Fellow traders. Happy to meet you here.

To start with it doesn't matter if you are a seasoned trader already or if you are a beginner. I believe this series of articles will be useful for all traders no matter how long they have been active in the markets or what they trade and feel comfortable trading.

What I am planning to discuss here is generally what products are out there that you can trade and what to remember concerning each product. So let's begin.

Stock trading

Probably something most of you guys are familiar with. Trading stocks is trading part ownership of a company. This is normally done on standard exchanges but also OTC trading exists especially if traders want to execute larger trades. Stock trading is hugely popular around the world and is a huge market. Volatility is usually low but certain sectors can volatile and more risky like biotech and tech companies. Also penny stocks can move by a huge percentage in a day so remember that.

Forex or FX trading

Foreign exchange trading is one of the biggest markets around the world and goes on 24/7. London has established itself as the leading centre in foreign exchange trading but New York, Singapore, Hong Kong etc are also fairly big. Much of the forex trading is done online so no physical locations are needed in many cases. Some currency pairs as they are called (EUR/USD, GBP/EUR) are more volatile than others and thus involves more risk.

Bond trading

Bond trading has only recently become available to the greater public. Even now though only a handful of online brokers offer this product. Bond trading means trading debt of some sort. It can be corporate debt which often pays higher yield or it can be treasuries issued by nations which are considered less risky.

Commodity trading

This has picked up also quite a bit since there are more online brokers providing a chance to trade commodities now than there used to be. Most of the times when you trade a commodity though as a small investor you don't actually trade physical commodities but a financial contract instead with financial settlement instead of actually receiving a large amount pork bellies for example. Also a large amount of commodity trading is done through CFD (contracts for difference) instead of futures nowadays.

Derivatives trading

This mostly means options trading and there are many online brokers offering this service already. Options can be risky please be careful using them. At the same time though they can be hugely helpful in any investment portfolio either as a speculative bet or as a hedging tool.

Invest in a Truck Tracking System for Your Business

Have you heard of all the ways that a truck tracking system can benefit your business? In this day and age, it is very important to invest in equipment that will increase your business by improving your how efficiently it runs and how well your vehicles are being tracked and monitored. One of the best ways to monitor your transportation fleets is to invest in a state of art truck tracking system. You can save thousands of dollars each year by improving how your vehicles are and employees are monitored.

You can reduce some of your operating expenses by lower the amount of money that is being spent on fuel. With the right truck tracking system, you can keep track of when your vehicles are in need of servicing. By reducing idling times, monitoring your employees so they adhere to the traffic ordinances and drive at the proper speed limits, you can save a significant amount of money. You can also keep track of your employees and put an end to unauthorized personal use of your company's vehicles.

With so much focus being placed on how beneficial it is to become a greener and environmentally friendly business, you can use your truck tracking system to do so.

Remember, more accountability means your vehicles can be more efficient in the way they burn fuel and how they are used. Cut back on the amount of money you need to spend on labor. By remotely monitoring your employees, you can find where there is abuse in the clocking system and prevent overpayments. Instead of paying your employees for work they did not perform but are claiming they did because there wasn't a way to monitor them, you can reduce much of your operation expenses.

The right surveillance system can allow you to increase your profits. By observing where your time is being lost or wasted and reducing unauthorized personal time, you can schedule more deliveries and shipments and increase productivity. This will result in an increase of business and profits.

Improve your customer response time. Instead of not knowing where a certain shipment is when your client is inquiring about the status, you can provide them with up to the minute information about their orders. This will increase the strength of your customer- client relationship and keep your clients loyal. This will also make it much easier for you to determine where there are deficiencies so that improvements can be made as well.

Having a truck tracking system on each of your vehicles can also increase safety for your employees and security for your merchandise. Negligent behavior can be nipped in the bud and more time efficient and safer routes can be implemented. Proper supervision is the key to owning and operating a successful business. The better your vehicles are equipped, the better and more efficiently your productions and shipment will be. You business can grow and your profits will increase.

How to Write a Logistics Business Proposal

Do you work in the field of supply chain management, ensuring that goods move efficiently from the manufacturer to the buyer? Or perhaps you oversee just one part of a logistics chain, running a packaging or warehousing or transportation business.

No matter whether you're in charge of the whole chain or just one link in it, the success of your business depends on a steady flow of goods and a list of dependable, steady clients. Which means that, sooner or later, you will need to secure new contracts to maintain or--even better--to grow your business.

You can probably attract the attention of potential clients with basic brochures and a good website. But to actually land a contract or pitch a project, especially a big one, you will need to write a business proposal explaining how your operations can benefit the client or your company.

Writing a proposal is not difficult. You have one goal--to persuade your potential customer or partner that you can fulfill their needs or help them take advantage of an opportunity. The best way to do that is not to start off by bragging about yourself, but to frame the discussion in terms of your client's needs or goals, and explain how you can meet them for everyone's benefit.

Let's work from the front to the back of a typical proposal. First, you need a Cover Letter to introduce yourself and explain why you're sending a proposal now, and to provide your contact information. Then you need a Title Page to go on top of your proposal. Choose a descriptive name, like "Warehousing Opportunities for FGH Corporation," "Proposal to Streamline Supply Chain Operations," or "Efficient Packing and Shipping with ABT Services." Next, you may need a Table of Contents or an Executive Summary (a list of your most important points), but you can come back and insert these after you've written the first draft if you like. These few pages form the introduction section of the proposal.

In the next section, you should describe the needs or the opportunity, as well as any requirements. To do this, put yourself in your potential client or partner's position. What do they want or need? The ability to move goods from manufacturers to customers without intermediate warehousing? An efficient inventory control system that automatically orders products as they are sold? What are their goals or their problems? Do they have a backlog of orders they can't fill fast enough? Do products get damaged in shipping because of shoddy packaging or incompetent handling? Or are they missing an opportunity to make operations more efficient or to expand their product line?

