If you're using charts, then you want to trade the strong trends - and the Average Directional Movement Index Indicator, or ADX, enables you to do this.
Wells Wilder developed the ADX, and outlined it in his classic book New Concepts in Technical Trading Systems.
Let's look at this essential indicator in more detail - and see how to apply it on your forex charts, to give you greater accuracy when generating your trading signals.
Determining the Strength of the Trend
The ADX is a momentum indicator, which aims to measure the strength of the trend - and attempts to determine if the market is trending, or is trading sideways.
The Advantages of the ADX
A core belief of technical analysis is that a strong trend in motion is more likely to continue, than reverse. Therefore, you always want to be trading strong trends - as your odds of success are higher. The Average Directional Movement is a good indictor and you should consider using it as part of your currency trading system.
The Technical Bit
For the boffin's out there, here's the technical bit don't worry if you don't understand the calculation, its easy to use when visually plotted. The ADX is based on the comparison of two other directional indicators, both of which were also developed by Wilder, and they are:
Positive Directional Indicator (+DI) and the Negative Directional Indicator (-DI) to produce ADX as showed in the following formula:
ADX = SUM[(+DI-(-DI))/(+DI+(-DI)), N]/N
Where:
N: Refers to the period of calculation. The formula above produces the ADX line, which oscillates between 0 to 100 values. The +DI and -DI are both present and can be seen to make up the indicator.
You don't need to understand the above calculation to use the indicator you only need to accept that the indicator works.
The indicator is easy to use when it's visually plotted - and you'll find it included, with most of the good forex chart services.
How to Trade using the ADX Indicator
The ADX it's not a bullish, bearish trading signal generator - and should never be used as such.
The ADX indicator simply indicates the strength of the trend - and other indicators should be used to enter, and exit trades.
Although the ADX fluctuates from 0 to 100, it rarely moves above 60.
Use the ADX in the following way:
Readings above 40 indicate the strength of the trend.
Readings below 20 indicate range trading and flat periods of consolidation.
You can use the crossing of +DI and -DI to determine the trend direction; when +DI crosses -DI upward, it's a bullish signal, on the other hand, when +DI crosses -DI downward it's a bearish signal.
The ADX line is a great momentum indicator and like the RSI (also developed by Wells Wilder), the ADX it will help you trade the strongest trends - and give you advance warning of changes in momentum.
The Bottom Line
If you want currency trading success, you can't just trade support and resistance levels, and hope they hold or break. You need confirmation of momentum to get the odds on your side - and the ADX indicator will assist you.
Final Words
New Concepts in Technical Trading Systems was published in 1978, and was one of the first trading books I ever bought. Every trader should make this book a part of his or her forex education. If you want to learn forex trading the right way, get the book, and use the ADX indicator to increase your chances of making big FX Profits.
Sunday, June 10, 2012
Friday, June 8, 2012
The Best Betfair Horse Laying System
I'm sure you've heard about people making their living on the Internet, but how do they do it? There are so many ways to make money on the Internet: eBay, freelancing, multi-level marketing, online casinos, etc. and I'm sure you will have seen lot's of people telling you about the systems they use that have made them very rich very quickly. But how can you separate the wheat from the chaff' as it were? Is there really a fool proof way of making a regular income and if there is, what is it?
You have no doubt heard of Betfair and there are thousands upon thousands of systems promising you a great income by using theirs, however is backing winners or laying losers really as easy as these people make out?
In this article, I'll discuss a horse laying system that I created and how I did it, so potentially you could create your own or use mine...
Hello, my name is Stuart Anderson and I am an avid fan of statistics and how statistics can be used to give you an edge when gambling on the horses. You'll already know that people have been using statistics to win at gambling since gambling was invented. You'll also probably think that people who make a living from gambling are few and far between but these people do exist and there are more than you'd realise. These people are called professional gamblers and the people who aren't making a living are called punters.
So what's the difference between a professional gambler and a punter? It isn't luck as you might think, it's actually knowing that when you put your money down on a bet the chances of you winning far outweigh the chances of you losing therefore giving you the opportunity of making more money than you can loose. So how can you achieve this in horseracing? Simple: instead of finding a winner, we try to find a loser. There can only be one winner of a horse race (apart from in the very rare example of a dead heat which, according to Wikipedia, has only happened 7 times in the last twenty years) so finding a losing horse is statistically a lot easier than finding a winner
So that leads us to our first conclusion, a horse laying system rather than a backing system is the obvious choice for creating a revenue stream from gambling.
