Is The Euro Doomed?
When the EuroZone formed in the late 1990’s, Milton Friedman, who is widely regarded as one of the greatest economists of the 20thcentury, was a very outspoken critic of the idea. In fact, he is notably remembered for confidently communicating his belief that the Euro would not even be healthy to survive once it hit its first major recession. “It seems to me that Europe, especially with the addition of more countries, is becoming ever-more susceptible to any asymmetric shock. Sooner or later, when the global economy hits a real bump, Europe’s internal contradictions will tear it apart.” (Milton Friedman)
Just as Friedman foresaw over a decade ago, the EuroZone is now experiencing major threats to its very survival. As forex traders, regardless of whether our strategy is technical or fundamental in nature, it is very helpful to comprehend these key systemic risks that are very present in the FX Market, and to comprehend how these risks play out in the currency value of the Euro.
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As we are all very aware, the global economy has experienced a very deep recession as a result of the global credit crisis of 2008. The general path of a Central Bank during a recession is one of low interest rates, simple credit, and financial stimulus. Central Banks achievement this path in hopes of stimulating a bleeding economy. During a recession, the economy slows, workers are ordered off, and, as a result, consumers start to spend less. This can be a death cycle. If consumers continue to not spend money, then the economy has no chance of rebounding, and companies will not start to grow again, which means unemployment will continue to increase, etc.
This deadly cycle of consumers not spending, companies not growing, companies therefore not hiring, and consumers continuing not to spend, is why Central Banks lower interest rates and infuse monetary stimulus into the economy during a recession. They are filling the void the consumer has left. They do this in hopes of “stimulating” the economy back to healthy growth. Once the economy shows signs of strength, the Central Bank slowly begins to remove monetary stimulus from the economy. This is the sticking point, though. If stimulus is removed too early, a fragile economy might slip back into recession.
This is the current say of the EuroZone, and why Friedman thought the Euro would not survive through a major recession. Not all countries rebound from a recession at the same speed or velocity. In the EuroZone, however, all countries are subject to the same fate meted out by the Central Bank. If Germany is rebounding well, and growth is steadily increasing, they will need to increase interest rates in order to stem inflation. However, if Greece is still lagging in growth, they need low interest rates to continue to stimulate their economy. If interest rates are raised in order to stem Germany’s inflation, this will have dire effects on a struggling Greek economy, and it will act as a very real threat to thrusting Greece back into a deeper recession.
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A Study the Strategies Issue in Indian Banking Sector
1.0 INDIAN BANKING SYSTEM
A banking company in India has been defined in the banking companiesact,1949.as one “which transacts the business of banking which means the accepting, for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdraw healthy by cheque, draft, order or otherwise.” Most of the activities a Bank performs are derived from the above definition. In addition, Banks are granted to perform certain activities which are ancillary to this business of accepting deposits and lending. A bank’s relationship with the public, therefore, revolves around accepting deposits and lending money. Another activity which is assuming increasing importance is transfer of money – both domestic and foreign – from one place to another. This activity is generally known as “remittance business” in banking parlance. The so called forex (foreign exchange) business is largely a part of remittance albeit it involves buying and selling of foreign currencies.
Functioning of a Bank is among the more complicated of corporate operations. Since Banking involves dealing directly with money, governments in most countries regulate this sector rather stringently. In India, the regulation traditionally has been very strict and in the view of certain quarters, responsible for the present condition of banks, where NPAs are of a very high order. The process of financial reforms, which started in 1991, has cleared the cobwebs somewhat but a lot remains to be done. The multiplicity of policy and regulations that a Bank has to work with makes its operations even more complicated, sometimes bordering on illogical. This section, which is also intended for banking professional, attempts to give an overview of the functions in as easy manner as possible. Banking Regulation Act of India, 1949 defines Banking as “accepting, for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdraw healthy by cheques, draft, and order or otherwise.”
KINDS OF BANKS
Financial stipulations in a modern economy are of a diverse nature, distinctive variety and massive magnitude. Hence, different types of banks have been instituted to cater to the varying needs of the community. Banks in the organized sector can be classified in to the following
1. COMMERCIAL BANKS
Commercial banks are joint stock companies dealing in money and credit. In India, however there is a blended banking system, prior to July 1969, all the commercial banks-73 scheduled and 26 non-scheduled banks, except the say bank of India and its subsidiaries-were under the control of private sector. On July 19, 1969, however, 14mejor commercial banks with deposits of over 50 Corers were nationalized. In April 1980, another six commercial banks of high standing were taken over by the government.
2. CO-OPERATIVE BANKS
Co-operative banks are a group of financial institutions organized under the viands of the Co-operative societies Act of the states. The main neutral of co-operative banks is to wage cheap credits to their members. They are based on the principle of self-reliance and mutual co-operation. Co-operative banking system in India has the shape of a pyramid a three tier structure, constituted by:
3. SPECIALIZED BANKS
There are specialized forms of banks catering to some special needs with this one-of-a-kind nature of activities. Foreign exchange banks, Industrial banks, Development banks, Land development banks, Exim bank are important.
4. CENTRAL BANK
A central bank is the apex financial institution in the banking and financial system of a country. It is regarded as the highest monetary dominance in the country. It acts as the leader of the money market. It supervises, control and regulates the activities of the commercial banks. It is a service oriented financial institution. India’s central bank is the reserve bank of India established in 1935.and it was nationalized in 1949.It is free from parliamentary control.
ROLE OF BANKS IN A DEVELOPING ECONOMY
Banks play a very important and dynamic role in the economic life of apiece modern state. A study of the economic history of western country shows that without the evolution of commercial banks in the 18th and 19th centuries, the industrial revolution would not have taken place in Europe. The economic importance of commercial banks to the developing countries might be viewed thus:
1. PROMOTING CAPITAL FORMATION
A developing economy needs a high rate of capital formation to accelerate the tempo of economic development, but the rate of capital formation depends upon the rate of saving. Unfortunately, in underdeveloped countries, saving is very low. Banks afford facilities for saving and, thus encourage the habits of thrift and industry in the community. They mobilize the saint and dormant capital of the country and make it acquirable for productive purposes.
2. ENCOURAGING INNOVATION
Innovation is another bourgeois responsible for economic development. The entrepreneur in innovation is largely dependent on the manner in which bank credit is allocated and utilized in the process of economic growth. Bank credit enables entrepreneurs to innovate and invest, and thus uplift economic activity and progress.
3. MONETSATION
Banks are the manufactures of money and they grant many to play its role freely in the economy. Banks monetize debts and also assist the backward subsistence sector of the rural economy by extending their branches in to the rural areas. They must be replaced by the modern commercial bank’s branches.
4. INFLUENCE ECONOMIC ACTIVITY
Banks are in a position to influence economic activity in a country by their influence on the rate interest. They can influence the rate of interest in the money market through its supply of funds. Banks might follow a cheap money policy with low interest rates which will tend to stimulate economic activity.
5. FACILITATOR OF MONETARY POLICY
Thus monetary policy of a country should be conductive to economic development. But a well-developed banking system is on essential pre-condition to the effective implementation of monetary policy. Under-developed countries can't afford to ignore this fact.
PRINCIPLES OF BANK LENDING POLICIES
The main business of banking company is to grant loans and advances to traders
as well as commercial and industrial institutes. The most important use of banks money is lending. Yet, there are risks in lending. So the banks follow certain principles to minimize the risk:
1. SAFETY
Normally the banker uses the money of depositors in granting loans and advances. So first of all initially the banker while granting loans should think first of the country of depositor’s money. The purpose behind the country is to see the financial position of the borrower whether he can pay the debt as well as interest easily.
2. LIQUIDITY
It is a legal duty of a banker to pay on demand the total deposited money to the depositor. So the banker has to keep certain percent cash of the total deposits on hand. Moreover the bank allows loan. It is also for the addition of short term or productive capital. Such type of lending is recovered on demand.
3. PROFITABILITY
Commercial banking is profit earning institutes. Nationalized banks are also not an exception. They should have planning of deposits in a profitability way pay more interest to the depositors and more salary to the employees. Moreover the banker can also incur business cost and can give more benefits to customer.
