enough to pay off the debt, send in the reduced amount you agreed to.
If this sounds confusing, that’s ok. It’s really not.
There are many professional companies that will do all the work for you, and charge you a percentage of the savings.
I can speak from experience (I built up a lot of debt trying to start a sporting goods business, which didn’t quite work out) that even with the fees, this is a good deal – plus you save a lot money by not having to pay the high interest rates on your credit card bills.
Sure, it is a more aggressive approach to getting out of debt than making minimum payments, using credit counseling, getting a debt consolidation loan, or borrowing from a friend or relative. But in the end, you’ll get out of debt faster…
And avoid bankruptcy!
If you’ve never heard of debt negotiation (also called debt settlement), that’s ok too, not many people have. I didn’t until I began to seriously consider bankruptcy.
One reason many people are hesitant to consider debt negotiation is that it goes on your credit report. Sorry to tell you, but having lots of debt (even if you pay on time), making payments late, even credit counseling – all go on your credit report and can negatively effect your credit. And (of course) bankruptcy is a big negative!
In my case, getting out of debt, removing all the financial stress, and being able to live a normal life were well worth it. With so much debt, having good credit was meaningless anyway.
Plus, I was able to get all but one of the negative items off my credit report (that’s a topic for another discussion), and my credit is now back to normal. In fact, I now get more credit card offers than I can handle – and fortunately, I can now throw them all in the trash!
When money is tight, and debt is high, there aren’t many simple answers.
But if you are already considering bankruptcy, then debt negotiation might be the right alternative to help you get out of debt faster!
About the author:
Kris Bickell is the owner of Debt-Tips.com, a helpful site for consumers struggling with credit card debt. For tips on getting out of debt, repairing your credit, saving money, and making extra money online, sign up for the free “5 Simple Steps To Getting Out Of Debt Faster, Fixing Your Credit Problems, & Saving Lots Of Money!” email course at: http://www.Debt-Tips.com/.© 2005 Debt-Tips.com
Friday, December 15, 2006
Understanding The Money Market
The money market is one of the safest financial markets available. It is commonly used by large corporations, financial institutions and governments to secure their money resources for a short period of time. They are often compared to the bond. They are secure investments that are specialized. The main difference, though, in a bond and a money market is that the money market is usually for a very short period of time, usually under a year. You may hear them referred to as cash investments because of this short turn around.
In the most basic of form, the money market is a borrowing of money by a government institution or other large corporations. They are very liquid and are very safe. In fact, when your next bull market falls off, this may be where you plan to put your money. But, with this safety also comes a lower return, as it rightly should.
You can also compare the money market to the stock market. Because the process if virtually the same, you can see how these two elements can be compared. But, the largest difference in them is that the money market is dealing with much larger funds. While in the stock market the individual investor is able to get into the game rather easily, the money market is dealing with such a large amount of money that it is much too high for most. Also, it is a dealer marketing in which companies and governments buy and sell within their own accounts and at their own risk.
If this all sounds too good to not get into, the best way for the individual to get into the money market is to look into money market mutual funds. These funds pool together money from several sources so that they can compete for the money market shares. You can also look into treasury bills as a way of getting into it. The money market is a complex place and you can learn quite a bit more about it, how it works and why it works and see how well you can get into it!
About the author:
For more information please see http://www.money-market-info.co.uk
In the most basic of form, the money market is a borrowing of money by a government institution or other large corporations. They are very liquid and are very safe. In fact, when your next bull market falls off, this may be where you plan to put your money. But, with this safety also comes a lower return, as it rightly should.
You can also compare the money market to the stock market. Because the process if virtually the same, you can see how these two elements can be compared. But, the largest difference in them is that the money market is dealing with much larger funds. While in the stock market the individual investor is able to get into the game rather easily, the money market is dealing with such a large amount of money that it is much too high for most. Also, it is a dealer marketing in which companies and governments buy and sell within their own accounts and at their own risk.