The next step is finding a horse that has a higher chance of losing a race than the odds that are being offered for it to win so we can keep our risk level at the minimum in case we are unlucky enough to find a winner. So our second conclusion is to only lay horses with low odds.
The horse with the lowest odds in a race is called the favourite, now you may be nervous about laying a favourite because as the name suggests it appears that this is the horse that has the most chance of winning the race, but this simply isn't the case. A favourite is simply the horse that has the most amount of money bet on it by, you guessed it, the punters. We already found out that punters are the people who lose money more often than they win. We don't want to be a punter!
It is a statistical fact that favourites in horse races loose more often than they win, if that wasn't the case anyone could make a fortune by just backing the favourite in every race. Indeed, backing every favourite would be a sure way of losing lots of money and this is why not even the stupidest of punter would ever try this system and if they did they wouldn't try it for long as soon all of their money would be gone.
Now obviously, favourites do win some races so now we need to add some further criteria into our system, and that leads us to our final conclusion: only lay the favourites in the types of races where statistically the favourite loses over 97% of the time.
These conclusions led to me developing a system with a good friend of mine: John Campbell who is also well versed in statistical gambling and financial trading.
Together we developed our system horse laying system: horselays.com.
The real key to the success of the system is that it uses all of the conclusions that we arrived at earlier in this article. By having some very strict bet entry criteria, out of up to fifteen potentially qualifying races in a day we may only get one or two actual opportunities, out of these opportunities we only take the first one that qualifies and this is where we achieve over a 97% strike rate. With this strike rate you can start making a living by following this system. Starting off with only a few hundred dollars you can quickly build up your Betfair account and start making as much money as you want.
You can try out the system to by visiting and signing up to the daily e-mail service that costs less than one Euro a day. The e-mail has full instructions of how to use the system and all the qualifying races for that day. We are so confident that the system will make you money that we offer a 7 day money back guarantee. You really have nothing to loose and everything to gain.
Just remember, the key to success is following the rules and walking away for the rest of the day as soon as your target has been reached. You'll be surprised how quickly your Betfair balance grows from just hundreds of dollars to thousands.
I hope you'll give it a try and find the same financial freedom the system has brought me, if not thank you for reading my article and I hope you found it informative and useful. Whatever you decide, good luck in everything you do.
Stuart Anderson
You have no doubt heard of Betfair and there are thousands upon thousands of systems promising you a great income by using theirs, however is backing winners or laying losers really as easy as these people make out?
In this article, I'll discuss a horse laying system that I created and how I did it, so potentially you could create your own or use mine...
Hello, my name is Stuart Anderson and I am an avid fan of statistics and how statistics can be used to give you an edge when gambling on the horses. You'll already know that people have been using statistics to win at gambling since gambling was invented. You'll also probably think that people who make a living from gambling are few and far between but these people do exist and there are more than you'd realise. These people are called professional gamblers and the people who aren't making a living are called punters.
So what's the difference between a professional gambler and a punter? It isn't luck as you might think, it's actually knowing that when you put your money down on a bet the chances of you winning far outweigh the chances of you losing therefore giving you the opportunity of making more money than you can loose. So how can you achieve this in horseracing? Simple: instead of finding a winner, we try to find a loser. There can only be one winner of a horse race (apart from in the very rare example of a dead heat which, according to Wikipedia, has only happened 7 times in the last twenty years) so finding a losing horse is statistically a lot easier than finding a winner
So that leads us to our first conclusion, a horse laying system rather than a backing system is the obvious choice for creating a revenue stream from gambling.
The next step is finding a horse that has a higher chance of losing a race than the odds that are being offered for it to win so we can keep our risk level at the minimum in case we are unlucky enough to find a winner. So our second conclusion is to only lay horses with low odds.
The horse with the lowest odds in a race is called the favourite, now you may be nervous about laying a favourite because as the name suggests it appears that this is the horse that has the most chance of winning the race, but this simply isn't the case. A favourite is simply the horse that has the most amount of money bet on it by, you guessed it, the punters. We already found out that punters are the people who lose money more often than they win. We don't want to be a punter!
