Forex Trading - The Largest Market In The World

Have you been looking for a way to make substantial income online? If you have, then you might have heard about forex trading. Most people do not have the slightest clue as to what forex trading is, or how it works. Understanding these concepts is a giant step toward successful marketing online trading.

   

   First of all, let us learn what forex trading is. Forex is a foreign exchange market place, where currencies from different countries are valued and exchanged. A lot of people have exchanged money when travelling from one country to another, and that is pretty much the extent of their knowledge in currency trading.

   

   Different currencies have different values. The forex market is a place to set those values. The word "market" usually makes one think of the New York Exchange, but the forex market functions by banks trading with each other, with no central market place.

   

   When starting out in the forex market, one needs to exercise common sense and good judgement. While it is possible for new traders to come in and make money, it is also possible that the money will be lost.

   

   So, is it easy to make money trading in the forex market? Forex brokers report that ninety percent of traders end up losing their money, five percent of traders break even, and the other five percent them achieve consistent profitable results. With these statistics, trading, in my opinion, doesn't seem easy! 

   

   But there are traders who have made it, and made it BIG! What seperates them from the rest is mainly education. They have learned every single aspect of foreign trading and have developed a system that works. It is a good idea to learn everything you can about forex, before attempting to trade. It is also a good idea to join a trading community, with a forum, as this is an easy way to learn about forex. By learning all that you can, before risking your money, it is a lot more likely for rewards to follow.

   

   There are a few things that every trader should take into consideration, that will help accelerate the process. They should have a trading system, they should learn about money management, and they should educate themselves in every single aspect of the forex trading market. There is also a lot of self-discipline required, to ensure you follow your trading system, or plan.

   

   Why would I want to trade in the forex market, you ask? Many reasons. But the best one of all, is that you can do it at home, online, twenty-four hours a day, five days a week. This means, that one could have their typical "day job", and still come home and take care of their trading business at night, or even in the early morning, before work.

   

   If you are interested in forex trading, and would like a FREE copy of the ebook "Forex Freedom", then please visit my website, at the address found below.

Life Insurance - Money Saving Top Tips

More and more people are buying life insurance online and the numbers seem to be doubling every two years. The reasons are clear. Prices are lower on the Internet and life insurance is fundamentally a simple insurance product. 

Despite the underlying simplicity of life insurance, most web sites channel their online clients through a telephone based help and advice service manned by experienced personnel. They represent your safety net so if a little technical knowledge is called for, help is at hand. 

But it’s always a good idea to have a few Top Tips in your back pocket when you’re shopping online for life insurance. They’ll help you ask the right questions and find the best policy. 

1. Always have your Life Insurance policy “Written in Trust”. 

This means that in the event of a claim, the money goes directly and immediately to the person(s) you nominate when you first take the policy out. It also avoids all possibility of your estate having to pay Inheritance Tax on the proceeds of your policy and that could represent a 40% tax saving ! 

All you have to do is tell the online brokerage organising your policy that you want your policy “Written in Trust” and the names of the people who the life insurance company pay in the event of a claim. They will then sort it all out for you. The extra good news is that this service is invariably free of charge. So it’s a win win situation and there aren’t many of those around these days ! 

2. In the early years a Reviewable Life Insurance Policy will be cheaper but a Guaranteed Policy will work out a better buy in the longer term. 

With a “Guaranteed Policy” the insurance company guarantees never to increase your policy’s premium. 

With a “Reviewable Policy” you agree that your insurance company can review the cost of your policy at regular intervals. But don’t be kidded – in our experience a “review” is just another word for a price increase. After all, who’s ever heard of an insurance company passing up a chance to charge you more! The review intervals are usually between 2 to 5 years but this does vary between insurance companies. You will find the details of the review intervals on the documents sent to you before you accept the insurance – these are called The Key Features Documents. 

So, comparing otherwise like for like policies, in the early years the premiums for a “Reviewable Policy” will undoubtedly be lower than the premiums for a “Guaranteed Policy”. Thereafter, the premiums for a Reviewable Policy increase eventually catching up with and overtaking, the premium for a “Guaranteed Policy”. 

In our experience, you can expect the monthly premiums for a Reviewable Policy to exceed those of a Guaranteed policy in about 7 to 10 years and then within the following 10 years, more than double again. If your budget is currently tight then by all means choose a Reviewable Policy - after all your salary may increase in coming years and ease the strain. On the other hand, if the premiums for a Guaranteed Policy are affordable, we think they represent your best buy. 

