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Soon after Mr. Ecker took the helm of the Metropolitan Life Insurance Company, Leroy A. Lincoln, at the age of 49, was made Vice President. He had come into the company in 1918, and in little more than a decade had demonstrated his capacity to handle a variety of complicated administrative problems.

He had a broad and intimate knowledge of the entire insurance business, having previously served as Counsel to the New York State Insurance Department. He brought to his duties not only a keen analytical mind but also a warm sympathy for the men in the field, and special enthusiasm for the social service program of the organization. When, in March 1936, Mr. Ecker became Chairman of the Board of Directors, Mr. Lincoln succeeded to the Presidency, continuing the policies of his predecessor in office.

Frederick H. Ecker became president of the company at a period which then looked to many like a “Golden Era.” All business was at a high peak, and the Metropolitan shared in the general prosperity. Toward the close of this period many people seriously believed that a new order of living had arrived in America and that prosperity, along with low cost life insurance, was to go on forever.

One measure of this buoyant state was the rise in prices of common stocks, particularly those dealt in on Exchanges. Under such promising conditions, it is not surprising that common stocks were seriously urged as suitable investments even for life insurance companies; and one or two companies not subject to the restrictions of the New York Law purchased sizable blocks of well selected common stocks for their portfolios.

It was at this juncture, in September 1929, that President Ecker, in an address before the National Association of Life Underwriters at Washington, analyzed the proposal that life insurance funds be put into common stocks, and took a firm position against such “investments” by the life insurance companies. There were some who challenged his position; but not long after Mr. Ecker’s address had been published and put into circulation there came, in October 1929, the first of the Stock Exchange crashes. His judgment as to the dangers of common stock investments for life insurance companies was vindicated almost overnight.

The full import of this disaster was little understood at the moment. It was not for weeks and months that the country came to understand that its entire economy had suffered a shock which could not be overcome for years. As the first overturns in the Stock Exchange deepened into a well defined national depression, the life insurance companies shared the difficulties of the times with other financial institutions.

Large numbers of people lost their savings on the Exchanges. Many banks closed their doors, foreclosures increased rapidly, and employment began to drop sharply. As a consequence, many people borrowed on their policies, whether it was individual health insurance or life insurance to obtain the cash which they could find through no other source. This situation was further complicated by moratoria on policy loans and surrenders enforced in a majority of the States-limitations which were not sought by the Metropolitan.

The company continued to make all payments where no restrictions existed, and met every obligation as soon as the curbs were lifted. During the decade from 1930 to 1939 the Metropolitan paid out well in excess of $5,000,000,000 to life insurance policies or beneficiaries. These payments saved from the ignominy of public relief many thousands of individuals who had set up their own protective plans through insurance during more prosperous years. Contemporary with the efforts of the Federal Government to afford relief to the destitute members of the population, they certainly lightened the public burden.

Sarah Martin is a freelance marketing writer specializing in the history of business, finance, individual health insurance, and life insurance. For more information on life insurance policies or for no medical exam life insurance, please visit http://www.equote.com.

