Tag Archive | "investing"

Investing In China: Sample Local Investment Incentiives (Henan Province And Zhengzhou Municipality)

Investing In China: Sample Local Investment Incentiives (Henan Province And Zhengzhou Municipality)

Additional incentives offered by local and provincial governments significantly increase the foreign investor’s incentive package. They tend to become more generous as one moves westward from the coastal provinces to the heavily populated interior, this allowing the foreign investor to cash in on China’s fierce domestic competition for foreign investment. There are national regulations, however, that are applicable to the tax incentives that a local government is entitled to offer Foreign Invested Enterprises (FIEs), and if these limits are exceeded by overenthusiastic local governments they can be revoked by the national government (hopefully any such revocation would not apply retroactively to FIEs).

Central China’s Henan province serves as a good example. Henan offers manufacturing-oriented FIEs complete waivers of business tax and a many local administrative fees. Furthermore, FIEs that are engaged in technology transfer, development, and related consulting are eligible for a full refund of business tax already paid.

Regional Tax Incentives Offered By Henan Province

Production-Oriented Foreign Invested EnterprisesWaiver of Local Income Tax and fees for city construction, urban expansion, water resources protection, landscaping, and wall reconstruction. Transaction handling charges for purchasing production / operation sites are also waived.
Enterprises and R&D centers dealing with technology transfer, development and services Certain income can be exempted from corporate income tax after approval.

Municipal governments tend to be even more generous than the provinces. Zhengzhou (a city of about 4 million in central China) is a good example. Zhengzhou offers the following incentives to local FIEs:

Tax Incentives for Reinvestment of Profits Locally – Local FIEs that reinvest their profits locally receive a 30% refund of the locally retained portion of Enterprise Income Tax paid on the reinvested profits (the national government offers an even more generous refund of the nationally retained portion).

Investment in “Pillar” Industries and State-owned Enterprises – Zhengzhou grants a 50% refund for three years on the locally retained portion of Enterprise Income Tax already paid on foreign investment funds invested in designated “pillar industries”. It also offers financial incentives for investing in provincially administrated state-owned enterprises. In order to discourage mass layoffs, this incentive is increased if the FIEs retains a given percentage of the enterprise’s original employees.

Inward Remittance of Export Earnings – Zhengzhou offers cash payouts of 0.2% to 0.5% of every dollar of hard currency export earnings that is remitted inward (the best payouts are reserved for the export of technologically advanced products).

Matching Funds – Zhengzhou provides one-to-one matching funds for international market development funds of small to medium-sized exporting enterprises if they are supervised at the provincial level (whether an enterprise is supervised at the provincial level or the national level depends the size of its investment – its Registered Capital; see examination and approval authority for details).

Anti-Dumping Insurance – Zhengzhou will assist FIEs in responding to antidumping initiatives. It also offers subsidies for expenses arising out of participation by exporters in antidumping responses to the extent that these initiatives are not already being subsidized by provincial or national authorities. It may seem a bit odd for a U.S. company to establish an enterprise in China, get involved in a lawsuit filed by the United States for dumping its products, and be subsidized by the Chinese government for expenses necessary to defend the lawsuit, but it’s possible.

Interest Subsidy for Loans Secured by Tax Refund Accounts- Zhengzhou will subsidize a sum equal to 70% of the interest payable on loans that are secured by a tax refund account. If the FIE has not taken out such a loan, Zhengzhou offers a subsidy equal to 50% of the interest that would have been paid on such a loan had it been taken out – it will even provide the fund from which the interest is subsidized. Enterprises that have an annual export volume of at least US,000,000 in the previous year and are verified by the National Tax Bureau to have an increased tax refund due for the current year will receive a 100% subsidy.

Export Incentives – An export enterprise with either (ii) an annual export volume of at least US,000,000 and actual export volume of at least 25% more than the previous year, or (ii) annual export volume of at least US,000,000, an increase in export volume of more than 40% over the previous year, and inward remittances from exports at least 80% of sales volume, will be named a “Zhengzhou Advanced Foreign Exchange Generating Export Enterprise” and awarded a 30,000 RMB prize (roughly ,500 US dollars) as long as it has not committed serious regulatory violations during the year preceding the award.

