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How You Make Money Trading Forex

2009-04-22T01:27:00.000-07:00

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.

Bid/Ask Spread

All Forex quotes include a two-way price, the bid and ask. The bid is always lower than the ask price.

The bid is the price in which the dealer is willing to buy the base currency in exchange for the quote currency. This means the bid is the price at which you (as the trader) will sell.

The ask is the price at which the dealer will sell the base currency in exchange for the quote currency. This means the ask is the price at which you will buy.

The difference between the bid and the ask price is popularly known as the spread.

Let's take a look at an example of a price quote taken from a trading platform:

On this GBP/USD quote, the bid price is 1.7445 and the ask price is 1.7449. Look at how this broker makes it so easy for you to trade away your money.

If you want to sell GBP, you click "Sell" and you will sell pounds at 1.7445. If you want to buy GBP, you click "Buy" and you will buy pounds at 1.7449.

In the following examples, we're going to use fundamental analysis to help us decide whether to buy or sell a specific currency pair. If you always fell asleep during your economics class or just flat out skipped economics class, don’t worry! We will cover fundamental analysis in a later lesson. For right now, try to pretend you know what’s going on…

EUR/USD
In this example Euro is the base currency and thus the “basis” for the buy/sell.

If you believe that the US economy will continue to weaken, which is bad for the US dollar, you would execute a BUY EUR/USD order. By doing so you have bought euros in the expectation that they will rise versus the US dollar.

If you believe that the US economy is strong and the euro will weaken against the US dollar you would execute a SELL EUR/USD order. By doing so you have sold Euros in the expectation that they will fall versus the US dollar.

USD/JPY
In this example the US dollar is the base currency and thus the “basis” for the buy/sell.

If you think that the Japanese government is going to weaken the Yen in order to help its export industry, you would execute a BUY USD/JPY order. By doing so you have bought U.S dollars in the expectation that they will rise versus the Japanese yen.

If you believe that Japanese investors are pulling money out of U.S. financial markets and converting all their U.S. dollars back to Yen, and this will hurt the US dollar, you would execute a SELL USD/JPY order. By doing so you have sold U.S dollars in the expectation that they will depreciate against the Japanese yen.

GBP/USD
In this example the GBP is the base currency and thus the “basis” for the buy/sell.

If you think the British economy will continue to do better than the United States in terms of economic growth, you would execute a BUY GBP/USD order. By doing so you have bought pounds in the expectation that they will rise versus the US dollar.

If you believe the British's economy is slowing while the United State's economy remains strong like bull, you would execute a SELL GBP/USD order. By doing so you have sold pounds in the expectation that they will depreciate against the US dollar.

USD/CHF
In this example the USD is the base currency and thus the “basis” for the buy/sell.

If you think the Swiss franc is overvalued, you would execute a BUY USD/CHF order. By doing so you have bought US dollars in the expectation that they will appreciate versus the Swiss Franc.

If you believe that the US housing market bubble burst will hurt future economic growth, which will weaken the dollar, you would execute a SELL USD/CHF order. By doing so you have sold US dollars in the expectation that they will depreciate against the Swiss franc.

I don't have enough money to buy 10,000 euros. Can I still trade?

You can with margin trading! Margin trading is simply the term used for trading with borrowed capital. This is how you're able to open $10,000 or $100,000 positions with as little as $50 or $1,000. You can conduct relatively large transactions, very quickly and cheaply, with a small amount of initial capital.

Margin trading in the foreign exchange market is quantified in “lots”. We will be discussing these in depth in our next lesson. For now, just think of the term "lot" as the minimum amount of currency you have to buy. When you go to the grocery store and want to buy an egg, you can't just buy a single egg; they come in dozens or "lots" of 12. In Forex, it would be just as foolish to buy or sell 1 euro, so they usually come in "lots" of 10,000 (Mini) or 100,000 (Standard) depending on the type of account you have.

