Sunday, August 12, 2007
How to Quit Your Job
by: Debra Thorsen
Do you to know without ending up on the street? In a nutshell, you need to avoid the self-employment trap, think like a business, and create multiple passive revenue streams.Avoid the Self-Employment TrapIf you quit your job and hang up your own shingle, you might work harder for less money. You may enjoy working from home or choosing your own clients, but you might end up living from client to client without building any real wealth. Many self-employed people I know suffer from feast or famine. They spend lots of time and money marketing their services and get lots of clients. They get really busy doing the work and stop marketing and then their prospective client pool dries up. If you set up your business so that you do everything - marketing, sales, bookkeeping, operations, and fulfillment, then you are limiting your success potential from day one. You will spend lots of time on non-income generating activities and may get frustrated and burned-out in a short time. The real key to successfully creating wealth outside of a job is to avoid the mistake of trading one boss for another boss. You need to stop trading your time for dollars. Stop thinking like a wage slave. Look beyond earned income. Think Like a BusinessThere are many problems with earned income. The biggest one is that you are trading your time for money. If you stop trading your time, the dollars stop coming. This is a huge problem if you decide to have a baby, get sick, want to take an extended vacation, or are ready to retire. The IRS penalizes self-employed people who operate as a sole proprietorship with a hefty self-employment tax. How can you avoid this? Well, I am not an accountant or CPA, so I am not giving legal or accounting advice, but I have learned to think like a business. Before you quit your job, interview local tax advisors to educate yourself on different business entities and tax strategies. Start thinking big. Build a Company with Multiple Passive Income StreamsYou need to build a company that works for you. My best advice on how to quit your job is to build a business that offers multiple streams of passive income in addition to your earned income. There are so many exciting ways to design your income portfolio. It requires imagination, courage and planning. Structure your business so that your daily activities are fun and challenging. Identify the things that you don’t enjoy or are not good at and find other people to do these activities – outside partners, independent contractors, or employees. How to Quit Your Job My advice for how to quit your job is to avoid thinking that you have to do everything yourself to make your new enterprise run. Think big! Set up systems and structures that work for you so you don’t have to work so hard. Incorporate and make the tax system work for you. Design your work around multiple passive income streams to support your active work. And finally, have fun! About the author:Find out how to break free from the corporate world. Debra Thorsen is a happy corporate escapee who helps individuals create real wealth and happiness without 9 to 5 jobs. Visit for free tips on career change, wealth building, and living without fear.
Do you to know without ending up on the street? In a nutshell, you need to avoid the self-employment trap, think like a business, and create multiple passive revenue streams.Avoid the Self-Employment TrapIf you quit your job and hang up your own shingle, you might work harder for less money. You may enjoy working from home or choosing your own clients, but you might end up living from client to client without building any real wealth. Many self-employed people I know suffer from feast or famine. They spend lots of time and money marketing their services and get lots of clients. They get really busy doing the work and stop marketing and then their prospective client pool dries up. If you set up your business so that you do everything - marketing, sales, bookkeeping, operations, and fulfillment, then you are limiting your success potential from day one. You will spend lots of time on non-income generating activities and may get frustrated and burned-out in a short time. The real key to successfully creating wealth outside of a job is to avoid the mistake of trading one boss for another boss. You need to stop trading your time for dollars. Stop thinking like a wage slave. Look beyond earned income. Think Like a BusinessThere are many problems with earned income. The biggest one is that you are trading your time for money. If you stop trading your time, the dollars stop coming. This is a huge problem if you decide to have a baby, get sick, want to take an extended vacation, or are ready to retire. The IRS penalizes self-employed people who operate as a sole proprietorship with a hefty self-employment tax. How can you avoid this? Well, I am not an accountant or CPA, so I am not giving legal or accounting advice, but I have learned to think like a business. Before you quit your job, interview local tax advisors to educate yourself on different business entities and tax strategies. Start thinking big. Build a Company with Multiple Passive Income StreamsYou need to build a company that works for you. My best advice on how to quit your job is to build a business that offers multiple streams of passive income in addition to your earned income. There are so many exciting ways to design your income portfolio. It requires imagination, courage and planning. Structure your business so that your daily activities are fun and challenging. Identify the things that you don’t enjoy or are not good at and find other people to do these activities – outside partners, independent contractors, or employees. How to Quit Your Job My advice for how to quit your job is to avoid thinking that you have to do everything yourself to make your new enterprise run. Think big! Set up systems and structures that work for you so you don’t have to work so hard. Incorporate and make the tax system work for you. Design your work around multiple passive income streams to support your active work. And finally, have fun! About the author:Find out how to break free from the corporate world. Debra Thorsen is a happy corporate escapee who helps individuals create real wealth and happiness without 9 to 5 jobs. Visit for free tips on career change, wealth building, and living without fear.
