1. Understand Tire Basics
Simply put, a tire is a flexible container of compressed air. This air container support the vehicle's load; propels a vehicle forward, backward and side-to-side; stops the vehicle; and cushions the load from road imperfections.
Today's tires have between 19 and 25 different components. Tires are built from the inside out rather than the outside in. The heart of every tire is an inner liner. Its job is to give the tire shape and hold in air. Fabric belts are wrapped around the inner liner. The bead is fastened to the bottom of the fabric belts and holds the tire to the wheel.
On top of the fabric belts are steel belts. These belts have two jobs: They give the tire stability and make the tread pattern as flat as possible. (A flatter tread means more contact with the road.) The tire tread is on top of the belts. There are different tread patterns for different types of tires. The sidewell on the side of the tire gives it stiffness and ride characteristics. A taller, softer sidewall will absorb more bumps, while a shorter, stiffer sidewall will provide better cornering ability and sharper steering response.
On the sidewall of every passenger-car and light-truck tire is an alphanumeric code that describes the dimensions of the tire. For most tires, this code will start with a "P" (above, left). Some may start with an "LT" to signify light truck. Some tires may have a "Max. Load" indication (above, right). When selecting new tires, it is important to make sure a tire's load rating is at least a high as the tire you are replacing.
Friday, August 27, 2010
Tuesday, August 24, 2010
Currency Deals
Groupon-like deals. Today, Peanut Labs is launching a different twists to the crowdsourced local deal; the startup is allowing users to earn virtual currencies by buying local goods and services at huge discounts, called Cherry Deals.
So when playing a game on Facebook, a user will see the option of earning points for the game is they buy a Groupon-like deal. Cherry Deals uses your IP address to figure out where you are, and then serves up both national and local deals. Once you click on a deal, you can pay with your credit card within Facebook and you will receive the virtual currency in your gaming account. Cherry Deals will also serve as a standalone Facebook app. For now all the deals are U.S. based but Cherry Deals plans to expand to the U.K. and Canada by the end of this year.
The interface looks and feels just like Groupon, except that it is placed within Facebook. Ali Moiz, co-founder of Peanut Labs, says that they “felt no need to reinvent the wheel” in terms of design and the model. And Peanut Labs has already struck a few major deals for games to include the offers. Cherry Deals will be included in Facebook games produced by RockYou and TheBroth.
So when playing a game on Facebook, a user will see the option of earning points for the game is they buy a Groupon-like deal. Cherry Deals uses your IP address to figure out where you are, and then serves up both national and local deals. Once you click on a deal, you can pay with your credit card within Facebook and you will receive the virtual currency in your gaming account. Cherry Deals will also serve as a standalone Facebook app. For now all the deals are U.S. based but Cherry Deals plans to expand to the U.K. and Canada by the end of this year.
The interface looks and feels just like Groupon, except that it is placed within Facebook. Ali Moiz, co-founder of Peanut Labs, says that they “felt no need to reinvent the wheel” in terms of design and the model. And Peanut Labs has already struck a few major deals for games to include the offers. Cherry Deals will be included in Facebook games produced by RockYou and TheBroth.
Thursday, August 19, 2010
Find Good Investment Property
The idea of owning rental real estate seems to be gaining popularity as investors tire of the swoops and swoons of the stock market. As I pointed out in a separate column, not everyone has what it takes to be a landlord. But those who do may find rentals to be a good way to build wealth.
Once you've made the decision to buy rental property, your real work begins. Finding a profitable rental property usually takes time, connections and plenty of research.
Here's what you need to know to get started:
Know your time horizon
As with any other investment, you should have a good idea how long you plan to own a rental property before you buy it, says Robert Cain, publisher of the Rental Property Reporter newsletter.
The longer you plan to own the property, the more you'll probably need to invest in maintenance, repairs and improvements, Cain said.
"If you're keeping it for 20 years, at some point you're going to be putting a new roof on that property. You're going to be putting in new appliances and doing some major repairs," Cain said. If you're only planning to own a property for five years, by contrast, you'll probably want to avoid making any major improvements unless you're sure you can recoup the cost with a higher sale price.