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titleForex – The Thrill Ride/titlepFOREX is one of the latest crazes to sweep the planet./ppForex is one of the hottest and largest financial trading markets in the world today. The rise of the new E-economy caused online Forex trading website and firms to be able to offer trading accounts to almost anyone with a computer and an Internet connection. In our days everyone can trade currencies just like the worlds largest banks do./ppThe Foreign Exchange, also referred to as the Forex or FX market, is the practice of currency trading with over $2.5 trillion changing hands every single day./ppForex trading is where the currency of one nation is traded for that of another. If you have been abroad on holiday or business you have already done it. You exchanged your domestic currency for that of the currency of the country you were travelling to./ppThe Forex market is different though, by actively engaging in online trading using broker platforms you can buy and sell currencies for huge profits. This is because you trade with a leverage so that even a small amount of money can quickly become a huge amount if you make the right trade./ppUnlike the stock market which is ruled by those with inside knowledge, Forex gives everyone an equal footing, you can make good money even with very little experience./ppThe Forex goods are the currencies of various countries. You buy Euro, paying with US dollars, or you sell Japanese Yens for Canadian dollars etc. Thats all.thats how does one profit in Forex, buy cheap and sell for more! The profit is generated from the fluctuations in the currency exchange market./ppThere is not a central exchange for the Forex market, so these pairs and their crosses are traded over the telephone and online through a global network of banks,forex websites,brokers and currency traders./ppThe process is very simple and obvious,no expert knowledge of an industry is needed, that is the beauty of FOREX, thousands can be made whether you are decided to learn and experiance!/ppForex is a skill that takes time to learn !!!/ppForex can seem to be tough at the first instance to a new investor but once you have understood the process of the trading,then it is all about making the right decision and earning a handsome profit. with various fundamental and technical analysis tool available in the market,a careful investor can make huge profit by trading currencies. A small margin deposit can control a much larger total contract value. That Is what we call Leverage./ppLeverage gives the trader the ability to make extraordinary profits and at the same time keep risk capital to a minimum. some online Forex firms offer up to 200 to 1 leverage, which means that a $100 dollar margin deposit would enable a trader to buy or sell $20,000 worth of currencies./ppThe exciting thing about the Forex market, is those regular daily fluctuations,an example – if the exchange rate of a pair of currencies increased by 0.6% in the last hours, your profit will be 60% on your investment!(1:100) Such can happen in a few hours or even minutes! Moreover, you cannot lose more than your margin! You may profit unlimited amounts, but you never lose more than what you initially risked and invested./ppAn exciting advantages of Forex trading is the ability to generate profits whether a currency pair is up or down, in a rising and falling markets. Skilled Traders do make money in this field, however like any other career, success doesnt just happen overnight./ppMost Online Forex firms offer free Demo accounts to practice trading, along with breaking Forex news and charting services. These are very valuable resources for traders who would like to develope their trading skills with virtual money before opening a live trading account. a new trader should practice trading on a demo account and pretend the virtual money is your own real money.Do not open a live trading account until you are profitable trading on a demo account. It is important that you learn how to buy and sell the currency pairs, set stop losses, set profit limits, and understand how leveraged margin works when you trade./ppUnderstanding risk management is a very important reality when trading the Forex Markets. Losing trades will happen, and managing those losses are the key to your success./ppHappy Trading/ppZiki De Naim/ppA target=_new href=http://forexguest.com/Forex Trading Strategies/ABR Looking for info about Forex Trading? Find it all at : A target=_new href=http://forexguest.com/http://www.ForexGuest.com/ABR Read about Trading Times, Mini Forex Account, Forex Terms used in the Forex Market, How to Choose Forex Brokers and Firms? Forex online News, ForexGuest – Store, Subscribe and read ForexGuest-Members newsletters about Top Rated Online Affiliate Opportunities, and Forex Trading Strategies Tips./pbrbr

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Getting business financing is tough when the economy is doing well and almost impossible when the economy is doing badly. There is a reason for this, lending money to a business is considered risky, especially for financial institutions. This is why most institutions will ask for audited financial statements and will insist that your business must have good collateral. What qualifies as good collateral? Usually real estate, machinery and accounts receivable in some combination. Furthermore, institutions also want to see a multiyear track record in which your company shows substantial growth.

But – what if you own a startup? Don’t have hard collateral? Or, what if your business is in a turnaround situation? Usually, you’ll be out of luck. Fortunately, there are other options.

There are alternate business financing solutions that can work well in many instances. For example, let’s say that your commercial clients take 30 to 60 days to pay their invoices. This can create a challenge for most businesses. If you can’t get a conventional business loan, a good alternative is to use factoring. Factoring, which has been gaining traction recently, provides an advance against your slow paying invoices. It provides the working capital you need to pay business expenses and eliminates the timing challenges of waiting for payment.

Here is how it works. Let’s say that you sell a product (or service) and then invoice your client expecting payment in about 45 days. A factoring company can advance about 80% of what is due to you within days of invoicing. You get the remaining 20%, less a service fee, once your client pays the invoice in full.

Stated differently, you get about 80% soon after invoicing, and the remaining 20% (less the fee) once your client actually pays.

For most businesses, getting an 80% advance spells the difference between being able to run the company and going out of business. It provides the liquidity to pay employees and suppliers in a timely way. For many, it allows them to take new clients without worrying about their payment terms.