4. PURPOSE OF LOAN
Banks never lend or advance for any type of purpose. The banks grant loans and advances for the country of its wealth, and certainty of recovery of loan and the bank lends only for productive purposes. For example, the bank gives such loan for the stipulation for unproductive purposes.
5. PRINCIPLE OF DIVERSIFICATION OF RISKS
While lending loans or advances the banks normally keep such securities and assets as a supports so that lending might be innocuous and secured. Suppose, any particular say is hit by disasters but the bank shall get benefits from the lending to another says units. Thus, he effect on the entire business of banking is reduced.
OBJECTIVES OF THE STUDY
The following are the main neutral of the studies.
1. To study the problem in financial crisis and money related query.
2. To evaluate banking is one of the most regulated businesses in the India.
3. To Analysis the role developing economy for the nation.
4. To study dynamic role in delivery and purchase of consumer durables.
Scope of the Study
All persons need money for individualized and commercial purposes. Banks are the oldest lending institutions in Indian scenario. They are providing all facilities to all citizens for their own purposes by their terms. To survive in this modern market apiece bank implements so many new innovative ideas, strategies, and advanced technologies. For that they give apiece and apiece minute detail about their institution and projects to Public. They are providing ample facilities to satisfy their customers i.e. Net Banking, Mobile Banking, Door to Door facility, Instant facility, Investment facility, Demat facility, Credit Card facility, Loans and Advances, Account artefact etc. And such banks get success to create their own image in public and corporate world. These banks always accept innovative notions in Indian banking scenario like Credit Cards, ATM machines, Risk Management etc. So, as a student business economics I take keen interest in Indian economy and for that banks are the main source of development.
So this must be the first choice for me to choose this topic. At this stage apiece mortal must know about new innovation, technology of procedure new schemes and new ventures.
METHODOLGY
Theoretical study conducted on the basis of secondary data, collected from books, journal and annual reports.
2. BANK PROFILE:
Indian Bank
Name of the Branch : Karaikal. [0090]
Date of Opening : 1971
District/Port Open : Karaikal/Port Town.
Category/Size : Large.
Population : Urban.
Computerisation : CBS.
Name of the Branch Head : R.Muralitharan,(Senior Branch Manager)
Staff Strength Officers : 06
Award Staff : 06
Sub Staff : 03
Productivity : Rs. 281.39 Lacs.
Branch Classification : Profit Centre.
Location of the Branch : No. 96-98 Bharathiyar Road, Karaikal-609607
Competition in the area : Nearly All Banks are functioning.
Potential Available : Situated in a Commercial Area with a number of shops around Scope for trade finance. Branch has to tap more trade finance.
Computerised : ATM/CBS.
Commercial Activity : Being a union territory, massive commercial Industrial activities are on.
TARGETS vis-à-vis ACHIEVEMENTS
Rupees in Lacs
Particulars
STRATEGIC ISSUES IN BANKING SERVICES
Strategic Planning is the process of examining the organizational external and internal environments; developing the appropriate mission, vision, and overall goals; identifying the general strategies to be pursued; and allocated resources.
• Mission is an organization’s current purpose or reason for existing.
• Vision is an organization’s fundamental aspirations and purpose that usually appeals to its member’s hearts and minds.
• Goals are what an organization is committed to achieving.
• Strategies are the major courses of action that an organization takes to achieves goals.
• Resource Allocation is the earmarking of money, through budgets, for various purposes.
• Downsizing Strategy signals an organization’s intent to rely on fewer resources primarily human-to accomplish its goals.
Tactical Planning is the process of making detailed decisions about what to do, which will do it, and how to do it-with a normal time and horizon of one year or less. The process generally includes:
• Choosing specific goals and the means of implementing the organization’s strategic plan,
• Deciding on courses of action for improving current operations, and
• Developing budgets for apiece department, division and project.
TOTAL QUALITY MANAGEMENT
While Total Quality Management has proven to be an effective process for improving organizational functioning, its value can only be assured through a comprehensive and well thought out implementation process. TQM is, in fact, a massive scale systems change, and guiding principles and considerations regarding this scale of change will be presented. Without attention to contextual factors, well intended changes might not be adequately designed. As another aspect of context, the expectations and perceptions of employees will be assessed, so that the implementation plan can address them. Specifically, sources of resistance to change and ways of dealing with them will be discussed. This is important to grant a change agent to anticipate resistances and design for them, so that the process does not bog down or stall. Next, a model of implementation will be presented, including a discussion of key principles. Visionary leadership will be offered as an overriding appearance for someone instituting TQM. In current years the literature on change management and leadership has grown steadily, and applications based on research findings will be more likely to succeed. Use of tested principles will also enable the change agent to refrain reinventing the proverbial wheel. Implementation principles will be followed by a review of steps in managing the transition to the new system and ways of helping institutionalize the process as part of the organization’s culture. Finally, some miscellaneous do’s and don’ts will be offered.
Planned change processes often work, if conceptualized and implemented properly; but, unfortunately, apiece organization is different, and the processes are often adopted “off the shelf” “the ‘appliance model of organizational change’: purchase a complete program, like a ‘quality circle package,’ from a dealer, plug it in, and hope that it runs by itself” (Kanter, 1983, 249). Alternatively, especially in the underfunded public and not for profit sectors, partial applications are tried, and in spite of management and employee commitment do not bear fruit. This chapter will focus on ways of preventing some of these disappointments. In summary, the purpose here is to review principles of effective planned change implementation and advocate specific TQM applications. Several assumptions are proposed:
1. TQM is a viable and effective planned change method, when properly installed
2. Not all organizations are appropriate or ready for TQM
3. Preconditions (appropriateness, readiness) for successful TQM can sometimes be created
4. Leadership commitment to a massive scale, long term, and cultural change is necessary.
While problems in adapting TQM in government and social service organizations have been identified, TQM can be useful in such organizations if properly modified.
For survival, banks have to make efforts to improve their calibre and competitiveness by planning and taking innovative in start areas:
· Increase emphasis on customer focused activities
· Intro a “total quality” program
· Developing differential value added services
· Educating employees through involvement programs
· Increase calibre through management and system
· Increase effectiveness of product development
· Developing product with lower uses costs
TQM principles
· Customer satisfaction
· Plan-do-check-act (PDCA) cycle
· Management by ‘fact’ – 5Ws (what, why, who, when, and where) + 1H(how) approach
· Respect for people
TQM elements
· Total employee involvement (TEI)
· Total waste elimination (TWE)
· Total calibre control (TQC)
TQM focus areas
· Customer satisfaction
· Product quality
· Plant reliability
· Waste elimination
Benefits reached through TQM
· Increased focus on the customer
· Mindset of ‘continuous improvement’
· Superior product quality
· Superior systems and procedures
· Superior cross-functional teamwork
· Increased plant reliability
· Waste elimination in offices and factories.
KNOWLEDGE MANAGEMENT
According to Peter Drucker and justice Bell, the management Gurus knowledge is the only meaningful economic resource. Knowledge management can be defined as a systematic and integrative process of coordinating organization-wide activities of acquiring, creating, storing, sharing, diffusing, developing and deploying knowledge by individual and groups in the motion of major organizational goals. It also involves the creation of an interacting learning environment where organization members transfer and share what they know; and apply knowledge to solve problems, innovate and create new knowledge.
Knowledge management is as much about people and culture as it is about technology. Knowledge management thrives only when the human communication network operates freely crossways the shortest path between the knowledge providers and knowledge seekers. There must be a culture that promotes and rewards the pooling together of knowledge resources. Thus organizations must build a culture that motivates people to create, share and use knowledge.
After the preoccupation with system and procedures to collect data ad translate it into information, its time for firms to focus on the next plane- knowledge. Knowledge management is not a buzzword. Each knowledge management solution, if currently implemented, has definite measurable business benefits.
Future business success increasingly depends on the retention and the creative use of the knowledge ideas and experiences of an organization and its employees. And in knowledge economy corporations need for workers will be more than the workers need for employer.