You also may face more investment risk with a shorter time horizon. Although your rental will almost certainly appreciate over 20 years, it could easily lose value in the next five, particularly if you're buying in an overheated market. You'll need a bigger potential annual return to make up for that risk.
For many small investors, long-term ownership makes the most sense, said Pat Callahan, an attorney, landlord and founder of the American Association of Small Property Owners. You'll have plenty of time to ride out any swings in the market, and rental income can make a nice supplement to your day job. Find enough rental properties, and being a landlord may become your day job.
Once you've made the decision to buy rental property, your real work begins. Finding a profitable rental property usually takes time, connections and plenty of research.
Here's what you need to know to get started:
Know your time horizon
As with any other investment, you should have a good idea how long you plan to own a rental property before you buy it, says Robert Cain, publisher of the Rental Property Reporter newsletter.
The longer you plan to own the property, the more you'll probably need to invest in maintenance, repairs and improvements, Cain said.
"If you're keeping it for 20 years, at some point you're going to be putting a new roof on that property. You're going to be putting in new appliances and doing some major repairs," Cain said. If you're only planning to own a property for five years, by contrast, you'll probably want to avoid making any major improvements unless you're sure you can recoup the cost with a higher sale price.
You also may face more investment risk with a shorter time horizon. Although your rental will almost certainly appreciate over 20 years, it could easily lose value in the next five, particularly if you're buying in an overheated market. You'll need a bigger potential annual return to make up for that risk.
For many small investors, long-term ownership makes the most sense, said Pat Callahan, an attorney, landlord and founder of the American Association of Small Property Owners. You'll have plenty of time to ride out any swings in the market, and rental income can make a nice supplement to your day job. Find enough rental properties, and being a landlord may become your day job.
Wednesday, August 18, 2010
Mastercard 0% APR
Whenever I buy something online, I look to try to reduce the price of the item as much as possible. As a consumer, there are a variety of tools you can use to be a savvier shopper. Most consumers know to use a credit card with at least 1% cash back to reduce the price a small bit. Others shop online to avoid sales tax.
However, one trick I’ve used lately is buying store gift cards on the second hand market. If you’ve seen gift card industry statistics, they’re astonishing. There are billions of dollars lost each year in gift card value and several startups have stepped into the space because they sense an opportunity. The online buying and selling of gift cards is growing and that means opportunity not only for these startups, but savvy consumers.
How This Works
You can buy gift cards online for less than the face value of the card, which means more savings at the register or checkout screen. For example, with Mother’s Day right around the corner, you’re probably thinking about buying Mom some flowers. If you’ve been scoping out the various flower deals, perhaps you’ve settled on a bouquet from 1-800-Flowers. You’ve scoped out the coupons, you’ve checked all the partnership websites giving a small percentage off if you buy through their affiliate link, and now you want a little extra edge.
Buy a gift card online. It’s treated like any other form of payment, plus you can buy it with a credit card and still get the cashback! (incidentally, you can buy 1-800-Flowers gift cards online for 25%-30% off!)
However, one trick I’ve used lately is buying store gift cards on the second hand market. If you’ve seen gift card industry statistics, they’re astonishing. There are billions of dollars lost each year in gift card value and several startups have stepped into the space because they sense an opportunity. The online buying and selling of gift cards is growing and that means opportunity not only for these startups, but savvy consumers.
How This Works
You can buy gift cards online for less than the face value of the card, which means more savings at the register or checkout screen. For example, with Mother’s Day right around the corner, you’re probably thinking about buying Mom some flowers. If you’ve been scoping out the various flower deals, perhaps you’ve settled on a bouquet from 1-800-Flowers. You’ve scoped out the coupons, you’ve checked all the partnership websites giving a small percentage off if you buy through their affiliate link, and now you want a little extra edge.
Buy a gift card online. It’s treated like any other form of payment, plus you can buy it with a credit card and still get the cashback! (incidentally, you can buy 1-800-Flowers gift cards online for 25%-30% off!)
