Pros and Cons of Home Based Business
Before taking the plunge it is advisable that one considers the pros and cons of home based business. Having a business at home gives you the opportunity to spend more time with your family. It can also be a positive lesson to family members on customer relations and good business practices. And obviously, you get to be your own boss, however the customer service has to be the top class and it also asks for a lot of self-discipline. Another advantage is reduced expenses; you don’t have to pay for traveling, eating out, and no expenses on office setup. There are many other benefits but these may vary from person to person like one of my friends told me that at times it becomes boring and gets the feeling that he is glued to that place. Well, if you feel like that you know what to do…take a break. To take an informed decision before one embarks, it is vital that one considers all the pros and cons properly.
Having a home-based business is really up to each individual’s own preference. There are some that work better at a traditional job while others work better with the freedom of a home based business. Whatever is the case make sure your work speaks for itself, after all when you will be gone it will be your work that will leaves the mark on the sand of time…proof that you existed.
Wednesday, November 10, 2010
Online Commodities Trading For Beginners
Online Commodities Trading For Beginners
The economic downturn has many people worried about recession, and inflation rates seem to be rising every other week. In light of such uncertain times, have you ever wondered if investing your hard earned dollars into the stock market is the prudent thing to do? Or are you already considering alternative forms of investment? If so, consider online commodity trading
, because depending on your knowledge, risk appetite, and the commodities you choose, you have the potential to earn big returns on your investment.
But if you're a greenhorn at the commodity market, or even at trading for that matter, you might be wondering what commodities trading is all about. Commodities trading is where traders trade contracts for goods, and not for the goods themselves; goods such as food like corn or malt, or metals like gold and silver. The traders don't have to deliver the goods to some end-consumer at the end of the day, because they don't have the goods to begin with, and most likely never will have them. A trader would instead buy a contract if he thought that the price for a commodity would be going up in the future. He would then sell the contract if he thought the price would depreciate. Think of it as a kind of insurance plan for the traders and investors; regardless of price fluctuations, both the buyer and the seller are guaranteed the price stated in the contract at the time of trade. Just like any business transaction, there is always a buyer and seller in every trade made, but neither the buyer or the seller is required to own a particular commodity in order for the trade to happen. The only thing that a trader has to do is to deposit enough capital with a brokerage firm to ensure that he would be able to pay for his losses if his trade loses money. This is known as commodity futures trading.
So now that the concept of commodities trading is out of the way, why trade online?
Online commodities trading involves the transmission of orders by customers to either buy or sell a commodity to a commodity exchange via an electronic marketplace. Unlike the traditional offline method of trading, no brokers are required to represent customers. However, having an online broker would cost you less commissions-wise than if you were to have a full-service broker. As such, you stand to be more profitable on your trades than if you were to trade offline.
Trading commodities online also provides you with almost everything you need the moment you log into your trading account. Most online brokers are equipped with real time information, ranging from futures news, price quotes, charts, technical analysis programs, and other research material that are made available for their clients. As such, those who wish to embark on online trading on their own are able to make more informed decisions when trading because the same tools have been made available for them online.
However, despite the apparent advantages of trading commodities online, one would also have to be aware of the pitfalls that are associated with online commodities trading.
For one thing, because you have the freedom to make your own trades online, there is no one watching over your shoulder to guide you along with your trades. Inexperienced traders usually lose money this way, because they think that the tools made available to them through trading online make great substitutes for experience. The fact is that nothing can substitute experience, and having an experienced broker by your side would most likely help you avoid such losses. Treat the broker as a mentor if you're just starting out; learn by asking questions and having them answered within minutes instead of spending hours or days researching on your own.
Another issue to take note of is over trading. The temptation to be swayed from one's original plan of holding trades for a period of time rather than 'capitalizing' on small breaks in the market trend are usually the cause of traders losing a sum of money, most often the considerable portion of it is by way of commissions. Even though commissions on every trade may be cheap, every commission compounds to every trade made; worse still if the trade results in a loss. So while it might be a good idea to seize a good opportunity when you see one, make sure you have a plan tailored for every trade you intend on making, instead of changing your strategies blindly just because you're lured by the possibility of making a quick buck.
While online commodities trading may seem like a prudent investment option in these uncertain times, it requires discipline, the right mindset, and a sound trading plan in order for you to succeed in it. For beginners, the best way to trade commodities is through an online broker.
But if you're a greenhorn at the commodity market, or even at trading for that matter, you might be wondering what commodities trading is all about. Commodities trading
So now that the concept of commodities trading is out of the way, why trade online?
Online commodities trading involves the transmission of orders by customers to either buy or sell a commodity to a commodity exchange via an electronic marketplace. Unlike the traditional offline method of trading, no brokers are required to represent customers. However, having an online broker would cost you less commissions-wise than if you were to have a full-service broker. As such, you stand to be more profitable on your trades than if you were to trade offline.