Basic Tax Rate – The nationally-mandated basic Enterprise Income Tax rate for foreign invested enterprises is 33%, including a 3% surcharge that is retained by local governments. However, because Zhengzhou has been classified by the national government as a “city open to foreign investment and trade”, the Enterprise Income Tax rate of production-oriented FIEs located within the city is reduced to 24%. Furthermore, since the Zhengzhou Economic & Technical Development Zone (an industrial park located within urban Zhengzhou) has been designated as a National Economic & Technical Development Zone, the Enterprise Income Tax rate for production-oriented FIEs located therein has been further reduced to only 15%.

Posted in Currency MarketComments (0)

Successful Investing For Income In Shares Or Forex

Successful Investing For Income In Shares Or Forex

Investment for income is generally a long-term proposition. It implies stability and it makes particularly good sense for people who do not expect to become market experts or security analysts.

In fact, there are respected authorities who state flatly that the investor who seeks anything more than income from securities must be classed as a speculator, a risky role to play for any but the most sure-footed professional.

Long term, it should be noted, does not mean forever. It does not mean buy-and-forget. Whatever your holdings, you should review them several times a year and stay alert for news indicating whether the prospects are good that your companies will continue to maintain their present level of earnings.

Unless you have strong reasons for dissatisfaction with an income stock, however, there is little to be gained by switching. Generally speaking, there is not enough difference in the yield, say, from two good-quality utility company stocks to justify the expense of selling one and buying the other. (Although 100 shares of a stock paying would produce more income annually than one paying .50, it would take more than a year to rationalize the commissions and taxes paid to sell the latter and buy the former).

Dividends have their own way of accumulating. Given the steady upward trend of stocks in this century, a well-chosen security will reward the investor who holds it patiently. In even five years there can be a dramatic increase in yield. Take, for instance, Central Illinois Public Service CIP on the ticker tape—a moderately well-rated small utility company serving agricultural, mining, and manufacturing areas of central and southern Illinois. In 1953 it hit a low of 17⅛ which meant a 6.7 per cent return in a .20 dividend. In 1955 the dividend was upped to .35; in 1956 it went to .60; in 1958 to .68; and in 1959 to .76. It is now .92.

Meanwhile, its price, reflecting the increased dividend, has more than doubled. At a recent quotation of 44, the yield was a respectable, but not unusual 4.3 per cent. The investor who bought at the 1953 low, however, is now receiving a quite spectacular 10.7 per cent return.

At this point, day-to-day dips and rises in Central Illinois Public Service mean little to the investor of seven years’ standing. By now the dividend would have to be cut more than a third before he found himself where he started, and 64 per cent—to 70 cents—before he reached the 4 per cent return of the man who bought at 40. These drastic cuts are not inconceivable. But the cushion for the investor who bought in 1953 is considerable. There would have to be some quite violent reversals in the price and prospects of CIP before he would be moved to sell out.

The problem of stability is a beguiling one. For many investors it represents the compromise between safety and risk. Safety, as we will see, offers a discouragingly low return. Risk is the privilege of those who can afford it exhilarating when one has dared and won, but painfully, most truly felt by the loser. Somewhere in between, most investors decide, there must be a sensible course, commensurately rewarding and so there seems to be. Stability is the touchstone. The gauges of stability are many.

The one hazard is that they are inevitably based on past performance. No one can say for sure when the downhill slide will begin, when the earnings will diminish, when the seemingly unshakable dividend will be cut or passed.

One gauge, nonetheless, is the consistency and longevity of a company’s dividend payments. A company that has rewarded its shareholders through fair weather and foul must not only be considered strong, but reasonably proud of its performance and eager to maintain public confidence in it.

These records are easy to check. Any broker, for instance, can supply you with a list of the 50 companies with the longest records for consecutive annual dividend payments. It is an impressive group, headed by the Pennsylvania Railroad, which has managed to pay a dividend every year since 1848.

There are no dividends from investing in currencies but you can make more money from a good movement in your currency pairs.

Using Forex software will help you to predict when and which ways different currencies are likely to move.

Posted in Currency MarketComments (0)

Investing vs. Trading – What’s The Difference?

Investing vs. Trading – What’s The Difference?

