Advantages of Trading FOREX Over Stocks and Commodities

There are many advantages to Trading FOREX as your main income generator. Let's start by something that may be worrying you already.

"Do I need a Diploma or some kind of Certification to trade FOREX?" The answer is this:

When attempting to make more profit than losses on the fluctuation of exchange rates between major currencies (i.e., Trading the FOREX), nobody is going to ask you for a diploma, a formal license or verify the amount of hours you've spent studying the Foreign exchange market and banking industry. All you need is the proper training.

But this is not the only advantage you get when trading FOREX, compared to other ways of investment and speculation; i.e. Stocks and Commodities. You have a whole bunch of advantages over these other options that will be enumerated in the following paragraphs.

The Main Benefits of Trading the FX Spot Market:

1): FOREX is the largest financial market in the world.

With a daily trading volume of over $1.5 trillion, the spot FOREX market can absorb trading sizes that dwarf the capacity of any other market. In fact, when compared with the $50 billion daily market for equities or the $30 billion futures market, it becomes quickly apparent this gives you, and millions of other FOREX traders, almost infinite trading liquidity and flexibility.

2): FOREX is a TRUE 24-hour market.

The FOREX Market never sleeps. Trading positions can be entered and exited at any moment - around the globe, around the clock, six days a week. There is no waiting for an opening bell as in the case of trading stocks. It is a 24- hour, continuous electronic (ONLINE) currency exchange that never closes. This is very desirable for you if you want to trade on a part-time basis, because you can choose when you want to trade: morning, noon or night.

3): There is never a Bear Market in FOREX.

You can have access to a seamless, mutually-inclusive (two- way) exchange of currencies. Meaning, because currencies trade in "pairs" (for example, US dollar vs. yen or US dollar vs. Swiss franc), one side of every currency pair (for example, USD/JPY - JPY = YEN) is constantly moving in relation to the other. Thus, when you buy a particular currency, you are actually simultaneously selling the other currency in that particular pair. As the market moves, one of the currencies will increase in value versus the other. Of course, it is up to you to choose the correct currency to be long or short. Since currency trading always involves buying one currency and selling another, there is no structural bias to the market. This means you have equal potential to profit in both a rising or falling market.

4): High Leverage - up to 200:1 Leverage.

You are permitted to trade foreign currencies on a highly leveraged basis - up to 200 times your investment with some brokers. This is primarily attributed to the higher levels of liquidity within the currency markets. Standard 100,000- unit currency lots can be traded with as little as 1% margin, or $1,000. Mini FX accounts are permitted to trade with just 0.5% margin -- in other words, just $50 allows you to control a 10,000-unit currency position. Futures traders, who are accustomed to margin requirements generally equal to 5%-8% of the contract value, will immediately recognize that the FOREX market provides much greater leverage, and for stock traders, who must post at least 50% margin, thereâ??s no comparison. If you are looking for an efficient use of trading capital, this is it!

5): Price Movements Are Highly Predictable.

Although currency prices in the FX market may be volatile, they generally repeat themselves in relatively predictable cycles, creating trends. The strong trends that foreign currencies develop are a significant advantage for traders who use the correct "technical" methods.

Unlike stocks, currencies rarely spend much time in tight trading ranges and have the tendency to develop strong trends. Over 80% of volume is speculative in nature and, as a result, the market frequently overshoots and then corrects itself. As a technically-trained trader, you can easily identify new trends and breakouts, which provide for multiple opportunities to enter and exit positions.

6:) Commission-free Trading and Low Transaction Cost

When you trade FOREX, through one of our recommended brokers (this info is in our private resources section), you'll do it totally commission-free! These brokers don't charge commissions to trade or to maintain an account, and that goes for all clients trading the FOREX through them, regardless of your account balance or trading volume. Even Mini FX traders can buy and sell currencies online, commission-free.

What about trading fees? There are none of the usual fees to which futures and equity traders are accustomed -- no exchange or clearing fees, no N_F_A or S_E_C fees. Because currencies trade over-the-counter (OTC), via a global electronic network -- in FOREX, what you see is what you get, allowing you to make quick decisions on your trades without having to worry or account for fees that may affect your profit/loss or slippage.

In the equities markets, you must pay both a commission and exchange fees. The over-the-counter structure of the FX market eliminates exchange and clearing fees, which in turn lowers transaction costs.

So, if FOREX broker don't charge commissions, how do they make money? Like all traded financial products, over-the- counter currency trading involves a bid/ask spread, which represents the prices at which your counterparty is willing to trade. Because the currency market offers round-the-clock liquidity, you receive tight, competitive spreads both intra-day and night. Stock traders can be more vulnerable to liquidity risk and typically receive wider trading spreads, especially during after-hours trading.

