A Guide to FOREX Trading

The foreign exchange (FOREX) market is the purchase or sale of a currency against sale or purchase of another. The object in Forex is to exchange one currency for another in the expectation that the price will change so that the currency you bought will increase in value compared to the one you sold. Through Forex education and training it is possible to speculate the direction of the market and receive a good return on your investment.


The major participants in the FOREX include commercial and investment banks and central banks. Other participants include corporations, hedge funds, and millions of speculation traders like you. Some of the top banks in the world such as Bank of American, Credit Suisse, and Morgan Stanley are major players when it comes to the FOREX. In order to make money within this realm, you will be competing against all of the major banks as well as individual traders.
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When beginning in the FOREX, it's important to select a reputable broker. After all, the broker is going to be the one paying you when it's time to cash out. A broker acts as a middle man between you and the FOREX. When you place a trade in the FOREX, your position is filled by the broker and the broker sends the order off to the banks. When it's time to be paid, your money is with the broker and they need to be able to cover your positions in the market. Most brokers offer a 3 to 5 pip spread on all the major currencies pairs, such as the ERU/USD, GBP/USD and the USD/JPY. A 3 to 5 pip spread basically means that the FOREX must move 3 to 5 pips before your trade is in profit. One pip can be worth any amount, depending on how much money you're willing to risk per trade.
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There are two types of traders, fundamentalist and technical traders. Fundamentalist study the cause of market movement, whereas technicians study the effect. Most traders identify themselves as both a technician and fundamentalist. Most fundamentalist will have knowledge of charts, indicators and chart analysis. Similarly most technicians are aware of the fundamentals. However, the problem is that the charts and fundamentals are often in conflict one another. It's usually a wise decision to have a bit of training in both fundamentals and technical analysis.
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One of the most important factors in the FOREX is learning to manage your money. Traders will experience losses in the FOREX; therefore it is essential that a trader utilizes proper money management. In many cases money management is a simple concept, yet to practice money management consistently is very challenging. Generally speaking money management is knowing when to cut your losses. For each trade, a trader should be looking to make three times the amount they plan to lose. This way a trader only has to be right 33% of the time in order to be in profit.
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Tim Rohrer is an established writer and FOREX trader. To learn more about FOREX trading, visit http://www.forex-investing.us

FOREX Trading With Managed Accounts

FOREX is seen in more and more portfolioss since the currency exchange realm has opened up to the small investor. However, working 9 to 5 doesn't always leave room to trade the market on a consistent basis. Aspiring traders who still work day jobs are looking for ways to enter into the foreign exchange market without having to invest hours in front of the computer. Many brokers have found this as a great opportunity to offer automated systems and managed accounts to those looking for a more passive income.

Typically the minimum investment for a Managed FOREX account ranges anywhere from $5,000 to $10,000 leaving the very small investors out of the loop. Managed accounts can either earn money or lose money, there are no guarantee's that opening a managed account will be a profitable venture.
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A modest managed account whether it is traded by another person or an automated robot can earn up to 20% per month or more depending on how good the system is. There have been stories of managed accounts earning 20 times the amount they started with in a year's time. However, finding an automated system that is consistently profitable is a difficult challenge and most accounts are on the slower side of about 5% to 10% per month.
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Managed accounts may be a good way to leap into the FOREX while receiving professional training and learning how to trade for yourself. Ultimately, a good trader fine tunes their own trading system and learns how the market reacts to specific news and patterns.

