Are You One of the New Disposable Workers?

Part III - American Dream or American Myth? At the beginning of the 1900’s the industrial revolution was the new engine of the american economy and workers were a disposable commodity. The typical worker lined up at the factory door each morning before dawn hoping to hired on the for the day. Only a few skilled workers (tool and die makers and machine set-up specialists) were “full-time”, and there were no regular raises, holidays, vacations, or benefits. Corporations and “trusts” called the shots and workers took what they could get. Part of our barbaric “Robber Baron” past you say? Think again. Fast forward 100 years and the working world is beginning to look very much the same. Approximately 25% of our workforce is comprised of temporary workers and that number is projected to grow to 40% by the year 2010! The largest employer in the U.S. is Manpower Inc., a huge “temp” agency trading the latest commodity...your labor. The difference between now and 100 years ago is that its not just the labor of muscle and sweat, it is the labor of skill and specialized knowledge, and includes attorneys, accountants, college professors, scientists, software engineers, and business executives. This growing army of “contingent workers” typically works for 8 to 40% less than their “full-time” counterparts, without benefits, and on an as-needed “just-in-time” basis. Is this new employment model an evil plot by corporate america to suppress the american worker? Not really. Corporations just do what they are structured to do. They minimize costs (including labor) and maximize profits for their shareholders within the boundaries of the market place and the market for labor is now global. During the last 20 years or so the american corporation has quietly evolved and restructured. In large part they have just adapted to a new global and digital economy. It would not be a stretch to say that we are in the middle of a “new economy” revolution every bit as disruptive as the industrial revolution a hundred years ago and that labor (skilled and professional), especially american labor, is at the short end of the stick. The old corporate model was rigid and highly structured. It was one of high vertical and horizontal integration, somewhat slow to make and implement decisions, highly controlled, and formally structured. It was also highly unionized with a relatively permanent workforce that enjoyed high wages, pensions, and health insurance (i.e. General Motors and U.S. Steel). This model dominated after WWII when the U.S. dominated the world economy and U.S. corporations faced very little global competition. However, global competition, free trade, and a digital age required a new model capable of rapid change and maximum flexibility. As corporate america evolved into this new model, american workers experienced “re-engineering”, downsizing, “rightsizing” (after mergers), off-shoring, outsourcing, the death of pensions and the birth of 401K’s, shared healthcare costs, and the rapid rise in population of the just-in-time or “contingent” worker. At the extreme the “new” corporation is “virtual”, with a few key employees and executives at the core and a network partner companies and contingent employees always in flux to meet the demands of a rapidly changing global market. This new trend of contingent labor has also spread to the pub-2403258503801684lic sector and shows no sign of slowing down or stabilizing. Many highly skilled and educated workers have been turned into reluctant “free agents” whose value has been bid down by a global labor market. These workers may think they are entrepreneurs, but they are really just employees without health benefits, no different than the factory worker of a 100 years ago lining up at dawn and hoping to be hired on for the day. About the author: John Van Doren is former turnaround and startup executive in the manufacturing sector. His is currently an independent entrepreneur with a website {www.youramericandream.info} devoted to redefining the American Dream in the context of a digital and global economy.

Alternative Business Client Gifts

(ARA) - It is customary for businesses to give gifts of appreciation to their clients and employees during the holiday season; one that says a lot about a company’s values, makes a real difference in the world and honors clients and employees is a gift to a charity in the customer’s name.

Dan Guzman, a broker in the Dow Jones futures pit at the Chicago Board of Trade, had great success with this concept, last year, when he decided it was time to show the pub-2403258503801684lic that traders not only have hearts, they understand others don’t have it so good. He suggested that his co-workers offer their support for the work of Heifer International, a nonprofit organization that provides farm animals to poor families in 48 countries around the world. He was overwhelmed at the generosity of the approximately 30 traders in the Dow pit who gave -- they collected $15,000.

“I call it the Dow challenge,” says Guzman. “The money you raise isn’t the most important thing. What’s important is the awareness you raise.”

Guzman learned of Heifer when reading about poor children spending all their waking hours hunting for food. He imagined his own nine-year-old in that situation and his heart broke. “It felt great presenting the check to Heifer International’s Chicago regional director, Rosemary Larson, on the trading room floor. I knew lives would be forever changed for the better,” says Guzman.

Bob Stiller, CEO of Green Mountain Coffee Roasters, had a similar experience. “I first became aware of Heifer International and the work they are doing to end world hunger when I received their gift catalog. I thought the symbolic gift of animals was a great idea and over the years personally used them to honor my friends and business colleagues. Last year, my office coffee division used the animal gifts for their best customers. The life-affirming gifts were well received by our customers, who told us this gift reflected our company’s core values,” says Stiller.

