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What is the equity theory in the work place?

In workplace, the equity theory illustrates the relationship between how hard an employee is motivated to work and how moderately he perceives he is treated. The main idea behind equity theory in the workplace is that employees, in an attempt to balance what output they get from their jobs and what input they put into their jobs, will instinctively give values to all of their contributions. Apart from money, the employees also contribute their ability, their skills, and their knowledge, along with their personal strengths. Equity in workplace is reached when the ratio of their inputs to the output is equivalent to the output over input of their colleagues.

As per the equity theory in work place, the most highly motivated worker is one who perceives his remunerations are equivalent to his input. If the worker feels that he is working and is being paid at a similar rate as his co-workers, he will certainly feel that he is being treated moderately. However, this does not indicate that every manager must treat all his workers identically, since all workers do not fulfill his demands in the same way. Research on equity theory in workplace proves that, generally, over-rewarded workers will produce more compared to less motivated, under-rewarded workers.

[tags]equity theory,dow jones stock market,investment,foreign exchange investment[/tags]

Blue Paper – The Correlation between the Stock Market and the Real Estate Market

Between 1990 and 2000 many schools of thought cited that real estate market was neither positively nor negatively correlated and in fact had little or no effect on the US economy. The premise of this theory did have merit as during the 90’s many claimed it was the manufacturing sector which was the main driver for economic growth during the period.

However we disagree strongly. In essence we examined why both must be related especially in such a heavily invested market as the USA real estate market. Mortgage related companies that are listed on the stock exchange NYSE or are in the DJIA (Dow Jones Index) are not the only companies that feel the pinch of a weakening real estate market. But it does signal some trouble on the market. It must be said however that a deeper analysis on the incomes of these companies must be done to truly see a correlation. This leads us to believe that though both are positively correlated, one is a trigger.

First the real estate market is typically reactive and the stock market proactive. When the New York Stock Exchange or the Dow Jones Industrial Averages are booming then many investors turn to the mortgages market to park their hefty returns. This leads to increased demand and invariably an increase in the cost of properties. This phenomenon is evidenced even in the UK as property prices continue to steadily rise. However when the market comes crashing down then investors who were in real estate begin to cover their losses by liquidating real estate and property held mortgages and liens driving the prices down.

Empirical evidence can be found in the Japanese stock market and the Japanese real estate market where once the stock market crashed in 1985 and the real estate market followed unwinding by more than 60% in values and 23 years later in 2008 can still not fully recover. Even closer to home is the 2001 NASDAQ crash in the stock market led to a drop in real estate values by twenty to thirty (20% – 30%). Yet during this time not many investors threaded carefully. However many US based investors and European investors bought into UK mortgage companies, lending them money through Mutual Fund companies and collecting hefty returns.

Again the bottom of this market fell out as it began to unwind in July 2007 in the sub-prime mortgage crisis and to date the fully consequence of that dilemma has not been brought to book for many companies. To be fair however there are other factors that can precipitate a real estate market crash:

  • The Federal reserves move to tighten liquidity increasing interest rates led to parking and a slow down in the building market without reaching any market equilibrium. Leading to higher mortgage rates and more foreclosures.
  • Rising petrol costs and other inflationary pressures postponed the middle class man from purchasing property whittling demand
  • Lack of Government regulatory legislation allowed collusion between property developers to price each other out of the market driving down prices of existing homes.

The stock market unwinding is just a trigger, real estate vales would have passed sustainable levels based on speculative demand and now the real estate market has collapsed under its own weight.

[tags]correlation between real estate and stock market,stock market crash,Masdaq crash 2001,Japanese stock market[/tags]

Stock Market Data – How To Protect Sensitive Information

It today’s stock market and business world it is critical that stock brokerages and financial institutions adhere to a common law fiduciary responsibility when sharing relevant and market sensitive data, information and documentation with each other. This is evidenced based on the fact that data changes hands so easily and quickly via the internet. In the past where disseminating information was difficult it can be done via the worldwide web now. However in some aspects of the stock exchange information must be protected by remaining closed circuit. And the disposal of this information using shredders is also a task for people that are knowledgeable of the power of information. Let us assume that quarterly earnings for Yahoo Inc. were leaked out to the public a little after the closing bell on the New York Stock Exchange. This would send the market into frenzy, with people selling and buying in the off hours. This can place the Dow Jones Index in a real quagmire.

Hence the sharing of this type of sensitive information and documents must have a protocol. This usually is dual custody in delivery and destruction of this document either by shredders or incineration. Though these measures exist it must be dependent on the integrity of person that is trusted with this data to keep it secure and away from otherwise prying eyes. But this problem does not just affect information that if released before hand can have damning effects, it refers to data and information that is being kept based on an individuals identity and other source documentation.

Let us assume that John Brown applies for a Juniper Credit Card online or to open a Zecco Account, to trade on the stock market. He submits his data and is asked to submit proof on identity, his current address and his social security number. This is all that identity thieves would need to steal his identity. This information must be kept secure preventing unauthorized access and disclosure of this type of sensitive information to unscrupulous parties. Then assume John Brown decides to close his account with Zecco, what happens to all his information how is that protected. Normally this is kept in hard copy for a few years, and then shredders must be used again to destroy the information as carrying it to landfills will give others a chance to capture that data and use it to demolish the good credit standing of others.

[tags]identity theft,dow jones stock market,DJIA,protecting sensitive information,[/tags]

The Inevitable Collapse Of The US Dollar

The most startling video that shows the inevitability in the crash of the US Dollar. This is such a devastating video that we believe that is impossible not to stand up and take notice that the US Dollar and stock market will crumble. The path that the US is on is truly not sustainable. Forex Traders have been lamenting over this for a long time and in recent weeks the US Dollar has been rebounding though most believe its just what is known as a “head fake” and the currency will continue to experience weakness.