If this all sounds too good to not get into, the best way for the individual to get into the money market is to look into money market mutual funds. These funds pool together money from several sources so that they can compete for the money market shares. You can also look into treasury bills as a way of getting into it. The money market is a complex place and you can learn quite a bit more about it, how it works and why it works and see how well you can get into it!
About the author:
For more information please see http://www.money-market-info.co.uk
Wednesday, December 6, 2006
A Synopsis Of What It Takes To Trade The Forex Market With Success!
by: Stavros Georgiadis
This is the first article of a series whose purpose is both educational and practical.And above all they aim to be interactive meaning that any comments suggestions or ideas are more than welcome.
Lets start from the basics.The first thing someone needs is very good education.And this requires a lot of thorough research as there are many sources but not all are worth the money for their services.So in this sense an online forex course could be a good idea along with some books.But here comes the first major problem.Which course and which books,which aspects to cover?The technical analysis issue?The maxim go with the trend?The candlesticks analysis?And which system to use and follow?There are thousands of them!So before we even begin a trader is confused.And confusion is a very bad enemy but it can be arranged.How it can be arranged?With some simple steps.Such as simplicity.The more you know the better chances you have to succeed trading forex and it all comes down to probabilities.
Education is a must to all trading aspects from stocks to futures to forex.But forex has two unique features.High liquidity and extremely high leverage.And although the liquidity is a very good feature high leverage is not.At least not until you know what you are doing.Here we focus again on education.Besides a participation in a forex course either online or not,an amount that will be put away as an investment for education is the first thing a trader must do.Some ideas are to focus on analyzing the current conditions of the market and to have a bias for a specific currency pair.A system such as following the trend could be the core of a trading strategy.And a demo account with many virtual trades as many as possible for a long period of time is the next step.
Now the most important part of the trading action is to make a plan,stick to it and apply very strict money management rules because if the capital is finished and it very easy this to happen then our trading career will finish within a few days,months or even hours.
Lets face the truth that trading is not easy.It is unfortunately far more easy for someone to lose all his account rather than make wild profits beyond each expectation.That is because emotions and psychology are very crucial for success.Some of the most important emotions are fear,uncertainty,euphoria and revenge.Revenge comes into play very very often as when someone loses an amount wants desperately to get it back and often the outcome is that more loses come simply because the trader is on the wrong side of the trend!
Discipline and patience are virtues that distinguish a good trader from a mediocre trader.Without specific goals and a written procedure a trader is like a cargo ship that has sailed without any destination.Someday the fuel will be exhausted and many dangers from the weather to the potential physical damages may happen.Risks exist all the time.The point is how to deal with them.
One of the most useful phrases is taken from the movie Forrest Gump.Life is like a box of chocolates,you never know what you gonna get!
It is true.Be as prepared as possible.Do not let the brokers excite you promising very high returns and extremely high leverage.Do some very thorough research before opening an account funded with real money.Compare the bid-ask spreads and technical support to name only a few aspects.
Be very skeptical to previous results as offered from many signal services.The major aim should be to learn to trade and make your own decisions and not blindly follow some others decisions and opinions. Confidense and experience come with the passage of time.
So we mentioned simplicity before.Being realistic and having a controlled life balance is very important.One major goal should be consistency so as to have the ability to make profits each month and keep them.
Fundamental news are another important issue and in essence the technical analysis is the mirror of fundamentals.Expectations change rapidly and emotions also.And if you think about it emotions and expectations mainly move the forex market.Most times like the recent Fed rate hike decision a move is under way but the danger is when it will be finished and certainly not getting in at the wrong time after all the move is completed.
The best approach for a trader would be to set specific goals and if achieved then stop trading.The worst idea is to trade in a choppy market where random noise will make it difficult to get specific profits.