For Example:

You believe that signals in the market are indicating that the British Pound will go up against the US dollar.
You open one lot (100,000), buying with the British pound at 1% margin and wait for the exchange rate to climb. When you buy one lot (100,000) of GBP/USD at a price of 1.5000, you are buying 100,000 pounds, which is worth US$150,000 (100,000 units of GBP * 1.50 (exchange rate with USD)). If the margin requirement was 1%, then US$1500 would be set aside in your account to open up the trade (US$150,000 * 1%). You now control 100,000 pounds with US$1500. Your predictions come true and you decide to sell.
You close the position at 1.5050. You earn 50 pips or about $500. (A pip is the smallest price movement available in a currency).

Your Actions	GBP	USD
You buy 100,000 pounds at the GBP/USD exchange rate of 1.5000	+100,000	-150,000
You blink for two seconds and the GBP/USD exchange rate rises to 1.5050 and you sell.	-100,000	+150,500**
You have earned a profit of $500.	0	+500

When you decide to close a position, the deposit that you originally made is returned to you and a calculation of your profits or losses is done. This profit or loss is then credited to your account.

We will also be discussing margin more in-depth in the next lesson, but hopefully you're able to get a basic idea of how margin works.

Rollover

No, this is not the same as rollover minutes from your cell phone carrier! For positions open at your broker's "cut-off time" usually 5pm EST, there is a daily rollover interest rate that a trader either pays or earns, depending on your established margin and position in the market. If you do not want to earn or pay interest on your positions, simply make sure they are all closed before 5pm EST, the established end of the market day.

Since every currency trade involves borrowing one currency to buy another, interest rollover charges are part of forex trading. Interest is paid on the currency that is borrowed, and earned on the one that is bought. If a client is buying a currency with a higher interest rate than the one he/she is borrowing, the net differential will be positive (i.e. USD/JPY) - and the client will earn funds as a result. Ask your broker or dealer about specific details regarding rollover.

Also note that many retail brokers do adjust their rollover rates based on different factors (e.g., account leverage, interbank lending rates). Please check with your broker for more information on rollover rates and crediting/debiting procedures.

Don't know what the interest rates are for each currency? Here is a chart to help you out. Accurate as of 04/19/09.

Demo Trading

You can open a demo account for free with most Forex brokers. This account has the full capabilities of a "real" account. Why is it free? It's because the broker wants you to learn the ins and outs of their trading platform, and have a good time trading without risk, so you'll fall in love with them and deposit real money. The demo account allows you to learn about the Forex markets and test your trading skills with ZERO risk.

YOU SHOULD DEMO TRADE FOR AT LEAST 6 MONTHS BEFORE YOU EVEN THINK ABOUT PUTTING REAL MONEY ON THE LINE.

I REPEAT - YOU SHOULD DEMO TRADE FOR AT LEAST 6 MONTHS BEFORE YOU EVEN THINK ABOUT PUTTING REAL MONEY ON THE LINE.

"Don't Lose Your Money" Declaration

Place your hand on your heart and say...

"I will demo trade for at least 6 months before I trade with real money."

Now touch your head with your index finger and say...

"I am a smart and patient Forex trader!"

from: http://www.babypips.com/school/how_you_make_money_trading_forex.html

4 Tips For Small Business Owners To Stay Optimistic In A Tough Economy

2009-04-21T00:37:00.000-07:00

Businesses seem to be hitting a tough patch right now. While researching for this post, I stumbled upon this made-up term by a doctor, but I think if such a medical procedure DID exist, a lot of us would need it at one point or another :

Dr. Ralph Capone, the chief medical director of Excela Health came to talk about the new Strategic Plan and Vision for the health provider. First he had to add his own word of the week though, opticalrectumectomy. It is a new procedure in which a long pair of scissors is inserted up the rectum in order to snip the optic nerve behind the eye. It is designed to remove an individual’s shitty outlook on life.

Did you get the joke?

Here’s another snippet that’s in tune with what our good doctor is trying to say :

A shoe company once asked its sales team to name a country where there was ample opportunity for growth so they could expand their operations. They decide on a small african nation. The boss assigned 2 staff from their sales team to visit the country and generally gauge the demand for shoes in that country.

The first staff came back and reported that there would be absolutely no way for them to make money in that country because nobody wanted to wear shoes!

