Why I'm Learning To Trade Forex

Why I'm Learning To Trade Forex
Learning to trade forex seems simple ands easy on the
surface, but all the successful people who have spent time
learning to trade forex properly will tell you that there's
much more to it than meets the eye. They are only partly
right.

While you are learning to trade forex, bear in mind that
you are embarking on an activity that has a daily turnover
on average of between $1.5 trillion to $2.5 trillion.
That's a lot of money! One billion is one thousand million,
and a trillion is one thousand times that again. There's a
lot of money to be made, so learning to trade forex is
certainly a good skill to have.

Forex is an acronym for foreign exchange. Forex trading
continues day and night without a break; as one market
closes, others open and this keeps going on and on all over
the planet.

Trading is done on the differences between currencies and
is always done in pairs. You can trade the American dollar
against the British pound, or the Japanese yen against the
European euro, or any of the other world currencies.

Learning to trade forex properly does not mean jumping in
and trying your hand. You will probably lose everything
with a method as poorly thought out as that. There are
three attributes that you must learn to employ to have any
chance of being successful: patience, discipline and
simplicity.

Trading in forex has risks, big risks sometimes. For this
reason the online forex companies offer you the chance to
trade with a demo account. This is exactly the same as the
real thing, but no real money is involved.

This kind of training is invaluable. This cannot be
stressed enough. Practice on demo accounts for as long as
it takes for you to consistently make profitable trades.
There will be some losses of course, but you must get to
the stage where you are profiting more often than losing.
Then, and only then, consider trying to trade for real.

If you keep it simple, discipline yourself to only trade a
low percentage of your overall trading amount, and have the
patience to see slow but steady profits, then you will have
gone past the learning to trade forex stage and have
entered the realm of the sensible and usually successful
trader.

The foreign exchange market, also known as the forex or FX
market, in the form that we know it was established as
recently as 1971. Prior to that there were the fixed
currency exchanges.

Trading in foreign exchange is conducted on a twenty-four
basis for five days of the week, every week. It is a global
currency market, though the big three of the US dollar, the
Japanese yen and the European euro tend to dominate.
Learning to trade forex is therefore something that's not
limited to certain times. The market is active constantly
during the working week.

Currencies are traded in pairs and are identified by three
letters. The first two letters usually identify the country
involved, and the third letter identifies the currency of
that country. For example, USD is the American dollar, JPY
is the Japanese yen, and GBP is the British pound. Learning
to trade forex is not difficult if you don't let it be so.

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What-Ifs And Desperately Searching For A Way To make some
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An Introduction to Real Estate Commercial Loan Documentation

An Introduction to Real Estate Commercial Loan Documentation
The financial stakes are much higher when you're dealing
with commercial investments rather than residential
investments. With such deals, the rewards are greater, but
the risk is also. So, it will pay you to understand
completely the terms and wording of commercial loan
documents. In this article, I'll provide you with the
necessary knowledge of the basic loan forms and language.

First, however, you should understand the types of lenders
you'll be dealing with in this market.

Mortgage bankers are the type that represents most
commercial lenders. They work on behalf of a fixed number
of lenders and usually have a long-standing relationship
with them.

Mortgage brokers are "shoppers" or middle men. That is,
they shop your loan application around to lenders and
operate on a deal-by-deal basis.

My recommendation—go with mortgage bankers if at all
possible. I make this recommendation for two reasons: One,
they're more likely to be well-connected within the
financial community so they'll be able to steer you to the
right person for your project. Two, they're usually cheaper
than brokers. When using the services of the broker, you
have to pay two fees—one for the broker in addition
to the lender's fee.

Now, let's look at the standard commercial loan documents
and their wording.

The Promissory Note

A promissory note is a written promise to repay the loan.
It's spelled out in specific terms. Terms vary with the
particular note, but they generally include the following
items:

1.Date

2.Borrower and lender names

3.Address of lender

4.The principal sum and the interest rate

5.Term

6.Place of payment

7.Terms of repayment Terms of late payment charges

8.Promise to pay

9.Acceleration and pre-payment stipulations

10.Deed of trust or mortgage attached

11.Attorney's fees and other boilerplate items

12.Signatures and date

Loan Priority

Priority simply stipulates who gets paid first. The lender
has "first position." This is a protection for the lender
and means that the lender's rights are subject only to the
payment of real estate taxes. This means the lender has the
ability to pay the taxes to protect his or her position.

There are also "junior" positions—second, third, and
so forth. If a lender is in second position, then he or she
has to bring the loan up to current status or pay it off to
eliminate any default on that loan. Priority is determined
by the date of recordation.

Securing of the Loan Notes must be secured, and this is
done by recording of the mortgage or deed of trust.

They're liens against the property and are security
instruments. Recording of a mortgage or deed of trust has
two purposes.

First, it establishes the priority I mentioned earlier.

Second, it makes public the fact that the lien exists. This
allows prospective lenders to establish the priority of the
lien in regard to any proposed financing.

Whether a mortgage or deed of trust is involved depends on
the area of the country in which you live. Eastern states
tend to use the traditional mortgage format while Western
states tend to use the deed of trust. Both are essentially
the same; the main differences lie in who draws up these
documents. In mortgage states, an attorney is usually
required to prepare the document. In deed of trust states,
it can be drawn up by a title company.

Both of these non-negotiable security instruments are
universal to all real estate property borrowing and are
often standardized. They include such information as:

1.The account number

2.Borrower's name and mailing address 3.Beneficiary's name
and mailing address

4.Trustee's name and address

5.The date Property description (location, town, county,
state, address, etc.)

6.Note amount

7.Purpose of the document ("recitals")

8.Terms and conditions

9.Mutual agreements (rights of assignment, damages,
trespass, personal guarantees, etc.)

10.Additional security (if required)

11.Default provisions and remedies

12.Recording authority

13.Successors in interest

14.Rights of assignment

15.Signatures and date

Special Provisions

Special provisions may be added to the general terms of the
mortgage or deed of trust.

Here are two examples:

Cross collateralization

A borrower has more than one property and offers them as
collateral for the loan. So, the mortgage or deed of trust
is recorded against all these properties. Thus, when any of
these collateralized properties are sold, the proceeds go
to the lender before any payment is made to the borrower.

Personal guarantee

This occurs when the borrower doesn't have sufficient
collateral to secure the note in full. He or she is
required to guarantee to pay the difference of the short
fall. My recommendation—avoid personal guarantees at
all costs since the lender, in a deafult, can require you
to pay the note in full! You want to avoid any situation
where you may end up without money and are still stuck with
the property.

As I indicated earlier, this article is intended only as a
basic introduction to commercial loan documents.

Before engaging in any deals in this market, I recommend
you study the documents in detail so you have full
understanding of the terms and conditions you'll have to
abide with once you put your name on the dotted line.

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Jack Sternberg is a nationally recognized expert on real
estate investment who's been in the business for more than
30 years. Sternberg is the creator of the renowned "Buyers
First" Program. His deals have totaled over $750 million
and he's been to the closing table more than 1,500 times.
For more, visit http://www.askjacksternberg.com