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51 Forex Vs Spread Betting on Thu Mar 05, 2015 12:21 am

Trading in shares on the stock market is one of the most important activities in the global economic sector today. This is due to the fact that it not only enables companies to raise capital, but also gives the traders an opportunity to get a piece of the profits gained by the companies whose shares they invest in.

For traders, there are two directions they can choose to go when investing in shares: Traditional forex trading or spread betting. These methods have a number of similarities and differences that may act as a guide to the trader depending on their needs. In the next paragraphs, we discuss some of these aspects with an aim of comparing and contrasting the two.

Definitions

The logical point to start at would be to define each method since by definition, they are quite different. Forex trading involves buying and selling of the shares of the companies listed on a given forex market.

Spread betting on the other hand refers to speculative betting on such shares by placing a bet whose outcome depends on whether the future price of the shares increase or decrease.

Leveraged trading

Given that spread bets are leveraged products, it makes it possible for a trader to gain exposure to large share values by investing with only a fraction of that value. For instance, to spread bet on Vodafone shares, a trader needs to invest about 5% of the stock value for that number of shares only.

In forex trading, the trader has to invest the exact amount of money that is needed to purchase a certain number of shares. In this context, it requires more capital than its counterpart.

Commissions charged

Forex trading of shares usually attracts commission which is a percentage of the total stock value traded; it is charged by the stock brokers.

Spread betting however does not attract any commission charges whatsoever. The trader gets to earn the whole amount of cash of the stock they invested in.

Capital Gains Tax and Stamp Duty Charges

For spread betting, the trader is neither required to pay any stamp duty charges nor any tax on the capital gains.

Forex trading does not attract stamp duty but the trader is charged a capital gains tax. However, losses are considered as tax reductions.

Expiry

Spread bets do have expiry bets that are fixed to specific timelines. After these dates are reached, the investment is no longer active.

Forex trading do not have any expiry dates (except binaries, options and forwards), thus enabling traders to hold onto and gain from the shares for decades.

Physical Ownership

Stock traders gain physical ownership of the company thus the ability to attend AGMs and hence participate in the formulation of company policies. The more shares one holds, the more influence they have.

Spread betters do not have such privileges since it is simply speculative.

Profit Gains

For stock traders, one can only gain profit when the value of their shares appreciate. They suffer a corresponding loss when the price falls.

Spread betters have the ability of going both long and short- and can therefore bet and gain from either a fall or a rise in share value.

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52 Pros and Cons of Virtual Finance on Wed Mar 11, 2015 1:48 am

Over the last decade, there has been a great surge in the development of internet technologies thus increasing accessibility to several people throughout the world. This has in turn led to an increase in financial activities taking place over the internet, known as virtual finance. These services are offered by traditional financial institutions such as banks and stock brokerage firms as well as newer institutions such as online payment services which are sorely based on the internet.

There are many aspects of virtual finance that make it such an attractive medium that it is today. However, it also has some cons which may discourage people from widely embracing them. These two aspects are what will be focused on in this section article. Keep reading and learn more!

Advantages of Virtual Finance
There are innumerable pros that are associated with virtual finance. Some of these include:
Wide Accessibility- Have you ever decided to go and visit a land based financial institution but found it impossible to summon the energy to do so? If you have had this experience, virtual financial institutions present you with a very practical solution and one that demands next to nothing in terms of the energy required on your part.
 This is because you can be able to access their sites from anywhere in the world and at any time without having to worry about travelling expenses or time. All you need is an internet connection.

Ease of movement- Most people on average, deal with more than one financial institution. However, moving from one land based financial institutions offer a great challenge due to the physical barriers and the time constraints.
Virtual financial institutions eliminate this since with them, one can move from one institution to another with ease by just the click of a mouse to open new tabs. This enables one to be engaged in several financial dealings simultaneously without any constraints.

Fast service- If you are familiar with most land-based financial institutions then you are aware that more often than not there will be a queue that you have to join when seeking services. This is completely eliminated in virtual financial institutions, where you will get the transaction you want done completed in the blink of an eye without waiting for long, which saves you time.
Availability and mobility- This is one front on which the virtual financial institutions are very advantageous. Unlike land based institutions which have set times at which they close, the virtual ones operate 24/7, 365 days a year on any device with internet connection.
Disadvantages of Virtual Finance

Notwithstanding the above pros, virtual finance also has some cons associated with it. These include:
Security- This is the biggest concern to most people. This is because their virtual accounts may suffer phishing, malware and hacker attacks thus leading to losses.
Personal relationship- With physical finance institutions such as banks, one has an opportunity to create a personal relationship that may last for many years with it. This is not the case with the virtual institutions as their dealings are purely transactional.
Transaction issues- Some transactions and problems are better addressed on a face to face basis. Virtual finance does not offer clients this as all transactions are based on the web.

http://www.commexfx.com/pros-and-cons-of-virtual-finance/

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53 The Gold Bubble Price and the Swiss Franc on Thu Mar 12, 2015 12:51 am

Gold is one of the most popular commodity assets, as well as being the highest valued precious metal. The gold bubble, which refers to the high market activity it attracts, is a millennia old due to this popularity. The Swiss Franc on the other hand is one of the eight basic currencies that are widely used in the global forex market.

With this in mind, it is quite obvious that the value or price of one will without an iota of doubt have an effect on the other in one way or another, directly or indirectly. This article focuses on how this has been the case in recent times and how this has in turn had effects on the global forex market and economy.

The Beginnings of the Swiss Franc Value and the Gold Bubble Price
The forex market is subject to several market forces that are mostly beyond the control of financial institutions such as the Swiss National Bank (SNB).To compound matters, the bank recently enacted unsound policies that resulted in the ballooning of Switzerland’s balance sheet from 100 to 500 billion in just over five years so as to hold the Franc down against other major currencies. This value represented about 2/3 of the countries’ GDP.

 This situation was especially dangerous for Switzerland who over the years has been a poster child of good economic policies, with the franc having been on a constant appreciation against other currencies. This, combined with its largely export-driven economy made it one of the most dangerous economic situations ever experienced by any country since the Great Depression.

Compensatory Measures Taken
In the wake of this looming disaster that may have seen the collapse of the Franc, the Swiss people went on a referendum in an effort to tap into the gold bubble as an alternative to the paper currency. The November 2014 vote had a 3-point agenda on which the Swiss had to vote on:

Returning the Swiss National gold held offshore back to the country
Compelling the SNB to hold at least 20% of the their assets in nothing other than solid gold
To prevent any further sale of gold.
With stiff opposition from both the Swiss government and the SNB, the Swiss people returned a ‘No’ vote thus maintaining the status quo at that time.

The Aftermath
Following the referendum results which prevented the widespread use of gold reserves, the SNB got a chance of taking other recovery measures to make the Franc more stable. The action it took was to remove the 1.20 EURCHF cap that had been set in late 2011- a time when the gold bubble had hit an all -time high. This made the franc fall below 1.0.