Whatever your potential client's problems, needs, or opportunities, state them up front. Do a little research if you need to; it will pay off with a more successful proposal. Pages in this section will have titles like Needs Assessment, Opportunities, Challenges, Goals, and so forth.

After you've described the needs, goals, and/or opportunities, you'll write a section explaining how you propose to satisfy those needs, help the client meet those goals, and take advantage of those opportunities. Topics included in this section will be specific to the project you have in mind. You may want general topic pages, like Process Summary or Project Plan, as well as a Cost Summary and a page describing the Benefits of using your plan.

If you're in the shipping business, you might need more specific pages with titles like Handling, Shipping, Import/Export, Global, Transportation, Routes, Warehousing, Logistics, Supply Chain, Channels, Vessels, Reverse Logistics, Delivery Details, and so forth. If you're in the warehousing business, you might have pages describing your Facilities or your Inventory Management system. Others might need topics like Purchasing, Procurement, Receiving, Requisitions, Returns, Customer Service, or Scheduling. Just pick all the topics you need to explain in detail what you propose to do and how it will benefit your client.

After you've described what you can do for the client, you need to convince the client that you are the right party to do for the job. In the final proposal section, you'll describe your Company History or provide an About Us page, highlight your Experience and other Clients Served, explain any special Certifications or Training that are important, and include any Awards or Referrals or Testimonials you have received from others. If you offer a Guarantee of satisfaction, add that, too. Your goal is to conclude your proposal by convincing the reader that you can be trusted to follow through on all the promises you made in the earlier section.

So now you can see the structure of a business proposal--introduction; statement of needs, problems, or opportunities; description of how your services will meet those needs, solve those problems, or take advantage of those opportunities; and a description of why you are the best pick for the job.

After you've written the first draft, hire someone to proofread each page. If your proposal contains a lot of punctuation and spelling errors, the reader may conclude that you are just as sloppy in your business practices. Take the time to make the pages look attractive, too. Consider using splashes of color in page borders or logos, and/or using special fonts or bullet points. These graphic touches can help a proposal stand out from the competition. When your proposal is perfect, send it out, and then be sure to follow up in a few days to make sure your potential client received that package and ask if there are any questions.

Using a pre-designed proposal kit can make your proposal writing project go much more smoothly. A proposal kit will come with pre-written and formatted topic pages, including all those mentioned above. Each topic page in a good proposal kit will have suggestions and examples of information to include for that topic--that's a big head start over a blank page, and it helps to ensure that your proposal will be thorough. Make sure to use a proposal kit with comprehensive sample proposals too--these are great for giving you ideas about the contents and the look of a finished proposal.

Important Facts About the Oil and Gas Industry

The oil and gas industry is one of the considerably changing and most important global industries all over the world. Oil and gas both are obtained from under the surface of earth. These energy sources are considered as the most useful natural resources.

The industry has touched every sphere of human life. With the arrival of technological development and explorations, the demand of gas and oil industry is increasing at a rapid pace. Around 60 to 70 percent global economic growth depends on this industry. Oil and gas are expected to remain the leading energy resources for decades to come.

The industry uses the following processes:

· Exploration process is involved in the formation of oil and gas

· Entire production and development of crude oil or natural gas

· Transportation

· Retailing and end users

Every industry has its unique challenges, terminology and methodologies. This industry includes both offshore and onshore energy sectors located in various parts of the globe.

Oil and gas industry typical applications

· Distribution of the fuel

· Wellhead control on Sub-sea

· Research on renewable resource

· Proper management of asset

· Conversion of Advanced protocol

· Downhole submersible pump monitoring and pressure temperature gauges

· Flow metering on Multi-phase (gas, oil, sand, water)

The oil and gas industry establishes the course to explore the oil well at the right locations and dig out gas and oil effectively. These sources are found deep inside the earth and proper procedure must be carried out at the specific location. The entire process involves a lot of money which is the major reason for the price hike in this industry. The prices of the oil and gas can be controlled somewhat by lowering production cost.

There are some major companies which are dealing in this industry such as Shell, BP, ConocoPhillips, Chevron, Total S A and ExxonMobil. Russia, USA, Iran, China, Russia are the major producers of oil all over the world.

There are several numbers of companies which are spending billions of dollars to maintain and increase the production and development of oil & gas. Maintaining the exploration process in an apt manner is very important for the growth of oil & gas industry.

These days, this industry is setting up some new policies and technologies to meet the upcoming demands and deal with the environmental issues. Production and exploration companies especially focus on finding hydrocarbon reservoirs, gas wells and drilling oil and selling and producing these materials. This entire process comes under the category of upstream gas and oil activity.

How to Trade Bonds and Bank Bills

Bank Bill Rates and Government Bonds

As well as stock trading, it can be useful to consider trading fixed income securities such as bank bills, government notes and government bonds (e.g. US Treasury notes and bonds). The difference is that bank bills have a maturity of less than one year, government notes are between one and ten years, and government bonds are greater than ten years. The definitions of each can be found externally, but when trading a futures contract over them, their coupons etc become less relevant.