A footnote. Many insurance companies have stopped offering “Guaranteed” rates for standalone critical illness insurance policies. This because they have experienced much higher claim rates than they initially expected. However, you may still find a Guaranteed life insurance policy that also provides critical illness cover. As we have explained, “Guaranteed” rates are especially good value and if you can get a quote for a Guaranteed life policy that includes critical illness cover, you may have a real bargain. 

3. Thinking about a Joint Life Insurance Policy? 

A Joint Life Insurance policy is usually written on a first death basis. This means that the policy will pay out on the death of the first policyholder, subject to the policy being in force at the time. This leaves the second person uninsured and older. Older people can struggle to get life insurance at an affordable premium, so rather than a Joint Policy consider taking out separate policies now. Overall it will work out a little dearer - but you get twice the cover and double the peace of mind. 

4. Taking out a Life Insurance Policy? Now would be an ideal time to include Critical Illness cover. 

Are you likely to need Critical Illness Insurance in the future? Yes? Then consider adding it now to the life insurance policy you’re arranging. Why? There are three reasons. 

Firstly, a Life Insurance policy combined with Critical Illness cover will work out significantly cheaper than buying two separate policies. Secondly, as we have already explained in the footnote to Tip 2, you may be able to buy a combined Life and Critical Illness policy with a guaranteed premium. That could be a real bargain. Finally, premiums for critical illness cover increase rapidly as you get older – so the sooner you take it out, the cheaper it will be. 

5. Don’t confuse Terminal Illness cover with Critical Illness cover. 

There’s world of difference between Terminal Illness and Critical Illness cover so it’s important to understand the difference. 

Terminal Illness cover pays out the insured lump sum if a Medical Doctor diagnoses you with an illness from which the Doctor expects you to die within 12 months. Most good life policies automatically include Terminal Illness cover at no extra cost. It’s basically an early, and welcome policy payout. 

A Critical Illness policy pays out the insured lump sum if you are diagnosed with one of a wide range chronic illness and there is no life expectancy criteria. Indeed, with many of the insured illnesses you could expect to survive for many years. For example: certain cancers, heart disease, stroke, multiple sclerosis, loss of speech, sight or hearing, onset of Parkinsons or Alzheimers disease, third degree burns etc. Say you were an engineer aged 40 and you lost your sight. A Critical Illness policy would pay out immediately and that money could well be vital in helping you and your family through many difficult financial years ahead. If you just had Terminal Illness cover there’d be no chance of a payout. 

So as you can see, Critical Illness cover is far more comprehensive than simple Terminal Illness cover and for that reason critical illness cover always costs you extra.

Fundraising Tips - The Follow-Up

The key to continued fundraising success is to follow-up afterwards: Supporters and participants need to be thanked.

Merchant contributors need to be debriefed on their results from participating. Records need to be gathered, copied, and stored.

Communicate the results to everyone involved. 

Informing everyone who took part in your most recent fundraising is of utmost importance. Nothing charges up your organization for the future better than a group celebration.

Give recognition to your volunteers. 

Enjoy the sound of "We did it!"

Conduct a post-mortem analysis of the fundraiser just completed.

Gather information and record impressions while everything is still fresh. Make notes about supplier relationships, any process problems, and what aspects need fine-tuning for the next time around. 

Gather those recommendations for future fundraisers. 

Brainstorm with your team and write down all the possible ways to improve. Circulate a written evaluation form to gather multiple viewpoints for the permanent file.

Make plans while everyone is still excited from this success.

Strategize how to increase the number of volunteers. Plan to promote those who excelled this time around to positions with more authority.

Ask your merchant supporters what you could do better.

In the long run, it's important to help them even more. Now is a good time to ask them for increased participation during your next big drive.

Review all records for completeness. 

Work up the statistical analysis covered in the section on Goal Setting (in my book Fundraising Success!). That will save time in the future when you want to set your benchmarks. 

Post the results on your website.

Let everyone see how ell you did along with multiple pictures of your team in action. When describing your success, be a shameless namedropper. Everyone likes to be thanked publicly.

Most importantly, put the funds you've raised to good use. 

Your fundraising follow-up is the foundation for your future success. Don't give this area short shrift. Pave the way for even better results next time.

The Three Stages Of Debt Consolidation Loans

If you are experiencing debt problems then one solution may be to take out a debt consolidation loan to sort yourself out. Getting into a spiral of debt doesn’t just affect your finances – it can be a stressful experience that can also affect your health and mental well-being. So, it makes sense to take action as soon as you can before the situation gets completely out of hand.