INNOVATION IN BANK
Innovation drives organizations to grow, prosper and transform in sync with the changes in the environment, both internal and external. Banking is no exception to this. In fact, this sector has witnessed immoderate transformation of late, based on many innovations in products, processes, services, systems, business models, technology, governance and regulation. A liberalized and globalize financial infrastructure has provided an additional impetus to this gigantic effort.
The pervasive influence of information technology has revolutionaries banking. Transaction costs have crumbled and handling of astronomical number of transactions in no time has become a reality. Internationally, the number brick and mortar structure has been rapidly yielding ground to click and order electronic banking with a plethora of new products. Banking has become boundary less and virtual with a 24 * 7 model. Banks who strongly rely on the merits of relationship banking’ as a time tested way of targeting and serving clients, have readily embraced Customer Relationship Management (CRM), with sharp focus on customer centricity, facilitated by the availability of superior technology. CRM has, therefore, become the new mantra in customer service management, which is both relationship based and information intensive.
Risk management is no longer a mere regulatory issue.basel-2 has accorded a primacy of place to this fascinating exercise by repositioning it as the core of banking. We now see the evolution of many novel deferral products like credit derivatives, especially the Credit Risk Transfer (CRT) mechanism, as a consequence. CRT, characterized by significant product innovation, is a very useful credit risk management tool that enhances liquidity and market efficiency. Securitization is yet another example in this regard, whose strategic use has been rapidly rising globally. So is outsourcing.
TECHNOLOGY IN BANKING
Nobel Laureate Robert Solow had once remarked that individualized are seen everywhere excepting in productivity statistics. More current developments have shown how far this say of affairs has changed. Innovation in technology and worldwide revolution in information and communication technology (ICT) have emerged as dynamic sources of productivity growth. The relationship between IT and banking is fundamentally symbiotic. In the banking sector, IT can reduce costs, increase volumes, and assist customized products; similarly, IT requires banking and financial services
to assist its growth. As far as the banking system is concerned, the payment system is perhaps the most important mechanism through which such interactive dynamics gets manifested. Recognizing the importance of payments and settlement systems in the economy, we have embarked on technology based solutions for the improvement of the payment and settlement system infrastructure, coupled with the introduction of new payment products such as the computerized settlement of clearing transactions, use of Magnetic Ink Character Recognition (MICR) technology for cheque clearing which currently accounts for 65 per cent of the value of cheques processed in the country, the computerization of Government Accounts and Currency Chest transactions, operationalisation of Delivery versus Payment (DvP) for Government securities transactions. Two-way inter-city cheque collection and imaging have been operationalised at the four metros. The coverage of Electronic Clearing Service (Debit and Credit) has been significantly expanded to encourage non-paper based funds movement and develop the supplying of a centralized artefact for effecting payments. The scheme for Electronic Funds Transfer operated by the Reserve Bank has been significantly augmented and is now acquirable crossways thirteen major cities. The scheme, which was originally intended for small value transactions, is processing high value (upto Rs.2 crore) from October 1, 2001. The Centralized Funds Management System (CFMS), which would enable banks to obtain consolidated account-wise and centre-wise positions of their balances with all 17 offices of the Deposits Accounts Departments of the Reserve Bank, has begun to be implemented in a phased manner from November 2001.
A holistic approach has been adopted towards designing and development of a modern, robust, efficient, secure and integrated payment and settlement system taking into statement certain aspects relating to potential risks, legal framework and the impact on the operational framework of monetary policy. The approach to the modernization of the
payment and settlement system in India has been three-pronged: (a) consolidation, (b) development, and (c) integration. The consolidation of the existing payment systems revolves around strengthening Computerized Cheque clearing, expanding the reach of Electronic Clearing Services and Electronic Funds Transfer by providing for systems with the latest levels of technology. The critical elements in the developmental strategy are the opening of new clearing houses, interconnection of clearing houses through the INFINET; optimizing the deployment of resources by banks through Real Time Gross Settlement System, Centralized Funds Management System (CFMS); Negotiated Dealing System (NDS) and the Structured Financial Messaging Solution (SFMS). While integration of the various payment products with the systems of individual banks is the thrust area, it requires a high degree of standardization within a bank and seamless interfaces crossways banks.
The setting up of the apex-level National Payments Council in Might 1999 and the operationalisation of the INFINET by the Institute for Development and Research in Banking Technology (IDRBT), Hyderabad have been some important developments in the direction of providing a communication network for the exclusive use of banks and financial institutions. Membership in the INFINET has been opened up to all banks in addition to those in the public sector. At the base of all inter-bank message transfers using the INFINET is the Structured Financial Messaging System (SFMS). It would serve as a secure communication carrier with templates for intra- and inter-bank messages in fixed message formats that will assist ‘straight through processing’. All inter-bank transactions would be stored and switched at the central hub at Hyderabad while intra bank messages will be switched and stored by the bank gateway. Security features of the SFMS would match international standards.
In order to maximize the benefits of such efforts, banks have to take pro-active measures to:
· further strengthen their infrastructure in respect of standardization, high levels
· of security and communication and networking;
· achieve inter-branch connectivity early;
· generalize the usage of the scheme of electronic funds transfer (EFT); and
· Institute arrangements for an RTGS environment online with a view to integrating into a secure and consolidated payment system.
Information technology has immense untapped potential in banking. Strengthening of information technology in banks could improve the effectiveness of asset-liability management in banks. Building up of a related data-base on a real time basis would enhance the forecasting of liquidity greatly even at the branch level. This could contribute to enhancing the risk management abilities of banks.
REGULATIONS AND COMPLIANCE
Progressive strengthening, deepening and refinement of the regulatory and supervisory system for the financial sector have been important elements of financial sector reforms. In the long run, it is the supervision and regulation function that is critical in safeguarding financial stability. There is also some evidence that proactive and effective supervision contributes to the efficiency of financial intermediation. Financial sector supervision is expected to become increasingly risk-based and concerned with validating systems rather than setting them. This will entail procedures for sound internal evaluation of risk for banks. As mentioned earlier, bank managements will have to develop internal capital assessment processes in accordance with their risk profile and control environment. These internal processes would then be subjected to review and supervisory intervention if necessary. The emphasis will be on evaluating the calibre of risk management and the adequacy of risk containment. In such an environment, credibility assigned by markets to risk disclosures will hold only if they are validated by supervisors. Thus effective and appropriate supervision is critical for the effectiveness of capital stipulations and market discipline.
In certain areas, as for instance, in the urban cooperative banking segment, the regulatory stipulations leave considerable scope for regulatory arbitrage and even circumvention. The problem is rendered more complex by the existence of regulatory overlap between the Central Government, the Say Governments and the Reserve Bank. Regulatory overlap has impeded the speed of regulatory response to emerging problems. The need for removing multiple regulatory jurisdictions over the cooperative banking sector has been reiterated on several occasions. In this regard, the Reserve Bank has proposed the setting up of an apex supervisory body for urban cooperative banks under the control of a high-level supervisory board consisting of representatives of the Central governments, the Say governments, the Reserve Bank and experts. The apex body is expected to ensure compliance with prudential stipulations and also supervise on-site inspections and off-site surveillance.
Recent developments in certain segments of the financial sector have also brought to the fore issues relating to corporate governance in banks. As part of on-going reforms, boards have been given greater autonomy to prescribe internal control guidelines, risk management and procedures for market discipline and accountability. It is extremely important that greater vigilance over adherence to these norms goes hand-in-hand with greater autonomy. Current evidence of transgression of prudential guidelines by a few banks has raised the issue of the audit and supervisory functions of boards. As we move towards a more deregulated financial regime, these functions have to be transferred from either the Government or the Reserve Bank to bank boards. This imposes a greater responsibility and accountability on the bank management. It is in this context that a consultative group of directors of choose banks and other experts has been set up to advocate measures to strengthen the internal supervisory role of boards. The neutral is to obtain a feedback on how boards function vis-à-vis compliance with prudential norms, transparency and disclosure, functioning of the audit committee, etc., and to devise effective mechanisms for ensuring management discipline.
