“Leverage” is the Forex advantage

The ratio of investment to actual value is called “leverage”. Using a $1,000 to buy a forex contract with a $100,000 value is “leveraging” at a 1:100 ratio. The $1,000 is all you invest and all you risk, but the gains you can make may be many times greater.

How does one profit in the Forex market?

Obviously, buy low and sell high! The profit potential comes from the fluctuations (changes) in the currency exchange market. Unlike the stock market, where share are purchased, Forex trading does not require physical purchase of the (more…)

About the forex market

The currency trading (foreign exchange, Forex, FX) market is the biggest and fastest growing market on earth. Its daily turnover is more than 2.5 trillion dollars. The participants in this market are central and commercial banks, corporations, institutional investors, hedge funds, and private individuals like you.

What happens in the market? (more…)

In my last post about the power of compound interest, I gave you an example about the difference between simple and compound interest. And that compound interest can give you higher return by reinvesting your earned interest to earn more interest. In this post, I would like to give you (more…)

I am planning to move this blog to a new domain name by the end of this month and IXwebhosting is my first choice. They have this expert plan or the basic plan that will only cost you $3.95/mo. It comes with one free domain reg(free for life), an unlimited domains and subdomains hosting, 600 GB disk storage, 6,000GB data transfer and 2,500 email accounts. They also offer business plan at $6.95/mo with 2 free domain regs(free for life), (more…)

“The most powerful force in the universe is compound interest”

-Albert Einstein

If you are serious about saving or investing your money, you should understand compound interest. But if you think you’re not yet ready to enter the investment world, and you think that you still have to wait 3 or 5 more years before you start saving money, then I guess you’re the one who really needs to understand the power of compound interest. (more…)

The basic guideline in investing is the country’s inflation rate. All your savings for the long term, time deposits and other investments must produce rates that are higher than inflation. Your earnings rate should be 2 to 4 percent above inflation rate. So, if the inflation rate is 6%, your earnings rate should be 8 to 10%. Otherwise, you will lose a great deal of money especially if you invest for the long term. (more…)