So a tested system with very precise rules such as entering exiting and having stop-loss orders may not be a holly grail but is surely one very good approach to start with and focus on it.Pivot points are such a system.At least it is a good start.They encompass education,discipline,strict criteria,targets and are a proven system that major players use.They are not foolproof always as nothing is certain but they deal with high probabilities and this is very important.
Also a very practical way is to act as organizes as possible.Meaning that :
1.Develop your own trading journal where you will be writing down your trades and a brief explanation of what made you place a particular trade so as to evaluate performance.Note each day the major economic releases if any because it is often wise to be out of the market before the release of the news and trade only after having a much clearer opinion of what price action may be.Remember it is all about high probabilities.
2.A risk/reward ratio of 1:2 meaning that you risk an amount to get at least the twice if all go well is suggested but sometimes it is best to be conservative and even apply an 1:1 ratio by applying very strict risk management risking no more than 2-3% of total capital per trade.Survival is everything.
3.It would be a good idea from time to time to have breaks from trading.Opportunities exist always so stopping trading when losses of 10-20% maximum of trading capital have accumulated is a good way to revaluate what is going on before a large amount of capital is lost.Trading is not gambling it is a way of investment.The philosophy should be to define realistic goals such as a number of pips per day and if achieved then stop trading.Greed is another bad enemy of traders.On the contrary the notion of compounding profits and retiring a portion of them each month is a good way to build a solid account and keep monitoring its growth.
So in this first article we touched briefly many ideas from education to psychology to a proven trading system etc.Each idea will have more in depth analysis in the very near future.Your comments and suggestions will help us a lot to focus on what you need or want to analyze.Above all interactive communication brings the best results.
This is the first article of a series whose purpose is both educational and practical.And above all they aim to be interactive meaning that any comments suggestions or ideas are more than welcome.
Lets start from the basics.The first thing someone needs is very good education.And this requires a lot of thorough research as there are many sources but not all are worth the money for their services.So in this sense an online forex course could be a good idea along with some books.But here comes the first major problem.Which course and which books,which aspects to cover?The technical analysis issue?The maxim go with the trend?The candlesticks analysis?And which system to use and follow?There are thousands of them!So before we even begin a trader is confused.And confusion is a very bad enemy but it can be arranged.How it can be arranged?With some simple steps.Such as simplicity.The more you know the better chances you have to succeed trading forex and it all comes down to probabilities.
Education is a must to all trading aspects from stocks to futures to forex.But forex has two unique features.High liquidity and extremely high leverage.And although the liquidity is a very good feature high leverage is not.At least not until you know what you are doing.Here we focus again on education.Besides a participation in a forex course either online or not,an amount that will be put away as an investment for education is the first thing a trader must do.Some ideas are to focus on analyzing the current conditions of the market and to have a bias for a specific currency pair.A system such as following the trend could be the core of a trading strategy.And a demo account with many virtual trades as many as possible for a long period of time is the next step.
Now the most important part of the trading action is to make a plan,stick to it and apply very strict money management rules because if the capital is finished and it very easy this to happen then our trading career will finish within a few days,months or even hours.
Lets face the truth that trading is not easy.It is unfortunately far more easy for someone to lose all his account rather than make wild profits beyond each expectation.That is because emotions and psychology are very crucial for success.Some of the most important emotions are fear,uncertainty,euphoria and revenge.Revenge comes into play very very often as when someone loses an amount wants desperately to get it back and often the outcome is that more loses come simply because the trader is on the wrong side of the trend!
Discipline and patience are virtues that distinguish a good trader from a mediocre trader.Without specific goals and a written procedure a trader is like a cargo ship that has sailed without any destination.Someday the fuel will be exhausted and many dangers from the weather to the potential physical damages may happen.Risks exist all the time.The point is how to deal with them.
One of the most useful phrases is taken from the movie Forrest Gump.Life is like a box of chocolates,you never know what you gonna get!
It is true.Be as prepared as possible.Do not let the brokers excite you promising very high returns and extremely high leverage.Do some very thorough research before opening an account funded with real money.Compare the bid-ask spreads and technical support to name only a few aspects.