There is a question which is sometimes asked by those new to the financial markets, and even occasionally debated by experienced participants. That question is how one differentiates between trading and investing. Because both trading and investing – when one considers them from the perspective of the financial markets – are performed in very similar fashions, they are often thought of as interchangeable actions.

In my book, The Essentials of Trading, I followed along with this basic theme by introducing the idea that what differentiates the two is scope definition. Both trading and investing, after all, are at the most simple of levels application of capital in the pursuit of profits. If I buy XYZ stock I expect to either see the price appreciate or earn dividends – perhaps both. What separates trading from investing, however, is that generally in trading one has an exit expectation. This might be in the form of a price target or in terms of how long the position will be held. Either way, the trade is seen to have a finite life. Investing, on the other hand, is more open-ended. An investor will buy a company’s stock with no predefined notion of when he or she will sell, if ever.

We can use examples to help demonstrate the difference. Warren Buffet is an investor. He buys companies which he sees as somehow undervalued and holds on to his positions for as long as he continues to like their prospects. He does not think in terms of a price at which he will exit the stock. George Soros is (or at least was while he was still actively running his hedge fund) a trader. His most famous trade was shorting the British Pound when he thought the currency was overvalued and ready to be withdrawn from the European Exchange Rate Mechanism. The position he took was based on a specific circumstance. Once the Pound was allowed to float freely, and quickly devalued in the market, Soros exited with a handsome profit. That meets the criteria of having a predefined exit, making it a trade, not an investment.

There is another way one can define trading as set against investing, though. It has to do with the manner in which the applied capital is expected to produce a return. In trading the appreciation of capital is the objective. You buy XZY stock at 10 expecting it to go to 15 and thereby produce a capital gain. If dividends or interest are paid out along the way, that is fine, but likely only a minor contribution to the expected profits.

In contrast, investing looks more toward income over time. That makes income production, such as dividends and bond interest payments, the major focal point. Do investors experience capital appreciation? Sure, but unlike in trading, that is not the prime motivation.

With these definitions in mind, consider what many people refer to as their single biggest investment – their home. Based our second definition of investing, however, a home is generally not an investment because in most cases is does not produce any income. In fact, it produces considerable expenses in the form of mortgage interest payments, utility bills, and upkeep. If anything, a home is a trade. We buy it and hope for its value to rise over time, increasing our equity. And the fact that many people expect to move in only a few years and sell at that point makes it even more of a trade rather than an investment. (Of course own rental property can certainly be viewed as investing, unless one is flipping it, which would definitely be more trading.)

As noted earlier, for many people trading and investing seem like the same thing. The mechanics of buying and selling are basically the same. Sometimes the analysis one does to make those decisions is identical as well. It’s the intention and definition of objectives which separate trading and investing, though.

Posted in Currency MarketComments (0)

Can You Get Rich Investing? Yes, But Think Differently!

Can You Get Rich Investing? Yes, But Think Differently!

Remember back in the 1990s when a lot of people either retired early or became wealthy? It was relatively simple. With stock prices going up, up, up, I knew a lot of people who simply invested part of their paychecks. They ended up with several hundred thousand dollars in profits from their constantly rising stocks.

I knew others who had already amassed several hundred thousand by the time the stock boom came along. They were millionaires by the time the 1990s ended.

Ah yes, those were the days. Today most people will tell you it’s a lot harder. Stocks don’t seem to do much any more. You have to invest in risky emerging countries to see much return. And that chance can evaporate overnight taking your money with it.

When the stock market won’t bring you any return, most people turn to real estate. But housing prices have peaked in most cities, meaning you can’t just buy a house and sit on it for several years to earn a fat nest egg.

So does that mean we have to give up on ever getting ahead and just learn to be satisfied living the “average” life our jobs can provide?

Not necessarily. These days you have to think differently to get ahead. For example, you’ve noticed how manufacturing and jobs are heading out of North America to foreign countries. That’s bad news for many workers, but it’s GREAT news for some segments of the Foreign Exchange Market.

You see, when we buy products from China, or Japan ships products to England, all kinds of currency has to change hands and be converted. There is BIG money in that process.

FOREX, the foreign exchange market, handles 2 TRILLION in transactions EVERY DAY. That’s far more money than what Wall Street handles. Just about anybody can jump in and pull out quite a profit for themselves by participating in the FOREX process.

