Risk of forex

The forex market is a large, global, and generally liquid financial market. Banks, insurance companies, and other financial institutions, as well as large corporations,use the forex markets to manage the risks associated with fluctuations in currency rates.

The risk of loss for individual investors who trade forex contracts can be substantial. The only funds that you should put at risk when speculating in foreign currency are those funds that you can afford to lose entirely, and you should always be aware that certain strategies may result in your losing even more money than the amount of your initial investment. Some of the key risks involved include:

1. Quoting Conventions Are Not Uniform. While many currencies are typically quoted against the U.S. dollar (that is, one dollar purchases a specified amount of a foreign currency), there are no required uniform quoting conventions in the forex market. Both the Euro and the British pound, for example, may be quoted in the reverse, meaning that one British pound purchases a specified amount of U.S. dollars (GBP/USD) and one Euro purchases a specified amount of U.S. dollars (EUR/USD). Therefore, you need to pay special attention to a currency’s quoting convention and what an increase or decrease in a quote may mean for your trades.
2. Transaction Costs May Not Be Clear. Before deciding to invest in the forex market, check with several different firms and compare their charges as well as their services. There are very limited rules addressing how a dealer charges an investor for the forex services the dealer provides or how much the dealer can charge. Some dealers charge a per-trade commission, while others charge a mark-up by widening the spread between the bid and ask prices that they quote to investors. When a dealer advertises a transaction as “commission-free,” you should not assume that the transaction will be executed without cost to you. Instead, the dealer’s commission may be built into a wider bid-ask spread, and it may not be clear how much of the spread is the dealer’s mark-up. In addition, some dealers may charge both a commission and a mark-up. They may also charge a different mark-up for buying a currency than selling it. Read your agreement with the dealer carefully and make sure you understand how the dealer will charge you for your trades.
3. Transaction Costs Can Turn Profitable Trades into Losing Transactions. For certain currencies and currency pairs, transaction costs can be relatively large. If you are frequently trading in and out of a currency, these costs can in some circumstances turn what might have been profitable trades into losing transactions.
4. You Could Lose Your Entire Investment or More. You will be required to deposit an amount of money (usually called a “security deposit” or “margin”) with a forex dealer in order to purchase or sell an off-exchange forex contract. A small sum may allow you to hold a forex contract worth many times the value of the initial deposit. This use of margin is the basis of “leverage” because an investor can use the deposit as a “lever” to support a much larger forex contract. Because currency price movements can be small, many forex traders employ leverage as a means of amplifying their returns. The smaller the deposit is in relation to the underlying value of the contract, the greater the leverage will be. If the price moves in an unfavorable direction, then high leverage can produce large losses in relation to your initial deposit. With leverage, even a small move against your position could wipe out your entire investment. You may also be liable for additional losses beyond your initial deposit, depending on your agreement with the dealer.
5. Trading Systems May Not Operate as Intended. Though it is possible to buy and hold a currency if you believe in its long-term appreciation, many trading strategies capitalize on small, rapid moves in the currency markets. For these strategies, it is common to use automated trading systems that provide buy and sell signals, or even automatic execution, across a wide range of currencies. The use of any such system requires specialized knowledge and comes with its own risks, including a misunderstanding of the system parameters, incorrect data that can lead to unintended trades, and the ability to trade at speeds greater than what can be monitored manually and checked.
6. Fraud. Beware of get-rich-quick investment schemes that promise significant returns with minimal risk through forex trading. The SEC and CFTC have brought actions alleging fraud in cases involving forex investment programs. Contact the appropriate federal regulator to check the membership status of particular firms and individuals.

The delusion conceptually propounds that intraweek and intraday FOREX currency quotes movement is governed by either improvement or by deterioration of the state’s economic situation. But in reality, even in case the actual Forex news are superior to the estimated one, the FOREX quotes up/down movement is of 50/50 probability. This statement is thoroughly important. Once the job of Forex trader is gambling on FOREX exchange rates differential, the following is to be realized to obtain faultless profit:

1. FOREX pairs pricing mechanism (say at point X where you are completing the market analysis)
2. Factors imparting growth/decline to FOREX rates (up/down from point X).

Thus, having understood the FOREX ratesfactors effective at the extra-exchange (book-maker) FOREX market and the given currency motive factors, a trader must possess distinct knowledge of whether to buy or to sell the given currency pair.
So, what are these factors?
FOREX student suggest unambiguous interpretation of factors responsible for the price formation and the fluctuations there of:

1. Forex rate constitutes a demand-supply balance for a given goods (currency).
2. Any violation of this balance, (for instance, in case where the estimated news is in disagreement with the issued official one), results in the FOREX rates reciprocation in chase of a new demand-supply balance. Poor demand brings about decline in a certain currency rate, with a high demand leading to the growth of the latter. The situation continues as long as the currency buy/sell demand comes to balance at another level or at another point.

Referring to the B. Williams (“Trading Chaos 2” Chapter 1 “The market is what you are thinking of it”): Each world market is dedicated to distribute or share limited amount of something… among those desirous to obtain it most of all. The market affects it by way of finding out and identifying the exact price? Underlying the buyer’/sellers’ power absolute equilibrium point.
 

The above point is readily established by stock, futures, bonds, FOREX and options markets, be it either via an open auction or by virtue of a computerized facility. Markets spot this point prior to any mis-balance being detectable by You or by me or even by traders at the exchange floor.
 

With this scenario holding true – and it really does – we are in position to jump at certain simple yet important conclusions as regards the information being circulated through the market and enjoying doubtless acceptance”. Thomas Demark was more laconic in “Technical analysis - an emerging science”: “Price movement is governed by demand and supply. Should demand exceed supply, there’s a price rally and if visa versa, there’s a price decline. All economists do share these underlying principles”.
 