Several other initiatives in improving the supervisory function have been undertaken, including a prudential supervisory reporting system for financial institutions, improvements in procedures for financial inspection, sensitizing the general public for superior regulation of the activities of NBFCs and enactment of appropriate legislation to protect depositor interests in some States. Major legal reforms have been initiated in areas
such as security laws, the Negotiable Instruments Act, bank frauds and the regulatory framework of banking. The Reserve Bank has also accepted the principle of transfer of ownership to the Government in respect of some financial institutions in view of the conflict of interest that might arise in the conduct of its supervisory function. It is expected that these initiatives will pave the way for an efficient, and risk-based supervisory environment in India.
The largest set of consolidated regulations that mandate integrity of data in India are the IT Act and SEBI’s clause 49 for listed companies. These regulations do not currently enforce the kind of security standards that are common in Europe and the US. In a global economy, however, no company is an island and India Inc is adopting US and European compliance procedures and certifications such as Sarbanes Oxley, Safe Harbour, BS, and ISO.
Compliance, regulatory or otherwise, does not directly concern the IT department. In manufacturing for instance, compliance controls don’t really involve system security, and a massive part of the calibre control required by authorities can't be imposed or enforced using IT. Companies that deal with sensitive information, financial services and BPOs, banks, MNC subsidiaries or those with plans to expand beyond Indian shores are all affected. These will continue to make strides towards compliance. For the mediumscale segment (Rs 100-300 crore turnover), security and audits are not a priority. This segment is comfortable with public mail servers, and exchanging information over not very secure connections.
CORPORATE GOVERNANCE – CODE OF CONDUCT
1. Need and neutral of the Code
Clause 49 of the Listing agreement entered into with the Stock Exchanges, requires, as part of Corporate Governance the listed entities to lay down a Code of Conduct for Directors on the Board of an entity and its Senior Management. The term “Senior Management” shall mean organisation of the company who are members of its core management team excluding the Board of Directors. This would also include all members of management, one level below the Executive Directors including all functional heads.
2. Bank’s Belief System
This Code of Conduct attempts to set forth the guiding principles on which the Bank shall operate and conduct its regular business with its multitudinous stakeholders, government and regulatory agencies, media and anyone else with whom it is connected. It recognizes that the Bank is a trustee and custodian of public money and in order to fulfill fiduciary obligations and responsibilities, it has to maintain and continue to enjoy the trust and confidence of public at large.
The Bank acknowledges the need to uphold the integrity of apiece transaction it enters into and believes that honesty and integrity in its internal conduct would be judged by its external behavior. The bank shall be committed in all its actions to the interest of the countries in which it operates. The Bank is conscious of the reputation it carries amongst its customers and public at massive and shall endeavor to do all it can to sustain and improve upon the same in its discharge of obligations. The Bank shall continue to initiate policies, which are customer centric and which promote financial prudence.
A. General Standards of conduct
The Bank anticipates all Directors and members of the Core Management to exercise good judgment, to ensure the interests, country and welfare of customers, employees and other stakeholders and to maintain a cooperative, efficient, positive, harmonious and productive work environment and business organization. The Directors and members of the Core Management while discharging duties of their office must act honestly and with due diligence. They are expected to act with that amount of utmost care and prudence, which an ordinary mortal is expected to take in his/ her own business. These standards need to be applied while working in the premises of the Bank, at offsite locations where business is being conducted whether in India or abroad, at Bank-sponsored business and social events, or at any other place where they act as representatives of the Bank.
B. Conflict of Interest
A “conflict of interest” occurs when individualized interest of any member of the Board of Directors and of the Core management interferes or appears to interfere in any way with the interests of the Bank. Each member of the Board of Directors and Core Management has a responsibility to the Bank, its stakeholders and to apiece other. Even though this duty does not prevent them from engaging in individualized transactions and investments, it does demand that they refrain situations where a conflict of interest might occur or appear to occur. They are expected to perform their duties in a way that they do not conflict with the Bank’s interest such as :
· Employment /Outside Employment – The members of the Core Management are expected to devote their total attention to the business interests of the Bank. They are prohibited from engaging in any activity that interferes with their performance or responsibilities to the Bank or otherwise is in conflict with or prejudicial to the Bank.
· Business Interests – If any member of the Board of Directors and Core Management thinks about investment in securities issued by the Bank’s customer, supplier or competitor, they should ensure that these investments do not compromise their responsibilities to the Bank. Many factors including the size and nature of the investment; their capability to influence the Bank’s decisions, their access to confidential information of the Bank, or of the other entity, and the nature of the relationship between the Bank and the customer, supplier or competitor should be considered in determining whether a conflict exists. Additionally, they should disclose to the Bank any interest that they have which might conflict with the business of the Bank.
C. Applicable Laws
The Directors of the Bank and Core Management must comply with applicable laws,regulations, rules and regulatory orders. They should report any inadvertent non -compliance, if detected subsequently, to the concerned authorities.
D. Disclosure Standards
The Bank shall make full, fair, accurate, timely and meaningful disclosures in the periodic reports required to be filed with Government and Regulatory agencies. The members of Core Management of the bank shall initiate all actions deemed necessary for proper dissemination of relevant information to the Board of Directors, Auditors and other Statutory Agencies, as might be required by applicable laws, rules and regulations.
E. Use of Bank’s Assets and Resources
Each member of the Board of Directors and the Core Management has a duty to the Bank to advance its legitimate interests while dealing with the Bank’s assets and resources. Members of the Board of Directors and Core Management are prohibited from:
· Using Corporate property, information or position for individualized gain,
· Soliciting, demanding, accepting or concurring to accept anything of value from any mortal while dealing with the Bank’s assets and resources,
· Acting on behalf of the Bank in any transaction in which they or any of their relative(s) have a significant direct or indirect interest.
F. Confidentiality and Fair Dealings
(i) Bank’s confidential Information
· The Bank’s confidential information is a valuable asset. It includes all
trade related information, trade secrets, confidential and privileged information, customer information, employee related information, strategies, administration, research in connection with the Bank and commercial, legal, scientific, technical data that are either provided to or made acquirable apiece member of the Board of Directors and the core Management by the Bank either in paper form or electronic media to assist their work or that they are healthy to know or obtain access by virtue of their position with the Bank. All confidential information must be used for Bank’s business purposes only.
· This information includes the safeguarding, securing and proper disposal of confidential information in accordance with the Bank’s policy on maintaining and managing records. The obligation extends to confidential of third parties, which the Bank has rightfully received under non-disclosure agreements.
· To further the Bank’s business, confidential information might have to be disclosed to potential business partners. Such disclosures should be made after considering its potential benefits and risks. Care should be taken to divulge the most sensitive information, only after the stated potential business partner has signed a confidentiality agreement with the Bank.
· Any publication or publicly made statement that might be perceived or construed as attributable to the Bank, made outside the scope of any appropriate dominance in the Bank, should include a disclaimer that the publication or statement represents the views of the specific author and not the Bank.
(ii) Other Confidential Information
The bank has many kinds of business relationships with many companies and individuals. Sometimes, they will volunteer confidential information about their products or business plans to induce the Bank to enter into a business relationship. At other times, the Bank might request that a third celebration wage confidential information to permit the Bank to evaluate a potential business relationship with the party. Therefore, special care must be taken by the Board of Directors and members of the Core Management to handle the confidential information of others responsibly. Such confidential information should be handled in accordance with the agreements with such third parties.
· The Bank requires that apiece Director and the member of Core Management, General Managers should be fully compliant with the laws, statutes, rules and regulations that have the neutral of preventing unlawful gains of any nature whatsoever.
· Directors and members of Core Management shall not accept any offer, payment, promise to pay or authorization to pay any money, gift or anything of value from customers, suppliers, shareholders/ stakeholders etc that is perceived as intended, directly or indirectly, to influence any business decision, any act or unfortunate to act, any commission of fraud or opportunity for the commission of any fraud.
4. Good Corporate Governance Practices
Each member of the Board of Directors and Core Management of the Bank should adhere to the following so as to ensure compliance with good Corporate Governance practices.
(a) Dos
§ Attend Board meetings regularly and participate in the deliberations and discussions effectively.