Does all this sound a bit new to you? Most North Americans have heard very little about FOREX. They’ve got BILLIONS of dollars sitting in savings accounts and low yield investments that could make them a LOT more money in the Foreign Exchange Industry.

If you’re thinking helping all those millions get their money transferred to FOREX is a HUGE opportunity ripe for the picking, you’re RIGHT!

I hope my article has opened your eyes to some of the terrific opportunities that are being created now. Rather than looking back to the good old days of the booming American stock market and waiting for those times to return, refocus your attention on what is really happening right now. Your fortune lies in seeing more clearly the awesome opportunities at hand.

Posted in Currency MarketComments (0)

Limiting Your Losses When Investing In Shares Or The Forex

Limiting Your Losses When Investing In Shares Or The Forex

When you buy shares, do not buy just one stock. Buy four or five at least. The most sophisticated professional can often do no better than pick seven winners out of ten selected. Suppose he had bought only the wrong three that he thought were right at the time he bought them!

When you invest in currencies on the Forex be just as cautious.

This is good way to limit our losses and help us stand a better chance of making a good return on our money in the long run.

The exception to the rule concerns cyclical stocks. These are stocks of companies whose well being depends on the ups and downs of business. Cyclicals are well known and are generally the heavy industries, both producers’ goods like machine tools and consumers’ goods like automobiles.

They feel the effects of recession and depression more than any other industries. In a recession they fall the most and in a comeback they rise the most. In order to play cyclicals you must watch the trend of business like a hawk the New York Times Index, the Federal Reserve Index and other measures and read the business section of the Times, the Wall Street Journal and Business Week, among other periodicals. You cannot hope to get the turning points either at the bottom or at the top, but you can recognize the early stages of a trend when you see them. It takes little examination of stock price charts to see that cyclicals move with general business conditions, and if we go back to the recessions of 1957 and 1960 we can see this. These are sample cyclical stocks.

Bethlehem Steel
U. S. Steel
General Motors
Black and Decker
Clark Equipment
Bucyrus Erie
Aluminum Company
Kennecott Copper

Now look at the price charts on the noncyclicals, and we can take just a few examples of these:

New York State Electric and Gas
Potomac Electric Power Company
Standard Oil of New Jersey

Obviously if things in the business world are getting poor, it is best to be in a noncyclical; and if things are starting to improve, it is best to get out of these and into a cyclical which fell during the recession. In the recession of 1960 I bought no stocks whatever. In July, 1958 I bought like mad and in the spring of 19611 spent about half of my time picking out buys in the market. I did not see the trend late in the fall of 1960. I was too conservative; but when I did invest I was very sure that the recession was over and that consequently my chances of success were good.

The quicker you get used to the sources of information on stocks, the better. If you are not willing to use these constantly, then do not buy stocks. The stock market is a most popular investment. Everyone is in it and everyone thinks he is an expert on it, that he knows the last word. To get in and try to make a decent return requires constant work and constant attention.

We should also be careful not to place too large a proportion of our money in currencies when we invest in the Forex. We may be certain that we know which way a currency is going, but if we have, say ,000 to invest in the Forex, it is best to not invest more than 5%, some Forex professionals will even say, no more than 1% of our pot should go into any one currency at a time.

My own system of investing is a simple one and is not based on any rule of purchase. Unless I know a company thoroughly and how much of its stock is out and how much overhanging the market in the form of options or founders’ stock, I do not usually invest. I have found that without securing as much inside information about a company as I can, I run a great risk. Inside information comes directly from the management or one step removed from the management. Hearsay information is of little use, particularly that which comes from brokers, unless the broker knows the management and gets his information directly from it.

Posted in Currency MarketComments (0)

Investing In Bonds Versus Forex

Investing In Bonds Versus Forex

Investing in bonds and the savings bank is safe as we will see. But if you are adventurous you can make a great deal from Forex.

The article is written primarily for the smaller investor who needs high yield, the man who has between, let us say, ,000 and 0,000. If the ,000 investor secures a return on his money not of 3%, or 0 per year, but 12% 0 per year his benefit will be material, not nominal.

If the 0,000 investor receives not ,000 but ,000 the difference is great enough to mean complete financial independence.

