Would you believe me if I tell you that 80% of the wealth in this world is owned by 20% of the rich people? Which means to say, the remaining 20% of wealth are there for the 80% of the world’s population (about 6 billion people) to share. Let’s do some facts finding.

If you have free time, go to www.forbes.com and click on the list of billionaires. You will notice that in year 2008, there were over 1,125 billionaires with a total wealth of  over USD 4.4 trillion. There are of course many more millionaires in this world. There is a rough estimation of the number of millionaires among us. In Wikipedia, it puts the number of millionaires at nearly 1.9 million people in year 2006.  There are estimated over 6.6 billion of us living in this world as of year 2008. Which means to say that, if the 80/20 ruling is correct, there are  about 1.32 billion people who share the 80% wealth of the world.

If you were to ask me whether I believe the 80/20 Rule, I would have believed that the figure is closer to 90/10!! Why? It is because day after day, I have been reading on the financial articles saying that the rich is getting richer and the poor is getting poorer.

My next question is why only 20% of the wealth is shared by 80% of us living in this world? Why the wealth of the world can’t be shared by more of us? Internet is a very powerful tool. With the internet, I believe more knowledge can be shared among us. And with the internet, this investment knowledge can reach more people at all corners of the world. With this investment knowledge, if we do it correctly, the wealth should be distributed more evenly among us. Don’t you agree?

Okay, lets go back to the 20% of the rich. There is an interesting aritcle in Forbes.com titled “Are You Born To Be a Billionaire?” (http://www.forbes.com/2008/03/05/microsoft-hewlett-chevron-ent-billionaires08-cx_mf_0306bornbillionaire.html). Go and read if you will, and answer the question yourself. It is very interesting because we will get to see why only those 20% get to share the 80% of wealth. I am not saying that the rest us should aim to be billionaires. No way Jose! The reason I ask you to read that article is because perhaps, we can learn something about them in the hope that we can learn too on how to invest our money. Then, you will believe FunkyTeacher.com that MONEY DOES GROW ON TREES!

Source: About Investment

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What is Risk? According to Oxford Dictionary, Risk has a 3 meanings.

1. The possibility of something bad happening at some time in the future.

2. A person or thing that is likely to cause problems or danger at some time in the future.

3. A person or business that a bank or an insurance company is willing/unwilling to lend money or sell insurance to because they are likely/unlikely to pay back the money.

If you read the above given meanings carefully, then you will realise that everything we do evolve around risk. It depends on how much risk we are willing to undertake before we proceed to do certain things or make certain decisions. For example, windsurfing as a sport. I used to windsurf before I injured my back. What are the risks in windsurfing? They are plenty, of course! To start with, it is a dangerous sport if you don’t know to swim. It can be even more dangerous if you use faulty equipments. The other aspect of risk is the risk of getting burnt under the hot sun. Not forgetting the big waves and the great whites lurking under the water! I can name a few more, but let us come back to the topic of risk.

Have you ever been approached by an insurance agent? They want us to buy insurance policy from them of course! But if everyone of us really understand the meaning of risk, I believe all of us will be running to the insurance agents to have ourselves insured! Why? The answer is simple really. Everything is uncertain except death. All of us must die. Agree? It is how we die. We could be dying from illnesses. We could be dying from accidents. If illnesses and accidents don’t kill us, we will surely die of old age. So, we would like to transfer this foreseeable risk to the insurance companies. Why should we wait for these foreseeable risk to come to us at a time when we are not ready? (Read me, no money). I am neither an insurance agent nor soliciting business for my friends here. I am simply sharing with you the meaning of this word, Risk.

So, what does risk has to do with investment? One of the basic question we have to ask ourselves as investors is “What is my risk appetite?”

I have met people who have high risk appetite. If you speak to people who gamble, they know gambling’s risk is very high and they are willing to risk their money in a bet in return for a win that can earn them many folds of the money they bet on. At the other end of the spectrum, you have people whose risk appetite is very weak. They would rather keep their money at home because they cannot stomach the risk of putting their money in the banks because banks have collapsed before and will happen again in the future.

Now, we should find the answer for ourselves. What is our risk level? The reason is once we know our risk level, we can go ahead to invest in the particular investment that suits our appetite and keep on doing it until we are good at it. How good an investor we are depends on how much we practice and how much experience we have gone through. Remember, we must have a right set of mind and emotion in investment.

