Jonny Pean wrote a new post, Forex: Being Aware Of Its Risks, on the site News on various finance topics 1 month ago
Like any other financial market, the highly rewarding forex or fx trading system is not without its fair share of risks as well. According to the BIS or Bank of International Settlement the market (where 4 trillion dollars are traded every day) is primarily dominated by the retail segment, among other participants such as private investment funds, big banks as well as corporations. The retail volume was tipped at $300 million in the year 2000, which went to become a whopping $313 trillion in 2010 (sources: Aite Group LLC a research firm based in Boston).
Backed by these staggering figures, its little surprising that the forex market will be saddled with risks, which traders should be aware of, before they start executing trades here. The ever growing volatility in the currency market is driven by the lingering debt problems in the UK and the US. As per wsj.com, the value of dollar experienced a record fall against the Japanese Yen in the recent past. However, such is the volatility of market, that within a day of hitting record low, the dollar bounced back by being 7.5% up against the yen. Therefore it is important to take measures against risks if you’re willing to open forex account. Those who trade successfully are aware of the risks here. Since the leverage involved is high, there are higher chances of losing it big.
Given below are a few basic tips that will help you avoid these risks with ease.
A Few Measures of Risk Reduction in Forex
Overtrading perhaps spells the greatest of disasters for investors. You should be able to size your bet perfectly. Emotions play a huge role in this regard and they can dampen trades both when you are winning and losing. When you have a considerable number of successful trades initially, you might run the danger of being tempted to go on investing more in order to rake in more profits. Somewhere down the line, lucrative trades make you forget that higher investments entail higher risks. Seasoned traders know exactly when to exit their positions even if they are winning big. On the other hand, a series of bad trades often lead traders to put more money at stake simply thinking that there’s still time for their fortunes to turn, which hardly happens and they end up losing big. Once again, it’s very important to understand that there are “bad days” for the best of the traders as well. So if you are losing, then you should be prudent enough to close positions just after executing a few trades, rather than “holding on”
Scams are a regular feature in forex as well. There are a number of unscrupulous brokers willing to rob you off your money. Make sure that you are exercising due discretion to opt for brokers who are regulated. Different countries have different regulating authorities, so make sure that you’re finding out which regulating body is controlling your broker.
The CFTC or the Commodity Futures Trading Commission and the National Futures Association (NFA) are the regulating bodies in the US. In Japan the Financial Services Agency or FSA is at the helm of things. Find out about the other countries as well.
Tom Brown wrote a new post, How Engaging Your Customers Through Social Media Will Improve Your Business, on the site Global Finance News 1 month ago
A recent piece of research by the Internet Advertising Bureau found that around 80% of UK consumers would buy from brands more often after those companies implemented a social media campaign. The depth that social […]
Tom Brown wrote a new post, The Rising Cost of Insurance: Is This Fair on Young Drivers?, on the site Global Finance News 1 month ago
Aside from the cost of buying the car, the next big expense when it comes to owning one is the insurance premium. UK law requires car owners to get car insurance if they are going to drive the car on public roads […]
Joys wrote a new post, It’s nearly fun to play casino games online, on the site Site For Technological Invassion 1 month ago
Our world has a rich and ancient history of gambling. We’ve found more than a few examples of people who have turned their lives 180 degree and have become able to taste the success that they always have starved […]
mikearnill wrote a new post, 5 Ways Mobile Device Management is a Game Changer For Companies, on the site Finance Tips 1 month ago
Modern businesses stand on a foundation of smart marketing, good customer service, and technology. That last one can pose a challenge to those whose expertise falls outside the realm of networks, applications, and […]
Tom Brown wrote a new post, The Ins & Outs of Managing Your Investment, on the site Global Finance News 1 month ago
Financial investment is fraught with difficulty. No one has a crystal ball and markets that looked sound in one year can easily collapse in the following 12 months. The recent history of the sub prime market is a […]
Bertie wrote a new post, The browser wars, on the site Read This! 1 month ago
No not between Google Chrome and IE or Safari or Firefox.
For the past week I have intentionally been reading the great newspapers of the US and Europe on paper.
And of course, they are heavy weights, and I do not mean with regard to opinion, but in simple paper weight.
Now apply the categories that we use to classify news on the Internet: OMG, WTF and LOL to these newspapers and you can reduce them all most probably to a single page!
Which set me thinking. Perhaps newspapers don’t compete with news on line as such, but rather with browsers, IE, Google Chrome, Safari, Firefox. In the pre-Internet era newspapers provided the browsing opportunities that IE etc now provide us.
Who can ever read everything on the Internet? Of course not. It is just as impossible for the non-retired, working man and woman to read one of these great newspapers from front to back. They are intended to be browsed and tidbits sampled here and there.
That is why reading a newspaper on a tablet is such a different experience. You don’t feel intimidated by the content. You quickly scan and I finish the WSJ and the FT every morning inside of 15 minutes. Quickly scan the news, read a couple of letters and one or two opinion pieces and a highlighted item. Finish.
Newspapers have spawned online to actual items of immediate value.