While theoretically the large investor, the one with ,000,000 and up, does not need to consider such investments, because his ,000,000 in the savings bank yields him ,000 a year, or his investment in tax free bonds at 4% yields him ,000 a year not subject to income tax, strangely enough this is the type of investor who invests the most heavily in the types of opportunities examined in this book. Some of the very largest aggregations of capital in the world do little other than invest in mortgages at discounts, foreign loans, real estate syndications and investment partnerships.

Strange as it may seem, the person least satisfied with a low yield is often the very wealthy person. If such people invest in the opportunities examined in this book, these opportunities deserve at least a quick survey by the smaller investor. There may very well be a good reason behind the saying that the rich get richer and the poor get poorer. The rich may know how to invest more intelligently with more information available to them.

In a stable economy we might consider high rate investments as desirable but not necessary. But we are not in a stable economy. We are in an economy in which every year our fund of savings is worth less. Dollars in themselves mean little. They have meaning only insofar as they can purchase goods and services. Let us see how this purchasing power of the dollar fared since the end of the war.

With 1947-1949 equal to 100%, consumer prices rose to 102.8% in 1950. If we consider that at this point in history 1950 we have 2 in the savings bank at 3% interest we can get a strikingly clear idea of savings in a period of inflation.
By 1960 in 10 years consumer prices had risen to 126.5%.

Now if the 2 in the bank in 1950 drew 3% interest, after a hypothetical tax of 33%, the owner of the 2 savings account would find by 1960 his account had grown to 2. His interest didn’t even enable him to keep up with inflation. He was actually poorer in 1960 than he was in 1950.

If a person were in the 50% tax bracket 4% compounded annually would amount to the same thing. He would have 2 in 1960, the same amount that the person in the 33% bracket would have with his return of 3%.

Although Forex is much more risky you stand to gain a lot more, but remember that
You should not risk more than you can afford to lose.

Posted in Forex AccountComments (0)

Investing In Foreign Currencies – The Forex

Investing In Foreign Currencies – The Forex

Building a diversified portfolio gives you a lot more stability with your investments and enables you to keep on the profit side of things more easily. But if you already have a rather diversified portfolio and think you are now rather knowledgeable of the stock market, then you may be ready to expand your investments into FOREX – the foreign exchange. When currencies in the United States may take a plunge, or a lack of growth, markets in other countries are doing quite well and this is something that you can draw a profit from.

The FOREX market, listed simply as “FX,” is the biggest market of all. A lot of money can be gained from it – and rather quickly, too. This market deals entirely with the exchange rates between two currencies on 5 days of the week. Two currencies are always in every exchange and they are exchanged the one for the other with a buy rate and a sell rate – at the same time. For instance, if you believe that the Japanese yen is about to increase in value, then you may offer to buy it at .10 and sell it at .25 – making a possible $ .15 per yen purchased. Here are a few things you need to know about how to get started in the FOREX market.

Learn The System

Trading on the FOREX is generally more difficult than the regular stock exchange. It is easier to lose money if you do not know what you are doing. In order to prepare people to learn to deal with the FOREX, though, most online brokerages have specialized software that provides training – up to about 30 days, with “free money” to use to practice until you start being able to regularly see a profit. Only then is it wise to start doing some real trading. You also need to know how to determine the state of national economies and be able to predict their fluctuations. Other online companies provide many free booklets that they will mail to you only for the asking.

Potentially Safer Investing

Since all deals with the FOREX require a broker, your money is potentially safer. Every contract made with a broker will have a clause in it that allows the broker to actually stop the transaction if they feel it is a poor investment. The primary reason for this is because you are actually using the broker’s money to make the deal. When you use FOREX, you create a sort of “loan” that gives you an operating ratio of up to 100:1. This means that, for ,000, you are actually controlling 0,000.

The FOREX is also a better investment because there cannot be any insider trading. Dealing with currencies means that the things that effect it would make national news. This kind of event would be known almost instantly around the world – and everyone has access to the same news.

Easy Liquidity

Trading in currencies occurs every single day – many trillions of dollars worth of it. Because of this feature, there is always someone who will buy or sell dollars, enabling you to have a very quick liquidity when needed.