Bank Bill Rate

The first important thing is why the price that you see in your trading screen is what it is. Bank bills are quoted as 0.95 (or 9550), and this is because the expected interest rate when that futures contract expires is 5% (one minus the price quoted in the screen equals that expected rate). So if rates are currently 4%, and the futures expiring next month are priced at 0.9575, traders expect interest rates to rise to 4.25% upon the next announcement (rates are normally increased or decreased 0.25% at a time). An overview of bank bill futures may look like this:

Expiry month

Price

Implied rate

Explanation

February

0.961

3.9%

Slight chance of cut from 4% to 3.75% in Feb

March

0.965

3.5%

Two rate cuts expected by March

June

0.96

4%

Rates to be back to 4% by June

September

0.958

4.2%

Good chance of rate rise to 4.25% by September

December

0.955

4.5%

Two rate rises by December

Government Bonds

Government notes and bonds are also traded through futures contracts, and their price is dependent on their current yield to maturity (rather than current interest rates). To some extent, the yield reflects the average interest rate over the life of the bond. The futures contracts still expire periodically, but these can be rolled over (replaced with a new contract), unlike bank bills where the price does not change in between the interest rate announcement and the expiry of the contract later that month. With the bank bill, you would simply purchase a new contract expiring in a future month, and trade based on how you think interest rate expectations will change in between now and the next announcement.

The prices of all of these contracts rise when interest rate expectations fall, i.e. during recessions with low inflation, and the prices fall when expectations rise, i.e. during periods of strong economic growth and higher inflation. This inverse relationship between prices and yields is the most important thing to remember when trading them. Additionally, the longer the note/bond has until maturity (e.g. 20 or 30 year bond), the greater the change in interest rate expectations will change the price. This means that 30 year bonds change the most when economic data changes rate views, and one year notes change the least. This is known as duration, which is a topic that can be explored in-depth at another time.

Trading these interest rate securities can be based on whether interest rates will be held/cut/raised, economic data will be good/bad or whether a sudden surge of demand will force prices to increase. They offer, as their name suggests, far better exposure to rate changes and expectations that stocks do, and should therefore be considered in most trading portfolios.

Hedging Your Floating Rate Mortgage

Can you hedge your mortgage rate?

So you've gone for the floating mortgage rate. Seems cheaper at the time, right? In Australia, floating mortgage rates are around 6.6% and 7.6% for a fixed mortgage rate. Over in the US, the mortgage rates are more like 2.6% for a floating mortgage rate and 3.6% for a fixed mortgage rate. Firstly, yes us Australians appear to get a raw deal, and should move overseas. Everything about the cost of living in America has convinced me of that. But secondly, it doesn't take long (potentially just a few months) for your new floating mortgage rate to be equal to the fixed mortgage rate when you originally signed up.

There is no foolproof way of hedging your floating rate, and ensuring that your lower, starting rate is locked in for life. If there was, it wouldn't be offered to you. However, there are a couple of things that you can do in order to help to protect yourself from any future rate rises that are decided upon by those that already claim your taxes and jobs (for those public servants). They both involve trading products, and an element of risk, but can significantly cancel out rate rises if the maths is done correctly. Note that you would be trading futures over these products, meaning there are no coupons etc, just a capital gain or loss each day.

Mortgage Rate Hedging Strategies

1. Short sell government bonds with the same maturity as your mortgage. The price of fixed income securities, such as bonds, decreases as the interest rate associated with them rises, and the interest rate should track your floating mortgage rate, just always be a certain percentage lower. Your job is to calculate how much more your repayments will be if mortgage rates rise 0.25%. This is the amount that you want to 'profit' when the bond price falls as interest rates increase - the higher mortgage rate repayments should be offset by the profit made by shorting bonds, and if rates don't change, neither should the bond price. For those who are unsure, short selling means selling something first and buying it back later, hopefully at a lower price, therefore profiting from the fall in price.

2. Short sell bank bills around the time of the interest rate announcement (e.g. first Tuesday of every month in Australia). As with the bond example, you will profit if rates rise, and lose money (which will be offset by lower mortgage repayments) if rates fall. Rather than continuously holding a short government bond position, the price of which may fluctuate in between interest rate decisions (whereas your mortgage repayment won't), this method requires you to place a trade close to each interest rate decision, and exit the trade soon after. The other downside is that these are short-term securities (the futures may expire the month of the decision, unlike the bonds), so if there is no interest rate change, the price will change to that which reflects the ending rate (not any prediction of future rates). This may cause your profit and loss to change when your mortgage repayments do not, and so this must be factored into your calculations, and makes them more of an approximate hedge.

Neither method is a perfect hedge, but you should be able to offset the majority of interest rate fluctuations over the life of the mortgage, and most importantly keep the rate below that of the original fixed rate. In the US there are ETFs (such as PRIME ETFs) that track the government bond rate, but trading the bond itself is the easiest way of executing the trade. Always educate yourself in the trading products (feel free to ask questions here), and consider the risks before trading. Especially the wife's reaction when you explain that not only have you taken out a mortgage, but that you are using financial derivative products to help. Do not quote my name!

How to Trade Commodities Like a Real Professional

The major leagues of trading

When you trade commodities, or futures if you will, you are in the major leagues of trading. It can be fast moving, with incredible leverage. Fortunes are made sometimes in short order, but always remember, it is a double-edged sword. About 90% of all commodity traders ultimately lose, and many of them lose in a quick manner. It is the same 10% or so that consistently win, year after year. In this article, I will share with you, some of what it takes to successfully trade commodities. If you can make it into the winner's circle, you could become wealthy in the process.

Develop sound trading principles

To be successful in the world of trading, you simply must implement proper trading principles. You need to be able to make money in an up-trending, down-trending, or a non-trending market. This is achieved by utilizing proper technical analysis. As an example, always work an advancing market from the long side. Once the market starts moving in your favor, you can add to your position.

Always practice solid money management by placing a strategic stop-loss right after you enter the market. Then as the market goes in your favor, you can trail your stop-losses to ensure profits. At this point, just let the market run in your favor until the stop-loss is hit automatically. The golden rule of trading is to cut your losses short, and let your profits run. When you trade commodities, stocks, or any other venue, always follow the golden rule.