The move did not come without consequences. The value of gold once again soared as stock traders escaped the hit to hedge themselves against the losses resulting from the currency’s devaluation. Also, greatly affected were the Swiss manufacturing industries which experienced massive losses on their exports.

http://www.commexfx.com/the-gold-bubble-price-and-the-swiss-franc/

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54 Trading has never been more fun! on Mon Mar 23, 2015 9:34 pm

For a limited time only CommexFX offers you the chance to open a live trading account and get up to 100% Tradable bonus!

Claim your Tradable Bonus: http://commexfx.com/campaigns/50-70-100-tradable-bonus-promotion/

If you are a trader with a successful strategy then this is the bonus for you!

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55 CommexFx Review on Fri Mar 27, 2015 1:26 am


CommexFX gets atop the contenders with the diversified trading strategies, maximum client satisfaction and no hidden policies and procedures. From lowest spreads in the markets to the very option of copying other traders online, CommexFX makes its mark on the Forex Trading market. Being licensed by the CySEC, a user can rest assured to be working with a trusted and a regulated FX broker.

When it comes to the best of the FX market offers, CommexFX carves new ways coming up with the state of the art technology woven with robust technical expertise. With both live and a demo account, a user is never left deserted to lose the money. Bagging expertise with demo one assures welcoming good amount of profit.

In this CommexFX review, we’d go through where CommexFX stands out of others and how it can boast of being the best. Right after its launch, it has managed to grab the honorable awards like Best ECN Newcomer Asia in 2012 in addition to being the Best ECN Forex broker. Moreover, it has also garnered the Best Online Trading Platform badge. Let’s take a look at some of the best things to go with ComemxFX that would tell you why you need to choose it over others.

Here we go:
MT4 trader platform makes it easier than ever before to place trades. No complex and complicated figures and steps are involved. Moreover, it is also multi-terminal. The users can easily copy other traders with courtesy of MyFxbook Autotrade which is a socially connected platform offering the members to copy other ones who are already successfully making good bucks out of their FX trading on CommexFX.

Mobile trading allows the users to place their trades on the go. Users can work it out on all of the major Mobile Operating Systems like iOS, Android, Windows and Blackberry. Users can open and close a position, monitor the performance live and produce the activity reports while trading within a lucrative ECN/STP environment.

One of the best features of this latest CommexFX review deals with literally very low spreads. Other FX brokers in the market offer different spreads for different types of account. This discrimination won’t harm you whatever the size of your account is. The spreads offered are lowest in the market. The faster and prompt execution of trades makes the users comfortable with no chance of manipulating the prices as users have direct access to the live prices on the dashboard.

The CommexFX manages to secure and segregate the clients’ funds where it deposits the same with globally recognized and trusted banks. It is also a member of the ICF that assures the safety and security of the clients’ funds. Transferring your funds has never been that easy as CommexFX offers a smart card for the same.

The help desk is available 24 hours a day and 5 days a week. Imagine what you expect out of the best brokerage services, CommexFX has everything to offer. From a robust affiliate program to the best online trading environment, CommexFX has been tailored to meet your custom requirements. This CommexFX review brings to light all what you know.
For more about the CommexFX, join us on FB or Twitter for regular updates.

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56 The Top 5 Most Successful Forex Traders on Mon Mar 30, 2015 2:48 am


Forex Trading requires discipline, hard work, as well as, determination in order to be a successful trader. Most people have tried their hand on the trade, but have ended up with huge losses. The truth is, there are risks involved in forex trading but the real gurus know what it takes to be a winner. If you are a newbie in Forex Trading, you need to follow certain strategies in order to be successful.

To be successful in this field, you need to learn from other professionals who have made immense success in trading. There are various people around the world who are recognized for their expertise in this field and are included in some of the most successful traders in the world. Below is a list of some of the renowned forex traders who have made it through the good and bad times to be successful.

Bill Lipschutz
Bill Lipschutz was a brilliant student who had excellent mathematical skills. The New York born trader received his Bachelor degree in Fine Arts from Cornell College and then acquired a Masters Degree in Finance in 1982. His interest in stocks started during his college years where it’s said that he invested $12000 in stocks, which grew up to $250,000 after only a few months. Despite the huge achievements, Bill is said to have lost all his money to stocks but later shifted to Forex Trading, which was more stable. Bill is now a famous trader in the financial sector and is estimated to have made $300 million in a year by trading in the Forex market.

George Soros
The graduate from London School of Economics shocked the world when he made $1 billion in one day. When he gained $10 billion dollars, he was nicknamed as “the man who broke the bank of England.” George is a renowned author of investing books and is also a philanthropist. He is also said to have donated about 8 billion dollars in charity.

John R.Taylor, Jr.
John enhanced his trading skills at the Chemical Bank where he was working as a political analyst. He, then, became a Forex analyst for the bank after one year. This gave him the opportunity to build a strong foundation in the Forex Trade field. Today, the Princeton University graduate is the owner of a currency managing firm, FX concepts, and is also recognized for inventing computer-aided Forex Trading systems.

Stanley Drunken miller
After graduating from Bowdoin College, Stanley, he worked as an oil analyst for the Pittsburg National Bank. He, then, left his job at the bank and created the firm namely Duquesne Capital Management. It was at this time that he started working for George Soros, a successful Forex Trader, where he learned his trading skills. During his time with George, he is said to have earned both himself and Soros over $1 billion. He, then, returned to Duquesne in 2000 and is working there till today. He also owns a non-profit organization which is dedicated to educate people.

Andrew Krieger
Andrew became famous in 1987 when he sold the New Zealand currency between the value of $600 million to $1 billion. The value exceeded the money supply circulation in New Zealand at that time. Andrew earned $300 in revenue from the single transaction. In 1988, he worked for the Soros Management Fund and later moved to Northbridge Capital Management. He is also a philanthropist and is said to have made $350,000 donation for the tsunami victims in 2004.

http://www.commexfx.com/the-top-5-most-successful-forex-traders/

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Trading in the Forex market largely depends on your mindset. Your success or failure in the trade highly depends on your mindset. This means that if you do not have the right mindset, you will not be successful in making profits no matter how good your strategies are. The truth is that most traders often ignore this fact, or are simply unaware of how important it is for them to succeed in the Forex market. If you are not sure how to go about it, here are few tips that might help you develop a profitable Forex trading mindset.

Have Realistic Expectations
We all know the risks involved in Forex Trading. Sometimes, the business is so good that you might end up thinking that things are always the same. That’s the biggest mistake that a trader can make. Setting high expectations when you are just starting out will only discourage you especially after incurring severe losses. You need to accept that you might lose the money in your trading account and thus, you have to be prepared for it.