Be very skeptical to previous results as offered from many signal services.The major aim should be to learn to trade and make your own decisions and not blindly follow some others decisions and opinions. Confidense and experience come with the passage of time.
So we mentioned simplicity before.Being realistic and having a controlled life balance is very important.One major goal should be consistency so as to have the ability to make profits each month and keep them.
Fundamental news are another important issue and in essence the technical analysis is the mirror of fundamentals.Expectations change rapidly and emotions also.And if you think about it emotions and expectations mainly move the forex market.Most times like the recent Fed rate hike decision a move is under way but the danger is when it will be finished and certainly not getting in at the wrong time after all the move is completed.
The best approach for a trader would be to set specific goals and if achieved then stop trading.The worst idea is to trade in a choppy market where random noise will make it difficult to get specific profits.
So a tested system with very precise rules such as entering exiting and having stop-loss orders may not be a holly grail but is surely one very good approach to start with and focus on it.Pivot points are such a system.At least it is a good start.They encompass education,discipline,strict criteria,targets and are a proven system that major players use.They are not foolproof always as nothing is certain but they deal with high probabilities and this is very important.
Also a very practical way is to act as organizes as possible.Meaning that :
1.Develop your own trading journal where you will be writing down your trades and a brief explanation of what made you place a particular trade so as to evaluate performance.Note each day the major economic releases if any because it is often wise to be out of the market before the release of the news and trade only after having a much clearer opinion of what price action may be.Remember it is all about high probabilities.
2.A risk/reward ratio of 1:2 meaning that you risk an amount to get at least the twice if all go well is suggested but sometimes it is best to be conservative and even apply an 1:1 ratio by applying very strict risk management risking no more than 2-3% of total capital per trade.Survival is everything.
3.It would be a good idea from time to time to have breaks from trading.Opportunities exist always so stopping trading when losses of 10-20% maximum of trading capital have accumulated is a good way to revaluate what is going on before a large amount of capital is lost.Trading is not gambling it is a way of investment.The philosophy should be to define realistic goals such as a number of pips per day and if achieved then stop trading.Greed is another bad enemy of traders.On the contrary the notion of compounding profits and retiring a portion of them each month is a good way to build a solid account and keep monitoring its growth.
So in this first article we touched briefly many ideas from education to psychology to a proven trading system etc.Each idea will have more in depth analysis in the very near future.Your comments and suggestions will help us a lot to focus on what you need or want to analyze.Above all interactive communication brings the best results.
Sunday, December 3, 2006
What's Your Money Style?
by: Jeanna Gabellini
We all have a different style when it comes to our relationship with money. I'm not talking about your fears or stories about money. Your fears are a whole other box of worms. When I refer to style, I mean how you would relate to money if you had never been influenced by another persons style or fears.
Dominant type of people are really driven to make money and use it to please themselves. They like to buy nice cars. They go after money and success with intense passion. When they set a money goal they know they'll get it. Once they get that money, they are reaching for more. They are generous with money but do not like people to take advantage of them. Competition is fun to them. Dominant styles think it is easy to make money and can't understand why everyone else doesn't think this way, too. They are willing to take risks and do not hesitate very long when making decisions about investments. When they desire a certain price on something they will negotiate down. Watch out, they may not bend. Give them the bottom line price up front and you'll save a lot of time and frustration for them and yourself!
Influencing and promoter type of people are excited to make and spend money. If the path to the money is not fun, they will take a right hand turn. When they are in the zone, they will seem to magnetize money in very interesting ways…ways that other people would doubt. They don't think before they buy. They see something they want and they usually go for it, even it breaks the bank. They make a plan but many times they completely forget about when a bright shiny object in a store window catches their eye. Details, details, yuck! Have you ever heard of the terms "shop-o-holic and impulsive"?