The second staff reported with excitement that their company could corner the shoe market there because EVERYONE needed shoes!

It’s the same half-empty, half-full glass thing. But what’s the point?

One of the best ways you can help yourself and your business (or even if you’re not a business owner) is to hang tough, and stay positive. I’ve said it before and I’ll say it again - Your mind is where 90% of your battles are won or lost. Despite everything around you telling you to have a shitty outlook on life, you need to stay optimistic. So here are some tips to help you avoid the negativity of today’s tough economy :

Stop comparing yourself to others.
Everybody has their own life to lead and everybody has their own race to run in life. You can’t compare yourself with the Smiths who have a condo in Bali, the Robinsons who manage a multi-million dollar company or the Lees who get to take holidays 3 times a year because their network marketing business seems to be printing money for them to your small home based food business and think you’re not as successful as they are. Sure, you’ve got to set yourself targets and wanting to be successful like Donald Trump isn’t wrong, but you’ve got to be realistic. There’s a saying that goes “Success isn’t measured by money, power or your position in life - it’s measured by the obstacles that you’ve overcome“. That saying applies to you personally as well as your business.
Think outside the box – because you can.
Because small businesses have less breathing room in a bad economy or a very competitive niche, owners and managers need to get creative in order to survive. Thinking outside the box doesn’t have to mean coming up with radically different approaches, but it does mean NOT restricting yourself to conventional methods.
Fortunately, small businesses are more nimble than large corporations and can initiate innovative (or unconventional) solutions without getting bogged down by layers of bereaucratic red tape. Small business owners can adapt quickly to economic changes by adjusting their plans - from budgetting to marketing. A smaller company can quickly tap into new markets, look for different sources of revenue, put non-critical projects on hold, or cut costs in resourceful ways.

So if you’re feeling discouraged, remind yourself that your independence and your ability to think and act outside the box are two of the most valuable tools you possess as a small business owner.
Review your value proposition.
If the economy is getting you (and probably all of the players in your niche) down, doing a bit of reflection can give you a morale boost. Think about it - you’ve run a successful business so far. You’ve built a customer base that trusts you and appreciate your product and service. You MUST have done something right, right? Reviewing the reasons why your customer base has stayed loyal to you is a great way to remind yourself that you have a great product or service. Go one step further and think about how you can add value to what you already have. Making this a goal can help re-ignite that spark of excitement in you and re-affirm your confidence in your business model.
When the economy get tough, it’s time to understand your brand, hone your unique value proposition and remind your customers what it is that you do best. It’s not about going on an ego trip, but promoting yourself can be the best investment you can make in difficult times, reminding yourself and your customers of the true value of your company and boost your confidence and your sales.
Be realistic, but optimistic.
While savvy business owners must be realistic about the economy, maintaining a positive attitude is critical. Try not to be influenced by others’ negativity, embrace your ability to be creative, and remind yourself of the true value your business adds.
Being a business owner means you’re going to come up against problems. That’s a sure thing - not a maybe. Some problems will be major and threaten to sink your ship, others will be minor bugs that just irritate you, but whatever the situation, you only compound the problem if you take a pessimistic view of things. Looking at the negative side of things just makes you more dissapointed, depressed and brings you closer to despair.

from: http://www.positivemoneyideas.com/blog/4-tips-for-small-business-owners-to-stay-optimistic-in-a-tough-economy/

Earn Money with your friendster account!

2009-04-18T12:08:00.001-07:00

Written by ALVIN JOHN FERIAS

How It Works

1. You Paste Ad Code On Your App.
Displaying Cubics ads on your application is as easy as adding a small piece of code on your application.

2. Targeted Ads Are Displayed.
Cubics immediately begins displaying highly-targetted ads on your application. Each ad is specifically targetted based upon each users demographic information and location.

3. Users View Ads - You Get Paid.
You get paid for every ad shown!

Getting Paid

Check or Paypal -- You Decide
You can get paid via check or via paypal, whichever you prefer. You can also set the minimum amount that you would like to be paid out and your prefered payment frequency.