Be Organized and Have a Clear Plan
Successful traders always have a plan. With a trading plan, you can plan out the things you intend to do and what you should be looking out in the next trade. You also need to have a trade journal where you can record all your trades and use them to see your progress. The journals should also contain your long-term and short-term goals and how you plan to achieve them.

Be Patient
Most people get into Forex Trading with the aim of making quick cash. What they fail to realize is that quick money comes and go easily. It’s better to start doing your trade in the small daily charts instead of investing huge sums expecting to grow rich in one transaction. It’s better to wait for some time to place an order only when the price set ups are worth taking the risk. Also, remember that with trading, it’s all about winning or losing. You have to be prepared for anything.

Be Accurate in your Selection
Your experience in trading helps you discover what’s effective in making profits and staying away from what does not work. You need to be extremely choosy during your selection. Select only those strategies that are beneficial and valuable for your trading.

Always Be Prepared to Learn New Things
The best way to get a better understanding of the trade is by training yourself on a regular basis. Learn about the basic rules that are most effective in trading. Look for a “trade mentor” to help you get a clear understanding of the trade as well as motivating and rectifying you when mistakes are made. With that, you will be able to make wiser decisions while trading.

Familiarize Yourself With the Market Trends
In Forex Trading, the markets change every now and then. Most beginners find it hard to cope with the trend but the big secret is to know when to trade. First, you must learn the market properly and know how it works before venturing into the actual trading. You must learn and practice how to trade, how to place your orders and what to do when losses are incurred. This way, you will be able to develop a successful Forex trading mindset.

http://www.commexfx.com/tips-on-how-to-develop-a-profitable-forex-trading-mindset/

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58 Ways to Emotional Stability for Forex Traders on Thu Apr 02, 2015 2:42 am


Forex Trading can cause severe emotional instability problems especially when a trader loses his money. The first reaction when losses are incurred is anger and frustration which can, sometimes, make the trader become aggressive and violent. A Forex Trader must learn how to handle his emotions during such occasions in order to be successful in his ventures. The only way he can do this is to use his emotions in a positive way and as a source of inspiration to make crucial improvements. Below is a list of some of the most effective ways to maintain discipline in trading.

Exercise
Apart from helping you keep fit and healthy, exercise plays a crucial role in relaxing your body and mind, relieving stress as well as keeping your brain healthy. Exercise helps clear the mind and increases your ability to perform well even under intense pressure. It also helps in keeping your emotions stable at all times.

Always Be Happy
Spending a whole day frowning because you lost in your trades will only reduce your chances of winning in the next trade. This is because frowning will destabilize your mind in such a way that it will be much harder for you to make wise decisions while trading. You always need to smile and laugh because you will not only set a positive mindset but at the same time, you will be able to make successful trades.

Meditation
There are a million reasons why you should start meditating. Meditation has, over the years, proven its ability to improve a person’s overall well-being. One of the main reasons is that it helps reduce stress and anxiety attacks. This is especially common with Forextraders who spend their days waiting for the unexpected to happen during trading. Meditation is also known to increase serotonin production which is a hormone that improves mood and behavior. It also heals the body and mind, makes you become more focused, increases wisdom and gives you perspective and finally, it helps you beat the blues.

Set Your Goals Right
Nothing gives you more satisfaction than having clear set plans for the future. It gives you joy to know that, at the end, you will still achieve something, no matter how hard things become.

Take Care of Your Body
As a trader, you are always too busy to even take good care of your body. A healthy body and mind is more likely to have a positive mindset than an unhealthy one. Always take a balanced diet to provide your body with proper nutrients, exercise regularly to relax the body and mind and also, get quality sleep each day. Sleep helps the body relax and provides a great relief. It also helps stabilize our hormones which are the main causes of emotional instability.

Take Deep Breathes
Taking deep breathes offers some amazing benefits to the body. As a trader, sometimes, it’s hard to come to terms with huge losses. The next time you feel angry, resentful or anxious due to your loss, pay special attention to your breathing. The fact is, when negative emotions run high, your breaths become shorter and shallow. Take a couple of deep breaths everyday so as to stabilize your emotions.

Find Solace in Music
The right kind of music can help relax your mind and body, reduce chronic stress, and affect your emotions in a positive way.

Offer a Helping Hand to Others
Helping others brings back so much more in return. It makes you feel happy and less stressed knowing that you changed someone’s life in one way or the other.

Celebrate Your Achievements
As a trader, it’s easy to get carried away by emotions after earning huge profits from your trades. Most people crave for more and end up even stocking more money into their trading accounts in attempt to earn more. It’s always good to sit back and relax while enjoying the fruits of your labor.

http://www.commexfx.com/ways-to-emotional-stability-for-forex-traders/

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59 The Top 5 Most Successful Forex Traders on Mon Apr 06, 2015 1:28 am

Forex Trading requires discipline, hard work, as well as, determination in order to be a successful trader. Most people have tried their hand on the trade, but have ended up with huge losses. The truth is, there are risks involved in forex trading but the real gurus know what it takes to be a winner. If you are a newbie in Forex Trading, you need to follow certain strategies in order to be successful.

To be successful in this field, you need to learn from other professionals who have made immense success in trading. There are various people around the world who are recognized for their expertise in this field and are included in some of the most successful traders in the world. Below is a list of some of the renowned forex traders who have made it through the good and bad times to be successful.

Bill Lipschutz
Bill Lipschutz was a brilliant student who had excellent mathematical skills. The New York born trader received his Bachelor degree in Fine Arts from Cornell College and then acquired a Masters Degree in Finance in 1982. His interest in stocks started during his college years where it’s said that he invested $12000 in stocks, which grew up to $250,000 after only a few months. Despite the huge achievements, Bill is said to have lost all his money to stocks but later shifted to Forex Trading, which was more stable. Bill is now a famous trader in the financial sector and is estimated to have made $300 million in a year by trading in the Forex market.

George Soros
The graduate from London School of Economics shocked the world when he made $1 billion in one day. When he gained $10 billion dollars, he was nicknamed as “the man who broke the bank of England.” George is a renowned author of investing books and is also a philanthropist. He is also said to have donated about 8 billion dollars in charity.

John R.Taylor, Jr.
John enhanced his trading skills at the Chemical Bank where he was working as a political analyst. He, then, became a Forex analyst for the bank after one year. This gave him the opportunity to build a strong foundation in the Forex Trade field. Today, the Princeton University graduate is the owner of a currency managing firm, FX concepts, and is also recognized for inventing computer-aided Forex Trading systems.

Stanley Drunken miller
After graduating from Bowdoin College, Stanley, he worked as an oil analyst for the Pittsburg National Bank. He, then, left his job at the bank and created the firm namely Duquesne Capital Management. It was at this time that he started working for George Soros, a successful Forex Trader, where he learned his trading skills. During his time with George, he is said to have earned both himself and Soros over $1 billion. He, then, returned to Duquesne in 2000 and is working there till today. He also owns a non-profit organization which is dedicated to educate people.