It is a statistical fact that favourites in horse races loose more often than they win, if that wasn't the case anyone could make a fortune by just backing the favourite in every race. Indeed, backing every favourite would be a sure way of losing lots of money and this is why not even the stupidest of punter would ever try this system and if they did they wouldn't try it for long as soon all of their money would be gone.
Now obviously, favourites do win some races so now we need to add some further criteria into our system, and that leads us to our final conclusion: only lay the favourites in the types of races where statistically the favourite loses over 97% of the time.
These conclusions led to me developing a system with a good friend of mine: John Campbell who is also well versed in statistical gambling and financial trading.
Together we developed our system horse laying system: horselays.com.
The real key to the success of the system is that it uses all of the conclusions that we arrived at earlier in this article. By having some very strict bet entry criteria, out of up to fifteen potentially qualifying races in a day we may only get one or two actual opportunities, out of these opportunities we only take the first one that qualifies and this is where we achieve over a 97% strike rate. With this strike rate you can start making a living by following this system. Starting off with only a few hundred dollars you can quickly build up your Betfair account and start making as much money as you want.
You can try out the system to by visiting and signing up to the daily e-mail service that costs less than one Euro a day. The e-mail has full instructions of how to use the system and all the qualifying races for that day. We are so confident that the system will make you money that we offer a 7 day money back guarantee. You really have nothing to loose and everything to gain.
Just remember, the key to success is following the rules and walking away for the rest of the day as soon as your target has been reached. You'll be surprised how quickly your Betfair balance grows from just hundreds of dollars to thousands.
I hope you'll give it a try and find the same financial freedom the system has brought me, if not thank you for reading my article and I hope you found it informative and useful. Whatever you decide, good luck in everything you do.
Stuart Anderson
Eliminate Debt From Last Year's Gift Giving Season
The slowing economy took a turn for the better this past shopping season, as retailers reported an increase in sales compared to the same time periods of the past few years. Considering that many stores depend on the holiday gift giving season for up to 40% - 50% of their annual sales, this was welcome news.
Sadly, a majority of people were still using credit cards for a majority of purchases, increasing account balances that were already too high. For the ever-increasing online purchases, paying with cash is never an option. Now, the time has come when the reality of those higher balances appear as the credit card monthly statements arrive.
The upswing in sales is a direct result of rising consumer confidence. People believe their personal economy is going to improve. When that improvement happens, the bills will get paid. However, when someone's personal economic condition does not improve, the cycle of debt begins.
Unless a person can payoff their card balances within a few months, then the amount of spent on those 2010 gifts will grow as interest on those purchases continues to accumulate. That 00 spent on holiday gifts could balloon from 00 to 00 once those purchases, plus interest, are paid for.
The unfortunate truth is that most people never know how much money they are actually spending. Current purchases are simply added to previous balances, interest, future purchases, and future interest. When a consumer does not know the actual cost of purchased items, it becomes nearly impossible to know how those purchases fit into the gift giving budget.
How do consumers survive in 2011 when the debt begins to grow out of control? First, put away the credit cards. Use cash or debit cards. This helps you spend less than your income. If a family's monthly income is not enough to cover the monthly expenses, then that family cannot survive. Period. Difficult choices must be made on which expenses must be cut out their lives.
Secondly, eliminate the debt burden left behind. Many people continue to discover that debt elimination programs are very real. These elimination programs take advantage of consumer protection laws which have existed for many years. To accomplish this, it is again imperative that the commitment is made to live without credit cards. Just stop to imagine the saving if you were not losing money on interest payments. That's greater spending power for you.
When using cash or debit cards for your purchases, you are less likely to make that un-needed purchase when you can actually see the money disappearing from their wallet, or when there is not enough money in the wallet to begin with.
Using cash for a majority of purchases makes it easier to eliminate foolish purchases, and save money. When using cash, your conscious is clear because the decision not to buy an item is made for them, so the guilt about buying, or not buying, an item is relieved. No money in the wallet? Oh well, no new pair of shoes for me today. Walk away without the guilt of a larger debt load.
Sadly, a majority of people were still using credit cards for a majority of purchases, increasing account balances that were already too high. For the ever-increasing online purchases, paying with cash is never an option. Now, the time has come when the reality of those higher balances appear as the credit card monthly statements arrive.
The upswing in sales is a direct result of rising consumer confidence. People believe their personal economy is going to improve. When that improvement happens, the bills will get paid. However, when someone's personal economic condition does not improve, the cycle of debt begins.