Even when we are in a relationship, there is a risk. It takes 2 hands to clap. So, the risk is rather high actually. It is a 50%-50% chance. There is a high chance that the relationship might not work in the first try. But if you keep on going for it, you will be good at it. My friends, if you have failed in your previous relationship, go out and give it another try. I can assure you will be much better at it than the first time!

I just love talking about Risk!

Tags: property, forex, risk management, stocks, unit trusts, about investment

Source: property

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All of us dream about the potential of working at home make trades through the internet a few hours a day and making enough money to quit our day job. In all actuality this is quite feasible for any one of us who is determined to be successful in trading in the Forex market.

I want to give you a little bit of advice before you jump in and start trading in the Forex market. I think that this advice will prove to be very valuable to you in the long run. I know that I wish I would have listened to this advice before my first investment. I would probably be a whole lot richer today then I really am.

The greatest investment that anyone can invest in is our brain. That’s right, in our education and knowledge that we have as an investor. Books are cheap, many times free. Most of us also have “free time” that we can spend to read these books. So, why don’t we do more reading before we start investing?

Emotion is definitely one aspect that causes us to jump right into investing without first studying and preparing for that investment. We read articles, and testimonials of people making so much money without doing anything that we think we are going to be that profitable as well. This isn’t always true. But we can see ourselves driving that new car that we bought from our investment earnings and we just can’t wait. Emotion is a very dangerous thing in the world of investing.

I have learned that learning is the greatest way to ensure my investments safety. When I learn how the investment works, I also see more clearly how each side of the investment works. I can then see the risks and the true potential rewards that might come from that investment. This increases your odds greatly to be a successful Forex trader. All these factors work together and the more educated you are the less you will invest from emotions. Thus making you much richer!

This method of getting started in investing is much cheaper then jumping in head first. I unfortunately didn’t educate myself first and consequently lost a lot of money in the process. Don’t be like me, educate yourself and be sure that you are ready before you do your first investment.

There will always be people who are selling something to you and want to get you into an investment quickly. Beware because this person normally wants you to get into the investment because they make money when you invest. Most times they make money even when you loose money. I can’t say it enough; educate yourself and make yourself a better investor.

That is pretty much it. You can’t escape the fact that you are the one that will ultimately determine your level of riches! If you can learn how to control your emotions and gain some tips on how to trade successfully then you will gain a great amount of wealth. No one has fun loosing money; I hope that you are an investor who has fun!

If you don’t know where you can find more information about Forex trading go to www.smartforextrade.com you also will find a free e-book for you to download as well.

Source: Finance

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They buy and sell several times a day, the exchange volumes are very high, and therefore receive daily big discounts of the brokerage.

One day, traders focusing solely on the dynamics and trends. They are more patient and wait for a ride on the strong who can move that day. They are far fewer trades tha these traders. Many day traders sell their positions before the market closes for the trading day to avoid the risk of price differentials (the difference between the day and close to the open overnight price), to open it. One day, traders say it is a golden rule to be respected at all times. Other traders think they should let the profits run, it is acceptable to stay with a position after the market closes.

Day traders often borrow money to trade. Since margins are typically charged interest on balances overnight, the additional costs also discourage them from holding positions overnight. Risks and benefits

Because of the nature of leverage and speed of returns are possible, day trading can be extremely profitable or highly profitable, and high-risk profile traders can generate huge percentage returns or losses. The operators are able to earn millions each year, only by day trading.

Because of the high profits (or losses), which enables the trading day, these traders are sometimes described as “bandits” or “players” with other investors. Some people, however, make a consistent living day trading.

But day trading can be very risky, especially if it was bad discipline, risk or managing money. The common use of purchases on margin (with borrowed funds) magnifies gains and losses, such as losses or gains may occur in a very short time. In addition, brokers will usually from the higher margins for day traders. When the night margins required to hold a stock position are normally 50% of the value of the stock, many brokers allow pattern day trader accounts to use levels as low as 25% for purchases intraday. That means one day negotiating with the legal minimum $ 25000 in his account can buy a $ 100000 stock during the day, as long as half of those positions were released before the market close. Due to the high risk margin of the use and the other day business practices, a day trader will often leave for a losing position very quickly, in order to avoid a greater, unacceptable loss, or even a catastrophic loss, much larger than its initial investment, even larger than its total assets.

