MOZILLA


Mozilla
Mozilla is a free software community best known for producing the Firefox web browser. The Mozilla community uses, develops, spreads and supports Mozilla products and works to advance the goals of the Open Web described in the Mozilla Manifesto. The community is supported institutionally by the Mozilla Foundation and its tax-paying subsidiary, the Mozilla Corporation.
In addition to the Firefox browser, Mozilla also produces Firefox Mobile, the Firefox OS mobile operating system, the bug tracking system Bugzilla and a number of other projects.
History

On February 23, 1998, Netscape Communications Corporation created a project called Mozilla (after the original code name of the Netscape Navigator browser which — according to Pascal Finette — is a mashup of “Mosaic Killer”) to co-ordinate the development of the Mozilla Application Suite, the open source version of Netscape’s internet software, Netscape Communicator. Jamie Zawinski says he came up with the name “Mozilla” at a Netscape staff meeting. A small group of Netscape employees were tasked with coordination of the new community.
Originally, Mozilla aimed to be a technology provider for companies, such as Netscape, who would commercialize their open source code. When AOL (Netscape’s parent company) drastically scaled back its involvement with Mozilla in July 2003, the Mozilla Foundation was launched as the legal steward of the project. Soon after, Mozilla deprecated the Mozilla Suite in favor of creating independent applications for each function, primarily the Firefox web browser and the Thunderbird email client, and moved to supply them direct to the public.
Recently, Mozilla’s activities have expanded to include Firefox on mobile platforms (primarily Android), a mobile OS called Firefox OS, a web-based identity system called Mozilla Persona and a marketplace for HTML5 applications.
In a report released in November of 2012, Mozilla reported that their total revenue for 2011 was $163 million, which was up 33% from $123 million in 2010. Mozilla noted that roughly 85% of their revenue comes from their contract with Google.
Software
Firefox

Firefox is a web browser, and is Mozilla’s flagship software product. It is available in both desktop and mobile versions. Firefox uses the Gecko layout engine to render web pages, which implements current and anticipated web standards.[14] As of July 2012, Firefox has approximately 24% of worldwide usage share of web browsers, making it the third most widely used web browser.
Firefox began as an experimental branch of the Mozilla codebase by Dave Hyatt, Joe Hewitt and Blake Ross. They believed the commercial requirements of Netscape’s sponsorship and developer-driven feature creep compromised the utility of the Mozilla browser. To combat what they saw as the Mozilla Suite’s software bloat, they created a stand-alone browser, with which they intended to replace the Mozilla Suite.
Firefox was originally named Phoenix but the name was changed so as to avoid trademark conflicts with Phoenix Technologies. The replacement name, Firebird, provoked an intense response from the Firebird free database software project. The current name, Firefox, was chosen on February 9, 2004.
[edit] Firefox Mobile
Firefox Mobile (codenamed Fennec) is the build of the Mozilla Firefox web browser for devices such as smartphones and tablet computers.
Firefox Mobile uses the same Gecko layout engine as Mozilla Firefox. For example, version 1.0 used the same engine as Firefox 3.6, and the following release, 4.0, shared core code with Firefox 4.0. Its features include HTML5 support, Firefox Sync, add-ons support and tabbed browsing.
Firefox Mobile is currently only available for Android 2.2 and above devices with an ARMv7 CPU. Work is ongoing to support ARMv6. Tristan Nitot, president of Mozilla Europe, has said that it’s unlikely that an iPhone or a BlackBerry version will be released, citing Apple’s iTunes Store application approval policies (which forbid applications competing with Apple’s own, and forbid engines which run downloaded code) and BlackBerry’s limited operating system as the reasons.
Firefox OS
Firefox OS (project name: Boot to Gecko also known as B2G) is an open source operating system in development by Mozilla that aims to support HTML5 apps written using “open Web” technologies rather than platform-specific native APIs. The concept behind Firefox OS is that all user-accessible software will be HTML5 applications, that use Open Web APIs to access the phone’s hardware directly via JavaScript. It has been demonstrated on Android-compatible smartphones (B2G uses the core of Android as a base).
Thunderbird
Thunderbird is a free, open source, cross-platform email and news client developed by the Mozilla Foundation.
SeaMonkey

SeaMonkey (formerly the Mozilla Application Suite) is a free and open source cross platform suite of Internet software components including a web browser component, a client for sending and receiving email and USENET newsgroup messages, an HTML editor (Mozilla Composer) and the ChatZilla IRC client.
On March 10, 2005, the Mozilla Foundation announced that it would not release any official versions of Mozilla Application Suite beyond 1.7.x, since it had now focused on the standalone applications Firefox and Thunderbird. SeaMonkey is now maintained by the SeaMonkey Council, which has trademarked the SeaMonkey name with help from the Mozilla Foundation. The Mozilla Foundation provide project hosting for the SeaMonkey developers.
Bugzilla

Bugzilla is a web-based general-purpose bug tracking system, which was released as open source software by Netscape Communications in 1998 along with the rest of the Mozilla codebase, and is currently stewarded by Mozilla. It has been adopted by a variety of organizations for use as a bug tracking system for both free and open source software and proprietary projects and products. For instance Bugzilla is used by Mozilla Foundation, NASA, Yahoo!, GNOME, KDE, Red Hat and Novell.
Components
NSS
Network Security Services (NSS) comprises a set of libraries designed to support cross-platform development of security-enabled client and server applications. NSS provides a complete open-source implementation of crypto libraries supporting SSL and S/MIME. NSS is triple-licensed under the Mozilla Public License, the GNU General Public License, and the GNU Lesser General Public License.
AOL, Red Hat, Sun Microsystems/Oracle Corporation, Google and other companies and individual contributors have co-developed NSS and it is used in a wide range of non-Mozilla products including Google Chrome, Evolution, Pidgin, and OpenOffice.org.
SpiderMonkey
SpiderMonkey is the original JavaScript engine developed by Brendan Eich when he invented JavaScript in 1995 as a developer at Netscape. It became part of the Mozilla product family when Mozilla inherited Netscape’s code-base in 1998. In 2011, Eich transferred the nominal ownership of the SpiderMonkey code and project to Dave Mandelin.
SpiderMonkey is a cross-platform engine written in C++ which implements ECMAScript, a standard developed from JavaScript. It comprises an interpreter, several just-in-time compilers, a decompiler and a garbage collector. Products which embed SpiderMonkey include Firefox, Thunderbird, SeaMonkey, and many non-Mozilla applications.
Rhino
Rhino is an open source JavaScript engine managed by the Mozilla Foundation. It is developed entirely in Java. Rhino converts JavaScript scripts into Java classes. Rhino works in both compiled and interpreted mode.
Gecko
Gecko is a layout engine that supports web pages written using HTML, SVG, and MathML. Gecko is written in C++ and uses NSPR for platform independence. Its source code is licensed under the Mozilla Public License.
Firefox uses Gecko both for rendering web pages and for rendering its user interface. Gecko is also used by Thunderbird, SeaMonkey, and many non-Mozilla applications.
Other activities
Mozilla Persona
Mozilla Persona is a secure, cross-browser website authentication mechanism which allows a user to use a single username and password (or other authentication method) to log in to multiple sites.
Mozilla Marketplace
The Mozilla Marketplace is a marketplace for HTML5 applications. Its current main purpose is to support Firefox OS.
Webmaker
Mozilla Webmaker is a ‘web literacy’ project. Its goal is to “help millions of people move from using the web to making the web.”
Mozilla Developer Network
Mozilla maintains a comprehensive developer documentation website called the Mozilla Developer Network which contains information about web technologies including HTML, CSS, SVG, JavaScript, as well Mozilla-specific information.
In addition, Mozilla publish a large number of videos about both web technologies and the development of Mozilla projects on the Air Mozilla website.
Community
The Mozilla Community totals over 40,000 active contributors from across the globe. They include both paid employees and volunteers who work together to try and achieve the goals set forth in the Mozilla Manifesto. Many of the sub-communities in Mozilla have formed around localization efforts for Mozilla Firefox, and the Mozilla web properties.
Local communities

There a number of sub-communities that exist based on their geographical locations, where contributors near each other work together on particular activities, such as localization, marketing, PR and user support.
Mozilla Reps

The Mozilla Reps program aims to empower and support volunteer Mozillians who want to become official representatives of Mozilla in their region/locale.
The program provides a simple framework and a specific set of tools to help Mozillians to organize and/or attend events, recruit and mentor new contributors, document and share activities, and support their local communities better.
When joining the program, a Mozilla Rep agrees to take on the following responsibilities:
• represent Mozilla in their country/region
• promote the Mozilla Project and our mission
• build on and support existing/future local community efforts and programs
• inspire, recruit and support new contributors
• support and mentor future Mozilla Reps
• document clearly all their activities
Conferences and events

