Business 2K Blog Place

Hi ,

Todd Judkins here with your third bonus report. Now that we have established your Forex trading as the perfect home-based business, focus on the word “business.” It is now time to discuss what something every business has – a plan!

As a former Naval Officer I came to understand the importance of a plan through countless crisis responses, some in the news and others not. You are destined to wonder aimlessly without a plan. Your money is on the line so we will focus like a laser on a Trading Plan.

If you trade or invest I am sure you have heard the saying “plan your trades and trade your plan. Sounds simple and like a little cliché, but this is the cornerstone of all great traders. After trading with Forex Journey you will come to embraces this notion each and every day.

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CREATING A WINNING TRADING PLAN
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Successful Forex trading is a lot like life. You a likely to get what you want if you have a plan to obtain it. What sets Forex Journey aside is that we incorporate these self-mastery skills directly into our plan. More on that later…

Here is a simplistic plan for trading the Forex market.

1. Define the currency pairs you will trade
2. Master a strategy to get you into a trade
3. Master a strategy to get you out of a trade
4. A system for managing your account and managing risk
5. Become aware of your strengths and weakness as a trader

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STEP ONE - DEFINE CURRENCY PAIRS
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Unlike stock traders who have over 60,000 stocks to choose from, you can define your currency pairs down to a handful. As a new trader we recommend that you just stick to one currency pair and learn it like the back of your hand. With experience you can start to incorporate more and more currency pairs. I have been doing this for some years and basically only trade 8 pairs, with a deep focus on just 5.

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STEP TWO – MASTER YOUR ENTRIES
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This is when trading currency get fun! We will teach you the techniques of the pros for evaluating a currency and picking the optimum entries based on your trading style and personality. We do this online in our trading room everyday!

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STEP THREE - MASTER YOUR EXITS
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Predefining your exit points and letting your profits run are the skills of experienced traders. It is said, anyone can get into a trade, but only professionals know when to get out. This is where having your currency coach online will really accelerate your learning curve!

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STEP FOUR - MONEY MANAGEMENT
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Understanding how to properly manage your account will eventually determine your long term profit or lose. This is where the mustard meets the road! How much to risk? Can I afford the trade? Does it have an acceptable reward-to-risk ratio?

You are better off with a shaky strategy and solid money management skill than vice versa. Just because a trade looks good to me means it should also look good to you! Understanding this difference will turn you into a profitable trader overnight!

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STEP 5 - SELF MASTERY
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Most plans end after step 4, not us. Understanding that there is a person who must execute steps 1-4 is critical, even if you are trade a computer-based program. Without a discipline and aware trader behind the wheel, this ship will go nowhere.

Everything you do without thought is done by your subconscious thoughts. You breathe and your heart pumps without your conscious thoughts. Now imagine Forex trading with this same effortless approach – this is the Forex Journey way. It takes patience and perseverance. In the end you will be instilled with the thoughts and actions of great traders. All this is a part of your training at Forex Journey.

“Assume the feeling of the wish fulfilled. ~ Neville Goddard”

This is how we trade . Did you know you can also follow our blog at:

==>http://forexjourney.blogspot.com

Next Time…

In the coming issue you’ll learn…

***The Currency Pairs
***Correlations

Warm regards,

Todd Judkins
Founder and Lead Currency Instructor
ForexJourney.com

P.S. - You don’t even have to take my word for the quality of training you’ll receive. Listen to what one of our students had to say: “I am extremely satisfied from the instruction I have received from Forex Journey. I anticipate making a lot of money using your approach. You really got me out of my own way and thinking like a trader now!- Mark Davies”

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Copyright 2007 - ForexJourney.com & Judkins Group LLC- All Rights Reserved.
ForexJourney.com is owned and operated by:
Judkins Group LLC
3225 McLeod Drive, Suite 100
Las Vegas, NV 89121-2257
USA

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***** DISCLAIMER *****

Disclosure: We are not an investment advisor, financial planner or registered broker. We provide real-time market analysis and educational services for traders. You accept all liability resulting from your trading decisions. Forex Journey is an educational website designed to deliver foreign exchange (Forex) training to member students. The information presented with the website is for educational purposed only. This information is not a recommendation to purchase, sell or hold foreign currencies. Trading foreign exchange (Forex) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. The information contained here was gathered from sources deemed reliable; however, no claim is made as to its accuracy or content.