§ Study the Board papers thoroughly and enquire about follow-up reports on definite time schedule.
§ Involve actively in the matter of formulation of general policies.
· Be familiar with the broad objectives of the Bank and policies ordered down by the Government and the various laws and legislations.
· Ensure confidentiality of the Bank’s agenda papers, notes and minutes.
(b) Don’ts
· Do not interfere in the day to day functioning of the Bank.
· Do not reveal any information relating to any constituent of the Bank to anyone.
· Do not display the logo / distinctive design of the Bank on their individualized visiting cards / letter heads.
· Do not sponsor any proposal relating to loans, investments, buildings or sites for Bank’s premises, enlistment or empanelment of contractors, architects, auditors, doctors, lawyers and other professionals etc.
· Do not do anything, which will interfere with and/ or be subversive of maintenance of discipline, good conduct and integrity of the staff.
5. Waivers
· Any relinquishment of any supplying of this Code of Conduct for a
member of the Bank’s Board of Directors or a member of the Core Management must be approved in writing by the Board of Directors of the Bank.
The matters covered in this Code of Conduct are of the utmost importance to the bank, its stakeholders and its business partners, and are essential to the Bank’s capability to conduct its business in accordance with its value system.
ENTREPRENEURSHIP
Entrepreneurship is the practice of starting new organizations, particularly new businesses generally in response to identified opportunities. Entrepreneurship is often a difficult undertaking, as a majority of new businesses fail. Entrepreneurial activities are substantially different depending on the type of organization that is being started. Entrepreneurship might involve creating many job opportunities.
Many “high-profile” entrepreneurial ventures seek venture capital or angel funding in order to raise capital to build the business. Many kinds of organizations now exist to support would-be entrepreneurs, including specialized government agencies, business incubators, science parks, and some NGOs. Schumpeter (1950), an entrepreneur is a mortal who is willing and healthy to convert a new intent or invention into a successful innovation. Entrepreneurship forces “creative destruction” crossways markets and industries, simultaneously creating new products and business models and eliminating others. In this way, creative destruction is largely responsible for the dynamism of industries and long-run economic growth. Despite Schumpeter’s primeval 20th-century contributions, the traditional microeconomic theory of economics has had tiny room for entrepreneurs in their theories.
Characteristics of entrepreneurship:-
- The entrepreneur, who has a vision and the enthusiasm for this vision, is the driving force of an entrepreneurship
- The vision is usually supported by a set of ideas that have not been aware by the majority of the market/industry
- The overall blueprint to realize the vision is clear, however details might be incomplete, flexible, and evolving
- The entrepreneur promotes the vision with an influential passion
- With a continual and deterministic mindset, the entrepreneur devises a set of entrepreneurial strategies to thrive for the vision
PERFORMANCE AND BENCHMARKING
• PERFORMANCE MANAGEMENT:-
Performance management is a systematic approach to improving worker productivity through a year-round, ongoing process of communicating and managing performance expectations. With Performance-based Management, performance improvement becomes the joint responsibility of employees and their managers. Generally there are two things which determine how successful a performance appraisal system is in place in an organization.
1) The contents/design of the performance appraisal form and
2) The manner in which Performance Appraisal is conducted.
While organizations lay great emphasis on the contents/design part, spending much of time, money and energy on designing most suitable, objective, comprehensive formats, it serves no purpose if the appraising process is not conducted properly.
Performance-based Management measures, evaluates and improves performance on the job. You can anticipate employee productivity to increase because performance assessments and performance feedback will always be job-related, even if the duties of a particular job expand or change. Furthermore, because this type of performance management focuses on productivity and not personality and since it involves ongoing, open, two-way communication between manager and employee, it greatly reduces many of the stereotypes, problems and anxieties associated with traditional labor-intensive
A benchmark is a point of reference for a measurement. The term presumably originates from the practice of making dimensional height measurements of an goal on a workbench using a graduated scale or similar tool, and using the surface of the workbench as the origin for the measurements.
Benchmarks are designed to mimic a particular type of workload on a component or system. “Synthetic” benchmarks do this by specially-created programs that impose the workload on the component. “Application” benchmarks, instead, run actual real-world programs on the system. Whilst application benchmarks usually give a much superior measure of real-world performance on a given system, synthetic benchmarks still have their use for testing out individual components, like a hard disk or networking device. Personal manufacturers have a long history of trying to set up their systems to give unrealistically high performance on benchmark tests that is not replicated in real usage. For instance, during the 1980s some compilers could detect a specific mathematical operation used in a well-known floating-point benchmark and replace the operation with a mathematically-equivalent operation that was much faster. However, such a transformation was rarely useful outside the benchmark. Manufacturers commonly report only those benchmarks (or aspects of benchmarks) that show their products in the ideal light. They also have been known to mis-represent the significance of benchmarks, again to show their products in the ideal doable light. Taken together, these practices are called bench-marketing.
Users are suggested to take benchmarks, particularly those provided by manufacturers themselves, with ample quantities of salt. If performance is really critical, the only benchmark that matters is the actual workload that the system is to be used for. If that is not possible, benchmarks that resemble real workloads as closely as doable should be used, and even then used with skepticism. It is quite doable for system A to outperform system B when running program “furble” on workload X (the workload in the benchmark), and the order to be reversed with the same program on your own workload.
• BENCHMARKING:-
Benchmarking (Comparing) is a selective method of finding out how and why some companies can perform tasks much superior than other companies. There can be as much as a tenfold difference in the quality, speed and cost-performance of an average company versus a world-class company.
It involves the following seven steps
1) Determine functions to benchmark.
2) Identify the key performance variables to measure.
3) Identify the best-in-class companies.
4) Measure performance of best-in-class companies
5) Measures the company’s performance.
6) Specify programs and actions to close the gap
7) Implement and monitor results
A company can refer “best practices” companies by asking employees, customers, suppliers and distributors what they rate as doing the best. Major Consulting Firms can also be contacted for this purpose. To keep costs under control, a company should focus primarily on benchmarking those critical tasks that deeply affect customer satisfaction and Cost Management and where substantially superior performance is known to exist.
Benchmarking is a process used in management and particularly strategic management, in which businesses use industry leaders as a model in developing their business practices. This involves determining where you need to improve, finding an organization that is exceptional in this area, then studying the company and applying it’s ideal practices in your firm. Benchmarking systematically studies the absolute ideal firms, then uses their ideal practices as
MiFi- Tech Support for Latest Mobile Networking
MiFi is the study of mobile network support technology. MiFi rental technology, as explained by the tech support professionals, transmits wireless signals to various Wi-Fi enabled gadgets like laptop, PDA, Smartphone, digital camera etc. In other words, MiFi is a trouble free business companion that can easily fit into your pocket.The advantage of mobile or cellular Wi-Fi access is its wider anger of coverage and mobility of course.
Today, at the time of globalization, travelling goes hand in hand with business. Especially, maintaining corporate relations with global partners is one most essential part of massive business processes. Now, with the advancement of wireless network technology, the task has become much easier.However, according to tech support researchers it is to be noted that, even though the modern networking technology has brought the remotest part closer, limitations are still there. So, let’s find how much a consumer can accomplish with MiFi tech support.
As mentioned in the first place, the greatest advantage of MiFi is its mobility and range of network coverage. You don’t always have to find a fixed Wi-Fi access point or signal. You can get online from any place wherever your cellular signal reaches. Even exciting thing is you can get uninterrupted net connection even while you are on move.The device looks no larger than a credit card. MiFi helps you catch latest news updates, weather forecasts, Forex rates and many more, apart from staying in touch with your near and dear ones. If you are into stock exchange, MiFi is going to be your greatest help.
Today, online tech support companies are providing help for superior usability.As network support specialists suggest, you need to pick the ideal model from acquirable 3G cellular data network types. First you need to subscribe to a cellular carrier’s data service and then purchase the MiFi card ideal compatible to your purpose. You can share your MiFi connection with up to 4 people. But, as tech support specialists suggest, it is superior not to work simultaneously on a single connection.The fact is, MiFi connections are tedious as compared to WiFi network services.