How Many Forex Order Types There Are and How to Use Them In Your Favor
by: Adrian Pablo
Once you have decided to enter the Forex trading world, one of the first things you will have to do is downloading the trading station provided by your chosen forex broker for free. When you open your trading station software, you will find there are two main ways to enter a market or, said in another way, there are two ways to place an initial order to buy or sell any currency pair.“Market order”; this is an order to buy or sell a currency pair at the market price the instant that the order is received and processed (within seconds of hitting the "OK" button on your screen). When a market order is placed, you are simply saying "I'll buy or sell the currency pair at whatever price it is at when my order gets processed."“Entry order”; this is an order to buy or sell a currency pair when it reaches a certain price target. This can be any price in theory. You could set an entry order for the low price of a time period, or the high price of a time period. As an example, one usual recommendation is that you must always set an entry order to be the same price as the ‘open price” of the time period. When you place an “entry order” to buy, for example, you are simply saying "I want to buy this currency pair at a certain price, if it never reaches that price, I don't want to purchase the pair."After your “entry order” is placed, you can set a stop and/or limit order if you desire, and for your own security. Stop and Limit orders are two different ways to exit a trade, automatically (i.e., without closing out your position via the click of your mouse - manually), after the trade is entered.A “stop order” (something I will always recommend you) is used to stop losses. A “limit order” (recommended if you can't monitor your open trade) is used to redeem profits. Where these orders are placed, in relation to your open trade, depends on the direction of the entry order.Remember; a “stop order” is always placed below the current market value of that currency pair when you are in a long (buy) trade. And a “limit order” is always placed above the current market value of that currency pair when you are in a long (buy) trade. About the author:Adrian Pablo; Forex trader and freelance writer >> http://www.1-forex.com
Once you have decided to enter the Forex trading world, one of the first things you will have to do is downloading the trading station provided by your chosen forex broker for free. When you open your trading station software, you will find there are two main ways to enter a market or, said in another way, there are two ways to place an initial order to buy or sell any currency pair.“Market order”; this is an order to buy or sell a currency pair at the market price the instant that the order is received and processed (within seconds of hitting the "OK" button on your screen). When a market order is placed, you are simply saying "I'll buy or sell the currency pair at whatever price it is at when my order gets processed."“Entry order”; this is an order to buy or sell a currency pair when it reaches a certain price target. This can be any price in theory. You could set an entry order for the low price of a time period, or the high price of a time period. As an example, one usual recommendation is that you must always set an entry order to be the same price as the ‘open price” of the time period. When you place an “entry order” to buy, for example, you are simply saying "I want to buy this currency pair at a certain price, if it never reaches that price, I don't want to purchase the pair."After your “entry order” is placed, you can set a stop and/or limit order if you desire, and for your own security. Stop and Limit orders are two different ways to exit a trade, automatically (i.e., without closing out your position via the click of your mouse - manually), after the trade is entered.A “stop order” (something I will always recommend you) is used to stop losses. A “limit order” (recommended if you can't monitor your open trade) is used to redeem profits. Where these orders are placed, in relation to your open trade, depends on the direction of the entry order.Remember; a “stop order” is always placed below the current market value of that currency pair when you are in a long (buy) trade. And a “limit order” is always placed above the current market value of that currency pair when you are in a long (buy) trade. About the author:Adrian Pablo; Forex trader and freelance writer >> http://www.1-forex.com
Forex Broker Commissions
by: Eddie Tobey
Most forex brokers do not charge commissions. GFT Forex Brokers, like other forex brokers, are compensated by revenues from their activities as currency dealers, including proceeds from buying, selling, converting and holding currencies, interest on deposited funds, and rollover fees.Many may wonder how brokers work without commissions. The forex dealer is like a middleman. Let's consider the case of a bread middleman. He buys bread at a “wholesale” price and he sells it at a “retail” price. So if one is a baker, he can ask the middleman how much he would buy his bread for. Let's say the middleman quotes $1, so he's willing to pay $1 per loaf. On the other side of the equation, let's say you just finished his last slice of bread, and you needs a new loaf. So you call up the local middleman, and ask him how much he's willing to sell you (a customer) a loaf of bread for. And he quotes the baker $1.25. That sounds reasonable, so you tell him to drop one off for you.In this example, the bread middleman didn't charge you a commission to either the baker or you, the customer. Instead he bought at one price and sold at another. He will let you buy from him at $1.25, and let you sell to him at $1. So every time the baker has bread to sell, he checks the middleman's sell price. And when you want to buy a loaf of bread, you check the buy price.In trading, this is known as the “bid” and “ask”. The bid is the price you can sell at, and the ask is the price you can buy at.Considering forex broker commissions, the forex dealer will let the trader buy from him at 1.1971 and will let the trader sell to him at 1.1967. The difference 0.0004 is known as the spread. And this spread is where the forex “middleman” makes his money. If the trader were to buy at 1.1971, then the instant the trader buys, he is “down” 0.0004, because if the trader wanted out of the trade, the best price he could sell it for is 1.1967. So as the forex dealer takes varying trades from people, each buying or selling, he can make money from this price gap. Each minimum increment, 0.0001 is referred to as a “pip”. So the spread in this example is 4 pips. In terms of dollars, for a forex contract of $100,000, this transaction would cost you $40 ($100,000 x 0.0004) or 4 pips. So the trader will find that some companies will advertise a spread of 3 pips on some currencies, usually ranging up to five on others. In forex trading, the tighter the spread is, the better. About the author:Forex Broker Info provides detailed information on forex brokers, forex trading and market makers, and other forex-related topics. Forex Broker Info is the sister site of Incorporating in Florida Web.