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

Hi,

Todd Judkins here, on the behalf of everyone here at Forex Journey would like to say thank you for signing up for our video newsletter.

As a special bonus please enjoy our 12-part series on what it takes to trade the Forex market for profit! Over the next several days you will be receiving valuable information on currency trading … enjoy!

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BUILDING A FIRM FOUNDATION IN FOREX
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Starting with a firm foundation to your learning and later trading sounds very reasonable doesn’t it? Even so, most people never even consider this principle. In fact, most people who want to trade the Forex market go about carelessly. Talk about risk!

There is nothing riskier than trading without a plan or without the proper training. Nothing unusual about that…starting any business without a plan is the same thing.

I teach my students to that a complete trading plan involves 3 key areas:

1. Strategy – you must learn how to evaluate the market to determine entry and exit points. Most people stop here and wonder why success eludes them. Their plan is not complete!

2. Money Management – you must learn how to control risk or risk will control you and end your forex trading business fast! I would rather have a solid money management plan with a terrible strategy than an awesome strategy with weak money management skills.

3. Personal Self-Mastery – you must know yourself as a trader in order to execute strategy and money management for the explosive wealth building promised in Forex. Ultimately your success will hinge upon your ability to control yourself and your emotions.

My students learn to practice trading in a demo account, just like driver’s school. Once they can show that they know how to profitably manage their demo account it is on to live trading! It’s all about learning the process of Forex trading.

We recommend no matter how much funds you have set aside for trading, when you begin real money trading start with a small amount in a mini-account until you have proven you can grow and manage this account. And then we will show you how to supercharge your wealth building!

But, still there are advertisements all over the place claiming that someone will teach you the one secret that no one else knows. The one secret that will provide instant profits in Forex.

**hey, the only Holy Grail of trading is the one you make for yourself! **

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BEFORE WINNING, BE WILLING – IT’S ALL ABOUT THE PROCESS
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Look, if you are serious about making big money in the Forex market then get serious about learning to do it right. You must be willing to follow the steps, willing to practice, willing to learn from others.

Most importantly you absolutely must be willing to find your trading personality and follow a plan!
This is the Holy Grail!

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WHAT IS A TRADING PLAN?
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Simply put, a trading plane is a set of guidelines and rules that help you to overcome the emotions of fear and greed when it comes to trading. It lays out your Process of Forex Trading and includes elements of the 3 key areas.

Further, a good trading plan has rules that cover every possibility once you are in the trade. It is a roadmap to profits. Anyone without a trading plan is destined to fail!

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WHERE DO I FIND THESE TRADING RULES?
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Well, if you’re lucky and patient enough you can learn them in the “school of hard knocks” like I did, or you can learn them online at with Forex Journey…

***The value off step-by-step live instruction can’t be underestimates See our charts, hear our voices as you learn live in the Forex market. We can’t provide this service for thee prices much longer. ****

Join now and your membership price will never go up!
Action is always rewarded.

See for yourself:
http://www.forexjourney.com

Next Time …

In the coming issue you’ll learn…

***Why trading is the greatest home business.
***How to achieve results in the Forex Market.
***How to benefit from controlling $10,000 with only $1.

You’re on your way! I’m going to do my very best to explain the Forex Market and how to trade it during our weekly visits through this newsletter series that supplements the Forex Journey Video Newsletter.

Trading Forex is an exciting and satisfying way to produce extra income. This may be the beginning of a whole new world for you.

Warm regards,

Todd Judkins
Founder and Lead Currency Instructor
ForexJourney.com

Hi,

Todd Judkins here, and I have quick question for you. Have you always wanted to work out of your home? I don’t know about you, but when I work from home and have the freedom to control my hours the quality of my life soars astronomically.

