By converting your money into a different currency, you hope that the other currency increases in value. When you convert it back to your original currency, you hope to make a profit.
For example, let’s say you exchange $1000 U.S. dollars for $1100 Canadian dollars. The CAD/USD exchange rate goes up by .10, meaning the Canadian dollar has increased in value when compared to the U.S. dollar. You could exchange the $1100 Canadian dollars you have back to the U.S. dollar and get $1100 U.S. dollars, making a $100 USD profit.
A forex quote will have a bid price and an ask price for a currency pair, which are quoted in relation to the base currency. When selling the base currency, the bid price is the price the broker is willing to pay to buy the base currency from you. In other words, it's the price you'll receive if you sell.
When buying the base currency, the ask price is what the broker is willing to sell the 'base currency' for in exchange for the quote currency. Let’s look at an example:
Here is a typical currency quote: USD/CAD 1.2050/05. You would read that as bid = 1.2050 and the ask = 1.2055. Another way of looking at it is USD/CAD Bid/Ask. You could enter the position at 1.2055 or sell your position for 1.2050. The bid/ask spread of 0.0005 is a fee the broker takes.
This is where pips come in. No, not pips from a watermelon. A pip, also called a point, is the incremental change in a forex price. A $1.50 in a forex price would look like $1.5000. So, going up one pip would look like going from $1.5000 to $1.5001. Pips aren’t much, which is why there is so much leverage or money needed to make a profit. Leverage allows you to increase your buying power by ratios of 100:1 or even 200:1 and up.
You buy currencies in “lots.” A standard lot is $100,000. Don’t get scared of that number since it will be made up of leverage. You can also do smaller lots, like $10,000, called a mini-lot. Another high, scary number I know, but a mini-lot can be bought with $50 before leverage to give you a better feel for these high numbers.
You get two different quotes for a currency pair. The first is directly, which is a simple foreign exchange quote where the foreign currency is the base. The second is the indirect quote, which is a currency pair which has the domestic currency as the base. So, if you’re in Canada, you can get a direct quote that would look like C$1.10 pre-US $1. An indirect quote would look like C$1 = US$0.90.
The forex market offers so much opportunity to make a profit, both in rising and declining markets alike. Every trade is done in a pair, so you are buying and selling at the same time: you’re going long with one currency and short in another. In the stock market, to short a stock, you need to wait for the uptick to enter, but since there are no “rules” in the forex, you can enter a short position anytime you want.
Your behavior affects your feelings. Your internal dialog and emotions will change based on your behavior. You can actually change your posture and get an immediate change in attitude. We often think of body language as something that is communicating to others. Have you considered what your body language says to you? Social scientists have focused on body language and the judgments people put on them. The media and studies available have turned body language into what you’re saying to others. By the end of this section, you will view body language in a completely different way.
The type of people who can aggressively tackle projects and get things done all share common behavior. Behaviors run parallel with successful people and crosses all cultures. The behavior found in the successful businessman can be found in that of a successful tribal leader in Africa. It gets even more interesting still. This behavior not only crosses cultures, but species as well. When looking at pack animals, the leaders have similar behavior to the leaders in people across cultures.
It’s all about opening up. Dr. Jessica Tracy, a psychologist from the University of British Columbia, has some unique studies on the emotions of pride and shame. She found that the pride and shame response is the same across cultures. Even in blind and congenitally blind people. People who have never seen the body language of others universally know how to express pride and shame. Ever watch the Olympics and see the winner throw his hands up in the air with his head held high, while the others close up, look down and keep their hands down and around the body? The V shape of the arms raised about the head while looking upwards is universally a sign of pride.
The universal body language of success across cultures and species is one of openness. When you open your posture and open your arms, you express aggressive, confident behavior. When you close your posture and keep your arms around your body, you express defensive, fearful behavior. You are expressing this to others but also expressing it to yourself.