Factoring companies consider your invoices from good credit worthy clients to be excellent collateral. This enables them to advance money against them. Now, this does not mean this is the only criteria they will look at. Most factoring companies will want to make sure that your company is free of judgments, lawsuits and liens.

One critical advantage of invoice factoring is that it works very well for startups. Most factoring companies are happy to work with clients whose biggest asset is a roaster of good paying clients.

About Commercial Capital

Looking for factoring financing? Commercial Capital can provide you with a competitive factoring quote. To learn more about our invoice factoring program, please call (877) 300 3258

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The US dollar is undoubtedly the prime mover of the world’s financial systems. It still remains to be the main currency reserve despite claims of an emerging euro domination. Because of its pivotal role in the global economy, the dollar’s value is a matter of concern the world over. Most countries rein in the value of their currencies through their dollar reserves; foreign central banks hold US Treasury bonds; and a majority of the oil cartel’s holdings are still in dollars.

In forex markets, the dollar is the most traded currency, figuring in more than 80 percent of all transactions. The euro trails behind and is continually expanding in terms of international reach but forex trading is still primarily centered on the dollar.

The United States emerged as a formidable financial player in the aftermath of World War II, when most of Europe was in shambles. In the 1940s, the Bretton Woods system was established, which obliged each member country to maintain the exchange rate of its currency within a fixed range in terms of gold. This worked well for the US since it had the largest gold reserves at the time. The US poured money into the reconstruction of Europe and also opened liberal trade relations with a lot of countries, thus effectively increasing the stock of dollars in foreign central banks.

Things started going downhill for the US during the 1970s as its gold reserves depleted largely because of the Vietnam War. Central banks, fearing that the American currency was facing an imminent devaluation, started clamoring for gold in exchange for the dollars they were holding. Since the country had insufficient gold reserves, then President Nixon responded by abandoning the Bretton Woods system altogether. This led the currencies to shift to a floating status.

From a legal tender with a measurable equivalent in gold, the dollar became what some economists call a political currency. Its continued use in international trade stemmed from the continued economic, political, and military domination of the United States. Since most financial transactions and commodities, particularly oil, were traded in dollars, the US currency enjoyed a strong demand despite the country’s burgeoning trade deficit.

In 2006, the trade deficit reached a record of more than $800 billion. This is more than enough to put any other currency on a disastrous collapse and yet the dollar stays afloat, thanks to the US Treasury bonds and other government assets held by most foreign central banks. In essence, the dollar is supported by foreign borrowing.

However, some economists contend that the deficit is actually helpful in maintaining liquidity in world trade. An $800 billion US deficit means that there is an extra $800 billion circulating in the global economy. If the US were to take drastic steps in balancing its current account, then it would effectively derail the financial movement of international commerce.

The dollar currently suffers from depreciation as other major currencies such as the euro and the yen are getting stronger. Apart from the obvious effects of the trade deficit, this was also brought about by the interest rates cuts of the Federal Reserve, a strategic move to jump-start an economy that threatens to plunge into recession. While this makes foreign importers and tourists happy, the European Union and other export players are bitterly complaining since the depreciating dollar makes their goods more expensive and edges them out of the trade competition.

For how long the United States can keep up with the dollar’s weakening value and still convince its creditors to hold on to their T-bonds and cheques is a matter that remains to be seen. In reality though, it will take a long while and an awful lot of economic upheavals before the dollar is dislodged from its current position as the world’s most important currency.

Kristien Wilkinson is an online writer and contributor to http://www.forexmarkets.com

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The current financial crisis

The public have a common understanding that the subprime mortgage crisis has leaded to a far more serious consequence, so called ‘the financial crisis’ recently. To be exact, It has been going on for seven months. But how will that be happened? This is the question. The subprime load crisis is relatively simple to understand. People bought homes they couldn’t afford, and now they are falling behind on their home loans. This has caused the loss of related financial institutions.

However, the amount of loss is not the major cause of the financial crisis. US government has already announced to take over Fannie Mae, Freddie Mac and AIG, and have injected the capital over that amount into the market. Besides, the majority of homeowners are still doing just fine. The conventional mortgage market is still healthy. So, how is it that a mess concentrated in one part of the mortgage business: the subprime loans, has frozen up the whole credit markets in United States? How would that crisis caused such a big impact to the stock market, causing the collapse of Bear Sterns, Lehman brothers, etc, and left the economy on the brink of the worst recession in a generation and forced the Federal Reserve to take its boldest action since the Depression in 1923?
 