7): Instantaneous Order Execution and Market Transparency.

Market transparency is highly desired in any trading environment. The greater the market transparency, the more efficient the market becomes. Unlike other markets where transparency is compromised (like in the Enron scandal), FOREX markets are highly transparent (i.e., analyzing countries, and having access to real-time research / news, is easier than companies).

Because of this transparency, as an FX trader, you will be able to exercise risk management strategies in accordance to the fundamental and technical indicators we teach at RapidForex.com

The FX market offers the highest level of market transparency out of all the financial markets. Because of this, order execution and fill confirmation usually occur in just 1-2 seconds. Markets that do not offer executable prices and force traders to absorb slippage obviously compromise the trader's profit potential considerably.

In the forex world, order execution is all-electronic and because you'll be trading via an Internet-based platform, instantaneous execution is routine. There are no exchanges, no traditional open-outcry pits, no floor brokers, and consequently, no delays.

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Vision -- What Are You Doing Today Towards Achieving Your Vision?

Every man who accomplishes things sees first in his mind what he wishes to do. He puts away all doubt. It makes no difference how small or how large the thing you want to do may be; if you have an unlimited confidence in your ability to do it, you will do it. - Charles Fillmore

By definition, vision is a future orientation, a broad stroke picture that serves as the basis for making decisions or taking actions towards achieving the vision. In order for a vision to become a reality, there are certain elements that must be present.

Most importantly, the vision must be anchored in truth. If there is no or little truth, the vision will not be obtainable. For example: If a client says that she wants to be an opera singer despite the fact that she truly can't sing-can't carry a tune, has no pitch, etc. it's not impossible for her to achieve some level of singing ability with singing lessons. However, the struggle and the reality is so far fetched, that it really doesn't make sense to have this as an aspiration.

Accordingly, it would be important to find out just what she would hope to gain or could expect her life to be like as an opera singer. Upon investigation and exploration, it would be discovered that she loves to be on stage, get attention, and perform in some way. Those qualities can be used in many ways besides being an opera singer - and surely would be anchored more in truth.

It is also important that the vision is aligned with your purpose in life. If she wants to make this world a better place by sharing her talents and gifts, then singing would probably not be a wise choice. On the other hand, if she chooses some form of teaching and reaching many people so that she is sharing her ideas and wisdom, she's probably aligned with her purpose. Perhaps some form of public speaking might be more appropriate.

A vision must be exciting and compelling. If not, there is no incentive to take steps towards making it happen. If she chose to have a vision of becoming a nurse and caring for sick people when in fact, she doesn't particularly enjoy being around sick people, it's not going to pull her forward to wanting it to become a reality. In fact, there will most likely be lots of struggle and sabotaging along the way. Could it be a possible vision with truth? "Yes, but..." She could learn nursing and she could care for sick people, and it does align with her vision of sharing talents and gifts, BUT for her, it's not exciting or compelling. Therefore, the chances of her finishing the necessary course work aren't great and even if she did, it would feel more like drudgery.

So in creating a vision, it's important to think about what experience you would like to have. It would be helpful to notice and check if it's anchored in truth - for you. Does it align with your purpose? Is it compelling and exciting to you? Could it pull you forward and be an incentive and is it motivating you to wanting to take steps towards it?

Invitation to Experiment: Create a vision for your life. Include the type of experiences you want to have - include ALL of the elements possible: such as where you will be living, how you will be living, with whom, what type of work you'll be doing, etc. Don't leave anything out from your dream. Once it's crafted, look at the truth in it. Does it align with your truth? Look at your purpose for being on the planet. Does it align with your purpose? And lastly, is it exciting and compelling? Could it motivate and inspire you to take steps to move towards it? If so, take your first step, and then the next. It may at first seem like a pipe dream, but if it's aligned and compelling enough, it can become reality. You may modify your vision along the way, but all the while, you are moving towards a life that truly fits who you are and what you want.

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6 Steps To Laying Out Your Competitive Strategy

Why do so many companies languish and watch as their business turns into a zero profit zone, while others seem to thrive?

When you look at your business, whether it's a new venture or a company with a long history, can you answer the following questions?

* What does my company do better than anyone else?
* What unique value do I provide to my customers?
* How will I increase that value next year?

Companies that fail to answer these questions, and don't believe they are of paramount importance, relegate themselves to marginal profitability at best and failure at worst. But companies that can answer these questions are able to raise the value bar for their customers and reap the benefits of success.