Hence, the role of fundamental analysis for FOREX market is readily apparent. In scholar fiction one will discover roughly the following explanation, persistently wandering from book to book, from site to site and suggesting attaining successful trading at FOREX market by way of scrutinizing the country’s economic fundamental data, viz. by tracking the factors reflective of the country’s economy condition as below:

• State economy condition dynamics indicators (GDP, trade & payments balance, current account, industrial production, etc. It is knowledge, that the higher the above indicators – the faster the economic and the currency price growth);
• •Stock indices, via average arithmetic index of the country’s securities market condition and dynamics. E.g.: 0.3% daily DJI growth in the USA means that this certain day the shares of 30 leading US companies, being pictured by DJU, went 0.3% more expensive. By similarity, DAX30 is the major German index, incorporating the price ofshares of the country’s 30 leading companies.

• The country’s interest rate, since the higher the rate, the greater number of investors is eager to invest into the country’s economy and hence into national currency strength.
• Rate of inflation (the higher the rate, the quicker the National Bank will hike the interest rate). With this assumption, the CPI constitutes a key factor.
• Money supply growth in domestic market, which fact brings about the inflation, leading to the interest rate hike.
• The country’s gold and currency reserve assets.
• Variation dynamics correlation of: balances of payment, trade balance, state budget, gross domestic product (GDP), etc.
• Trade and industry dynamics (industrial production, industrial orders, DGO, capacity utilization, retail sales, etc.)
• Construction statistics (construction spending, new home sales, housing under construction, building permits, etc.)
• Labor statistics (unemployment rate, new jobs, etc.)
• Society investigations (consumer confidence, consumer sentiment, purchase managers and service managers sentiment, etc.)
• To be considered additionally are the country’s political stability and tranquility (clearly, any political, natural and other cataclysms are sure to turn investors nervous making them withdraw the investments from the country, thus weakening its national currency). And with the currency being the national economy derivative, changes in economic data will inevitably result in the above currency rate movement.

Conclusions:

1. Progress in economy results in the currency exchange rate rally.
2. Decrease in economic indicators leads to the national currency rate decline.

To sum it up, critical economic and political news (whose calendar is issued in advance and is familiar to any trader) constitute a standing factor giving rise to mis-balance and causing the currency rate fluctuations.
In anticipation of important economic and political news FOREX pair crawl to the rates as inspired by the estimates (“rumored trade”), whereas upon actual news there occurs a pulse motion of FOREX pairs in accordance with the scheme below;

• Forex rate grows if actual news are better than the estimated one;
• Forex rate declines if actual news are worse than the estimated one.

ARE YOU FAMILIAR WITH THESE ABC BASICS OF STUDYING FOREX?
Do you accept that one can earn money by way of using these basics, known to every trader?
Then why, having absorbed these economic axioms, 90% of Forex traders in the world are losers rather than winners. Where is the delusion of the above ABC truth, nudging traders towards losses? Let us perform sort of point-by-point analysis.

1.The currency exchange FOREX market is a book-makers one. It is gambling on rates difference without direct money delivery to the exchange market, except for hedging of traders’ funds by Forex brokers, via buy-sell difference especially during strong trends). Then, www.forexite.com reads: “Trading is performed without actualcurrencies supply, which fact cuts overheads and enables Forexite to go long and short on the currency”

Comment: Have you ever met any book-makers;

• whose logics was coincident with that of THEIR clients (traders),
• whose stakes were being made in accordance with THEIR technical analysts forecasts, economic laws and common sense?

And what extent of doubt and skepticism should be attached to THEIR free “recommendations”, “advice”, “surveys” and “forecasts”, laid out at THEIR sites through THEIR analysts?

2.As a regular result, over 90% of the world traders are still loosing their deposits at FOREX each time they follow Thomas Demark stereotype that “All the economists share these underlying principles”.

Comment No.1. In as much as the above underlying principles are 90% contradictory to practice, it gives rise to the following question. Might these “underlying principles, shared by all economists including Thomas Demark” have possibly turned into dogma, alien to life and practice?

Comment No.2. What should a trader lean on: practice or dogma even if supported by great names, provided that the trader is purported at earning money?

3.FOREX analysts issuing their daily bulky market reviews are not FOREX traders in the overwhelming majority (see detailed discussion below). And on bringing together pairs 1, 2 and 3 there appears certain regularity. 

4.Please, think over A. Elder words, that: “FOREX rates and the fundamental analysis are tied together with a mile-long rope. The fundamental analysis is ultimately decisive. But anything is likely to happen prior to this
eventuality”. 

5.Another, yet no less renowned trader and analyst, Bill Williams underlines the same mental regularity of an
experienced professional trader (level 3 of his trader’s skill rating as per “Trading Chaos 2”): “On attaining level 3 you emerge as a self-provided pro trader. You are always familiar with the market’s basic, usually invisible structure. You no longer need to refer to others’ opinions. You needn’t read “Wall Street Journal”, watch marketoriented TV programs, and subscribe to information bulletins, waste money on information channels”. Comment: Logically, there is a counter-implication, that if You are eager to become a successful trader, You are to restrict the influence of various surveys and recommendations on yourself even in case they originate from the world famous “Wall Street Journal”, to say nothing of crude gurus in analyst skins who use to know ahead of time where currencies will go. 

6. Forex news is a scheduled issue of fundamental data, which as a rule impairs FOREX rates a sharp pulse of motion. But then, why the currency rates movement vector is only 50% coincident with the ABC truism logics as to where the rate should rush in case of actual news being much better or worse than the estimate. And, please, make an attempt to answer the following question, stirring for every trader: why with the new being worse than expected (say, on US economy), the USD currency would initially fall by 40 pips (news work-off) but in 5 to 10 minutes it would swivel back and would display a 200-point rally, with no account to either the issued news or to common sense.