The Mozilla Festival is an annual event where hundreds of passionate people explore the Web, learn together and make things that can change the world. With the emphasis on making—the mantra of the Festival is “less yack, more hack.” Journalists, coders, filmmakers, designers, educators, gamers, makers, youth and anyone else, from all over the world, are encouraged to attend, with attendees from more than 40 countries, working together at the intersection between freedom, the Web, and that years theme.
The event revolves around design challenges which address key issues based on the chosen theme for that years festival. In previous years the Mozilla Festival has focused on Learning, and Media, with the 2012 festival being based around making. The titles of the festival revolve around the main theme, freedom (as in freedom of speech not free beer), and the Web.
MozCamps
MozCamps are the critical part of the Grow Mozilla initiative which aims to grow the Mozilla Community. These camps aim to bring core contributors from around strategic. They are an intensive multiday summits that include keynote speeches by Mozilla leadership, workshops and breakout sessions (lead by paid and un-paid staff), and fun social outings. All of these activities combine to reward contributors for their hard work, engage them with our new products and initiatives, and align all attendees on Mozilla’s mission.

BINARY OPTIONS


BINARY OPTIONS
How to Set up a Binary Options Trade:
The ability to trade the different types of binary options can be achieved by understanding certain concepts such as strike price or price barrier, and expiration date. All binary option trades have dates at which the trades expire.
When the trade expires, the behaviour of the price action according to the trade type selected will determine if the trade is in profit (in the money) or in a loss position (out-of-the-money). In addition, the price targets are key levels that the trader sets as benchmarks to determine trade outcomes. We will see the application of price targets when we explain the different trade types.
There are three types of binary options trades. Each of these has different variations. These are:
1) High/Low trade
2) In/Out
3) Touch/No Touch
Let us take them one after the other.
High/Low
Also called the Up/Down binary trade, the essence of this trade is to predict if the market price of the asset being traded will end up higher or lower than the strike price (target price the trader has selected) before the expiration of the trade. If the trader expects the price to go up (the “Up” or “High” trade), he purchases a call option. If he expects the price to head downwards (“Low” or “Down”), he purchases a put option. Expiry times can be as low as 5 minutes.

Please note: some brokers classify Up/Down as a different trade type where a trader purchases a call option if he expects the price to rise beyond the current price, or purchases a put option if he expects the price to fall below current prices. You may see this as a Rise/Fall trade type on some trading platforms.

In/Out
The In/Out binary trade type, also called the tunnel trade or the boundary trade, is used to trade price consolidations (“in”) and breakouts (“out”). How does it work? First, the trader sets two price targets to form a price range. He then purchases an option to predict if the price will stay within the price range/within the price tunnel/within the two price boundaries until expiration (In) or if the price will breakout of the price range in either direction (Out).

The best way to trade the tunnel binaries is to use the pivot points of the asset to be traded. If you are familiar with pivot points in forex, then you should be able to trade this binary option type.
Touch/No Touch
This set of binary options is predicated on the price action touching a price barrier or not. A “Touch” binary option is a trade type where the trader purchases a contract that will deliver profit if the market price of the asset purchased touches the set target price at least once before the expiry of the date. If the price action does not touch the price target (the strike price) before expiry, the trade will end up as a loss and the trader loses the money invested in that trade.
A “No Touch” trade is the exact opposite of the Touch trade. Here the trader is betting on the price action of the underlying asset not touching the strike price before the expiration of the trade. If this trade plays out as the trader wishes, the trade ends up in the money and the trader smiles home with a profit.

There are variations of this trade where we have the Double Touch and Double No Touch. Here the trader can set two price targets and purchase a contract that bets on the price touching both targets before expiration (Double Touch) or not touching both targets before expiration (Double No Touch). Usually, binary options traders employ the Double Touch trade when there is intense market volatility and prices are expected to take out several price levels.
Some brokers offer traders all three types of trades. Some offer two, and there are those that offer only one binary options trade variety. In addition, some brokers also put restrictions on how expiration dates are set. In order to get the best of the different types of trades, traders are advised to shop around for brokers who will give them maximum flexibility in terms of trade types and expiration times that can be set.

3 5
The Best Times to Trade Binary Options
By BinaryOptions.net • Leave a Comment
Lesson 1: The Best Times to Trade Binary Options
Welcome to our new series on binary options trading for beginners, where we will take you by the hand and show you a systematic way to trade binary options. Today we will touch on the best times to trade binary options.
Binary options’ trading involves trading several assets and making money based on the outcome of the price direction. Some of these assets are traded on a 24-hour basis: here we have currencies, commodities and stock indices. Stocks are not usually traded on a 24-hour basis. The trading hours of a stock market determine the times at which a stock listed in that market is traded. When you take the time zones of the trading capitals of the world into consideration, this gives different trading hours for trading stocks on the binary options market.
The binary options market is one where traders make money based on predicting direction, and volatility is what gives price action direction in the market.
Trading works best when the market is bubbling with activity from traders all over the world. When there is good trader activity in the market, it generates the liquidity and volatility needed for the underlying asset to get to its target before the option expires.
Even though assets like currencies and commodities are supposed to be 24-hour markets, there are only certain times of the day when the market activity is at its maximum. This is usually when we have an overlap of the trading zones of the world.
Because not all assets have the same trading hours, we will discuss the various classes of assets as separate entities, taking into account their own peculiar trading hours.
Timing for Stocks
As we mentioned earlier, stocks are usually traded for a maximum of 6 to 8 hours a day. Stocks of most major companies outside the US are traded on the US stock markets as American Depository Receipts (ADR). As such, the US markets are used as the benchmark of checking the trading hours for stocks. US stock markets usually trade from 9.30am EST to 4pm EST.
However, there are other markets in Europe that are just as important, such FTSE (7am GMT to 3.30om GMT) and the Xetra Dax (8am GMT to 4.30pm GMT) in Germany. If you are trading stocks in the binary options market, pay attention to the times at which the stock markets in which they are listed are in operation.
Timing for Currencies
The forex market is most active when there is an overlap of the London/Asian and London/New York time zones. The diagram below gives a perfect illustration of this.

You also need to know that the local currencies of the active time zones will have increased volatility over others. For instance, the Australian Dollar will be more active during the Asian/London time zone overlap than the London/New York time zone overlap.
Timing for Commodities
Commodity markets are most active at the following times:
Crude oil (NYMEX.CL) – 9am EST to 2.30pm EST
Natural gas – 9.30am EST to 5.15pm EST
Corn – 9.30am EST to 1.15pm EST
Gold – 8.20am EST to 5.15pm EST
Silver – 8.25am EST to 5.15pm EST
Another way of studying the trading times would be to group the commodities under the exchanges where they are traded. As such, the agricultural commodities, which are traded in the Chicago Mercantile Exchange, are more actively traded from 9.30am EST to 1.15pm EST and from 6pm EST to 7.15am EST the next day.
Full information on trading hours is available on the CME Group website.
Timing for Index Futures
Stock indices are CFD instruments that measure the movement of the relevant exchanges, As such, the DJ30, NASDAQ100 and S&P500 will conform to the US markets open from 9.30 am EST to 4.30pm EST, and the DAX30 will conform to that of the Xetra Dax’s trading hours.
Once you master the trading hours for each asset, you are one step away from potential profitability in the market.
Tools for Binary Options Trading
By BinaryOptions.net • Leave a Comment
Lesson 2: Tools for Binary Options Trading
Today, we will talk about those tools that a beginner trader must have in order to succeed in binary options trading.
The difference between a binary options trader and a gambler is simple. The binary options trader does his analysis before he goes into the market. The gambler simply makes his move based on a hunch or bases his bet on luck. In trading, there is no room for luck and a trader must acquire the necessary tools in order to succeed in trading.
Here are the tools every binary options trader must have.
Charts
Charts are the bedrock of technical analysis and there is no way a trader can make it in the binary options market without having charts with which to perform technical analysis. Charts tell us a whole lot about what a financial asset is doing. The key to succeeding in the binary options market is being able to make accurate predictions, and charts can go a long way with helping us make predictions.
• Where To Get Charting
Charts are great predictors of market movement. Using a chart patter, you can tell if the price of an asset is headed up or down (which can be used to trade a High/Low trade or Up/Down trade). You can also tell if an asset will move sideways in a consolidation, which can then be used to play the Boundary (In/Out) trade.