Conduct analysis and take action at the right time

It is of great importance that you properly analyze a market before entering into a position. I always check the long, medium, and short-term trends to get a perspective of where a market is technically. I also look for certain chart patterns I know have a high success rate. It is important to know, and usually follow seasonal tendencies. A secondary indicator I watch is cash basis. This is the difference between the spot cash price and the futures contract price. It simply tells you how much the cash people want a certain commodity you are buying or selling the futures contract for. After properly analyzing a market, have patience and only take a position when everything lines up in your favor.

Important traits to help you succeed

When you trade commodities, or any other trading venue, you need to have certain essential traits, or characteristics. The following is a few of the more important ones. Self reliance is critical to your overall success. You need to learn what it takes to be a winner in the world of trading. Then you must think for yourself, and not rely on others. Always follow your own convictions. Judgement is absolutely essential. You must be able to make sound trading decisions under any circumstances. Courage is a must, but at the same time, do not be reckless. Last, but certainly not least, you simply must have the ability to adapt as market conditions change. These are a few of the traits necessary to trade commodities like a pro.

Tracing The History of Crude Oil

It takes maximum effort on our part now, to realise what wonderful qualities petroleum possesses. It is a form of raw liquid oil that is highly inflammable and is pumped right out of the ground. A few years back the only oil available was what was extracted from plant crops or animal fats. Coal was used to produce gas. The rich source of mineral oil, pulsing deep in the earth was as of yet, undiscovered.

Seeps of natural crude oil are commonly found on the earth. However, the oil seeping from this is generally highly degraded and looks like tar. This oil was locally used as a crude medicine. In 1859, drillers learned to unlock the oil lying deep in the wells. Its qualities began to be discovered. In the next decade this discovery totally changed the course of the civilization on earth. At the same time natural gas also gained recognition.

Petroleum is formed from the fossils of living things over a large period of time. Producing petroleum is a detailed process which involves skills and techniques. Oil from the it reserves has to be pumped out at a specific rate which is determined by the quality of the reservoir and the viscosity of the oil. Extracting oil has to be done cautiously. Negligence in this regard can lead to clogging or collapsing the pores. This renders the oil reservoirs inaccessible from the oil wells. Pumping too fast, too slow or even disrupting pumping can cause major damage to the oil field. More wells need to be drilled to tap the full potential of the oil reserves. However, this aspect raises the production costs.

Drilling horizontal and curved wells is a widely practised method to increase production. Another method used is fracturing the oil reservoir and pumping fluids and sand into it at high pressure.

Sweet crude is crude which has a little sulphur present in it. It is also called as sour crude if the presence of sulphur is high. The reason for this is that crude with little sulphur can be easily refined with minimum effort.

As the oil industry is booming more and more people are making investments in oil. Oil investments offer people the chance to be a part of this booming industry. As it is a limited resource oil prices will continue to soar over the next few decades. Even a small oil investment today may return unlimited profits in the future.

Selling Fear in Crude Oil

We last wrote about the crude oil market in early November. At that time, we stated that the market internals did not justify the relatively high prices we were trading at and further added that we believed the $100 per barrel resistance would hold and provide a ceiling to any attempted rally. The market declined nearly 10% by the middle of December and now, here we are again back up to $100 per barrel.

As we mentioned previously, there's a distinct fear bias in the crude oil futures market that always pumps a premium into prices. This fear bias has recently been fueled by several events in Iran. First of all Iranian students stormed the British embassy in Tehran as retaliation for new economic sanctions imposed upon them by Britain. The U.S. and Canada also followed Britain's lead. Secondly, the European Union imposed economic sanctions on an additional 180 companies and individuals, prohibiting them from conducting commerce with European Union members. Finally, Iran has threatened to close the shipping lanes of the Straits of Hormuz if economic sanctions are placed on their crude oil exports.

Political games aside, the fundamental issues in the crude oil market can be seen in slackening demand as well as the weakening internal market structure. Global gross domestic product is sure to slow in 2012. The U.S. is just beginning to gain some traction and many economists feel that the best case U.S. outlook will see job growth keep up with population growth. This will leave us at historically high levels of unemployment as stabilizing the workforce will not lead to wage inflation.

The problems in Europe have yet to be dealt with. Recent, credible comments point to a European Union, "minus one small country." The European Central Bank continues to fight battles rather than implementing a strategy to win the war. The most recent example was their action on December 21st in which they lent more than $600 billion to 523 banks at an interest rate of 1%. The protection of private and corporate bank bad debt at the expense of settling sovereign debt issues is penny wise and pound foolish. Their inaction will lead to a European recession in 2012 and dampen their crude oil demand going forward.

The weakness in the EU has already begun to manifest itself in the BRIC markets. Brazil, Russia, India, and China are all slowing at a rapid pace. Their domestic stock markets have declined by an average of nearly 20% for 2011. The International Monetary Fund expects that these countries will grow by 6.1% on average in 2012. While this is more than enough to be jealous of, it still represents a decline of more than 35% from their recent high growth rates. The projected economic slowdown in BRIC countries can also be seen in other metrics including, valuations, mutual fund outflows and the implementation of easing policies as they attempt to engineer a soft landing for their slowing economies.

Reselling Gold For Profit: Buy Low, Sell High

Over one hundred and fifty years after it hit its peak, it seems the Gold Rush is alive and well. Millions of people are turning to the lucrative and exciting practice of selling gold, silver and platinum for profit as a way to supplement their income. With some training that will provide you an understanding of the industry of precious metals and how to maximize earnings, a gold reselling business can actually become a full-time revenue-earning source.