Most forex brokers do not charge commissions. GFT Forex Brokers, like other forex brokers, are compensated by revenues from their activities as currency dealers, including proceeds from buying, selling, converting and holding currencies, interest on deposited funds, and rollover fees.Many may wonder how brokers work without commissions. The forex dealer is like a middleman. Let's consider the case of a bread middleman. He buys bread at a “wholesale” price and he sells it at a “retail” price. So if one is a baker, he can ask the middleman how much he would buy his bread for. Let's say the middleman quotes $1, so he's willing to pay $1 per loaf. On the other side of the equation, let's say you just finished his last slice of bread, and you needs a new loaf. So you call up the local middleman, and ask him how much he's willing to sell you (a customer) a loaf of bread for. And he quotes the baker $1.25. That sounds reasonable, so you tell him to drop one off for you.In this example, the bread middleman didn't charge you a commission to either the baker or you, the customer. Instead he bought at one price and sold at another. He will let you buy from him at $1.25, and let you sell to him at $1. So every time the baker has bread to sell, he checks the middleman's sell price. And when you want to buy a loaf of bread, you check the buy price.In trading, this is known as the “bid” and “ask”. The bid is the price you can sell at, and the ask is the price you can buy at.Considering forex broker commissions, the forex dealer will let the trader buy from him at 1.1971 and will let the trader sell to him at 1.1967. The difference 0.0004 is known as the spread. And this spread is where the forex “middleman” makes his money. If the trader were to buy at 1.1971, then the instant the trader buys, he is “down” 0.0004, because if the trader wanted out of the trade, the best price he could sell it for is 1.1967. So as the forex dealer takes varying trades from people, each buying or selling, he can make money from this price gap. Each minimum increment, 0.0001 is referred to as a “pip”. So the spread in this example is 4 pips. In terms of dollars, for a forex contract of $100,000, this transaction would cost you $40 ($100,000 x 0.0004) or 4 pips. So the trader will find that some companies will advertise a spread of 3 pips on some currencies, usually ranging up to five on others. In forex trading, the tighter the spread is, the better. About the author:Forex Broker Info provides detailed information on forex brokers, forex trading and market makers, and other forex-related topics. Forex Broker Info is the sister site of Incorporating in Florida Web.
Sales Forecasting For New Business
by: Ben Botes
Sales forecasting is the process of organizing and analysing information in a way that makes it possible to estimate what your sales will be. This Micro Module outlines some simple methods of forecasting sales using easy to find data. Books containing simple and sophisticated techniques of forecasting sales can be found in libraries and business oriented book stores. If you sell more than one type of product or service, prepare a separate sales forecast for each service or product group. There are many sources of information to assist with your sales forecast. Some key sources are: Competitors; Neighbouring Businesses; Trade suppliers; Downtown business associations Trade associations; Trade publications; Trade directories; Factors that can affect Sales can be divided into external and internal influences. Examples of these are:External: Seasons; Holidays; Special Events; Competition, direct or indirect Competition, External labour events; Productivity changes Family formations; Births and deaths; Fashions or styles; Population changes; Consumer earnings; Political events Weather Internal: Product changes, style, quality; Service changes, type, quality; Shortages, production capability; Promotional effort changes Sales Motivation plans; Price changes; Shortages, inventory; Shortages/working capital; Distribution methods used Credit policy changes; Labour ProblemsCreating a sales forecast can be divided into four steps.Step 1Develop a customer profile and determine the trends in your industry. Make some basic assumptions about the customers in your target market. Experienced business people will tell you that a good rule of thumb is that 20f your customers account for 80f your sales. If you can identify this 20ou can begin to develop a profile of your principal markets. Sample customer profiles: male, ages 20-34, professional, middle income, fitness conscious.Young families, parents 25 to 39, middle income, home owners. Small to medium sized magazine and book publishers with sales from $500,000 to $2,000,000 Determine trends by talking to trade suppliers about what is selling well and what is not. Check out recent copies of your industry's trade magazines. Search the Business Periodicals Index (found in larger libraries) for articles related to your type of business. Question: What are five customer profiles for your business?Question: What are some customer trends for your customers/clients?Step 2Look at the area where you will be tradingEstablish the approximate size and location of your planned trading area. Use available statistics to determine the general characteristics of this area. Use local sources to determine unique characteristics about your trading area. How far will your average customer travel to buy from your shop? Where do you intend to distribute or promote your product? This is your trading area. Estimating the number of individuals or households can be done with little difficulty using national census data to be found at your library or town hall. Your local statistics office or chamber of commerce can identify what the average household spends on goods and services. Neighbourhood business owners, the local Chamber of Commerce, the Government Agent and the community newspaper