Even when one has made a profit, the trader has to compensate for transaction costs and interest on the margin. It is commonly said that 80-90% of day traders lose money. An analysis of the Taiwanese stock market suggests that “less than 20% of day traders profit net of transaction costs.” History

Originally, the largest American stocks were traded on the New York Stock Exchange. An operator will contact a stockbroker, which would be about relay to a specialist on the floor of the New York Stock Exchange. These specialists to visit each market in only a handful of stocks. The specialist could correspond to the buyer with another broker seller; write tickets natural that, once treated, would have the effect of transferring the stock and relay the information to both brokers. The brokerage commissions were set at 1% of the transaction amount, ie for the purchase of a value of $ 10000 inventory costs to the buyer $ 100 in commissions.

One of the first steps to make day trading shares potentially profitable was the regime change of the commission. In 1975, the United States Securities and Exchange Commission. (SEC) has set the commission rate illegal, giving rise to a lot of brokers offering commission rate reduced. Financial Regulations

Financial institutions to be used much longer periods: Before the early 1990’s in the London Exchange, for example, the stock could be paid for a maximum of 10 working days after it was bought, which allows traders to buy (or sell) shares at the beginning of a settlement period only to sell (or buy) by the end of the period of hope for a higher (or lower) prices. This activity is identical to the negotiation of modern times, but for the longest period of settlement. But today, in order to reduce market risk, the settlement period is generally three days. Reducing the settlement period of default reduces the likelihood, but it was not possible before the advent of the electronic transfer of ownership.

The next important step in the facilitation of the day was the founder in 1971 of the NASDAQ - a virtual exchange on which the orders were transmitted electronically. Switching from paper and wrote share certificates to the registers dematerialized shares, negotiation and computerized registration not only requires amendments to the legislation, but also the development of technology necessary: online, real-time systems, rather than in batches; electronic communications rather than the postal service, telex or physical shipment of computer tapes, and the development of secure cryptographic algorithms.

This marked the advent of “market makers”: the Nasdaq NYSE equivalent of a specialist. A market maker is an inventory of stocks to buy and sell, and at the same time offers to buy and sell the same title. Obviously, it will offer to sell shares at a higher price than the price at which it offers to buy. This difference is known as the “spread”. It is of no importance for the market-maker if the price of a stock goes up or down, because it has sufficient capital stock and always buy cheaper than it sells. Today, there are nearly 500 companies participating as market makers on the RET, each one giving a market generally four to forty different stocks. Without any legal obligation, the market makers are free to offer small deviations ECN’sthan on the NASDAQ. A small investor might have to pay $ 0.25 spread (for example, it might have to pay $ 10.50 to buy a share of stock, but could not get $ 10.25 for sale), while the institution would only pay a spread 0.05 $ (10.40 $ buying and selling at $ 10.35).

Day trading is undoubtedly very lucrative for traders willing to put the time and effort to leanring how it really works. It is not passive income. This is a career. But a very lucrative one if done correctly.

Source: Day Trading

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We all have heard about the people who work from home through an Online Business. This is the dream life for most of us. One way that we can accomplish that without starting a business is investing. Trading in the Forex market has the potential of making you enough money to quit your job that is for sure!

Hold one for just one second before jumping into a Forex trade. I want you to think about a few things before you get started. I know as young investor the hardest thing was to be patient and study first. It is this very thing that can make you a rich investor instead of a poor one.

Invest in your greatest asset; your brain! I know that you have probably heard that before, but please don’t ignore this advice. Books are easily available to us. The internet is full of information that we can access and learn from. All of us need to make sure that we have the time to study about the investment that we are getting in before you start investing.

Emotion is definitely one aspect that causes us to jump right into investing without first studying and preparing for that investment. We read Articles, and testimonials of people making so much money without doing anything that we think we are going to be that profitable as well. This isn’t always true. But we can see ourselves driving that new car that we bought from our investment earnings and we just can’t wait. Emotion is a very dangerous thing in the world of investing.

How does one eliminate emotion from the investment equation? Education! That’s right, when you are educated you begin to see the realities of how easy you can loose money just as well as gain it. You begin to get a clearer picture of what it is going to take to be successful in trading and thus causing you to be more educated and be a smarter investor. This normally leads to becoming a richer investor also.

This is the method to gain much more money then your peers. Trust me, the time that you spend reading and studying is not wasted time. It is the time that is essential to be a successful investor. Unless you want to be poor; educate yourself first.

There will always be people who are selling something to you and want to get you into an investment quickly. Beware because this person normally wants you to get into the investment because they Make Money when you invest. Most times they Make Money even when you loose money. I can’t say it enough; educate yourself and make yourself a better investor.

Therefore take care of your money. No one has worked harder then you have for your money. Learn how to control your emotions and prepare yourself for your investments. This is the number one way that you will have a great experience in investing. Take it from me, it is no fun when you invest and don’t make any money.