I spend more time with my family, playing golf, generally anything I want.

I call it THE GREATEST HOME-BASED BUSINESS!

In today’s economy the need for a good paying home-based business is greater than ever and increasing every day. The move to a more service and development based economy has created great change and strain in the workplace.

Layoffs, outsourcing, life-style changes and technology have ushered in uncertainty and often times means that having a second or even a third source of income is necessary just to make ends meet and provide for our futures.

Gone are the days of being hired by a company, working and progressing through the ranks for 20-30 years and retiring to a nice sustainable pension. Now the onus is on us to provide our own retirement income and secure our financial future.

Since the 1990s staying in the same industry is a luxury fewer and fewer people know and there has been an explosion of home businesses being advertised, from stuffing envelopes to network marketing.

Are all these home based businesses profitable? Are they even right for you? If you had to develop a wish list of the benefits of a home business I imagine it would look something like this:

Unlimited profit potential
Fast start up time
No employees to manage
No insurance cost
No inventory to manage
No selling
No creating a down line for income
No advertisement or marketing budget
No outside office
Work from anywhere (including the beach!)
Small time commitment
Small start up cost

In other words, you want your cake and eat it too!

Given these requirements, what business could possible meet all of these requirements?

Let me introduce Forex Trading!

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LEVERAGING YOUR MONEY
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For most, money is tight. When you transition into becoming a professional trader leveraging your money will provide the acceleration you require. There is a learning curve every trader must overcome. Leverage is both good and bad. It can help and hurt a trader. Your goal is to build your skill trading in a virtual account while you gain the confidence to trade the Forex market and manage the risk associated with leverage. The greatest risk is not being properly prepared to trade this market.

Once you have the necessary skill, you can slowly begin trading real money and designing the life you deserve. Your requirement consists of patience and perseverance.

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SMALL BUT POWERFUL
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Currencies are traded in lots. In a standard account 1 lot controls $100,000 in currency and in a mini account 1 lot controls $10,000 in currency. So, for a mini lot $1 controls $10,000. When the price of a currency moves up one increment (called a pip) you have a potential profit of $1. The average currency pair moves 75+ pips per day.

Example: If you have a mini account and buy 1 lot of Euro/US Dollar (EUR/USD) and the pair moves up 10 pips your potential profit on the trade is $10.

Now there a more to the mechanics than this simplistic example, but you get the idea. This is an extremely powerful skill and requires education and training to learn to profit from it.

Also, don’t forget that the Forex market is open 6 days per week 24 hours per day. It will be there when you are!

Now is your time to learn this financial skill. Click below to find out how:
http://www.forexjourney.com

Next Time…

, in the coming issue you’ll learn…

***Creating a winning trading plan
***The Forex Journey approach to currency trading

“Thank you! I wish I found this 3 months earlier, that would have saved me a fortune. Thanks Todd, you’re the best! ~ Ingrid Vemeiren”

Warm regards,

Todd Judkins
Founder and Lead Currency Instructor
ForexJourney.com

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Copyright 2007 — ForexJourney.com & Judkins Group LLC– All Rights Reserved.
ForexJourney.com is owned and operated by:
Judkins Group LLC
3225 McLeod Drive, Suite 100
Las Vegas, NV 89121-2257
USA

Titling assets is an important aspect in coordinated estate planning, but it is only the first step. The real key is to determine the clients’ objectives. Do they have goals for passing assets to the next generation, or is a charitable beneficiary of primary importance? Because defining these goals is not easy, many clients fail to act. The result is that they die without setting down any formal instructions, that is, they die intestate. The ultimate aversion in planning is dying without stipulating how assets are to be disposed. Because these individuals fail to write down what they want to happen, the state-or states-decides.

A classic example is Howard Hughes. In his case, numerous individuals attempted to obtain a piece of the action. The states of California and Texas litigated to gain jurisdictional control of the estate for purposes of collecting inheritance taxes. With proper estate planning, much of the delay and expense, as well as publicity, could have been avoided.