Andrew Krieger
Andrew became famous in 1987 when he sold the New Zealand currency between the value of $600 million to $1 billion. The value exceeded the money supply circulation in New Zealand at that time. Andrew earned $300 in revenue from the single transaction. In 1988, he worked for the Soros Management Fund and later moved to Northbridge Capital Management. He is also a philanthropist and is said to have made $350,000 donation for the tsunami victims in 2004.

http://www.commexfx.com/the-top-5-most-successful-forex-traders/

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60 Benefits of Forex trading on Wed Apr 08, 2015 1:38 am


Forex is an acronym for Foreign Exchange Markets. Forex is further denoted by the symbol FX a well known term among investors, bankers and stock brokers across the world. The Foreign Exchange Market or currency market is a global, decentralized market for trading of currencies. Major international banks are the core participants in the FX market.

Financial centers around the world provide a convenient platform for trading in currencies among multiple buyers and sellers round the clock with the exception of weekends. And the FX market operates on several levels.

Let us briefly look at some unique advantages of FX trading.

24 hour market
As already mentioned in the introductory paragraph the FX trading operates on a 247 basis with the exception of weekends. Trading across the world starts when the markets open in Australia on Sunday evening and closes when markets end at New York Stock Exchange on Friday evening.

High Liquidity
Liquidity is when you can easily convert an asset into cash with minimum price fluctuations. In FX market one can easily effect transactions by moving huge lots of foreign currencies in and out of the market with least price fluctuations.

Low transaction cost
As per FX terminology the cost for a transaction is added with the price i.e. Buying price of the currency itself. This in other words is called a spread. Spread is the difference between the buying price and the selling price.

Leverage
The leveraging factor is nothing but the ability to trade more money in the market than what is actually available on the traders’ account. Forex brokers allow traders to make profits on the leveraging factor. If you are allowed to trade on a leverage factor of 50:1 ratio it means you can trade for $50 with $1 capital available on your account. You can control a trade volume of $50,000 with just $1000 worth of capital.

You need to open a Forex trading account online to be able to buy and sell foreign currencies. For every FX currency you buy, your account will be credited with the aforesaid amount. For every FX transaction you effect in terms of selling the corresponding currency will be debited from your online Forex Account. The profits you incur of the same will be wired directly into your account through Paypal.

Profit potential from rising and falling markets
You can trade freely in the market as far as your potential goes. If you feel a currency price will go up, you can buy it, in other words, go long. Increased currency price indicates you can sell it at the much increased price. You can compensate for huge profits by trading on volumes. On the other hand, if you feel the currency value is going to drop, you can sell it or go short.

Seasoned stock traders can make huge amount of profits and even become overnight millionaires. On the other hand, if you crave for huge amount of profits and start trading without following the tricks of the trade you can also end up losing a lot of money. Thus, you should exercise caution while you are operating in the Forex market or stock market.

http://www.commexfx.com/benefits-of-forex-trading/

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61 How To Achieve Your Forex Trading Goals? on Thu Apr 09, 2015 1:13 am

Every trader wishes to make profits by trading. It is hard to attain long term goals as only the minorities attain that milestone. Your trading actions must be well planned in order to achieve that level of success in trading. There are various ways of achieving long term goals:

1. Decide on the trading objective
Interrogate yourself and ask whether you aspire to be a full time trader or not. It is important to ask oneself whether one wants the trading actions to be continued from home or somewhere else. The trader must be clear with his own intentions and objectives.

2. Dividing the goals into bite-sized chunks
Long term goal must be divided into fragments. This step will help in the accomplishment of the goal realistic. There must be a mini goal for each month set aside. Psychologically, it is easier to attain mini milestones and not the gigantic ones. If the mini goals are captured this will charge you up with optimism which will act as a fuel in the long run.

Risking more is not the way to enhance your trading profits. Small profits must be earned consistently to boost up the level of confidence. Do not pounce on your goal at once, rather take one step at a time. Master the steps of trading, then aspire to be a professional trader. Achieve the mini goals and just them up to reach at the long term goal.

Various guidelines must be followed while devising the mini goals:

Structure of the mini goals
• Go for just six trades per month as this will cultivate discipline and keep oneself away from the temptation of over trading.
• Be consistent with your losing amounts. Do not increase the trading amount when you are a starter. Master the art and trading strategies, by heart the price action plan, trading journal only then go for bigger trading amounts.
• The amount of risk to be borne at each trade should be bearable.
• Monitor whether the risk reward ratio of 1:2 is achieved or not.
• The setup for price action should meet the various guidelines in the trading plan.
• Make use of daily affirmations in order to improve trading

3. Accomplish your goals by being a bit more thoughtful
Break your goals into small chunks so that it appears achievable and not impossible. Trading is something like operating the hedge fund where you are a manager. Follow the method of trading, your trading routine and do not always fix yourself on vague unachievable goals.

Risking the monetary figure which you cannot afford can be harmful for your trading career. Do not frame up a complicated trading mindset. Do not trade like a beast, but trade like a rational trader. Trade logically and methodically if you wish to attain your goals. Follow your trading routine to make a substantial amount of money at the end of the year. Set realistically achievable mini goals. Do away with your bad trading habits by giving the least importance to the instincts.

http://www.commexfx.com/how-to-achieve-your-forex-trading-goals/How To Achieve Your Forex Trading Goals?
Every trader wishes to make profits by trading. It is hard to attain long term goals as only the minorities attain that milestone. Your trading actions must be well planned in order to achieve that level of success in trading. There are various ways of achieving long term goals:

1. Decide on the trading objective
Interrogate yourself and ask whether you aspire to be a full time trader or not. It is important to ask oneself whether one wants the trading actions to be continued from home or somewhere else. The trader must be clear with his own intentions and objectives.

2. Dividing the goals into bite-sized chunks
Long term goal must be divided into fragments. This step will help in the accomplishment of the goal realistic. There must be a mini goal for each month set aside. Psychologically, it is easier to attain mini milestones and not the gigantic ones. If the mini goals are captured this will charge you up with optimism which will act as a fuel in the long run.

Risking more is not the way to enhance your trading profits. Small profits must be earned consistently to boost up the level of confidence. Do not pounce on your goal at once, rather take one step at a time. Master the steps of trading, then aspire to be a professional trader. Achieve the mini goals and just them up to reach at the long term goal.