If you don’t know where you can find more information about Forex trading go to www.smartforextrade.com you also will find a free e-book for you to download as well.

Source: Investing

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A review of Forex Killer would be incomplete without re-affirming a few Forex principles and particularly to lay down the foundations of basic information about what Currency Trading is all about. For that purpose, I have decided to write a series of articles which will enable beginners to get to grasps with what Forex is. I therefore recommend that you check and bookmark my website at the foot of this article!

Forex market: it’s all about how much you you think that currency is! Do you remember the last time you took your family on vacation to a foreign land and dreamed of sunny beaches and Pina Colada in the sunrise breeze? You got to the airport with a smile on your face and foreign currency in your pockets? You were happy, you were proud… and you had just dabbled in the forex market!

The value of each currency when it relates to another is what the Foreign Exchange is all about. If the foreign trip you take is Europe for example, you would have to take some of your dollars and exchange them for Euros.

As luck would have it, you’d have to dig deep into your pocket and let go of quite a few of your hard earned Dollars to purchase the almighty Euro but that’s another subject! If we take the afore mentioned currencies, the cost of purchasing one Euro on April 9th 2008 is 1.58290 USD which is exactly what the Foreign exchange is, namely the exact quantity of one currency unit required to buy or sell one unit of another currency.

Since transactions are between two currencies at the time, they are also called “pairing”. The fact that it took 1.58290 USD to purchase that Euro can be translated in forex terms as: EUR/USD at 1.58290. What happens when Euros are used to purchase Dollars is just another “Pairing” only this time it is reversed. For example: USD/EUR at 0.631671.

Now, if you owned Japanese Yens for example and wanted to purchase Euros with them, EUR/JPY at 161.178 you’d need 161.178 JPY to buy one Euro. Since there are no USD involved in this specific transaction we no longer call it a pairing but a cross rate!

Forex Trading is an extremely profitable business if you have the right tools, or the right knowledge, or both!. It so happens that Forex Killer is one such tool which literally enables even a beginner to immediately feel at home with the software and start trading. Of course knowledge doesn’t hurt at all and this is why we thought about publishing a series of articles on the subject.

Whether you are an expert financier or a beginner, please allow me to hope that good fortune and luck guide you along the paths of your new venture. We have a lot of information about Forex Trading in our website below.

Source: Business

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This is a term you will see very often when trading Forex.  Another word for “Pip” is what’s known as the “Tick Value”, and it stands for “percentage in point”.  A pip is the smallest increment of change in price for a currency.  Most major currency pairs are priced to four decimal places, such as 1.5795. In this case, if the price changes from 1.5795 to 1.5796, then it changed 1 pip.

It can be fun to check out the Pip value so that you’ll know approximately how much you’re earning within those few seconds and because it is mainly used in currency futures, you may notice why the Pip are almost always fixed.  Can this be a reason why so many traders and investors are moving away from currency futures to spot forex trading?  Or Is it because the commissions charged by brokers are just too high?

To learn more about forex trading and how to make winning trades with a consistent, profitable, proven software, visit Instant Forex Profit System and get started now.

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Source: tick value

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Most people don’t realize the huge mistake they make when starting out in their trading career. There are several elements to the mental trap that people get caught in when they begin trading that sets them on the wrong course, but one particular error is the one that virtually guarantees failure, or at least a rather long and loss-filled road in becoming a successful trader.

Luckily, although this situation is one that is difficult to foresee and very understandable that it is made, there is a straightforward and rather simple solution to the issue.

The essence of the trading activity is definitely within the ability of most to grasp, however trading as an occupation does have a substantial body of knowledge to absorb and specific skills that are necessary to trade profitably and consistently. In addition to the fact that most traders are of above average intelligence,this makes for a situation where the success rate should be much higher than it is.

As is with most professions with a substantial body of knowledge, there is a progression to trading.

Here is an analogy to illustrate the problem. Let’s take mathematics.

Mathematics begins with the concept of numbers in general, quantifying items. Next come addition, subtraction, multiplication and division. After that, one moves on to algebra, geometry, and trigonometry. Once that base is developed, then one can comfortably move on to calculus, La Place Transforms, differential equations and other higher math.

If however, a person fails to fully establish the prerequisites for calculus, such as algebra or trigonometry, the concepts in calculus may be understandable, but solving the problems will be a considerable challenge, if not near impossible to solve. If a person were to attempt to go straight from basic mathematics to differential equations, it would make for a very long struggle indeed to become proficient at the higher level.