In order to have a big picture of this incident, I think this could be explained in this way. First of all, behind the whole financial crisis, there are actually 3 major components: the subprime mortgage, Leverage (or gearing), and the Credit Default Swap(CDS). We have mentioned about subprime mortgage before. So, what is leverage? In the finance industry, leverage is a common way to use in such a way to magnify the outcome of the investments. This can be done by various financial instruments such as options, futures, margin or borrowed capital, to increase the potential return of an investment. 
 
At present, many investment banks use leverage to operate more then 20 times of their capital. For example, if bank A have an asset of 5 billion, then 30 times of leverage means that bank A can operate 150 billions of money, in which most are borrowed. It is obvious, if there is 5% of profit in the investment, then bank A has a profit of 7.5 billion. However, on the other hand, if there is 5% loss in the investment, then bank A loss all it’s 5 billion of asset, and still owe the lender 2.5 billion.
 
The third component is CDS. What is CDS? As explained above, the operation of leverage is very risky. So some bankers think of a way to take insurance on these leverage. This insurance is called CDS. It is a specific kind of agreement which allows the transfer of third party credit risk from one party to the other. One party in the swap is a lender and faces credit risk from a third party, and the counterparty in the credit default swap agrees to insure this risk in exchange of regular periodic payments. For example, Peter borrows $100 from John. John wants to get insurance on this $100 debt in case Peter was unable to return the money. The John goes to Jane and asked for Jane to insurance that debt. Jane agrees to do so if John is willing to pay her an insurance fee of $5 per year. That is exactly the most simplified scenario of CDS.
 
Now, apply that in the world of banks. Recall the example of ‘bank A’. Bank A operates a leverage of 30 times. To reduce the risk, it goes to bank B and asked for bank B to do CDS insurance. After analysis the market data, bank B knows that the breach of contract case is less than 1%. Therefore, bank B is willing to take that insurance to earn the insurance fee. However, this is not the end of the story. Although bank B agree to accept the insurance, it can not have the insurance fee immediately. At the same time, some other banks such as bank C, bank D, etc. are interested to these CDS contracts. So bank B is willing to re-sell them to other banks to have the cash immediately. This is the scenario. The CDS contracts being sell and re-sell continuously among different financial sectors. In the mean time,
the market value of the CDS has reached 62 trillion.
 
However, you may see that, all the banks A, B, C, etc are making money. So, where is the money comes from?  The money comes from the revenue generated by the subprime mortgage business. So why the honey moon period can continue in the previous few years? It is because the real estate prices keep rising in the previous few years. In that period, home owners and buy and re-sell the real estates easily, who can earn good money at the same time. It just likes snowball or bubble. The market keeps rocking until 2006. When the downturns came, the prices of the real estates dropped. People who are lack of financial ability was unable to pay the high interests of those subprime loans. In that case, the subprime mortgage market started collapsing, which in turn affecting the CDS market. Banks and financial institutions who are involved in those products is unavoidably being affected. In fact, nearly all I-banks and most of the commercial banks are involved in this storm, or more appropriates, the tsunami. 

George C. (http://www.finance-database.com)

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The latest financial news has everyone preoccupied with the negatives of the declining financial market. I was reading an article in the Baltimore Sun newspaper the other day about how the news of financial woes has impacted individual consumer confidence and the result is people are so worried that they are doing nothing with their goals, dreams or plans for the future. They are putting them on hold until there is a clear picture of things getting better. Is this you?

I thought that this was important to discuss this week because in every adversity is an opportunity of equal or greater value. You see, even in declining markets, wealth is created and opportunities exist. Think about:

the investors who are now able to acquire more stock affordably and hold it until the value restores the family that decides to purchase their dream home now and get all the options and closing costs included the mother who finally decides to start her own business because her family needs extra income. Remember that we create our own realities.

What I have done in this financial market is invest more in myself by reading more, learning from the coaches in my life, and taking steps to ensure that I learn ways to grow my business during these difficult economic times. People ask me all the time how is the coaching business? I have learned that people want coaching even more now then ever to create new personal options. What if instead I sang the song that because of the economy no one can afford coaching. The truth is you can’t afford not to have a coach help you create the life that you want.