Below are some examples:


Fig. 1. GBPUSD chart as of April 1, 2005 after the news, positive for the GBP and negative for the US economy.
In March the CIPS manufacturing index amounted to 52.0 (with the previous data revised from 51.8 to 51.6). Oil price in NYC has grown by USD 2.40 up to USD57.70 per bbl (new record of the latest 21 years). Non-farm payrolls in the USA was minimum since last July (previous data revised towards lower values). There has been a decline in the Michigan sentiment index to 92.6 (median estimate was 92.9, with 92.9 previously).
 

All the US indices faced a fall down. DJI at NYSE has fallen by 99.46 pips (-0.95%) towards closing at 10404.30. NASDAQ declined by 14.42 pips (-0.72%) to 1984.81. S&P500 slipped by 7.67 pips (-0.65%) to 1172.92. 30-yr US Bonds yielded 4.729 (0.037 lower as compared to the previous close). By contrary, FTSE100 has grown by 19.60 pips (+0.40%) to 4914.00.

Now, the question is to certified economists: what will happen to the GBPUSD within one day or even several hours upon publication of these data? You are right, USD should not simply fall down, it should collapse. Powerfully, swiftly. Well, well. And this time, the same question to experienced traders. By FOREX news headlines You might have guessed that the events are taking place at the Friday American session. Correct. Initially, anyway, the GBPUSD chart will go up by 100 pips (news wok-off), followed by a pullback. Then Forex chart starts a new rally.
 

It is now to be tracked whether the GBP will breach the latest rally high or not. If affirmative, it will rush up by approximately 160 pips (Elliott wave 1 was 100 pips, while EW 3 is 60% longer). But if the high is not breached? The GBP currency quote will in no way come to a standstill, moreover on Friday afternoon. Hence, - down, to the starting point! And, if breached, similar situation takes shape but the counting is performed in a “down” direction (EW1, being the same 100 pips plus 187 pips from 1.8826 to 1.8759 being EW 3).
 

The FOREX day trading tactics will be given scrutiny in a separate chapter. A still separate chapter will be dedicated to Friday trade at American session due to its inherent specifics and to strong seemingly inappropriate movement. The movement is, of course, appropriate. To say nothing of Friday. But it will be touched upon later.
 

Now, getting back to the currency chart. As apparent, the GBPUSD pair movement on Friday, April, 01, 2005 is in no way in conjunction with the US economy fundamental data. Each forex trader can provide from tens to hundreds of similar instances, where the news are of a certain vector, whereas, after a fraudulent rush along the news vector, a currency applies reverse thrust.
 

Thereafter, the next day, in daily currency surveys, certified economists are sure to explain all to us by way of inventing another undisguised nonsense, like: “in spite of certain data, traders decided that the currency has already worked-off this side”. But! How could this occur on Apr, 01, 2005, provided that the currency has been staying flat in a narrow range in the course of the whole of the European session?

Otherwise, another explanation may emerge, that forex traders were expecting still more inferior news on the US economy. But! By how much more inferior, if according to DJ, the US non-farm payrolls MA was equivalent to 180K, with actual being +110K, estimate being +225K and prior being +243K? And in what manner do these economists count up world traders: by capita, by countries or by the funds, lost by those, who continued staying long in a holy belief in renowned academic scholars postulate of FOREX rates being tied up to countries’ economy statistics.
 

I wonder if I’ll ever chance to witness legal procedures to be instituted against any of those famous scholars, so that no one would dare claim that fundamental data trigger rate spikes. The same pertains to economists, writing about the way, hundreds of thousands traders throughout the globe have conspired to conclude that it is time to reverse the trends with absolutely no grounds. Is it really feasible?
 

Such reading-matter is, but hammering a single question into one’s head: is it lie or is it stupidity of those cooking daily reports for taking traders for a ride, fooling them up and keeping them from the truth, which might be of great avail to them in daily trading. Traders are not a decisive factor, thus rates movement is in no way dependent on their will. Practically in no way.

Wanna check? Negotiate with tens of traders of the trading floor and arrange for a simultaneous entry long on some exotic FOREX pair. In so doing, try to push up either the NZDHKD, or the NZDCAD, or the HKDCAD. No need? I think so. You’ll certainly suffer failure with the above, to say nothing of the EUR, GBP, CHF.

Another example:
Fig.2. GBPUSD movement as of May 13, 2005.
 

This is an M15 chart of the American session, where the USD pair has grown by over 100 pips from 1.8583 to 1.8481 against the news, negative for the US economy:

Below are other similar examples of that same day.
Fig. 3. EURUSD chart as of May 13, 2005.

Hundreds of examples may be offered, where the Forex news vector is opposite to that of the currency movement. Practically, actual news may happen to be superior or inferior to the estimate. FOREX quotes up/down movement is also of 50/50 probability irrespective of the above. Why does it happen and what is the way for a trader to pinpoint entries and exits? This is going to be discussed in ensuing chapters of this book and in the Master forex-V Trading Academy proceedings.

Affiliates offers, sponsorships, and ads are going to bring in the majority of direct revenue for most bloggers. However, if you’re creative about it, there are several other monetization strategies to be found. The most common ones are subscriptions, donations, and merchandise sales.

Subscriptions and Membership Sites
Users are not exactly fond of paywalls, but if you attract a loyal following you can offer monthly subscriptions in exchange for some form of exclusivity. You could offer extra features to pro users (such as your articles in PDF and audio format), access to exclusive content that’s not available to your regular readers , or exclusive access to a useful resource.

WordPress users can look into plugins such as wp-Member and WishList Member to obtain membership site features for their blogs.12 Users of other  blogging systems may have to get creative to find similar features for their blogging platform or use third-party scripts or services. The risk of membership sites is alienating your user base and creating two classes of citizens among your readers (paying and non-paying).

