Thursday, August 30, 2007

Arbitrage Trading or E-currency E-currency?

If you are reading this you most be wondering what way is better to make money E-currency Exchange or Arbitrage Trading?

Lets first look at how both systems work, and if these systems will still be around in 5 years or so.

Arbitrage Trading Is and unknown way to make money on the Internet. Very few people know little or no information about arbitrage trading. So can you make money? Yes you can. Arbitrage Trading makes money by placing trades on arbs that are created when two different bookies disagree on the same sporting event.

When you get two bookies that disagree on a sporting event this makes and arb. If you where to place money on this arb you would win the trade. This is how arbitrage trading works. This is 100% legal and can be done anywhere in the world.

Now will arbitrage trading be around for a long period of time? Yes arbitrage trading will be around as long as there are sports. Arbitrage Trading will never die and go away.

E-currency Exchange This is also unknown to many people. E-currency exchange works by investing a small amount of money into the e-currency system. Each day your money is compounded making 3 to 5% each day. People who have started off with and investment of only $200 have be able to turn there small investment into $1000 in just a moths time. Using this system has changed many peoples lives.

Will e-currency be around in 5 years or so? Everyone I asked is unsure of how long e-currency exchange will last. Some say it will be around forever. Right now the system is still running but a little slow. This in my eyes means the system is falling apart. Now I still invested money into e-currency and I have made money from it.

I also invested money into arbitrage trading. If I had to pick between the two systems of making money I would bet on arbitrage trading. Although its newer then e-currency it seems to me that it's more stable and will be around for years to come. E-currency exchange on the other hand is not looking so hot. One month the system is flying and the next month the system is a running a little slow.

In the end I choose to work with both systems. I have thought about pulling out of e-currency and going solo on arbitrage trading. Well just have to wait it out and see how e-currency does compared to arbitrage trading.

I use both e-currency and arbitrage trading to make money working out of my house. Today I can say that these two money making systmes have changed my life for the good. I recommened this programs to anyone and everyone. Visit Arbitrage Trading for more information on e-currency and arbitrage trading.

The History of GM - General Motors

The history of GM, the world's largest automaker, saw its beginning in 1908. The company was founded by William Durant in the year 1902. The shrewd businessman that he was, Durant realized that the future lay with cars and not carriages. Initially, the company was founded as a holding company for Buick. The latter part of the year saw the company acquiring Oldsmobile, followed by the possession of Cadillac, Oakland and Elmore in the very next year.

Many of the motor companies were in dire straits during the difficult years of the early 1900's. The stock market panic in 1907 put a lot of small companies into financial distress. Many of these companies were running on credit from various bankers. This was a golden opportunity for Durant, who proceeded to buy smaller car builders, and companies that built car parts as well as car accessories. In 1908, these various companies were folded into a single unit, thus creating the new GM entity. This marked the exciting beginning of the true history of GM.

William Durant was a flamboyant businessman whose curious mix of genius and over-reaching took GM both to its heights as well as plunged it into financial distress. In 1910, bankers were forced to step in to prevent financial collapse of GM, and Durant was removed from the company he had founded. But by 1911, the company had made enough advances into the international market that the General Motors Export Company was established to handle sales outside the U.S and Canada.

Durant managed to use another company he formed, Chevrolet, to come back to power in GM during 1915, and the history of GM from 1915-1920 is full of successes. During this time, the Cadillac became wildly successful. In 1918, GM bought the operating assets of Chevrolet Motors. But, soon America was hit by a power recession and in 1920, Durant again found himself out of the company.

During the financial boom in the 1920's, the history of GM virtually glowed with success. Auto sales reached the 4.5 million mark, and the auto industry now had three giants - GM, Ford and Chrysler. GM now had a brilliant engineer turned industrialist at its helm. Alfred Sloan who was later acclaimed for his marketing genius had slowly worked his way up among the ranks of GM. His marketing genius breathed a fresh lease of life into GM that was beginning to get overshadowed by Ford.

Ford's philosophy of giving the public the best value for their money offered little variety. But Sloan and GM were interested in providing the public with more than a black box. Stylish colors, features and comfort became the new motto of the company. GM also made a path-breaking offer - the public could now buy a car on credit. The five brands of GM - Pontiac, Cadillac, Buick, Oldsmobile and Chevrolet began changing every year with the focus being directed mainly at looks and style. This strategy paid rich dividends. Ford was pushed to the backseat again by GM.

The great Wall Street crash in 1929 put an abrupt stop to all expansion plans at GM for the time being. Stocks of GM fell rather badly. But, by early 1930's GM bounced back and bought the Yellow Coach bus company. In 1930, GM bought Electro-Motive Corporation, the internal combustion engine railcar builder. The next 20 years saw GM powered diesel locomotives running on American railroads. December 31, 1955 is another landmark in the history of GM. GM became the first company to make more than a billion dollars in a year.