Unless a person can payoff their card balances within a few months, then the amount of spent on those 2010 gifts will grow as interest on those purchases continues to accumulate. That 00 spent on holiday gifts could balloon from 00 to 00 once those purchases, plus interest, are paid for.
The unfortunate truth is that most people never know how much money they are actually spending. Current purchases are simply added to previous balances, interest, future purchases, and future interest. When a consumer does not know the actual cost of purchased items, it becomes nearly impossible to know how those purchases fit into the gift giving budget.
How do consumers survive in 2011 when the debt begins to grow out of control? First, put away the credit cards. Use cash or debit cards. This helps you spend less than your income. If a family's monthly income is not enough to cover the monthly expenses, then that family cannot survive. Period. Difficult choices must be made on which expenses must be cut out their lives.
Secondly, eliminate the debt burden left behind. Many people continue to discover that debt elimination programs are very real. These elimination programs take advantage of consumer protection laws which have existed for many years. To accomplish this, it is again imperative that the commitment is made to live without credit cards. Just stop to imagine the saving if you were not losing money on interest payments. That's greater spending power for you.
When using cash or debit cards for your purchases, you are less likely to make that un-needed purchase when you can actually see the money disappearing from their wallet, or when there is not enough money in the wallet to begin with.
Using cash for a majority of purchases makes it easier to eliminate foolish purchases, and save money. When using cash, your conscious is clear because the decision not to buy an item is made for them, so the guilt about buying, or not buying, an item is relieved. No money in the wallet? Oh well, no new pair of shoes for me today. Walk away without the guilt of a larger debt load.
Wednesday, June 6, 2012
Keep Driving, Even When You Can't Afford Your Vehicle's Repair
It has happened to almost everyone at one time or another; our cars have unexpectedly broken down when we can't afford to pay for an expensive repair. In the past, those of us with no credit cards, or maxed out cards were left with no option except to take our vehicles off the road until such a time as we could afford the cost of the repair. Fortunately today we have alternatives to such situations.
Today there are vehicle repair financing companies that can help. These companies offer financing specifically to those with no credit, or bad credit, who simply don't have the option of increasing their credit card limit. Because this financing is offered to those with poor credit histories, the borrower's vehicle is used as collateral to secure the loan. The vehicle remains in the borrower's name at all times, unless the borrower defaults on the loan, at which point the vehicle's ownership is transferred to the lender.
Lenders are usually able to advance amounts up to half of the market value of the vehicle. Because these loans are given based on the value of the vehicle, not on the credit rating of the borrower, the funds can be advanced quite quickly. Some lenders are even able to approve loans and send the funds all within the same day. This allows the borrower to get their car repaired and have it back on the road within the same day, depending on the time spent on the repair.
The vehicle repair industry is a relatively new industry, so finding a lender may be difficult, but it's not impossible. Ensure that the lender you choose is a reputable one by checking with either the Better Business Bureau or a similar entity, and that they do not have outstanding complaints against them. You may also request references from former customers. Also check the conditions of the loan carefully, or else you may find yourself stuck in an unending cycle of paying down only interest with little or no reduction in the amount of the loan.
As with all loans, car-title loans should not be taken lightly. They should be used by those who due to poor credit are not able to seek financing through typical financial institutions. Payments must be made on time and in full or the borrower risks either having an increase in interest charges, or worse, losing their vehicle. Finding the right lender is an effective way to ensure that you have a good loan experience.
Today there are vehicle repair financing companies that can help. These companies offer financing specifically to those with no credit, or bad credit, who simply don't have the option of increasing their credit card limit. Because this financing is offered to those with poor credit histories, the borrower's vehicle is used as collateral to secure the loan. The vehicle remains in the borrower's name at all times, unless the borrower defaults on the loan, at which point the vehicle's ownership is transferred to the lender.
Lenders are usually able to advance amounts up to half of the market value of the vehicle. Because these loans are given based on the value of the vehicle, not on the credit rating of the borrower, the funds can be advanced quite quickly. Some lenders are even able to approve loans and send the funds all within the same day. This allows the borrower to get their car repaired and have it back on the road within the same day, depending on the time spent on the repair.