Searching for a good managed FOREX account is not an easy task. Some trading systems take too many trades causing the trader to margin out too soon or give poor signals all together. Be sure that a trading system is able to back up its data with proven results and back tests their system in real-time.
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Choosing an automated trading system with the highest monthly returns isn't always the best choice. Depending on the broker that is managing your account and their ability to pay out is what counts the most. There are hundreds of FOREX brokers and not every broker is able to fill positions on trades. Brokers come and go everyday, make sure the broker you chose is established, registered and has credibility within the market.
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Educating oneself on the FOREX market can help enhances chances of making money in the FOREX. After all 95% of FOREX traders go home broke everyday. Use a managed account while learning how to trade. Once the fundamentals of the market are established begin executing small trades in a demo account to obtain a better understating of the FOREX beast.
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Tim Rohrer is an established writer and trader. To learn more about trading Forex, visit http://www.forex-investing.us

How To Follow Your Trading Plan To Ensure Success

trading there is really only one certainty - some of your trades will lose money. Losing money is never fun, but it is a major part of trading. How you deal with those loses separates the successful traders from the unsuccessful ones. The secret of success in trading is to be able to ignore individual trades, some will win and some will lose. After a series of losing trades we must still be able to pull the trigger and place the next trade, you never know when the next winner will come. Of course, we assume that our method is sound to begin with and this is where we need confidence. It is essential to believe in your own system and this confidence comes from doing our own testing.


Most traders will lose confidence in a method with as little as 3 losing trades in a row. In an extreme case you might have a system that wins only 25% of the time but the average winner is 5 times larger than the average loser. If you have 3 losing trades in a row and give up then you have lost 3 points. The confident trader will know that 3 losers in a row is not uncommon (0.75*0.75*0.75 = 42% of the time!) for this system and will continue to trade - the next trade is the winner for +5, giving +2 overall. The losing trader might now see that the system has become profitable again and jump on board - just ready for the next losing 3 trades in a row. The point is, with any trading system you cannot pick and choose which trades to take - you must take them all.
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You must know your system before you begin to trade - check out our equity curve simulator.

Tim runs Online Futures Trading, a website that provides information and resources for traders. Tim also provides a free day trading system.

Benefits Of Currency Trading Training

Currency trading or foreign exchange has grown to be the biggest financial market in existence today. People have seen the potential for profit in currency trading and have shown increased interest in joining the foreign exchange bandwagon.

However, most experts would agree that the currency exchange market is not really the place for an inexperienced person to get experience. One could really make a killing on the foreign currency exchange market. However, a beginners financial life could also be killed on the same market.

That's why many currency trading training programs are available out there: people really can't just jump into currency trading and expect to make a whole lot of money at once.

The erratic nature of the market just simply does not allow people to do that. There are too many factors to consider in making decisions in the currency market.
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In order to make those decisions properly; one needs to be properly equipped. A good currency trading training can help you with that.

But how do you tell which is a good currency trading training?

Well, there are a few indications of what a good currency trading training ought to be like and you should definitely expect these things.
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*The basics- don't trust a currency trading training program which jumps to the complexities and the advanced problems without explaining to you the basics of the game.

Remember that all of the advanced and complex decisions are based on the premises offered by the basics. Good currency training should equip you with the basics so that even if you forget the complex parts of currency trading, you'll be able to figure them out on your own.
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The basics of currency trading also give you the rationalization for the complex decisions. This leaves you with a protocol but without any flexibility.

This kind of currency trading training will leave you with protocols, not reactions. Let's say you encounter a case which you havn't studied, how will you react? Would you just get down on your knees and pray that you don't lose all of your money?
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2. Complexities- a good currency trading training will not, of course, just stop with teaching you the basics of the game. Although you may be able to deal with the basic issues and, in time, figure out how to handle the complex matters of currency trading, a good currency trading training will not stop at just that.

A good currency trading training will equip you to handle the complex issues. With good currency trading training you can become a master of handling all types of decisions regarding your money in the currency trading game.
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3. Connections and how to get them- a currency trading training program will not only equip you with the knowledge on how to make it in the world of foreign exchange. It will give you the tools with which to accomplish that gargantuan task.
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This means a good currency trading training program will help you make connections with people who can help you succeed in the currency trading game.

Remember that, in this world, who you know often counts more than what you know.

But remember that above all, a good currency trading training program should equip you with the confidence to lay your money on the line for a gut feeling. For that is what foreign exchange is all about.