Amy Cuddy, a published psychologist, ran a study based on people holding different positions for two minutes. The study took a baseline of testosterone and cortisol, then ran the participants through the different cycles of positions, holding each one for two minutes, then taking another reading on testosterone and cortisol. Open pride-type posture on average raised testosterone by 20% from baseline readings, and closed shame posture on average lowered testosterone by 10% from baseline. With cortisol, you see a similar change. With pride posture, cortisol dropped by 25%, and in shame postures, cortisol went up by 15%. Major changes in just two minutes of holding a posture, right? Testosterone will control your brain into being calm and assertive, whereas cortisol will put you in a highly stress-reactive state. Your behavior will change your mind.
The go to for almost all searches starts on Google. If people can’t find you on Google, you’re missing out.
People reading RSS feeds, blogs, or other similar forms of information are looking for a level of entertainment. People on Google are searching for something specific. Obvious, right? It’s important to understand the difference if you want to rank for Google.
Each Google page lists ten results. The first ten listings take the lion’s share of traffic, about 70% more than the top paid ads on Google. Getting a top ten listing position opens the flood gates.
For Google to index your page, it needs to crawl it. If Google isn’t crawling your site, it’s simply being ignored for search results. You can let Google know you exist many ways. A common way is backlinks. A link to your site from a page that is already being crawled will help it get noticed. The more backlinks, the better. You can also go to Google directly to submit your site to their Webmaster Tools.
Getting your pages indexed isn’t hard. Getting them to rank well is. Rank is based on two factors:
Relevance is about how well the searched for keywords match with your page’s keywords. This means title tag, headers, content, and anchor text. Authority measures how important the page is in the eyes of Google.
Most blog software has addons that will evaluate a page for ranking. It’s easy to get the right density of keywords, headers, word count and placement, making the page rank well for relevancy. However, it’s authority that lends the most weight. Google calls it PageRank. It’s not named after ranking a page, it’s coined from Larry Page, one of the founders of Google.
Authority measures the credibility and relative importance of the page. They measure credibility the same way an academic paper is measured. The more the academic paper cites other academic papers, the more credibility it has. But not all citations are equal. A citation to a low authority paper doesn’t carry much weight. A citation to a high authority paper does.
A citation to your site from another site is a backlink. A backlink from a low authority site is low authority. A backlink from the top site in the industry carries a lot of weight.
The best way to get high authority backlinks is to create compelling content and joining the conversation on high authority sites. Most blogs and sites allow you to add your website to your post, either hidden, in a signature, or in your comment content, if it applies. If the author of the post checks out your content and likes it, they will use your material or link to it in future posts.
Thousands of years ago, when our ancestors ate, it was rare to eat one large fully prepared meal. It was likely that people ate as they gathered food. Five to six small meals throughout the day is considered the way our bodies are used to eating.
A study in 1999 in South Africa found that when you eat five to six small meals a day, you consume about 30% fewer calories a day. That’s a lot to remove from your daily caloric intake.
A common misconception is that when you eat five to six small meals a day it keeps your insulin spiked and makes it harder to lose weight. In a study titled Effects of Meal Frequency on Blood Glucose, Insulin, and Free Fatty Acids in NIDDM Subjects, published in the Diabetes Journal, just the opposite is true. Your body will actually produce less insulin throughout the day. A big meal or a sugar meal will trigger insulin, which tells the body to store fat. Sumo wrestlers train to eat one large meal a day. When you eat small meals, the amount of food sneaks under the radar.
They found that two large meals induce 84% greater glucose excursion than six small meals.
You can never be “truly” hungry when you are eating every two hours. Another benefit of eating small meals is that they are often pre-planned, which means calories can be measured ahead of time.
Ever see a fast food chain restaurant colored blue? Yeah, me neither. The color blue actually acts as an appetite suppressant, according to a study. They had participants spend time in a blue room, red room, and a yellow room. The results found that 33% less food was eaten in the blue room. Another study found that food colored blue was avoided and even made people lose their appetites.
So, get some blue plates, a blue table cloth, a blue shirt, and even some blue napkins.
The idea is that people have adapted to their environment, which doesn’t have much blue food. In fact, out of the thousands of natural foods we eat there are only three edible blue foods: blueberries, blue corn, and blue potatoes.
Our ancestors learned to fear food that was blue, purple, or black. It was a kind of warning sign to food that could make you sick or kill you.