Monday, August 16, 2010
FX in USA
For those of you who are not aware as to the origins of BREEZE FX Forex Broker, we developed a medium for forex traders where they could trade with confidence. Having read countless articles and forum entries from various wronged clients around the world,outlining the misfortune that they have encountered with other Forex Brokers, We decided to open BREEZE FX.
We would advise all participants whether you are an existing client or somebody who has a passing interest in the market, to have a look at the forex check list that all forex traders should adhere to for the financial safety.
Ensure the first thing that you identify is that the Forex company is regulated. .com ,are regulated by the Financial Services Authority in the United Kingdom. If you are not aware of this institution, then it is important for you to know that it is one of the most stringent forex regulators on the planet.
You may have to fill out a little extra information when opening a forex trading account, however this is for your protection, and all online forex/cfd brokerages should follow this practice. If they do not, ask yourself why not?
There are a number of positive aspects that forex trading with a regulated forex company offers. Lets just assume that a worst case scenario and BREEZE FX for one reason or another went out of business. Your investment would be protected upto 20,000 GBP. This is a great safeguard, as it gives you the peace of mind that you will receive a payment to cover your loss.
Further to this, if you feel that you have been wronged or mistreated, then you have the power of redress. You can report to the regulator and they can investigate the complaint. If it is the proven that you have been treated in an unfair fashion then they can prosecute the forex broker accordingly.
Several years ago, the European Union passed MIFID (Markets in Financial Instruments Directive Nov 2007).This ensures a level playing field for all clients based within the EU. A forex brokerage regulated in the UK will offer the same protections even if you are a client in any of the EEA country (European Economic Area). For example, if you are from Germany and you wish to open a trading account with http://www..com you will have the same rights and protections as that of any German online forex brokerage.
The knowledgeable account managers at BREEZE FX, will only offer you one piece of advice. The best way for you to make money is to learn the markets yourself. This involves becoming a specialist in 1 or maybe 2 currencies or commodities.
We would advise all participants whether you are an existing client or somebody who has a passing interest in the market, to have a look at the forex check list that all forex traders should adhere to for the financial safety.
Ensure the first thing that you identify is that the Forex company is regulated. .com ,are regulated by the Financial Services Authority in the United Kingdom. If you are not aware of this institution, then it is important for you to know that it is one of the most stringent forex regulators on the planet.
You may have to fill out a little extra information when opening a forex trading account, however this is for your protection, and all online forex/cfd brokerages should follow this practice. If they do not, ask yourself why not?
There are a number of positive aspects that forex trading with a regulated forex company offers. Lets just assume that a worst case scenario and BREEZE FX for one reason or another went out of business. Your investment would be protected upto 20,000 GBP. This is a great safeguard, as it gives you the peace of mind that you will receive a payment to cover your loss.
Further to this, if you feel that you have been wronged or mistreated, then you have the power of redress. You can report to the regulator and they can investigate the complaint. If it is the proven that you have been treated in an unfair fashion then they can prosecute the forex broker accordingly.
Several years ago, the European Union passed MIFID (Markets in Financial Instruments Directive Nov 2007).This ensures a level playing field for all clients based within the EU. A forex brokerage regulated in the UK will offer the same protections even if you are a client in any of the EEA country (European Economic Area). For example, if you are from Germany and you wish to open a trading account with http://www..com you will have the same rights and protections as that of any German online forex brokerage.
The knowledgeable account managers at BREEZE FX, will only offer you one piece of advice. The best way for you to make money is to learn the markets yourself. This involves becoming a specialist in 1 or maybe 2 currencies or commodities.
Saturday, August 14, 2010
What is Trade
Trade is the voluntary exchange of goods, services, or both. Trade is also called commerce. A mechanism that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and services. Modern traders instead generally negotiate through a medium of exchange, such as money. As a result, buying can be separated from selling, or earning. The invention of money (and later credit, paper money and non-physical money) greatly simplified and promoted trade. Trade between two traders is called bilateral trade, while trade between more than two traders is called multilateral trade.
Wednesday, August 11, 2010
Oil Prices
The oil price has ingratiated itself with the lower price band for some time now closing below $73 a barrel in New York on Friday. There seems to be a melange of reasons at play for the price drop. First on the list- oil and gas prices have been rocked by the uncertainty about the extent of economic recovery.