The vehicle repair industry is a relatively new industry, so finding a lender may be difficult, but it's not impossible. Ensure that the lender you choose is a reputable one by checking with either the Better Business Bureau or a similar entity, and that they do not have outstanding complaints against them. You may also request references from former customers. Also check the conditions of the loan carefully, or else you may find yourself stuck in an unending cycle of paying down only interest with little or no reduction in the amount of the loan.
As with all loans, car-title loans should not be taken lightly. They should be used by those who due to poor credit are not able to seek financing through typical financial institutions. Payments must be made on time and in full or the borrower risks either having an increase in interest charges, or worse, losing their vehicle. Finding the right lender is an effective way to ensure that you have a good loan experience.
Tuesday, June 5, 2012
The Benefits Of Acquiring An Investment In Turkey
Turkey is a good tourist destination because of its environment that not only supports touring activities but also investment ventures. An investment in turkey would do so well if because of the large populace of the country that makes it a great spot to develop business enterprises. The economy of the nation has grown and it is still growing giving hope to those who need to go into various businesses.
Any business quest will find favor in this vast country with a number of great qualities to support it from all sides. It is not a tourist nation for nothing but it is for the good climate and the charming coastline that surrounds it. Year in and year out this country is filled with tourists from around the world who come to enjoy its products and services.
Real estate is set to benefit more when this country finally joins the European Union as this will grow it economically hence boosting businesses. As you plan to invest in real estate; you should have this nation in mind because it is a good starting point. As the country develops, your business quests will also follow suit giving you more benefits every year.
A nation will grow when it has people working hard every day and only young people can do this fast and efficiently. This is the kind of populace that Turkey has that is set to grow it economically and if you want to grow as well; you need to invest in property that will engage this populace. Familiarize yourself with majority of the cities in the country that have openings for real estate investing.
People have migrated to these cities to look for jobs; if you have invested properly in your property in any of these cities, you can make good profits. The building standards of this country are investor friendly hence suitable for you if you are from any of the European countries. As you venture into this area, you will find it easy to make it a second home because the investment laws are favorable.
A great amount of confidence will be installed in you when you are comfortable where you are investing in. You will not only be free to make more developments but also be proud of what you have already. This is what the nation will make you feel once you have set foot in it with an aim of investing in property and succeed.
As a growing country, it is one that is filled with so many opportunities for you to take advantage of. Invest your money in well researched and certified investment dealings that will not only make you move to the highest levels but also create a stable ground for your business. There is always success waiting where hard work and determination are combined with knowledge and blended in with professionalism.
The entry of the nation into the European Union will not only open up more market for investors but also grow the current investments. Therefore if you have an investment in Turkey, you are very lucky because you are on the right route. The journey will be better as time moves on and the country joins the EU finally.
Any business quest will find favor in this vast country with a number of great qualities to support it from all sides. It is not a tourist nation for nothing but it is for the good climate and the charming coastline that surrounds it. Year in and year out this country is filled with tourists from around the world who come to enjoy its products and services.
Real estate is set to benefit more when this country finally joins the European Union as this will grow it economically hence boosting businesses. As you plan to invest in real estate; you should have this nation in mind because it is a good starting point. As the country develops, your business quests will also follow suit giving you more benefits every year.
A nation will grow when it has people working hard every day and only young people can do this fast and efficiently. This is the kind of populace that Turkey has that is set to grow it economically and if you want to grow as well; you need to invest in property that will engage this populace. Familiarize yourself with majority of the cities in the country that have openings for real estate investing.
People have migrated to these cities to look for jobs; if you have invested properly in your property in any of these cities, you can make good profits. The building standards of this country are investor friendly hence suitable for you if you are from any of the European countries. As you venture into this area, you will find it easy to make it a second home because the investment laws are favorable.
A great amount of confidence will be installed in you when you are comfortable where you are investing in. You will not only be free to make more developments but also be proud of what you have already. This is what the nation will make you feel once you have set foot in it with an aim of investing in property and succeed.
As a growing country, it is one that is filled with so many opportunities for you to take advantage of. Invest your money in well researched and certified investment dealings that will not only make you move to the highest levels but also create a stable ground for your business. There is always success waiting where hard work and determination are combined with knowledge and blended in with professionalism.
The entry of the nation into the European Union will not only open up more market for investors but also grow the current investments. Therefore if you have an investment in Turkey, you are very lucky because you are on the right route. The journey will be better as time moves on and the country joins the EU finally.