My challenge to you this week is to to look at your life and write down how this temporary financial downshift can create opportunity for you in your life, with your family, work or business. You might answer the following ways:

This has taught my family the benefit of simplicity and how abundant we really are. You decided you don’t want to work for someone else. The uncertainty of working for others was confirmed during this market shift and as a result you will explore entrepreneurship. You may have learned that you are a much better budgeter than you originally thought. You may have learned that you have been living above your financial means. Whatever your lesson(s), I encourage you to breathe it in. Learn from your life.

This week only, I am offering one free hour of coaching for the first ten individuals to contact me at mia_redrick@findingdefinitions.com In the subject line please type Free Coaching Session.

Live fully,

Mia

Challenge! – Take small steps toward your goals. To get you started creating your own new work/life plan , call me at 1-866-226-2607(toll-free) to claim your free access to my E-book “The Moms Handbook: A guide to giving your life a complete makeover” with self-assessment ($25.00 value).

From Mia Redrick- Author, Time for mom-Me:5 Essential Strategies for A Mother’s Self-Care and Finding Definitions, the premier self-care community for mothers http://www.findingdefinitions.com

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Getting business financing is tough when the economy is doing well and almost impossible when the economy is doing badly. There is a reason for this, lending money to a business is considered risky, especially for financial institutions. This is why most institutions will ask for audited financial statements and will insist that your business must have good collateral. What qualifies as good collateral? Usually real estate, machinery and accounts receivable in some combination. Furthermore, institutions also want to see a multiyear track record in which your company shows substantial growth.

But – what if you own a startup? Don’t have hard collateral? Or, what if your business is in a turnaround situation? Usually, you’ll be out of luck. Fortunately, there are other options.

There are alternate business financing solutions that can work well in many instances. For example, let’s say that your commercial clients take 30 to 60 days to pay their invoices. This can create a challenge for most businesses. If you can’t get a conventional business loan, a good alternative is to use factoring. Factoring, which has been gaining traction recently, provides an advance against your slow paying invoices. It provides the working capital you need to pay business expenses and eliminates the timing challenges of waiting for payment.

Here is how it works. Let’s say that you sell a product (or service) and then invoice your client expecting payment in about 45 days. A factoring company can advance about 80% of what is due to you within days of invoicing. You get the remaining 20%, less a service fee, once your client pays the invoice in full.

Stated differently, you get about 80% soon after invoicing, and the remaining 20% (less the fee) once your client actually pays.

For most businesses, getting an 80% advance spells the difference between being able to run the company and going out of business. It provides the liquidity to pay employees and suppliers in a timely way. For many, it allows them to take new clients without worrying about their payment terms.

Factoring companies consider your invoices from good credit worthy clients to be excellent collateral. This enables them to advance money against them. Now, this does not mean this is the only criteria they will look at. Most factoring companies will want to make sure that your company is free of judgments, lawsuits and liens.

One critical advantage of invoice factoring is that it works very well for startups. Most factoring companies are happy to work with clients whose biggest asset is a roaster of good paying clients.

About Commercial Capital

Looking for factoring financing? Commercial Capital can provide you with a competitive factoring quote. To learn more about our invoice factoring program, please call (877) 300 3258

Tags: advantage, Ally, amp, Ast, Aud, bet, business, business financing, business loan, capital, challenges, cia, Collateral, commercial, credit, Diffe, Economy, Employ, Employe, Expenses, factoring companies, factoring company, finance, financial, financial institutions, financial statements, financing, Fre, going out of business, heir, Instances, institutions, Jud, judgment, judgments, lending, lending money, Liquidity, loan, lows, Mai, money, oic, pita, Real Estate, reason, rent, risk, sit, Spell, Suits, t pay, Target, Terms, ups, work, Worry, Yea

Trading currency online is happening literally 24 hours a day, with money exchanging hands almost constantly, to the tune of roughly $2 trillion a day. In comparison to the $20 billion average day of the stock market, the Forex market is without question much larger.

The biggest difference is that on the Forex market there isn’t any tangible material that is being bought or sold. There are also no certificates being issued to show how much an individual owns of another country’s money.