Steady and supporter type people like to be slow to their decisions. They will usually let their mate make investment decisions if they are a different style. They are very consistent with their practices and are not thrilled with big risks…they'd rather be patient and watch their money grow over time. Their purchases are more on the practical side.
Analytical type people are very calculated about what happens with their money. By the time they choose to do something, whether it's a purchase, creating a business or an investment, they have created a very thought out a plan. If the choice seemed like a risk before they did their research, it is now a safe bet. They've checked out all the possible down falls of their choice and have a back up plan. Spontaneous with their money? Not! If they are making a purchase, it will last them a long time.
Which style are you? None of these styles is better than another. Each of them does, however, have a shadow side. For instance, an analytical style might get in so much fear about losing their money that they never make a move or go after a dream. A promoter style might spend every penny they have with no money in savings. A dominant style may use their money as manipulative tool. A steady person may get stuck in a rut and fear change that is to their benefit. It is important to know your natural style and work with it, not against it. It is good to implement some traits from other styles, when you see that yours is hindering you. But always stick to your values, no matter what advice you get or read. Remember that everyone has their own style and what works for you may not be tolerable for your mate or business partner. This is where blending styles becomes important. Stay compassionate to other's needs when communicating or taking action with money. If you want to know more about maximizing your authentic money style check go to http://www.masterpeacecoaching.com/disc.htm for info on a one-one coaching sessions and an assessment.
We all have a different style when it comes to our relationship with money. I'm not talking about your fears or stories about money. Your fears are a whole other box of worms. When I refer to style, I mean how you would relate to money if you had never been influenced by another persons style or fears.
Dominant type of people are really driven to make money and use it to please themselves. They like to buy nice cars. They go after money and success with intense passion. When they set a money goal they know they'll get it. Once they get that money, they are reaching for more. They are generous with money but do not like people to take advantage of them. Competition is fun to them. Dominant styles think it is easy to make money and can't understand why everyone else doesn't think this way, too. They are willing to take risks and do not hesitate very long when making decisions about investments. When they desire a certain price on something they will negotiate down. Watch out, they may not bend. Give them the bottom line price up front and you'll save a lot of time and frustration for them and yourself!
Influencing and promoter type of people are excited to make and spend money. If the path to the money is not fun, they will take a right hand turn. When they are in the zone, they will seem to magnetize money in very interesting ways…ways that other people would doubt. They don't think before they buy. They see something they want and they usually go for it, even it breaks the bank. They make a plan but many times they completely forget about when a bright shiny object in a store window catches their eye. Details, details, yuck! Have you ever heard of the terms "shop-o-holic and impulsive"?
Steady and supporter type people like to be slow to their decisions. They will usually let their mate make investment decisions if they are a different style. They are very consistent with their practices and are not thrilled with big risks…they'd rather be patient and watch their money grow over time. Their purchases are more on the practical side.
Analytical type people are very calculated about what happens with their money. By the time they choose to do something, whether it's a purchase, creating a business or an investment, they have created a very thought out a plan. If the choice seemed like a risk before they did their research, it is now a safe bet. They've checked out all the possible down falls of their choice and have a back up plan. Spontaneous with their money? Not! If they are making a purchase, it will last them a long time.
Which style are you? None of these styles is better than another. Each of them does, however, have a shadow side. For instance, an analytical style might get in so much fear about losing their money that they never make a move or go after a dream. A promoter style might spend every penny they have with no money in savings. A dominant style may use their money as manipulative tool. A steady person may get stuck in a rut and fear change that is to their benefit. It is important to know your natural style and work with it, not against it. It is good to implement some traits from other styles, when you see that yours is hindering you. But always stick to your values, no matter what advice you get or read. Remember that everyone has their own style and what works for you may not be tolerable for your mate or business partner. This is where blending styles becomes important. Stay compassionate to other's needs when communicating or taking action with money. If you want to know more about maximizing your authentic money style check go to http://www.masterpeacecoaching.com/disc.htm for info on a one-one coaching sessions and an assessment.
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