It has been documented in studies on the obstacles to learning that have found that there are specific physiological reactions when a person encounters this particular phenomenon - that of starting too high up in a learning gradient or missing foundational knowledge while trying to grasp concepts at a given level.

This is the fundamental mistake that many traders make, and they are generally not consciously aware of this particular situation and its impact. Many people begin active trading without the foundational knowledge to trade at the level where they become active. When this occurs, this presents a considerable obstacle to adequate learning within an sufficient time frame. Subsequently, the trader often winds up taking a severe financial beating, sometimes losing all their capital before they have established a proper skill and knowledge base to trade proficiently.

The individuals are not to blame. This is a systemic problem which unfortunately most have to endure. There is no required training or certification before a person is allowed to put themselves and their capital at real risk, so the high percentage that fail is largely the result of a lack of warning and preparation for what the business of trading entails.

Those that are fortunate enough to seek out the proper teachings and help are the ones that can minimize the effects of this situation that is so commonplace in the trading world. If a person can find a mentor that recognizes this particular obstacle and the others that are present in the development of a trader, then odds are greatly improved for a good trading experience. Most however choose to do it themselves or simply make it on sheer determination alone, while learning the lessons of trading the hard way - through personal experience and numerous losses.

Instead of falling prey to this mistake as many do, you have the option to save yourself considerable time, losses and personal grief. The first step is backing up so to speak and making sure that you’ve got the basics fully covered, and then moving forward with a focus on mastery and development.

This one factor can set your destiny as a trader, so it is well worth acting on.

Source: Finance

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It seems like everyone wants to earn some extra cash. Because of this, people are now considering starting an online business that they can run and manage from the comfort of their home. If that’s you, then you will see that there are quite a number of online business possibilities that you may could to try. If you want to start an online home business, one kind of business is trading in the FOREX market.

First of all, the FOREX market is the largest and most liquid market in the world. It operates 24 hours a day and almost 7 days a week. This means that whatever time you want to trade, you will be able to do so as it is always open for trading.

In the past, the FOREX market was exclusively for large financial institutions and multinational companies. However, thanks to the internet, the FOREX market has been opened to regular people such as yourself. With this, you will have a chance to get a piece of the large pie that is the FOREX market.

This kind of home based business has generated a lot of income for a lot of people. In fact, some people who did very well in the FOREX market have quit their day jobs and focuse exclusively on trading currencies.

However, you need to remember that although the FOREX market can potentially provide you with a lot of income it is also a very risky market and you may end up losing money. This is why it is important that you should first learn how to trade in the FOREX market by knowing about the major currencies being traded and also about the popular currencies that most FOREX traders trade.

To start a home based business in the FOREX market, you will need to join a FOREX broker website. Here, you will be able to open a FOREX account with a minimum investment and you will also be able to get some tips about different currency movement forecasts. Some websites will even let you download special software programs that will make it easier for you to trade in the market.

If you are just starting to trade in the FOREX market, it helps if you first practice by creating a dummy FOREX account. Through this, you will be able to trade in the FOREX market without risking real money. Although you will not earn money this way, it is a great way to practice trading. Or, you may also try opening a mini FOREX account. With a very minimal investment, you will be able to start trading in the real market and start earning small amounts of cash.

As you can see, online FOREX trading will be able to provide you with a lot of incentives. From tips on what currency to buy and sell, you can be sure that you will be able to minimize the risk and maximize your chances of profiting from this kind of business.

So, whenever you want to start a home business online, you may want to consider entering the FOREX market. It is a large market that can help you generate a lot of cash and with the available tools and strategies you should be able to minimize the risk of losing money.

Source: home business online

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The number of online trading companies on the market are really big. But it is not wise to go for the first company that comes your way. You have to do a proper research.

When doing the research, you will have proper information and will be able to make the best and wise decision. This means that you will not only pick a reputable company, but you will also find one that caters to your needs.

Online trading companies should have up to minute news and latest info about the trading events in the world. But buying and selling stock is still a dangerous and risky business. Only in case you know what you are doing, you can make an impact in the online trading world.

Online trading companies know the risks you will encounter during your online trading experience. It is their duty - and make sure they say so - to keep you safe about online trading. This is simple because the more traders fail, the less paying customers they will have in the long run. Now you understand that a good trading record is a must to check. Plus, try to get into contact with the people who are the clients of this company (and who do not get affiliate commissions for recruiting the members).

Source: how to compare online trading companies

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