Various guidelines must be followed while devising the mini goals:

Structure of the mini goals
• Go for just six trades per month as this will cultivate discipline and keep oneself away from the temptation of over trading.
• Be consistent with your losing amounts. Do not increase the trading amount when you are a starter. Master the art and trading strategies, by heart the price action plan, trading journal only then go for bigger trading amounts.
• The amount of risk to be borne at each trade should be bearable.
• Monitor whether the risk reward ratio of 1:2 is achieved or not.
• The setup for price action should meet the various guidelines in the trading plan.
• Make use of daily affirmations in order to improve trading

3. Accomplish your goals by being a bit more thoughtful
Break your goals into small chunks so that it appears achievable and not impossible. Trading is something like operating the hedge fund where you are a manager. Follow the method of trading, your trading routine and do not always fix yourself on vague unachievable goals.

Risking the monetary figure which you cannot afford can be harmful for your trading career. Do not frame up a complicated trading mindset. Do not trade like a beast, but trade like a rational trader. Trade logically and methodically if you wish to attain your goals. Follow your trading routine to make a substantial amount of money at the end of the year. Set realistically achievable mini goals. Do away with your bad trading habits by giving the least importance to the instincts.

http://www.commexfx.com/how-to-achieve-your-forex-trading-goals/

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62 Are Zombie Banks Real Liquidity Providers on Sun Apr 19, 2015 11:10 pm

A zombie bank is a stark and foreboding feature of the modern economy. The term zombie bank is essentially used to refer to a financial institution that possesses an economic net worth that is less than zero, which essentially means that this financial institution is in debt. Technically speaking, a financial institution that does not have any more money, that is, in fact, in debt itself should cease to be called a financial institution, as it does not possess any money that it can provide to other people, nor can it be trusted with anyone’s money as this money could very well be used to pay off debts.

However, the thing about zombie banks is that, even though they are in debt, they are continued to be called financial institutions. They are able to continue functioning in this capacity because their debts are being paid off through credit provided by the government. Whether this credit is being intentionally provided for this purpose varies, but the result is the same: a financial institution that is being its debt off by collecting more debt from a slightly less strict debt collector in order to continue providing financial services to unknowing patrons.

Liquidity is a term used to describe a markets ability to sell an asset quickly without having to reduce its price. This usually occurs due to the fact that the asset in question is in particularly high demand, and will be sold off quickly regardless of the markets requirements. Gold, for example, is an asset that is virtually always in high demand. Hence, the gold market has a high market liquidity. One asset with the absolute highest market liquidity is cash. Cash can be used immediately to purchase virtually anything and the speed with which it is used has no affect on its value. One does not need to wait for someone that is willing accept cash, because cash is the basic medium of financial transactions throughout the world.

The liquidation of an asset is essentially the exchanging of an asset with low market liquidity for an asset with high market liquidity. The asset with high market liquidity is often provided in a larger amount, proportional to the availability of that asset, than the asset with lower market liquidity. The most common form of liquidation is the exchange of any asset for cash, an act which is referred to as selling.

Zombie banks provide liquidity, it can be argued. If gold is provided to a zombie bank, cash is provided in exchange. However, this cash, this asset that is being provided by this zombie bank, is not an asset that the zombie bank possessed in the first place. Hence, the asset provided will likely be government money intended for an entirely different purpose. As a result, zombie banks certainly do not provided any real form of liquidity for assets due to the fact that they don’t possess the most liquid asset of all: money.

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There has been significant tension in the east of Europe, and much of this tension has been caused by Russian encroachment into Crimea and Ukraine. As a result, American companies that had become a mainstay of a flagging Russian economy began to freeze Russian accounts. The supremacy and dominance of America in the world of international economics allowed it to coerce Russia into withdrawing from Ukraine through the leveraging of accounts held by Russians with American companies MasterCard and Visa.

Following Russia’s involvement in crimes committed against Crimea, account holders at Russian banks who were using credit card services offered by MasterCard and Visa found their lines of credit frozen. However, Russia had already made moves this year that seemed like an attempt to end the American dollar’s supremacy in the foreign exchange market by selling of dollar assets and purchasing gold assets instead. A similar move was made by China last year. These attempts at destabilizing the dollar made by the two dominant superpowers after America seem to indicate a similarity in strategy that is shared between the two nations.

It is fitting, then, that China and Russia have begun to work together to try to topple the American economic behemoth. China had launched a credit card of its own called Union Pay, and this credit card is quickly gaining vogue in the Russian economy. Major Russian businessmen have already begun favoring the use of Union Pay credit cards, especially after the accounts freezing performed by MasterCard and Visa.

Union Pay is now the most widely used credit card in the world, mostly due to the fact that China’s enormous population almost solely uses this credit card rather than MasterCard or Visa. UnionPay now spreading to Russia, a similarly formidable economic entity, has lead to the rise of the Chinese Yuan as a strong contender for the world’s major currency. There are simply so many people in China, and as a result so many businesses and so much money being spent, that transactions in Yuan are slowly outstripping transactions in dollars.

As a result, the dollar has seen its popularity starting to wane in favor of other currencies. The dollar has become a lot more unstable in recent years, and a lot of this instability can be attributed to the confrontational political moves performed by the American government. The sanctioning of Iran and Russia, as well as an arguably unsuccessful economic war with China, has had America fighting on three fronts, and the strain is starting to show.

The use of UnionPay credit cards in Russia has also resulted in a bolstering of the Ruble. The lack of need to rely on dollar investments in order to stabilize the country has allowed the Ruble to stand on its two feet, something that is clearly indicated in the high amount of dollar to Ruble conversions in recent months.

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There is a sense of might that is often associated with Russia, a sense of rootedness, of ancient presence. This is due to the fact that Russia was, for a long time, one of the largest and most powerful empires in the world. However, as of late, this stereotype of Russian might and firmness has begun to slip. This is due to the fact that it lost, quite decisively, during the middle of the 20th century to its only major cultural competitor: The United States of America.

In the 21st century, America, thanks to its success in wars and its victory in the space race, has become the world’s major cultural exporter. Much has come of this development, not the least being the rise of the US dollar as the world’s major currency. Conversely, Russia, after the fall of the Soviet Union, has seen a steady decline in its currency. The Ruble was once a major contender in the world of foreign exchange, but these days it doesn’t seem to hold much weight. Russia has attempted to bolster its currency by purchasing dollar assets, however, a recent move by Russia seems to indicate an end to this trend.

Russia, seemingly inspired by a similar move performed by China recently, has begun selling of dollar assets and inflating its gold reserves. The gold buying reached an amount equivalent to over six billion dollars, the largest purchase made by the Russian government since the dissolving of the Soviet Union. This seems to be an attempt on Russia’s part to destabilize the American dollar, thereby ending its reign of supremacy and creating a vacuum that Russia can attempt to fill using its Ruble. The selling of dollar assets in favor of gold assets seems to be becoming an increasingly common trend among America’s economic competitors.

Russia’s purchase was so large that it accounted for a third of the world’s total spending on gold. The resulting impact on the American dollar has been, predictably, not too healthy for the currency. A marked decline in the value of the dollar was noticeable almost immediately after Russia finished purchasing the gold. Conversely, the price of gold seemed to rise, further inflating the value of Russia’s gold reserves.