Chet Holcomb of Currency Exchange Trading is an authority in Forex currency trading the the most attractive and profitable internet income opportunity.

Futures Trading Software

Futures trading software plays an important role in the economics of speculation. Speculation brings about a gradual adjustment of prices to the contingencies foreseen by the speculator. If a speculator foresees that the market situation after six months will warrant a rise in prices, he begins to make purchases with the objective of selling the commodity at a profit. The price begins to rise gradually, as more and more of the commodity is purchased by the speculators.

It follows from the above that speculation steadies the trend of prices and restricts the movement of prices within a narrow range. The peaks and valleys of price fluctuations are made considerably smoother by the activities of speculators who buy in anticipation of a rise in prices and sell in expectation of a decline therein. Speculators usually take these decisions with the help of futures trading software.
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Speculation welds various markets together by keeping prices between different markets at a normal parity. This is achieved through specialized speculative operations called arbitrage operations. When the price of a commodity or a security in one market is higher than that prevailing in another market, the speculators, with the help of futures trading software, will at once take the opportunity to make a profit. They will naturally make their purchases in the market at a lower price, to sell it at a profit in a market where the same thing fetches a higher price. In this way, speculation acts as an equalizer, or leveler of prices between various markets.
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In spite of the well-recognized benefits of speculation outlined above, such activity comes under fire quite frequently. The main theme of attack against speculation generally is that it is an evil practice, like gambling. In theory, it is assumed that the speculators speculate only if they possess the necessary skill, foresight, intelligence and finance to do so. In practice, however, all sorts of people speculate on exchanges. Many of them proceed recklessly and without adequate finances, with the result that they come to grief and may lose more than they can afford.
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Futures Trading provides detailed information on Futures Trading, Online Futures Tradings, Futures Trading Software, Commodity Futures Tradings and more. Futures Trading is affiliated with Stock Day Trading.

Stock Trading Software

Let's not underestimate our capabilities in making an intelligent stock-related decision. But sometimes, unbiased advice offered by good stock trading software can prove to be highly useful, especially because it is devoid of emotions—hence, the advice is never out of love or hate for a particular stock. All it does is offer a dependable comparison of stocks and suggest the ones to buy or sell. Stock trading software is a basic requirement for a short-term investor.

Today, there are many varieties of stock trading software available in the market that provide us with various basic functions like real-time stock quotes, thereby constituting a stock-trading software package. However, good stock trading software need not be complex. Choosing the wrong stocks is attributed to the absence of self-discipline. Hence, a system that follows the trend and is complete and self-disciplined in itself, is the best tool.
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Some basic features offered by good stock trading software include determining price direction by providing the opening price in market, and helping us to incur profit by providing telltale signs indicating a breakout. Also, it helps in finding out the average cost of security with the help of moving average monitoring, alerts such as trigger motion helping us to reach specified price targets, and finally, providing us with pattern identification.
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When choosing stock trading software, take advantage of any free-trial options to help choose the right software for you. The price of good stock trading software can start from $300. The service offered by stock trading software is commendable, but at the end of the day, knowledge, rather than emotion, should guide one's stock-buying choices.
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Trading Software provides detailed information on Trading Software, Forex Trading Software, Stock Trading Software, Option Trading Software and more. Trading Software is affiliated with Health Insurance Software.

Options Trading Software

Options trading software teaches you all aspects of the options trading arena. By using this software, you will learn how to use simple and advanced strategies for consistent earning, portfolio protection (hedging) and speculative income. You will learn how to find, verify and trade intermediate and advanced strategies.