There was a time in the History of GM when it was the largest corporation in the US. The history of GM also shows that there was a time when GM was the single largest employer in the world. But, in recent times GM has been beset with financial woes. November 2005 saw GM booking a $4 billion loss and about 30,000 employees were laid off. 12 plants were closed down.

This article was provided by William Berg who also rites about other beloved parts of the automotive history like the Corvette with classical models like the 1963 corvette and the 1967 corvette.

Forex Trading - Spotting the Big Trends For Big Profits Part 2

In part 1 we looked at how human psychology pushes prices away from fair value.

When there are extreme moves away from fair value you can make a contrary trade to the majority and pile up big profits with low risk.

So what tools do you need? Lets take a look.

As a general rule these tools will work in any market not just forex markets.

What sets ups do you look for?

Generally you want a set up that is the news where there is no end in sight to a spike move.

This generally indicates that greed and fear have taken hold and the market being looked at is emotionally driven and away from fair value.

This happens all the time:

The recent spike in crude oil, the 87 stock market crash and many others including in the forex market.

First place to start

Is the chart look for huge price spikes in short time spaces accompanied by experts and the news telling you there is no end in sight.

Now delve a bit deeper to see the true picture.

Useful technical tools are:

RSI, Sochastics and Bollinger bands

Then add in these sentiment tools to the mix.

% Bullish

This indictor is a poll of people, experts, brokers etc that have a view or interest in the market.

When this poll indicates above 70% are bullish the market is in overbought territory and when below 30% is in oversold territory.

In the currency markets we like to look for even more extreme readings of below 20% and above 80%

Commitment of Traders Net - Traders Position Report

This is a tool used for years by futures traders and shows the breakdown of open interest among three main participants.

We will explain what it means in a minute buy here is its definition of the groups.

Hedgers The smart money commercial traders

Large speculators These are normally large funds with reportable positions

Small speculators everyone else.

The commercials are long term traders and are close to the fundamentals and move very slowly they are hedging not speculating and not influenced by greed or far and are the smart money.

Speculators on the other hand, both funds and small speculators, are driven by greed and fear

If you see a set up where commercials start to move the opposite way to speculators at a market top or bottom and hold an opposite extreme, then prices have moved to far from fair value.

With the commercials taking and building the opposite position to speculators in a rampant bull or bear market you know prices are probably due to re bound.

You must only use extremes with this tool and this normally means 8 months to 2 years.

Breaking it down

Study chart first, look for experts telling you there is no end in sight to the move, then look at % bullish and then net trader report.

Finally, use the technical indicators to confirm the move.

These moves do not happen often.

Maybe a few times a year.

But when they do

You can zero in on a contrary trade that not only offers huge profit potential but offer low risk.

FREE ESSENTIAL CONTRARY TRADING PDF'S

On all aspects of becoming a profitable trader including features, downloads and your essential FREE Trading PDF's visit our website at http://www.net-planet.org/index.html

Dare to Invest for Your Future

Investing is a word that most people equate with taking risk by investing into the stock market. Real estate is another venue of investing. Some people invest in rare metal such as gold. In my opinion, one of the most important investments you can make is in yourself. It involves self improvement via education and setting optimistic financial goals. There are many venues of investing and I will cover a few in this short article.

I believe the main purpose of investing is giving you peace of mind knowing that your future is secure. This sense of well being is euphoric and it is well worth the effort to pursue. Financial security is something that is within the reach of everyone despite income levels. Money does not always bring happiness, but it does allow you the freedom to pursue your dreams. Money is just another tool you can use to gain what you want and deserve.

Investing in yourself is something no one else can do for you and only if you’re willing to make the effort within. You have to find your niche in life and pursue it with a passion. It can be through a formal education, working with a mentor, it can be a hobby or any combination. When you find something you love, it’s not all that important that you’re the best at it. What is important is that it makes you happy inside and that is the key to lifting your inner spirit to a new high. When you’re happy, it radiates around you and to others around you and that is important. You attract people when you’re happy within.

Investing in your financial future is very important also. It allows you the freedom to explore new dreams later in life or branching out into another line of work at your leisure. Financial investing is something that everyone can and should do throughout their life. In my early adulthood, I thought financial investing was only for the very rich, but that is not true at all. All it takes is a little discipline and setting goals.