In the chart example above, the market stayed in consolidation for about four days before making a southwards move. This chart could be used to make an “IN” trade in the In/Out variety, restricting the expiry to 3 days.

Likewise, this descending triangle chart could be used to trade a “Low” or “Down in a High/Low or Up/Down trade. It could also be used to trade a “Touch” trade, selecting a price barrier between the S1 and S2 support lines, or could be used to trade a “No Touch”, using a price barrier between the Daily Pivot and R1. There are so many possibilities.
Without charts, forget about making money in binary options. It will not happen.
Signals
Signals are trades analyzed either from real people or automatically generated tools or strategies. Indicators are tools which help you analyze data yourself. Signals can be useful for beginners, click here for reviews of some binary option signal providers.
Technical Indicators
When you combine technical indicators with charts, then you have increased the probability of making winning trades, and doing that consistently.
The chart below is an example of how I use a strategy based on the MACD technical indicator, as well as the moving average trend indicator to determine what the price action of an asset will be. Once more, this can be used to trade all manner of possibilities. This particular strategy correctly showed that the price action of the AUDUSD would breakout in an upward direction following the cross of the moving averages as well as the MACD crossover from negative to positive. I could place the following trades in the market using this strategy:
1) A “High” option in a High/Low trade
2) A “Touch” option using a price barrier between 1.0200 and 1.0300.
3) A “No Touch” option using a strike price below the stop loss of 0.9700.
4) An “Out” trade setting a range between the stop loss and the resistance level of 1.0170.

If you get the analysis right, you will score winners on all the option types and instead of an 85% payout, you quadruple your earnings!
A word of caution: you get this wrong, and your losses will quadruple as well.
However, with charts and technical indicators, you will win and not lose.
Knowledge of Technical Analysis
Knowing how to combine charts and technical indicators to predict price action is known as technical analysis. It is not enough to have these tools. You need to know how to use them. In subsequent lessons, we will show you how.
Further reading:
• Lotz of Botz’s outlines the tools he uses to trade and explains why he finds them useful
Risk Management for Binary Options Trades
By BinaryOptions.net • Leave a Comment
Risk Management for Binary Options Trades
Binary options, just like any other form of financial trading, has an element of risk involved. You could lose all or most of your money in an instant if you are careless or greedy. As such, the concept of risk management is one that every binary options trader should take very seriously.
• Is Binary Options Trading Gambling?
• Mifune on Money Management
• Mifune on Money Management II
• Mifune on using a hedging strategy when trading binary options
• Lotz of Botz on how to protect yourself from going bust
The generally accepted risk management rule adopted universally by professional traders is that no more than 5% of the account size should be exposed to the market at any given point in time. What this simply means, is that if you have a $1000 binary options account, you should not have more than $50 in the market at any given time. Trading anything more than this is extremely risky, especially as binary options is an “all or none” type of market.
It is not like forex where you can cut your losses early if you see that you are probably in a bad trade. In binary options, unless your broker is the type that gives back 15% of invested capital in trades that are out of the money, or you have the opportunity to sell off the contract before expiry (variable options), then you are out of luck if your trade goes bad. So you need to be sure that you properly utilize the only means of controlling risk available to you.
Calculating your risk in binary options is actually very easy. For every $1000 in your account, you can only afford to expose $50 at any single time. So your first step is to identify and sign up with a broker that will allow you to place trades within the confines of your acceptable risk appetite.
Binary options brokers have made this very easy, because the moment a trader pushes the button to purchase a contract, the trader is immediately shown the cost of purchasing that contract. He cannot lose more than what he spent purchasing the binary options contract, so for every contract purchased, the amount at risk is known and the potential reward is also known. This enables the trader to do what is necessary in order to keep his risk within acceptable limits.