[tags]us currency collapse,us economy collapse,us economic collapse,us economic collapse,us dollar collapse[/tags

This is very important as I reviewed a seminar that was held and answered several questions.

I would like to thank you for attending my webinar and showing your support for my methods. The feedback I have received thus far has been overwhelmingly positive; therefore you can expect future webinars and workshops. I was not anticipating the huge volume of email afterward so I must apologize for the delay in getting back with you. I decided it would be much more efficient to reply to several groups, rather than trying to field each email individually. I will answer all the basic questions I was given and then follow up with some of you that still have specific questions.

What is the name of the book you are featured in?
The name of the book is “Millionaire Traders: How Everyday People are Beating Wall Street at It’s Own Game” Written by Kathy Lien and Boris Schlossbeberg.

Where can I get a copy?
All major book retailers have it available for purchase either online or at your local store. The best price I have found so far was at Amazon.com. $26.50.

Do you offer mentoring?
Yes I do offer mentoring to a select number of individuals. If you are interested in this program please give me specific details about your trading experience. I offer a free program and also one that requires a monthly commitment.

Do you offer trade signals?
The mentoring program will provide you with specific entry and exit points until you fully understand the concepts behind the trades. These signals are included in the mentoring programs free of charge.

Can you explain why you don’t use most indicators?
I have found that most indicators are unreliable and do not offer the flexibility that is required to trade the markets profitably. Therefore, I created my own discretionary system which employs a combination of fundamental analysis, technical analysis and trading psychology.

Can I purchase this system or automate it to work for me?
My trading system is not available for purchase. It is impossible to automate my discretionary system and attempts to do so have been unsuccessful.

Do you offer managed accounts or funds?
Yes it depends on how much risk capital you have available and what type of returns you are looking for. I can match you with a good fund depending on these specific factors.

What is the minimum investment for your funds?
I am currently putting together two new funds that will begin trading in Jan. 2008.  The larger fund will have a min investment of $100,000. The smaller fund will have a min commitment of $10,000. My current fund is closed for new investors.

Do you have a website?
Yes it’s at Free Forex Lessons.Info

What brokerages firms do you trade with?
FXCM, Gain Capital, Oanda, Hot Spot FX, Saxo Bank.

Which are best for trading the news?
Gain Capital, Saxo Bank – fixed spreads.

How long does it take to double my account?
That is dependent on you risk tolerance and amount of leverage you use. You should not expect to double your account quickly, but instead should focus on gains of 5 to 8% per month. I can teach you some strategies to press your winnings and obtain high leveraged gains during certain market conditions.

Can you provide a record of your GBP/JPY trading?
Yes, I have enclosed an example of what can be done in a very short period of time. Don’t try this at home!

Can you show us one of the accounts you ran up from 5k to more than 100k?
I have enclosed this document as well to show trading in this manner is certainly possible. No one should expect gains of this nature, but it’s an example of pushing yourself and testing your trading boundaries.

Did you use the round number break since the webinar?
Yes and thank you for all the wonderful emails confirming this strategy works. You could have used it for EUR/USD on the break of 1.42 resistance, GBP/USD also had a huge break through 2.04, while USD/CAD broke through support at parity. All of these trades would have netted you a min. of 50 pips if you followed the round number strategy.

Where do I go to find out official government employment numbers?
The labor department – www.bls.gov

What about COT reports?
www.cftc.gov/marketreports/commitmentsoftraders/index.htm

Where can I find more info on Feng Shui?
There is a ton of free material on the internet and some really good books on this subject at half price books.  I would also recommend you spend time with an elder Chinese person that is willing to educate and enlighten you on the powerful effects of properly interacting with your environment.

Which chart do you use before entering a news trade?
I use the 5 min chart to decide where the resistance and support points are located. I prefer zooming down to a 1 min chart for making entries and exits.

Do you only trade the news?
Around 70 to 80% of my trades are made around news releases.

Do you trade long term?
No I am a short term trader. I am normally in and out within a few hours.

What time frames do you trade?
In general I am awake for the entire London & NY session. I get most of my sleep during Asia or when the market is quiet.

Do you apply Fibs to hourly charts or daily?
I generally use them on an hourly chart because I trade a shorter time frame. It really depends on your strategy and how long you plan to hold the trade.

When is your next webinar? What topics will be discussed?
I do not have a webinar scheduled at this time, but you can request one through your broker. I will most likely discuss news trading again because this is truly my area of expertise. I would like to spend at least 1 hr just discussing NFP so I can give you a more detailed explanation of how to profit from it.

You didn’t answer my question?I will attempt to answer every question. Please be patient and I will do my very best to get back with you in a timely manner.

What is the best stock picking software?

In the recent days, more and more people are preferring to take control of their own stocks rather than continuing with professional brokers. No doubt the professional brokers were of much help previously. But with the coming of the Internet the people who invest in stocks are trying to be on their own.

If you have an Internet connection and want to know which stocks you should buy, what is the best time to sell your older stocks, what price to pay when you are buying and a bundle of similar type of questions you can get them answered back all with just a few clicks of the mouse. This is possible because the launch of the Stock Picker RT.

The Stock Picker RT is delivered on a CD-ROM and is so designed that it will scan the market for stock picks with a single click of the mouse. Alternatively, it can be set to scan throughout the trading day, automatically. If you haven’t yet got hold of the Stock Picker RT, then go for it now. You can also avail the latest version of the Stock Picker RT. This version is self-updating so users will never need to upgrade manually. Try out this software and be self independent at once.

[tags]pick stocks,stock picking software,find stocks,New York Stock Exchage,Dow Jones Stock Market[/tags]

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