Of course, being able to answer 3 simple questions does not ensure success, but it is an important step in creating a strategic and focused operation which leads to a successful business. With today's business environment being so competitive, businesses need to re-invent the rules on which they compete in order to be successful. Companies like Wal-Mart have figured this out and have redefined competition in their market by delivering a unique value to a selected customer group. By maintaining a focus and discipline, they make it difficult for other companies to compete under old competitive terms.

Simply, competitive strategy has never been more important to success in today's business environment. It does not matter what type of business you are in or whether you are small, big or just starting out, a company can not survive without an adequate and focused strategic plan to best the competition. Yet many companies fail to execute a successful strategy; it is these companies that languish in the zero profit zone.

In simple terms, for a company to achieve success and enter the profit zone it must first decide where it will stake its claim in the marketplace and what kind of value it will offer its customers. A company needs a clear marketing thrust, a precise knowledge of its customer base, and a product or service with a niche or some competitive advantage to be successful. Unfortunately, many entrepreneurs and business owners get stuck in the process of defining their competitive strategy. They often have the idea and the product, but being the technician they are not sure how to define its market. Even worse, many entrepreneurs assume or guess their target market and often glaze over a competitive strategy, usually to the detriment of the business.

So what are the steps to laying out a competitive business strategy? While there are different methods you can follow, I have laid a series of 6 basic steps to help you.

1. Financial perspective

This step may not seem to have much to do with strategy, but it is important to determine the value of success quickly. Why? Because, in simple terms if the venture can't deliver significant returns, it may not be worth the risk, and you have to ask yourself if it is worth continuing with your business. In this scenario you complete a reverse income statement. You start by defining how much profit you want to see at the end of a certain time period, and then determine the amount of revenues needed to generate that profit and the costs to deliver that profit. Do the numbers add up and make sense? The goal here is to be objective, if the expected revenue is not sufficient to generate your required profit at the end based on an estimate of costs, don't simply fudge the numbers and assume you can reduce costs or increase revenue. Be diligent in your assessment.

2. Understand the industry and competition

In step 2 you are going to assess your industry and the competition. This basically comes down to assessing 5 factors:

* Understanding who your competition is including factors such as competitor strengths and weaknesses, market position, pricing, new product development, advertising, marketing and branding. You should determine how you compare to your competitors.
* Assessing the threat of new entrants into the industry (which may include you) and any potential reactions from existing companies. There are basically 6 barriers to entry you can evaluate: economies of scale, product differentiation, capital requirements, cost disadvantages, access to distribution channels, government policy.
* Assessing the threat of substitute products (existing or future) that can place a ceiling on pricing.
* Assessing the bargaining power of suppliers who can increase prices, lower the quality of products or limit the quantity of supplies one can purchase. This all has an impact on profitability.
* Assessing the bargaining power of customers who can force down prices or demand better quality, more services and play you off versus a competitor.

3. Understand the Customer Perspective
In step 3 you assess your customer. This is a key step, get it wrong and you may not be able to recover. In fact, the customer value proposition and how it translates into growth and profitability for the company is the foundation of strategy.
Start by asking your self a couple basic questions: To achieve my vision, how must my customers look? Who are the target customers that will generate growth and a profitable mix of products/services?
Next, ask yourself what is the value proposition which defines how the company differentiates itself to attract, retain and deepen relationships with the targeted customers? There are basically 3 value propositions or disciplines that you can choose from:
Cost leadership - In this discipline you choose to provide the best price with the least inconvenience to your customers.

* Product leadership - In this discipline you offer products that push the performance boundary (i.e. newer and better than competitors).
* Best total solution - In this discipline you deliver what the customer wants, cultivate relationships and satisfy unique needs. In this case, you may not be the cheapest or the newest, but the total package you deliver to the customer cannot be matched.

In order to help you determine which of these value propositions you decide on, you may want to work through a value chain: 1. Determine your customer priorities 2. Determine the channels needed to satisfy those priorities 3. Determine the offering (products) that are best suited to flow through those channels 4. Determine the inputs (materials/knowledge etc) required to create the product 5. Determine the assets/core competencies essential to the inputs (ask yourself, in order to satisfy my customer at which processes must I excel? For example, product design, brand and market development, sales, service and operations and/or logistics).
4. Finish the business model
The business model shows how all the elements and activities of a business work together as a whole by outlining how the business generates revenue, how cash flows through the business and how the product flows through the business. By this time, you should understand the revenue capability of the business, how the industry works and your competition, who you customer is, what you are going to offer them and how you are going to offer it. By drawing a flow chart that shows how these activities are linked together you will understand how the business activities flow to generate projected profit, which you determined in step 1. This is also a good step to see if something is missing in your analysis.
5. Construct the business plan
By the time you get to this step most of your work is done. If you are looking for financing, a formalized plan will have to be completed. If you do not need financing, simply make sure the preceding tasks are documented so that they can be reviewed and changed as time progresses (strategy is an ongoing process, not a one time task).