are some sources that can give you insight into unique characteristics of your area. Question: What are the statistics on the people in your area?Step 3List and profile competitors selling in your trading area.Refer back to the data you collected in your market research.Get out on the street and study your competitors. Visit their stores or the locations where their product is offered. Analyse the location, customer volumes, traffic patterns, hours of operation, busy periods, prices, quality of their goods and services, product lines carried, promotional techniques, positioning, product catalogues and other handouts. If feasible, talk to customers and sales staff. Step 4Use your research to estimate your sales on a monthly basis for your first year. The basis for your sales forecast could be the average monthly sales of a similar-sized competitor's operations that are operating in a similar market. It is recommended that you make adjustments for this year¹s predicted trend for the industry. Be sure to reduce your figures by a start-up year factor of about 50month for the start-up months. Consider how well your competition satisfies the needs of potential customers in your trading area. Determine how you fit in to this picture and what niche you plan to fill. Will you offer a better location, convenience, a better price, later hours, better quality, and better service? Consider population and economic growth in your trading area. Using your research, make an educated guess at your market share. If possible, express this as the number of customers you can hope to attract. You may want to keep it conservative and reduce your figure by approximately 15àPrepare sales estimates month by month. Be sure to assess how seasonal your business is and consider your start up months.Further tipsSales revenues from the same month in the previous year make a good base for predicting sales for that month in the succeeding year. For example, if the trend forecasters in the economy and the industry predict a general growth of 4or the next year, it will be entirely acceptable for you to show each month¹s projected sales at 4igher than your actual sales the previous year. Credible forecasts can come from those who have the actual customer contact. Get the salespersons most closely associated with a particular product line, service, market or territory to give their best estimates. Experience has proven the grass roots forecasts can be surprisingly accurate. Sales Forecasting and the Business PlanSummarize the data after it has been reviewed and revised. The summary will form a part of your business plan. The sales forecast for the first year should be monthly, while the forecast for the next two years could be expressed as a quarterly figure. Get a second opinion. Have the forecast checked by someone else familiar with your line of business. Show them the factors you have considered and explain why you think the figures are realistic. Your skills at forecasting will improve with experience particularly if you treat it as a "live" forecast. Review your forecast monthly, insert your actual, and revise the forecast if you see any significant discrepancy that cannot be explained in terms of a one-time only situation. In this manner, your forecasting technique will rapidly improve and your forecast will become increasingly accurate. About the author:Ben Botes is an author, entrepreneur and expert speaker on new venture creation. He is also the founder of http://www.my1stbusiness.coma web portal for 1st time business owners and entrepreneurs. Visit my1stbusiness.com today for the most extensive range of small business resources, courses, articles and tools. Contact; ben.botes@my1stbusiness.com
Sales forecasting is the process of organizing and analysing information in a way that makes it possible to estimate what your sales will be. This Micro Module outlines some simple methods of forecasting sales using easy to find data. Books containing simple and sophisticated techniques of forecasting sales can be found in libraries and business oriented book stores. If you sell more than one type of product or service, prepare a separate sales forecast for each service or product group. There are many sources of information to assist with your sales forecast. Some key sources are: Competitors; Neighbouring Businesses; Trade suppliers; Downtown business associations Trade associations; Trade publications; Trade directories; Factors that can affect Sales can be divided into external and internal influences. Examples of these are:External: Seasons; Holidays; Special Events; Competition, direct or indirect Competition, External labour events; Productivity changes Family formations; Births and deaths; Fashions or styles; Population changes; Consumer earnings; Political events Weather Internal: Product changes, style, quality; Service changes, type, quality; Shortages, production capability; Promotional effort changes Sales Motivation plans; Price changes; Shortages, inventory; Shortages/working capital; Distribution methods used Credit policy changes; Labour ProblemsCreating a sales forecast can be divided into four steps.Step 1Develop a customer profile and determine the trends in your industry. Make some basic assumptions about the customers in your target market. Experienced business people will tell you that a good rule of thumb is that 20f your customers account for 80f your sales. If you can identify this 20ou can begin to develop a profile of your principal markets. Sample customer profiles: male, ages 20-34, professional, middle income, fitness conscious.Young families, parents 25 to 39, middle income, home owners. Small to medium sized magazine and book publishers with sales from $500,000 to $2,000,000 Determine trends by talking to trade suppliers about what is selling well and what is not. Check out recent copies of your industry's trade magazines. Search the Business Periodicals Index (found in