The Hughes case also illustrates the importance of the state of domicile or jurisdictional control. (Domicile is typically defined as a person’s permanent home, not necessarily one’s current physical residence). The state of domicile will determine who inherits and the rate of tax on the individual’s personal property, regardless of its physical location. This alone is an extremely pertinent question, because states levy taxes at different rates. Some states have significantly higher inheritance or estate taxes than others.

Real property-meaning real estate-is subject to the laws of the state in which it is located. For other property, this is not so clear-cut, and with overlapping state laws come increasing complications and costs. Usually, personal property is subject to the jurisdiction deemed to be the domicile of the deceased.

More important in this context, it is unwise for clients to rely on any state to distribute their assets. State-recognized beneficiaries may not be those the client would have chosen. Without planning, the deceased’s assets could be divided as follows: one third to the surviving spouse and two thirds to the surviving children. This could unintentionally place the assets in the hands of someone unable to manage them. And, if no relatives can be found, the assets will escheat, or pass to the state. Few clients would knowingly give their assets to the state. But without a will and heirs, that is just what can happen.

Again we need to distinguish between the short run and the long run, but the distinction is different here. The short run for the industry is defined as a period of time too brief for new firms to enter the industry or for old firms to leave, so the number of firms is fixed. By contrast, the long run for the industry is a period of time long enough for any firm that so desires to enter (or leave). In addition, in the long run each firm in the industry can adjust its output to its own long-run costs.’ We begin our analysis of industry equilibrium in the short run.

With the number of firms fixed, it is a simple matter to derive the supply curve of the competitive industry from those of the individual firms. At any given price, we simply add up the quantities supplied by each of the firms to arrive at the industrywide quantity supplied. For example, if each of 1000 identical firms in the corn industry supplies 45,000 bushels when the price is $6 per bushel, then the quantity ] supplied by the industry at a $6 price will be 45,000 bushels per firm x 1000 firms = I 45 million bushels. I

This process of deriving the market supply curve from the individual supply curves of firms is perfectly analogous to the way we derived the market demand curve from the individual demand curves of consumers. Graphically, what we are doing is summing the individual supply curves horizontally, as illustrated in Figure 25-5. At a price of $6, each of the 1,000 firms in the industry sup- , plies 45,000 bushels (point c in part [a]), so the industry supplies 45 million bushels E (point C in part [b]). At a price of $8, each firm supplies 50,000 bushels (point e’ in part [a]), and so the industry supplies 50 million bushels (point E in part [b]). Similar calculations can be carried out for any other price. This adding-up process indicates, incidentally, that the supply curve of the industry will shift to the right whenever a new firm enters the industry

The supply curve of the competitive industry in the short run is derived by summing [lie short-run supply curves of all the firms in the industry horizontally.

Notice that if the short-run supply curves of individual firms are upward sloping, then the short-run supply curve of the competitive industry will be upward sloping, too. We have seen that the firm’s supply curve is its marginal cost curve (above the level of minimum average variable cost), so it follows that rising marginal costs lead to an upward sloping short-run industry supply curve.

To discover what happens in a market in which perfect competition prevails, we must deal separately with the behaviour of the individual firms and the behaviour of the industry that is constituted by those firms. One basic difference between the firm and the industry under competition relates to pricing. We say that:

Under perfect competition, the firm is a price taker. It has no choice but to accept the price that has been determined in the market.

The fact that a firm in a perfectly competitive market has no control over the price it charges follows from the definition of perfect competition. The presence of a vast number of competitors, each offering identical products, forces each firm to meet but not exceed the price charged by the others. Like a stockholder with 100 shares of General Electric, the firm simply finds out the prevailing price on the market and either accepts that price or refuses to sell. But while the individual firm has no influence over price under perfect competition, the industry does. This influenc. is not conscious or planned-it happens spontaneously through the impersonal forces of supply and demand, as we observed in Chapter 4.