Which brings me to the point, as long as newspapers try to create online what they had on paper they are doomed. They will lose the browser war. They are bringing a knife to a gun fight!
Harry Golden wrote a new post, How You Must Clean The Spotting Scope – Vital Cleaning Tips, on the site General Tips and Ideas Blog 1 month ago
Your binoculars or spotting scope enjoys a place pride in your trek gear. It is very much evident that you would like to keep it in top condition and shape always. There are a few simple yet important cleanings […]
constantitempurchasingpoweraccounting wrote a new post, With Bitcoin, generally accepted terms trump economic science, on the site Capital Maintenance in Units of Constant Purchasing Power™ 1 month, 1 week ago
With Bitcoin, generally accepted terms trump economic science
An American federal judge stated that bitcoin is a unit of account, meaning monetary unit of measure. Bitcoin is a very unstable variable real value non-monetary item, not a monetary unit of measure. Bitcoin can never be a monetary unit of measure because it is not a monetary item. All monetary units of measure are assumed to be perfectly stable in real value for accounting purposes during low and high inflation and deflation. Bitcoins are not perfectly stable in real value and will never be assumed to be perfectly stable in real value because a bitcoin is a variable real value non-monetary item. Monetary unit of measure only refers to a fiat currency unit of measure.
Bitcoin is universally referred to as a currency. It can never be a currency. It is not a monetary item. It is a variable real value non-monetary item similar to rare digital stamps. All fiat currencies are assumed to be perfectly stable in real value during low and high inflation and deflation for accounting purposes. Bitcoin will never be assumed to be perfectly stable in real value.
Everyone is 100% sure that bitcoin is a decentralized payment platform. In fact, all bitcoins only exist in the single, centralized Bitcoin Public Ledger or single bitcoin repository. All bitcoins are deposited in this single repository. However, everyone is 100% sure it is a decentralized system.
Mining, the creation of bitcoins, is assumed or supposed to be decentralized, but all bitcoins are then deposited in the single central repository called the Bitcoin Public Ledger where they stay centralized in one place forever. Currently the company GHash controls 51% of mining which is a very dangerous situation for the Bitcoin system.
Public opinion and public practice will always override science in matters like these.
Nicolaas Smith Copyright (c) 2005-2014 Nicolaas J Smith. All rights reserved. No reproduction without permission.
joys joy wrote a new post, 3 Top Qualifications You Need to be an Accountant, on the site News 1 month, 1 week ago
The role of an accountant is essential any business. They mainly record and collect financial data used to make sound business decisions. They are also responsible for making reports used to know how much is […]
joys joy wrote a new post, Anthony Amaradio Explains How A Wealth Management Company Helps A Person Overcome Financial Insecurity, on the site News 1 month, 1 week ago
Every person living in this world has certain goals in life that he tries to achieve. These aspirations can only be fulfilled by utilizing financial resources in a judicious way. This is what Anthony […]
joys joy wrote a new post, Timothy Munro Roberts Station Digital – The Man Behind the Innovation, on the site News 1 month, 1 week ago
In the grand scheme of things, it isn’t that long ago that we listened to music through records, tapes or discs, or had to switch on the radio. People liked the radio because it enabled them to enjoy their […]
constantitempurchasingpoweraccounting wrote a new post, Bitcoin is not a unit of account, on the site Capital Maintenance in Units of Constant Purchasing Power™ 1 month, 1 week ago
Bitcoin is not a monetary unit of measure or unit of account
Bitcoin is not a monetary unit of measure or unit of accountA monetary unit of measure is often mistakenly called a unit of account by the man in the street and even by a US federal judge. See
Distinguishing the Unit of Account from the Unit of Measure
Money is always a monetary unit of measure. The best known monetary units of measure are the best known fiat currencies in use today: US Dollar, Euro, Pound, Peso, Rouble, Yuan, Yen, Shilling, etc. All fiat currencies are monetary units of measure.
They are all monetary items when used inside the economy where they are created. They are variable real value non-monetary items when used as foreign exchange outside the economy where they are created.
Money (any fiat currency) as the monetary unit of measure is the only unit of measure that is not based on a constant value. It is thus assumed for accounting purposes only under Historical Cost Accounting and Current Cost Accounting (which implement the stable measuring unit assumption) that all monetary units of measure are perfectly stable in real value for the purpose of measuring monetary items not inflation-indexed and constant real value non-monetary items only during low and high inflation and deflation.
All other units of measure are based on constant values, e.g., inch, foot, yard, mile, kilometer, meter, pound, gram, ounce, watt, etc.
A monetary unit of measure is an assumed to be perfectly stable in real value, monetary item (fiat currency) – in the economy where it is created – used to account economic activity in terms of the double entry accounting model.
The best known double entry accounting model is the traditional, generally accepted, globally implemented Historical Cost Accounting model.
Other double entry accounting models are:
Capital Maintenance in Units of Constant Purchasing Power in terms of the Daily CPI.