larger libraries) for articles related to your type of business. Question: What are five customer profiles for your business?Question: What are some customer trends for your customers/clients?Step 2Look at the area where you will be tradingEstablish the approximate size and location of your planned trading area. Use available statistics to determine the general characteristics of this area. Use local sources to determine unique characteristics about your trading area. How far will your average customer travel to buy from your shop? Where do you intend to distribute or promote your product? This is your trading area. Estimating the number of individuals or households can be done with little difficulty using national census data to be found at your library or town hall. Your local statistics office or chamber of commerce can identify what the average household spends on goods and services. Neighbourhood business owners, the local Chamber of Commerce, the Government Agent and the community newspaper are some sources that can give you insight into unique characteristics of your area. Question: What are the statistics on the people in your area?Step 3List and profile competitors selling in your trading area.Refer back to the data you collected in your market research.Get out on the street and study your competitors. Visit their stores or the locations where their product is offered. Analyse the location, customer volumes, traffic patterns, hours of operation, busy periods, prices, quality of their goods and services, product lines carried, promotional techniques, positioning, product catalogues and other handouts. If feasible, talk to customers and sales staff. Step 4Use your research to estimate your sales on a monthly basis for your first year. The basis for your sales forecast could be the average monthly sales of a similar-sized competitor's operations that are operating in a similar market. It is recommended that you make adjustments for this year¹s predicted trend for the industry. Be sure to reduce your figures by a start-up year factor of about 50month for the start-up months. Consider how well your competition satisfies the needs of potential customers in your trading area. Determine how you fit in to this picture and what niche you plan to fill. Will you offer a better location, convenience, a better price, later hours, better quality, and better service? Consider population and economic growth in your trading area. Using your research, make an educated guess at your market share. If possible, express this as the number of customers you can hope to attract. You may want to keep it conservative and reduce your figure by approximately 15àPrepare sales estimates month by month. Be sure to assess how seasonal your business is and consider your start up months.Further tipsSales revenues from the same month in the previous year make a good base for predicting sales for that month in the succeeding year. For example, if the trend forecasters in the economy and the industry predict a general growth of 4or the next year, it will be entirely acceptable for you to show each month¹s projected sales at 4igher than your actual sales the previous year. Credible forecasts can come from those who have the actual customer contact. Get the salespersons most closely associated with a particular product line, service, market or territory to give their best estimates. Experience has proven the grass roots forecasts can be surprisingly accurate. Sales Forecasting and the Business PlanSummarize the data after it has been reviewed and revised. The summary will form a part of your business plan. The sales forecast for the first year should be monthly, while the forecast for the next two years could be expressed as a quarterly figure. Get a second opinion. Have the forecast checked by someone else familiar with your line of business. Show them the factors you have considered and explain why you think the figures are realistic. Your skills at forecasting will improve with experience particularly if you treat it as a "live" forecast. Review your forecast monthly, insert your actual, and revise the forecast if you see any significant discrepancy that cannot be explained in terms of a one-time only situation. In this manner, your forecasting technique will rapidly improve and your forecast will become increasingly accurate. About the author:Ben Botes is an author, entrepreneur and expert speaker on new venture creation. He is also the founder of http://www.my1stbusiness.coma web portal for 1st time business owners and entrepreneurs. Visit my1stbusiness.com today for the most extensive range of small business resources, courses, articles and tools. Contact; ben.botes@my1stbusiness.com
Pivot Points in Forex: Mapping your Time Frame
by: Raul Lopez
It is useful to have a map and be able to see where the price is relative to previous market action. This way we can see how is the sentiment of traders and investors at any given moment, it also gives us a general idea of where the market is heading during the day. This information can help us decide which way to trade. Pivot points, a technique developed by floor traders, help us see where the price is relative to previous market action. As a definition, a pivot point is a turning point or condition. The same applies to the Forex market, the pivot point is a level in which the sentiment of the market changes from “bull” to “bear” or vice versa. If the market breaks this level up, then the sentiment is said to be a bull market and it is likely to continue its way up, on the other hand, if the market breaks this level down, then the sentiment is bear, and it is expected to continue its way down. Also at this level, the market is expected to have some kind of support/resistance, and if price can’t break the pivot point, a possible bounce from it is plausible.Pivot points work best on highly liquid markets, like the spot currency market, but they can also be