Monday, June 4, 2012
Investor Grievance Redressal Mechanism
Those who invest in equity shares through the IPO route or secondary market often find it difficult obtaining rightful ownership of their assets. This happens because of failure on the part of the intermediary that is, the merchant banker or banker to the issue, when investing in IPOs. At fault also may be brokers, sub-brokers and depository participants, and poor service delivery by companies or registrar and transfer agent in respect of share certificates and the benefits thereon.
Let us look at some of the ways in which grievances pertaining to secondary market transactions can be redressed. These are the safest and most transparent in the Indian economy. Ours is the only market where the purchaser of a service knows how much its supplier has earned in the transaction. A complete audit trial is provided for the satisfaction of investors. When somebody does not deliver, the redressal mechanisms are severe on the defaulter, but often not used because of geographical distances or the friendly relationship between investor and broker. The mechanism is also very time-bound since prices fluctuate on a second-to-second basis and a dispute cannot be addressed after too long a time lag. Prompt communication with the agency concerned is therefore vital.
The broker is the first point of redressal mechanism. The bye-laws provide that the investor should bring his dispute to the notice of the broker within six months from the date of transaction. The Bombay Stock Exchange, Mumbai, has established an Investor Grievance Redressal Committee (IGRC), which, upon receipt of a complaint from the investor, seeks explanation from the member within a certain period. The IGRC is a conciliatory committee, chaired by a retired High Court judge, that tries to bring about an amicable settlement. If this is not possible, then the parties are advised to go in for arbitration proceedings. The IGRC looks into the following complaints:
Non-receipt of shares/ sale proceeds of shares.
Non-settlement of accounts.
Disputes regarding rate difference.
Non-implementation of arbitration awards.
The conciliatory proceedings are not part of the byelaws. However, certain penalties are imposed on brokers for failure to appear before or fulfill commitments due to the committee. If the conciliatory proceedings fail, the investor has to file arbitration with the stock exchange.
This is a quasi-judicial mechanism, with a panel of arbitrators, consisting of retired High Court judges, and professionals, such as solicitors, chartered accountants, company secretaries, and others with a knowledge of the capital markets. The panel is constituted every year and approved by SEBI. Disputes against members of the Stock Exchange, Mumbai, and registered sub-brokers can be referred to arbitration:
The claimant has to bring the dispute to the member's notice in a written communication within six months from the date of claim. The NSE byelaws, on the other hand, state that the claim should be submitted to the arbitration within six months from the date on which it has arisen. For operational convenience, the date of transaction under dispute is taken for the purpose of calculating the time limit. The Stock Exchange, Mumbai, states that the complaint against the broker first be made to the IGRC, before accepting an arbitration application. A majority of the disputes get resolved at the IGRC level itself and investors are spared the lengthy arbitration process.
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The Stock Exchange, Mumbai, provides for an appeal bench, which is the second-tier arbitration mechanism. The party which is not satisfied with the award can refer it to an appeal bench within 15 days of its receipt and deposit the full and final amount with the exchange. The bench, in exceptional cases, grants exemption against such deposits.
SEBI has advised the Stock Exchanges to debit the amount of arbitration award in favour of the client against the member of the exchange form the security deposit or any other monies of the concerned members and keep the same in a separate account. The awards passed by the appeal bench are appealable in the High Court under Section 34 of the Arbitration and Conciliation Act, 1996. The appeal has to be filed within 90 days of the award.
There is a limitation clause in the Byelaws for filing claims against defaulter members. The rules provide that the arbitrators will entertain no claim against a defaulting member after the expiry of six months from the date a member is declared a defaulter.
The Stock Exchanges have set up customer protection funds, which disburse award amounts of up to Rs 10 lacs against a defaulter member. The Investor Protection Fund in administered by the defaulters committee of the exchange and it has the sole discretion to honor various awards. The awards, which are for non-payment of shares sold and for non-receipt of shares purchased, are only entertained by this committee. Therefore, all claims for profits or losses arising out of share market transactions are not honoured by the committee. The committee also does not honour amounts advanced to brokers by way of loans.
Systemic improvements in the market such as online trading, depositories and improvement in compliance levels have considerably reduced the number of disputes between clients and brokers. Enhanced margining systems have made the markets safer and defaults are few and far between. Yet, if you are in a sticky situation, do not delay in informing the authorities. Ensure that the purchases you paid for are credited to your demat account and cash on sales made is received on time. You discharge your obligations, the system is in place to take care of all the disputes.