If your debts are worrying you – and remember, you don’t have to owe a whole lot of money to have debt problems – then there are three basic stages to debt consolidation that can help you make the right decision on what to do. Let’s take a look at your options.

Stage One – Decide what you want

It doesn’t matter how big or small your existing debts are – if they are a worry to you then debt consolidation loans could provide you with the right kind of solution. So, are your debts so bad that you need this kind of loan?

The first thing you need to do is to work out how bad your financial situation is. If, for example, you spend most of your monthly income on repaying your debts leaving you with little or no cash spare to live on every month then you may well need to look at this kind of solution. 

The problem with many debts nowadays is that most of us end up borrowing money on products such as credit cards and overdrafts. So, every month you may find that you are simply repaying the minimum sum allowed whilst high rates of interest are added to your initial borrowings. All too soon you can find that you aren’t making any headway at all to repay what you owe as more is added to it every month even if you have curbed your spending. So, you may find that you have to borrow more to even make the minimum payments which will only make the situation worse. If this scenario sounds familiar to you then a debt consolidation loan could be the answer to your prayers.

Stage Two – Look at what debt consolidation can do for your finances

The key advantage to a debt consolidation loan is that it will repay your existing debts for you. You’ll still have to repay this loan but it’ll cost you less and it will get you out of the spiral of debt increases. This kind of loan is usually a standard personal loan so the interest rate advantages you’ll get are huge. Personal loans have far lower interest rates than products such as credit cards, for example. So, you’ll have to spend less on debt repayment every month and less overall to repay your borrowings.

Plus, this kind of loan will give you just one monthly payment which can be set at a fixed rate so you will know exactly where you stand. If you have any doubts about what this kind of loan will do for you then do a bit of research first before you make a decision. Work out how much you currently pay every month on repaying your debts – then, if you log on to a specialist website such as www.uk-consolidation-loans.co.uk you can see how much a debt consolidation loan will suit you. And, you’ll get the instant peace of mind of knowing that your debts will be repaid at the end of the loan. There really is an end in sight here!

Stage Three – Get the best deal

Debt consolidation loans can come in various forms. If you prefer you can take out a specialist loan or simply opt for a standard personal loan. If you’re a homeowner you can opt for a secured loan or if you prefer or you don’t own your own property, then you can use an unsecured option. In any case, the key thing to remember is that you want a reputable lender with the best deal possible. It’s vital to keep the interest rates you get for your loan as low as possible to make sure that you pay back as little as possible over time.

The easiest way to do this is to shop around. In today’s Internet focused world you don’t have to do this yourself – there are many specialist sites that can help you find great rates and deals.

For many of us a debt consolidation loan can be the first step we take on the road to a debt free life. With this in mind it’s a solution worth looking at no matter what level of debt you currently have.

Currency Trading: Understanding the Basics of Currency Trading

Investors and traders around the world are looking to the Forex market as a new speculation opportunity. But, how are transactions conducted in the Forex market? Or, what are the basics of Forex Trading? Before adventuring in the Forex market we need to make sure we understand the basics, otherwise we will find ourselves lost where we less expected. This is what this article is aimed to, to understand the basics of currency trading.  

What is traded in the Forex market?

The instrument traded by Forex traders and investors are currency pairs. A currency pair is the exchange rate of one currency over another.  The most traded currency pairs are:

EUR/USD: Euro

GBP/USD: Pound  

USD/CAD: Canadian dollar

USD/JPY: Yen

USD/CHF: Swiss franc

AUD/USD: Aussie 

These currency pairs generate up to 85% of the overall volume generated in the Forex market.

So, for instance, if a trader goes long or buys the Euro, she or he is simultaneously buying the EUR and selling the USD. If the same trader goes short or sells the Aussie, she or he is simultaneously selling the AUD and buying the USD. 

The first currency of each currency pair is referred as the base currency, while second currency is referred as the counter or quote currency. 

Each currency pair is expressed in units of the counter currency needed to get one unit of the base currency.

If the price or quote of the EUR/USD is 1.2545, it means that 1.2545 US dollars are needed to get one EUR.

Bid/Ask Spread

All currency pairs are commonly quoted with a bid and ask price. The bid (always lower than the ask) is the price your broker is willing to buy at, thus the trader should sell at this price. The ask is the price your broker is willing to sell at, thus the trader should buy at this price. 