No Fees

Brokers do not charge you a fee when you make a FOREX transaction. This enables you to be able to control even better the amount of money that you invest and it allows you to chart it a little better. Brokers make their money through the spread of what is sold, the difference between what is bid and the actual selling price.

Posted in How To Forex TradingComments (0)

An Overview Of Forex Investing Strategies

An Overview Of Forex Investing Strategies

FOREX trading refers to an international, 24/7, over the counter, exchange market where currencies of different nations are bought and sold. Trading is always done in pairs assuming the price of currency bought to go up and that sold to fall down. It is the largest liquid financial market making it impossible for any single investor to influence the prices of currencies.

There are two kinds of FOREX investing strategies:

TECHNICAL ANALYSIS
FUNDAMENTAL ANALYSIS

TECHNICAL ANALYSIS:

Technical analysis is mostly undertaken by small and medium size investors.
A technical analysis considers factors that are actually affecting the market rather than factors that can affect it. Thus the price quoted reflects all the factors that have influenced it. Only market generated facts and figures are taken into account and factors like fear, hope, expectations or other changes are not considered. Thus the analysis is generally based on these suppositions:

• Price reflects all actual market movements. That means price includes everything known to the market like supply and demand of foreign exchange, political factors, trade agreements etc. It is not concerned with what resulted in change rather deals with actual changes. It works on the assumption that price can take only one of the three directions:

 Upward
 downward
 sideward

• It rest on those market patterns that have been identified as significant. That means those factors which are repetitive in nature or will produce desired results.

• History always repeats itself as human psychology changes very slowly with time. That is market movements are predictable.

VARIOUS TECHNICAL INDICATORS ARE:

1. RELATIVE STRENGTH INDEX:

It takes into account the ratio of upward and downward movements in index and expresses it in the range of zero to hundred.

2.CHARTS:

Charts include various hills, slopes, curves that develop on a chart over a time and reflect some major and minor changes in pattern. Some of the chart formations include:

• TRIANGLE
• RECTANGLE
• HEAD AND SHOULDERS
• DOUBLE TOP AND BOTTOM
• SAUCERS
• V

3.GAPS:

A gap represents area on a bar chart where no trading took place.

• UPGAP: it is formed when the lowest price on a particular day is more than the highest price of previous day.

• DOWNGAP: it is formed when highest price of a certain day is less than the lowest price on previous day.

NUMBERS:

Various number theories are used in technical analysis like:

• Fibonacci theory
• GANN

STOCHASTIC OSCILLATOR:

This indicates the overbought or/and undersold condition. It uses a scale of zero to hundred percent.

FUNDAMENTAL ANALYSIS:

It is the one where current economic, political, financial situation of the country of currency is studied. A country’s economical and political condition depends upon many factors like the interest rate, unemployment level, exports and imports, per capita income, percentage of population living above and below the poverty line, inflation, trade relations with other countries, tax policies etc.

A fundamental analyst studies and evaluates all these factors before coming to any decision. Thus it helps in long tem decision making and making profits in short term by extra ordinary developments.

Some of the indicators that help in fundamental analysis include:

1. GROSS DOMESTIC PRODUCT:

It reflects total market value of all the goods and services produced in a country during a given year.

2. RETAIL SALES:

This reflects total receipts by all the retail stores in a country.

3. CONSUMER PRICE INDEX:

It reflects change in prices of consumer goods.

4. BUSINESS CYCLE:

It reflects various phases through which a business passes. These phases include:

• EXPANSION
• PEAK
• RECESSION
• DEPRESSION

5. MONETRY POLICY:

It controls the supply of money in an economy.

Trading successfully needs knowledge, time and understanding of a market. You cannot earn continuously in a Forex market due to its volatile nature. Thus as a trader you should try to consider both technical and fundamental strategies of forex trading and make decision based on market expectations and trends. Try trading with money that you can afford to loose without any regrets. Trade with logic and if you are not sure quit and take rest for some time.

Posted in Currency MarketComments (0)

Things To Know When Investing In Forex

Things To Know When Investing In Forex

There is a lot of potential profit hiding in the foreign currency exchange markets. Jump right into Forex trading without preparation and those profits will be elusive. Even if you already know some of the Forex ropes, learning more will make you a better trader. This article shares a few good ideas that might be new to you.