This is a typical trade for a $5,000 account. The expected payout for the Rise/Fall trade is $500. In binary options, payouts are made up of your invested capital and your profit. So for a payout of $500, this trade will cost the trader either $267.67 or $268.70, which is approximately 5% of the account size.
However, this is for a single trade. If you want to take 2 trades, then you need to split your payout into two, and then select a trade that will reflect a 50% investment of the expected payouts from both trades.
The essence of all this is to protect your account from the devastating effects of losses in a single trade where too much capital was invested. Imagine a situation where a trader with a $5,000 account tries to hit a $2,000 payout and invests $1000 into a trade. If that trade is out of the money, then he has lost 20% of his account in just ONE trade!
You may think this is over the top but you will be surprised at how often many retail traders succumb to the destructive emotion of greed and try to dare the market in this manner. Do not fall prey to this.
We all hope to win but the truth is that there will be times when we make bad trade calls. It has happened to everyone; even the great Warren Buffett lost millions in October 2008. But what separates those who re-emerge as successful traders from the rest is the ability to control their risk. Control yours too.
How Variable Binary Options Can Work in Your Favour
By BinaryOptions.net • Leave a Comment
How Variable Binary Options Can Work in Your Favour
While it is true that binary options has many advantages that make it an appealing prospect for traders, there is one big disadvantage with binary options. Once a trade has been placed, you have to wait for the trade to expire to know the trade outcome.
I have found myself in a situation where I opened a Rise/Fall trade which was immediately in the money within 5 minutes. However I got my expiry dates all wrong and I watched helplessly as a contrarian effect hit my underlying asset and my position eventually reversed and ended up out of the money. This is a huge problem faced by many binary option traders.
However, a solution has hit the markets. A few brokers have now made a departure from offering strict fixed odds in binary options to offering variable or flexible odds in the market. This feature allows a trader to either take profits before the expiry date, or cut losses before expiry. Let us use a practical example to illustrate this point.
Let us assume that a trader purchased a binary options contract on an underlying asset such as the EURUSD. Perhaps the trader may have betted on a bearish move on the EURUSD, selecting a “Fall” trade on the Rise/Fall binary options variety on a Friday before market close. A possible factor that the trader may have considered is all the bad news from the Eurozone; the credit rating downgrades, threat of Greek default, sovereign debt issues in Italy or Spain, etc. He places the trade with extreme confidence, only to wake up on Monday morning to discover that events over the weekend have conspired against his trade. Perhaps the Eurozone financial ministers met in Brussels and took some far-reaching decisions that the markets interpreted as being Euro – positive. Seeing that his expiry was set at Monday close, the trader may realize that his trade may just end up on the losing side and cause him to lose his money.
This is where the Take Profit feature comes to the rescue. If the trader wakes up on Monday and sees that his profit has dwindled from 45% on Friday close to just 13% two hours after market open on Monday, he can decide to lock in the remaining profits before the Monday close expiry.
Usually, there is a cost to using this feature, and the trader may have to pay a fee to be able to lock in profits before time. In addition, traders must remember that underlying assets may not be available for lock-in of profits all the time or the process would be severely abused. Usually, there are specific times during which profits can be locked in. There are also restrictions on how often a trader can lock in profits in a day, and usually lock-in of profits may only be available for some underlying assets and not for others. We may also see restrictions that allow a trade to lock-in profits only if he has been in that trade for a specific amount of time.
Whatever the restriction, we have to applaud the benevolence of some brokers like AnyOption that allow traders to use this feature. It is a lot better to be able to conserve profits some of the time rather than not being able to do it at all.
So if you are interested in adding this feature as one of the things you would desire to see in your trading platform, consider searching the internet for a suitable broker.
How Postponing Binary Option Expiry Times Can Work in Your Favour
By BinaryOptions.net • Leave a Comment
How Postponing Binary Option Expiry Times Can Work in Your Favour
In the last lesson, we talked about how a new feature known as variable options could help traders to lock-in profits or cut losses. In today’s lesson, we shall talk about another feature that can work in a trader’s favour, which is the use of a feature we shall call the binary options roll forward feature.
So what exactly is the binary options roll forward feature?
This is a feature that allows the trader to postpone the expiry dates of the binary options contracts he has purchased. This is a trade preservation feature which attempts not to lock-in profits or control losses, but to give the trade more room to breathe in order to allow a trade otherwise destined for loss to recover.
Let us illustrate this with the same example that we used in Lesson 7. The trader placed a Rise/Fall trade with a bullish sentiment on the EURUSD, but the trade takes a wrong turn on Monday after a resuce mission by the Eurozone finance ministers over the weekend. Worse still, the expiry is set to Monday market close. Now if this trade is already in a loss position, there is no profit to rescue. Rather, the trader can decide to give the trade room to recover by extending the expiry date from Monday market close to a comfortable future date when he feels the bad news from the Eurozone would take hold of the market once more.
For this feature to work out well in your favour, you need to study the market and do some analysis to see if the trade truly has any chance to recover. The truth is that it actually works. For instance, I have just come out of 2 trades in the forex market; one for the EURAUD and the other for the AUDUSD. I was bullish on the AUD, but one of the trades was negative to -75 pips at a point, while the other was -30 pips at a point. Some traders would panic on seeing the red colour of negative pips everywhere, but knowing fully well that the AUD was soon to be on a bullish roll as a result of some positive market data, the trades were allowed to run and they recovered to 73 pips and breakeven respectively.
When you need some time to let your well analyzed but probably ill-timed trades to recover, the roll forward feature is what you need.
Using the Roll Forward feature will cost the trader some money, just as we have in the variable option feature. But this is a small price to pay to have your trade rescued from ruin.
Once again, it is not recommended to use the Roll Forward at the slightest opportunity; abusing this feature could get you penalized by your broker. It is very important that trades are analyzed carefully and expiry times planned properly so that you will not have recourse to using the Roll Forward tool every single time your trade runs into trouble. Do not succumb to the tendency to get careless with your trade planning just because you have a Roll Forward feature. It is only available on few broker platforms anyway, so many traders will not have the opportunity to use it. But if you are lucky enough to have an account with a broker that offers it, then use it carefully.
Where Not to Trade Binary Options
By BinaryOptions.net • Leave a Comment
Where Not to Trade Binary Options
Binary options trading may be exciting and have great prospects, but the question must be asked: is it supposed to be traded on any underlying asset?
Binary options is a trade type that is based on correctly predicting price direction as related to targets and deadlines. If you attempt to trade binary options where it becomes difficult or impossible to predict price directions, then you are in for a money-draining spree. Here are the few situations where you should not trade binary options if you do not want to lose money.
1) During News Trades
Much has been said about trading the news and the extreme volatility that could follow these events. No one can tell for sure what the market response to a news item will ultimately be. There have been occasions when the news seemed to point one way, only for traders to come up and send the underlying asset in such a strong reversal. I remember a trade I took on the USDCAD in 2008 when the news sent the USDCAD soaring, only for traders to sell the USD long and hard, prompted by a hefty trade volume from a trader in the middle East who bought Euros and sold the USD in very massive amounts, thus completely obliterating whatever gains that those who purchased the USD against the CAD had made. Such is the nature of news trading and it is simply not advised to try purchasing a binary options contract when a news event is playing out in the market.
2) On the CHF Pairs
Many binary brokers have taken away the CHF pairs from their trading platforms, but a few have left them there as a snare for traders wishing to dare the EURCHF minimum exchange rate peg set by the Swiss National Bank (SNB) on September 6, 2011. There have been rumours floating in the markets on several occasions that the SNB intends to raise the peg from 1.2000 to 1.2500. If such a move plays out, the peg will drag the CHF along with it wherever that currency is found. Even without the actual move by the SNB, the rumours have always triggered a frenzy of CHF selling. So it is really risky taking positions in the CHF pairs as the risk of the trade disintegrating before the trader’s eyes are very real. Interventions are surprise events and can be very nasty if you are caught on the wrong side.
3) The Yen Crosses
The Japanese economy depends on a weak Yen to sell its products cheaply to its trade partners. A strong Yen certainly does not give the Bank of Japan much joy, and even though they have been more conservative with interventions, they have wielded the big stick twice in 2011. The USDJPY has been range trading for a long time, which is not the usual pattern for this currency pair. There is nothing ruling out interventions in 2012 and so traders are better off looking for some other underlying asset to trade binary options on.
Trading involves some bit of common sense. There is no wisdom in putting money in trades that pose greater risk and where there is more uncertainty. There are many other assets that can be traded comfortably; traders are advised to trade those assets, and under the right conditions.
How to Perform a Binary Options Analysis
Binary options analysis is the practice of analysing a binary options trade prior to execution. Before taking on a trade in any market, it is necessary to carry out technical and fundamental analysis of the asset you intend to trade in order to increase the chances of success. The binary options market is no different. Without binary options analysis, trade would be more of guesswork and nothing would distinguish it from the roulettes and other stuff that belong to the casinos of Las Vegas. In binary options, there is no place for gambling or guesswork in trades; leave that to the guys in Vegas.
Sometimes, binary options trades are referred to as bets. I really do not like this terminology, because trading is not something you pick up from the street. If one has decided to trade binary options, it has to be taken seriously and learning to perform binary options analysis is an integral part of the learning process.
Binary options’ trading is all about predicting the directions and behaviour of assets. Since the same assets that are traded in their respective markets are the same ones we will encounter in binary options, it is necessary to know how to analyse these assets technically and fundamentally. When the trader has mastered this, he will be able to carry out solid binary options analysis.
Let us take an actual trade example. This trade was a Touch/No Touch trade for the EURUSD taken on October 25, 2011, with a 24-hour expiry. We placed a No Touch binary option trade for the EURUSD, predicting that the EURUSD would not touch the price barrier of 1.4031 before expiry.

The trade was successful, as the EURUSD did not reach the price barrier before the expiration date. A total of $55.65 was staked in the trade, with a profit of $44.35, giving us a total payout of $100.
Now was this a product of guesswork or a trading hunch? No. This was a product of technical and fundamental analysis carried out on this pair prior to the execution of this trade.
The Binary Option Analysis for this Trade
The first step in performing a binary options analysis for this trade was to locate a chart for the EURUSD to analyse. Since most binary options brokers do not offer charting tools, we had to locate a forex broker whose trading platform had charts or us to use. We located one and started the analysis.

Fundamental Analysis
In the financial markets, the fundamentals of an asset always supersede the technicals. This is why we did a fundamental analysis first. At the time of analysis, there was a meeting of the Eurozone financial ministers to determine how to put together a rescue package for Greece, which was groaning under a sovereign debt crisis. At the same time, Italy was also on the radar as its debt reached a staggering 600billion Euros. These were indeed bad times for the Euro and the markets had responded accordingly. The meeting was due to end later that week with the issuing of a communiqué to announce measures to help these countries out. We knew that the markets would be range-bound as traders looked to the outcome of that meeting for direction. Thus, we did not see the Euro climbing past the 1.4000 psychological barrier before the end of the meeting.
Technical Analysis
We headed over to the charts to see what the price action was saying, and we got the confirmation we needed. A strong resistance had capped the EURUSD at 1.39605 for three days straight. Thus, we were able to set an appropriate price barrier that we felt that the EURUSD would not achieve in 24 hours.

The trade was then setup on the binary options platform, with a price barrier of 1.4031 and a 24-hour expiry. As at the expiration of the trade on October 26, 2011, the resistance cap was yet to be breached, putting us in the money.
Binary options analysis is not about guesswork, or trading on a hunch. You must be able to perform the appropriate analysis of the fundamentals of the asset you want to trade, look for confirmation on the charts and then execute the trade accordingly.

Trading Binaries with the Fibonacci Tool
By BinaryOptions.net • Leave a Comment
A Sure-fire Way of Trading Binaries with the Fibonacci Tool
In my experience dealing with retail traders, I have come to discover that the Fibonacci retracement tool is one of those lesser used technical indicators in market analysis. Mention the MACD or moving average indicators and traders will immediately brighten up with recognition. But talk about Fibonacci and everyone just draws blank.
Retracements are a normal part of trading. They occur all the time and a trader needs to know how to use retracements to his advantage. This is what the Fibonacci retracement tool does for you. The tool plots five horizontal lines on the charts which correspond to 5 possible areas to which prices may retrace, with the distances expressed in terms of percentage of the original move:
– 100%
– 61.8%
– 50%
– 38.2%
– 0%
Prices can retrace to any of these points. So how would you use the retracement tool to trade binary options?