With two important exceptions, the analysis of the behavior of the firm under perfect competition is exactly the same as that pertaining to any other firm. The two exceptions are the special shape of the competitive firm’s demand curve and the effects of freedom of entry and exit on the firm’s profits. We will consider them in turn, beginning with the demand curve.

Assumed that the firm’s demand curve sloped downward; if a firm wished to sell more (without increasing its advertising or changing its product specifications), it had to-reduce the price of its product. The competitive firm is an exception to this general principle.

A perfectly competitive firm has a horizontal demand curve. This means it can double or triple its sales without any reduction in the price of its product.

How is this possible? The answer is that the competitive firm is so insignificant relative to the market as a whole that it has absolutely no influence over price. The farmer who sells his corn through an exchange in Chicago must accept the current quotation his broker reports to him. Because there are thousands of farmers, the Chicago price per bushel will not budge because Farmer Jones decides he doesn’t like the price and holds back a truckload for storage.

Basic supply-demand analysis can be used to explain both how externalities lead to environmental problems and how these problems can be cured. As an illustration, consider the damage that massive generation of garbage does to our environment. be comparably high . For the community depicted in the graph, the price of garbage removal will be P dollars per ton, and 10 million tons will be generated (point A).

But what if the community’s government decides to remove garbage “free”? Of course, the consumer still really pays through taxes, but not in a way that makes each person pay for the quantity of garbage that he or she produces. The result is that the supply curve is no longer SS. Rather it becomes the blue line TT, which lies along the horizontal axis, because any household can increase the garbage it throws away at no cost to itself. Now the intersection of the supply and demand curve is no longer point A. Rather it is point E, at which the price is zero, and the quantity of garbage generated is 25 million tons-a substantially greater amount.

Similar problems occur if the community offers the oxygen in its waterways and the purity of its atmosphere without charge. The amount that will be wasted and otherwise used up is likely to be enormously greater than it would be if users had to pay for the cost of their actions to society. That is a key reason for the severity of our environmental problems.

The magnitude of our pollution problem is attributable in large part to the fact that the market lets individuals, firms, and government agencies deplete such resources as oxygen in the water and pure air without financial charge.

It follows that one way of dealing with pollution problems is to charge those who emit pollution, and who despoil the environment in other ways, a price commensurate with the costs they impose on society.

Money is so much a part of our day-to-day existence that we are likely to take it for granted, failing to appreciate all that it accomplishes. But it is important to realize that money is very much a social contrivance. Like the wheel, it had to be invented. The most obvious way to trade commodities is not by using money, but by a system in which people exchange one good directly for another. And the best way to appreciate what monetary exchange accomplishes is to imagine a world without it.

Under a system of direct barter, if Farmer Jones grows corn and has a craving for peanuts, he has to find a peanut farmer, say, Farmer Smith, with a taste for corn. If he finds such a person (this was called the double coincidence of wants by the classical economists), they make the trade. If this sounds easy, try to imagine how busy Farmer Jones would be if he had to repeat the sequence for every commodity he consumed in a week. For the most part, the desired double coincidences of wants are more likely to turn out to be double wants of coincidence, where Jones gets no peanuts and Smith gets no corn. Worse yet, with so much time spent looking for trading partners, Jones would have far less time to grow corn. Thus:

Money greases the wheels of exchange, and thus makes the whole economy more productive.

Under a monetary system, Farmer Jones gives up his corn for money. He does so not because he wants the money per se, but because of what that money can buy. Money makes his shopping tasks much easier, for it allows him simply to locate ‘a peanut farmer who wants money. And what peanut farmer does not? For these reasons, monetary exchange replaced barter at a very early stage of human civilization, and only extreme circumstances, like massive wars and runaway inflation’s, have been able to bring barter (temporarily) back.

Bankers have a reputation, probably deserved, for conservatism in politics, dress, and business affairs. From what has been said so far, the economic rationale for this conservatism should be clear. Checking deposits are pure fiat money. Years ago, these deposits were “backed” by nothing more than the bank’s promise to convert them into currency on demand. If people lost trust in a bank, the bank was doomed.