The sudden influx of dollar sold by Russia into the foreign exchange market has resulted in economic shockwaves spreading out throughout several countries. These countries, particularly powerful Middle Eastern countries such as Jordan, Saudi Arabia, the UAE and Qatar, all possess currencies that are pegged to the US dollar. The marked decline in the value of these currencies due to the faith these countries have placed in the dollar might result in them shifting to a more stable currency, perhaps the Chinese Yuan or maybe even the Russian Ruble. With the rise of the Indian Rupee as a strong currency as well as the stability enjoyed by the Eurozone and British Pound, the dollar’s decline looks to be inevitable.

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The foreign exchange market is now considered the absolute largest market in the world. The market’s enormous success is due to the fact that the sole asset it deals in is, without a doubt, the only asset in the world that possesses absolute market liquidity: money.

The foreign exchange market deals basically in the trading of currency, which in essence means buying one currency by exchanging it for another. The value of currencies in relation to each other is in a constant state of flux, which allows people to make a profit by purchasing a currency during a period of stability and then selling it off if the value of the currency spikes.

The most stable currency is often considered to be the dollar. This is due to the fact that the American dollar has a reputation for solidity and stability. However, this once universally well regarded currency seems to be going through a downward spiral. This is due to several factors that have resulted in the depreciation of the American dollar, following a sudden foreign exchange volume growth of currencies being exchanged in the market.

In recent times, America has made certain economic and political moves that many countries considered to be hostile. Additionally, America’s political maneuvering has backfired in certain countries where it was trying to gain political leverage. A very poignant example of this is America’s involvement in the lifting of sanctions against Iran. America’s under the table economic war against Iran has always been related to nuclear weapons. The United States used its powerful economy and its status as the world’s major cultural exporter to leverage Iran’s abolition of its nascent nuclear program.

The economic sanctions imposed by America and the other four permanent members of the UN security council, these nations being the UK, France, Russia and China, as well as Germany, resulted in an intense downward spiral of the Iranian economy, which in turn resulted in massive depreciation of the Iranian currency, the Rial.

This resulted in the appearance of a unique trend among Iranians. They would change the Rials they possessed into dollars in order to preserve the value of the money they had earned. However, recently the economic sanctions placed upon Iran were lifted after Iran agreed to abolish its nuclear program. This resulted in the appearance of a steady increase in the value of the Rial, causing people who had invested in the American dollar to convert their money back into Iranian Rials. This resulted in a flurry of activity in the Foreign Exchange Market, as the sudden overflow of dollars into the market began to undermine the value of the dollar.

Additionally, there are several middle eastern countries with powerful currencies that were pegged to the dollar. However, this sudden depreciation of the dollar ended up creating a financial climate that forced people investing using these currencies to shift to different currencies, further increasing the volume of foreign exchange being conducted.

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66 Technical versus Fundamental Analysis on Wed May 06, 2015 3:24 am


The rule followed by all investors in all markets throughout the world is that they are looking to earn money. However, if one were to closely examine the dynamics of the foreign exchange market or the stock market, they would be able to ascertain that the nature of the investments being made in these markets, the nature of the money being placed where and for what, is similar to an activity that is well known for either providing heavy losses or enormous profits, an activity called gambling.

However, businessmen that gamble for too long often find that their luck has run out, and this loss of luck ends up leaving them on the streets after they lose everything. This is due to the fact that gambling is an extremely high risk endeavor, and is at least partly based on luck. The high risk nature of this endeavor can result in profit if the luck of the gambler is good, but the balance of probability states that, eventually, in one gamble or the other, the gamblers luck will run out, and when the gamblers luck runs out, he finds that he has lost everything that he had previously earned.

Hence, the smart businessman does not gamble often, and certainly never with all that he owns. Businessmen that get rich and stay rich tend to take a more analytical approach to their investments, especially when these investments are applied in markets as volatile as the stock or foreign exchange market.

In order to minimize risk, businessmen tend to use analysis techniques so that they may gather information that would end up helping them in making investments that would be profitable. There are two main analysis techniques that are implemented by traders.

The first analysis technique is called technical analysis. Technical analysis involves the studying of past trends in order to ascertain precedents. If the market that one is trading in looks like it is following a trend previously seen in the markets, the trader can act based on this trend. If there is precedent, technical analysis usually provides a sound prediction of how the market will behave in the near future, and the use of this analysis technique can go a long way towards helping investors and traders make sound financial investments in the markets.

The second analysis technique is called fundamental analysis. Fundamental analysis involves the studying of the business’s own statements and financial dealings in order to ascertain the amount of assets, liabilities and earnings, as well as the statements and financial dealings of competitors to do the same along with an in depth analysis of the markets current status. The collection of all this information can give a trader an idea of what businesses may be making a profit in the near future, and knowledge regarding future profitability of businesses can allow the trader or investor to make a sound investment or purchase based on this new found knowledge and earn a profit.

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67 Hedging Risks and Rewards on Thu May 07, 2015 2:49 am


The path to getting rich is fraught with potential disaster. Hence, if a businessman wishes to get rich, he must resign himself to the possibility that, at any point whatsoever along the way, he can lose everything and find himself dirt poor. This is so because the fastest way to get rich is through investments, trading in high volume markets, and essentially attempting to start and run a business. The alternative is working hard and climbing up the corporate ladder, but this method takes time and often is not nearly as fruitful as the latter option.

Hence, there are several techniques that businessmen, investors and essentially people with a lot of money implement in order to minimize the risk of their trade. One of these techniques is called hedging. Hedging is essentially making double investments, one investment which will turn out to be the main investment and another, less risky investment intended to offset any potential losses incurred from the former, riskier investment. It involves minimizing the risk that one faces whilst conducting a business deal.

A major risk faced by businesses is foreign exchange risk. This especially occurs when the business is getting money from a foreign country, one that possesses a currency different from the base currency used by the business. There is risk involved in such transactions because currencies can often be volatile. If the value of the currency being received by the business drops, the business could end up losing a lot of money. Businesses employ hedging in this regard by fixing an exchange rate with the foreign client, and obligating this client to pay at the very same rate regardless of any drops in currency value.

Hedging is essentially a method whereby future income is secured. A good industry whose example can be taken is the mining industry. Mining involves the extraction of raw materials and the selling of these materials to clients that are usually businesses in their own right, companies that use these materials to manufacture products of their own.

The mining process costs a lot of money, but the value of the ore being mined is volatile. If the price of the ore drops significantly, the company doing the mining can end up losing money. Hence, companies employ hedging in these situations by securing future selling prices with their clients beforehand. This way, no matter what the current price of the ore is, the buyers would be obligated to buy the ore at the agreed price, thereby securing profit for the company.