Therefore, splitting up the connection into multiple portals is roughly equivalent to actuation the extreme capability. So, it is rather sensible not to share the signal with anyone while you are downloading or simply working online. In fact, there is a limitation on monthly data transfer as well.However, with MiFi connectivity, you can have an off-site meeting with your colleagues sharing the signal with your group.
Another thing you must keep in mind that the Wi-Fi hotspots are only abundant in urban cities and other well developed areas. So, with a business that requires interior travelling, it is essential to have a cellular networking connection in hand. It doesn’t place you confined to a restricted area and can be used in each business purpose. It connects you everywhere. So we can conclude, MiFi connection is cool and you can do just anything staying away from your workplace.
Currency Trading Systems – Unleashing the Power of your Pc for Profit
Today, the world wide web and the power of desk top PC’s have revolutionized our lives and forex trading. Many traders are looking to personal and currency trading systems to help them make money and that’s what this article is all about.
Let’s first of all begin with a rather startling fact:
20 years ago 95% of forex traders lost money and this day the ratio remains the same – this is despite all the advances we have seen in forecasting software speed of news etc – the ratio still remains the same.
The fact is personal have helped us in some areas in terms of getting information and assist of use but personal are not the Holy Grail lets look at an example.
Neural Networks – Artificial Intelligence & Chaos Theory
Today the buzz words are neural networks, artificial intelligence and chaos theory and people build complicated personal programs around these theories.
Mostly these trading systems are clever but they don’t make money – Why?
Because they try and be too clever and have more elements to break than easy forex trading systems which have always worked ideal as there more robust.
Try this Easy System it’s FREE
My contention is that if you took a easy forex trading system like Richard Donchian’s four week rule ( which is free) and applied it ( look it up in our other articles) it would beat 95% or more of the clever over priced systems I have seen and this easy system is very easy – just 1 Rule!
Look at it and you will see why it works.
In forex you don’t get paid for being clever you get paid for being right with your trading signal- and that’s it.
Years ago in the 1990s I got talked into buying an artificial intelligence based program and to lease it in those days was $2,000 per month and I purchased the story of it being based on NASA technology etc and it was beautiful in its presentation all sorts of indicators flying around the screen I had never heard of and it wiped my equity $80,000 out in 3 weeks!
If I had thought about it – it was simply based on logic that wouldn’t work and had too many rules but I was blinded by science.
So the moral of this article is personal make our forex technical analysis easier and save time – but they should not be used to create complicated systems.
Your computer is more powerful than the one that was used to land man on the moon – but it won’t help you beat the market.
If you want a computerized currency trading system to make money, easy systems are ideal and always have been and you should remember this and make it an essential part of your forex education
Using Triangles, Stack Them Together to Make Profit
Triangles wage one of the most useful – and simple to execute – price pattern formations. An established triangle pattern – also referred to as a wedge or pennant – is a valuable signal prior to a relatively predictable price change. The odds favor a strong directional move from a breakout of a triangle pattern, especially in a continuation breakout of the prevailing trend. Continuation patterns indicate that the temporary pause in directional price movements is just that – only a temporary pause.
An Overview
There are four different types of triangles:
Symmetrical triangles consists of two converging trend lines (upper line goes lower and lower line goes higher). The point at which they cross is called top. Note the classic triangle formation on the regular chart of the USD/JPY pair below.
There must be at least four reversal points in order for a triangle to be recognized, but there might be more (for example, six: three peaks and three troughs).
In most cases the breakout occurs in the middle to three-quarters of the triangle width. If within three-quarters of the triangle width the breakout has not occurred, the subsequent price action will be weak and difficut to predict. The fewer price fluctuations inside the triangle, the more chances that trading volume will decrease (this is a common rule for most continuation patterns).
The formation ends when a trendline is broken. It is sometimes followed by a pull back to the trend line (if it was an upside breakout then it would be support level if downside breakout it would be the resistance level. The top of the triangle will be the important support/resistance level. To estimate if the triangle line breakout is true, please refer to the methods previously used to test trend-line breakouts.
Ascending triangle is a type of symmetrical triangle:
Its upper trend line is horizontal whereas the lower one is upward sloping. This is a bullish formation as in this scenario buyers are more active than sellers. When an ascending triangle develops, it is usually a good chance for an upside breakout to occur.
Ascending triangles are usually formed as a continuation pattern in an uptrend, but sometimes they can be found at the bottom of a downtrend, signaling a reversal. Even if the market is bearish this chart pattern should be considered as bullish.
Descending triangle is a bearish formation, a mirror image of an ascending triangle:
How to examine symmetrical, ascending and descending triangles:
1. Classic triangle has five lines (three downward and two upward or vice versa).
An expanding triangle (more often appears at highs) consists of three gradually rising highs and two gradually falling bottoms:
Tips On How To Improve Your Intraday Trading
Perhaps, you have heard of some Forex market traders, feeling upset when they adopt losses of about $100, however, thinking they are perfect on gaining $1000. Naturally these traders are not neutral. If you think about that you belong to the same category of currency market participants, it might signal that your intraday strategy is ruled by greed and fear to lose everything. Noticing $100 loss you would not accept it as it might result into emotional stress. The same happens when the price moved into the desired direction and traders feel that $1000 can be adequate gain. Nevertheless, such players of Forex currency trading waste an opportunity to increase their gains fearing that the price might reverse.
Professional intraday traders do not grant price fluctuations trouble themselves. They are not bothered, when some losses happen, they accept defeats as something usual. The main intent is to treat your small losses as steps to higher profit in Forex intraday trading. The trading results of a separate week, whether they are promising or absolutely frustrating, actually do not make up the whole picture of market trading results. These results should only boost people to draw some right conclusion. Thus, if a certain trading week brought to you profit, it might imply that the chosen Forex trading strategy was picked up accurately and the same methods and techniques should further be implemented. The sustained losses, should they arise should make one think that the trading system do not correspond to one`s needs or a trader is not capable to implement it in practice.
Emotional upturns and downturns are quite common says of mind of the beginning intraday traders. These traders who feel overwhelmed by emotions are suggested to resume trading with a free demo statement to master their trading skills as well as struggle against emotions. The main intent here is not to let fluctuations drive your mind staying neutral. Our life is full of events neutral in nature and only people treat them positive or negative. Have you ever witnessed a situation when the rate moves not into the desired direction and you begin looking for reasons why this trade is worth holding? This can be hazardous for Forex intraday trading plan fulfillment as it leads to disruption of their stops and big losses.
Being an intraday trader, your criteria of entering and exiting should be absolutely clear before starting trading. Shifting and adjusting of an intraday currency market strategy while trading with positions open is the worst thing that might happen in the process of Forex online trading. Shifting from responding to forecasting should be avoided. Intraday trader is suggested not feel or forecast market movement, he ought to know what exactly is happening being prepared for everything. Put actual price movement at the center of you market strategy not mixing long-term investment with intraday principles.
Many experts in Forex trading advocate to open a separate statement and use it for trading on fundamental news and releases. Again, starting with a free demo statement appears to be the ideal solution.
Trading systems and services – do they really work?
A bit about www.systemsfortraders.com and who we are
We are a group of 4 traders with over 50 years trading experience between us. All of us have been full time traders at some time or another, two of us still are, the other two still trade on a part-time basis. We set up and now run this new forum in our spare time with a specific purpose in mind.Many people find it extremely difficult to find absolutely independent and honest reviews of trading systems and services. This is because many products do not live up to their expectations (as advertised on their own websites) and many product reviews are carried out by other websites promoting and benefiting from selling that product. Our intention with this site is to assist a 100% independent and honest forum for such products.We use our spare time and our experience to produce initial reviews of as many of these products as we can. Reviews are based on our limited exposure, limited because we just do not have the time to review apiece product for months upon months and trade them all in parallel. However, this fits with our intentions, which is not to test apiece product to its extremes but to use our experience to get a general feel for it so as to be healthy to produce our initial review. To achieve this, for apiece product, we endeavour to do some form of back-testing/result verification and also run the product in real-time (on a small account) for at least a few weeks. Not ideal, however we believe our experience permits us to produce what we think about a reasonable initial review.Our intention is not to be Judge and Jury, our limited exposure does not permit this. Following our initial review, the hope is to promote further (hopefully honest) discussion and feedback within the forum from those with more experience of the product, who will add further value. All being well this will result in a forum that the whole trading community can come to rely on and benefit from, not just based our experiences but from the experiences of the collective.