What is Forex Trading

In the Forex market all the trades are performed electronically and the currencies are traded in pairs, such as the US dollar being paired with the UK’s Euro. A trade primarily consists of trading a specific amount of USD/EURO for currency pairs from two other countries contained within one transaction.

There are also no brokerage fees involved for buying and selling on the Forex market with broker earning their money on the difference between the bid/sell/buy price (ie – the spread) of the currency at the time the trade is completed.

On the Forex market, a buyer of any particular currency pair is basically indicating their confidence in the economy of that particular country. If the economy improves after a buy is completed, and the value of their currency also improves corresponding to the value of other countries, the investment of the buyer increases in value as well. On the other side of that coin, if that particular economy falls, the value of the currency will also decrease on the open market.

Precise Projections Can Improve Profit Position

One of the primary keys to success in the fourth market is being capable of projecting what the economy in any one particular country is going to do in the short term. The majority of individuals trading on the Forex market are not in it for the long haul like they might be in the stock market. Many people use little indicators that predict the country’s economy will get better or get worse and will execute their trades accordingly.

Only until recent times the Forex market was open only to just a select few that very often made trades worth many millions of dollars in multiple currencies. With the advent of the internet and online brokers average people have been given the opportunity with only a few hundred dollars to get in on the same type of action as the big spenders. Nevertheless, prior to anybody simply jumping in online and opening an account, they should be well-versed in the economies of the numerous different countries.

To become familiarized with the Forex market can seem somewhat intimidating at first, but in actuality so can the stock market to a beginner. It takes time and practice with play money and experience prior to a person getting involved in becoming comfortable with getting their own cash on a country’s economic future.

Listen to Korbin Newlyn as he shares his insights as an expert author and an avid writer in the field of finance. If you would like to learn more go to Forex advice and at Learn Forex Trading tips.

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These days the rising costs for everything from housing, fuel, and food have become a fact of life and many of us are considering taking a second job in order to make ends meet. The costs for gasoline and diesel have reached new highs lately and this has driven up the price for just about everything else. Higher fuel costs mean higher transportation costs and these costs are passed on to you each time you make a purchase.

Many families today are feeling this pinch and are looking for ways to effectively deal with rising prices. Rising unemployment is an added concern. This can be a particularly devastating to those workers laid off especially if you are the primary bread winner in your family. With over 463,000 layoffs in the US alone so far this year, an ever increasing number of us would be glad to have any job at all.

The double whammy of rising costs and a sluggish economy has put many of us in a financial bind.

Getting a second job may be an option for some to get out of their personal financial tight spot but not everyone is in a position to take on a second job. Single parents are especially hard hit because the cost of providing care for their children while they are at work many times cuts too deeply into their paycheck to make taking a second job worthwhile.

Some would say that you could always start your own business. This may be true but starting a business takes a great deal of time and usually a considerable amount of money and there is still no guarantee that the business will survive let alone become profitable. Besides, you need money right now, not three of four years from now or whenever your new business happens to become profitable.

Several options are commonly considered. One such option is to seek a pay raise at your existing job. This option can work if you have positioned yourself at your current workplace as having earned a raise and your company is in a financial position to grant your request. Not all companies have the financial resources to offer pay raises due to the tightening economy in general. As a matter of fact, an increasing number of companies are actually reducing their workforces and laying off workers.

Another option commonly pursued is to take a second job in hopes of gaining ground in the face of rising prices. This option can work if you have the time and energy to follow through with this plan. Naturally, you would need to locate an employer able to offer you gainful employment. In our presently tight economy the pool of such employers looking to hire part time workers is rapidly shrinking.

Taking a second job for a great many workers simply is not possible due to the limitations of time, personal energy, or family obligations. Caring for younger children or older family members takes time and paying for these services many times costs as much or more than what can be earned through a second job.

What is an honest person to do?

Answer: Shift your thinking.

Consider this: Right now, if you have a job chances are you are trading your time and energy for your paycheck. In other words you are trading time for money. In most cases the more hours you work – the more money you have coming in.

But there is a rub.

You only have a fixed number of hours per day to work. You are limited as to the maximum number of hours you have available to trade for money. Especially if you currently working full time.

What I suggest is a shift in the concept of trading time for money.