Take a real class. Many colleges, both online and offline, are beginning to offer courses in how to get into the Forex market. If you happen to find one, jump at the chance. These courses are usually taught by qualified instructors who work with the market themselves, so they have real world experience.

Log and journal everything you do when you are trading. By carefully tracking your successes and failures, you give yourself a reference point by which to make future decisions. If you do not have a personal log of your experiences, you will be taking positions blindly and experience more losses.

Keep your emotions out of the trade. Some people feel a bit competitive and even want revenge when they have lost a trade, and all that can come from it is further loss. If you lose a trade, simply move forward and learn from your previous attempts in Forex trading.

Making too many trades on the forex market can drain your bank account and your energy. Focus on the trades you really want to make as part of your overall plan. Often, the less you trade, the more profit you end up making.

If you are going to trade on Sunday night, watch out for ‘slippage’. The market opens again on Sunday night, and rates of opening can be different from rates of closing. Your broker might be showing a rate that does not reflect the actual rate at which the exchange will be made. Losing money in this process is referred to as ‘slippage’.

To be successful in forex trading, it is essential to put a trading plan into place. It is easy to allow greed to encourage you to over-ride on a win while letting fear affect how much money you make. To avoid this, think about what you are going to do in advance and stick with your plan.

A great tip to use in Forex is to open up a mini account and keep it for a year. You may have a great month and feel as if you should step up to the plate and bat in the majors, but wait the full year. Use the profits gained to finally fund your larger account when the time comes.

Protect yourself from frauds that are all over the Forex market. This is a worldwide market and it opens the doors to scam artists that are looking for any person that they can find to take advantage of. Do not get fooled into working with a company that advertises high profits and minimal risks.

Education is the spotlight that will expose Forex profits for you. Experience is important too, but learning as much as you can will make your efforts much more productive. The more tips, tricks and tactics you learn, the more you can make. Hopefully this article’s tips will help you on your way.

Posted in Forex AccountComments (0)

Dollars And Sense: Savvy Investing With Forex (2)

Dollars And Sense: Savvy Investing With Forex

Have you been looking for a way to earn some extra money? Forex might be the right investment for you. You should be ready to invest a lot of time in learning about forex, and establish a budget to start trading with. If you are willing to do that, read these tips to find out how you can make money with forex.

Forex trading is essentially a form of gambling and should be treated as such when managing your money. Only risk the amount of money that you can afford to lose and plan for the possibility of loss. This ensures that you will not lose money intended for bills and savings and lets you trade with more confidence.

A great Forex trading tip is to always use a stop loss. Opening a Forex position without the aid of a stop loss can spell disaster. Imagine you lose your internet connection or your power goes out suddenly. Without a stop loss, you won’t have any means to prevent losses.

If you are going to engage in foreign exchange you need to be intimately acquainted with ongoing world events. Debt crisis in Europe affect not only inter-European currencies, but also all currencies around the globe. News events will drastically effect your currency exchange rates so you should sign up for news sites instant alerts to be notified of any big events.

Once you make a profit, take some of those Forex winnings and transfer them to another position. This way you not only profit but expand your portfolio. You might want to let your profits run as long as possible but inevitably they will begin to fall and you’ll lose some of what you’ve made.

To be successful in your forex endeavor, find a mentor. Many traders have been in the market for countless years, and they make a good living doing it. Befriending a more experienced trader can let you learn from observation, and give you someone to turn to when you are not sure of what you should do next in any given situation.

Stop looking for winning secrets as there are none. Spend the time sharpening your skills instead of looking for the big secret that will yield millions of dollars. Don’t buy books, different publications, or software for a high price promoting to reveal the multi-million dollar trading secret. Invest your money in quality education instead to learn the skills you need.

Stay within your means. Losing money is common in any market, but if you cannot afford to have a potential loss, you should not be trading. Only trade with money that you do not absolutely have to have, such as excess money in your savings account. Do not force yourself out on the street because of one bad trading day.

As explained in these tips, forex is not a miraculously easy way to make money. If you are motivated and can afford to spend a lot of time on forex, you should start working hard on your training. You will be rewarded for your time and efforts once you become a skilled trader.

Posted in Forex TraderComments (0)

Forex Strategies

Trade:Forex, Oil and Gold

Powered by Yahoo! Answers