Dec 1

The Way to Sustainable Forex Success

Posted in Forex, General

Trading forex with a lot of money is a mentality that is a possession of the ignorant investors. Yes, it is erroneous to think that huge capital investment is needed to make one a successful forex trader. Capital consideration is among the least requirements an investor should bother about in trading forex successfully. Ask thousands of people who have lost huge capital in foreign exchange or failed in forex trading, insufficient capital is at the bottom of the list. Lack of sufficient capital however has one disadvantage; it slows down progress. However, with the right amount of attitude (patience, self control, good information base) one can attain a good success. Forex is a versatile market, marked with erratic up and down movements. If the right attitude is not in place one can easily get lost in the frenzy.
Forex is a double edge investment. It is like the proverbial double edged sword where you get advantages inside disadvantages. This means that the don’ts in forex can also be converted to a success trigger; for instance in the case of capital. Inasmuch as capital is a sufficient requirement for success in currency trade, it can also be adopted strategically for forex trading. Small scale capital is often advice by professionals as a one stop live trading strategy. It helps to build a sense of adaptability needed in currency investment, something demo trading cannot provide. Yes, demo trading may prepare one in term of trading and knowledge execution, but it can never build seriousness, and ruggedness that small capital allowance adopted for live trading can build. That is why in some forex platforms a start up capital as low as $10 is offered as a start up training after the initial demo training. Combine information, demo trading strategy, capital as low as $50, and the adoption of the right attitudes, success in foreign exchange is imminent.
Success in forex trading is much to do with mastering self, than capital. So if success is the primary interest of a forex trader the first thing to master and conquer is self. For more on this consider the qualities of a top forex trader.

Qualities of a top forex trader

Education

Forex is a complex investment and at the same time a very simple investment. Ignorance makes simple things appear complex and difficult. So to put off the mystical mask from currency trading, break the mask, get educated. In the internet there are many portals that teach about trading forex, some free some paid information. Ignore the get rich quick ads like: the robot trading ads. Gather all the necessary information read it, ask questions about what you do not understand in the forex forums/groups, etc. Once an amount of information has been gathered the next is to demo trade.

Conquer self

An important requirement of trading forex is to learn to conquer self. Greed is the number one attitude that can mar one success in trading forex. It is the Achilles heels of any forex traders even the so called forex trading gurus still fall victim of this habit. The reason is because it is very intoxicating. The idea that one can win large when a certain trade is place tends to entice traders to trade more than they should, what follows loss – failure in all its glory. No matter the amount of expertise, know-how, capital etc, if greed is not dealt with, failure will become a constant headache.

Optimism

Think of success, because the end of ones endeavor is a consequence of his or her believe; negative thinking is destructive, while positive thinking is constructive. So, while the former destroys ones investment, the later builds up investment and with patience success is assured.
Forex trading is again a complex investment but only to the ignorant, so prepare yourself.

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Dec 1

A few tips for penny share investing

There exist numerous and diverse decisions that must be reached before one starts investing in penny shares, other wise known as cent shares. The reason is because a penny share is basically speculative by nature hence making the wrong choice is tantamount to incurring great monetary losses. However, if one pays attention to his or her senses and follows information to the later, there is a possibility of earning a lot of income through cent share investments.
Identifying the best type of penny share to invest into is a very difficult task, because there are so many of them to pick from. So the challenge is how to choose among the numerous penny shares trading. If the desire is to make the right decisions regarding penny stock trading start from generating information from the company advertising the shares. What is there reputation – is it a strong company? Do they have a strong management team? What about the organization goal, mission, etc. These pieces of information will create a good ground for investors to start; remember – information is power.

For more penny stock investment triggers please read on.

Research

Research is a tool the wise business person adopts in gathering very relevant information about a certain interest and in this case – the viability of penny stock trading. The assignment is to locate a lucrative cent stock, so how do you  do this? Get online and search message boards, forums, groups or any other online information portals treating the subject in question – Penny shares investment. Look out for shares doing well at the time, read about people’s view concerning the shares. Don’t stop at reading what others have to say, ask questions; do not be afraid of asking stupid questions, no one will laugh at you.
Still in the spirit of research, another relevant way to go about it is to find out the names of different companies offering penny shares for sale, and conduct information searches about them. While conducting your research look out for bogus claims, do not fall victim of one.