In other words, what you need is a method to increase your income that does not require you to punch a clock and trade your time for money.

Sound impossible?…

No not at all…

Introducing the world of Automated Forex Trading. Automated what?…

Forex… Forex is short for Foreign Exchange. The buying and selling of international currencies. Forex is no longer just for wealthy capitalists and institutional traders. The days of treating Forex as the exclusive domain of the super rich investor are long gone. Nowadays, anyone with a few hundred dollars and access to a computer can trade Forex.

The real beauty of Forex is that it is the ideal recession proof opportunity.

Let me explain…

Your ability to make money with Forex is independent of the condition of your native country’s economy. The reason for this is simple. In Forex, currencies are paired together. If one of the paired currencies goes up in value then naturally the value of opposing pair must go down.

Picture a child’s see saw for a moment. When one end of the see saw goes up – the other end of the see saw goes down right? Basically this is what happens in the Forex market.

There is a natural volatility to the Forex market. This volatility coupled with the see saw effect gives rise to the situation where there is always a Bull Market in Forex. What this means to you is that potentially profitable trading opportunities are plentiful. In other words, you can do quite well in Forex trading in spite of the fact that the economy of your native country may be sluggish or in a down turn.

This is great news for thousands of people who would not otherwise have a method for improving their financial lives.

Forex Traders participate in literally the world’s largest market. Current estimates are that between 1.5 and 3 Trillion Dollars a day are traded on the Forex. Let me repeat, that’s a daily trading volume in the Trillion’s. That’s Trillions with a “T”.

Isn’t Trading Forex complicated and difficult?…

If you are trading Forex manually then you will likely need very good technical analysis ability as well as a sound understanding of the economic forces that drive world currency markets. This takes skill and time to develop.

On the other hand, what we’re talking about here is using a software program known as an “Expert Advisor” to evaluate trading opportunities and place your trades automatically.

Here’s what I’m talking about…

Thanks to recent advancements in computer and trading technology, we now have available what are known as “expert advisors” (EA’s for short). In Forex, an expert advisor is a software program that runs inside your trading platform. A well designed EA looks for a predetermined set of market conditions. When those market conditions are met, the EA places trades Automatically. Once the trade is placed, the software then waits for a selected profit point to be reached then closes the trade. This process is repeated over and over endlessly unless, of course, you tell the software to stop.

What this means to you is that you can basically set up the software on your computer and let the software trade Forex for you while you do other things. Go off to work, spend time with the family, or just plain goof off.

This is how you can break out of the confines of trading time for money – Trade Forex for Money!

A note of caution: Not all EA’s are the same. The ease of use and effectiveness of EA’s varies widely and you need to demo trade and/or back test each EA you are considering using before you go live with your own money.

Disclaimer – This article is for educational purposes only. It is not offered as investment advice. The reader assumes all responsibility for any and all profits or losses incurred by his or her trading activities.

David R. Jaymes is a Writer and Forex Trader. He graduated from the University of Maryland, USA with a degree in Agricultural and International Economics. He has prepared a Special Free Report that shows you how easy it is for you to use the exact techniques used by today’s most successful traders. To get your Free Report, head on over to: http://www.4x-rox.com

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For those unfamiliar with the term, FOREX (FOReign EXchange market), refers to an international exchange market where currencies are bought and sold. The Foreign Exchange Market that we see today began in the 1970’s, when free exchange rates and floating currencies were introduced. In such an environment only participants in the market determine the price of one currency against another, based upon supply and demand for that currency.

FOREX is a somewhat unique market for a number of reasons. Firstly, it is one of the few markets in which it can be said with very few qualifications that it is free of external controls and that it cannot be manipulated. It is also the largest liquid financial market, with trade reaching between 1 and 1.5 trillion US dollars a day. With this much money moving this fast, it is clear why a single investor would find it near impossible to significantly affect the price of a major currency. Furthermore, the liquidity of the market means that unlike some rarely traded stock, traders are able to open and close positions within a few seconds as there are always willing buyers and sellers.

Another somewhat unique characteristic of the FOREX money market is the variance of its participants. Investors find a number of reasons for entering the market, some as longer term hedge investors, while others utilize massive credit lines to seek large short term gains. Interestingly, unlike blue-chip stocks, which are usually most attractive only to the long term investor, the combination of rather constant but small daily fluctuations in currency prices, create an environment which attracts investors with a broad range of strategies.

