Your Questions About Paper Trading Free

Lisa asks…

Are you a slave of the Federal Reserve?

If you and I were alone on an island, and established an “economic system” under which you would do all the work to keep both of us alive, and I would “pay” you for your services by giving you paper IOUs (aka “fiat money”) — and if you don’t like the idea, I kindly point out that I have the only gun on the island — there would be no doubt that you were totally enslaved. Let’s call me, the one doing the enslaving, “the federal reserve” and call my gun “the government.” Now you understand the role of the Federal Reserve in our society.

There are two kinds of money:
1. Commodity money, such as gold and other precious metals, which can be produced by ANYONE, and
2. Fiat money, which can only be (legally) produced by governments and/or licensed central banks.

The fact that ANYONE can mine gold or produce any other commodity used as money is vitally important, from the standpoint of individual freedom. If YOU can mine some gold, and smelt it into coins, your coins will have the same value as anyone’s. Gold is the money of free men, who trade value-for-value as equals.

Fiat money, on the other hand, comes from a central banker (The Federal Reserve) or a politician (who calls himself “the government”) printing up his own entitlement to YOUR wealth. Instead of engaging in the difficult, dangerous and uncertain project of finding gold, the bankers and politicians run their fiat “money” off a printing press, risk-free and effort-free. Under our present fascist system, banks print up their banknotes, which they lend to the government (in return for government bonds), and the government spends the money into the economy — essentially confiscating valuable goods and services and forcing their victims to accept worthless paper in return.

No one but government and their favored bankers can produce fiat money — because no one but government can force people to act against their own interests and expect to get away with it. No one but government can claim that their paper buttwipe is “money” and force you to take it for your valuable goods and services. No one but government can make you their slave, and enforce their claims on your life, your liberty and your property.

As gold is the money of free men, fiat paper is the money of slaves. And the issuer of the fiat paper is the slave-master.

Additional details: A quote from Sir John Stamp (former governor of the Bank of England):
“The modern banking system manufactures money out of nothing. The process is perhaps the most astonishing piece of slight of hand ever invented. Banking was conceived in iniquity, and born in sin. Bankers own the earth. Take it away from them, but leave them the power to create money, and with the flick of a pen, they will create enough money to buy it back again. Take this great power away from them, and all great fortunes like mine will disappear. And, they ought to disappear, for then this would be a better and happier world to live in. But if you want to continue to be the slaves of the bankers, and pay the cost of your own slavery, then let bankers continue to create money, and control credit.”

Additional details: Ron Paul is the only Presidential candidate who “gets” this.

John answers:

The answer is yes. Here are some excellent links describing how the Federal Reserve and other central banks work:

http://www.youtube.com/watch?v=KUynTd_nEvE&feature=player_embedded

http://www.youtube.com/watch?v=ZPWH5TlbloU

Mark asks…

Homework Help!!! Read Details!!?

ok well im 13 and im in world history. we have to write a paper on globalization. for my paper i need real world examples of the following:

1. supply chaining
2. offshoring
3. outsourcing
4. free trade

i tried using the internet, but that doesnt explain to me in a way i understand.
PLEASE help me or im gonna fail!! 🙁 if u can give me any real world examples of those terms i will love you ffffoooorrrrreeeevvvvveeeeerrrrrr!!!!!! thanx!!!

John answers:

First off, you can probably get more detailed answers from wikipedia.org anyway, as far as i can explain

1) supply chaining, means the management of a product’s logistic. It could be distribution network (eg. Where should dell manufacture their computers? What areas should a regional dell factory be serving? And how should dell transport the products to customers, by air? By land? By sea?) there can be other areas, distribution network is just one of them.

2) offshoring means relocating of business processes or activities of a company overseas. It can be both internal (activity done by another branch of the country in another country eg. Manufacturing of parts in china as labour is cheaper while assembling in US) external (activity done by another company in another country eg. Call centers in india)

3) outsourcing means relocating business processes or activities to other company. It can be done both locally (another company that is in the same city, state, country depending on definition of local) or overseas (another company in another country)

4) free trade refers to trading between countries without restriction on the goods. Restriction can come in the form of taxes, legislation, quotas, etc.

I am unsure if there could be other forms of meaning for free trade, but in general free trade refers to my explaination. Commonly heard are free trade agreements where country leaders agree between one and another to allow trading between them without much sanctions.

Of course, there are still legal boundaries even if free trade agreements are in place. Like the trading of illegal weapons or drugs which will be highly prohibited.

James asks…

Is there free Yahoo Paper Trading service?

Is there free paper trading service on Yahoo Finance? if yes how can I start Paper Trading? I could not find any link for Paper Trading on Yahoo website.

John answers:

Yahoo does not have a simulator that I’m aware of, but there are several others.

Investopedia has an excellent one, and is a good site for learning and defining financial terms.

Http://www.investopedia.com/university/buildingblocks.asp#axzz1b0PGJiek
http://yourportfolio101.com/index.html/links/menu.html
http://www.howthemarketworks.com./
http://stockmarket.makemoneyideas.in/
http://www.fool.com/school/basics/basics…
Http://beginnersinvest.about.com/library…
Http://www.mysharetrading.com
http://www.fool.com/
http://www.dummies.com/Section/Content-Search.id-324209.html?query=investment+analysis

A collection of trading games and simulators:
http://www.stock-market-game.net/

You can also type in the Search Y! Answers box at the top of this screen for “how to invest,” and get lots of answers.