Consultancy

Seek professional financial advice. There are consultancy firms available for investors; they will assist in conducting financial analysis of the company to know the level of stability, ratio of assets to liability etc. If this is out of the range of the investor’s financial budget, then consider conducting the financial trading analysis of the penny stock company. In the process of personal analysis, use the advantage of newsletters and other information sources that will assist in finding out the penny shares that are worth investing into, and which one should be avoided. This strategy has one fundamental advantage: it automatically narrows down investors choices of penny stock investments.
These tips should help one figure out what penny shares to invest into. But, yes there is always a “but” – remember that time is a good friend to any investor, especially one that uses it wisely. How can time be used wisely in investing? A wise investor must create time to gather information, acquire knowledge, conduct personal or professional analysis and self evaluation, regarding the penny shares trading.  But on the other hand if these tips are ignored, the prospective cent shares investor makes himself (or herself) a prime target for failure. So, if there’s a thing that must never be forgotten it is to slow down and think more than acting and allow all actions be a product of careful mental exercise.

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Dec 1

The proposed free trade association between the EU and Russia

Posted in Politics

Free trade is a business policy that allows businesses or persons of business to operate or transact financial endeavors with little or no interference from the government, providing profits from goods and services. Under a free trade association the benefiting individuals, companies, regions, states, or countries engage in a contractual trading agreement while enjoying the comparative advantages. Benefits includes: free tariffs, subsidies, non tariff barriers, free entry and exit etc.; an example of which is the Canadian – United States- Mexican NAFTA free trade agreement. Another example that is still in the offing is the proposed EU and Russian free trade agreement. According to the Prime minister of Russia Vladimir Putin – he wishes to see the commencement of a free trade zone between the European Union and Russia; he expressed his vision in a German newspaper as a “unified continental market with a capacity worth trillions of euros”. Will this vision see the light of day, what will be the likely deterrent to this vision?

Before commencing with the possibility of a trade agreement between EU and Russia, the features of trade zone will be elucidated to create a better understanding of the term free trade.

The idea of free trade did not start with the prospect of the EU and Russia; it has been in existence for as long as the 5 centuries in Europe, in form of mercantilism which was opposed by two great economists: David Ricardo and Adam Smith. Inasmuch as, the story of free trade is long and old, one fact remains – it is still obtainable and highly effective today. Below are some features that free trade agreements have.

  • Trading of goods or services without taxes or trade barriers.
  • Nonappearance of trade bias policies that offers undue advantage to domestic business more than other businesses in the same market, for example: taxes and regulations.
  • Free access to markets.
  • Open access to market information.
  • Discouragement of monopoly and oligopoly.
  • Free mobility of labor between the contractual entities.
  • Easy mobility of capital between the entities concerned.

The above are some of the characteristics and motivations behind any free trade proposition. With this knowledge the Russian prime minister’s free trade is clear. The question still stands; will this intent become successful?

The gains or benefits that this proposal stands to gain are very enormous. According to the Several EU and Russian officials the free trade coalition will deliver a new wave in industrialization throughout the European continent in aspects regarding the car, shipping, aviation, space technology, pharmaceuticals, medical technology and nuclear energy industries.

It is a lofty goal to establish free trade agreements between these two entities. Merkel, the German chancellor who on Thursday 25th of November 2010, asserted the concept of free trade, but went on to say: “I have to pour a bit of cold water on it”. Her reason for dampening the free trade motive is generated from the fact that “the steps that Russia has taken recently do not point in the right direction”, referring to the Tariff policy from Russia and the trading bloc in Moscow with Kazakhstan and Belarus posing a possible obstacle to the idea.

Well nothing good has ever manifested without barrages of disagreement, with much push and correction the Russian Prime minister’s Vision might just turn to reality.