If I were to trade binary options using retracement, this is what I would do:
1) I would select a strongly trending financial instrument, such as gold, EURJPY, GBPJPY or EURUSD.
2) I would select a time frame that will confirm that what is playing out in the market is actually a retracement and not something else. I would therefore choose the Daily chart.
3) I would purchase a “Touch” option in the Touch/No Touch trade type as my preferred trading option, picking a point between current prices and the 23.6% retracement point.
Trade Technique

Take a look at the Daily chart for the EURUSD. Note that by selecting this chart, I have already fulfilled my first two trade conditions. It is a daily chart, showing me when a retracement is actually occurring, and the EURUSD trends well, being the most actively traded currency pair in the market.
I am now looking for how to fulfil my third condition, which is actually my trade objective. I want to pick a strike price at a point along the course of the price retracement, between the market price and the 23.6% Fibo level. To do this successfully, I must be sure that a retracement is actually in progress. How do I confirm this?
Look at the area where a blue arrow points to “drag Fibo tool here” on the left side of the chart. The bullish momentum of the EURUSD has actually been checkmated by the formation of a reversal candlestick pattern, a bearish harami. An expanded version of that point is shown below:

Occurring at the peak of a bullish momentum is a clear reversal signal. The retracement followed soon after, and went all the way to the 50% retracement point.
Trading binary options is not rocket science. It just takes a trader knowing what to do and when to do it. But it also requires that the trader must be quite knowledgeable about topics such as candlesticks, chart patterns, etc. A trader has to be thoroughly at home with the candlestick patterns. If there is any topic in the financial markets that deserves attention, this is it. With candlesticks, you can determine price direction easily, and then add other tools to increase the success rate of your trade calls.
This has been a lesson on how to use the Fibo retracement tool to trade in the binary options market. Next time, we will treat another interesting topic right here on BinaryOptions.net.
Breakout Trades
By BinaryOptions.net • 2 Comments
Binary Options Breakout Trades Using Pivot Points
Binary options trading success is based on making the right calls on price direction. If a trader can correctly predict where price will go, then it is very likely he will make a trade that will be in the money.
One of the ways this can be achieved is by being able to predict price breakouts. This leads us to ask the question: what really is price action, and what determines the behaviour of price action at any given point in time?
The concept of price action is simply a depiction of the activity of traders in a particular market. Traders are in the market to make money. If they see something that will present itself as a market opportunity, they will put their money in the market to make the trade. At this time, we will see prices moving in one direction or in the opposite direction. If traders see nothing to convince them of an opportunity, they will sit on the fence and do nothing. At this time, the price action will hardly go anywhere except just trend sideways.
Fortunately, the binary options market helps us to trade the price action, whatever that may be. Unlike in forex trading or other markets where you need the market to be in motion to make money, you can actually make money in the binary options market even if the prices of the underlying asset stay still.
In today’s lesson, we will explain a scenario that occurs when the market is in motion; the breakout. Breakouts occur after periods of price inactivity. They occur when traders get a hint of an impending market event that will affect the value of an underlying asset, so they take position in order to make money from such movements. One way of determining this is to look at the behaviour of the price action at the key levels of support and resistance.
Before we get an upward break, prices may have tested the resistance level multiple times, with the points of retracement getting progressively higher. This indicates buying pressure. When we see this, this is a signal that prices will breakout upwards.
The reverse is also the case for downward breakouts. Support levels will be tested repeatedly with points of retracement getting progressively lower, signifying selling pressure.
At other times, the buying or selling pressure may already be in such forceful effect, that the price action just rams through the key levels. Look at the chart below:

The pivot points show the support and resistance levels. We can see that R1 has been tested several times, and prices do not get back to where they started for the day at S1 before going back up. This indicates buying pressure which eventually breached R1. Price then tested R2 several times, but retracements never get back to the central pivot (marked purple) which was the previous retracement point. This shows increased buying pressure and we see this manifest as a bullish candle that eventually breached R2 all the way to R3.
If I was to trade this on the binary options market, I will do this in three ways.
Trade 1
I would trade the In/Out binary options trade, betting that the trade would end outside the S1 – R1 range, with a one week expiry.
Trade 2
I would also trade the Rise/Fall variety, betting that the price of the EUR/USD will rise above the R1 point, setting a 72-hour expiry.
Trade 3
I would trade the Touch/No Touch trade, betting that prices would touch a point somewhere between R1 and R2, for a one week expiry.
The lesson here is that pivot points are an indispensable tool for binary options trading and if you can use them to watch price action at key levels of support and resistance, you will make good trade calls most of the time.

ENTREPRENEURSHIP


Entrepreneurship comes from the French verb ‘entreprendre’ which means ‘To undertake,’ is the act and art of being an entrepreneur or one who undertakes innovations or introducing new things, finance and business acumen in an effort to transform innovations into economic goods. This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new businesses (referred as Startup Company); however, in recent years, the term has been extended to include social and political forms of entrepreneurial activity. When entrepreneurship is describing activities within a firm or large organization it is referred to as intra-preneurship and may include corporate venturing, when large entities spin-off organizations.
The term entrepreneur also is a loanword from French, and is commonly used to describe an individual who organizes and operates a business or businesses, taking on financial risk to do so. The term was first defined by the Irish-French economist Richard Cantillon as the person who pays a certain price for a product to resell it at an uncertain price, thereby making decisions about obtaining and using the resources while consequently admitting the risk of enterprise. The term first appeared in the French Dictionary “Dictionnaire Universel de Commerce” of Jacques des Bruslons published in 1723.
Over time, scholars have defined the term in different ways. Here are some prominent definitions.
• 1803: Jean-Baptiste Say: An entrepreneur is an economic agent who unites all means of production- land of one, the labour of another and the capital of yet another and thus produces a product. By selling the product in the market he pays rent of land, wages to labour, interest on capital and what remains is his profit. He shifts economic resources out of an area of lower and into an area of higher productivity and greater yield.
• 1934: Schumpeter: Entrepreneurs are innovators who use a process of shattering the status quo of the existing products and services, to set up new products, new services.
• 1961: David McClleland: An entrepreneur is a person with a high need for achievement [N-Ach]. He is energetic and a moderate risk taker.
• 1964: Peter Drucker: An entrepreneur searches for change, responds to it and exploits opportunities. Innovation is a specific tool of an entrepreneur hence an effective entrepreneur converts a source into a resource.
• 1971: Kilby: Emphasizes the role of an imitator entrepreneur who does not innovate but imitates technologies innovated by others. Are very important in developing economies.
• 1975: Albert Shapero: Entrepreneurs take initiative, accept risk of failure and have an internal locus of control.
• 1975: Howard Stevenson: Entrepreneurship is “the pursuit of opportunity without regard to resources currently controlled.”[1]
• 1983: G. Pinchot: Intrapreneur is an entrepreneur within an already established organization.[note 1]
• 1985: W.B. Gartner: Entrepreneur is a person who started a new business where there was none before.[2]

