An overview of the Forex market
The Forex market is a non-stop cash market where currencies of nations are traded, typically via brokers. Foreign currencies are constantly and simultaneously bought and sold across local and global markets and traders' investments increase or decrease in value based upon currency movements. Foreign exchange market conditions can change at any time in response to real-time events.
The main enticements of currency dealing to private investors and attractions for short-term Forex trading are:
24-hour trading, 5 days a week with non-stop access to global Forex dealers.
An enormous liquid market making it easy to trade most currencies.
Volatile markets offering profit opportunities.
Standard instruments for controlling risk exposure.
The ability to profit in rising or falling markets.
Leveraged trading with low margin requirements.
Many options for zero commission trading.
Forex trading
The investor's goal in Forex trading is to profit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example, the exchange rate of EUR/USD on Aug 26th, 2003 was 1.0857. This number is also referred to as a "Forex rate" or just "rate" for short. If the investor had bought 1000 euros on that date, he would have paid 1085.70 U.S. dollars. One year later, the Forex rate was 1.2083, which means that the value of the euro (the numerator of the EUR/USD ratio) increased in relation to the U.S. dollar. The investor could now sell the 1000 euros in order to receive 1208.30 dollars. Therefore, the investor would have USD 122.60 more than what he had started one year earlier. However, to know if the investor made a good investment, one needs to compare this investment option to alternative investments. At the very minimum, the return on investment (ROI) should be compared to the return on a "risk-free" investment. One example of a risk-free investment is long-term U.S. government bonds since there is practically no chance for a default, i.e. the U.S. government going bankrupt or being unable or unwilling to pay its debt obligation.
When trading currencies, trade only when you expect the currency you are buying to increase in value relative to the currency you are selling. If the currency you are buying does increase in value, you must sell back the other currency in order to lock in a profit. An open trade (also called an open position) is a trade in which a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position.
However, it is estimated that anywhere from 70%-90% of the FX market is speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency.
Sunday, August 16, 2009
Friday, August 14, 2009
What is Search ENgine Optimization?
Search engine optimization (SEO) is the process of improving the volume or quality of traffic to a web site from search engines via "natural" ("organic" or "algorithmic") search results. Typically, the earlier a site appears in the search results list, the more visitors it will receive from the search engine. SEO may target different kinds of search, including image search, local search, and industry-specific vertical search engines. This gives a web site web presence.
As an Internet marketing strategy, SEO considers how search engines work and what people search for. Optimizing a website primarily involves editing its content and HTML and associated coding to both increase its relevance to specific keywords and to remove barriers to the indexing activities of search engines.
The acronym "SEO" can also refer to "search engine optimizers," a term adopted by an industry of consultants who carry out optimization projects on behalf of clients, and by employees who perform SEO services in-house. Search engine optimizers may offer SEO as a stand-alone service or as a part of a broader marketing campaign. Because effective SEO may require changes to the HTML source code of a site, SEO tactics may be incorporated into web site development and design. The term "search engine friendly" may be used to describe web site designs, menus, content management systems, images, videos, shopping carts, and other elements that have been optimized for the purpose of search engine exposure.
Another class of techniques, known as black hat SEO or Spamdexing, use methods such as link farms and keyword stuffing that degrade both the relevance of search results and the user-experience of search engines. Search engines look for sites that employ these techniques in order to remove them from their indices.
As an Internet marketing strategy, SEO considers how search engines work and what people search for. Optimizing a website primarily involves editing its content and HTML and associated coding to both increase its relevance to specific keywords and to remove barriers to the indexing activities of search engines.
The acronym "SEO" can also refer to "search engine optimizers," a term adopted by an industry of consultants who carry out optimization projects on behalf of clients, and by employees who perform SEO services in-house. Search engine optimizers may offer SEO as a stand-alone service or as a part of a broader marketing campaign. Because effective SEO may require changes to the HTML source code of a site, SEO tactics may be incorporated into web site development and design. The term "search engine friendly" may be used to describe web site designs, menus, content management systems, images, videos, shopping carts, and other elements that have been optimized for the purpose of search engine exposure.
Another class of techniques, known as black hat SEO or Spamdexing, use methods such as link farms and keyword stuffing that degrade both the relevance of search results and the user-experience of search engines. Search engines look for sites that employ these techniques in order to remove them from their indices.