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Dec 1

Steps to identifying market share

Posted in General

Knowing the extent of a market share provides a great basis for growth in most businesses. Before a company is established the onus falls on the founders to organize primary investigations as to the possible market share the company’s services or products will have. This knowledge creates a ground for proper strategizing, planning, and all the organization implements that ensures growth and success. A market share is therefore a segmented market consisting of buyer’s interest in a particular product. A company might want to work up a good market share for their products or services, because possessing a greater market shares indicates profits; and good profits is a good indicator of a well established company.

A good business man and even a commodity investor should have a good knowledge of market shares for his or her product before investing. This is because market share determines gains and profits, and since all business motive boils down to making profits, this concept applies to a wide range of business establishments. For instance if a selected area has a population of 1 million people and a certain business man wishes to set up a candle making business, his prior interest is how to catch the interest of at-least 70% of the population; but the problem is that there are two to three competitors already selling candles and this means the market share has been overtaken by his competitors. What does he do? He runs a promotion in order to acquire more market shares in his region; well that is a likely possibility but the question that begs for an answer is how he can identify the market share in the first place.

1.    The first step is to decide which product or services one is interested in selling. Without this knowledge it will not be possible to identify other similar products or services already in existence. This knowledge will be required to measure a product against competitor’s product, as well as a product’s response in that market.

2.    Target market area. Find out the target market area; this may be an urban, rural, regional area etc. Note that the purpose of evaluating market share in a local area where there are very low populations, and probably less competition might not necessary.

3.    Decide which measure to evaluate the market share; is it in units or revenue? Evaluating in units refer to recognizing a given product or service in terms of quantity sold. In the case of measuring by revenue, the number of profits generated over a period of time is the key indicator examined.

4.    Compile a company’s sales account for the product or services along with revenues and units. This will give you the idea of the condition of the product or services in the market and how well they are doing.

5.    Conduct research based on these findings in the prospective industry the product or services belongs to. This information can be obtained from business magazines, trade journals, and other financial publications.

6.    The next stage is to discover the market share of competitors. This shouldn’t be difficult; all that has to be done is to conduct a survey in order to obtain an estimated value of the competitor’s market share. If it is a public company this is made easier, as such results can be found in the company’s annual reports.

Gaining a good market share is important for any business or investor because it determines the company’s profit level, and also provides information of the company’s efforts and sustainability in a given market.

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Dec 1

Penny shares: definition, types, and reasons for trading penny shares

Posted in Stock Trading

There is no definite meaning of penny shares; it can only be recognized its description and designation. As the name implies, a penny share does have a link with shares, it is a category of shares that have a specific low value. How low must the value of a share be before it can be described as a penny share? Some have attributed different values, but most classify any share that is lower than a dollar as a penny share. What is the relevance of this type of share? Does trading in penny shares offer more advantage than trading the blue chip shares?

Financial analyst have provided different sensible reasons why people should invest in penny shares and investors are already rushing to embrace the possibility of earning stable income from trading penny shares.

Types of penny shares

New issues share: This category of penny shares falls under the companies that issues penny shares as a young company operating for a short time or have recently become public. The investment importance here is that the share price has a limitless elasticity and as long as the company does well it is set to increase.

  • Recovery shares: This involves company that can be regarded as a blue chip company who at one time or another, enjoyed growth signified by increase high share price, but for some reason, the company falls, such a company in the process of re-strategizing for growth will bring down their share price purposely to attract investors.
  • Cyclical shares are denoted by fluctuating company share prices in response to the up and down movement of the economy.
  • Defensive shares: This type of share is not sensitive to the economic situation. Unlike cyclical shares it maintains a rigid price level no matter the change in economic conditions. This is because some companies sell products that are generally inelastic; meaning change in price does not always lead to an erratic (sometime no change at all) change in consumers demands.

The reason for the study of the types of penny shares is to know and understand the categories of different shares and how it may influence penny share trading. Let’s take a look at recovery shares. This type of share is by far the most promising out of all the different shares because it affords investors opportunity to become a part of a trusted and reliable company, especially if such company crumbled as a result of external economic factors that had nothing to do with brand or company product.

Penny shares prices still possess high elasticity and as such are yet to reach a particular level giving an investor a great earning potential with very little at stake; literally, just pennies.