According to Paul Reynolds, entrepreneurship scholar and creator of the Global Entrepreneurship Monitor, “by the time they reach their retirement years, half of all working men in the United States probably have a period of self-employment of one or more years; one in four may have engaged in self-employment for six or more years. Participating in a new business creation is a common activity among U.S. workers over the course of their careers.” And in recent years has been documented by scholars such as David Audretsch to be a major driver of economic growth in both the United States and Western Europe. “As well, entrepreneurship may be defined as the pursuit of opportunity without regard to resources currently controlled (Stevenson,1983)”
Entrepreneurial activities are substantially different depending on the type of organization and creativity involved. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only part-time) to major undertakings creating many job opportunities. Many “high value” entrepreneurial ventures seek venture capital or angel funding (seed money) in order to raise capital to build the business. Angel investors generally seek annualized returns of 20-30% and more, as well as extensive involvement in the business. Many kinds of organizations now exist to support would-be entrepreneurs including specialized government agencies, business incubators, science parks, and some NGOs. In more recent times, the term entrepreneurship has been extended to include elements not related necessarily to business formation activity such as conceptualizations of entrepreneurship as a specific mindset (see also entrepreneurial mindset) resulting in entrepreneurial initiatives e.g. in the form of social entrepreneurship, political entrepreneurship, or knowledge entrepreneurship have emerged.
History
The entrepreneur is a factor in microeconomics, and the study of entrepreneurship reaches back to the work of Richard Cantillon and Adam Smith in the late 17th and early 18th centuries, but was largely ignored theoretically until the late 19th and early 20th centuries and empirically until a profound resurgence in business and economics in the last 40 years.
In the 20th century, the understanding of entrepreneurship owes much to the work of economist Joseph Schumpeter in the 1930s and other Austrian economists such as Carl Menger, Ludwig von Mises and Friedrich von Hayek. In Schumpeter, an entrepreneur is a person who is willing and able to convert a new idea or invention into a successful innovation. Entrepreneurship employs what Schumpeter called “the gale of creative destruction” to replace in whole or in part inferior innovations across markets and industries, simultaneously creating new products including new business models. In this way, creative destruction is largely responsible for the dynamism of industries and long-run economic growth. The supposition that entrepreneurship leads to economic growth is an interpretation of the residual in endogenous growth theory and as such is hotly debated in academic economics. An alternate description posited by Israel Kirzner suggests that the majority of innovations may be much more incremental improvements such as the replacement of paper with plastic in the construction of a drinking straw.
For Schumpeter, entrepreneurship resulted in new industries but also in new combinations of currently existing inputs. Schumpeter’s initial example of this was the combination of a steam engine and then current wagon making technologies to produce the horseless carriage. In this case the innovation, the car, was transformational but did not require the development of a new technology, merely the application of existing technologies in a novel manner. It did not immediately replace the horsedrawn carriage, but in time, incremental improvements which reduced the cost and improved the technology led to the complete practical replacement of beast drawn vehicles in modern transportation. Despite Schumpeter’s early 20th-century contributions, traditional microeconomic theory did not formally consider the entrepreneur in its theoretical frameworks (instead assuming that resources would find each other through a price system). In this treatment the entrepreneur was an implied but unspecified actor, but it is consistent with the concept of the entrepreneur being the agent of x-efficiency.
Different scholars have described entrepreneurs as, among other things, bearing risk. For Schumpeter, the entrepreneur did not bear risk: the capitalist did.
For Frank H. Knight[6] (1921) and Peter Drucker (1970) entrepreneurship is about taking risk. The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea, spending much time as well as capital on an uncertain venture. Knight classified three types of uncertainty.
• Risk, which is measurable statistically (such as the probability of drawing a red color ball from a jar containing 5 red balls and 5 white balls).
• Ambiguity, which is hard to measure statistically (such as the probability of drawing a red ball from a jar containing 5 red balls but with an unknown number of white balls).
• True Uncertainty or Knightian Uncertainty, which is impossible to estimate or predict statistically (such as the probability of drawing a red ball from a jar whose number of red balls is unknown as well as the number of other colored balls).
The acts of entrepreneurship are often associated with true uncertainty, particularly when it involves bringing something really novel to the world, whose market never exists. However, even if a market already exists, there is no guarantee that a market exists for a particular new player in the cola category.
The place of the disharmony-creating and idiosyncratic entrepreneur in traditional economic theory (which describes many efficiency-based ratios assuming uniform outputs) presents theoretic quandaries. William Baumol has added greatly to this area of economic theory and was recently honored for it at the 2006 annual meeting of the American Economic Association.[7]
The entrepreneur is widely regarded as an integral player in the business culture of American life, and particularly as an engine for job creation and economic growth. Robert Sobel published The Entrepreneurs: Explorations Within the American Business Tradition in 1974. Zoltan Acs and David Audretsch have produced an edited volume surveying Entrepreneurship as an academic field of research,[8] and more than a hundred scholars around the world track entrepreneurial activity, policy and social influences as part of the Global Entrepreneurship Monitor (GEM)[9] and its associated reports. nowadays, information on this site is not available
Characteristics of an entrepreneur
Entrepreneurs have many of the same character traits as leaders, similar to the early great man theories of leadership; however trait-based theories of entrepreneurship are increasingly being called into question. Entrepreneurs are often contrasted with managers and administrators who are said to be more methodical and less prone to risk-taking. Such person-centric models of entrepreneurship have shown to be of questionable validity, not least as many real-life entrepreneurs operate in teams rather than as single individuals. Still, a vast literature studying the entrepreneurial personality argues that certain traits seem to be associated with entrepreneurs:
• Bird – mercurial, that is, prone to insights, brainstorms, deceptions, ingeniousness and resourcefulness. they are cunning, opportunistic, creative, and unsentimental.
• Busenitz and Barney – prone to overconfidence and over generalizations.
• Cole – found there are four types of entrepreneur: the innovator, the calculating inventor, the over-optimistic promoter, and the organization builder. These types are not related to the personality but to the type of opportunity the entrepreneur faces.
• Collins and Moore – tough, pragmatic people driven by needs of independence and achievement. They seldom are willing to submit to authority.
• Cooper, Woo, & Dunkelberg – argue that entrepreneurs exhibit extreme optimism in their decision-making processes.
• John Howkins – focused specifically on creative entrepreneurship. He found that entrepreneurs in the creative industries needed a specific set of traits including the ability to prioritise ideas over data, to be nomadic and to learn endlessly.
• David McClelland – primarily motivated by an overwhelming need for achievement and strong urge to build.
Qualities
1. Disciplined
These individuals are focused on making their businesses work, and eliminate any hindrances or distractions to their goals. They have overarching strategies and outline the tactics to accomplish them. Successful entrepreneurs are disciplined enough to take steps every day toward the achievement of their objectives.
2. Confidence
The entrepreneur does not ask questions about whether they can succeed or whether they are worthy of success. They are confident with the knowledge that they will make their businesses succeed. They exude that confidence in everything they do.
3. Open Minded
Entrepreneurs realize that every event and situation is a business opportunity. Ideas are constantly being generated about workflows and efficiency, people skills and potential new businesses. They have the ability to look at everything around them and focus it toward their goals.
4. Self Starter
Entrepreneurs know that if something needs to be done, they should start it themselves. They set the parameters and make sure that projects follow that path. They are proactive, not waiting for someone to give them permission.
5. Competitive
Many companies are formed because an entrepreneur knows that they can do a job better than another. They need to win at the sports they play and need to win at the businesses that they create. An entrepreneur will highlight their own company’s track record of success.
6. Creativity
One facet of creativity is being able to make connections between seemingly unrelated events or situations. Entrepreneurs often come up with solutions which are the synthesis of other items. They will repurpose products to market them to new industries.[12]
7. Determination
Entrepreneurs are not thwarted by their defeats. They look at defeat as an opportunity for success. They are determined to make all of their endeavors succeed, so will try and try again until it does. Successful entrepreneurs do not believe that something cannot be done.
8. Strong people skills
The entrepreneur has strong communication skills to sell the product and motivate employees. Most successful entrepreneurs know how to motivate their employees so the business grows overall. They are very good at highlighting the benefits of any situation and coaching others to their success.
9. Strong work ethic
The successful entrepreneur will often be the first person to arrive at the office and the last one to leave. They will come in on their days off to make sure that an outcome meets their expectations. Their mind is constantly on their work, whether they are in or out of the workplace.
10. Passion
Passion is the most important trait of the successful entrepreneur. They genuinely love their work. They are willing to put in those extra hours to make the business succeed because there is a joy their business gives which goes beyond the money. The successful entrepreneur will always be reading and researching ways to make the business better.
Successful entrepreneurs want to see what the view is like at the top of the business mountain. Once they see it, they want to go further. They know how to talk to their employees, and their businesses soar as a result.
Concept
It has assumed super importance for accelerating economic growth both in developed and developing countries. It promotes capital formation and creates wealth in country. It is hope and dreams of millions of individuals around the world. It reduces unemployment and poverty and it is a pathway to prosper. Entrepreneurship is the process of exploring the opportunities in the market place and arranging resources required to exploit these opportunities for long term gain. It is the process of planning, organising, opportunities and assuming. Thus it is a risk of business enterprise. It may be distinguished as an ability to take risk independently to make utmost earnings in the market. It is a creative and innovative skill and adapting response to environment.
Promotion
Given entrepreneurship’s potential to support economic growth, it is the policy goal of many governments to develop a culture of entrepreneurial thinking. This can be done in a number of ways: by integrating entrepreneurship into education systems, legislating to encourage risk-taking, and national campaigns. An example of the latter is the United Kingdom’s Enterprise Week.
Outside of the political world, research has been conducted on the presence of entrepreneurial theories in doctoral economics programs. Dan Johansson, fellow at the Ratio Institute in Sweden, finds such content to be sparse. He fears this will dilute doctoral programs and fail to train young economists to analyze problems in a relevant way.
Many of these initiatives have been brought together under the umbrella of Global Entrepreneurship Week, a worldwide celebration and promotion of youth entrepreneurship, which started in 2008. Empirical evidence obtained from real-world data also suggests that in transition economy and in troubled times, entrepreneurship and creativity are factors that can save the corporate sector from plunging into a downward spiral of unemployment, downsizing and further chaos.

