Learn Currency Trading (FOREX)

A few years back I in gained an interest in currency trading, one of my friends worked for Chase Bank in their, arbitrage department where they took advantage of a price differential between two or more markets by trading lots of $100,000. I had an interest but I had no idea where to start I thought it was such a complex skill that required an ivy league education. Until I learned about the Forex (Foreign exchange) market, Forex trading is relatively new and has increase dramatically over the past 10 years. All that is required is the knowledge, a computer, high speed internet connection and starting cash.

Companies make huge amounts of cash from trading Forex, I once heard that Mercedes Benz makes more money trading currencies than they do selling cars. I don't know if its true but it is possible. Individual Forex traders are able to do the same thing as large banks do but on a much smaller scale. The Forex market is a much more immediate reflection of a countries economy and changes accordingly, with the interest rate manipulation of their respected financial governing bodies as well as good old supply and demand. Currencies like the Japaneses Yen (JPY) US Dollar (USD), British Pound (GBP) and European (EUR) are the major currencies as well the major economies in the world. Most of the worlds transactions are made in one of these major currencies oil for example is largely settled in USD this is because of the strategic relationships the USA has with various oil producing nations as well as the stability and value of the USD. Foreign countries also hold reserves of other currencies in the treasury a major shift in the reserve levels or base currency of major transaction can affect the value of a currency and therefore the strength of the corresponding economy and if dramatic enough can result in war, irregardless other reasons given for war 99% of the time their is no other legitimate reason to fight a war because wars are extremely expensive thus the cost of going to war must out weigh the potential lost value experienced by the declaring country.

So currencies are serious business and its not going anywhere anytime soon, trading currencies are also more liquid than trading stock with so many large banks and countries involved. When I started it took me 1 month to train myself by reading and watching various videos to learn the system, it took another month of trading on a demo account for me to learn the trends and develop a profitable trading strategy. So, in 2 months I taught my self a new skill and was up and running my own business with no overhead.

By Nero

Financing a Small Business: Equity or Debt?

Nolo 01.05.07, 4:30 PM ET

To raise money for your new business, you must decide whether you want to borrow money or sell ownership interests to equity investors. Often, you may not have many options--the person with money to lend or invest will obviously have a lot to say about it. But you should understand the pros and cons of choosing one over the other.

Taking Out Business Loans

Borrowing money to fund your business has many advantages. Often, you'll borrow this money from a friend or family member, but if you're lucky, you may be able to borrow from a commercial lender too.

Advantages of Borrowing Money

The main advantage of borrowing money is that, while the lender will charge you interest for using the money, the lender won't have any say in how you run or manage your business. More importantly, a lender won't be entitled to any of the profits you make; all you have to do is to repay the loan on time. In addition, you can typically deduct the interest payments (but not principal repayments) as a business expense.

If you can borrow money from a friend or family member, you'll typically pay a lower rate of interest than if you borrow the money from a commercial lender, and you can avoid paying the loan fees commercial lenders tend to charge. As an added bonus, you may be able to negotiate more flexible repayment terms than a commercial lender would permit.

Disadvantages of Borrowing Money

If you borrow money, you may be committing your business to a fairly large business expense. You may have to make loan payments when your need for cash is greatest (usually during your business's startup or expansion). And if you have problems paying the loan back or keeping up with the payments, you can ruin your relationship with family or friends.

If you borrow from a commercial lender, the lender may require you to pledge property as security for the loan. (If you don't repay the loan, the lender can take the property and sell it to recoup the money.) If you pledge business property as security for the loan, and your business slows down (or doesn't take off) and you can't make loan payments, you may lose these valuable assets just when you need them most. Worse, if you pledge personal assets, such as your house or stock portfolio, you risk losing them to pay a business debt.

Even if you organize your business as a corporation or a limited liability company (each of which provides owners with limited liability for business debts), almost all commercial lenders will require you, as the owner of a new or small business, to personally guarantee the loan and/or to pledge personal assets to cover the loan, which wipes out this limited liability.

Accepting Investments

If you have friends, family, or other people who want to invest in your business outright (become part-owners) instead of simply lending you money, you can raise money for your small business this way too. However, allowing people (called equity investors) to own part of your business comes with its own set of advantages and disadvantages.