EUR/USD 1.2545/48 or 1.2545/8

The bid price is 1.2545

The ask price is 1.2548

A Pip

A pip is the minimum incremental move a currency pair can make.  A pip stands for price interest point. A move in the EUR/USD from 1.2545 to 1.2560 equals 15 pips. And a move in the USD/JPY from 112.05 to 113.10 equals 105 pips. 

Margin Trading (leverage)

In contrast with other financial markets where you require the full deposit of the amount traded, in the Forex market you require only a margin deposit. The rest will be granted by your broker. 

The leverage provided by some brokers goes up to 400:1. This means that you require only 1/400 or .25% in balance to open a position (plus the floating gains/losses.) Most brokers offer 100:1, where every trader requires 1% in balance to open a position.

The standard lot size in the Forex market is $100,000 USD. 

For instance, a trader wants to get long one lot in EUR/USD and he or she is using 100:1 leverage.

To open such position, he or she requires 1% in balance or $1,000 USD. 

Of course it is not advisable to open a position with such limited funds in our trading balance.  If the trade goes against our trader, the position is to be closed by the broker. This takes us to our next important term.

Margin Call

A margin call occurs when the balance of the trading account falls below the maintenance margin (capital required to open one position, 1% when the leverage used is 100:1, 2% when leverage used is 50:1, and so on.) At this moment, the broker sells off (or buys back in the case of short positions) all your trades, leaving the trader “theoretically” with the maintenance margin. 

Most of the time margin calls occur when money management is not properly applied.

How are the mechanics of a Forex trade?

The trader, after an extensive analysis, decides there is a higher probability of the British pound to go up. He or she decides to go long risking 30 pips and having a target (reward) of 60 pips. If the market goes against our trader he/she will lose 30 pips, on the other hand, if the market goes in the intended way, he or she will gain 60 pips. The actual quote for the pound is 1.8524/27, 4 pips spread. Our trader gets long at 1.8530 (ask). By the time the market gets to either our target (called take profit order) or our risk point (called stop loss level) we will have to sell it at the bid price (the price our broker is willing to buy our position back.) In order to make 40 pips, our take profit level should be placed at 1.8590 (bid price.) If our target gets hit, the market ran 64 pips (60 pips plus the 4 pip spread.) If our stop loss level is hit, the market ran 30 pips against us. 

It’s very important to understand every aspect of trading. Start first from the very basic concepts, then move on to more complex issues such as Forex trading systems, trading psychology, trade and risk management, and so on. And make sure you master every single aspect before adventuring in a live trading account.

Credit Cards For Small Business

For those that own a small business, having a credit card specific to small businesses can be a huge help to the company in a great many ways. However, if you are not careful, it could also have its downfalls as well. It is important to understand what the credit card company is offering, how you can take advantage of it, and everything that is involved with it. In general, a lot of small business owners see an offer and do not hesitate to apply and charge, without reading over the conditions and terms set forth by the company. This is where many small business owners make their very first mistake. If you fully investigate the credit card and know what you are getting into, it could have a lot of excellent rewards that could benefit the company. 

If you choose to apply for and receive a credit card for your small business, you should make certain that you take full advantage of the security aids they provide you, for example, prevention in overspending by employees and yearly consolidated statements.  Another excellent benefit of these types of credit cards, specific for small businesses is that you have the ability to closely watch your statements on a monthly basis, as well as use one method of payment for your entire outfit. These monthly statements will offer you a rundown of all charges made the credit card, this allows you to better understand where the money within your business is going. This will further allow you to made adjustments on where the money should be going, how much should be spent, and helps in creating a budget easier. 

Another excellent feature of a small business credit card, is that they allow you to receive a number of cards, that are perfect for handing to your employees that need to use it for company business and expenses. You have total control over this and can set the limit on those credit cards to your desired level, making certain that they cannot spend more money than you tell them they can. 

As with all credit cards, there are always a downfall, if you allow any overspending rather it be you or your employees, it could seriously damage your personal rating within your credit report. It is important that you be strict and in control on all aspects of the credit card, set limits with the company, and ensure that the balance is paid off in full each month.

Mortgage Basics for New Borrowers

The dream of owning a home is something that is on just about everyone's lifetime goal list.  It's one of the things that in some ways signals that we have made it in life and can bring great pride and a sense of accomplishment to many.  For many who pursue that dream it can be a confusing undertaking if they are not prepared for the home buying experience.  Without a doubt one of the most confusing and often misunderstood parts of the home buying experience is the mortgage process.  Sadly, most of us do not have the money to just buy a home outright, so we turn to mortgage lenders to help us finance the home of our dreams.