The need for a proper understanding of the structure and working of the securities market can hardly be over-emphasized for an investor. The term securities market is a comprehensive one and refers to the buyers and sellers of securities, as also the structure comprising all those agencies and institutions which help in the sale and resale of company securities. Options trading software plays a pivotal role in this regard. It also helps the investor in selecting the securities in which he would like to invest his money. The client will, then, place an order with the broker. The order is usually placed by Internet or on the telephone to avoid delay.
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Options trading software also helps in foreseeing the future trend of prices, with the object of making gains out of the fluctuations in the share value. If these expectations come true, the investor succeeds in earning a profit. If, however, prices do not change in accordance with expectations, the investor is faced with the prospect of loss. The options can be used for the purpose of hedging, also. Hedging refers to any device through which one can protect oneself against loss. If a bull speculator agrees to purchase the security from somebody, he may hedge himself by buying a put option so that any loss he may suffer in his original transaction may be offset by the exercise of the put option. Similarly, an intending seller can hedge himself against loss through a call option. Options trading software also plays a significant part in cutting down losses. When the price of a share shows a persistent downward trend, the investor may order his broker to sell it at the current price, and cut down further loss.
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Options Trading provides detailed information on Options Trading, Stock Options Trading, Futures Options Trading, Options Trading Software and more. Options Trading is affiliated with Options Trading.

Forex Trading Software

Foreign Exchange (FOREX) Trading is the trade of international currencies. Because of the different market hours around the world, there are always open opportunities almost every hour of the day. Just like every other industry, technology has shared innovations that allow traders and brokers to continually make transactions. With the continuous rise in popularity of web technology, FOREX trading has employed the use of the Internet as a means to give traders an efficient avenue for trading.

There are various sites or software that allow you to make trades, but just like every other software, accuracy is most important. In a acquiring a software tool to help you make your decisions for trading, it is best you try it out first. There are a lot of trading sites that give you trial runs to test their products. Aside from just knowing what the rates of the currencies are for the day, you want to have software that will help you analyze data and help you predict the behavior of the market. The most common method is the utilization of graphs showing the rise and fall of the currency.
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If you subscribe to a FOREX trading site, you can make secure transactions. You want access to various markets of buyers and sellers worldwide, at any time of the day during market hours. An added service you might want to consider, especially if you are a novice trader, is access to experts that can give you advice. These experts can help you analyze the market behavior and make a wiser decision on what currency it is best to trade with.
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Forex Trading provides detailed information on Forex Trading, Online Forex Trading, Forex Trading Tips, Forex Trading Hours and more. Forex Trading is affiliated with Forex Day Trading Systems.

Trading Software

Trading is a risky business, but if carried out with care it can result in huge profits. It involves getting a firm hold in the market, either short or long term. Realizing the importance of trading, trading software programs have been introduced to the public to offer a variety of trading tools to help make proper buying or selling decisions.

Recognizing good trading software is an easy task, as the basic requirement is that of a data provider which will help you analyze the market before you start online trading. While selecting trading software, the next step after you gather reliable data is to take advantage of any free-trial period it offers.
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There are a few characteristics typical of good trading software. It should include and automatically calculate popular indicators of technical trading, for example stochastic, moving average and Fibonacci series. The design of these indicators should also be re-adjustable, for example, switching to a 9-day stochastic from a 5-day stochastic. Comparison between two data items, for example spread analysis, should also be available. In order to use several markets simultaneously, good trading software should be able to open several windows by dividing the screen. The user should be allowed to keep a track on the profit or loss incurred by constantly updating closing prices in the market.
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Good trading software could cost as much as $1,000, but it ensures high-quality service by helping the user to develop and check indicators under different scenarios. Trading software is not only important but necessary to survive in today's competitive market.

Trading Software provides detailed information on Trading Software, Forex Trading Software, Stock Trading Software, Option Trading Software and more. Trading Software is affiliated with Health Insurance Software.

Trading Computers for Profit

My own core business is in reselling computers for regular fast profits. In fact the business reached the seven figure mark a few years ago. Now I resell repossessed and liquidated PCs, Notebooks-Laptops on a daily basis having established an elite core of reliable suppliers, in Europe, UK, Canada and the USA. In fact, you can operate the business in any democratic country in the world.

It's a very simple business and there's really nothing to prevent you from starting your own liquidated resale business just as I have done.