6. Learning and growth perspective

In this last step, you ask yourself how/where the organization must learn and improve in order to become and remain successful. For example, determine the skills, capabilities and knowledge of employees needed, the technology needed and the climate and culture in which they work. By Jeff Schein

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Top Reasons To Form A Strategic Business Alliance

A strategic alliance is when two or more businesses join together for a set period of time. The businesses, usually, are not in direct competition, but have similar products or services that are directed toward the same target audience. Below are ten reasons to create a strategic alliance.

1. You could offer your customers a larger variety of products or services. This will allow you to spend less time and money developing new products to sell.

2. Your number of sales people will increase because you're combining with other business. You won't have spend to time and money hiring new employees.

3. Your marketing and advertising budget will increase. When you form a strategic alliance with other businesses you both will share the advertising and marketing costs.

4. You can now offer your existing customers more back-end and upsell products. This will increase your sales and profits.

5. Your business will gain a larger number of skilled people working on the same project. You will gain the knowledge of the other businesses employees.

6. You will be able to beat your competition by selling to a larger target audience. You will also increase the total number of existing customers you can sell your products and services to.

7. You can exchange endorsements with your alliance partners. You'll add more credibility to your business and gain your potential customers trust to buy.

8. You can expand your business more rapidly. You can develop new products and services faster with a larger work force.

9. You'll be able to solve your customer's problems faster with a larger base of customer service people. You'll also learn new ways to improve your customer service from your alliance partners.

10. You'll have a larger number of "strategic thinking" people. This will allow both businesses to come up with profitable business ideas quicker than before.

By Julia Tang

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Planning For The Slow Season Of Your Business To Increase Sales

Every business experiences slower periods. For some, they sell more during the Christmas season while others move at a snail pace. Some sell more during the summer and others less. The key is being aware of your seasons and alternatives available to solve the challenge and change the results.
All businesses need down time, breathing room to re-evaluate where we're going, and where we've been. What's working and what's not? What changes need to occur and where we want to go in the future?
Have you planned your breathing room time into your calendar year?
As a coach and independent professional, I know by personal experience and through the feedback of my clients, that during the slow times, stress, fears, and challenges on how to pay the bills increases. Sometimes, stress increases without any money factors because we're not used to having additional time on our hands, so our brain manifests things to fill the void. So, what are the alternatives? Good question. Let's explore the possibilities...

You can use the "save for a rainy day" philosophy by moving a certain percentage from a regular account to a money market or savings account for those rainy time periods.

You can plan out, on a paper calendar your seasonal periods. Look at your Income Statement for the past few years and you will see a pattern appearing. If that history isn't available, ask others in your field area. As a coach, I'm in the personal development field. I would contact others in this field, like speakers, trainers, who have experience and history and interview them on the question.

After you review your historical financial information, keep in mind that future economic conditions will influence your seasonal plans. This requires a strategy on who and what you are going to use for economic indicator flags. This may require a financial planner, economist, or other professional on your support team. Reading the paper or watching the news is all well and good, however, it can also add to confusion. Too many cooks in the kitchen syndrome. Choose one or two cooks and ask the others to leave the kitchen.

Remember, there are different seasons all over the world. When its summer in the United States, there is a different season in Australia and Japan. If your marketing vicinity is global, you need to plan your seasons very carefully. Each requires different marketing strategies and procedures. When marketing in the U.S. reduces, marketing in other countries will most likely increase. Especially if you are in the bathing suit business.
If your business is strictly local, you can create additional products or services that will only be available during that season. This can maintain momentum. You can use the "limited availability" technique for these products.

You can use this time for vacation, organize, plan, create new products, and use your rainy day funds for support.

As well as, establish new joint ventures, expand personnel, test new product ideas, clean up backlogs in filing or emails, send out thank you gifts, upgrade your computer, or learn new software.

Keep in mind that leaving some of these to-dos might be detrimental to your revenue generation thinking. Allowing a build up of the items that support your success, as mentioned in the above two paragraphs, can create a desire to create your own self-fulfilling prophecy. You will intentionally create a slow period when a natural occurrence wouldn't regularly happen. An indicator can be if sales don't return after the slow cycle. Pay particular attention if it occurs.

Choose to do some planning today on your seasons for the money results you want tomorrow. Identify when and where your business and industry seasons are, explore all possible solutions, and work through a plan to fill the void. The results will almost be a given.

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