Betty asks…

what’s a safe and free trading tool I can use to teach myself day trading?

Are there good free trading tools that I can use for practice (not using real money) that are safe for my computer or that I wouldn’t have to download? I’d appreciate any advice or additional recommendations. 🙂 Thanks and Happy Holidays!

John answers:

To be a trader you must first learn how to invest. You must know the products and the markets in which they trade and more importantly you must know the rules that govern those products and markets. So you must know what you’re doing, why you’re doing it, and how to do it. You should start by reading “Investing for Dummies” by Eric Tyson.

Here’s a list of books you should consider, at least read half of them
Bulls Make Money, Bears Make Money, Pigs Get Slaughtered, by Gallea
How to Trade in Stocks, Jesse Livermore
Millionaire Traders, Lein & Schlosberg
One Up on Wall Street by Peter Lynch
Reminiscences of a Stock Operator, Edwin Lefevre
The Disciplined Trader, Mark Douglas
Trader Vic-Methods of a Wall Street Master, Victor Sperandeo
Trader Vic II-Principles of Professional Speculation, Victor Sperandeo
Trading for a Living, by Alexander Elder
Trading in the Zone, Mark Douglas

And when you think you want to trade, try some paper trading to test your skills without spending you money http://simulatorinvestopedia.com/ http://www.moneyworks4me.com/
and/or http://www.tradingsimulation.com/

Before you enter your first order you need to address four major policies and have very strong discipline to follow them

1 – You need a written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself. Always use stops either to protect you on the down side or to lock in profits on the up side. Never trade on emotions, when emotions get involved walk away. Don’t try to out-smart the market, you’ll loose but if you always take what the market is willing to give you, you’ll be successful. Other words, you don’t trade against the trend since the market is always right. And NEVER trade on emotions, once you let emotions in your trades you will loose

2 – A written money management program is essential. Remember never invest 100% of your capital into any one security and never have 100% of your capital invested. Never go into a trade without knowing when and where you are going to get out of it. Never let a loss on a trade get greater than 8%-10%, always take you loss and walk away – don’t loose more than you need to and don’t be afraid to take the loss. Remember you never can get hurt taking a profit. Never average down, but you can average up.

3 – You must have sufficient trading/investment capital. Use your own money, there’s no need to go into debt so that you can trade and/or invest. Margin can be used but only with restraints, never let the account wall below 45% equity. Unless you fully understand margins you should not use it.

4 – A full and complete understanding of the rules & regulations of the industry. If your going to play in the game be sure you know the rules of the game and always follow them.

Sandra asks…

How do patents make global trade unfair?

Geography homework asks me to explain how patents can affect free trade and from what I can gather, they make global trade unfair. How do they do this?

John answers:

If this is a geography question, it should really be under the geography section

‘unfair’ would be an inaccurate term to use; you’re looking for a word much more like ‘friction’ or ‘over-protective’

patents are paper rights to possessing certain intangible asset such as an idea, or an invention. What they do is to stop other people from implementing the same thing as the owner of the patent. The patents can last for up to 10 years in the UK, but I am not sure about elsewhere. I.e. Temporary but significant delay

In a commercial sense, I can’t see how patents would make things unfair for global trade because anyone can apply for patents and protect their own innovation from being copied. I.e. Gain some rights to ownership of something. This can be particularly important if your invention is something everybody wants and people with money can try to nudge your small company out of the market (the inventor and small company will struggle to grow and capitalise on the worth of the invention). In fact, patents prevent net worth of small companies and the inventors from diminishing and can encourage more innovation. I.e. If patents were not around, why would the inventor keep on coming up with new ideas if all happens is they get kicked out of the market they created or help expand?

In another sense, I can see where patents can hinder progress. Much of the debate going around concerning innovation is that it can stop people from collaborating. E.g. Firefox is a web browser that quickly became popular because of its open source collaboration. I.e. People from all backgrounds can contribute to the coding and design of the browser to help improve it, irrespective if it’s from the consumer, student, or competitor. Some of the discussions out there suggests that the best source of innovation is usually via collaboration, and it becomes much more difficult when people have to do it individually and recognition is awarded individually. E.g. A number of nobel laureates are awarded for papers they have co-written with other professors, lecturers, and researchers across different universities.

Referring to free trade, patents can prevent other countries from benefiting from the spillover effect of innovation. Some areas pose great opportunities for trade but are indirectly hindered by policy and patents.
Traditional economic theory suggests patents can tend towards monopolies and raise prices of patented goods. If patents were not around, prices can fall and become more affordable for the masses, including those in poor countries. This is because a larger number of producers will join the market and competition forces the price down. The more cost efficient the producer, the more the price can potentially come down.

On an international scale, you can sort of say patents can create comparative advantages within the free trade area because one country can only produce the goods or services the other countries demand. The country’s government indirectly benefits via tax and economic prosperity, but most of the benefit should go to the owner of the patent. Other countries will have import tax based on the agreed rate of the union.

Do note patents are only as good as the law that holds it up. E.g. If international law does not hold for the type of patent you have applied for, then indirectly, producers outside certain regions (EU, US, etc.) can copy it. If the region is within a free trade area, then all countries within that union will support patented laws of all other countries it is part of. E.g. EU. Then again, if any other country wants to trade within the free trade area, they will need to adopt laws of the union, otherwise their opportunities to trade within the area is limited. This is the only situation that I could think of where your question applies.

Hope this helps

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