Be careful if you decide to experiment with this monetization strategy. It has the potential either to generate plenty of income or to destroy your community, so tread lightly in terms of how you go about this approach. In particular, do not make your readers pay to read your blog posts. Doing so goes against the spirit of sharing your knowledge via blogging.

Donations
Receiving donations is much simpler than adding premium membership features to your site. You simply add a payment processor button (e.g., PayPal) and invite readers to donate. You can make it cuter and ask for a specific amount that would pay for a coffee, beer, or slice of pizza rather than having this approach come across as out-and-out panhandling. Add a nice coffeecup icon next to your call to action, and you may get a few donations here and there.

In my experience, donations are not a particularly lucrative approach to monetizing your blog. To make them work and be sustainable for you, you’ll need a particularly large audience of very loyal readers. Furthermore, you may have to motivate such users by recognizing them in a page on your blog. Another problem with donations is that if you try to earn money from your blog with ads, sponsorships, and affiliate offers, very few readers will feel like donating to you. And if you get rid of those revenue channels, you generally won’t be able to make up for them with donations alone.

I have tried a variety of donation-related approaches, including accepting Bitcoins and receiving micropayments via Flattr and Readability.13 Earnings were abysmal when compared to other revenue sources. One donation approach that I have seen work many times is having infrequent fund-raising posts,14 in which the blogger outlines the expenses and time commitment required to keep up the blog and requests (perhaps once a year) that readers to chip in to reach a specific amount of money.

For genuinely useful blogs with a loyal readership, such donation drives can quickly bring in a few thousand dollars in a matter of days or even hours. One such drive allowed Jason Kottke,15 a pioneer blogger, to switch to fulltime blogging back in 2005. But the model hasn’t been sustainable and his blog is now ad-supported (via The Deck). Keep this tool in your belt for when things are not going well economically. (Should you ever find yourself in extreme dire straits, remember also that your blog is essentially a virtual real estate asset and can, if worse comes to worst, even be sold on sites such as Flippa.

Sell Merchandise
Merchandise sales can quickly add up and, unlike the early days of the Web, you don’t have to ship products out of your garage. Using services such as CafePress, Spread Shirt, and Zazzle,17 all you really need is a nice design. If you did a good job in terms of branding and ensuring that your readers feel a part of a community, you may end up selling quite a few T-shirts and other types of merchandise with your logo on it. If you have a cute mascot like Reddit or Hipmunk both do,18 selling will be even easier.

Keep in mind that you don’t have to limit merchandise to your logo or mascot. With the help of a good designer, you can very easily create cute, fun, witty T-shirts and other gift shop-like items that are relevant to your niche and make some extra money via that route.

For example, I could add another source of revenue to my math blog by simply creating a series of math-related T-shirts designs that I sold for a markup over the base price I was charged by a third-party service. So far, I have not tested my hypothesis on Math-Blog, but I suspect it might work well. Much of what you’ll learn in the next chapter, when we discuss techniques to help sell your own products, can be applied to merchandise as well. Keep this monetization strategy as something worth exploring later in your life as a blogger, perhaps a year or two after having established your blog.

Head over to affiliate program.amazon.com and apply for the program. You can sign up even if you’re not a US resident. You’ll be asked about a series of things, including payment information and details about your blog. The overwhelming majority of people who apply are accepted.

Note that once you are approved, you’ll be able to use Amazon affiliate links on a variety of sites you may own and not just the one you applied for. Remember to use disclaimers everywhere you use affiliate offers.

 

Amazon has several associates programs, depending on the locale of the store you are targeting. Currently, there is a program for the American store (Amazon.com) and one for each of the Canadian, British, German, French, Italian, Spanish, Chinese, and Japanese stores. Again, you don’t have to reside in one of these countries to sign up for any of their respective affiliate programs.

using the drop-down menu in the top right corner of the Amazon Associates login page.

Register for each of the programs according to the demographics of your traffic and your blog’s language. For example, if most of your traffic arrives from the States, the UK, and Canada, then apply for each of those three Associates programs. (You’ll be applying three times.) You can select the locale

Amazon.com is a great place to earn money to bloggers but unfortunately, due to sales tax disputes with several states, the Amazon Associates program for Amazon.com is currently unavailable to residents of Arkansas, Colorado, Illinois, North Carolina, Rhode Island, and Connecticut.

Check the complete, up to date list in the operating agreement, which you may want to read in its entirety. Amazon Associates was one of the earliest and most popular affiliate programs on the Web.8 Every time you refer a customer to a given Amazon site (e.g., Amazon.com) with your tracking ID, you’ll receive a small percentage of the total cost of whatever that person purchases during the next twenty-four hours.

Some affiliate marketers and bloggers greatly underestimate the earning potential of Amazon Associates on the basis of the tiny cookie duration (only twenty-four hours, instead of, say, sixty days) and the small commissions (usually between 4 and 8.50 percent, depending on your monthly sales volume, instead of the 30 to 75 percent commissions that are common for digital goods
elsewhere). While both counts are true, there are many benefits to Amazon that make it a very worthwhile program for reputable bloggers.