The June job report, not on entirely unexpected lines, was grim with just 83,000 new private sector jobs added. Though lesser than anticipated it was better than the May figures when only 33,000 jobs were added. The unemployment figure did drop from 9.7 to 9.5 per cent-a modest gain, a gain nonetheless. However, analysts believe the drop happened as many people gave up their search for jobs.
On the whole, the job report indicates slow growth. The bearish job report didn't revive fears of recession but didn't offer any hope either. Soon after the jobs report, the price of U.S treasuries fell and the U.S stocks saw their worst week in two months. In Europe the shares closed higher though the German Bund futures fell. On Friday the Dollar fell against the Euro. The president expressed disappointment but said the nation was "headed in the right direction". He said, "We're not headed there fast enough for a lot of Americans," adding, "We're not headed there fast enough for me, either."
After nine consecutive months of northward march, factory orders declined in May-the sharpest since March-the commerce department announced on Friday. The orders for manufactured goods decreased 1.4 percent, the biggest since the March of last year. The departments said that demand for goods fell 2.1 percent. Both, the jobs report and the news from the manufacturing front, point to a slow recovery. The recovery is also an offshoot of the debt crisis in Europe- the governments in the region are moving to curb budget deficits through lower spending. The G-20 leaders have agreed, more or less, to deficit -reduction targets. Remember, a year ago it was times for a flurry of stimulus spending to avoid recession woes. Right now, the consumer confidence is low and so is the spending. Naturally, the demand is low for oil too.
Oil prices fell for the sixth consecutive trading session to jot the weakest price since June 9 with Crude oil dropping below the $73 a barrel in New York. The sweet crude for August delivery closed at $72.44 a barrel, down 4.1% at the New York stock, trading in the range of $75.40 to $72.36, heating oil was at $1.9155 a gallon losing 2.3 cents, and Natural gas settled for $4.687 per 1,000 cubic feet with a loss of 16.7 cents. In the ICE futures exchange, August North Sea Brent crude closed at $71.85 a barrel, 4.2 % lower. The tropical storm Alex, the first named one this hurricane season, didn't deter the oil prices as expected mid-week.
The June job report, not on entirely unexpected lines, was grim with just 83,000 new private sector jobs added. Though lesser than anticipated it was better than the May figures when only 33,000 jobs were added. The unemployment figure did drop from 9.7 to 9.5 per cent-a modest gain, a gain nonetheless. However, analysts believe the drop happened as many people gave up their search for jobs.
On the whole, the job report indicates slow growth. The bearish job report didn't revive fears of recession but didn't offer any hope either. Soon after the jobs report, the price of U.S treasuries fell and the U.S stocks saw their worst week in two months. In Europe the shares closed higher though the German Bund futures fell. On Friday the Dollar fell against the Euro. The president expressed disappointment but said the nation was "headed in the right direction". He said, "We're not headed there fast enough for a lot of Americans," adding, "We're not headed there fast enough for me, either."
After nine consecutive months of northward march, factory orders declined in May-the sharpest since March-the commerce department announced on Friday. The orders for manufactured goods decreased 1.4 percent, the biggest since the March of last year. The departments said that demand for goods fell 2.1 percent. Both, the jobs report and the news from the manufacturing front, point to a slow recovery. The recovery is also an offshoot of the debt crisis in Europe- the governments in the region are moving to curb budget deficits through lower spending. The G-20 leaders have agreed, more or less, to deficit -reduction targets. Remember, a year ago it was times for a flurry of stimulus spending to avoid recession woes. Right now, the consumer confidence is low and so is the spending. Naturally, the demand is low for oil too.
Oil prices fell for the sixth consecutive trading session to jot the weakest price since June 9 with Crude oil dropping below the $73 a barrel in New York. The sweet crude for August delivery closed at $72.44 a barrel, down 4.1% at the New York stock, trading in the range of $75.40 to $72.36, heating oil was at $1.9155 a gallon losing 2.3 cents, and Natural gas settled for $4.687 per 1,000 cubic feet with a loss of 16.7 cents. In the ICE futures exchange, August North Sea Brent crude closed at $71.85 a barrel, 4.2 % lower. The tropical storm Alex, the first named one this hurricane season, didn't deter the oil prices as expected mid-week.