Let us look at some of the ways in which grievances pertaining to secondary market transactions can be redressed. These are the safest and most transparent in the Indian economy. Ours is the only market where the purchaser of a service knows how much its supplier has earned in the transaction. A complete audit trial is provided for the satisfaction of investors. When somebody does not deliver, the redressal mechanisms are severe on the defaulter, but often not used because of geographical distances or the friendly relationship between investor and broker. The mechanism is also very time-bound since prices fluctuate on a second-to-second basis and a dispute cannot be addressed after too long a time lag. Prompt communication with the agency concerned is therefore vital.
The broker is the first point of redressal mechanism. The bye-laws provide that the investor should bring his dispute to the notice of the broker within six months from the date of transaction. The Bombay Stock Exchange, Mumbai, has established an Investor Grievance Redressal Committee (IGRC), which, upon receipt of a complaint from the investor, seeks explanation from the member within a certain period. The IGRC is a conciliatory committee, chaired by a retired High Court judge, that tries to bring about an amicable settlement. If this is not possible, then the parties are advised to go in for arbitration proceedings. The IGRC looks into the following complaints:
Non-receipt of shares/ sale proceeds of shares.
Non-settlement of accounts.
Disputes regarding rate difference.
Non-implementation of arbitration awards.
The conciliatory proceedings are not part of the byelaws. However, certain penalties are imposed on brokers for failure to appear before or fulfill commitments due to the committee. If the conciliatory proceedings fail, the investor has to file arbitration with the stock exchange.
This is a quasi-judicial mechanism, with a panel of arbitrators, consisting of retired High Court judges, and professionals, such as solicitors, chartered accountants, company secretaries, and others with a knowledge of the capital markets. The panel is constituted every year and approved by SEBI. Disputes against members of the Stock Exchange, Mumbai, and registered sub-brokers can be referred to arbitration:
The claimant has to bring the dispute to the member's notice in a written communication within six months from the date of claim. The NSE byelaws, on the other hand, state that the claim should be submitted to the arbitration within six months from the date on which it has arisen. For operational convenience, the date of transaction under dispute is taken for the purpose of calculating the time limit. The Stock Exchange, Mumbai, states that the complaint against the broker first be made to the IGRC, before accepting an arbitration application. A majority of the disputes get resolved at the IGRC level itself and investors are spared the lengthy arbitration process.
.
The Stock Exchange, Mumbai, provides for an appeal bench, which is the second-tier arbitration mechanism. The party which is not satisfied with the award can refer it to an appeal bench within 15 days of its receipt and deposit the full and final amount with the exchange. The bench, in exceptional cases, grants exemption against such deposits.
SEBI has advised the Stock Exchanges to debit the amount of arbitration award in favour of the client against the member of the exchange form the security deposit or any other monies of the concerned members and keep the same in a separate account. The awards passed by the appeal bench are appealable in the High Court under Section 34 of the Arbitration and Conciliation Act, 1996. The appeal has to be filed within 90 days of the award.
There is a limitation clause in the Byelaws for filing claims against defaulter members. The rules provide that the arbitrators will entertain no claim against a defaulting member after the expiry of six months from the date a member is declared a defaulter.
The Stock Exchanges have set up customer protection funds, which disburse award amounts of up to Rs 10 lacs against a defaulter member. The Investor Protection Fund in administered by the defaulters committee of the exchange and it has the sole discretion to honor various awards. The awards, which are for non-payment of shares sold and for non-receipt of shares purchased, are only entertained by this committee. Therefore, all claims for profits or losses arising out of share market transactions are not honoured by the committee. The committee also does not honour amounts advanced to brokers by way of loans.
Systemic improvements in the market such as online trading, depositories and improvement in compliance levels have considerably reduced the number of disputes between clients and brokers. Enhanced margining systems have made the markets safer and defaults are few and far between. Yet, if you are in a sticky situation, do not delay in informing the authorities. Ensure that the purchases you paid for are credited to your demat account and cash on sales made is received on time. You discharge your obligations, the system is in place to take care of all the disputes.