We police (moderate) each single post on the site so all forums will stay on topic. It will not become another clogged up forum for others ego’s or for off-topic unrelated discussion.
Regarding affiliations, we are absolutely open and honest about this too. We do not and will not ever endorse or promote any of the products we review. Nor will we ever accept payment or otherwise for a favourable review. We do however set up affiliations where doable and ask, that, should anyone decide to purchase any of the products we review that they use our links. The commissions we receive from purchasing via our links (where available) will grant us to fund the future purchase of new systems and services to review as well as keep the site free.We also ask that users return to the forum from time to time and wage their own feedback. It is only through this interaction that the site can be of benefit to all of us.
SYSTEMS AND SERVICES WE REVIEW
Systems
These usually come in the form; peruse the website, part with your cash, receive a manual (usually in pdf form), read the manual, set your charts up, learn the strategy, trade the system, make the same profits advertised on the website, never look back.
Most of these systems are mechanical in use, thus, a certain set of criteria (indicators) have to meet certain conditions before placing a trade. For example, MACD (12,26,9) has to turn up, 10 Day Moving average has to be sloping up and RSI(14) must be less than 70 on a 15 minute chart. Please don’t trade this system, its an example. But basically, most systems are rules based (mechanical) and need to be set up and “learnt”. To us this involves reading the manual, setting up the charts, perceptive historic charts (back-testing) and live-running on a small (or demo) account. We will never use a system out of the box based on the claims on the website and we would never advise anyone else to do so.
Occasionally a system will come with an EA, this is short for Expert Advisor. These EA’s are usually pre-programmed indicators that are downloaded and applied to Meta Trader charts (they will only work on Meta Trader charts). This is quite a standard charting package offered by many of the Forex brokers out there so is usually not a problem for most. The EA is usually incorporated into a systems rules. E.g. it is basically another indicator that has to be a certain value, shape, etc. in order to place a trade. The advantage of some EA’s is that they create an audible signal when a trade is setting up/has set up and thus saves the trader some trouble and hopefully, some screen time.
Most systems we come crossways are Forex related, this makes sense, as it’s the largest (most traded) market and most flexible (its open 24×5 typically). Some systems are designed specifically for indicies, e.g. FTSE, DOW, S&P and occasionally we come crossways some commodity based systems too. However, it is clean to state that for each system we come crossways 2 out of 3 will be Forex based.
Services
This category could also be called Signal services at the moment as to date we have only really came crossways Signal services in this category. There are though, two quite distinct (Signal) services, “Standard” and Fixed Odds.
By “Standard” we are referring to signals which are executed, as trades/orders, using a standard brokerage (trading) statement or, particularly in the UK, with a Spread betting company. Fixed Odds is a newer form of trading than the “Standard” form and involves placing a trade direct with a Fixed Odds broker or with a Spread betting company which offers Fixed Odds functionality.
In the main, both types of service tend to start into what we class as, Set & Forget. This means one receives a signal (by email and/or sms), enters a trade/order and walks away. The intention here is to emulate the results advertised on the website, to which you will have signed up. Effort should be minimal. The individual should have to do tiny more than translate the signal into an order/trade with their broker and achievement away until instructed to do otherwise by the provider.
Robots
There are many of these in the market. For those of you that do not know what a Robot is, in basic terms, it’s a piece of software that runs on your brokerage statement (usually via Meta Trader) and trades automatically without any human interaction at all. All you have to do is purchase it, set it up, run it, achievement away, and it makes money whilst you eat, sleep, drink, etc.
We are not interested in them at all and have no interest in ever reviewing them. Those wishing to oppose Robots will find many (sales) websites which are neither independent nor honest (in our opinion) featuring reviews. We will continue to focus on providing independent reviews of trading systems and services only, no Robots.
We have our reasons for this, most of them based on the horror stories we read all too often. In the main we have also found that most (sensible) traders (rightly in our opinion) are just not interested in them either, we might be wrong but we think not.
WHAT MAKES A GOOD SYSTEM
A question we are frequently asked and one we took some time to concur on, in order of importance:
Next month we will focus on what, in our opinion, makes a (Signal) Service good.
Mechanical
Many are surprised that this is the most important factor, more important even than Profitability.
If a system is not Mechanical, in our opinion, it can't be operated consistently (according to a specific set of rules) and thus can't be easily measured. If a system can't be easily measured, it is difficult to even think about claiming that it is or can be Profitable.
How do we apply the term Mechanical? What we mean is that a set of clear rules must be in place for Entry, Stop(s) and Target(s). For example, x, y, z has to occur for Entry, Stop is xx and Target is yy, Exit if zz occurs. This is a very broad example, however it illustrates our point. Human intervention and discretion should be minimal thus negating emotion completely, or as ideal possible.
Profitable
This is self explanatory, a system must be Profitable.
This is demonstrated in a number of ways. Some websites wage previous results, some are actual, some are from back-tests, some are statement (usually demo) snap-shots, etc. A lot of websites wage examples of the finest trades from the last few years and most are also backed up with some glowing testimonials.
The point here is that each system has some form or another of demonstrating its Profitability. We take none of these as a given as it leads onto our next criteria.
Proven
The 3 key criteria now come together. A system can't be Proven unless it is Mechanical and there is no point in proving a system unless it is Profitable.
We do and we also advocate that everyone else, do their own homework here and remain cautious in doing so.
We approach this in a number of ways. If we can back-test a system, we do. If we can have access to a list of actual trades we take them and verify them. If we can have access to live accounts we take that opportunity. The intent here is that whatever historic data we can get our hands on to analyze and verify we do it.
We don’t listen much to testimonials, choosing more so to have a competition between us on who can find the most hilarious.
Now, before moving on. Just because historically something looks like the ideal thing since sliced bread, as mentioned above, we still proceed with caution. For example, we have came crossways indicators which repaint themselves or repaint after the event. They look fantastic on the screen and highly profitable but this does not mean this is how they behave in a live environment. Having proven a system, by whatever means, does not mean one can or should jump in without first using that system.
Technically Sound & Usable
What we mean here is two-fold. First a (mechanical) system must be easy enough to be used and secondly it must not take up 10 hours of our day 5 days a week, staring at a screen inactivity for a setup.
Even the most mechanical of systems can be overly complicated, the chart can look like spaghetti junction and the criteria for trade entry can be so convoluted that 6 or 7 different events all have to occur at the same time. We are not interested.
Also, we are not interested in trading say, a 5 minute chart, for 10 hours a day. Trading is about making a profit and having a life. As a matter of note, most of the systems we trade at www.systemsfortraders.com require less than 15 minutes a day on our part.
This is not to state we do not mind putting in the effort, we have place in a lot of effort over the years to get to the point we have. Our point is that now, once we have decided upon a specific trading approach, our effort, in terms of executing our strategy and our screen time, should be minimal.
We state this because in our opinion, there are enough opportunities in this environment crossways the many different timeframes we can selected to trade. We do not need overly complicated systems nor do we need to be tied to our screens all day.
We also like a system to be what we call, Technically Sound. By this we mean that we like to concur with the principles by which it operates and everyone will have their own baselines here but we can give a couple of examples. A system that goes long when RSI(14) is over-sold would not be Technically Sound in our opinion, nor would one that has a 100 point stop and a 10 point target. Anyway, the premise here is that we at least concur the systems fits within some sensible trading boundaries and guidelines.
It Works In Practice
So, finally, once we are reasonably satisfied with our main criteria we always determine a systems credentials by trading it in real-time, usually on a small account, we just like this to Paper trading, individualized preference really. Paper trading is fine but even with a small statement at least there is something to be won or lost based on your trading decisions. As a tip, we usually envision there is a zero on the end of our £’s per point when trying out a system on a small account, just helps us to involve some emotion that will always be there if the system is used for real.