Heifer International is leading a response to the alternative business-to-business giving trend by creating its first “Most Important Gift Catalog in the World,” for businesses. Heifer makes it easy for businesses to convey their gift by offering special cards and a new book, called “One World, One Family” as fulfillment pieces. The book’s beautiful photos tell a story of lives that are changed through partnerships with Heifer International. To order this catalog, call (800) 696-1918, or go to www.heifer.org/business. To learn more about Heifer, the leader in world hunger solutions, visit www.heifer.org

All About Stock Market

A stock market simulation game is a great way to practice your investment skills before actually investing any "real" money in the stock market. Simulation games are usually played on the internet, where people can experience the thrill of investing in the stock market without any risks, costs or any fear of losing money when and if they make a poor investment decision. Many teachers and professors of banking and finance are now using stock market simulation games to teach their students about the rudiments of investing in stocks. Most stock market simulation games come with a fee to get started, but there are some that are free of any charge. One does not need have prior knowledge about the stock market to join. This is how stock market simulation games usually work: First, players must register. After registration, players are given an initial sum of "virtual" money to invest in companies of their choice. Players build a portfolio of stocks by buying and selling shares in companies. Most stock market simulation games use real-time market data. The objective of most stock market simulation games is simple: To increase the value of your portfolio of stocks so that it is greater than that of the other game players. Below are some tips on choosing a stock market simulation game: • Choose a stock market simulation game that is used and recommended by reputable colleges, high schools, middle school, investment clubs, brokers in training, corporate education courses and any other group of individuals studying markets in the U.S. and worldwide. • Choose a stock market simulation game that is comprehensive and easy to implement in any Finance, Economics, or Investments class. A good stock market simulation game should feature trading of stocks, options, futures, mutual funds, bonds from the U.S. and many of the world's major markets. • Choose a stock market simulation game that provides a valuable, reliable, and realistic trading simulation at a reasonable price to members and other individuals who are interested in learning more about investing and trading. The simulation game should also have some capability for testing a variety for investment strategies. • Choose a stock market simulation game that has a toll-free customer service phone number and excellent e-mail support for members. The support function should be able to quickly answer any questions that members/players may have. • Choose a stock market simulation game that is easy to use and easy to teach even to those who have never had any real hands-on investment experience.

A Critical Review of Metastock 8.0: Is Upgrading Worth the Money

If you are like many other traders, you have been eagerly waiting for the release of Metastock 8.0 for one reason, and one reason only, the reportedly redeveloped system tester. Metastock`s one major flaw has always been its lack of back testing capabilities, though previous versions of Metastock are head and shoulders above the competition on other fronts. But whatever criteria you use to trade with, be it moving averages, candle sticks, fibonacci retracements, or any other trading system, you`re going to need to back test it. Everyone needs to thoroughly back test, or simulate, their trading system in ways that can match the conditions you will be trading in. It`s something all serious traders do. Consequently, when Equis International (the makers of Metastock 8.0) announced "an all-new type of exploration that emulates running system tests over an entire database of securities", I could hardly wait to get the Metastock 8.0 release. While waiting to receiving my copy of Metastock 8.0 I began building trading systems. By the time my copy of Metastock 8.0 finally arrived, I had around 20 systems ready for testing, and couldn`t wait to try them out. However, when I loaded up the software, I was in for a surprise. It looked like nothing had changed. I thought maybe Equis International had kept the same interface and added in greater flexibility and some more features, but after searching in every nook and cranny, I found next to nothing that was new. It looked the same and, except for a couple of small changes, it was the same! Then I came to the System tester - now called the "Enhanced System Tester". This was my major reason for upgrading from version 7.22. This is what appeared to be only real difference between Metastock 7.22 and Metastock 8.0. After fiddling around with the Metastock 8.0 Enhanced System Tester for a few hours, and testing my 20 systems, I reached the verdict that I wasted my money on the new version of Metastock 8.0. Despite the supposed improvements to the Enhanced System Tester it, like it`s predecessor, left a lot to be desired. Even though the Metastock 8.0 Enhanced System Tester tests multiple securities in one batch, it treats each security independently of the others. Therefore, when Metastock 8.0 tests the first security, it uses your predefined float and takes the trade over the test period selected. Once that is completed, it repeats the same process for the second security, using the same initial float, with no reference to the first security. In the end, you receive the same result that you would have if you simply tested each security individually and added the results together. Not only is this process dreadfully slow, but the entire reason for testing your system is side-stepped. When your finished all the explorations, the performance of your trading system is still unknown! The moral of the story is that if you already own Metastock 7, don`t worry about upgrading to Metastock 8.0. Simply stick with the version you have and keep your fingers crossed that Equis International gets it right for Metastock 9.0.