Your chance to produce an annual income from your own home, or even from a commercial unit, reselling computers and software for profit is a definite possibility. Not only that but I will also tell you in this article where to lay your hands on valuable merchandise at rock-bottom trade prices.
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Unlike most other businesses which require a great amount of starting capital, there is a proven method you can use to make money almost from day one. No fancy premises are required. Very little capital is needed, as it is possible to start with just a couple of notebooks to resell and then to accumulate seed capital from initial profits made which can be as high as 150 percent on liquidated items.
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You can operate a computer trading business from premises or from the comfort of your home. This business is unaffected by slumps and recessions which tend to hurt most other businesses. Our own trade-training website at Beauforts.biz has been up and running for over six years and to date it has been responsible for training over ten thousand dealers to date. Not all of them have been successful, that would be an impossible scenario, but a significant number have, and several have become wholesale dealers themselves.
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Sales of computers and computer software remain buoyant despite recent peaks and troughs and show no sign of reaching a peak. In fact it is growing worldwide at a staggering rate. More and more men and women are needed to help in the promotion and marketing of computers and computer related products.
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If you haven't done any selling previously don't be concerned about it, there is no shortage of eager, willing buyers. All you need the desire to make regular cash profits. There is definitely no hard-selling involved . . . enthusiasm and a little common sense is really all you need to make good money in the business.

Whether you are a beginner or a pro in the computer business, it is essential when writing to the suppliers and other contacts to type your letters on your business letterhead. Many of the listed contacts will ONLY deal with TRADE and some will need PROOF of your credentials as a bona-fide trader.
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You will come across some wholesale ads which specifically state TRADE ONLY. Therefore, you should WRITE on printed business headed notepaper first.

To operate the Business during the Initial stages, you will need nothing other than a couple of duplicate books for sales and purchases, but when progressing into TRADE PURCHASES you should have made sufficient profits to up-grade your business and to afford the costs of ordering printed business letterheads
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If you write to a Trade Supplier, it is highly unlikely that they will respond to your letter if it is written on a plain sheet of paper. Remember, as a Trader you have an image to establish . . . your stationery can build up your image or tear it down. Never write to any source in handwritten form.

Never indicate in any letter to any source that you are new to the business . . . this does not infer that you should be dishonest in any way - you simply have no need to tell them anything about your new business other than that you are interested in obtaining trade supplies.

As an example just consider the kind of letters some suppliers receive a scribbled handwritten letter which states "I am thinking of starting a computer dealership ..." He'll still be thinking of it in years from now and such letters are considered a complete waste of time by trade suppliers. What you should do, (even if you are "just thinking about it"), is to write stating that you "intend" to start dealing in computers asking to be placed on their e-mailing list for price-lists, etc.

You can get a complete directory of Computer Wholesalers and Trade Suppliers as a free download from http://www.liquidations-uk.net so now you can give it some serious consideration because you have the tools to make a start as a computer dealer.

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 and the links in place.

© Harry S Richards

Article by Harry S Richards of Beauforts PC Trading. Offers Notebook PC and Dealerships with Training for business based upon his own methods: http://www.beauforts.biz also edits a unique Trading MART at http://www.themartuk.com

Mobile Car Wash Companies; Trading Tips

If you run a mobile car washing firm we recommend trading for as many products and services as possible. You should trade for both personal and business items. You need to keep in mind that your gross sales will go down as you do this because money will not be taken in for these services you perform. You will however, notice a significant increase in your standard of living. This is because you will generally end up trading: Wholesale To Wholesale; Retail To Retail; Retail To Wholesale; Wholesale To Retail

In other words, if you trade a pair of shoes which costs the shoe store owner $15.00, which he usually sells for $45.00, for a wash and wax on his car which costs you about $11.50 (including labor, product, soap, eater, etc.) which you usually sell for $50.00, that is wholesale to wholesale. ‘$11.50 of your cost for $15.00 of his costs.'
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This is the best way to trade. You basically are out your time, which you value at $11.50. The shoe store owner loses nothing because he got a $50.00 wax job for $15.00. Everyone is happy.