It’s so easy to put down on paper what you should invest for your future. It’s quite another to actually set up a payment allotment plan and begin. I had to make a decision in 1985 on how to invest into a new retirement savings plan at work. I was 28 years old at the time and was in the process of buying my first house, so I really didn’t think I could spare any money for investing. I was fortunate to have a friend who understood investing and he asked me a couple very basic questions. What is the maximum I can contribute per year and what is the minimum amount. He also wanted to know roughly how many years I had to retirement. He prepared a spreadsheet showing how invested money can grow over time. At the time, I was only making 22K per year, when I saw a figure approaching 500K my eyes lit up and I decided this was something I had to do.

The “Magic of Compound Interest” was a term my friend brought up and is something that meant very little to me in 1985, but it’s a term you should understand. It is something a great mathematician named Albert Einstein knew quite well. Albert Einstein said that compound interest is “the greatest mathematical discovery of all time”. Albert understood how earning interest and time allowed you to build wealth. The reinvestment of your interest earnings and time spent in a savings plan are very critical. I did not grasp compound interest until my friend put figures on paper that clearly demonstrated the magic of compound interest.

It’s hard for people to grasp how compound interest works, but basically the interest you earn is not paid out to you, it’s reinvested. So, you’re account grows not only by what you put into it, but also on the interest earned in the past. It’s almost like rolling a snowball down a snow covered hill. By the time it reaches the bottom, it’s huge and it’s large enough to become your new foundation.

The United States government encourages people to save for their retirement by making their contributions tax deferred. This is another huge advantage to setting up a retirement savings account for you. Many tax payers fall into the 15 percent tax bracket, so if you save 2000.00 per year, that is a savings of 300.00 right off the top. Your tax free deposit is not seen as taxable income. I would much prefer to save 300.00 per year by not sending it to the IRS. You win not only by building a nest egg for yourself, but your saving money that would normally go to the IRS.

One of the biggest reasons people do not invest money into a retirement plan is because they think they can’t afford to do it. That is a very legitimate reason, but you need to understand how little it takes to make a difference in your life. I use to smoke cigarettes when I joined the Navy in 1975. Back then, it seemed as if just about everyone did. Fortunately, for my health I managed to quit many years ago. Just one carton of cigarettes in California today can cost almost $40.00. Just by quitting the smoking habit, I saved myself roughly 40.00 per week. As an example, let’s say an 18 year old smoker quit today and put just 40.00 per week into a savings plan that averages 8 percent interest. At age 65, that ex smoker would not only be a lot healthier, he would be sitting on a nest egg worth over 1 million dollars. Actually, it would be exactly $1,017,394.90.

Some people will say that this is a silly example because when you’re young you spend every dime you make. If you think like that, you will spend everything you make. Your inner thoughts are more important than you will ever realize. By focusing on what you want and staying positive, it will come to you. Just dare to imagine what your retirement would be like at age 65 if you had over a million dollars!

I’m not a grandparent yet, but that day is just around the corner I’m sure. I think a great gift to a grandchild is something you can give them long after your gone. The gift is teaching them the gift of giving and also investing. If you were to put away $4000.00 and put it in an account that earns 9 % interest, it would be worth one million when that child turns 65. So you can pass this life lesson on to someone who will keep your picture on the wall for years after your gone. But more importantly, that person will pass on what they learn from you to their grandchildren.

In conclusion, I just want everyone to realize that if you want a comfortable retirement, it is in your hands. If you visualize your financial goals and set forward a plan, it will happen. All it takes is having a clear plan in your mind and staying focused on your dreams. I hope this article will help you and your family realize that investing is for everyone. If you wish, you can contact me or post a comment and I will get back to you if you have any questions. Have a great day, stay positive and take charge of your future.

Richard Sizemore resides in Los Angeles California and enjoys writing articles for this website. My wife, Cynthia also writes articles on her website, http://www.cyndall.com Her Self Improvement articles are outstanding and I highly recommend them.

How to Select a Forex Broker

Selecting a forex broker is not an easy process. You need to think about what kind of trader your are and select the best forex broker for your style of trading. If you're a day trader and like to execute many trades each day, you may want to find a forex broker that offers low spreads. We pay spreads for exvery trade we execute and the larger the spread, the more commission you will pay to your broker for your trades.

A good forex broker will explain various forex trading systems and strategies to their clients and will assist in their process of putting these strategies to workThe advice from forex brokers will basically. The advice you receive from your broker will basically include technical analysis approaches and research methods followed by experienced traders and brokers that boost the client trader's performance as a forex trader.

In the earlier days of forex trading, the banks and large financial institutions had sole access to the forex market, but now with the advent of the internet technology, things have changed. As more novice traders have taken up forex trading as a home based business, the forex brokers are also realizing the importance of this trend and moving away from the conventional banks. More and more forex brokers hrough internet based businesses and offer their clients a complete suite of services based online. Today's forex brokers recognize that their customers are no longer the rich individuals or large institutions and have tailored their forex trading strategies to conform with the needs of their new, home based, middle class client. They know that the stakes for this type of client are lower and that they wish to maximize their profit but have a different appetite for risk. Also, in terms of certification, it is useful to work with an NFA (National Futures Association) member broking house.