Benefits of Owning a Gold Reselling Business

Every business has its attractive features and this goes especially for a gold reselling business. This type of business is entirely different from most other business opportunities, and with this uniqueness comes many benefits.

You can have a gold reselling business completely on your own. Though you can use the assistance of other employees if you wish, you are more than capable of pursuing success in gold reselling by yourself.

This type of business helps others as well as providing you income. When sellers come to you to sell their scrap or unwanted gold, you not only take the pieces off their hands but provide them with some extra money.

A gold reselling business does not require an inventory, supplies or drawing in customers with products. This promotes low overhead costs and simplicity of operation.

You can absolutely customize your business to fit your schedule and motivation. With gold reselling you can work the hours you want, with the intensity that you want. You can even choose from a variety of gold buying and selling techniques to maximize profits and speak to your particular talents.

Gold reselling can be a very exciting business opportunity. Using some methods is like going on treasure hunts, and you never know what will be brought to you during an event. Every day is different so boredom is not a problem with this business.

Start-up Costs

Most businesses require some form of start-up costs. Gold reselling is slightly different in this area.

The majority of your work in a gold reselling business is done from home or other businesses. Some gold resellers like to rent out conference rooms or other locations for very large events, but this is mostly for well-established, experienced sellers and can be considered later.

If you intend to pay your gold sellers cash for their offerings, you will need a lump sum of available capital at your first event. Many resellers get around this by paying with checks. If you use this method you must immediately go to your local recycling center in order to collect your profits and put the money in your account so it will be available when your sellers cash your check.

There are many gold reseller resource programs available online that can provide insider tips and tools that can help you get going and see success quickly. These range in price, with the average being around $60. This is not a necessary expense, but might appeal to people who appreciate a wealth of information about any endeavor they begin.

Advertising your events can bring in far more sellers than just word of mouth. Options for appealing to eager potential sellers include Craigslist (which is free), newspaper advertisements and flyers.

Earning Potential

A successful gold reselling business can be very lucrative if you learn the basic methods and go about buying and selling the gold intelligently and cautiously. You have several options for buying and selling gold and other precious metals for profit.

One way to find gold to resell to refiners is by frequenting garage sales, flea markets and estate sales. These sources can bring surprises and amazing bargains that will give you a boost in profits quickly, and eliminate having to determine how much to offer a seller at a private event.

The way many gold resellers actually begin their businesses is to go through their own jewelry stashes to find pieces that they no longer want or need and selling those to refiners. This not only gives them immediate income, but teaches them how the process works so they can be prepared for working with sellers.

If you want to work with people and guarantee at least some gold to resell, you may be interested in hosting gold buying events. Also called "gold buying parties", these events allow people interested in selling their precious metals to come to you. You evaluate their pieces and offer them a purchase amount that you know will allow for some profit when you go to your refiner. They leave with money and you leave with gold to resell for profit.

Don't be afraid to ask friends and family if they have any scrap jewelry they do not need. You can offer them the opportunity to sell the pieces to you, which benefits them but also acts as your first few transactions to get you used to the business.

Gold reselling is a unique business opportunity in that it requires little to no training, experience or starting capital to get going. If you have access to scrap gold, silver or platinum, you can begin selling them to refiners for profit. As your operation grows you will be able to hold larger events and have bigger paydays without the same amount of effort, making this an ideal side business for already busy people just looking for a little boost in income.

The American Consumer Is Throwing in the Towel

The November Unemployment Report showed a decline in the unemployment rate to 8.6% as well as 140,000 jobs added in the private sector, which was partially offset by a decline in government payrolls of 20,000. Sounds good at first blush, private payrolls are adding jobs and the size of the government is declining. While it is encouraging, there are two major problems with accepting this at face value. First, employment is up, but not enough relative to where we should be more than two years into the economic recovery(?). Secondly, consumer spending indicates desperate behavior that is further weakening the underpinnings of this recovery.

We've discussed before that the economy needs to add approximately 125,000 jobs per month just to keep up with population growth. This month's net number of 120,000 still leaves more people unemployed in the long run. The reason the official unemployment rate dropped to 8.6% is primarily due to the 317,000 people who haven't actively looked for a job in the last four weeks and have therefore, fallen off of the unemployment report. Had those people sought employment, the continuing claims number would have been negative by nearly 200,000 and created a significantly different headline picture.

I question the impact of this recovery and have concerns about its ability to continue to gain traction due to the historical perspective of the jobs situation and our population's spending habits. The Federal Reserve Economic Database is accessible by anyone. Looking at their employment graphs we can see that since 2007, the number of people not in the workforce has grown by more than 10 million. Conversely, when we look at the total employment level in the United States it shows that we are at the same level of employment as we were eight years ago. This ties in well with the thesis that American businesses and American workers are more productive than ever. This has led to healthy corporate profits while the domestic demographic spread continues to widen.

The American public on the other hand, is a bit of a concern. CNBC released a survey detailing the economic expectations of the American population versus our expected spending habits this holiday season. Retail sales have surged to all time highs, surpassing even 2007's high, which was fueled by credit. This year, CNBC's survey is expecting holiday spending to be 22% higher at the individual level. This would represent a 4.6% gain in total holiday spending over 2010. This makes no sense when 61% of American's polled believe that the economy is in poor condition with equally dismal expectations for 2012. This is the worst reading in the five-year history of a poll that includes the euphoric '07 highs as well as the desperate '08 lows.