Trading retail to retail is by far the easiest. This is trading the $50.00 wax job for a $50.00 pair of shoes. It's really easy to figure out and very easy to sell. Both parties walk away feeling good.
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When you trade retail to wholesale, you really come out ahead. For example, if you wash the shoe store owners car three times which equals $15.00 worth of your services at retail for his wholesale cost of $15.00 for the shoes, you really win big. Your cost for three washes is $1.13 times three, which equals $3.39, your actual cost and he gives you a $45.00 pair of Nikes. Excuse me, but this is a great deal. The only problem is that it is too good of a deal, so give a little extra. Wash his manager's car and a customer who buys three pairs of shoes while you are there. Tell them "Since you are such a good customer of Sam's Shoe Store, I'm going to give you a free car wash." This makes Sam happy, the customer happy with you and Sam, and Sam's manager happy with you and his boss. You will probably end up with four new customers from this deal:
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Sam

Sam's Manager

Sam's Customer

A Referral Customer from one of the three

Now you are ready to drive into the sunset sporting a new pair of Nikes, driving a mobile car wash rig.

Try not to trade wholesale to retail unless you are doing it to kill time or for a family member. If Sam was your father it might be ok to take this scenario: Your cost for a car wash is $1.13. The cost for the Nikes is $45.00. $1.13 divided by $45.00 is 39.82, almost 40. That's a lot of car washes for a lousy pair of shoes.
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Oh well. They are Nikes (the best) and Sam is your father. On second thought, we don't recommend this after all. For instance: $ 5.00 Price Per Car Wash X 40 Number Of Car Washes = $200.00 Total You Would Have Made. You see you could have bought 4.4 pairs of shoes for that amount of money or some really nice expensive cowboy boots.
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So, our basic advice is this: "It's ok to trade and it makes good sense, but please make sure it's a Win/Win situation for every one involved especially the other guy. (Sam)"

New Business - Trading Equity for Cash

You awake in the middle of the night with a business idea that will change the world. The only problem, of course, is you need money to get the business moving. What do you do?

Investors and Equity
Practically every economy is built upon the backs of small businesses and entrepreneurs. Every day someone comes up with an idea that will make a great business. Every day, these same people wonder how they will come up with the cash to get the business off the ground. The classic answer is to look for investors, and this is where things can go bad.
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If you're seeking investors for your business, you are going to need to form a business entity. Corporations and limited liability companies are the most popular, and give you the ability to trade ownership interest in exchange for cash contributions. With a corporation, investors will buy shares in the corporation. With limited liability companies, the investors will buy membership interests. Regardless, this traditional exchange gives rise to a problem common among small business owners, to wit, giving away too much equity.
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From Joy to Misery

A common mistake made by new business owners is to give away too much equity when getting initial cash contributions. This occurs because you let insecurities impact you evaluation of the business. Instead of giving away two percent of equity in exchange for $50,000, you give away ten percent. Let's look at an example.
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I start a business selling digital gadgets. I prepare my business plan and realize I need $250,000 to get everything up and running. I have $50,000, but need to find the rest somewhere. I form a corporation with 1,000 shares and start approaching potential investors. I offer 100 shares for $25,000. I find five investors that give me $125,000 in exchange for 500 total shares. In summary, I now have $175,000, but have given away half the equity in the business. While I am not happy about this, I am still so enthused about the business idea that I shrug it off.
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The business gets rolling and I start selling gadgets like a madman after one year. This gives rise to a serious cash problem. I am getting orders, but can't fill them because of cash flow problems. To make a proper go of the business, I need another $100,000.
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Where am I going to get $100,000? My business is only one year old, so a bank won't touch it. My investors haven't seen penny one back, and are unwilling to put more money in. My only option is to sell another 400 shares for $100,000. Fortunately, I sell the shares, raise the money and stay in business. However, there is a major problem.
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In raising all of this money, I have now sold off ninety percent of the equity in the business. I am left owning 100 shares and only 10 percent of the business. This is going to severely impact my physical, emotionally and overall motivational well being. Slowly but surely, I am going to become very bitter. It was my idea and I am doing all the work! It isn't fair that I only own 10 percent of the business!

