Forex Trading Best PracticesWritten by Diane McDee
FOREX, term for FOReign EXchange market, is an international exchange market where currencies from many different countries are bought and sold. Both long-term hedge investors and short-term investors that seek quick profits use FOREX. Trade reaches between 1 and 1.5 trillion US dollars per day. Needless to say, FOREX is a very lucrative market. Many wonder how to gain most profits by trading with FOREX. There are a few simple trade practices that can help any trader, either an amateur or a professional make significant profit from FOREX.The best traders firstly understand intricacies of FOREX trading. In order to be successful, one must understand how FOREX works. FOREX transactions are not centered in an exchange, unlike stock market. Many transactions can take place at different times all over world. This is important to note if one is going to invest in FOREX. In order to trade, one must simply find a trader (there are many around world, some can even be found online), decide currency to purchase, sell currency, and make profit. However, if FOREX was this simple, everyone would do it. In reality, most people have to gamble with FOREX because no currency is completely stable, and there is always risk for losing money. One of best FOREX practices, but also most potential hazardous is marginal trading. Marginal trading is when an investor speculates on currency prices by getting a credit line. This can lead to a vast gain, as well as a potential loss. Because FOREX can be traded without real money, trading with borrowed capital (marginal trading) can be very appealing. Using this techniques, an investor can invest more money without having to deal with as many money transfer costs. Marginal trading also allows bigger positions to be opened with a smaller amount of actual capital. This trading practice is certainly for short-term investor. The best long-term practices with FOREX are Technical Analysis and Fundamental Analysis. It is a good idea for small and medium sized investors to invest in technical analysis. Technical Analysis assumes that all information about market and future fluctuations of a currency can be found in price chain. In other words, technical analysis involves looking at past events in market and assuming that these trends will continue. This is a very good strategy because, quite simply, history has a habit of repeating itself. This is also safer because it entails less guesswork than marginal trading, since investor assumes that history will continue and therefore makes a safe investment in a strong currency that seems likely to continue a positive trend.
| | What are you worth? A practical insight into covering upWritten by Rachel Lane
Almost anything can be insured these days: breasts, legs, your goldfish, your mental health, physical health, your own life, your child’s life. You can insure against bad weather, good weather, political events….This week in Scotland, triathlon competitors were insured for £1 million in case they were injured by Loch Ness monster according to BBC….life insurance perhaps? It would seem that recent rumours of Nessie seeking a more exotic meal of wild venison and exploring loch shores have finally reached corporate world. ( http://www.lochnesstooth.com/ ) But is Nessie real monster in this, what other terrible creatures lie hidden in complexity of insurance documents? The insurance small-print is usually last thing most people take to bed to induce a soporific state and who could blame those opting for Dick Francis, Gilly Cooper or Joan Collins? In terms of personal insurance, there are eight general areas of insurance in which consumer should be interested: Buildings insurance Contents insurance Life insurance or life assurance Health insurance Family legal protection Pet insurance Travel insurance Car insurance Buildings insurance covers your property against damage typically caused by fire, flood, subsidence damage, temporary accommodation and cost of replacing broken or lost keys. External buildings in vicinity of insured property may also be covered, such as sheds and garages. The website, yourable.com which provides insurance information for disabled people, makes statement that building insurance should be bare minimum people take out, not only to protect property, but to protect mortgage. Alongside buildings insurance, contents insurance should also be considered. Contents insurance is frequently packaged with buildings insurance and covers your furniture, equipment and personal belongings against fire, lightning, flooding, theft or vandalism. Accidental damage can be included, but may be sold as an optional extra. Yourable.com advises that three main priorities when taking out building (or content) insurance should be: To decide how much cover you want – more you want covered, higher cost. To decide what excess you’re prepared to pay – site advises that in most cases, increasing excess will reduce premium To identify any particularly expensive single items in your home, including costly adaptations to home To isolate any property which is regularly taken outdoors, as contents insurance may also protect bicycles, money and credit cards etc
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