• Virtually everyone knows and trusts Amazon as a store. You don’t have to convince your visitors that their credit card number won’t be stolen when they shop there.
• Amazon’s inventory of physical products is fantastic. They carry so many items that you can always find something of quality to promote, almost regardless of your particular blogging niche.
• Amazon spends millions of dollars studying ways to increase the percentage of visitors who end up buying products (i.e., optimizing the conversionrate of their pages). Your main goal is really to send traffic to Amazon by way of your affiliate links, after which Amazon will take care of converting many of these visitors into customers, thus earning you a commission on all of those sales.
• Unlike other referral programs, you get a cut for every sale that’s made within a twenty-four-hour period, not just for sales of the product you promoted. My technical blogs have received commissions for goods that I never promoted, including watches, swimming pools, and adult toys. That is because you may send visitors to check out a book, but once on Amazon they may purchase other books or other products (either instead of or in combination with the original item) within the twenty-four-hour period for which your tracking ID is valid. Those unexpected, additional sales add up quickly.
• Unlike some other affiliate programs, it is considered normal for bloggers to routinely link to Amazon in their posts. This means that your archives will contain many posts including Amazon affiliate links, generating you commissions long after you initially posted them.

When I was a kid I created an arrangement with my local computer store in which I would refer friends and acquaintances to them, and the store would then give me a small percentage commission based on what those people bought. I didn’t know it at the time, but the service I was providing to that store was a form of affiliate marketing.

This type of arrangement can be extremely beneficial for both the company and the affiliate. The company receives new business from customers it may not have reached otherwise, and the affiliate gets a commission for each sale that can be directly traced back to the affiliate’s site (online, usually through a cookie or coupon).

Typically, online affiliate offers work like this:

1. The affiliate links to an offer with a tracking ID embedded in the link.
2. A visitor visits the link and is redirected to the landing page on the company’s site.
3. A browser cookie is stored with a certain expiration date on the computer of the visitor. This cookie associates the visitor with the affiliate that referred them.
4. If the visitor makes a purchase at any time while the cookie is still valid,a commission is provided to the affiliate by the company.

Depending on the type of goods and the company’s approach to affiliate marketing, the commission can be anything between a few percentage points to 100 percent. Yes, you read that right. Some companies will go so far as to give away the entire sale price for a promotional period in order to attract more affiliates and perhaps recurring customers.
 

More commonly for digital goods such as ebooks and courses, margins are exceedingly high, which means that content producers routinely offer affiliates a 50 percent commission rate for all sales made within a large period of time after the initial referral (e.g., sixty or ninety days, which, again, is often tracked via cookies).

As you can imagine, you can generate a substantial amount of money from affiliate marketing if you have a large enough audience that you’re offering relevant services and products to.
 

As a blogger you already have the audience, and as we’ll see in a moment, you can find relevant affiliate offers to present to your readers. Affiliate marketing really is the one monetization strategy you can’t afford to ignore.

Before jumping into key affiliate programs for technical bloggers, I want to provide you with a little background about the stigma associated with affiliates (and affiliate marketing) in general.
 

The reason affiliate marketing has gained such a bad reputation is that the economic incentives to promote a company’s products are very high. Here we’re not playing around with a dime a click. Depending on the product and the commission, we could be talking as little as a few dollars or as much as hundreds if not thousands of dollars per referred customer.

Affiliate marketers have gone to great lengths to grab such generous commissions, including spamming, misleading, and downright scamming users. I really encourage you to look past the negative connotations that are associated with affiliate marketing. In this section we’ll take a very ethical approach to this subject, which can reward you handsomely without the need to mislead, spam, or promote crappy offers or products to anyone.

Read the following articles too to get good knowledge and tricks

1. A Blogger’s Best Friend:Amazon Associates 
2. Earn Money with the Amazon Associates Program
3. Build Links with Your Associates ID
4. Use Multiple Tracking IDs
5. Understand Amazon Associates Reports
6. Get the Best Out of Amazon Associates
7. Where to Find Other Reputable Offers

Conceptually not far from ads, sponsorships are an excellent way to make money with your blog. The basic idea is that you find companies that are relevant to your niche and then contact them about sponsoring your blog. In exchange for a monthly fee, you’ll provide them with high visibility to your blog’s readership. For example, the popular blog Daring Fireball makes a substantial income by offering RSS feed sponsorships.

Before you approach potential sponsors, though, you should have detailed information about your audience, which is easily obtained from Google Analytics. Prepare a page on your blog or as a PDF that you’ll send by email with the details of your demographic as well as with details about what you’re offering. If you are good with graphic design, make your presentation appealing and be sure to include lots of attractive graphs. Eye candy sells. Key information you should enclose in that page or document:

• Site usage statistics: The average number of unique visitors and pageviews per month, as well as your subscriber count. Include trends if your blog is growing rapidly.

• Geographic information: Where are your visitors from? Include the top ten countries and the percentage of traffic these locations provide.
• Demographic information: If you’ve run surveys and know about the profession, age group, income, and other demographic information about your visitors, include these stats, too.
• Relevant keywords (optional): If the majority of your organic traffic comes from keywords that are relevant to the sponsor, consider including the top ones in the information package you send out so as to show that your blog has the right audience.
• Your offer: Detail exactly how much you’d like potential sponsors to pay for the sponsorship and what you are offering in exchange. Clarify whether you are offering sole sponsorship or cosponsorship of your blog. Traffic stats aside, what really seals the deal is an appealing offer. You could offer any or all of the following perks to potential sponsors.
• A banner advertisement in a predefined format and position on your blog. Link to the sponsor, of course, but opt for a nofollow link. This way Google won’t think that you are selling links for PageRank purposes. In your offer, let the sponsor know that such links will be nofollow to comply with Google’s policies. Specify if you are limiting the offer to the frontpage (unusual) or throughout the blog (more common).
• A thank-you note and backlink at the bottom of your posts. For example, “This post was sponsored by Acme, the best solution for all your cartoon explosion needs.”
• A periodic thank you post that includes a shout-out to your sponsors, links to them, and a brief explanation of what they offer your readers. If your sponsor turnover is not significant, this kind of post can become annoying for your readers, thus you’ll want to keep them infrequent (e.g., once per quarter).
• Interviews, guest blogging, and other content-based arrangements that benefit both the sponsor and the readers. Always disclose your affiliation. Don’t hide the fact that you have a sponsor from your readers.
• Trials, giveaways, and special offers that are useful to your reader and great marketing for your sponsor.