Of course, some systems start by the way-side before we get to this point. For example, we might deem it too complicated, it might not be mechanical enough, it might require too much screen time, we might have deemed it as not profitable, etc. We might be wrong in our judgement but we generally go with our experience and gut feeling here. If we are incorrect and do not progress we hope that we will soon be place right in the forum by our users. If we are we will of course revisit a system and offer a follow up review.
Being A Tiny Bit Picky
And, really we are. But sometimes we just get fed up with poorly written manuals and untimely customer support. Believe it or not over 10% of those systems we review never respond to support emails, remember, we have already parted with our cash at this point. We will now refrain reviewing any product where we receive no response to our initial enquiry, we recommend this is a sensible option for others to adapt. Well, if someone is not interested in selling you something, what makes you think the product will be any good or that they will be interested in the slightest after they have your money.
Summary
So, we like Mechanical systems which are Profitable. We like to perform some form of Proving exercise and to ensure the system is Technically Sound and Useable. Lastly our final steps are to use the system in a real environment using a real account.
Only after we have taken the following steps do we make our only real judgement. This is never a suggestion but if any of us use a system (without modification) after writing our review we will give it a “Systems We Use”. We will also, typically, update a live journal on the forum of all the trades we take using that system.
SYSTEMS IN FOCUS
To date only one system has made it into our “Systems We Use” category and that is the LMT System by Dean Saunders.
LMT System - Works For Us!
This is a system we liked as it is about 95% mechanical and takes about 2 minutes to operate 3 or 4 times a day. This should be once a day but we can't trade the Daily candles as they close when we are asleep so we trade the 4 hour time-frame instead. The system slipped up in the month of July but before this it ticked all our boxes; Mechanical (95%, some exception rules to be applied that require some judgement), Profitable and Proven (on back-testing and live running), we concur with the principle of the system which is trend based and obviously we are happy with its usability as one of us is trading it and using it on our own trading accounts. See our site for our real-time journal.
5 EMA’s Forex System - Complicated!
A Mechanical system based on 1 hour and 15 minute time-frames. Even though titled 5 EMA’s, the system actually uses MA’s, Williams, MACD, RSI, amongst others. Just way too complicated for us. Back-testing was really hard (impossible) and attempting to trade this is real-time well, there was just too much going on for our liking. We just like systems to be more straight forward than this. This is not to state this system can't work, it’s just not for us. We welcome feedback from others that have experience of this product particular those that are actively trading it.
Easy Trade Forex System - Don’t Get It!
A manual we feel might not have been written by someone who’s native language is English, nevertheless, it is comprehensible enough. The suggested time-frame for this system is 4 hours (so a timeframe we like) and it “has been successfully tested for any time frame”. The system itself is based on a rudimentary version of Fibonacci which is used to forecast a “Power Turn Point”. However, the methodology behind this system just didn’t make sense (was not Technically Sound) to us and we didn’t back-test or attempt to use this system in real-time, just for that reason. It would be interesting to hear from anyone actually trading this system to determine its usability and profitability.
London Rush - Just About Made It!
The only other system we have come crossways that has nearly made it to “Systems We Use” category. Claims of “Only 2 Hours A Day Is Required” actually equates to about 2 minutes a day around 08:00 (UK local time) most days. The system is pretty much 95% mechanical and our live running in July produced a nice return of about 6-7% risking 3% of statement equilibrise per trade. Even though we have an outstanding issue (and receive no response to any of our emails) we continue to run with this system and it’s on our “Systems We Use” list. See our site for our real-time journal.
The Benefits Of Online Currency Trading – Apply Modern Technology To Make Money Online
The World wide web is a developed and useful tool in today’s society. Gone are the days when its use was limited to academics and socializing. Nowadays an increasing trend is to conduct business, banking and investment deals via online networks. Actually, one of the fastest growing markets online is forex trading. However, if you are accustomed to the traditional ways of currency markets, it is no wonder that you might be hesitant about buying and selling currencies online. However, what you should be aware of is that online trading can be very effective and practical for you as an investor. After realizing the advantages regarding time, control and cost, you will comprehend how simple the hi-tech process can be. Here are the most obvious benefits of online currency trading:Faster TransactionsAs each investor and trader knows, timing is a critical bourgeois in trading the forex markets. Whether or not you can win or lose in your trades will largely depend on the time necessary to execute the trade. In the traditional way, you have to call your broker and ask him to purchase or sell currencies. Then your broker negotiates with the trader the price level to open a position. You have to move for your broker to call you with the price before you can make a decision on whether to purchase or sell. And then, if you do order to open a long or a short position, your broker has to make another call to order through the trader. On the other hand, when you do transactions online, all it takes to purchase or sell currencies is a single click of the mouse. With this, a quicker exchange can be made, which might also ensure faster profits.Closer ControlSince trading is done via the Internet, you can watch your positions more closely. After all, you can always log in to your statement anytime and notice how your positions are fairing in the market. This grants you to be aware of the performance of your investments instead of having to move for reports in the mail that might not come as often as you would like. Through online exchange, you are also free to make your own decisions whether to purchase or sell currencies instead of relying on whether or not your broker is willing to execute a specific trade you might be interested in. In a way, you are empowered to trust your own knowledge and take your own risks with your trading.Lower Fees & CommissionsAnother benefit of online forex trading over the conventional method is lower broker commissions and narrower spreads. If you trade in sufficiently massive positions, it might even be doable for you to be healthy to negotiate your broker’s fees. Thus, you can both save expenses and acquire a lot of money.Although keeping up with the times and switching to hi-tech might seem quite intimidating at first, especially if you are accustomed to more conventional methods, moving forward can always be a much more practical and reliable step for you to take in the long run.With the many benefits that online forex trading can give you, trading currencies via the World wide web can certainly be a great way to participate in the forex market. Moreover, using the services of a reliable forex signal bourgeois would help you to decide even in difficult market situations. Such forex signals are also acquirable online, and using them takes a lot of guesswork out of your trading. But beware, make sure that you find a service which provides only highly reliable forex signals.
How Do You Make Money Trading From Home?
If you’re truly serious about re-inventing your life, or even just improving your current financial situation, then this could just be the most important message you’ve ever read. This will really help you make money trading.
It goes without saying that trading the Foreign Exchange can be tough and it takes years and years of training and discipline to stay ahead of the game. Well this is what most people believe! There is TRUE way to make an unbelievable income trading from home so you can really starting making money.
It’s a known fact that trading from home right now is probably the most effective way to surpass your current earnings potential and quit your day job. In this day and age, with so many redundancies, your current job might be at risk – wouldn’t it be nice just to give it all up for something EVEN BETTER.
Pick up the paper and you’ll see banks imperfectness and being nationalised. Major Banks are breaking up, but one of the divisions that they are not selling off is their Forex departments – why? Because it is more profitable than ever in this climate!
So why not get in on some of the action yourself? There are so many systems that you can purchase that ‘guarantee’ you success in trading from home, but most always end up disappointing you – believe me I know. I have tried over 7 systems myself and spent a total of $6,800.
The bottom line is, I wanted to trade from home and make money so I could quit my job and worked on my goal. Now I can do all the things I loved, like spending time with my friends and family, taking my children to school each day and the ideal of all lots of holidays. How did I do it? Well it was simple in the end, I purchased a system that was right for me and helped me get where I am right now.
You want to know how much I earn? OK, just to give you a clue, 12 months ago I had an average salary which fluctuated from $30-$40k which a total debt of $468k, I now acquire on average $3.5k a day and that’s when I’m only working for about an our or two. (I’m too old now to spend my life working all the time!). This was all down to one particular system which blew away all my financial worries and gave me the freedom I desired for years!
I would highly advocate this system, it’s really simple to use and would get you started in no time whatsoever. This was my ticket to financial freedom; I hope it is yours too.
For more information please visit http://www.makemoneytradingfromhome.com and also get your FREE “FOREX trading by Zero” strategy that tells you how to make HUGE profits in the FOREX market.