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Dec 1

Investing in Shares

Shares refer to the number of stocks, or securities in a company that is often released for sales to the general public. Shares provide a level ground for people to become partakers in a company’s glory: profit and growth etc. On the other hand it also provides a level and equal opportunity to partake in losses that company may encounter in a period of time. So generally buying a stock from a particular company means having shares in the company’s gains and losses, and it is signified by a share certificate or ownership certificate. A lot of people have bought into the idea of owning shares in companies, but very few really possess the necessary knowledge of salient issues like: how shares are issued. Their interests lie simply on just buying shares and waiting to receive dividends and hope to never suffer losses. This article deals with relevant information that all share holders must have and they include: types of shares and how shares are issued in a company.

Types of shares

Ordinary shares: Another name for these types of shares is equity shares. Owners of this share do not enjoy the preference concerning payments like: dividends and capital repayment. Their share dividend is not regular and it depends solely on the profits made from the company. Equity share holders have a right to a company’s assets in the event of liquidation but that is after the bond holders, debt and preferred share holders have been paid.

Preference shares: These types of shares can be described as a favored share, because the holders of this share are given preference regarding payments of dividend and repayment capital. However, preference shareholders do not enjoy voting rights, but they do have preference over the equity share holders. They cannot vote in regards of things affecting the company but their own interests. Therefore it is better suited to investors who wish to have access to their dividends and refund incase of liquidation.

Deferred shares: These types of shares are exclusively owned by the owner or founders of the company. Another name for a deferred share is founder or management shares. They receive payment of shares after all other shareholders have been offered the standard dividends.

Bonus share: From the meaning of the word “Bonus” the meaning of bonus share is easily deciphered, and it means shares by bonus or gifts. This type of share is given as a free gift to existing share holders in the company

How shares are issued in a company

The process of issuing shares in a company is one replete with protocols and it begins with the right to sell shares. Not all business ventures have the right to sell shares, what qualifies a company to sell shares is one: They must be registered as per the1993 company act as a company or corporation; this avails the company to the right to offer shares of the company for sale. Secondly, the company after registration will specify the number of shares available for sale, and after a decision is reached each company lodges with the registrar of companies and begins to issue shares accordingly.

There are many types of shares, each having vital importance to the operation of companies up for partial ownership by private individuals. With some basic understanding of these intricacies one can make suitable investments in corporations that will continue to grow and profit over many years and decades, and in some instances even centuries; McGraw-Hill is an example of an international powerhouse that has made its share holders very wealthy over the past 140 years. If one does the necessary research, anyone can pick a rising giant.

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Dec 1

Companies that Strike Gold

Posted in General

Striking gold is a figurative term used to describe a company that has recently earned a breakthrough in their operations. It usually describes out of the world achievements. The phrase “strike gold” originates from mining operations, especially gold mining. It takes in cognizance the challenges involved in mining and the euphoria that follows the success. So based on this fact this article will celebrate two companies who have struck gold.

First on the list is a company that “really” struck gold. For Pvt Exploration Company the phrase “striking gold” is not just figurative but true. They discovered gold ore in 300 acres of land in Mangalagatti.

This company, PVT Exploration Company, has been working on this since 2003. Mangalgatti is a small village having two hills that covers almost 400 acres of land. In order to begin mining, the company had to receive authority from the government. The effect of this mining was very chaotic for the local population; as a small village was soon over run with investors from all over the world.

The other company on the table for celebration comes from a former golf  pro. Jon Haveman has been in the golf business for a while, playing as a pro for a golf club in Byron Township, MI. and for Wuskowhan players in port Sheldon. He, however, diverted into business in 2006 and registered a company – Lakeshore Candle Company. The company is primarily in the candle production and selling business, operated from a fifteen thousand square foot plant in Zealand Michigan.

For a man who moved from golf pro to a candle producer, Jon Haveman is sure proving his mettle in business as he certainly struck gold when the company he took over, introduced over three hundred candle fragrances, and expanded into different candle sizes and other product lines bringing in a 30% increase in business, and is hitting sales records in an industry that has greatly suffered in a recession.. It should be noted that Mr. Jon Haveman bought the candle company in 2005 because they were going out of business and it was his wife’s favorite candle.