How FOREX Works

Transactions in foreign currencies are not centralized on an exchange, unlike say the NYSE, and thus take place all over the world via telecommunications. Trade is open 24 hours a day from Sunday afternoon until Friday afternoon (00:00 GMT on Monday to 10:00 pm GMT on Friday). In almost every time zone around the world, there are dealers who will quote all major currencies. After deciding what currency the investor would like to purchase, he or she does so via one of these dealers (some of which can be found online). It is quite common practice for investors to speculate on currency prices by getting a credit line (which are available to those with capital as small as $500), and vastly increase their potential gains and losses. This is called marginal trading.

Marginal Trading

Marginal trading is simply the term used for trading with borrowed capital. It is appealing because of the fact that in FOREX investments can be made without a real money supply. This allows investors to invest much more money with fewer money transfer costs, and open bigger positions with a much smaller amount of actual capital. Thus, one can conduct relatively large transactions, very quickly and cheaply, with a small amount of initial capital. Marginal trading in an exchange market is quantified in lots. The term “lot” refers to approximately $100,000, an amount which can be obtained by putting up as little as 0.5% or $500.

EXAMPLE: You believe that signals in the market are indicating that the British Pound will go up against the US Dollar. You open 1 lot for buying the Pound with a 1% margin at the price of 1.49889 and wait for the exchange rate to climb. At some point in the future, your predictions come true and you decide to sell. You close the position at 1.5050 and earn 61 pips or about $405. Thus, on an initial capital investment of $1,000, you have made over 40% in profits. (Just as an example of how exchange rates change in the course of a day, an average daily change of the Euro (in Dollars) is about 70 to 100 pips.)

When you decide to close a position, the deposit sum that you originally made is returned to you and a calculation of your profits or losses is done. This profit or loss is then credited to your account.

Investment Strategies: Technical Analysis and Fundamental Analysis

The two fundamental strategies in investing in FOREX are Technical Analysis or Fundamental Analysis. Most small and medium sized investors in financial markets use Technical Analysis. This technique stems from the assumption that all information about the market and a particular currency’s future fluctuations is found in the price chain. That is to say, that all factors which have an effect on the price have already been considered by the market and are thus reflected in the price. Essentially then, what this type of investor does is base his/her investments upon three fundamental suppositions. These are: that the movement of the market considers all factors, that the movement of prices is purposeful and directly tied to these events, and that history repeats itself. Someone utilizing technical analysis looks at the highest and lowest prices of a currency, the prices of opening and closing, and the volume of transactions. This investor does not try to outsmart the market, or even predict major long term trends, but simply looks at what has happened to that currency in the recent past, and predicts that the small fluctuations will generally continue just as they have before.

A Fundamental Analysis is one which analyzes the current situations in the country of the currency, including such things as its economy, its political situation, and other related rumors. By the numbers, a country’s economy depends on a number of quantifiable measurements such as its Central Bank’s interest rate, the national unemployment level, tax policy and the rate of inflation. An investor can also anticipate that less quantifiable occurrences, such as political unrest or transition will also have an effect on the market. Before basing all predictions on the factors alone, however, it is important to remember that investors must also keep in mind the expectations and anticipations of market participants. For just as in any stock market, the value of a currency is also based in large part on perceptions of and anticipations about that currency, not solely on its reality.

Make Money with Currency Trading on FOREX

FOREX investing is one of the most potentially rewarding types of investments available. While certainly the risk is great, the ability to conduct marginal trading on FOREX means that potential profits are enormous relative to initial capital investments. Another benefit of FOREX is that its size prevents almost all attempts by others to influence the market for their own gain. So that when investing in foreign currency markets one can feel quite confident that the investment he or she is making has the same opportunity for profit as other investors throughout the world. While investing in FOREX short term requires a certain degree of diligence, investors who utilize a technical analysis can feel relatively confident that their own ability to read the daily fluctuations of the currency market are sufficiently adequate to give them the knowledge necessary to make informed investments.

Rich McIver is a contributing writer for The Forex Blog: Currency Trading News ( http://www.forexblog.org ).

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