How Much You Get Paid
The amount that you are paid depends on a number of factors including the type of ad you display and the quantity and quality of the clicks on your ads. Cubics is a CPM network, meaning that you get paid for every ad shown -- not just for clicks.

Advantages

Flexibility
Cubics allows you to rotate in your own ads or ads from another network along-with Cubics ads. For example, you can specify that you would like to show Cubics ads 80% of the time and another ad networks ads 20% of the time.

User-Level Targeting
Cubics targets ads based upon the individual details of each of your application's users. This results in individually targeted ads instead of ads just targeted by content.

Frequent, Quick Payments.
Get paid as often as once a week via Paypal. No need to wait forever to get paid.

What do I need to get started?

The sign-up process is relatively simple.
Go to the Publisher Account Creation page, fill in your information and hit the Create Account button. Cubics will require an e-mail, a name, a phone number and a mailing address.

You'll be logged into the system and sent a confirmation e-mail. From here you can select a platform (Facebook, Bebo, Myspace, etc.) and an ad size. Your code will be in the box at the bottom of the screen, just copy-paste into your app.

For more customization, you can select display colors for the ad. Changing these colors will update the code at the bottom of the screent.
Is there anything else?
By default, you'll be paid weekly via Paypal, but only for balances above $50. To change your payment schedule or to get paid by check, click on My Account and then Payment Settings.

If you are located in the US, you will also be required to fill out your tax information on the appropriate tab. Cubics (by Adknowledge) requires this information (equivalent to submitting a W9) to provide you with a 1099 form at the end of the year.

Earn Extra Money by Typing at Home

2009-04-18T03:21:00.000-07:00

Many individuals are searching for alternative means of earning money. Although many people earn a stable income from employment, needs and wants often quickly outgrow even robust salaries.

In other situations, households may be run by single parents with children. Because of responsibilities revolving around the children, single parents are often unable to obtain a second job, yet need a second income to meet the economic demands life brings.

Still, others find themselves in a situation in which they need a large sum of money quickly and need to earn money by whatever means they can find.

Some families have committed themselves to having one parent stay at home and oversee domestic duties while the other parent earns an income in a place of business. These families often would benefit from an extra income to finance life’s luxuries, such as vacations.

In all of these situations, there are options available for working at home. Many people are discovering the benefits of being able to type at home and earn extra income.

Those who choose to type at home can make more than they would working a standard eight hour job on a daily basis. In fact, many people who type at home start on a part-time basis and quickly realize that they are better off financially and emotionally by typing at home than being employed by someone else.

If you have an interest in typing at home to earn either extra, or primary, income, the steps to follow are fairly simple and straight forward. Investigate the various companies on the Internet who offer assistance with starting a type-at-home business. If you are computer savvy, you may even be able to figure out the process on your own without much difficulty.

However, if you do need the assistance of professionals, be prepared to pay around $50 for the time they will spend training you to type at home. Once you have established your type-at-home business, you are ready to begin.

One of the best and easiest means of typing at home is by writing advertisements for various web sites and companies. These websites and companies will send you keywords that need to be included in the advertisements that you write. Then, you will compose an advertisement that includes these keywords.

The keywords are very important. If they are not included as requested, the web site or company will reject your advertisement and you will need to restart the process. In order for a type-at-home business to be successful, participants need to commit themselves to completely fulfilling all the requests of the companies and web sites they work for.

Aside from omitting keywords provided to your type-at-home business by the companies and web sites who hire you, most advertisements are accepted without any difficulty. Just follow the web site’s, or company’s, specific requests and your advertisement will not be rejected.

Once you have completed the advertisement through your type-at-home business, you will be prepared to submit it. Generally, submitting the advertisement is the easiest part of the type-at-home process.

All you need to do to submit an advertisement is log onto the specific data entry site, find the area of the screen that says something to the affect of “submit advertisements,” and then put the advertisement you wrote onto the web site.

The final, and generally most rewarding, stage of a type-at-home business is receiving payment. Depending on the length and difficulty of the advertisement you have written, you can expect to receive up to $50 for your services.

If earning extra income is either a necessity or a desire, be sure to further investigate type-at-home businesses. There generally are not any start up costs unless you choose to seek the assistance of a professional, and the flexibility of such a business fits easily into most lifestyles.