My fear for 2012 is not the Mayan end of the world. My fear is that Americans are dipping into the minimal savings they've built up in the last two years on one last party of a holiday season. According to CNBC, 74% of this year's holiday purchases will be made with cash. This will leave most people skating on thin ice. The idea that we are spending more while expecting less just doesn't jibe with the narrow cushion we stereotypically hold. When we combine this with the fragility of the European Union situation and its ability to quickly throw us back in recession, I'm afraid that this holiday's spending habits may simply be the average American giving up and throwing ourselves a party while we still can.

Investing In Solar Energy - Getting in Early

History is filled with millionaires who made their fortunes through energy, mainly the oil industry. But today, energy investors would be well advised to consider broadening their horizons just a bit. There's a big push towards alternative energy, and the truth is that many options are out there and could provide very exciting opportunities for investors. Investing in solar energy, for example, could be a perfect way to get in on the ground floor of a financial elevator that could climb to great heights. If you're thinking that solar energy may be the best place to put your money, here's a closer look at the option.

While right now solar energy is primarily used in Germany and the Czech Republic, there are many strides that have been made to help bring it forward in America. Several companies have sprung up that are all working towards bringing solar energy to the forefront of the American power grid. While shares in a few of these companies are costly, many are very inexpensive at the moment but climbing steadily. And if the nation does focus more intently on harvesting the power of the sun, investing in solar energy right now could pay off tremendously down the road.

Even right now, investing in solar energy can pay off. More and more people are adding solar panels to their homes to complement their energy usage and numerous municipalities have turned to solar for some basic uses like powering street lights or signs as well as larger uses like powering entire 'green' co-ops. But along with being able to give you some significant financial benefits, investing in solar energy can also provide other benefits beyond just the monetary ones it is obviously capable of delivering - especially to companies that take the time to invest in it.

Investing in solar energy can give a company a positive boost in public perception. Whether your company is already highly regarded or is suffering from a poor image, embracing the green movement can help prove that you're serious about moving the world forward responsibly. As a result, you may even notice an increase in customers based solely on the fact that you've taken these steps. And even private investors will be able to feel good about their contribution to the world's future, knowing that they're helping fund a global change while investing in solar energy and reaping financial rewards as well.

Becoming Wealthy In Investing - It Is Never Too Late To Start Now

Financial education is never too late for anyone. If you think that becoming a millionaire is only for those people who are only starting, then you should think again. There are people all over the world who only started experiencing financial success right after they turned 60.

You should remember that age is only a number. Instead, it is on what you do that makes the difference. If you will look at the people who ended up rich, most of them had degrees on financial education. It is not a problem whether you started at a young age or you started a bit matured.

What you need to remember if you are going to lay a plan to get rich is the time frame of your financial blue print. If you are on your 40s, you more or less have the next 20 years to plan for your future. Accumulation of wealth should come from the right blend of passive and active income.

Since you started at an older age, it also follows that you already have a career. Having a career already at this point is an advantage since you have a source of passive income. From here, you could use up your savings for your education and have your job as funding towards investments.

Sources of passive income are those investments coming from stocks, commodities or currencies. If you are going to invest in any one, ensure that you have a short, midterm and long-term goal. These three things will be able to give you the things you need in life.

For short-term investments, what you want to have is a low risk high reward easy return investment. You could have it either on stocks or commodities. Stocks and commodities are good. The thing that you want to remember is to look into trends and study them carefully. Do not expect a lot of returns if you only have a short-term investment.

On the other hand, long-term investments may mean the opposite of the short-term ones. The thing that you need to remember is to make sure you cash in when you are about to retire. Ideally, the value of your investment has grown exponentially. The best way to get the best returns, for long-term investments, is to buy them on their all time lows. This way, you get to have more returns for such a little star-up capital.

A degree in financial education will give you all these things. It will enable you to reach out for your dreams despite all the hindrances that they say will stop you. You need to make sure, however, that you make all your decisions according to a feasible plan. The fact that you are not young is already a sign that you should always keep your hands up.

Though it is a disadvantage to start late because you no longer have room for error, you still have the edge when it comes to maturity. Unlike the neophytes in life that still have to learn and explore the different things, older guys can easily go directly to business.

Taking up a degree or a background in financial education is highly important in order to achieve your dreams. You should remember that age is only a number that people throw to you. If you want to have the best retirement plan and leave your job behind for an affluent lifestyle, you need to learn from the things taught in financial education. Their curriculum will fit anyone of any age as long as your goal is financial success.

A Quick Guide to Trading Oil

Although the price of oil impacts our everyday lives, from the price of filling up our car to plane tickets to heating costs to our grocery costs, most people don't know how to trade it. And, if they want to trade it, they don't know whether the price is going to go down, or up.

Factors impacting the oil price

The price of oil is usually determined by supply and demand. Put simply, if the demand for oil is higher than the supply (so there are more buyers than sellers) the price will go up. If the supply is higher, the price will go down.

According to the International Energy Agency, the global demand for oil is expected to reach 91 million barrels a day in 2012. The growth in oil demand is driven by emerging market economies, with OECD demand declining slightly. As far as oil supply goes, in June 2011 daily oil production averaged 88.3 million barrels a day with Saudi Arabia boosting supply from the Organisation of Petroleum Exporting Countries (OPEC).

As a large portion of oil production occurs in the Middle East, political turmoil in this region causes oil prices to rise as investors worry about future supply. Likewise, when non-OPEC supply grows, the risk of supply disruptions lessens as the production burden is spread.

One of the major supply problems concerning oil is oil quality. Many oil refineries require high-quality 'sweet' crude to meet environmental requirements, particularly in the US.

Aside from supply and demand, investor speculation has a large impact on oil prices as they bid on oil derivatives. Many institutional investors, including banks or mutual funds, hold commodity-linked investments in their long-term asset-allocation strategy. Other investors often trade oil derivatives for very short periods to make profits on quick price movements.