Trading commodities online also provides you with almost everything you need the moment you log into your trading account. Most online brokers are equipped with real time information, ranging from futures news, price quotes, charts, technical analysis programs, and other research material that are made available for their clients. As such, those who wish to embark on online trading on their own are able to make more informed decisions when trading because the same tools have been made available for them online.
However, despite the apparent advantages of trading commodities online, one would also have to be aware of the pitfalls that are associated with online commodities trading.
For one thing, because you have the freedom to make your own trades online, there is no one watching over your shoulder to guide you along with your trades. Inexperienced traders usually lose money this way, because they think that the tools made available to them through trading online make great substitutes for experience. The fact is that nothing can substitute experience, and having an experienced broker by your side would most likely help you avoid such losses. Treat the broker as a mentor if you're just starting out; learn by asking questions and having them answered within minutes instead of spending hours or days researching on your own.
Another issue to take note of is over trading. The temptation to be swayed from one's original plan of holding trades for a period of time rather than 'capitalizing' on small breaks in the market trend are usually the cause of traders losing a sum of money, most often the considerable portion of it is by way of commissions. Even though commissions on every trade may be cheap, every commission compounds to every trade made; worse still if the trade results in a loss. So while it might be a good idea to seize a good opportunity when you see one, make sure you have a plan tailored for every trade you intend on making, instead of changing your strategies blindly just because you're lured by the possibility of making a quick buck.
While online commodities trading may seem like a prudent investment option in these uncertain times, it requires discipline, the right mindset, and a sound trading plan in order for you to succeed in it. For beginners, the best way to trade commodities is through an online broker.
Advantages of Commodity Trading Online
Advantages of Commodity Trading Online
Commodity trading online has become much more of an interesting business endeavor with real time commodity quotes and live charting services now offered by a number of Internet based commodity futures brokers
.
Internet technology has made the type of commodity trading services previously reserved for the deep pockets professional trader available to even small traders who have limited amounts of risk capital to trade. However, whenever you trade commodities the risk of sudden adverse price movements are still present, so even with great trading software, charts, and other facilities a trader should always protect his capital by using stop loss orders.
As always, great trading platforms or not commodities should only be traded with true risk capital. By that I mean funds that if lost would not impact your standard of living at all. No one likes to lose money but if you lose risk capital your life would go on without missing a beat. If you disregard this advice and risk your mortgage payment money you will almost certainly lose.
Commodity trading online makes the collection of commodity information, up to date prices, weather forecasts, USDA and CBOT reports, and commodity charts so much more convenience to access compared to old before the Internet trading days. However, greater convenience doesn't mean that it is easy to become a successful commodity trader. Commodity trading requires skill sets and discipline that some people just don't have.
One good thing about online commodity trading is that most online commodity brokers offer demo trading accounts that will let you try out their trading platforms without risking real money. While trading a demo account is not the same as trading your own funds, believe me, the emotional factors are different, you can still get a good feel for what is required in order to be successful and if online commodity trading is for you.
There are so many commodities that you can trade it is easy to at first become confused as each commodity futures contract is a bit different. In getting started it is best to limit yourself to just one or two futures contracts.
There are contracts in the precious metals, like gold, silver, and platinum.
Then you have contracts in the base metals like copper, aluminum, nickel, zinc, and tin.
Don't forget the "soft" commodities like sugar, cocoa, and coffee.
The grains have a lot of action these days and are subject to weather influences. Record prices were hit this year in corn, soybeans, rice, and wheat.
Then the big daddy of them all would be crude oil and the entire energy complex including natural gas and heating oil. With crude oil in a tremendous bull market and trading above $130 a barrel new trading price records seem to be made every few days. There is plenty of excitement, profit potential, and risk in the energy complex.
Commodity trading online can be a fantastic business for the well informed trader who takes the time to develop the necessary skill sets to trade well consistency. Commodity trading is not for the lazy who rely on luck for trading profits. Chances are their money will not last long in the extremely competitive trading environment offered by the commodity markets.
If you have an interest in online commodity trading you can run a Google search for "commodity trading online" and find a number of commodity resources. To find online brokers run a Google search for "online commodity brokers" and you will find plenty of firms to research.
In researching online commodity brokers make sure that they are members of the NFA and are registered with the CFTC. By dealing with firms who are NFA members and registered with the CFTC you will have some measure of protection as to how your funds are handled and as to the accuracy and fulfillment of your orders.
With most online commodity trading brokerage firms just a few mouse clicks will provide you with a world of useful information that will assist you in making better trading decisions.
Internet technology has made the type of commodity trading services previously reserved for the deep pockets professional trader available to even small traders who have limited amounts of risk capital to trade. However, whenever you trade commodities the risk of sudden adverse price movements are still present, so even with great trading software, charts, and other facilities a trader should always protect his capital by using stop loss orders.
