Money Management in Currency Trading

Money Management in Currency Trading (Part I)
by Ahmad Hassam

Many forex traders start trading live before understanding and learning good money management rules. Develop a few good money management rules and practices them on your demo account before starting live trading. Developing your money management rules mean how much of your money, you are willing to risk on one trade. It also means determining how many contracts per trade your risk tolerance allows? The important thing when you start trading is to learn how you can improve your investment results by making small changes and tweaks to your trading strategies. Good money management rules can make a huge difference between becoming a successful investor in the long run or an unsuccessful one that blows up the account in a few weeks. Have you ever played poker or watched it being played online or on TV! If you have then you will never see good poker players play all their cards on a single bet. Good poker players know that by risking only a small amount of their money on a single bet, they can win or lose but will still play the next hand. If they put everything on the table on a single bet, they will have to be 100% sure of winning, an impossible thing. You can never be 100% sure. Life is the game of probabilities. Forex trading is far more complicated than playing poker. You are dealing with hundreds of unknown variables that affect the markets instead of only 52 cards. To succeed in forex trading, you must understand and implement the money management principles.You can fall into many pitfalls while trading. As a trader you should be constantly guard against two emotions. Greed and fear! In case you are on a winning streak, you will become greedy. You would want to risk more to make one big win and you would want to strike it rich in one or two big trades. This will make you risk more and more of your money on a single big trade. When you will lose a trade, you will become afraid risking your money on the next trade. Fear will take over. It will impair your decision making. It will make you lose confidence in your judgment and decision making. Lets see how fear and greed can affect your trading.Lets suppose you have a run of successful trades that makes you very happy. You are feeling overconfident. You are not satisfied on risking only 2% of your account on one single trade and you want to risk more on the trade. You are thinking, the more you have in a trade, the more you will make if you are right. You are willing to increase your risk to 5%. You increase it to 5% and you win. You increase it further to 10% and you once again win. You finally decide to put 25% of your account at risk on the next big trade, but misfortune strikes all of a sudden. Your successful run comes to an end and you lose big.Suppose you had a $100,000 trading account and you had foolishly risked 25% or $25,000 on one trade that you desperately wanted to win. Losing $25,000 means you have only $75,000 in your account now after your loss. How much you need to make to get back the original balance of $100,000; you need to make $25,000 again to go back to the original balance. It means you will have to make 25,000/75,000= 33%, so you risked 25% but now you will need to make 33% to get back your original amount.Many investors once they lose a trade try to risk more to recover their original loss, ending up losing more and more. Very soon those investors destroy their accounts and are out of trading forever. There are other investors who try to reduce risk even further on making a loss; eventually they divorce themselves from any opportunity for meaningful growth in their accounts.

Internet Businesses

Internet Businesses

by Owen Jones
Recent market surveys indicate that the growth rate of Internet purchases has been incredibly high over the last few years, and despite the conditions of the actual world financial crisis that made the online orders register a corresponding decrease, things still look pretty bright for the Internet. However, from this perspective, people who promote a service or product as part of an Internet business have lots of things to do before they can see the money rolling in.E-retailing is still a profitable Internet business, but heavy promotional support is generally necessary to face competition and generate profit. Behind the comprehensive online web catalogues that advertise us all sorts of things, there lies a huge amount of work to support not only the web page as such, but to run continual market analysis and have a realistic picture of where the business stands on the e-market. A pertinent example here would be that of analysing the first-page search results on engines like Google and Yahoo.The Internet business with the highest likelihood to complete a transaction is the one that appears first when a searcher types a keyword in the search box of the search engine. Consequently, the big competition between the various companies active online is to have a good page rank and a proper representation in the search engines. This can only be done by the professional support of the web site and constant monitoring of the site statistics, according to the number of site visitors and the resulting transactions.So, just like as real-world money-making opportunities, an Internet business needs thoughtful planning. Thus, one targets the niche market, gathers data on the competition, ensures good resources, attracts finances and funds, if necessary and takes the measures that build customers' loyalty. Moreover, depending on the sort of product or service offered, the Internet business could require a strategic alliance with other partners.Therefore, for every Internet business idea you get, you have to learn whether there is a market to address. Then, if you lack the budget to invest, you have to seek other financing opportunities to support you entrepreneurial aspirations. And last but not least, you should never neglect web site investment. The design and full-time maintenance that keeps your Internet business running could easily cost you a small monthly mint. Nevertheless, the website is your interface, the place where the customer gets to see your product or service, and the impression has to be good. Good luck!

Learn more about franchise

Learn more about franchise

Most of you are not aware that the franchise can give you lots of money and could be increased more rapidly than other species. As a beginner, your company noticed by renowned producer and distributors to get it.

Definition of the privilege of trading: This is where there is a manufacturer of brands and products, enabling them to directly to a third party for the distribution of the company and the marketing and sale of products to meet all issues and promotion, as if they were not part of the plant. These third-party known as the concession.

This is the kind of work is the manufacturer who has the right to privilege and produce the goods and the distribution channels to market, preferred by the independent third party business. This independent third party distributor of products of excellence, which is called the dealer. These two completely independent of each other and their relationship with the product is sold to consumers. But it's not as easy as it seems. It is a complex business model requires the development of evidence as the commercial legal work.

Before you drown in the head of this type of work, have a plan of action, must also ensure that you have set the foundations for this work is solid and able to withstand the financial pressures, such as crisis economic environment. Remember that the concession, there is no guarantee that you will be able to sell the products of industrialization. All you need is to rely on the strength of the brand on the market. Therefore, it is very important before entering, and analyzing the product, competitors in the same line of commerce, among other factors.

In the absence of a payment to the dealer to deal with the agreement, payment of post-sale, as a concession, you need to have all included so you do not miss the objectives and delay in the disbursement of funds. Products must be able to meet the demand for this, it should be able to compete with the alternatives on the market in order to survive. And quality of services and sales and good will of the people and to the point of sale advertising and admiration for you and return to customers.

Be aware of the responsibilities will be for you as the owner of the concession or before signing any agreement. Carefully read the fees and will be ready to start working.