used in other markets as well.Pivot PointsIn a few words, pivot point is a level in which the sentiment of traders and investors changes from bull to bear or vice versa.Why PP work?They work simply because many individual traders and investors use and trust them, as well as bank and institutional traders. It is known to every trader that the pivot point is an important measure of strength and weakness of any market. Calculating pivot pointsThere are several ways to arrive to the Pivot point. The method we found to have the most accurate results is calculated by taking the average of the high, low and close of a previous period (or session).Pivot point (PP) = (High + Low + Close) / 3Take for instance the following EUR/USD information from the previous session:Open: 1.2386High: 1.2474Low: 1.2376Close: 1.2458The PP would be,PP = (1.2474 + 1.2376 + 1.2458) / 3 = 1.2439What does this number tell us? It simply tells us that if the market is trading above 1.2439, Bulls are winning the battle pushing the prices higher. And if the market is trading below this 1.2439 the bears are winning the battle pulling prices lower. On both cases this condition is likely to sustain until the next session.Since the Forex market is a 24hr market (no close or open from day to day) there is a eternal battle on deciding at white time we should take the open, close, high and low from each session. From our point of view, the times that produce more accurate predictions is taking the open at 00:00 GMT and the close at 23:59 GMT. Besides the calculation of the PP, there are other support and resistance levels that are calculated taking the PP as a reference. Support 1 (S1) = (PP * 2) – HResistance 1 (R1) = (PP * 2) - LSupport 2 (S2) = PP – (R1 – S1) Resistance 2 (R2) = PP + (R1 – S1)Where , H is the High of the previous period and L is the low of the previous periodContinuing with the example above, PP = 1.2439S1 = (1.2439 * 2) - 1.2474 = 1.2404R1 = (1.2439 * 2) – 1.2376 = 1.2502R2 = 1.2439 + (1.2636 – 1.2537) = 1.2537S2 = 1.2439 – (1.2636 – 1.2537) = 1.2537These levels are supposed to mark support and resistance levels for the current session. On the example above, the PP was calculated using information of the previous session (previous day.) This way we could see possible intraday resistance and support levels. But it can also be calculated using the previous weekly or monthly data to determine such levels. By doing so we are able to see the sentiment over longer periods of time. Also we can see possible levels that might offer support and resistance throughout the week or month. Calculating the Pivot point in a weekly or monthly basis is mostly used by long term traders, but it can also be used by short time traders, it gives us a good idea about the longer term trend. S1, S2, R1 AND R2...? An Objective AlternativeAs already stated, the pivot point zone is a well-known technique and it works simply because many traders and investors use and trust it. But what about the other support and resistance zones (S1, S2, R1 and R2,) to forecast a support or resistance level with some mathematical formula is somehow subjective. It is hard to rely on them blindly just because the formula popped out that level. For this reason, we have created an alternative way to map our time frame, simpler but more objective and effective. We calculate the pivot point as showed before. But our support and resistance levels are drawn in a different way. We take the previous session high and low, and draw those levels on today’s chart. The same is done with the session before the previous session. So, we will have our PP and four more important levels drawn in our chart. LOPS1, low of the previous session.HOPS1, high of the previous session.LOPS2, low of the session before the previous session.HOPS2, high of the session before the previous session.PP, pivot point.These levels will tell us the strength of the market at any given moment. If the market is trading above the PP, then the market is considered in a possible uptrend. If the market is trading above HOPS1 or HOPS2, then the market is in an uptrend, and we only take long positions. If the market is trading below the PP then the market is considered in a possible downtrend. If the market is trading below LOPS1 or LOPS2, then the market is in a downtrend, and we should only consider short trades.The psychology behind this approach is simple. We know that for some reason the market stopped there from going higher/lower the previous session, or the session before that. We don’t know the reason, and we don’t need to know it. We only know the fact: the market reversed at that level. We also know that traders and investors have memories, they do remember that the price stopped there before, and the odds are that the market reverses from there again (maybe because the same reason, and maybe not) or at least find some support or resistance at these levels.What is important about his approach is that support and resistance levels are measured objectively; they aren’t just a level derived from a mathematical formula, the price reversed there before so these levels have a higher probability of being effective.Our mapping method works on both market conditions, when trending and on sideways conditions. In a trending market, it helps us determine the strength of the trend and trade off important levels. On sideways markets it shows us possible reversal levels.How we use our mapping method?We at StraightForex (www.straightforex.com) use the mapping method in three different ways: as a trend identification (measure of the strength of the trend), a trading system using important levels with price behavior as a trading signal and to set the risk reward ratio (RR) of any given trade based on where the is the market relative to the previous session. About the author:Raul Lopez is the founder of www.straightforex.comA site dedicated to provide high quality training for Forex traders.