Sunday, June 3, 2012
How To Negotiate For Furniture When You're Involved In The Sale Of A House
To effectively negotiate furniture into the sales agreement for a house, you should identify in advance any furniture that you are interested in selling or buying, let the realtor know your terms and expectations, don't be afraid to receive or make a counteroffer, and closely examine the sales contract.
When purchasing or selling a home you can expect to do a great deal of negotiating and bargaining. Common things that transactors discuss include the price of the home, and what items are included in the sale, like furniture. Here is some advice on negotiating the furniture when buying or selling a home:
If you are interested in buying or selling any furniture you should tell us in advance
If you are a seller, make sure you already have a clear list of the furniture pieces that you are willing to leave behind or sell with the house. Furniture is included in the contract mostly when the buyer and seller can't come to a deal. If the purchaser talks about the inclusion of extra items, it is good to be prepared. If you are buying, be sure to look for items in the house that you are interested in when you are able to take a peek inside. Adequate attention must be paid on expensive furniture pieces that decorate your home as their replacement would be difficult.
Explain to the realtor what you want and how you plan to go about it
Make a note of which things you want to purchase or sell and give the list of items to your realtor. The real estate agent is the one who deals with the terms and negotiation between the purchaser and seller. As a buyer you should be certain to tell your realtor your standards for any possible deals in advance. For sellers, be careful about letting go of too much furniture too soon. Let the realtor know your terms, but you may want to hold back on offering high-cost pieces early in the negotiation. If the potential homebuyer needs some encouragement to consummate the deal, you can offer to include your more expensive furniture items.
There is no need to be afraid about making or getting a counteroffer
If you are a seller, you should not be surprised if your initial offer gets declined and you receive a counter offer. If you are presented with a counteroffer, look over it to see if the terms and conditions are consistent with your needs and then make a decision about whether you want to add furniture to the agreement. For buyers, don't be afraid to voice an alternative proposition if you see that the seller's proposal still has room for negotiation.
Closely examine the sales contract
Sellers should already have written a contract with clearly defined terms. Verify again and again so that you are not in trouble of any kind. In the case of buyers, make sure that you have examined the contract to determine if the seller included any furniture pieces in the deal. In order to make sure that you do not miss even the minutest print, ask your lawyer to review the same.
Buyers and sellers need not be nervous about negotiating all the possible issues as the purchase and sale of a property is a major event for both.
When purchasing or selling a home you can expect to do a great deal of negotiating and bargaining. Common things that transactors discuss include the price of the home, and what items are included in the sale, like furniture. Here is some advice on negotiating the furniture when buying or selling a home:
If you are interested in buying or selling any furniture you should tell us in advance
If you are a seller, make sure you already have a clear list of the furniture pieces that you are willing to leave behind or sell with the house. Furniture is included in the contract mostly when the buyer and seller can't come to a deal. If the purchaser talks about the inclusion of extra items, it is good to be prepared. If you are buying, be sure to look for items in the house that you are interested in when you are able to take a peek inside. Adequate attention must be paid on expensive furniture pieces that decorate your home as their replacement would be difficult.
Explain to the realtor what you want and how you plan to go about it
Make a note of which things you want to purchase or sell and give the list of items to your realtor. The real estate agent is the one who deals with the terms and negotiation between the purchaser and seller. As a buyer you should be certain to tell your realtor your standards for any possible deals in advance. For sellers, be careful about letting go of too much furniture too soon. Let the realtor know your terms, but you may want to hold back on offering high-cost pieces early in the negotiation. If the potential homebuyer needs some encouragement to consummate the deal, you can offer to include your more expensive furniture items.
There is no need to be afraid about making or getting a counteroffer
If you are a seller, you should not be surprised if your initial offer gets declined and you receive a counter offer. If you are presented with a counteroffer, look over it to see if the terms and conditions are consistent with your needs and then make a decision about whether you want to add furniture to the agreement. For buyers, don't be afraid to voice an alternative proposition if you see that the seller's proposal still has room for negotiation.
Closely examine the sales contract
Sellers should already have written a contract with clearly defined terms. Verify again and again so that you are not in trouble of any kind. In the case of buyers, make sure that you have examined the contract to determine if the seller included any furniture pieces in the deal. In order to make sure that you do not miss even the minutest print, ask your lawyer to review the same.
Buyers and sellers need not be nervous about negotiating all the possible issues as the purchase and sale of a property is a major event for both.
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