Online Trading: The Confidence Game

So, I tell you that you can make a lot of money. I tell you that you do not need a lot of money to start in order to get involve. I tell you that there are others that have become rich, even wealthy doing this. I tell you that this is an investment, not gambling. I tell you that I am regulated to some degree. I show you where you can go to check me out.  I show you testimonials. You listen and become interested. It sounds to good to be true but the evidence is staring at you in the face. I tell you that all you have to do is read some books, take a course and learn some strategies. It all sounds so easy, feasible and practical. You want to give it a try.

In the world of online trading, you will find all of the above. The trade can be in stocks, commodities, or currencies. All you have to do is set up an online account, deposit the required funds and start trading. The problem is that you will most likely loose all your initial investment and more if you continue. Are there people who are successful at online trading? The answer is yes. But those people are few in numbers and they are usually people who have been trading for years if not decades. The other factor is that those people have the capital to stay in the game. This is very important because in trading; you will suffer losses. If you cannot weather these losses, you will never pick enough winners to stay in the game or for that matter be successful.

A Ponzi scheme works in such a way that the people at the top of the pyramid end up with all the money. The online trading game is similar to a Ponzi scheme. Research shows that most traders lose money. The few that make money collect it from the losers who lost the money. In other words, the 70 - 80 % who lose money, pay out to the 20 - 30 % that makes money. But, it does not stop there. Even if you make money, fees and taxes eat away at your profit. So, you end up paying another group of people at the top of the pyramid besides the game maker. You end up paying the tax man or woman and endure more losses. In the end, it's all a confidence game. Only this game is to some degree legal and regulated, sometimes (see: Binary Options).

Remember the old adage, If it is to good to be true, it probably isn't. You would be better serve to take part in your companies 401k. You would be better off investing in an index mutual fund, if you have money to spare after the 401k contribution. And if you still have more money burning a hole in your pocket, take a tally of the things you most use (see: electronics, social networks, household items, personal care products, etc.). Research the companies who makes these items and invest in them by buying their stocks. It's the long game when it comes to this type of investment. But it will be well worth it. A lot of these companies will be well established and profitable. It may not be as fancy as saying, "I'm a trader." It will in the end allow you to say that you are an investor, a savvy one.

Big Oil's Panic Mode: Part 2

The world wide oil industry is fighting against progress. Yes, it is true that supply out strips demand when it comes to oil. OPEC has decided not to stabilize the price. It's their play on forcing the U.S. to cut back on production or bring their oil manufacturing to a stand still. The U.S. is leading in oil production these days but for how long. With prices this low, it becomes non-feasible to continue oil production in the U.S. This also applies for the Canadians. OPEC seems to believe if they can allow the price to plunge, they will survive and be the last man standing.

The fact of the matter is, if progress in new energy developments continue, oil may become obsolete. If not obsolete, its use may eventually be so minuscule that the industry collapse. In reference to new energy, electric vehicles are all the rage. There is also talk of hydrogen fuel cell vehicles. A fusion power plant was mention to be feasible, viable and on track to be online in the next ten years (see: Lockheed Martin/ Fusion Plant). All of this spells bad news for the oil industry. So as an industry, they allow oil prices to drop and stay that way. This will encourage the populist to remain dependent on oil. With gas prices at $2.00 per gallon in some areas, Our views on alternative energy is changing ever so slightly. More people are buying gas guzzling vehicles because of this.

The question now is for how long will the price of oil remain low. At some point, the oil industry may decide, progress is inevitable, let's get all we can get before the end comes. At that point, the price of oil will go up and the industry will gouge us for all they can. But for now, the low prices reminds us of how great the use of oil and gas is. It reminds us of how easy on the wallet it can be. Those are strong reminders and how much they will affect us remains to be seen. While it appears that OPEC is in a fight against other oil producers, it is apparent that what concerns all of them is the survival of their industry in the form of one entity. Electric cars do not need gas.

Division 1 College Football & Basketball: Indentured Servitude

The definition of an indentured servant is a person under contract to work for another person for a definite period of time, usually without pay but in exchange for free passage to a new country. During the seventeenth century most of the white laborers in Maryland and Virginia came from England as indentured servants. (Definition from Dictionary.com)

The players at the top 100 or more Division 1 schools who play football and basketball are likened to indentured servants. They work without pay and their free passage is the so-called free tuition to the school. The tuition is not even guaranteed for four years or upon graduation. It can be canceled or revoked on a yearly basis. It is based on your production as a player.

Indentured Servitude is illegal in the United States of America. The laws are mainly used to protect migrant workers. The players at these schools face similar dilemmas when it comes to pay. In the case of the schools, millions, hundreds of millions of dollars are being generated and the players see none of it. Without the players, the revenue would not be generated. That is a matter of fact.

The argument of the schools are that they do not want to classify the players as employees. The problem here is that the business of sports is generating staggering amounts of money. The generation of the income is due to employees such as coaches, assistant coaches and staffs at every level. These persons tend to the "student-athlete." Guess what, the student athletes are also employees regardless of what one wants to classify them as. These schools are some of the oldest institutions in our nation. They have business centers and are more than capable of figuring out a way to pay these athletes.