Current Cost Accounting
Thus, bitcoin, the digital unit of the Bitcoin digital payment platform, is not a monetary unit of measure, because all units of measure are either based on a perfectly constant base unit (e.g., inch, centimeter, gallon, pint, watt, ohm, etc.) or – only in the case of monetary items – assumed to be perfectly stable in real value only during low and high inflation and deflation and only under the Historical Cost Accounting and Current Cost Accounting models.
A bitcoin is not a monetary unit of measure because economic items are not generally priced or measured in bitcoins. No financial reports are prepared in bitcoins. No set of accounts is prepared in bitcoins.
Monetary units of measure are all monetary items (currencies) assumed to be perfectly stable in real value only during low and high inflation and deflation only under HCA and CCA.
Bitcoins are not perfectly stable in real value and are not and cannot be assumed to be perfectly stable in real value because they are not monetary items.
Bitcoin is always a variable real value non-monetary item similar to a limited issue rare stamp in digital form.
Thus, bitcoin is not and cannot be a monetary unit of measure for accounting purposes. Bitcoin is not a monetary unit of measure because it is not perfectly stable in real value and it is not and it cannot be assumed to be perfectly stable in real value because a bitcoin is not a monetary item.
Bitcoin is a digital variable real value non-monetary item. The bitcoin digital units are numbered in terms of the normal numbering system: 1, 2, 3, …..
The fact that a US federal judge referred to bitcoin as a unit of account (mistakenly meaning monetary unit of measure) does not constitute a binding definition or description since it was made under US common law. Any other US common law judge can have a different opinion.
Terrence Stoker wrote a new post, Can you benefit from franchising?, on the site Money Think 1 month, 1 week ago
There is a systematic prevention for achieving in the career market: to get a position requires you to have experience, but to get experience, you need to have a position! This unfortunate principle applies to […]
roger wrote a new post, Important Tips for Fast Book Translation, on the site corebusiness 1 month, 1 week ago
Are you an author and looking forward for translation of the book? The best part is that this article will purely focus on translation subject! First and the foremost thing it doesn’t matter whether you are expert in one or two languages, for translation special qualifications are required providing quality and speed. Hence, don’t think that you can translate own your own and doesn’t need any professional help.
Never go for a bilingual person, even if someone is good in your target translated language that doesn’t mean that you will not be having any problem. Because, as told translation is a completely different type of profession that can help you out in extracting the same meaning as there is on the book. Rest; go for quality translation firm since, you cannot take a risk by hiring anyone for your appreciated books.
Book translation is quite a sensitive subject and must be dealt with care. Each book is unique and so is the author. Owing to the fact one cannot trust a new translator for translation of the book. Always hire someone having prior experience in the same. The reason is that there different types of translation and each one is different. For translating any book, one must be emotionally and culturally linked to the language. This will help the translator in extracting the exact emotions and feelings as it is from the book. The style, tone and the structure of the story should not be molded. But, that doesn’t mean that you will not be doing anything and will be sticking to the grammar of the language. If this will happen, it will be a technical translation nothing more than that. Hence, it is important that that translator must go through the book and try and find out the best way of translation himself.
Contact the project manager of the company you have selected and tell all your requirements. Try to give him a brief about the type of translation you want no matter what. Ask him to appoint translators best for the job. There are people having expertise in projecting the right image of the content into other languages especially when it is a book! The other best tip is to discuss the best methods and review the translated book taking the help of the native person. Further, you can always ask for the best alteration since it is a book. The core aim or the moral should never be distracted in translation. People should be able to read the entire book fluently with proper connections in between the text and the sentences.
About The Author:
Rohina is one of the brilliant book translators handling all translation in multiple languages. She has translated several books in English into many languages. Further, She loves playing guitar and piano.
Staff Training wrote a new post, What Colour are Your Office Walls?, on the site Staff Training 1 month, 1 week ago
Whether you’re aware of it or not, colour affects your thinking and behaviour each and every day – so bear this in mind next time you redecorate!
Choosing a colour for the office walls seems like a trivial […]
Tom Brown wrote a new post, Payday Loans – Be Aware, on the site Global Finance News 1 month, 2 weeks ago
Most financial experts agree payday loans can be dangerous and put the borrower in increased financial hardship. From the Citizens Advice Bureau to the http://www.moneyadviceservice.co.uk website, advisors all warn about […]
joys joy wrote a new post, How active managers use the derivatives market for extracting values, on the site News 1 month, 2 weeks ago
Structured products are types of investment that are aimed at producing limited returns and risks.Investors are often concerned about the complexities associated with these products although they are marketed as […]
Webb Ward wrote a new post, 4 simple steps and understand how much student debt is too much , on the site Webb 1 month, 2 weeks ago
How much debt is too much for student loan debt – this is a very common question which is often asked by the students and the parents. Besides being common, it is a tricky question as there are a number of […]
Webb Ward wrote a new post, Willing To Trade With Automated Trading Systems? Here Are A Few Brokers Who Offer This Facility, on the site Webb 1 month, 2 weeks ago
An automated trading system is often regarded as more advantageous as against the manual one as it involves little emotions, is faster in executing trades and ensures consistency amidst market volatility. However, […]
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