Financial Bootstrapping
Financial bootstrapping is a term used to cover different methods for avoiding using the financial resources of external investors. Bootstrapping can be defined as “a collection of methods used to minimize the amount of outside debt and equity financing needed from banks and investors”. The use of private credit card debt is the most known form of bootstrapping, but a wide variety of methods are available for entrepreneurs. While bootstrapping involves a risk for the founders, the absence of any other stakeholder gives the founders more freedom to develop the company. Many successful companies including Dell Computers and Facebook were founded this way.
There are different types of bootstrapping:
• Owner financing
• Sweat equity
• Minimization of the accounts receivable
• Joint utilization
• Delaying payment
• Minimizing inventory
• Subsidy finance
• Personal Debt
External financing
Many businesses need more capital than can be provided by the owners themselves, and in this case a range of options are available including:
• Angel Investors
• Venture capital investors.
• Crowd funding
• Hedge Funds
• Alternative Asset Management
Some of these source provide not only funds, but also financial oversight, accountability for carrying out tasks and meeting milestones, and in some cases business contacts and experience – in many cases in return for an equity stake.
Entrepreneurship Education
Most prominately entrepreneurship education and the teaching of the adedemic culture of entrepreneurship, remains with the catalyts of the Australian Graduate school of Entrepreneurship (AGSE) at Swinburne University of Technology, Melbourne, Australia which in March 1989 formed the first Master of Entrepreneurship and Innovation which teaches the corporate, technological and socio-environmental importance of entrepreneurship, also Swinburne has an undergraduate entrepreneurship program that teaches entrepreneurship from a grass-roots level.
Entrepreneurship Research
Most Entrepreneurial research hot spots occur within a large entrepreneurial community such as the Masters of entrepreneurship and innovation (MEI) alumui and entrepreneurship PHD students at Swinburne University and Babson college which focuses primarily on the characteristics of entrepreneurs and the changes within the business culture as the result of more entrepreneurial management and thinking.

SMALL BUSINESS


What constitutes a small business varies widely around the world. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships. What constitutes “small” in terms of government support and tax policy varies by country and by industry, ranging from fewer than 15 employees under the Australian Fair Work Act 2009, 50 employees according to the definition used by the European Union, and fewer than 500 employees to qualify for many U.S. Small Business Administration programs, although in 2006 there were over 18,000 “small businesses” with over 500 employees that accounted for half of all the employees employed by all “small business “. Small businesses can also be classified according to other methods such as sales, assets, or net profits.
Small businesses are common in many countries, depending on the economic system in operation. Typical examples include: convenience stores, other small shops (such as a bakery or delicatessen), hairdressers, tradesmen, lawyers, accountants, restaurants, guest houses, photographers, small-scale manufacturing, and online business, such as web design and programming, etc.
Characteristics of small businesses
Size definitions
The legal definition of “small business” varies by country and by industry. In the United States the Small Business Administration establishes small business size standards on an industry-by-industry basis, but generally specifies a small business as having fewer than 500 employees for manufacturing businesses and less than $7 million in annual receipts for most non manufacturing businesses.[2] The definition can vary by circumstance – for example, a small business having fewer than 25 full-time equivalent employees with average annual wages below $50,000 qualifies for a tax credit under the health care reform bill Patient Protection and Affordable Care Act.[3]
The European Union generally defines a small business as one that has fewer than 50 employees. However, in Australia, a small business is defined by the Fair Work Act 2009 as one with fewer than 15 employees. By comparison, a medium sized business or mid-sized business has under 500 employees in the US, and fewer than 200 in Australia.
In addition to number of employees, other methods used to classify small companies include annual sales (turnover), value of assets and net profit (balance sheet), alone or in a mixed definition. These criteria are followed by the European Union, for instance (headcount, turnover and balance sheet totals). Small businesses are usually not dominant in their field of operation.
The table below serves as a useful guide to business size nomenclature.

Business Size definitions
AUS US EU
Minute/Micro 1-2 1-6 <10
Small <15 <250 <50
Medium <200 <500 <250
Large <500 <1000 500 >1000 >1000
• Most cells reflect size not defined in relevant legislation • Some definitions are multi-parameter, e.g., by industry, revenue, market share
Demographics
According to a survey run in the United States among businesses having <500 employees in late 2010, about 50% of minute/micro-businesses are owned by women.
Franchise businesses
Franchising is a way for small business owners to benefit from the economies of scale of the big corporation (franchiser). McDonald's and Subway are examples of a franchise. The small business owner can leverage a strong brand name and purchasing power of the larger company while keeping their own investment affordable. However, some franchisees conclude that they suffer the "worst of both worlds" feeling they are too restricted by corporate mandates and lack true independence.
Retailers' cooperative
A retailers' cooperative is a type of cooperative which employs economies of scale on behalf of its retailer members. Retailers' cooperatives use their purchasing power to acquire discounts from manufacturers and often share marketing expenses. It is common for locally owned grocery stores, hardware stores and pharmacies to participate in retailers' cooperatives. Ace Hardware, True Value, and NAPA are examples of a retailers' cooperative.
Advantages of small business
A small business can be started at a very low cost and on a part-time basis. Small business is also well suited to internet marketing because it can easily serve specialized niches, something that would have been more difficult prior to the internet revolution which began in the late 1990s. Adapting to change is crucial in business and particularly small business; not being tied to any bureaucratic inertia, it is typically easier to respond to the marketplace quickly. Small business proprietors tend to be intimate with their customers and clients which results in greater accountability and maturity.
Independence is another advantage of owning a small business. One survey of small business owners showed that 38% of those who left their jobs at other companies said their main reason for leaving was that they wanted to be their own bosses. Freedom to operate independently is a reward for small business owners. In addition, many people desire to make their own decisions, take their own risks, and reap the rewards of their efforts. Small business owners have the satisfaction of making their own decisions within the constraints imposed by economic and other environmental factors. However, entrepreneurs have to work for very long hours and understand that ultimately their customers are their bosses.
Several organizations, in the United States, also provide help for the small business sector, such as the Internal Revenue Service's Small Business and Self-Employed One-Stop Resource.
Problems faced by small businesses
Small businesses often face a variety of problems related to their size. A frequent cause of bankruptcy is undercapitalization. This is often a result of poor planning rather than economic conditions – it is common rule of thumb that the entrepreneur should have access to a sum of money at least equal to the projected revenue for the first year of business in addition to his anticipated expenses. For example, if the prospective owner thinks that he will generate $100,000 in revenues in the first year with $150,000 in start-up expenses, then he should have not less than $250,000 available. Failure to provide this level of funding for the company could leave the owner liable for all of the company's debt should he end up in bankruptcy court, under the theory of undercapitalization.
In addition to ensuring that the business has enough capital, the small business owner must also be mindful of contribution margin (sales minus variable costs). To break even, the business must be able to reach a level of sales where the contribution margin equals fixed costs. When they first start out, many small business owners underprice their products to a point where even at their maximum capacity, it would be impossible to break even. Cost controls or price increases often resolve this problem.
In the United States, some of the largest concerns of small business owners are insurance costs (such as liability and health), rising energy costs, taxes and tax compliance. In the United Kingdom and Australia, small business owners tend to be more concerned with excessive governmental red tape.
Another problem for many small businesses is termed the 'Entrepreneurial Myth' or E-Myth. The mythic assumption is that an expert in a given technical field will also be expert at running that kind of business. Additional business management skills are needed to keep a business running smoothly.
Still another problem for many small businesses is the capacity of much larger businesses to influence or sometimes determine their chances for success.
Small business bankruptcy
When small business fails, the owner may file bankruptcy. In most cases this can be handled through a personal bankruptcy filing. Corporations can file bankruptcy, but if it is out of business and valuable corporate assets are likely to be repossessed by secured creditors there is little advantage to going to the expense of a corporate bankruptcy. Many states offer exemptions for small business assets so they can continue to operate during and after personal bankruptcy. However, corporate assets are normally not exempt, hence it may be more difficult to continue operating an incorporated business if the owner files bankruptcy.
Social Responsibility
Small businesses can encounter several problems related to Corporate social responsibility due to characteristics inherent in their construction. Owners of small businesses often participate heavily in the day-to-day operations of their companies. This results in a lack of time for the owner to coordinate socially responsible efforts. Additionally, a small business owner's expertise often falls outside the realm of socially responsible practices contributing to a lack of participation. Small businesses also face a form of peer pressure from larger forces in their respective industries making it difficult to oppose and work against industry expectations. Furthermore, small businesses undergo stress from shareholder expectations. Because small businesses have more personal relationships with their patrons and local shareholders they must also be prepared to withstand closer scrutiny if they want to share in the benefits of committing to socially responsible practices or not.
Job Quality
While small businesses employ over half the workforce and have been established as a main driving force behind job creation the quality of the jobs these businesses create has been called into question. Small businesses generally employ individuals from the Secondary labor market. As a result, in the U.S. wages are 49% higher for employees of large firms. Additionally, many small businesses struggle or are unable to provide employees with benefits they would be given at larger firms. Research from the U.S. Small Business Administration indicates that employees of large firms are 17% more likely to receive benefits including salary, paid leave, paid holidays, bonuses, insurance, and retirement plans. Both lower wages and fewer benefits combine to create a job turnover rate among U.S. small businesses that is 3 times higher than large firms. Employees of small businesses also must adapt to the higher failure rate of small firms. In the U.S. 69% last at least 2 years, but this percentage drops to 51% for firms reaching 5 years in operation. he U.S. Small Business Administration counts companies with as much as $35.5 million in sales and 1,500 employees, depending on the industry. Outside government, companies with less than $7 million in sales and fewer than 500 employees are widely considered small businesses.
Benefits of Supporting Local Business
By opening up new national level chain stores, the profits of locally owned businesses greatly decrease and many businesses end up failing and having to close. This creates an exponential effect. When one store closes, people lose their jobs, other businesses lose business from the failed business and so on. In many cases large firms displace just as many jobs as they create. Not only that but it also increases the costs of taxes. Instead of increasing a community’s revenue, big businesses actually shift money away from the community. Independent businesses depend on the many resources that a community can supply. They hire architects, contractors, hardware stores, interior designers, local advertisement agencies, accountants, business attorneys, and insurance companies. Local businesses also are more likely to supply locally produced products than chains, ultimately benefiting their community. Large corporations on the other hand eliminate the need for local goods and services.
A lack of diversity can decrease the revenues in a community. When towns are interesting, they attract people from out of town. More personality and individuality can lead to more tourists, which, in turn leads to money placed directly into the community [Santa Fe Independent Business Report] ). The diversity of businesses is also important to the individuality of consumers. Oftentimes, independent retailers can adjust the products that they sell in order to fit the needs of their consumers and the unique tastes of their community. Local businesses are also more likely to support unique, new, and/or controversial products. Local bookstores can provide controversial books and can support small authors or local authors. The same idea helps out with local art and music. Bookstores and music shops are more likely to support local art and music than the mainstream stuff that large corporations provide.[Mitchell] Business chains decrease a community’s individuality because they ultimately choose what products reach their customers. This greatly narrows what products are available and shrinks diversity.
Marketing the small business