It is useful to have a map and be able to see where the price is relative to previous market action. This way we can see how is the sentiment of traders and investors at any given moment, it also gives us a general idea of where the market is heading during the day. This information can help us decide which way to trade. Pivot points, a technique developed by floor traders, help us see where the price is relative to previous market action. As a definition, a pivot point is a turning point or condition. The same applies to the Forex market, the pivot point is a level in which the sentiment of the market changes from “bull” to “bear” or vice versa. If the market breaks this level up, then the sentiment is said to be a bull market and it is likely to continue its way up, on the other hand, if the market breaks this level down, then the sentiment is bear, and it is expected to continue its way down. Also at this level, the market is expected to have some kind of support/resistance, and if price can’t break the pivot point, a possible bounce from it is plausible.Pivot points work best on highly liquid markets, like the spot currency market, but they can also be used in other markets as well.Pivot PointsIn a few words, pivot point is a level in which the sentiment of traders and investors changes from bull to bear or vice versa.Why PP work?They work simply because many individual traders and investors use and trust them, as well as bank and institutional traders. It is known to every trader that the pivot point is an important measure of strength and weakness of any market. Calculating pivot pointsThere are several ways to arrive to the Pivot point. The method we found to have the most accurate results is calculated by taking the average of the high, low and close of a previous period (or session).Pivot point (PP) = (High + Low + Close) / 3Take for instance the following EUR/USD information from the previous session:Open: 1.2386High: 1.2474Low: 1.2376Close: 1.2458The PP would be,PP = (1.2474 + 1.2376 + 1.2458) / 3 = 1.2439What does this number tell us? It simply tells us that if the market is trading above 1.2439, Bulls are winning the battle pushing the prices higher. And if the market is trading below this 1.2439 the bears are winning the battle pulling prices lower. On both cases this condition is likely to sustain until the next session.Since the Forex market is a 24hr market (no close or open from day to day) there is a eternal battle on deciding at white time we should take the open, close, high and low from each session. From our point of view, the times that produce more accurate predictions is taking the open at 00:00 GMT and the close at 23:59 GMT. Besides the calculation of the PP, there are other support and resistance levels that are calculated taking the PP as a reference. Support 1 (S1) = (PP * 2) – HResistance 1 (R1) = (PP * 2) - LSupport 2 (S2) = PP – (R1 – S1) Resistance 2 (R2) = PP + (R1 – S1)Where , H is the High of the previous period and L is the low of the previous periodContinuing with the example above, PP = 1.2439S1 = (1.2439 * 2) - 1.2474 = 1.2404R1 = (1.2439 * 2) – 1.2376 = 1.2502R2 = 1.2439 + (1.2636 – 1.2537) = 1.2537S2 = 1.2439 – (1.2636 – 1.2537) = 1.2537These levels are supposed to mark support and resistance levels for the current session. On the example above, the PP was calculated using information of the previous session (previous day.) This way we could see possible intraday resistance and support levels. But it can also be calculated using the previous weekly or monthly data to determine such levels. By doing so we are able to see the sentiment over longer periods of time. Also we can see possible levels that might offer support and resistance throughout the week or month. Calculating the Pivot point in a weekly or monthly basis is mostly used by long term traders, but it can also be used by short time traders, it gives us a good idea about the longer term trend. S1, S2, R1 AND R2...? An Objective AlternativeAs already stated, the pivot point zone is a well-known technique and it works simply because many traders and investors use and trust it. But what about the other support and resistance zones (S1, S2, R1 and R2,) to forecast a support or resistance level with some mathematical formula is somehow subjective. It is hard to rely on them blindly just because the formula popped out that level. For this reason, we have created an alternative way to map our time frame, simpler but more objective and effective. We calculate the pivot point as showed before. But our support and resistance levels are drawn in a different way. We take the previous session high and low, and draw those levels on today’s chart. The same is done with the session before the previous session. So, we will have our PP and four more important levels drawn in our chart. LOPS1, low of the previous session.HOPS1, high of the previous session.LOPS2, low of the session before the previous session.HOPS2, high of the session before the previous session.PP, pivot point.These levels will tell us the strength of the market at any given moment. If the market is trading above the PP, then the market is considered in a possible uptrend. If the market is trading above HOPS1 or HOPS2, then the market is in an uptrend, and we only take long positions. If the market is trading below the PP then the market is considered in a possible downtrend. If the market is trading below LOPS1 or LOPS2, then the market is in a downtrend, and we should only consider short trades.The psychology behind this approach is simple. We know that for some reason the market stopped there from going higher/lower the previous session, or the session before that. We don’t know the reason, and we don’t need to know it. We only know the fact: the market reversed at that level. We also know that traders and investors have memories, they do remember that the price stopped there before, and the odds are that the market reverses from there again (maybe because the same reason, and maybe not) or at least find some support or resistance at these levels.What is important about his approach is that support and resistance levels are measured objectively; they aren’t just a level derived from a mathematical formula, the price reversed there before so these levels have a higher probability of being effective.Our mapping method works on both market conditions, when trending and on sideways conditions. In a trending market, it helps us determine the strength of the trend and trade off important levels. On sideways markets it shows us possible reversal levels.How we use our mapping method?We at StraightForex (www.straightforex.com) use the mapping method in three different ways: as a trend identification (measure of the strength of the trend), a trading system using important levels with price behavior as a trading signal and to set the risk reward ratio (RR) of any given trade based on where the is the market relative to the previous session. About the author:Raul Lopez is the founder of www.straightforex.comA site dedicated to provide high quality training for Forex traders.