Thus, it has always been imperative for bankers to acquire a reputation for prudence. This they did in two principal ways. First, they had to maintain a sufficiently generous level of reserves to minimize their vulnerability to runs. Second, they had to be somewhat cautious in making loans and investments, since any large losses on their loans would undermine the confidence of depositors.

It is important to realize that banking under a system of fractional reserves is an inherently risky business that is rendered relatively safe only by cautious and prudent management. America’s continuing history of bank failures bears sober testimony to the fact that many bankers have been neither cautious nor prudent. Why? Because this is not a recipe for high profits. Bank profits are maximized by keeping reserves as low as possible, by making at least some risky investments, and by giving loans to borrowers of questionable credit standing (because these borrowers will pay the highest interest rates).

The art of bank management is to strike the appropriate balance between the lure of profits and the need for safety. When a banker errs by being too stodgy, his bank will earn inadequate profits. When he errs by taking unwarranted risks, his bank may not survive at all. Many banks have perished in the latter way in recent years, especially in the savings and loan industry.

A second forecasting method, pioneered at the National Bureau of Economic Research, exploits observed historical timing relationships through the use of certain that have in the past given advance warning of economic events.

For example, the stock market is a leading indicator because stock market downturns normally begin several months before downturns in industrial production. Why does this happen? Does the decline in the stock market cause economic downturns by reducing consumer spending? Or are both the stock market and industrial production just reacting to some other influence, with the stock market’s reaction coming sooner? Certainly these are fascinating questions. But the answers may not be crucial to a forecaster if the stock market continues to be as good a leading indicator of industrial production in the future as it has been in the past. In that event, we will be able to make use of the observed relationship between stock prices and industrial production for forecasting even if we do not entirely understand its origins.

As it turns out, however, excessive reliance on any single leading indicator produces an unimpressive forecasting record. An obvious solution is to look at many indicators. But once we start to do this, we will often receive conflicting signals. If one indicator is rising rapidly while another is falling, what are we to do?

One way to resolve this conflict is to form an average of several leading indicators. For example, every month the news media report the latest reading on the Commerce Department’s composite index, which is a weighted average of 11 of their leading indicators. The agreement is usually quite good. The leading indicators occasionally call for a recession that never comes (as in 1966), and occasionally they give clear early warning signals of a downturn (as in 1973 and 1979). But often movements of the leading indicators are followed so closely by movements in real gross national product that the advance warning they provide comes too late to be of much use to policymakers.

Key questions include: What segments of need exist in the market? What gaps exist in the competitive need fulfillment? What are the dynamics of the need segments? What bothers customers? What benefits are desired? What are the strengths/weaknesses?

Several research techniques can be used. In a focus group, a skilled moderator leads small groups of consumers/customers from the target market in a discussion of problems, needs, product concepts, competitive brands, and new ideas.

For market structure analysis/gap analysis, quantitative research is designed to cluster product attributes/benefit perceptions into basic dimensions, determine distance between basic groups, and identify groups where needs are not being satisfied. It is multidimensional research that structures a market on the basis of products, needs, and usage occasions with the objective of defining and understanding the dynamics of a market beyond traditional secondary data sources. It answers questions such as: What are the products in the market and how do consumers react to them? How are the products used, by whom, when? Which products compete/substitute for each other? What product attributes lead consumers to use the products in the way they do?

Problem detection studies are quantitative surveys to define problems in a category and rank them based on intensity (how bothersome are they?), frequency (how often do they occur-and for how long?), preemptibility (the extent to which products/services already on the market can handle the problem).

Task analysis is a technique involving actual observation or recall to identify steps involved in a project (baking bread, selecting and opening a bank account, mowing the yard, painting the house) and problems encountered. A consumer might be asked to list all tasks involved in a project (with an incentive to get a quantity of tasks), whether it was a pleasant or unpleasant task, why they feel that way, and whether they would like to see it simplified or changed.