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Honor Society A Tale Of Risky Business

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Is forex as risky as everyone thinks? One way to measure risk is to compare a financial product's risk relative to its return. If you take the time to compare an investment in forex to common investments such as equities and fixed income, you will find that from a risk/reward standpoint, forex investments provide respectable returns and should be considered viable portfolio diversification tools.



The spot forex market is unique to any other market in the world, as trading is available 24-hours a day. Somewhere around the world, a financial center is open for business, and banks and other institutions exchange currencies, every hour of the day and night with generally only minor gaps on the weekend. Essentially foreign exchange markets follow the sun around the world, giving traders the flexibility of determining their trading day.

Although forex trading can lead to very profitable results, there are risks involved. When it comes to trading forex, you'll need to worry about exchange rate risks, interest rate risks, credit risks, and country risks - things you may not consider when trading stocks.

The foreign exchange market is unique in that central banks intervene from time to time to affect the price movements of their respective currencies. On the surface, this may disturb those who use fundamentals to make investment decisions, trusting that the "invisible hand" guiding free-market behavior is not being manipulated. However, it has been proven time and again that central banks can only influence currency values for short periods; over time, the markets adjust to the changes. This leads to the formation of trends, which your trend-following strategies will help you trade.

Since most currency trading is short-term in nature, speculators can cause erratic fluctuations in the exchange rates. So, when considering trading currencies, you cannot ignore fundamental factors. These include relative interest rates, economic stability, political stability, and relative trade deficit/surplus.

These fundamentals or market forces should be strong enough to initiate the formation of discernible trends in order for you to apply profitable technical trading strategies. Further, the length of the trends needs to be sufficient for you to recognize them and be able to take advantage of market swings.

Of the more than one trillion dollars a day transacted in the foreign exchange markets, an estimated 95% comes from speculative trading. While large international banks are responsible for the majority of this volume, there are retail investors all over the globe trading forex on a daily basis.

Without a doubt, investors in the US are behind the curve with regard to learning about and participating in this market. Active equity and futures traders who appreciate liquidity, strong technical indicators, and a multitude of short-term trading opportunities will find the forex market especially appealing.

But at the very least, trading the foreign exchange market deserves serious consideration as a diversification strategy in anyone's portfolio.
Honor Society A Tale Of Risky Business
Recently, Arizona Governor Janet Napolitano signed into law a bill that will impose harsh measures against any business that hires undocumented workers. The first offense will result in the suspension of a business license. For the second offense, the State will revoke the license, which would amount to a death sentence for any business in repeated violation of the law. No doubt it is an understatement to speculate the Arizona’s new immigration law will create much controversy and legal review.

Napolitano signed this bill into law shortly after the United States Senate failed to come up with its own comprehensive immigration measure. The bill, or, rather, the series of bills, went down in flames amid much rancor and disgust on both sides of the issue. This failure apparently has opened the door for States to legislate their own immigration measures, beginning with the tough new laws in Arizona. It shouldn’t be too long, pending legal review, before other states follow suit. Depending on lobbying, sentiment and voter will, most likely additional states, especially Border States, will vote on measures much like the new Arizona statute.

There are many ways to debate the immigration issue, but that’s not the role of this article. There are many sides and many points of view. Some arguments border on the absurd. But most are rational and important and should be discussed thoroughly, and not just ins sound bites, to help determine the future of immigration in this country. As with any matter of great complexity, despite what media sound bites would have you believe, there are no easy answers.

However, one thing becomes increasingly apparent. If your business continues to hire undocumented workers, then chances are you are going to be penalized for the practice. Clearly, if more states adapt the Arizona model, every business will have second thoughts about running the risk of hiring undocumented workers. Once you figure out the monetary concerns and the risk of being put out of business, hiring documented workers will start looking pretty cost effective by comparison.

As the co-owner of Corra, a background checking company I have seen increased concern among out clients, regarding the new crackdowns on undocumented workers and the companies who hire them. Let’s face it no one wants to be shown in a poor light; especially a thriving business that is makes headlines for being the subject of a raid by the INS. They always leave such a mess.

Seriously, this is not a good way to be featured on the six o’clock news. It is poor branding when a substantial percentage of your employees being hauled off in handcuffs, or worse, the ever popular nylon pipe ties the police use when arresting larger crowds. It’s embarrassing, and has the potential for driving away prospective clients. Existing clients may also be none too thrilled you are hiring illegal, ooops, so politically incorrect of me, undocumented workers. Not everyone agrees with or approves of this measure as a feasible cost cutting procedure.

So what to do? Be realistic and confront the reality the party may well be over for hiring undocumented workers. Once you come to this realization, you and your business must take action to protect yourself against federal or state crackdowns that can possibly close you down or leave you a whole lot lighter in your bank account. The increasingly heavy fines and potential loss of business can far outweigh whatever savings you gain by hiring the undocumented. Now finding documented workers who will perform the same tasks, well that is another matter and another part of the discussion.

The only real way to protect your business is to demonstrate due diligence in your hiring practices. You should have an employment screening program in place that conducts criminal background checks as well as Social Security Traces and, possibly, I-9’s. I-9 reports are somewhat cumbersome and take some time to return. Social Security Traces usually return the same day.

Just checking to see if a Social Security number is valid or not really isn’t enough. That kind of effort will reveal that, yes, the social security number is valid. But then, the main issue is whether or not it truly belongs to your candidate. That’s why an actual social security trace is so important.

The SSN trace is lifted off a credit header and shows all the names attached to that number. It is easier then to discern who the rightful owner is and who are the interlopers. At Corra we are never surprised when we see one additional name or more attached to the same social security number. Undocumented workers buy social security numbers on the black market and often give it out to their ten best friends. This is but one of a number of ways to obtain a legitimate number and use it for illegitimate purposes.

You should also run a criminal check on your new candidate. It may be painful enough to hire an undocumented worker with all the new crackdowns. It is even more painful if that job candidate turns out to have a criminal record. Then of course there is the Driver’s License. Is your worker driving for you, and does he have a valid driver’s license? If not, and should he injure someone in an accident, not only are you facing the penalties for hiring undocumented workers, you may well be liable for damages.

These are but a few things to consider in a changing landscape. As the old commercial used to say, pay us now or pay a whole lot later. This is your choice. Usually, the answer is obvious. Do yourself a favor and check them out before you hire.

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About Author
Both Martin Chandra & Gordon Basichis Basichis are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Martin Chandra has sinced written about articles on various topics from First Date, Forex Guide and Forex Online. is a full-time investor. Learn more at .. Martin Chandra's top article generates over 9900 views. to your Favourites.

Gordon Basichis Basichis has sinced written about articles on various topics from Flirting Tips, Forex Guide and Unsecured Loans. Gordon Basichis is the author of the best selling Beautiful Bad Girl, the Vicki Morgan Story, a non-fiction novel that helped define exotic sexuality in the late twentieth century. He is also the author of The Constant Travellers, a new age, fantasy Weste. Gordon Basichis Basichis's top article generates over 1900 views. to your Favourites.
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