Tuesday, August 10, 2010
USA Forex Rates - Aug 10
| Currency | Symbol | Buying | Selling | Charts |
 Australian Dollar | AUD | 77.5 | 78.5 |  |
 Bahrain Dinar | BHD | 226.4 | 227.1 | |
 Canadian Dollar | CAD | 82.4 | 83.4 | |
 China Yuan | CNY | 12.2 | 12.7 | |
 Danish Krone | DKK | 14.85 | 15 | |
 Euro | EUR | 112 | 113 | |
 Hong Kong Dollar | HKD | 11 | 11.4 | |
 Indian Rupee | INR | 1.82 | 1.87 | |
 Japanese Yen | JPY | 0.99 | 1 | |
 Kuwaiti Dinar | KWD | 294.5 | 295 | |
 Malaysian Ringgit | MYR | 27.3 | 27.8 | |
 NewZealand $ | NZD | 60 | 60.5 | |
 Norwegians Krone | NOK | 13.8 | 14 | |
 Omani Riyal | OMR | 221.5 | 222 | |
 Qatari Riyal | QAR | 23.4 | 23.55 | |
 Saudi Riyal | SAR | 22.72 | 22.95 | |
 Singapore Dollar | SGD | 62.7 | 63.7 | |
 Swedish Korona | SEK | 11.65 | 11.8 | |
 Swiss Franc | CHF | 81 | 82 | |
 Thai Bhat | THB | 2.7 | 2.77 | |
 U.A.E Dirham | AED | 23.22 | 23.45 | |
 UK Pound Sterling | GBP | 134.6 | 136 | |
 US Dollar | USD | 85.65 | 85.95 | |
Monday, August 9, 2010
Heating Oil Trading - USA Forex Rates Blog
Heating oil futures are investments on petroleum products that are normally kept in storage tanks above the ground and used in furnaces and boilers. Some sources compare heating oil to diesel fuel because the mixtures are similar and they burn at a lower temperature compared to some other heating sources. Natural gas and propane are more readily available in some parts of the country but in the areas they are not heating oil is often used because the cost is less than other types of fuels. Heating oil futures include options that give the buyer the right to a piece of the asset. Another popular term associated with this type of fuel is known as the crack spread. The crack spread is often based upon the profit margin made on petroleum products and is a common term used among traders. "And unto one he gave five talents, to another two, and to another one; to every man according to his ability; and straightway took his journey. He that had received the five talents went and traded with the same, and made another five talents" (Matthew 25:15-16).
Oil companies that refine their own products and sell to retailers are often cushioned from economic adversity when price changes occur because they also sell their products to the wholesale market. Another way that companies can protect themselves when economic diversity happens is by investing in heating oil futures and them selling them. Oil companies that have a system of transforming natural resources into a finished product are known as supply chains. Manufacturers extract the natural resources and refine the product by creating a mix of raw materials and components that make the final product which is then delivered to customers.
The forces of supply and demand determine how heating oil futures prices are set on a daily basis. The investor who purchases the option contract must fulfill the contract on the settlement date determined by the contract. On the settlement date the determined price will allow the seller or the buyer to lose or make a profit. Settlements can be realized through a physical settlement or through a cash settlement. The asset can be a barrel of oil or some other type of commodity. Futures contracts are often sold by farmers and other producers as a way to guarantee a specific price so that they can plan ahead. Selling options ahead of time can help them to have resources to cover feed costs and so on.
Popular traded commodities include agriculture such as grains, sugar, cotton, coffee, meat, livestock, metals, crude oil, natural gas, propane, heating oil, and environmental products that help energy efficiency. On the open market there are exchanges that regulate the trading of any type of commodity. The exchange authority makes sure that all trades including heating oil futures are conducted within the regulations set in place to protect all parties involved. These exchanges are under government control. They are not set up just for popular traded commodities but are set in place for any type of trade or investment that can occur within an open market.