If you don’t have any companies in mind, do some research to see if there are companies in your niche that are already sponsoring other blogs. It’s far easier to convince them to also sponsor you than it is to approach a company that has never heard of blog sponsorship before.

You can also have an Advertise page in your navigation bar as well as a Your Ad Here banner or button in a spot that you’re offering to sponsors that links to that page. Making a post in which you explain that you’re accepting sponsors is also an aggressive but legitimate way to go about it. There are companies that facilitate the whole process so that it’s virtually identical to selling ads through a network, but part of the benefit of sponsorships is that you deal with a handful of companies only, one on one, for months or even years at a time. So once your initial agreement is set up, there isn’t much work to do on your part except for collecting payments. You may as well cut out the middleman, establish good professional relationships with companies, and keep all the revenue for yourself. Should You Find Sponsors for Your Blog?

Without a doubt, sponsorships are a great way to generate recurring sources of extra cash as a technical blogger. I don’t advocate you seek sponsors the same day you launch your blog, though. Establish yourself first, and then go after sponsors. If you’re lucky, you may even be approached by companies who are interested in a media buy before you’ve started looking for them. For the record, on my programming blog I currently offer a full banner ad (468 x 60 pixels) on top of each new post for $200 a month and two halfbanners (234 x 60 pixels) at the top of my sidebar for $100 each. I also offer my sponsors the ability to be interviewed or reviewed (with full disclosure)

when a new product of theirs, one that’s relevant to my audience, comes out. That’s $400 a month, or, if you prefer, $4,800 a year, right there. (I usually sell sponsorship placements for three or six months at a time.) You can set your own price by basing it on a honest RPM/CPM. If you require a sensible $3 CPM for a given sponsorship offer, you can divide your average monthly pageviews by 1000 and then multiply that by $3. So if your blog were to attract 100,000 pageviews per month on average, you can request $300/mo. from your sponsor. Generally speaking, the more prominent your banner and overall sponsorship offer and the narrower the scope of your blog, the higher you can go with your CPM rate.

As usual, respect your readers. Opt for tasteful ads and banners. Don’t permit Flash ads that include sounds, and limit the animation level of your banners to a minimum. Likewise, don’t feed your readers low-quality, spam-like sponsors just to make a quick buck. I constantly receive offers for sponsorship and link purchases from companies I do not trust. I always turn them down, and so should you. For startup or company blogs, just like ads, sponsorships don’t make much business sense.

Advertising is the first strategy to consider to start monetizing your blog. Thanks to ad networks such as Google AdSense,placing ad units on a blog is very straightforward. Such networks act as intermediaries between advertisers and publishers. The details vary, but essentially ad networks aggregate a series of ad spots on a large number of sites and let advertisers pay to place ads in them. This frees you from the burden of finding advertisers, agreeing on a fair price, collecting payments, and so on.

Google Adsense is the ever best Ads network that pay higher amount per one click and further you can understand about Google adsense programm reading my "What Is AdSense?" article. If you contemplate to place ads on your blog, you can sign up for free with Google AdSense and then set up one or more ad units. AdSense is the site owner counterpart to the Google AdWords program, which is the interface used by advertisers to buy ads on search results and sites belonging to the Google AdSense program.

You will be provided with an embeddable snippet of JavaScript code for each ad unit you create, which you then place in strategic spots on your blog. Ads that are relevant to your content will automatically be displayed inside such spots on your blog I have described this further in article how does AdSense know what ads to send?, and your account will earn a variable amount of money each time a visitor clicks one of those ads. Most of the adsense publishers ask how much money can make from AdSense? and their is no a simple answer to give. It is vary according to keywords that used in your blog. If your blog contain and write articles on high paying keywords you can earn much dollars.

  
Google will display a maximum of three ad units regardless of how many units you place on a given page. This means that you shouldn’t place more than three ad units on any page of your site.

WordPress users can include ads in the sidebar by adding a Text widget containing the JavaScript ad code provided by AdSense. For other spots, such as below each post, users can choose their theme’s ad options or use one of the many ad plugins available, or they can edit the theme’s files directly. Common theme files to edit are header.php, footer.php, and single.php.

Adsense is really making a huge impact on the affiliate marketing industry nowadays. Because of this, weak affiliate merchants have the tendency to die faster than ever and ad networks will be going to lose their customers quickly. If you are in a losing rather than winning in the affiliate program you are currently into, maybe it is about time to consider going into the Adsense marketing and start earning some real cash.

Google is readily providing well written and highly relevant ads that are closely chosen to match the content on your pages. You do not have to look for them yourselves as the search engine will be the doing the searching for you from other people’s source. You do not have to spend time in choosing different kind of ads for different pages. And no codes to mess around for different affiliate programs (Top 10 affiliate programs).

You will be able to concentrate on providing good and quality content, as the search engines will be the ones finding the best ads in which to put your pages on.

You are still allowed to add Adsense ads even if you already have affiliate links on your site. It is prohibited, however, to imitate the look and feel of the Google ads for your affiliate links.

You can filter up to 200 URLs. That gives you a chance to block ads for the sites that do not meet your guidelines. You can also block competitors. Though it is unavoidable that Adsense may be competing for some space on web sites that all other revenues are sharing. Owners of small sites are allowed to plug a bit of a code into their sites and instantly have relevant text ads that appeal to your visitors appear instantly into your pages. If you own many sites, you only need to apply once. It makes up for having to apply to many affiliate programs.

The only way to know how much you are already earning is to try and see. If you want out, all you have to do is remove the code from your site.