On second thought, this impression may come on very quickly. Regardless, the business is destined to experience major problems because the primary motivating force is no longer motivated. Unfortunately, many people with business ideas run into this problem.

If you are starting a business, guard your equity at all costs. Selling equity should be a last resort. Try to get loans or trade profit sharing in lieu of selling equity. If you must sell equity, do so only in small percentages. You do not want to the small business person in the example above.

Richard A. Chapo is a San Diego business lawyer with http://www.sandiegobusinesslawfirm.com - a San Diego business law firm in San Diego, California.

Wholesale Gold Jewelry Trading Guide for Entrepreneurs

For those of you who are thinking about selling gold jewelry, it is crucial that you understand fully how to determine the price for gold jewelry. Not only this can help you to tell a good deal from a bad one, it also helps to analyze your competitors and understand the market better before you make any investment.

Gold price The most important part of wholesale gold jewelry trading is to understand the breakdown of the cost of a piece of gold jewelry. Let‘s say the current good price is $500 per ounce. To calculate the cost of gold for a piece of 14 karat gold jewelry that weighs 3 gram without any stones, we first divide the price per ounce by 31.5, to get the price per gram, which is $15.87. This is the price of pure gold. To convert this to 14K gold, knowing that there are 24 karats in pure gold, we divide $15.87 by 24 and multiply the result by 14. The price per gram for 14k gold is roughly $9.26. Therefore, the total cost of the gold for a 3 gram ring would be $27.78.


Labor Cost Another major part of the cost for a piece of gold jewelry is the cost for labor, especially for pieces set with precious stones. Gold jewelry generally requires some filing and polishing after it is cast out of the mold. The labor cost can sometime be as high as $2 per gram, depending on the origin of the jewelry and the style. In addition, the cost of setting any stones on a gold jewelry can be over one dollar per stone. Certain advanced setting such as channel set and invisible set cost even more because of the high level of craftsmanship required.
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Markup of Competitors A good way to analyze if a certain style of gold jewelry is profitable and beneficial for a business is to understand your competitors' prices. Since you already know how to calculate roughly the cost of a piece of jewelry, and therefore the price that you can get it, buy looking at the markups of your competitors, you may get an idea of how severe the competition is. For instance, if the competitors are marking up the jewelry three times of the cost, the competitiveness of that style is not really that high. On the other, if everyone has the same pricing and the markup is 50% above the cost, the style might have already saturated the market.
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Volume trading Another angle of looking at the pricing issue is that when the competitors are marking up at a low margin, the item is probably accepted by a lot of consumers. The justification behind it is that when the profit per piece is low, and people are trading them actively, there probably is a high demand for it. On short, the higher the profit margin, the low the volume of sales and the low the profit margin, the higher could be the volume of sales. Another point that is worth noting is that the volume theory also applies to jewelry vendors. If you buy in large quantity, pricing should go down automatically. Therefore, running a successfully business involves getting the balance between all the factors within the resources and infrastructure you have such as employees and capital.
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Closeout Jewelry Since jewelry business is highly time-sensitive, styles that were once popular several months ago may not sell at all couple months later. Therefore, when buying gold jewelry wholesale, you should estimate the monthly sales and stock according to the sale volume. For example, you may want to stock a certain style for two months worth of stock and restock it when it runs out in order to minimize the closeout items in the inventory, which is sometimes referred to as inventory shrinkage.
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By understanding the market and your competitors, you can reduce the mistakes during your entrepreneurial endeavor, thus increase the chance of succeeding tremendously.

Scott Murff got his MBA from MIT business school and currently is the marketing manager in 14K gold earrings that specializes in wholesale gold jewelry including gold and cubic zirconia body jewelry.