An asset or instrument that is used to establish futures contracts can be set up on the open market if they are of interest to a buyer or investor. These can be in the market of heating oil futures or even in foreign currency. Some sources say that trading commodities began with rice, silk, and tulips. After that followed grains, meat, livestock, and energy. Trading assets and other types of products help economies and companies involved in the trading. Internationally this can have a large impact on an entire economy. This can be seen with the energy market and oil in particular. All countries need some form of energy to be able to live and prosper. Energy is needed to keep warm and to stay cool. Energy is needed to run a transportation system or just an individual's vehicle.
Those who might be guilty of breaking rules and regulations set down by the trading commission can be fined and punished depending upon the severity. Heating oil futures are regulated by the Commodity Futures Trading Commission which is an agency of the government that is run independently. Transactions are monitored consistently to make sure that all transactions are done legally and within the contracts where they fall. The trading commission helps to protect the public and those who trade on the market. They help to maintain an open and honest market so that other companies and countries will want to invest in commodities where supply and demand determines what is just and fair.
The open market was created to help merchants to trade their products without chaotic fluctuations in pricing. Cash forward contracts were made as an investment in future deliveries of commodities. Heating oil futures provide a buyer with a promised amount of assets in a specific amount of time. The buyer makes an agreement with the seller. At the time of delivery the set amount on the price is honored regardless of what the price is at that future date. This guarantees that the seller will sell the commodity and will guarantee the buyer a specific price based upon an agreed contract. The forming of the exchange commission has helped to keep these guarantees in place along with other rules and regulations that guarantee both the seller and the buyer with a fair way to trade.
Oil companies that refine their own products and sell to retailers are often cushioned from economic adversity when price changes occur because they also sell their products to the wholesale market. Another way that companies can protect themselves when economic diversity happens is by investing in heating oil futures and them selling them. Oil companies that have a system of transforming natural resources into a finished product are known as supply chains. Manufacturers extract the natural resources and refine the product by creating a mix of raw materials and components that make the final product which is then delivered to customers.
The forces of supply and demand determine how heating oil futures prices are set on a daily basis. The investor who purchases the option contract must fulfill the contract on the settlement date determined by the contract. On the settlement date the determined price will allow the seller or the buyer to lose or make a profit. Settlements can be realized through a physical settlement or through a cash settlement. The asset can be a barrel of oil or some other type of commodity. Futures contracts are often sold by farmers and other producers as a way to guarantee a specific price so that they can plan ahead. Selling options ahead of time can help them to have resources to cover feed costs and so on.
Popular traded commodities include agriculture such as grains, sugar, cotton, coffee, meat, livestock, metals, crude oil, natural gas, propane, heating oil, and environmental products that help energy efficiency. On the open market there are exchanges that regulate the trading of any type of commodity. The exchange authority makes sure that all trades including heating oil futures are conducted within the regulations set in place to protect all parties involved. These exchanges are under government control. They are not set up just for popular traded commodities but are set in place for any type of trade or investment that can occur within an open market.
An asset or instrument that is used to establish futures contracts can be set up on the open market if they are of interest to a buyer or investor. These can be in the market of heating oil futures or even in foreign currency. Some sources say that trading commodities began with rice, silk, and tulips. After that followed grains, meat, livestock, and energy. Trading assets and other types of products help economies and companies involved in the trading. Internationally this can have a large impact on an entire economy. This can be seen with the energy market and oil in particular. All countries need some form of energy to be able to live and prosper. Energy is needed to keep warm and to stay cool. Energy is needed to run a transportation system or just an individual's vehicle.
Those who might be guilty of breaking rules and regulations set down by the trading commission can be fined and punished depending upon the severity. Heating oil futures are regulated by the Commodity Futures Trading Commission which is an agency of the government that is run independently. Transactions are monitored consistently to make sure that all transactions are done legally and within the contracts where they fall. The trading commission helps to protect the public and those who trade on the market. They help to maintain an open and honest market so that other companies and countries will want to invest in commodities where supply and demand determines what is just and fair.