The payment rates can vary extremely. The payment you will be receiving per click depends on how much advertisers are paying per click to advertise with the use of the AdWords. Advertisers can pay as little as 5 cents and as high as $10-12, sometimes even more than that too. You are earning a share of that money generated.

If your results remain stagnant, it can help if you try and build simple and uncluttered pages so that the ads can catch the visitor’s eyes more. It sometimes pay to differ from the usual things that people are doing already. It is also a refreshing sight for your visitor once they see something different for a change.

Publishers also have the option of choosing to have their ads displayed only on a certain site or sites. It is also allowed to have them displayed on a large network of sites. The choice would be depending on what you think will work best for your advantage.

To get an idea if some Adsense ads you see on the search engines has your pages, try to find web pages that have similar material to the content you are planning to create and look up their Adsense ads. It is important to note that you cannot choose certain topics only. If you do this, search engines will not place Adsense ads on your site and you will be missing out a great opportunity in making hundreds and even thousands of dollars cash.

It is still wise to look at other people’s information and format your Adsense there. Just think about it as doing yourself a favor by not having to work too hard to know what content to have. With all the information that people need in your hands already, all you have to do is turn them as your profits. It all boils down to a gain and gain situation both for the content site owners and the webmasters or publishers.

Make other people’s matter your own and starting earning some extra cash.

To know why Adsense is essential for your content sites is to know first how this works.

The concept is really simple, if you think about it. The publisher or the webmaster inserts a java script into a certain website. Each time the page is accessed, the java script will pull advertisements from the Adsense program.

The ads that are targeted should therefore be related to the content that is contained on the web page serving the ad. If a visitor clicks on an advertisement, the webmaster serving the ad earns a portion of the money that the advertiser is paying the search engine for the click. The search engine is the one handling all the tracking and payments, providing an easy way for webmasters to display content-sensitive and targeted ads without having the hassle to solicit advertisers, collect funds, monitor the clicks and statistics which could be a timeconsuming task in itself.

It seems that there is never a shortage of advertisers in the program from which the search engine pulls the Adsense ads. Also webmasters are less concerned by the lack of information search engines are providing and are more focused in making cash from these search engines.

The first reason why Adsense is essential for content sites is because it already has come a long way in understanding the needs of publishers and webmasters.

Together with its continuous progression is the appearance of more advanced system that allows full ad customization. Webmasters are given the chance to choose from many different types of text ad formats to better complement their website and fit their webpage layout.

The different formatting enables the site owners the possibility of more click through from visitors who may or may not be aware of what they are clicking on. It can also appeal to the people visiting thus make them take that next step of looking up what it is all about. This way the people behind the Adsense will get their content read and making profit in the process.

The second reason is the ability of the Adsense publishers to track not only how their sites are progressing but also the earnings based on the webmaster-defined channels. The recent improvements in the search engines gives webmasters the capability to monitor how their ads are performing using customizable reports that has the capacity to detail page impressions, clicks and click-through rates.

Webmasters and publishers can now track specific ad formats, colors and pages within a website. Trends are also easily spotted. With the real-time reporting at hand, the effectiveness of the changes made will be assessed quickly. There would be time to sort out the contents that people are making the most clicks on. The ever-changing demands would be met while generating cash for the webmasters and publishers.

The more flexible tools are also allowing webmasters to group web pages by URL, domain, ad type or category, which will provide them some accurate insight on which pages, ads and domains are performing best.

The last and final reason is that the advertisers have realized the benefits associated having their ads served on targeted websites. Thus increasing the possibility that a prospective web surfer will have an interest in their product and services. All because of the content and its constant maintenance.

As opposed to those who are no using Adsense in their sites, they are given the option of having other people do their content for them, giving them the benefit of having successful and money-generating web sites.

Adsense is all about targeted content, the more targeted your content is, the more target the search engines’ ads will be. There are some web masters and publishers who are focused more on their site contents and how best to maintain them rather than the cash that the ads will generate for them. This is the part where the effectiveness is working its best.

There was a time when people were not yet aware of the money to be achieved from advertisements. The cash generated only came into existence when the webmasters and publishers realized how they can make Adsense be that generator. In those days, the content were the most important factors that is taken quite seriously. It still is. With the allure of money, of course.

Now a days a popular website builder is a Joomla. So those who use joomla to create their web site should be a method to use adsense to Monatize their site. So if you want to show google's ads on a Joomla website this article will show you how. There are a series of steps that you need to go through to put google adsense onto a Joomla page. These are :

1. Check what module positions are available in the site template
2. Decide which of the Joomla module positions you are going to use for the adsense advert
3. Use the Joomla custom HTML module to insert the adsense code into the module
4. Test the result

When you check the module positions that are available you may find that there is nowhere suitable or you don't want to use the existing module positions. In that case follow sub topic Adding a new module position to a Joomla template it will show you how to add a new module position and give it a name and location on your template. Let's begin the process, we're going to put adsense onto this site, New to Joomla dot com. Here's a screenshot of how it looks before starting the process. As you can see, no adverts.

Check what Joomla module positions are available in the site template

The easiest way to view the module positions is to log in as administrator, then go to

1. Extensions > Template Manager using the menu.
2. Then click the preview button.

You should see the module positions overlaid on the template.

While looking at above image it's useful to note that module positions can have any name, there are no restrictions. Also, where module positions are named, such as 'user 1', 'user 2' etc there is no reason why these should be numbered consecutively or that every number needs to be used. As shown here, the module names are simply strings of text so they can be anything the designer chooses.

The breadcrumb module position is normally used as its name suggests, for holding the breadcrumb trail showing the position of the page within the site. It would be well to leave that alone, unless you are not using breadcrumbs. In this case we are going to put the adsense adverts into the banner module position.