DEALING in NOTEBOOKS Is Like A Dream Come True
by: Harry S Richards
The huge advantages of starting a business dealing in laptops are not always appreciated but consider the following points . . .Laptops/Notebooks are easy to store. It is possible to operate the business from a single room. In fact we know a guy who stores a number of them under his bed. He says he can store up to twenty laptops with hardly any loss of room space.Laptops/Notebooks are always available from liquidation merchants and other specialist trade sources at prices which allow good reseller profit margins. It is a cash-doubler business for those we know who are quietly operating this business from a home base.For a completely free list of notebook wholesalers and liquidation merchants go to http://www.liquidations-uk.net for Europe. In USA go to http://www.liquidations-uk.net/usa Laptops/Notebooks are easy to pack to sell by Mail Order. Take up to four under your arm to your local Post Office and using standard parcel rates and insurance the cost to fulfil orders will be a pittance compared to the profit potential.However, unless working from a cramped room, be professional and send the order by Courier Service, after all, the profit margin is HUGE enough to allow for a "Free Delivery Service".Recently sourced laptops/notebooks from a repo-liquidation reseller allowed for a mark-up ratio of 150 percent and it doesn't stretch the imagination to calculate how much could be made each week from just a couple of re-sales that allows you to double your investment on each transaction.There are of course warranties to be considered and how to deal with any faulty returns. Those were concerns I had myself in the beginning. However, I found an easy way to resolve those issues to everyone's satisfaction. It was so simple, just make a complete replacement and send the faulty one back to the supplier. Within the past year I have only needed to do that three times which equates to a very small percentage of total sales volume.Here's hoping you'll give it a try and if so I would love to get some feedback from you - please let me know what you think of the business anyway, your thoughts are always welcome.Feel free to reprint this article in its entirety in your ezine or on your site as long as you leave the author's copyright in place and the links in place, do not modify the content and include our resource box as listed below. About the author:Article by Harry S Richards. Founder of Beauforts PC Trading. Training others for business based upon his own successful methods: http://www.beauforts.bizHarry also edits a unique Trading MART at http://www.themartuk.com
The huge advantages of starting a business dealing in laptops are not always appreciated but consider the following points . . .Laptops/Notebooks are easy to store. It is possible to operate the business from a single room. In fact we know a guy who stores a number of them under his bed. He says he can store up to twenty laptops with hardly any loss of room space.Laptops/Notebooks are always available from liquidation merchants and other specialist trade sources at prices which allow good reseller profit margins. It is a cash-doubler business for those we know who are quietly operating this business from a home base.For a completely free list of notebook wholesalers and liquidation merchants go to http://www.liquidations-uk.net for Europe. In USA go to http://www.liquidations-uk.net/usa Laptops/Notebooks are easy to pack to sell by Mail Order. Take up to four under your arm to your local Post Office and using standard parcel rates and insurance the cost to fulfil orders will be a pittance compared to the profit potential.However, unless working from a cramped room, be professional and send the order by Courier Service, after all, the profit margin is HUGE enough to allow for a "Free Delivery Service".Recently sourced laptops/notebooks from a repo-liquidation reseller allowed for a mark-up ratio of 150 percent and it doesn't stretch the imagination to calculate how much could be made each week from just a couple of re-sales that allows you to double your investment on each transaction.There are of course warranties to be considered and how to deal with any faulty returns. Those were concerns I had myself in the beginning. However, I found an easy way to resolve those issues to everyone's satisfaction. It was so simple, just make a complete replacement and send the faulty one back to the supplier. Within the past year I have only needed to do that three times which equates to a very small percentage of total sales volume.Here's hoping you'll give it a try and if so I would love to get some feedback from you - please let me know what you think of the business anyway, your thoughts are always welcome.Feel free to reprint this article in its entirety in your ezine or on your site as long as you leave the author's copyright in place and the links in place, do not modify the content and include our resource box as listed below. About the author:Article by Harry S Richards. Founder of Beauforts PC Trading. Training others for business based upon his own successful methods: http://www.beauforts.bizHarry also edits a unique Trading MART at http://www.themartuk.com
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