The open market was created to help merchants to trade their products without chaotic fluctuations in pricing. Cash forward contracts were made as an investment in future deliveries of commodities. Heating oil futures provide a buyer with a promised amount of assets in a specific amount of time. The buyer makes an agreement with the seller. At the time of delivery the set amount on the price is honored regardless of what the price is at that future date. This guarantees that the seller will sell the commodity and will guarantee the buyer a specific price based upon an agreed contract. The forming of the exchange commission has helped to keep these guarantees in place along with other rules and regulations that guarantee both the seller and the buyer with a fair way to trade.
Friday, August 6, 2010
Investment Myths - USA Forex Rates Blog
* Open Forex Account
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Investment Myths
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The foreign exchange market is one of the most popular markets for speculation, due to its enormous size, liquidity and tendency for currencies to move in strong trends. Presumably, these characteristics would enable traders to have tremendous success. However, success has been limited mainly for the reasons described below.
Many traders come with false expectations of the profit potential and lack the discipline required for trading. Short-term trading is not an amateur's game and is usually not the path for quick riches. Though currencies may seem exotic or less familiar than traditional markets (i.e. equities, futures, etc.), the rules of finance and simple logic are not suspended. One cannot hope to make extraordinary gains without taking extraordinary risks. A trading strategy that involves taking a high degree of risk means suffering inconsistent trading performance and often suffering large losses. Trading currencies is not easy (if it was, everyone would already be a millionaire), and many traders with years of experience still incur periodic losses. One must realize that trading takes time to master and there are absolutely no short cuts to this process.
The most enticing aspect of trading currencies is the high degree of leverage used. Leverage seems very attractive to those who are expecting to turn small amounts of money into large amounts in a short period of time. However, leverage is a double-edged sword. Just because one lot ($100,000) of currency only requires $1,000 as a minimum margin deposit, it does not mean that a trader with $10,000 in his account should easily be able to trade 10 lots or even 5 lots. One lot is $100,000 and should be treated as a $100,000 investment and not the $1,000 put up as margin. Most traders analyze the charts correctly and place sensible trades, yet they tend to over leverage themselves (take a position that is too big for their portfolio), and as a consequence, often end up forced to exit a position at the wrong time.
If an account value is $10,000 and the trader places a trade for 1 lot, he is in effect, leveraging himself 10 to 1, which is a very significant level of leverage. Most professional money managers are not allowed to leverage even this high. Trading in small increments on the account will allow the trader to endure many losing trades without experiencing large monetary losses.
* Deposit Funds
* MyFXCM
* Support
* Forex Forum
* Why Trade at FXCM Micro?
* Upgrade Forex Account
* Software Download
* Free Forex Demo
* Trading Contest
* Forex Charts
* DailyFX Forex News
* Educational Videos
Watch Video
tour of FXCM
Trading Platform
Investment Myths
Investment Protection
The foreign exchange market is one of the most popular markets for speculation, due to its enormous size, liquidity and tendency for currencies to move in strong trends. Presumably, these characteristics would enable traders to have tremendous success. However, success has been limited mainly for the reasons described below.
Many traders come with false expectations of the profit potential and lack the discipline required for trading. Short-term trading is not an amateur's game and is usually not the path for quick riches. Though currencies may seem exotic or less familiar than traditional markets (i.e. equities, futures, etc.), the rules of finance and simple logic are not suspended. One cannot hope to make extraordinary gains without taking extraordinary risks. A trading strategy that involves taking a high degree of risk means suffering inconsistent trading performance and often suffering large losses. Trading currencies is not easy (if it was, everyone would already be a millionaire), and many traders with years of experience still incur periodic losses. One must realize that trading takes time to master and there are absolutely no short cuts to this process.
The most enticing aspect of trading currencies is the high degree of leverage used. Leverage seems very attractive to those who are expecting to turn small amounts of money into large amounts in a short period of time. However, leverage is a double-edged sword. Just because one lot ($100,000) of currency only requires $1,000 as a minimum margin deposit, it does not mean that a trader with $10,000 in his account should easily be able to trade 10 lots or even 5 lots. One lot is $100,000 and should be treated as a $100,000 investment and not the $1,000 put up as margin. Most traders analyze the charts correctly and place sensible trades, yet they tend to over leverage themselves (take a position that is too big for their portfolio), and as a consequence, often end up forced to exit a position at the wrong time.