As always, great trading platforms or not commodities should only be traded with true risk capital. By that I mean funds that if lost would not impact your standard of living at all. No one likes to lose money but if you lose risk capital your life would go on without missing a beat. If you disregard this advice and risk your mortgage payment money you will almost certainly lose.
Commodity trading online makes the collection of commodity information, up to date prices, weather forecasts, USDA and CBOT reports, and commodity charts so much more convenience to access compared to old before the Internet trading days. However, greater convenience doesn't mean that it is easy to become a successful commodity trader. Commodity trading requires skill sets and discipline that some people just don't have.
One good thing about online commodity trading is that most online commodity brokers offer demo trading accounts that will let you try out their trading platforms without risking real money. While trading a demo account is not the same as trading your own funds, believe me, the emotional factors are different, you can still get a good feel for what is required in order to be successful and if online commodity trading is for you.
There are so many commodities that you can trade it is easy to at first become confused as each commodity futures contract is a bit different. In getting started it is best to limit yourself to just one or two futures contracts.
There are contracts in the precious metals, like gold, silver, and platinum.
Then you have contracts in the base metals like copper, aluminum, nickel, zinc, and tin.
Don't forget the "soft" commodities like sugar, cocoa, and coffee.
The grains have a lot of action these days and are subject to weather influences. Record prices were hit this year in corn, soybeans, rice, and wheat.
Then the big daddy of them all would be crude oil and the entire energy complex including natural gas and heating oil. With crude oil in a tremendous bull market and trading above $130 a barrel new trading price records seem to be made every few days. There is plenty of excitement, profit potential, and risk in the energy complex.
Commodity trading online can be a fantastic business for the well informed trader who takes the time to develop the necessary skill sets to trade well consistency. Commodity trading is not for the lazy who rely on luck for trading profits. Chances are their money will not last long in the extremely competitive trading environment offered by the commodity markets.
If you have an interest in online commodity trading you can run a Google search for "commodity trading online" and find a number of commodity resources. To find online brokers run a Google search for "online commodity brokers" and you will find plenty of firms to research.
In researching online commodity brokers make sure that they are members of the NFA and are registered with the CFTC. By dealing with firms who are NFA members and registered with the CFTC you will have some measure of protection as to how your funds are handled and as to the accuracy and fulfillment of your orders.
With most online commodity trading brokerage firms just a few mouse clicks will provide you with a world of useful information that will assist you in making better trading decisions.
COMMODITY TRADING
Commodity trading
Commodity trading is the trading in commodity derivatives, where commodity refers to any bulk goods traded in the exchange. Mainly Bullion, Energy, Metals and Agricultural Commodities are trading in the commodity market. Derivative is a kind of financial security whose price is depend upon or derived from one or more underlying assets. The derivative assets may be in the form of stocks and bonds of corporate, commodities and currencies of various countries. Commodity trading basically refers to trading where investors buy or sell commodities, through future transactions or contracts.
A future is a standardized forward contract that requires delivery of a commodity at a specified price on a specified or predetermined future date. In this case the buyer is obligated to fulfill the terms of the contract. The buyer and seller have the option to square up their position before expiry of the contract subject to other conditions governing each contract. Although the commodity trading pattern is quite similar to equity share trading, it involves smaller margins and is lot easier to understand. A commodity trader can start with commodities like gold and grains, which attract very low margins. As well, the time limits for commodity trading stretch from morning 10 O’clock to mid-night. Hence it is possible to trade after completing day-to-day work.
Requirements – physically & mentally
Find a broker/sub-broker to open account to trade with commodity. The broker if satisfied with the economic standing of the person, they may ask pan card, demat account, bank account and margin money for opening account with him. After completing these formalities, the person allowed for commodity trading. Margin is the upfront money payable to broker before taking a position in the market. Like equity trading activity, the commodity trading requires the easy accessibility of information and liquidity facility. The trader can easily reduce risk by effective diversification. The low risk trading strategies include both delivery spreads and spot-futures arbitrage. The trader can take advantage of the low margins and take directional calls on the markets. The market is diverse in nature, and it is suitable for the day trader/speculator, long-term investor, hedger and arbitrageur.