9 Deadly Mistakes of the Stock Trader:

The following are a list of nine things you want to avoid at all costs. Anyone of them can literally destroy your financial dreams and goals! 1. Trading with money you can't afford to lose. One of the greatest obstacles to successful trading is using money that you really can’t afford to lose. Examples of this would be money that is supposed to be used to pay the mortgage, bills or your child’s college tuition. This is sometimes referred to as “trading with scared money” and there is a very good reason for that. Ultimately what happens is that when someone knows in the back of their mind that they are risking the rent money, they trade out of fear and emotion versus logic and no emotion. If you are in this situation I highly recommend that you stop trading until you earn enough to put into an account that you truly can afford to lose without causing major financial setbacks. You can start with as little as $2000 and trade stocks under $30. 2. The need to be "certain". We all have the need to make sure that the trade we want to make is going to be a good one. Therefore we look for signs that will give us a confirmation to enter. This can come in several forms, for example… Tuning into CNBC or the Wall Street Journal to give us news that our stock is on the move or waiting for a couple of extra days to make sure that the stock is really flying and just not on a false breakout. Other traders will get opinions from friends, family or broker. Others will wait for ten technical indicators to line up and give the “green light”. All of these are okay to a point, however the big mistake to avoid is taking so much time that you let the trade take off without you. Interestingly, what ends up happening as a result of waiting too long is that you actually increase your risk. This is because as a stock moves higher and higher there are fewer buyers left in the market and it can come tumbling down until more buyers step in. It is like a game of musical chairs; eventually someone gets caught without a chair. Traders who wait and wait and wait to make extra sure are usually the ones buying the top tick just before the stocks sells off. They then beat themselves up thinking they picked the wrong stock. Odds are it had nothing to do with their selection, just bad timing. The thing to keep in mind is that there can be no absolute certainty in any given trade. All we ever can do is take a very educated risk along with a leap of faith! 3. Spending profits before you make them. Nothing is more exciting then getting into a trade that blasts off and puts you into a highly profitable situation. This can cause major problems however, because this type of trade puts you in a highly euphoric state and leads to daydreaming about the huge profits still to come. You say “Wow I’m already up 15% in two days; I’ll be up 50% in a week and probably double my money in no time!” Then the next thing that happens is you are deciding on the great new car you are going to buy or perhaps telling your boss that he can stick it… Well you get the idea! The real problem occurs as you get caught up in the daydream and expectations. This causes you to not be prepared to get out as the market sells off and eats up your profits because you have convinced yourself of the eventual outcome and will deny the reality of the situation. The simple remedy for this is to know where and how you will take profits once you enter the trade. Also, realize that the market will only go up as long as it wants and not how high you think it should go. 4. Forming an opinion. I’m here to tell you that the market does not give a damn about you or your opinions. Even if they are based on painstaking research or from a “Wall Street Guru”, it doesn’t matter! 5. Three 4-letter words that will kill you! HOPE---WISH---PRAY If you ever find yourself doing one or more of the above while in a trade then you are in big trouble! As I have already said, the market doesn’t give a damn. All the hoping, wishing and praying in the world is not going to turn a losing trade into a winning one. When you are wrong just use a simple 4-letter word to correct the situation-SELL! 6. Not sticking to your plan A big source of trouble arises when a trader starts to deviate from their strategy. Maybe for a week they will trade according to one set of rules and the next use something entirely different. This flying by the seat of the pants always ends up backfiring. This is because the trader can never be certain what is working and what is not. You must never deviate from your methodology once you start. As long as it is a good one statistically there is absolutely no reason to change it. The way to make money from it is to trade it over and over again to exploit the edge it gives you. One thing to also be aware of is that a trader is most vulnerable to switching approaches after a few loses. So, pay special attention at these times. 7. Not knowing how to get out of a losing trade. It’s amazing how many people I have talked to who don’t have any clear escape plan for getting out of a bad trade. Once again they hope, pray wish and rationalize their position. As I keep saying the market does not care what you think. It does what it does and when you are wrong you are wrong! The easiest way to keep a bad trade from going really bad is to determine before you get in, where you will get out. You can use a dollar amount or at some target point such as the low of the previous 15-minute bar. ***Make sure you don’t get the “stunned deer in the headlights syndrome”. This is where you see the stock fall to your stop loss point, but you are unable to take action. Maybe this is due to fear or disbelief that you are wrong, but unless you get out ASAP you could end up I major financial trouble! 8. Having an ego. I have seen a number of individuals enter the trading game that were extremely successful in other business ventures. Because of this they had a fairly big ego and thought they couldn’t fail. Their egos became their downfall because they couldn’t except that they were wrong and refused to bail out of bad trades. Once again, whoever or wherever you came from does not concern the markets. All the charm, powers of persuasion, number of diplomas on the wall or business savvy will not budge the market when you are wrong. 9. Falling in love with a stock or trade. Let me give you an example of what I mean. Back in the spring of 1999 EFAX was a really hot stock. I waited to buy it on a dip and did so at $19/share. It started to move up strongly and life was great! After a while though, it started to come back to my entry point and then below it. Here’s the problem. For some reason I really liked EFAX and sort of became attached to it. Ultimately I couldn’t let go of it even though I knew I should. I justified and rationalized why my dear friend should bounce back, but it never did. I finally had to break off my love affair when the stock hit $9. (Ouch!) The moral of this story is never fall in love, let alone get married to any stock. It can cost you dearly!