However, a fact of the investment world is that profit increases proportionally to risk. Hence, when a company reduces the risks of its ventures, it is also reducing potential profit along with potential losses. For example, if the aforementioned mining company had not secured prices beforehand and the price of the ore they were extracting increased significantly, they would stand to gain a lot of money that they wouldn’t have otherwise if they had employed hedging.

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Iran is a country that has long been somewhat of a black sheep in the world of international politics. Iran’s nuclear deal has resulted in its virtual ostracization by the more powerful countries of the west, and has resulted in several economic sanctions against Iran. These economic sanctions have resulted in a steady decline of the once powerful Iranian economy. These sanctions were mostly imposed by the permanent members of the UN security council, these members being the USA, UK, Russia, China and France. These sanctions were conditionally placed, with Iran having to cancel its nascent nuclear program in order to have them lifted. Iran has been notoriously stubborn in this matter, preferring to suffer the economic sanctions rather than abolish its nuclear program, to the detriment of its populace.

However, a recent even seems to have proven Iran the victor in this war of wills. The UN Security Council member nations, along with Germany, collectively referred to as the P5+1, following a series of intense talks conducted at the Headquarters of the United Nations, located in Geneva, decided to implement a deal that would require Iran to abolish its nascent nuclear program headquartered in Iran in exchange for a gradual phasing out of the economic sanctions that have been placed upon it.

This deal sent shockwaves throughout the economic world, particularly in the largest market in the world: The Foreign Exchange Market. A commonly acknowledged fact in the foreign exchange market was that the Iranian currency was very weak against the dollar. It was so weak that people had begun investing in the dollar currency in order to preserve the value of their earnings. However, immediately after the nuclear deal was signed, the Iranian rial began to appreciate against the US dollar. This lead to investors in the dollar currency to quickly exchange their money back into rials before the valued dropped too far. This influx of dollars being sold within Iran lead to a depreciation of the value of the dollar.

The US dollar is an extremely powerful currency. There are several currencies that are pegged to it. Hence, the decline in the value of the US dollar lead to a proportional decline in the values of the currencies of Bahrain, Cuba, Djibouti, Eritrea, Hong Kong, Jordan, Lebanon, Oman, Panama, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela. The majority of countries that have their currencies pegged to the US dollar are major countries in the Middle East, and virtually all of these countries have tense relations with Iran. All of these currencies are facing depreciation due to the Iran nuclear deal, something that will greatly the effect the future of these currencies in relation to the Iranian rial.

An increase in economic activity has also been noticed as a direct result of the lifting of these sanctions. This increase in economic activity is further bolstering the already appreciating Iranian rial, turning it into a strong currency in its own right.

http://www.commexfx.com/the-impact-of-irans-nuclear-deal-on-the-foreign-exchange-market/

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There is a firmament that divides modern history, a firmament after which can be found fear and a general political climate of distrust. This firmament is 9/11, 9/11 meaning the 11th of September 2001, a day on which terrorists attacked the world trade center in New York City.

The political implications of this attack was severe, resulting in the launching of a war on terror which has resulted in millions of deaths in the middle east. There have also been severe economic implications resulting from these terrorist attacks, especially after the war on terror began.

The first major impact was the deepening of the recession the America was already going through. This resulted in a dramatic decline of America’s currency, the dollar. The dollar is a major currency, with a majority of international trading being performed using US dollars as the standard currency due to its perceived solidity and stability. Hence, the sudden decline in value of the US dollar resulted in shockwaves travelling throughout the financial world, with many countries that generally conducted trade using the US dollar suffering losses due to the sudden devaluation of their most liquid asset.

The sudden decline of the US dollar affected many other countries currencies as well. This was due to the fact that many countries in Africa and the Middle East had pegged their currency to the dollar, maintaining a ratio of their currency units to a single dollar unit based on the value of the dollar. When the dollar’s value declined, these countries found the value of their own currency declining as well.

Another major financial repercussion of the war on terror was the immense financial burden it placed upon the countries involved. Wars are expensive, especially a war against an enemy as vague as “terrorism”. The amount America alone has spent on this war on terror is a massive two and a half trillion dollars. One could wonder how America was able to afford such a costly war and simultaneously fulfill the financial requirements of its own people, expenditures that are required to maintain its infrastructure. The answer to this question is simple: it couldn’t.

America simply didn’t have the money to pay for both a war on two fronts (Iraq and Afghanistan) and simultaneously pay for the expenses of maintaining its infrastructure, so it did what anybody would do when they want something they can’t afford: it borrowed. The national debt of America numbers in the tens of trillions, so high that America will likely never be able to fully pay off its debts. The economic implications of this debt is dire; America will eventually have a debt that is so high that it will struggle to pay the minimum required installment. The minimum repayment is in itself a farce as it only ends up increasing the overall debt. Once America’s debt goes past this point of no return, the result will invariably be disastrous.

http://www.commexfx.com/the-financial-aspect-of-the-war-on-terror-and-the-positive-index/

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There is a firmament that divides modern history, a firmament after which can be found fear and a general political climate of distrust. This firmament is 9/11, 9/11 meaning the 11th of September 2001, a day on which terrorists attacked the world trade center in New York City.

The political implications of this attack was severe, resulting in the launching of a war on terror which has resulted in millions of deaths in the middle east. There have also been severe economic implications resulting from these terrorist attacks, especially after the war on terror began.

The first major impact was the deepening of the recession the America was already going through. This resulted in a dramatic decline of America’s currency, the dollar. The dollar is a major currency, with a majority of international trading being performed using US dollars as the standard currency due to its perceived solidity and stability. Hence, the sudden decline in value of the US dollar resulted in shockwaves travelling throughout the financial world, with many countries that generally conducted trade using the US dollar suffering losses due to the sudden devaluation of their most liquid asset.

The sudden decline of the US dollar affected many other countries currencies as well. This was due to the fact that many countries in Africa and the Middle East had pegged their currency to the dollar, maintaining a ratio of their currency units to a single dollar unit based on the value of the dollar. When the dollar’s value declined, these countries found the value of their own currency declining as well.

Another major financial repercussion of the war on terror was the immense financial burden it placed upon the countries involved. Wars are expensive, especially a war against an enemy as vague as “terrorism”. The amount America alone has spent on this war on terror is a massive two and a half trillion dollars. One could wonder how America was able to afford such a costly war and simultaneously fulfill the financial requirements of its own people, expenditures that are required to maintain its infrastructure. The answer to this question is simple: it couldn’t.