Risk and Return
Higher the return there is risk also high; lower the return the risk is also low. Based on the risk-return appetite, the trader can enjoy benefit or return. Commodity trading is basically futures trading giving rise to leveraged positions. For this sake, mostly the wealthy and knowledgeable traders campaigning towards commodity trading place. Risk is inherent in any investment, by proper entry and exit strategy can safeguard from loss. The uncertainty and risk are part of all derivative markets and risk factors in commodity futures trading are similar to futures trading equity markets. The key difference is that the information availability on supply and demand fluctuations in commodity markets may not be as tough as the equity market. The return from the commodity market is also handsome, if the trading strategy of the trader worked out properly. The understanding about the technical and fundamental factors of global as well as domestic economy helps to earn superior returns from the commodity trading. Inflation is the big problem in the present economy; commodity is the good tool of investment strategy to beat inflation risk. Commodities are the hedge against inflation because unlike equity, commodity prices move in tandem with inflation. Besides, buying commodities make your investment truly global and there are no issues with company management or cash flow involved, all of which make commodity trading a pure demand and supply match.
Clearing and Settlement
Delivery based trading is now becoming popular. Each contract has a lot size and delivery size; it varied from asset to asset. Market participant are required to negotiate one the quantity and price of the contract, as all other parameters are predetermined by the exchange. Delivery is in dematerialized form and can be rematerialized at time at the request of the trader with the depository organization.
Conclusion
The markets are very lively and dynamic. A systematized and cautious moving will help to being a successful trader. Patience, discipline and knowledge are all important qualities to develop successful and fruitful commodity trading.
Commodity trading
A future is a standardized forward contract that requires delivery of a commodity at a specified price on a specified or predetermined future date. In this case the buyer is obligated to fulfill the terms of the contract. The buyer and seller have the option to square up their position before expiry of the contract subject to other conditions governing each contract. Although the commodity trading pattern is quite similar to equity share trading, it involves smaller margins and is lot easier to understand. A commodity trader
Requirements – physically & mentally
Find a broker/sub-broker to open account to trade with commodity. The broker if satisfied with the economic standing of the person, they may ask pan card, demat account, bank account and margin money for opening account with him. After completing these formalities, the person allowed for commodity trading. Margin is the upfront money payable to broker before taking a position in the market. Like equity trading activity, the commodity trading requires the easy accessibility of information and liquidity facility. The trader can easily reduce risk by effective diversification. The low risk trading strategies include both delivery spreads and spot-futures arbitrage. The trader can take advantage of the low margins and take directional calls on the markets. The market is diverse in nature, and it is suitable for the day trader/speculator, long-term investor, hedger and arbitrageur.
Risk and Return
Higher the return there is risk also high; lower the return the risk is also low. Based on the risk-return appetite, the trader can enjoy benefit or return. Commodity trading is basically futures trading giving rise to leveraged positions. For this sake, mostly the wealthy and knowledgeable traders campaigning towards commodity trading place. Risk is inherent in any investment, by proper entry and exit strategy can safeguard from loss. The uncertainty and risk are part of all derivative markets and risk factors in commodity futures trading are similar to futures trading equity
Clearing and Settlement
Delivery based trading is now becoming popular. Each contract has a lot size and delivery size; it varied from asset to asset. Market participant are required to negotiate one the quantity and price of the contract, as all other parameters are predetermined by the exchange. Delivery is in dematerialized form and can be rematerialized at time at the request of the trader with the depository organization.
Conclusion
The markets are very lively and dynamic. A systematized and cautious moving will help to being a successful trader. Patience, discipline and knowledge are all important qualities to develop successful and fruitful commodity trading.
Home Based Business for All
Best Home Business
People search for a list that would provide the best rated home based business. Well, for starters top of the rank include content developing (web writing, proofreading, editing), forex and stock and shares trading, multilevel marketing and classes at home. While these provide maximum returns, it is important for one to have interest in any of these. For instance, one is interested in food, but gets carried away to take up content editing, the person after a while will drop this, or may not be able to cope up with the number of assignments. It would be better for him/her to start a catering and Tiffin service instead, which would reap profits and job satisfaction.
Yet, the best home based business opportunities are as follows:
Content writing
-Content proofreading
-Content editing
-Corporate gifts
-Forex trading
-Trading in stocks and shares
-Tuitions (academic)
-Hobby classes
-Handicraft making
-Catering and tiffin services
-Data entry
-Medical Transcription
-Mediclaim
-Copywriting
People search for a list that would provide the best rated home based business. Well, for starters top of the rank include content developing (web writing, proofreading, editing), forex and stock and shares trading, multilevel marketing and classes at home. While these provide maximum returns, it is important for one to have interest in any of these. For instance, one is interested in food, but gets carried away to take up content editing, the person after a while will drop this, or may not be able to cope up with the number of assignments. It would be better for him/her to start a catering and Tiffin service instead, which would reap profits and job satisfaction.
Yet, the best home based business opportunities are as follows:
Content writing
-Content proofreading
-Content editing
-Corporate gifts
-Forex trading
-Trading in stocks and shares
-Tuitions (academic)
-Hobby classes
-Handicraft making
-Catering and tiffin services
-Data entry
-Medical Transcription
-Mediclaim
-Copywriting
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