Jon Haveman’s story might not compare to striking gold in the real sense of the word, but it is actually a story of success, and that is what striking gold is all about – outstanding achievements.

Striking gold in commodities market

Investors have the power of hitting it big in the commodity investment market and many individuals and companies have been smiling to the bank from these efforts. Investment in precious metals like Gold and other smart investments have turned many to millionaires and the numbers are growing.

So it is very possible to strike gold in any business endeavor, it only requires taking calculated risks, information, wisdom, resilience and power to succeed. In conclusion, gold can be struck anywhere, not necessarily in a gold field, but in anything in life has the potential to increase one’s wealth; even if it is just selling candles. So if you take your investments serious, and do the necessary research then you can strike gold too.

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Dec 1

China’s economy, and their principal attempts to take over gold and Forex markets

Posted in Forex, Politics

Sixty three years ago China labored under the heavy burden of, what then economist described as, hyperinflation. A condition signaled by a high cost of living in the face of degrading currency. Today, due to resilience, series of economic growth, strategy implementation and focus; China is a country that has grown to be one of the richest country in the world, with a purchasing power parity per capital income of $31,834, and a gross domestic product of $735,997 billion (2009 estimates), and a consistent 8% economic growth for over five years. In-line with the economic goals of China, this is a  country on the dawn of 2010 disclosed its economic blue print, which is to target and maintain the growth rate of 8% per annum. The blue print includes: buying up gold reserves with the goal of ousting the United State’s currency from her present state of glory. Can this ever be achieved? To answer this, the Chinese galloping economic trend will be evaluated alongside the United States’.

For a country that has fought and won the war of economic depression rising to a full blown stable economy, surely achieving the goal of positioning the Yuan to cannibalize the USD shouldn’t be difficult, especially in the face of the crumbling economy the US faces.

Chinas gold reserve target

Gold reserve is one of the targets that China has adopted to achieve its aim of usurping the USD from the number one position and replacing it with the Yuan. By embarking in an aggressive intent to build up its gold reserves the country is set to achieve its aim. Before then, it must be mentioned that India had previously purchased two hundred tons of gold from the IMF (international monetary fund). This perhaps gingered the Chinese goal and it is speculated that with their current move they will eventually buy off the remaining gold from the IMF just to upgrade their reserves. The strategy to achieve this lofty goal is attached to allowing private companies purchase gold from the international market. The question now is, will the Chinese succeed in their quest of ousting the present world power (USA) from their position?

The answer to that question is yes. The answer is not meant to be Chinese bias, but based on the concept of change. Nothing really lasts forever and the United Nation’s attractive position is one of them. Looking at recent world history, about 5 super nations have come and gone; so also have countries like the United Kingdom (that formerly occupied the lofty position that US is presently occupying) overtaken and pushed out by others like the USA. What does this trend signify? Replacement; a country somewhere, somehow is set to take over this desired position, but the question is: which country? No one knows which country will achieve this for sure; however, China is certainly angling itself to be the prima Madonna.

Set China side by side with the USA, the tell tale signs will be magnified almost to a reality. While China is recording constant increase in their economy, the US is experiencing a plummeting economy, which is suffering from severe labor hemorrhage. And although  China’s economy is producing an increasing 4% employment rate and is found wanting in many regards in comparison with the US, but with the evidence of China’s resilience, and obvious increase in economic stature along with other international agendas, China is set to take the world by storm.

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Dec 1

Global Issues Affecting Forex Trading

Posted in Forex

The Forex exchange market is a huge market that involves the trading of currencies over a decentralized platform. The currencies traded are from different parts of the world. It is the driving force behind international trading; without it the convenience and ease associated with countries trading with each other would not be possible. Forex as a marketing mechanism did not just start today. It actually took over from gold trading. Due to increase in awareness and other factors, the Forex was transformed from centralized business concerns and exclusively operated by mega countries and companies to be a more decentralize platform involving medium and small scale investors. The movement of Forex trading is largely dependent on several core factors, which have variable and invariable influences that take the market up and down depending on the trend of each currency.