One of the first things anyone who is interested in owning their own home should understand is the role credit plays in the mortgage process.  You are getting ready to ask a lender to make a sizeable loan to you for an extended period of time - often upwards of 30 years.  For them to take on this risk, they need to evaluate your creditworthiness - or your ability to pay the money back.  They typically look at items such as your credit report which lists how you have dealt with other creditors in the past, your total household income and the price of the home you are willing to buy and where it is located.  Based on this information they then decide on whether to extend you the loan and at how much interest.  

Interest is an important concept to understand because over the lifetime of the loan you can expect to pay back double the amount of the loan value based on the interest rate - that $150,000 house has suddenly cost you $300,000.  Your goal in the mortgage process is to get the absolute lowest interest rate you can.

You also need to know how much house you can afford.  Most mortgage lenders typically look for you to spend no more than 30% of your monthly income on house payments.  Of course, the longer the mortgage term and the lower your interest the more house you can afford to buy.  It is important to buy something you can easily and comfortable afford - the last thing you want to do is find yourself in a crisis situation unable to pay your monthly mortgage payment!

Next, be sure you have saved up a sizeable cash reserve before jumping into the home buying process.  You are going to have to pay things such as closing costs (which can be upwards of 5% or more) and pay as much of a down payment as you can to reduce your loan amount as much as possible.  You then will want to have a little reserve left over to furnish your new home and take care of any needed repairs - remember, you own it now and it is up to you to repair it if something breaks!

If you are confused about the mortgage and home buying process, don't feel as if you are alone.  Many people share the same concerns and fears as you do.  Often times in your community there are local first time home buyer groups that meet with experts from the banking and real estate industry there to answer your questions.  Ask your realtor about whether such a group exists and when the next meeting is.   The home buying process doesn't have to be a terrifying experience, and if you come prepared you can win big by getting the best deal possible on your mortgage while getting the house of your dreams.

Flexible Loans

Our leading lenders offer a wide variety of competitive loan products, including flexible loans. These are available in range of different amounts and repayment terms. Loans can be used for many purposes including buying a home or a car, going on a holiday or for debt consolidation.

If you are thinking of using flexible loans to consolidate debts then you have a couple of things to consider. Although you could be paying less than the sum of your present debts with your monthly repayments, you will be paying for a much longer time. You could also find that having just one creditor will reduce the pressure you may have been under from your present creditors. Even though you may have to pay early settlement charges to your creditors when you pay off your debts you could save a lot of money, especially if you use a secured, low interest loan. It will also help you to bring your debt under one roof and work towards lowering your debt in the future. It is vital that you make sure that you can afford the repayments before you take out a debt consolidation loan.

The main categories for flexible loans are secured and unsecured loans. Unsecured loans do not require the borrower to provide the lender with any security to back the loan and this added risk to the lending company results in higher interest rates. There is less risk for the borrower but if they fail to pay back the loan the lender could take them to court. In the case of secured loans, of which a mortgage is a prime example, the borrower provides the lender with collateral, their property. This is low risk for the lending company because they always have the property as insurance if the borrower defaults on repayments and fails to repay the loan. The borrower is risking their home and this why it is so important that you make sure that you can afford the repayments on a loan before committing to an agreement. Secured flexible loans are usually approved faster than unsecured loans but can take longer to process.

Flexible loans are repayable on a monthly basis and you will be charged interest by the lending company. This is called the Annual Percentage Rate or APR and the exact amount you are charged will be determined by the amount you borrow, the repayment term and the lender’s view of your ability to pay back the loan as agreed. This is where your credit history, the equity in your property and your circumstances are considered. The typical rates advertised by lenders are only an indication of the APR you are likely to get but not a guarantee.

Depending on the loan company, you could be given the flexibility to make over-payments and to pay in lump-sums with flexible loans. This will allow you to clear the debt over a shorter period than agreed at the outset and can potentially save you a substantial amount of money. You may even be able to withdraw amounts from the loan account, providing you stay within you credit limit. A further option is payment breaks which will allow you to take a break from you monthly repayments at the beginning or during the term of the loan. An adjustment will be made to your monthly repayments to include any accrued interest so that you still pay off the debt in the term agreed.