Forex brokers that offer sound advice and have well recognized and verified credentials are, of course, the ones that you should be looking for. Additionally, don't rely blindly on the advice of a forex broker. If it sounds too good to be true, it probably isn't. Learn to trust your own judgment and ask your forex broker lots of questions. A reliable broker won't be bothered by this.

Let your needs guide you and your trading level help you choose the right broker for you. It will typically depend on whether you are a novice or an experienced forex trader. There are many forex trading brokerage firms that are targeted towards the beginner in forex trading. These will generally offer detailed research material and plenty of advice for the newbie trader. Additionally, these types of firms will provide access to forex trading software that will simulate the real trading environment and help to make the forex trader accustomed to using the tools of the trade.

For experienced forex traders, these types of detailed instructions may not actually be required, since these individuals will know their way around the forex market. For them, there are different forex brokerage firms that will offer advice with a greater emphasis on the logic behind the forex trading strategy and will go into greater depth on this matter. To find the best fit, read about various forex brokers, ask friends, ask about the forex broker's package offering and take the trials offered by a few of the online forex trading firms.

Andrew Daigle is the owner, creator and author of many successful websites including a free forex training web site ForexBoost and CashCurve, a resource for making money online.

A Little About Lot Sizes In Forex Trading

understanding lot sizes in forex trading is very important to help you avoid the pitfalls of trading on a leveraged account. Forex trading involves the use of dramatically leveraged accounts and before you put one dime into a live forex account you need to understand how leverage works and what is happening in all the different sized lots. Also what is the optimal size lot to use when learning forex trading.

Let me talk to you a little about forex lot sizes. OK I am reaching with a play on words there but a lot of people who read my articles should know by now that I think forex trading should be fun and profitable.

normal Lot: Many forex brokers will require $10,000 to open an account and on it you can trade a normal lot size. There is usually a 1 lot minimum trade.The normal lot is worth $100,000 in currency and when you trade a lot it is 1:100 leverage. What this means is that you are getting a loan from the broker to control $100,000 for your $1,000. Now lets look at this leverage thing a bit more because so many people make a big deal about how wonderful forex trading is due to the leverage you can get. I completely agree that leverage is one of the many benefits of forex trading but it seems to me not many people properly understand the concept.

as an example you have a standard account with 1:100 leverage then for every 1 Pip you gain there is $10 in profit for you ( basically not factoring spreads commissions etc. ). Now leverage is a 2 way street and for every 1 pip the forex market moves against you then you lose $10 and this is what makes leverage fascinating to many. The fact is that you must understand both sides before getting into forex trading. Most markets swing up to 100+ pips a day easily and this means at 1:100 leverage you can in theory gain 100 pips in 1 day thus taking a $10,000 account to $11,000. Now for the bad news you can also lose 100 Pips on most markets and take $10,000 to $9,000 in a day just trading 1 lot. So when you hear people talking about 1:400 leverage they better be very accurate with their forex trading.

Mini Lots: Ok now lets look at a Mini lot and how leverage works with it. Most brokers require at least 1 mini lot to be traded. The mini lot is worth $10,000 this means you are trading with 1:40 Leverage. Let's do some math and I promise it want hurt much. $250 x 40 = $10,000 and since $10,000 is 1/10 of a standard forex lot this is why for every 1 Pip in your favor you earn $1 profit. Conversely for every 1 pip that moves against you forex trading you lose $1.

Micro lots: Now some brokers allow micro lots where you can do forex trading at 1:4 leverage again lets hit the math book a second. $250 x 4 = $1,000 which is 1 / 10 of a ($10,000) mini lot

and this means for every 1 pip in your favor forex trading you will make 10 cents profit and of course conversely for every 1 pip against you then you will lose 10 cents. I know to the novice this does not sound like much but if you had only $100 and traded an account with 1 micro lot then every 10 pips in your favor will mean 1% gain on your account. The micro is in my opinion a great size to trade when learning in a small account if your Broker allows this. Practicing forex trading with micro lots will give you room for forex market swings and time to develop your skills as a forex trader.

That is just a little about forex lots and I hope it clears some things up and explains some of the risk and rewards of forex trading.

For more information visit at http://www.digital-intuition.com and Download your free copy of forex flows the best forex trading software available using computerized A.I.

Watch some of our videos here: http://www.youtube.com/view_play_list?p=FE856782219FEDFC