Finding new customers is the major challenge for Small business owners. Small businesses typically find themselves strapped for time but in order to create a continual stream of new business, they must work on marketing their business every day.
Common marketing techniques for small business include networking, word of mouth, customer referrals, yellow pages directories, television, radio, outdoor (roadside billboards), print, email marketing, and internet. Electronic media like TV can be quite expensive and is normally intended to create awareness of a product or service. Another means by which small businesses can advertise is through the use of “deal of the day” websites such as Groupon and Living Social. These Internet deals encourage new visitors to small businesses.

Many small business owners find internet marketing more affordable. Google AdWords and Yahoo! Search Marketing are two popular options of getting small business products or services in front of motivated Web searchers. Successful online small business marketers are also adept at utilizing the most relevant keywords in their site content. Advertising on niche sites can also be effective, but with the long tail of the internet, it can be time intensive to advertise on enough sites to garner an effective reach.
Creating a business Web site has become increasingly affordable with many do-it-yourself programs now available for beginners. A Web site can provide significant marketing exposure for small businesses when marketed through the Internet and other channels. Some popular services are WordPress, Joomla and Squarespace.
Social media has proven to be very useful in gaining additional exposure for many small businesses. Many small business owners use Facebook and Twitter as a way to reach out to their loyal customers to give them news about specials of the day or special coupons and generate repeat business. The relational nature of social media, along with its immediacy and 24-hour presence lend intimacy to the relationship small businesses can have with their customers, while making it more efficient for them to communicate with greater numbers. Facebook ads are also a very cost-effective way for small businesses to reach a targeted audience with a very specific message.
In addition to the social networking sites, blogs have become a highly effective way for small businesses to position themselves as experts on issues that are important to their customers. This can be done with a proprietary blog and/or by using a backlink strategy wherein the marketer comments on other blogs and leaves a link to the small business' own Web site.
A solid public relations strategy that utilizes speaking engagements, press releases, feature stories, events and sponsorships can also be a very cost-effective way to build a loyal following for a small business.
Designing a Marketing Plan for Small Businesses
• Market Research – To produce a marketing plan for Small businesses, research needs to be done on similar businesses which should include desk and field research. This gives an insight in the target group’s behaviour and shopping patterns. Analysing the competitor’s marketing strategies makes it easier for Small business to gain market share.
• Marketing mix – Marketing mix is a crucial factor for any business to be successful. Especially for a Small business, competitor’s marketing mix can be very helpful. An appropriate market mix helps boost sales.
• Product Life Cycle – After launch of the business, crucial points of focus should be increasing growth phase and delaying maturity phase. Once the business reaches maturity stage, an extension strategy should be in place. Re-launching is also an option at this stage. Pricing strategy should be flexible and based on the different stages of the PLC.
• Promotion Techniques – Its preferable to keep promotion expenses as low as possible. ‘Word of mouth’, ‘Email marketing’, ‘Print-ads’ in local newspapers etc. can be effective.
• Channels of Distribution – Selecting an effective channel of distribution may reduce the promotional expenses as well as overall expenses for a Small business.
Contribution to the economy
In the US, small business (less than 500 employees) accounts for more than half the nonfarm, private GDP and around half the private sector employment. Regarding small business, the top job provider is those with fewer than 10 employees, and those with 10 or more but fewer than 20 employees comes in as the second, and those with 20 or more but fewer than 100 employees comes in as the third (interpolation of data from the following references). The most recent data shows firms with less than 20 employees account for slightly more than 18% of the employment. According to “The Family Business Review,” “There are approximately 17 million sole-proprietorships in the US. It can be argued that a sole-proprietorship (an unincorporated business owned by a single person) is a type of family business” and “there are 22 million small businesses (less than 500 employees) in the US and approximately 14,000 big businesses.” Also, it has been found that small businesses created the most new jobs in communities, “In 1979, David Birch published the first empirical evidence that small firms (fewer than 100 employees) created the most new jobs” and Edmiston claimed that “perhaps the greatest generator of interest in entrepreneurship and small business is the widely held belief that small businesses in the United States create most new jobs. The evidence suggests that small businesses indeed create a substantial majority of net new jobs in an average year.” Local businesses provide competition to each other and also challenge corporate giants.
Of the 5,369,068 employer firms in 1995, 78.8 percent had fewer than 10 employees, and 99.7 percent had fewer than 500 employees.
Sources of funding
Small businesses use several sources available for start-up capital:
• Self-financing by the owner through cash, equity loan on his or her home, and or other assets.
• Loans from friends or relatives
• Grants from private foundations
• Personal savings
• Private stock issue
• Forming partnerships
• Angel investors
• Banks
• SME finance, including Collateral based lending and Venture capital, given sufficiently sound business venture plans
Some small businesses are further financed through credit card debt—usually a poor choice, given that the interest rate on credit cards is often several times the rate that would be paid on a line of credit or bank loan. Recent research suggests that the use of credit scores in small business lending by community banks is surprisingly widespread. Moreover, the scores employed tend to be the consumer credit scores of the small business owners rather than the more encompassing small business credit scores that include data on the firms as well as on the owners. Many owners seek a bank loan in the name of their business, however banks will usually insist on a personal guarantee by the business owner. In the United States, the Small Business Administration (SBA) runs several loan programs that may help a small business secure loans. In these programs, the SBA guarantees a portion of the loan to the issuing bank and thus relieves the bank of some of the risk of extending the loan to a small business. The SBA also requires business owners to pledge personal assets and sign as a personal guarantee for the loan.
The 8(a) Business Development Program assists in the development of small businesses owned and operated by African Americans, Hispanics, and Asians.
Canadian small businesses can take advantage of federally funded programs and services. See Federal financing for small businesses in Canada (grants and loans).
On October 2010, Alejandro Cremades and Tanya Prive founded the first crowdfunding platform for small businesses in history as an alternative source of financing. The platform operates under the name of Rock The Post.
Business Networks and Advocacy Groups
Small businesses often join or come together to form organizations to advocate for their causes or to achieve economies of scale that larger businesses benefit from, such as the opportunity to buy cheaper health insurance in bulk. These organizations include local or regional groups such as Chambers of Commerce and Independent Business Alliances, as well as national or international industry-specific organizations. Such groups often serve a dual purpose, as business networks to provide marketing and connect members to potential sales leads and suppliers, and also as advocacy groups, bringing together many small businesses to provide a stronger voice in regional or national politics. In the case of Independent Business Alliances, promoting the value of locally-owned, independent business (not necessarily small) through public education campaigns is integral to their work.
Small Business Development Centers (SBDCs), operate in all 50 states, provide free and confidential counseling and low-cost training to small businesses.
The largest regional small business group in the United States is the Council of Smaller Enterprises, located in Greater Cleveland.