Advantages of Equity Investors

First, there's a good practical reason to take investments: Raising money through equity investors allows you to use your cash to pay business startup expenses rather than large loan payments. And unlike a loan, if your business loses money or goes broke, you probably won't have to repay your investors their initial investment. As long as you've thoroughly disclosed the risks involved in your business, your investors should understand and accept that they are not guaranteed to get their money back.

Further, investors often have business experience and can offer you valuable advice, moral support and assistance.

Disadvantages of Equity Investors

On the downside, equity investors usually end up taking a larger share of your business's profits than a bank or other lender. (Since an investor is at a greater risk of losing his or her investment, you have to compensate the investor for this risk with a bigger payoff.)

In addition, your investors will be co-owners, and they have a legal right to be informed about all significant business events, as well as a right to ethical management. Your co-owners can (and probably will) sue you if they feel you are compromising their rights. This means you always have a responsibility to take your investors' interests into account when you make business decisions, even if it's not what's best for you.

In some circumstances, your investors may be considered passive investors and their investment interests "securities." Dealing with securities creates a lot of paperwork, starting with securities registration, and brings a host of other legal requirements down on your head. However, not all offerings of securities must be registered with the federal and state securities exchange commissions. The following are exempted:

--private offerings to a limited number of persons or institutions

--offerings of limited size, and

--intrastate offerings.

For a quick summary of these exemptions, see the SEC website at www.sec.gov.

Summary of Loans vs. Investments

	Loans	Investments
Advantages:	The lender has no management say or direct entitlement to profits in your business.	Investors are sometimes partners or board members and often offer valuable advice and assistance.
Your only obligation to the lender is to repay the loan on time. Loans from close relatives can have flexible repayments terms.	You can be flexible about repayment requirements.
Interest payments (but not principal payments) are a deductible business expense.	If your business loses money or goes broke, you probably won't have to repay your investors.
Disadvantages:	You may have to make loan repayments when your need for cash is greatest, such as during your business's startup or expansion.	Equity investors require a greater share of your profits than interest on a loan.
You may have to assign a security interest in your property to obtain a loan, which may place your personal assets at risk.	Your investors have a legal right to be informed about all significant business events and a right to ethical management.
Under most circumstances, you can be sued personally for any unpaid balance of the loan, even if it's unsecured.	Your investors can sue you if they feel their rights are being compromised

Loans or Investments: Which Should You Choose?

If you're trying to finance a startup venture, it's better to seek equity investments, because you generally only have to repay investors if the business turns a profit.

For ongoing needs, loans are better for businesses with cash flow that allows for realistic repayment schedules, and for businesses that can obtain the loan without jeopardizing personal assets.

Deciding whether to borrow money or to take on co-owners can be tricky. If you don't already know a tax adviser who specializes in small business issues, it would be wise to find one. Your personal tax situation, the tax situation of the people who may invest, the terms of a potential loan, and the tax status of the type of business you plan to open are all likely to influence your choice.

Business negotiating tips

Adopt a take-no-prisoners attitude

By Marcia A. Reed-Woodard

May 2, 2007-- Sekou Kaalund, Citigroup Securities & Fund Services' head of strategy, mergers & acquisitions, and planning, says Hostage at the Table: How Leaders Can Overcome Conflict, Influence Others, and Raise Performance by George Kohlrieser (Jossey-Bass; $27.95) reveals how psychological insights and proven techniques used in successful hostage negotiations can empower anyone who feels immobilized or held "hostage" in their business and personal relationships.

"Negotiation skills are paramount to success in a business environment [because of] client, employee, and shareholder relationships," he offers. Kaalund reports that the book has helped him enhance his conflict-resolution skills and negotiate more powerfully.

His key takeaways:

• Never think like a hostage. Bolster your confidence and diminish feelings of powerlessness by identifying the choices you have and the potency you bring to bear on the negotiations.
• Bond with your enemy. Establish a connection with all parties involved in negotiations, even when you may find them despicable. Refrain from demonizing others by remembering that the people are never the problem.
• Talk your way to success. Discuss solutions that will satisfy negotiating parties. Explain how all parties can achieve their goals without undermining those of others. Don't stop talking until you've reached an amicable agreement.