Friday, August 7, 2009
Optimizing Search Engine
Getting indexed
The leading search engines, such as Google, use crawlers to find pages for their algorithmic search results. Pages that are linked from other search engine indexed pages do not need to be submitted because they are found automatically. Some search engines, operate a paid submission service that guarantee crawling for either a set fee or cost per click. Such programs usually guarantee inclusion in the database, but do not guarantee specific ranking within the search results. Google offers Google Webmaster Tools, for which an XML Sitemap feed can be created and submitted for free to ensure that all pages are found, especially pages that aren't discoverable by automatically following links.
Search engine crawlers may look at a number of different factors when crawling a site. Not every page is indexed by the search engines. Distance of pages from the root directory of a site may also be a factor in whether or not pages get crawled.
Preventing crawling
To avoid undesirable content in the search indexes, webmasters can instruct spiders not to crawl certain files or directories through the standard robots.txt file in the root directory of the domain. Additionally, a page can be explicitly excluded from a search engine's database by using a meta tag specific to robots. When a search engine visits a site, the robots.txt located in the root directory is the first file crawled. The robots.txt file is then parsed, and will instruct the robot as to which pages are not to be crawled. As a search engine crawler may keep a cached copy of this file, it may on occasion crawl pages a webmaster does not wish crawled. Pages typically prevented from being crawled include login specific pages such as shopping carts and user-specific content such as search results from internal searches. In March 2007, Google warned webmasters that they should prevent indexing of internal search results because those pages are considered search spam.
White hat versus black hat
SEO techniques can be classified into two broad categories: techniques that search engines recommend as part of good design, and those techniques of which search engines do not approve. The search engines attempt to minimize the effect of the latter, among them spamdexing. Some industry commentators have classified these methods, and the practitioners who employ them, as either white hat SEO, or black hat SEO. White hats tend to produce results that last a long time, whereas black hats anticipate that their sites may eventually be banned either temporarily or permanently once the search engines discover what they are doing.
An SEO technique is considered white hat if it conforms to the search engines' guidelines and involves no deception. As the search engine guidelines are not written as a series of rules or commandments, this is an important distinction to note. White hat SEO is not just about following guidelines, but is about ensuring that the content a search engine indexes and subsequently ranks is the same content a user will see. White hat advice is generally summed up as creating content for users, not for search engines, and then making that content easily accessible to the spiders, rather than attempting to trick the algorithm from its intended purpose. White hat SEO is in many ways similar to web development that promotes accessibility, although the two are not identical.
Black hat SEO attempts to improve rankings in ways that are disapproved of by the search engines, or involve deception. One black hat technique uses text that is hidden, either as text colored similar to the background, in an invisible div, or positioned off screen. Another method gives a different page depending on whether the page is being requested by a human visitor or a search engine, a technique known as cloaking.
Search engines may penalize sites they discover using black hat methods, either by reducing their rankings or eliminating their listings from their databases altogether. Such penalties can be applied either automatically by the search engines' algorithms, or by a manual site review. Infamous examples are the February 2006 Google removal of both BMW Germany and Ricoh Germany for use of deceptive practices. and the April 2006 removal of the PPC Agency BigMouthMedia. All three companies, however, quickly apologized, fixed the offending pages, and were restored to Google's list.
Many Web applications employ back-end systems that dynamically modify page content (both visible and meta-data) and are designed to increase page relevance to search engines based upon how past visitors reached the original page. This dynamic search engine optimization and tuning process can be (and has been) abused by criminals in the past. Exploitation of Web applications that dynamically alter themselves can be poisoned
As a marketing strategy
Eye tracking studies have shown that searchers scan a search results page from top to bottom and left to right (for left to right languages), looking for a relevant result. Placement at or near the top of the rankings therefore increases the number of searchers who will visit a site.However, more search engine referrals does not guarantee more sales. SEO is not necessarily an appropriate strategy for every website, and other Internet marketing strategies can be much more effective, depending on the site operator's goals.A successful Internet marketing campaign may drive organic traffic to web pages, but it also may involve the use of paid advertising on search engines and other pages, building high quality web pages to engage and persuade, addressing technical issues that may keep search engines from crawling and indexing those sites, setting up analytics programs to enable site owners to measure their successes, and improving a site's conversion rate.
SEO may generate a return on investment. However, search engines are not paid for organic search traffic, their algorithms change, and there are no guarantees of continued referrals. Due to this lack of guarantees and certainty, a business that relies heavily on search engine traffic can suffer major losses if the search engines stop sending visitors.It is considered wise business practice for website operators to liberate themselves from dependence on search engine traffic.A top-ranked SEO blog Seomoz.org has suggested, "Search marketers, in a twist of irony, receive a very small share of their traffic from search engines." Instead, their main sources of traffic are links from other websites.