How to trade oil

Unlike buying and selling shares, there are a number of ways to go about trading oil.

Above we mentioned oil derivatives. A derivative is a product, usually a type of contract, that derives its value from another asset. In this case, its value is based on the value of oil.

Different derivatives include futures, options and CFDs.

Oil futures are agreements to buy or sell oil at an agreed upon price at a future date. This means that, even if the price in the market has changed, the buyer and seller still need to exchange the product at the end of the contract for the agreed price. Futures involve speculating on what the price of oil will be at a future point in time, generally basing this price on expected future supply and demand.

Options work in a similar fashion to futures. However, unlike futures, the buyer of an option has the right, but not the obligation, to buy the oil at the end of the contract. This means that, if the price in the market is more favourable at the expiry of the option, the buyer can choose not to carry out the option and can simply buy the oil on the market instead.

Although options and futures are both based on the exchange of an asset at a future point in time, most of these contracts don't result in the asset changing hands. So, in the case of an oil future or option, the oil doesn't actually move from the seller to the buyer. Instead, traders and investors usually try to profit on these contracts by buying and selling them at a better price than they originally paid.

A CFD, or contract for difference, is an agreement to exchange the difference in price of an asset between the time at which the contract is opened and the time at which it is closed. So if you bought an oil CFD at one price and the price of oil went up, you could then sell it at a higher price, profiting on the difference. If the price went down you would make a loss.

CFDs allow you to trade on the changing price of oil without investing in oil itself. As you aren't investing in the actual commodity, this means that you can access a wide position for a relatively small deposit, or margin. As your investment is smaller than it would have been if you were actually trading in oil, you can use your extra capital to either open more trades on different products, or a larger trade on more oil.

For traders uncomfortable with derivatives, they can cash in on the changes in oil prices by investing in the stocks of oil drilling and service companies. They can also invest in exchange-traded funds (ETFs). A fund is when an investment manager pools the capital of a number of investors, and then uses the grouped sum to invest in a range of assets. Investing in an ETF can be a good way to get some instant diversification into your portfolio, which can lower your risk and result in more consistent profits over time.

That being said, as derivatives are based on the values of other assets, they are also available on shares and, in some cases ETFs. CFDs, for example, are available not only on commodities, but also on shares, stock indices, forex, binaries and options.

Conclusion

Trading oil gives the potential investor a wide range of opportunities to make a profit. From direct exposure to commodities through derivatives, or indirect exposure through the stock of an energy company, there is usually an option for every trader.

CFDs are leveraged products, meaning you can lose more than your original deposit. CFD trading might not suit everybody, so please ensure you understand the risks involved.

Commodity Trading Tips, Golden Trading Tips and Guidelines of Do's and Don'ts in Commodity Markets

Historically, commodity trading has delivered the biggest fortunes worldwide. It originated centuries ago, even before the stock markets came into existence, albeit traded then in a different manner, than as seen today on electronic exchanges. I have often quoted that " If trading in the speculative markets, then Stocks & Equities is for boys but Commodities & Forex is for men" (No gender bias intended). Wealth creation is not a matter of chance. It is a process that needs sharp analysis & a lot of work time. Plan your play and then play your plan. Happy investing!

The similarity in Stocks & Commodities begins & ends at the point that they are both speculative trade markets, but there are a lot many differences in both these markets. Unlike the stock markets where even a highly valued stock could eventually see all it's commercial-value being eroded due to several reasons, the values of commodities may see corrections on a large supply but eventually will only increase again with time, as the inherent imbalance in the demand and supply ratio would always favor demand more than supply due to many influencing factors like growing populations, rising economies and better lifestyles to name a few. All adverse scenarios like geo-political tensions, wars, climatic imbalances, catastrophes and other man-made disasters, etc. which pull the stock markets down generally push the commodities up (especially Agro-Commodities & safe haven instruments like Gold), basically due to the differentiating factor that these commodities generally are also regular necessities to normal life and not simply investment instruments. Most Commodities are traded globally & the price rigging in these is next to impossible unlike, as seen in a lot of equity instruments where manipulation is a lot easier & occurrences of traders getting duped are rampant.

Massive wealth creation is possible through Commodity Trading & Investments if done the right way & with a lot of strict discipline. But if done the wrong way, which is generally the most followed path, there will be enormous losses also. You can start off equity trading or investment with smaller sums of money, but would require deeper pockets to be able to do some modest trading in the Commodity Exchanges & also to sustain the "Mark to Market" volatility in the Commodity Markets. The gains & losses in both also become proportionately big or small eventually. I would now like to highlight some basic Do's & Don'ts for the most frequently seen habits & maybe unknowingly committed mistakes, which I have noticed in most traders & had to address to a number of times as a Market Analyst & a Commodity Market Trade Advisor.

1] Do not trade with hesitance, half heartedly or in over confidence. You may incur small but repeated losses if you are scared of the markets or heavier ones if you are overtly brave and foolhardy.

2] Be patient when your trade positions are moving in the right expected direction to extract maximum gains and ensure the gains by improvising the stop-loss level, time and again. Do not be pessimistic here or else you may book gains pre-maturely & may later repent on exiting early. This may lead to keeping on re-entering the same trade at further levels & repeatedly exit at small reversals in panic, which in turn would erode earlier small gains & also build losses. It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong & that makes all the difference between Winners & Losers.

3] Do not be over optimistic when trades have hit the suggested stop-loss levels and make sure you exit there. You may miss better and multiple opportunities on being stuck in deals gone wrong leading to higher and higher losses each day.

4] Do not discuss your open positions with one and all. This will lead you nowhere and confuse you more, as all would air their own views on the same (whether knowledgeable or not) and many a times, would make your trade decisions seem as foolishly and hastily taken. If only you would have consulted them earlier...