*** About The Author ***
Information Net Source Corp. has been helping people find the perfect work at home jobs, businesses and opportunities for the last 9 years. Combined we have over 40 years telecommuting experience. You can visit us on the web at http://www.workathomedigest.com/type-online-forms.htm

Why Come To Us For Work At Home?
Are you tired of all the work at home job opportunities that have not met your needs? Have you wasted valuable time and money without getting any real results? We currently have thousands of work at home jobs and opportunities available in our programs for almost every interest. We have helped people in their search for work at home jobs for over nine years. By far we are the largest and most complete at home jobs website we know of anywhere. We are dedicated and committed to helping those seeking legitimate work at home jobs and have helped thousands of professionals find REAL Legitimate work at home with our programs.

Let us share our work at home experience with you and guide you towards the right work at home position.

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article within your website or newsletter as long as you leave the article fully intact and include the "About The Author" resource box.)

How to Make Money with Facebook

2009-04-18T03:08:00.000-07:00

The rise in popularity of the soon-to-be number 1 social network site Facebook is due to a combination of two things.

1. Formerly a hangout only for high school and college students, Facebook allowed anyone to join in September, 2006.

2. In May, 2007 Facebook opened up it’s network to developers.

By opening up it’s network to developers Facebook has provided a way to make money right on the Facebook web site. Something you can’t do on MySpace. The only way to make money off of MySpace is by attracting users to another web site outside the MySpace community and making money on that site.

Below is an Alexa traffic comparison of the top two social network sites. Bold prediction: It won’t be long before Facebook becomes more popular than MySpace.

Facebook: a developer magnet

Since opening up it’s network to developers Facebook has seen a flood of new applications created. In fact, over 1000 developers are signing up every day.

Addonomics, an open analytics platform that tracks Facebook application growth and provides stock-market-style analysis of Facebook features says that as of today…

There are 342,015,965 installs across 5,118 apps on Facebook.
These applications were used 23,360,190 times in the last 24 hours and have a combined valuation of $249,800,000.
Facebook has approximately 40 million Unique Active Users in the past 30 days and a valuation between $10Bn and $15Bn.
This translates to between $250 and $375 per active user.

7 ways to make money with Facebook

In The Facebook Economy Business 2.0 outlined a few ways application developers are making money off of Facebook.

1. Selling advertising space
Facebook apps with large audiences can make a lot of money selling ad space on their page through ad networks like Lookery, Userplane and Google Adsense.

2. Sponsorship
Advertisers are lining up to sponsor popular Facebook applications. The Food Fight! application which lets you throw virtual food at your friends is soon to be serving up virtual chicken wings from a major food chain. Tyson???

3. Sell goods and services
The future of Facebook applications is utility, not fun. Facebook application Band Tracker searches upcoming concerts and links to ticket vendor web sites. Soon, it will be common for people to make purchases from their own Facebook pages.

Lee Lorenzen, CEO of Altura Ventures provided us with the following four ways to make money with Facebook.

4. Write a Facebook book
Iâ€™ve heard about a number in the works and that means advances/royalties for authors.

5. Write a Facebook blog
There are already a number of good ones beginning to cover the Facebook eco-system but there is room for more. Once you have an audience for your blog you can start selling ads and sponsorships.

6. Develop Facebook apps as a consultant
Good / great Facebook developers are in very limited supply and so the demand is high. Iâ€™ve heard of hourly rates in the $200 per hour range for folks who can architect, write and deploy viral Facebook apps.

7. Sell your Facebook app
If you can create an app on Facebook, get it to 10K to 100K users, harvest some ad revenue from it by partnering with AdBrite for CPM/CPC ads, offer Cost Per Install ads via Adonomics and you provide data to get an Adonomics certified valuation, then you will be in a position to get top dollar for your application should you decide to sell it.

At the moment, the big winners of the Facebook jackpot are application developers. The big losers might be other social networks like MySpace, if they fail to open up their networks.

from: http://www.virtualmarketingblog.com/make-money-with-facebook/