If an account value is $10,000 and the trader places a trade for 1 lot, he is in effect, leveraging himself 10 to 1, which is a very significant level of leverage. Most professional money managers are not allowed to leverage even this high. Trading in small increments on the account will allow the trader to endure many losing trades without experiencing large monetary losses.
Thursday, August 5, 2010
Bond Investment USA Forex Rates Blog
McDonald's (NYSE: MCD) definitely didn't price last week's bond issue off the Dollar Menu. The company issued new 10-year bonds with only a 3.5% coupon, and The Wall Street Journal reported the issue had the lowest interest rate for a 10-year U.S. corporate issue in at least 15 years.
The bond pricing is interesting since McDonald's stock yields more than 3%, and if it continues its trend of annual increases, the payout will be super-sized again this fall. Odds of those bonds having a yield premium over the stock at today's price by the end of 2011 are about the same as taking a long road trip and not seeing a Golden Arches somewhere near a highway exit. In short, the bonds look expensive, at least relative to the stock.
Since single data points don't tell a full story, I looked for other high-quality dividend growers with bonds that appear overvalued relative to the stock. The table below shows examples with each stock's dividend yield, an assumed dividend growth rate, bond maturity date and yield, and how many annual dividend hikes before the stock yield passes the bond yield. To be conservative, the assumed dividend growth rate is the smaller of the three-year dividend growth rate, the five-year dividend growth rate, or 10%.
The bond pricing is interesting since McDonald's stock yields more than 3%, and if it continues its trend of annual increases, the payout will be super-sized again this fall. Odds of those bonds having a yield premium over the stock at today's price by the end of 2011 are about the same as taking a long road trip and not seeing a Golden Arches somewhere near a highway exit. In short, the bonds look expensive, at least relative to the stock.
Since single data points don't tell a full story, I looked for other high-quality dividend growers with bonds that appear overvalued relative to the stock. The table below shows examples with each stock's dividend yield, an assumed dividend growth rate, bond maturity date and yield, and how many annual dividend hikes before the stock yield passes the bond yield. To be conservative, the assumed dividend growth rate is the smaller of the three-year dividend growth rate, the five-year dividend growth rate, or 10%.
Wednesday, August 4, 2010
USA Forex Rates Blogspot for Aug 3rd 2010
| Currency | Symbol | Buying |
Selling |
Charts |
| Australian Dollar |
AUD | 77.4 | 78.4 | |
| Bahrain Dinar |
BHD | 226.3 | 227 | |
| Canadian Dollar |
CAD | 83 | 84 | |
| China Yuan |
CNY | 12.3 | 12.8 | |
| Danish Krone |
DKK | 14.85 | 15 | |
| Euro |
EUR | 111.4 | 112.4 | |
| Hong Kong Dollar |
HKD | 11.1 | 11.5 | |
| Indian Rupee |
INR | 1.82 | 1.87 | |
| Japanese Yen |
JPY | 0.98 | 0.99 | |
| Kuwaiti Dinar |
KWD | 294 | 294.5 | |
| Malaysian Ringgit |
MYR | 27.3 | 27.8 | |
| NewZealand $ |
NZD | 60 | 60.5 | |
| Norwegians Krone |
NOK | 13.8 | 14 | |
| Omani Riyal |
OMR | 221.6 | 222.1 | |
| Qatari Riyal |
QAR | 23.4 | 23.55 | |
| Saudi Riyal |
SAR | 22.76 | 23 | |
| Singapore Dollar |
SGD | 62.8 | 63.8 | |
| Swedish Korona |
SEK | 11.65 | 11.8 | |
| Swiss Franc |
CHF | 81 | 82 | |
| Thai Bhat |
THB | 2.7 | 2.77 | |
| U.A.E Dirham |
AED | 23.26 | 23.5 | |
| UK Pound Sterling |
GBP | 133.8 | 135.8 | |
| US Dollar |
USD | 85.75 | 86.05 | |
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