5] Do not develop a tendency of being a Bull or a Bear in these markets. There is only one side to the markets and that is neither the Bull side nor the Bear side - But ONLY the Right Side at the Right Time. Trend is King, so follow it at all times.

6] Realize that you are in a bad situation and exit fast when you need to pray for relief at each rise or fall in a trade which is leading you further in a deep pit towards heavier losses.

7] Follow ONLY one Analyst's or Technical Advisor's guideline at a time, as more guidelines will again create a lot of confusion. You can opt for or look out for an alternate guidance when the earlier guideline proves to be less productive or loss making, but not simultaneously.

8] Be honest to yourself as hoping or praying for something different, than the actual reality or situation is nothing less than fooling your own self.

9] There is NOTHING such as HUGE, mind-blowing and sky-high profit makings overnight, as assured by many to win a prospective client. YES, there are sizeable gains and high returns for a disciplined trader and may return exactly the opposite, if not worse, for the non-disciplined. Do not enter this trade market under any illusions of getting to be a Billionaire overnight. It will never happen. In fact all that you now possess may also be lost.

10] DO NOT BORROW or trade with funds that are not yours or pump in more funds by borrowing to hold on to loss making trades. Trade only with own funds that are spare-able and be prepared mentally in losing even that in totality, in the worst case.

11] Never trade or enter / exit positions in panic. Volatility is a non-separable component of this trade market and will be present most of the times.

12] Do not be a party to rumors or be guided or misled by these. Verify & double-check on the source for genuineness.

13] Stay away from the people who have a habit of saying "I had told you - See now?". These are the very same people who would never put anything on paper or ever trade on their own views- with their own funds, as in reality they do not have any concrete views or knowledge. They are mere sponges on an ego trip, who keep soaking or gathering tidbits of information from anywhere available irrespective of their reliability, put all together and spread the newly formed news. If what they say goes wrong, they would disappear and would be seen nowhere or if found, might now have some stronger views and reasons for why the wrong happened as generally these kind of people are very good convincers & are blessed with the gift of gab. Listening to these characters and their views is very dangerous. As the wise always said: - "Half knowledge is always the most dangerous", "Ignorance is Bliss" and "Blessed are the fully knowledgeable".

14] DO NOT TRY to be the TREND SETTER or the first one to know where a particular trade will turn from. No one can possibly be, except by a sheer matter of chance, the best seller or the best buyer - so why try it? You might end up losing a lot of money and also becoming the laughing-stock for all. Follow the trend and make respectable gains, "Quietly".

15] Do not enter the Commodity Markets with Stock Market trading ideas. Though both are speculative trade markets, there is a substantial difference in both and generally have opposite trading patterns and thumb rules, as elaborated earlier.

16] Providing past performance records is not a mandatory rule for Analysts or Advisors, and the same info (wherever posted) can be misleading, as the same can be manufactured by the end of day to dupe prospective clients. Do not try to look for something that can misguide you & lead you on the wrong path, ending up in losses - money-wise & also confidence-wise. Upon subscription by the trader, the same people showing fantastic results on their websites, but performing poorly in real-time, may later not be available even for a discussion or may later say that "Past performances are not an assurance of any future success". So take a Trial for a fortnight or a month (not for a day or two), do some live paper trading & only trust the live performances. Judge the genuineness of the research quality and real-time trading support only on the basis of live experience and not by past performance records. Most of these records could be fakes. Better to pay for the Trial & come to the right conclusion, rather than loose a lot of capital by trading on faith generated by looking at & getting impressed by the past performances.

17] "Trading without a Stop-Loss & yet making gains is sheer Talent - Not trying such stunts is Intelligence". The stop-loss practice is for your own benefit as this provision has utmost importance and is not provided on each trading ticket by the exchanges, just for the heck of it. If the trades turn & move in the opposite directions beyond entry levels, they might further move very fast in a volatile manner & the losses accrued, in the absence of a stop-loss, can be un-imaginable. There are several things happening across the globe constantly, which affect the price movement, direction & volumes in commodity trading, as basically they move in accordance with demand and supply situations & are also greatly affected by the Geo-political scenarios all over. It is not humanly possible to track each & every occurrence, watch out for economic data's released all around the globe and understand the level of their impacts on the trade movement & direction of all commodities, though you may be constantly updated on most of the developments, most of the time. Many times the reaction or the impact of these developments is so quick & enormous, that large & rapid movements in rates are instantly triggered with high volatility, even before the news on these developments reach all over the world. In such a scenario, you may never know as to what level these trades could go to & the losses (though sustainable by a few) may be very large. These losses are not the only losses that you incur if caught in such a situation - you also miss out on the opportunity, the same commodity is offering, in the opposite direction and also by other trades as most of your attention and funds will now be concentrated and caught up on this particular trade gone wrong. Remember - Growing wealth is important, but safe guarding seed capital is even more important. It's easier to resist & also absorb losses at the beginning than later.

18] Averaging in loss making positions is a practice which is most commonly seen & generally leads to more dangerous losses. This is also recommended by a number of advisors, but I certainly do not recommend it. In fact I strongly oppose it. Remember - YOU are incurring the loss & not your advisor.

19] Putting all your eggs in one or a couple of baskets could prove to be more dangerous for the day trader. Having a wider investment or a trading spectrum would be more effective. All entered trades may never go wrong simultaneously but a stray one or two could and what, if you have traded in only those? It may also happen that the 1 or 2 trades that you have entered into, have moved in the right direction, but have not achieved the expected high results or gains in comparison to the ones you have left out. So it is only advised and not stressed upon - that the trader should take positions in a wider range of trading / investment opportunities to achieve better results.