There are several reasons why the movement of currencies must be evaluated and monitored. One is to obtain a decisive buy and sell signal. The purpose of any investment is to make money, and Forex trading is no difference. In business, profit is earned when the difference between total sales and cost is established. Same goes for Forex. It is traded in currency pairs like: Euro/Usd, Usd/Yen, etc. These countries are constantly in upward and downward movement; a condition triggered by external factors. A well grounded knowledge of these factors will lead to a good possibility of predicting the right movement of a currency. So the study of the factors influencing Forex helps to produce a profitable investment.

Since most of the factors that lead to the rise and the fall of currencies are entrenched in the macro-economic system of a country, studying it will lead to the development of the country. For example: if the gross domestic product of a country increases it will add value to its currency. So to avoid fall in currency, these countries have to keep a watchful eye on international economic trends.

Factors that influences foreign exchange

  • Economy: A country’s economy is the platform for wealth creation. And it is impossible to talk about wealth creation without the mention of: products, services, profits, prices, etc. The interaction of these elements yields profit or loss, and in a macro setting – fall or rise in the GDP, which directly reflects on the currency.
  • Politics: The political outlook of a country is another highly relevant element that can affect a country’s currency value. A stable political scene creates room for peaceful coexistence and most assuredly its investing possibilities.
  • Market conditions: This factor relies on the perception of a trader or investor on a particular country. This procedure is based on a trader’s view about a country’s economy and the possibility of investing in the economy.

Forex trading is influenced by factors that leads to it’s up and down movements, and as a trader whose main interest is to make money; evaluating, and monitoring these elements will ensure profitable foreign exchange trading.

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Dec 1

Predicted Platinum Prices for 2011

Platinum has diverse uses making it very valuable and expensive. Platinum is a precious metal and as such is tradable in the commodities market table, and unlike gold or silver, platinum does not enjoy much popularity even though it is more expensive than the two put together and as such, platinum is ripe for investing. On 11/24/2010 the price of gold was $1372.60/oz, platinum – $1658/oz, and silver – $27.57/oz. The price of platinum is set to increase in 2011 and it’s as a result of certain factors hinged on the uses.

Platinum is ductile, malleable and soft in nature and as such can be use for jewelries and wire. It can also be use to produce equipment used in laboratory work, electronics, thermocouples, coating agents, dentistry, automobile production etc. It is used in several scientific applications, one of which is a new medical breakthrough that is applied to spinal implants that consists of platinum. This discovery may assist paraplegic people in exercising their limps. This medical discovery by researchers uses small electrodes from platinum foil that stimulate muscles and tendons.

As can be seen from above, platinum plays a great role in the medical industries accounting for one of the major reasons for the high cost of platinum over major precious metals like gold. The question that will be considered is: will the high cost of platinum be sustainable? Will the coming year of 2011 bring another increase in the price of platinum?

Predicted platinum price

As the New Year fast approaches investors and stakeholders in the financial world are busy issuing different speculations as to the prices of commodities. What is the condition of platinum price, has it any likelihood of increasing or decreasing?

In the dawn 2000, the price of platinum dropped severely due to the decline in certain financial sectors, like car manufacturing, platinum took major hits in commodity values. However, in 2009 and 2010 the increase of auto catalyst in vehicles was predicted to increase especially in the Chinese car industry. Will this trend continue in 2011?

Financial professionals have speculated a boost for the price of platinum; the reason is due to the increasing recovery of the automobile industry which pushes the need for automotive catalyst costs to high heaven. The price of platinum and palladium is set to increase in the next 6 months into 2011.

The automobile sector is not the only price trigger for platinum in the coming year, other factors like the interaction of gold and the USD, and the predicted decrease in the mining of platinum from two major suppliers: South Africa production is set to fall by 1%, while North American production is set to fall by 19%, this combined with the increase in demand for automotive catalyst systems is set to shoot the price of platinum to a predicted $1,900/oz over the next six months.

Predictions for platinum prices over the next year are set to rise in part due to a recovery in the automobile industry, and fall in mining of these metals. With the current state of such volatile commodity markets, this is the perfect time to stake a claim in this precious metal.

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