America simply didn’t have the money to pay for both a war on two fronts (Iraq and Afghanistan) and simultaneously pay for the expenses of maintaining its infrastructure, so it did what anybody would do when they want something they can’t afford: it borrowed. The national debt of America numbers in the tens of trillions, so high that America will likely never be able to fully pay off its debts. The economic implications of this debt is dire; America will eventually have a debt that is so high that it will struggle to pay the minimum required installment. The minimum repayment is in itself a farce as it only ends up increasing the overall debt. Once America’s debt goes past this point of no return, the result will invariably be disastrous.

http://www.commexfx.com/the-financial-aspect-of-the-war-on-terror-and-the-positive-index/

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There was once a time, long ago, when work was all that a man was supposed to do. Workers went home only to sleep, or if they were lucky and slightly higher class, they were able to have fixed timings. Over time, the average work day has decreased, until working from nine in the morning to five in the evening became the standard work day, particularly for middle class employees. However, the middle class has recently been noted to be shrinking. Upward movement has always been a big part of the American dream, and in today’s financial climate, upward movement means long working hours.

It is no longer enough for the middle class employee to put in his eight hours with a lunch break, punching in and out and expecting to be promoted based on his loyalty to his employer. Nowadays, employees are expected to take their work home with them in order to meet deadlines that would otherwise be impossible to achieve within the official work day.

It is fair to say that the official work day is still the old eight hour work day with a one hour lunch break, but the work load of employees has increased to such a point that they are often reduced to eating a quick lunch whilst continuing their work. The reason for this is that companies, in an effort to reduce costs, have begun downsizing, decreasing their workforce in order to save money.

Conversely, the work load of the average company has increased drastically, and this drastically increased work load is being heaped upon a greatly depleted work force, resulting in employees being forced to stay back and increase their work days in order to meet their deadlines. These extra hours are often not paid for, as it is considered the employees duty to finish this work regardless of how long it is making his work day.

Additionally, the money that the average employee earns is worth less and less each year. Inflation results in a decrease in the value of dollar, making things that were once for twenty five cents fifty years ago now cost upwards of two or three dollars. Hence, the value of money can only be really ascertained by examining its purchasing power. Purchasing power is the value of money after adjusting for influence.

For example, if two dollars today are equivalent to twenty five cents fifty years ago, then it can be said that the purchasing power of the currency has remained stable. However, this is not the case. The purchasing power of the American dollar has decreased over the years, even after adjusting for inflation. Commodities and items these days are more expensive than they used to be when purchasing power is examined.

Hence, it is plain to see the lot of the average employee in middle class America. They work more than ever before, and for less money, a combination that is resulting in the destruction of the middle class.

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The stock exchange market is one of the most liquid markets in today’s economic dispensation.Trading in shares on these markets is one of the most important activities in both the national and global economy. This is because it is one of the most effective ways through which companies can raise large amounts of capital with minimum liability. It also gives traders the chance to own a piece of these companies, and hence the possibility of earning profits.

For traders, they can decide to use one or both of the available channels to trade in stocks. These are online trading platforms and stock exchanges. In the following paragraphs, the similarities and differences between the two have been expounded in order to arm traders with relevant information on which method to choose.

Charging of Commissions

On this front, the two methods are inherently quite similar. This is because in the traditional stock exchange, the stock brokers will always charge a commission on each and every stock that is traded through them.

The same is true for online trading platforms as well. This is because the online brokers will also charge a commission on the traded stocks. Sometimes this is hidden in the costs. Despite what is usually said, they do not necessarily charge a lower rate than the stock exchanges. These rates vary from one online broker to another and sometimes may be higher than those in traditional stock exchanges.

Capital Gains Tax

Governments usually levy a stamp duty in form of a capital gains tax on any stock that is traded on the stock market.

This means that regardless of the platform, be it stock exchanges or online platforms, the trading of shares will attract this tax.

Level of Competence Required of Traders

Although there is no minimum requirement in terms of trading experience that is needed for traders to participate in any of these markets, it should be a guiding factor in choosing which platform to use.

For greenhorn investors, stock exchanges would be a good idea to start with since the advice of stock brokers as well as their experience will make them more adept at judging markets, and hence enable the investors make the best move.

For more experienced traders, getting into online platforms in addition to the stock exchange would be a good way of diversifying the places they invest their cash or sell their shares.

Availability and Accessibility

The online trading platforms are easily accessible to traders as all they require is a computer and an internet connection. It is also possible to move from one platform to another by just opening a new tab.

On the other hand, one would need to physically move to the stock exchanges, thus costing more in terms of time, energy and money.

Volumes of shares being traded

The two platforms trade relatively the same number of shares in the same region. However, online platforms may offer the traders more variety since there are several of them, each of which offer a wide variety and volume of shares.

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The forex industry is one of the largest sectors of global economy with large amounts of money being traded. It also involves a large number of players across many countries. It is therefore important to have independent financial/ credit rating agencies so as to analyze the credit worthiness of the players that are involved in the forex industry.

If you have been seeking information regarding these agencies as well as their role in the global forex industry, then you will find this piece extremely useful as it delves into explaining all the details about them in a very well detailed, concise, and in a way that is easily understandable. Move on to the next paragraphs to learn all these and much more.

The Roles of Financial Rating Agencies

Financial agencies are an integral part of the forex industry. This is because they play a very central role in the market. These agencies perform the following functions:

Credit, Debt and Bond ratings
As their names suggest, this is the main role of the financial rating agencies. They do so by evaluating the debtor’s ability to repay the debt that is lent to them and hence the likelihood of default.

For national governments, the agencies issue a sovereign credit rating. The rating evaluates the creditworthiness of the country by taking into account the current economic conditions as well as the political stability of the given country.

Armed with these ratings, institutional investors are able to qualify as well as quantify the ease of doing business and the investment atmosphere of the country in question.

The agencies also issue the same ratings for individual companies as well as to certain kinds of securities, including preferred stock and corporate bonds. All these ratings can be offered for short term or long term obligations.

Financial Advice
Occasionally, the rating agencies may be called upon by financial institutions and even sometimes non-financial ones such as law firms, to help in the analysis of their metrics. In this scenario, they usually play an advisory role.

Major Financial Rating Agencies

There are several rating agencies in the world, but for a long time now, there have been 3 major financial rating in the world which controls about 95% of the global market share. This section is dedicated to providing an overview of these ‘Big Three’, as they are known.

Standard and Poor’s
This is the oldest, having been established by Henry Varnum Poor in the 1860s in the USA before merging with Standard Statistics (established in 1906) in the early 1940s. It today controls an estimated 40% of the market share.

Moody’s Investors Service
The company as it is known today was established in 1914, even though the founder, John Moody and his associates had been publishing financial statistical reports since the turn of the century. By the 1970s it had cemented its position and today also controls approximately 40% of the market share.

Fitch Ratings
It is dually headquartered in New York and London, having been founded in 1913. It holds a market share of 15% and is credited with formulating the D through AAA system of rating that has become the standard in the industry.

http://www.commexfx.com/the-forex-industry-and-the-financial-rating-agencies/

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