Get the google adsense code for your site
Login to your adsense account and set up and appropriate advert unit that you want to use. If you use channels for tracking don't forget to use a custom channel, copy the adsense code onto the clipboard of your computer.

Add the google adsense code to the Joomla module position
In the administration section go to Extension > Module Manager, then click on the New icon to create a new module, when the list of available modules appears,
click the radio button next to custom HTML then continue, this will take you to the custom HTML module setup page.

There are several things to set here;

1. Give the module a sensible title, something like banner adsense, so it will remind you what the module does, and which module position it goes into. Click the No radio button next to Show title, then select the banner module position from the dropdown list. The order will be set automatically when you save the module.
2. You should still have your adsense script code on the clipboard. This has to be pasted into the custom html area at the bottom of the page. However, you can't just paste it in as text, otherwise Joomla will simply show the script, rather than calling the google adsense server and asking it to show adverts. This example shows Joomla with the TinyMCE editor, this may of may not work on your website but the workaround is described below in case you need it. Click the HTML button, shown at 2 above, this will display the HTML source window
3. Paste your adsense script in there, then click the update button.

Save the custom module and preview your site. Your should see the adsense adverts in the banner module position.

Troubleshooting google adsense in Joomla
If your google ads don't show try the following.

Begin by viewing your site in a browser, then examining the page source. Most browsers have a 'View' menu, and under that you will find Page Source, or something like that. Look down the source, you should be able to recognise the major parts of the page. What you are looking for is the google adsense script, it's easy to recognise because it looks something like this.
The things that makes it easy to spot are the id="banner" and the script tags. Examine it carefully and compare it to the actual google adsense code from you adsense account. If they are not identical go back to the custom html and edit it.

There is also the possibility that the editor that you have installed in Joomla has re-written the code in an attempt to tidy it up. The first time I installed adsense code in this way (as shown above) the TinyMCE editor (the default Joomla editor) rewrote the script code as html comments. So when the page was viewed no ads showed.

Workaround for editor re-writing problems

If you find that your editor has re-written the script code, then you need to turn off the editor for the duration of the setup of the custom html, then turn it back on when you have finished.

To turn off the Joomla editor, go to the Administration panel and click users, then click on your own login name, (Administrator),then look to the right-hand side of the page at the parameters section and set the editor to no editor as shown.
Save the changes, then go back to the custom module and you should find that the editor at the bottom of the screen in not just a textbox. Paste your adsense script in there, save the changes and view your site. You should see the adsense ads appearing. If not check your work.

Don't forget to return to the user administration section and reset the editor back to whatever it was.

Finally...Here's how the google adsense ads look in the Joomla site here at New to Joomla dot com.

Hi friends in These days most of the internet users that earn money from internet by doing ads clicks or Google Adsense requested to Hide their real IP address. Because you can visit your sit too as an another person in a foreign country after changing your IP address.

There are some methords to hide your IP address and in this article I describe how change or hide your IP address using VPN (Virtual private Network) connection. Then create a VPN connection.

1. Make sure your system is up–to–date
Be sure that you run Windows Update before setting up your VPN connection.

2. Open the Control Panels
First, click on the Start button and click “Control Panels”. This opens up the “Control Panel Home.”

3. Go to the Control panel and change it to small icons

4. Next, click on the “Network and Sharing” control panel

5. Click “Setup a new connection or network”

6. Select “Connect to a workplace” and click next.

7. Next click “Use my Internet connection (VPN).”

8. For Internet address enter ras.finance.upenn.edu and Division of Finance for Destination name 

Or you can  use below links to find Free VPN severs

1. VPNBOOK
2. JustFreeVpn

Select Don’t’ connect now; just set it up so I can connect later

9. Enter your username and password

10. Click Create

11. You should see this screen next. Click the “Close” button to return to the “Network and Sharing” screen.

Now Your VPN connection is ready. Go right side of the Task panel and click on network place and click VPN connection now created and click on connect. Type your username and password and connect to the VPN server. 

Now check your IP address.

watch below video to clarify further more.

1. Top 15 adsense tips
2. Difference between page views, clicks, page CRT CPC and page RPM in google adsense

Use channels: Channels help you in conducting a better analysis of the performance of your AdSense Ads. You can use custom channels to check what web pages are making more revenue and which ones are not doing so well. In fact, custom channels can be used for conducting analysis on multiple aspects at the same time. You can use this analysis for making amendments to your AdSense Ads or website content in order to get better results.

Ad customization and positioning: Shape, Size and color are the three properties of your AdSense Ads that you can easily control and customize in a way that the Ads don’t look out of place when served on your website. You can either make your Ads stand out from the rest of the content on your webpage or you can make them blend with the overall webpage. Moreover, you can identify the hot spots on your website and position your Ads accordingly. Ad customization and Ad positioning are, in fact, the best ways to attract more clicks to your AdSense Ads. There are some posts written by me in last days you can find them from my site map or go through Triple your CRT.

1. Average CTR By Weekday
2. Best Overall Ad Formats
3. Choose the Best Colors For Your Ad Blocks
4. Facts and Figures: Statistics of Notes of Adsense ads
5. Link Color Performance
6. Make Your Ads Look Less Like Ads
7. Position the Ad Blocks Properly
8. Top 10 Background Colors
9. Top 10 Border Colors
10. Top 10 Url Colors
11. Top 5 Text Colors
12. Triple your CTR by dressing ad formats
13. Use the Best Ad Form

Content quality: ‘The best generally overcomes the rest’is a very true saying. If you host quality content on your website and provide regular updates to your visitors, you can expect more traffic to your website. This will in turn lead to more ad impressions and possibly more clicks.

Use AdSense Ads on all pages: If you have multiple web pages on your website, you should include AdSense Ads on all of them. Since the visitors can enter your website through a number of different pages, having AdSense Ads on all the pages will surely increase your earnings.