The leading search engines, such as Google, use crawlers to find pages for their algorithmic search results. Pages that are linked from other search engine indexed pages do not need to be submitted because they are found automatically. Some search engines, operate a paid submission service that guarantee crawling for either a set fee or cost per click. Such programs usually guarantee inclusion in the database, but do not guarantee specific ranking within the search results. Google offers Google Webmaster Tools, for which an XML Sitemap feed can be created and submitted for free to ensure that all pages are found, especially pages that aren't discoverable by automatically following links.
Search engine crawlers may look at a number of different factors when crawling a site. Not every page is indexed by the search engines. Distance of pages from the root directory of a site may also be a factor in whether or not pages get crawled.
Preventing crawling
To avoid undesirable content in the search indexes, webmasters can instruct spiders not to crawl certain files or directories through the standard robots.txt file in the root directory of the domain. Additionally, a page can be explicitly excluded from a search engine's database by using a meta tag specific to robots. When a search engine visits a site, the robots.txt located in the root directory is the first file crawled. The robots.txt file is then parsed, and will instruct the robot as to which pages are not to be crawled. As a search engine crawler may keep a cached copy of this file, it may on occasion crawl pages a webmaster does not wish crawled. Pages typically prevented from being crawled include login specific pages such as shopping carts and user-specific content such as search results from internal searches. In March 2007, Google warned webmasters that they should prevent indexing of internal search results because those pages are considered search spam.
White hat versus black hat
SEO techniques can be classified into two broad categories: techniques that search engines recommend as part of good design, and those techniques of which search engines do not approve. The search engines attempt to minimize the effect of the latter, among them spamdexing. Some industry commentators have classified these methods, and the practitioners who employ them, as either white hat SEO, or black hat SEO. White hats tend to produce results that last a long time, whereas black hats anticipate that their sites may eventually be banned either temporarily or permanently once the search engines discover what they are doing.
An SEO technique is considered white hat if it conforms to the search engines' guidelines and involves no deception. As the search engine guidelines are not written as a series of rules or commandments, this is an important distinction to note. White hat SEO is not just about following guidelines, but is about ensuring that the content a search engine indexes and subsequently ranks is the same content a user will see. White hat advice is generally summed up as creating content for users, not for search engines, and then making that content easily accessible to the spiders, rather than attempting to trick the algorithm from its intended purpose. White hat SEO is in many ways similar to web development that promotes accessibility, although the two are not identical.
Black hat SEO attempts to improve rankings in ways that are disapproved of by the search engines, or involve deception. One black hat technique uses text that is hidden, either as text colored similar to the background, in an invisible div, or positioned off screen. Another method gives a different page depending on whether the page is being requested by a human visitor or a search engine, a technique known as cloaking.
Search engines may penalize sites they discover using black hat methods, either by reducing their rankings or eliminating their listings from their databases altogether. Such penalties can be applied either automatically by the search engines' algorithms, or by a manual site review. Infamous examples are the February 2006 Google removal of both BMW Germany and Ricoh Germany for use of deceptive practices. and the April 2006 removal of the PPC Agency BigMouthMedia. All three companies, however, quickly apologized, fixed the offending pages, and were restored to Google's list.
Many Web applications employ back-end systems that dynamically modify page content (both visible and meta-data) and are designed to increase page relevance to search engines based upon how past visitors reached the original page. This dynamic search engine optimization and tuning process can be (and has been) abused by criminals in the past. Exploitation of Web applications that dynamically alter themselves can be poisoned
As a marketing strategy
Eye tracking studies have shown that searchers scan a search results page from top to bottom and left to right (for left to right languages), looking for a relevant result. Placement at or near the top of the rankings therefore increases the number of searchers who will visit a site.However, more search engine referrals does not guarantee more sales. SEO is not necessarily an appropriate strategy for every website, and other Internet marketing strategies can be much more effective, depending on the site operator's goals.A successful Internet marketing campaign may drive organic traffic to web pages, but it also may involve the use of paid advertising on search engines and other pages, building high quality web pages to engage and persuade, addressing technical issues that may keep search engines from crawling and indexing those sites, setting up analytics programs to enable site owners to measure their successes, and improving a site's conversion rate.
SEO may generate a return on investment. However, search engines are not paid for organic search traffic, their algorithms change, and there are no guarantees of continued referrals. Due to this lack of guarantees and certainty, a business that relies heavily on search engine traffic can suffer major losses if the search engines stop sending visitors.It is considered wise business practice for website operators to liberate themselves from dependence on search engine traffic.A top-ranked SEO blog Seomoz.org has suggested, "Search marketers, in a twist of irony, receive a very small share of their traffic from search engines." Instead, their main sources of traffic are links from other websites.
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