Money Management, Part 1
February 28, 2010
There are some common mistakes I’ve seen traders make in the area of money management. First, let’s understand what money management is all about.
Money management overlaps with risk, trade, business, and personal management, yet it has many aspects that make it unique, distinctly different from all of the other areas of management. In this chapter we want to examine some areas of money management that seem to involve mental quirks leading to costly mistakes.
LISTENING TO OPINION
Using Divergences to Keep Out of Bad Trades
February 28, 2010
The American Football season just came to an end with my team getting close to the championship but falling short again. I am a big fan of the Indianapolis Colts and we keep having a groundhog day season year after year but it is still fun to watch. We have one of the better quarterbacks in the league named Peyton Manning who is renowned for his hard work ethic as well as his mental and physical ability on the field.
One of the things he is known for is beginning each play with up to three possible plays to run and trying to switch into the best one at the line of scrimmage based on the formation that the defense of the other team is in prior to the ball being snapped. He will check out the other team and then let his team know what the play will be using different code words and hand signals. This is called an audible for you International readers.
Speculators and Speculation
February 27, 2010
Speculators and Speculation
by: Steve Gillman
Speculators get a bad rap. Speculation in stocks, currecies and commodities futures is a necessary part of our economy. Many people have the idea that there is no added value in people “gambling” on commodities prices, for example. The truth is, most people just don’t understand of the role of speculators and speculation.
The Truth About ‘Speculation’
Speculative trading is crucial to a modern economy. Let’s use corn for an example. A farmer can plant his corn, and then see the price drop so low by harvest time that he loses his investment, and possibly goes bankrupt. How can he prevent this?
By selling some of his future production now, at a set price, he can plan ahead safely. The contracts he creates and sells will go up and down with the price of corn, but the risk is all in the hands of the speculators who buy them. They profit by re-selling them if the price goes up, and they lose money if it goes down. Our farmer, though, has his price, and can plan his business now.
Obtaining a Business Loan When Your Credit Rating is Poor
February 26, 2010
Obtaining a Business Loan When Your Credit Rating is Poor
by: Rebecca Game
Poor credit, unfortunately, is a common problem for many women. Poor credit can happen for a variety of reasons. It can be due to a divorce, when bills weren’t paid on time or at all. It can be due to a medical disaster, where bills have piled up so high that paying them has become impossible, and credit scores have dropped accordingly. It can be due to a job loss or lack of income and the inability to pay bills. Whatever the reason, it may also mean that you’ll have difficulty obtaining a business loan. However, it doesn’t mean that obtaining a loan for your business is impossible or completely out of reach. A bad credit loan may be the key to pulling yourself out of financial problems and getting back on track in order to focus on your business needs.
There are many programs and lenders that specialize in bad credit loans. Because someone with poor credit is viewed as a high risk to lenders, business loans for these individuals are virtually impossible to obtain. However, by becoming creative and resourceful, obtaining a bad credit loan for business purposes is definitely possible.
What Is Invoice Factoring And Invoice Discounting?
February 25, 2010
What Is Invoice Factoring And Invoice Discounting?
by: Henry Byers
The Romans were the first civilization to sell promissory notes at a discount, beginning the industry of factoring. America was built largely on the possibilities of factoring, when colonial businesses were factored by Europeans willing to invest cash in exchange for the promise of large returns, and government bonds also use the same principles applied by businesses when they engage in invoice factoring.
Invoice factoring is, at its simplest, the sale of the right to collect cash owed on your outstanding invoices. Most businesses engage in invoice factoring when they need cash up front quickly, or when they have customers that are slow to pay and don’t have the resources to build an accounts collections department. Though some companies are large and established enough to get accounts receivable financing through a regular bank, it can be handy to have access to invoice factoring companies as well.
Most businesses use invoice factoring to get fast cash. In the intense and fast paced business environment of today, ready cash can be invaluable. With the sale of your invoice futures, you can get the cash today you need to capture customers that will move your business forward.
Does Japan Matter?
February 24, 2010
For the last 12 years we have seen the Japanese stock market slowly sinking from a high of 38,000 to about 8,000, more than a 75% loss and very close to the price of the Dow Jones Industrial Average. Why should we care about their stock market?
Please understand that the stock market price is a reflection of the overall economy of a country. Every major country has a stock market index related to their economic health. Today almost every one of them has been in negative numbers for the past 3 years. If you believe the numbers we are in a worldwide recession and the trend is still down. That means we can see further slowing of the world economic health. So what? Well, it could be the difference in your having a job or not having one.
Japan used to think that an unemployment number of 2% was terrible. It is now running about 5%. So, fewer people are working. Why should you care? Japan is our second largest customer for U.S. produced goods. If less people are working than there are less yen to buy American goods. Japanese businesses won’t have as much money to buy new equipment much of which is purchased here. What happens there could be a reflection of what could happen here.
IRS Levy And Garnishments
February 23, 2010
IRS Levy And Garnishments
by: Henry Byers
Unfortunately to many of us the Internal Revenue Service (IRS) is one branch of government that can never be our friend and is often feared by some less reputable business owners. When the IRS is owed money, they will get it whether you like it or not. For those individuals who owe back taxes, the state or IRS may attempt to collect those owed taxes by wage garnishment through your employer. Once the wage garnishment is filed, the employer is obligated to deduct a certain percentage of each pay check to be handed over directly to the state or IRS until the taxes are fully paid or an agreement has been negotiated to release an individual from the wage garnishment.
The amount of garnished wages that are deducted by the state or by an IRS wage garnishment is based on martial status and the number of dependents. The amount of an individuals income that is exempt from the state or IRS wage garnishments can be figured by adding the standard deduction claimed on taxes and the amount claimed for exemptions and divide that by 52. For example, a family of three will only be allowed to keep about $325 per week.
Your Path to Success with Liberty League International
February 23, 2010
Your Path to Success with Liberty League International
by: Brent Payne
Many people who taken the initial step and become associated with Liberty League find that this is the first step leading towards a more fulfilling life. What are the other commitments you can make to speed yourself along the path to success?
Firstly read as much information as you can about Liberty League’s range of proven products. Explore the products section of their website and become knowledgeable about their life-changing programs and conferences.
Secondly see what Liberty League and its products have done for others who have taken the same path that you are now following. Look at the results people have achieved, their success stories and awards that have been presented. This will help you visualize what you can achieve.
Thirdly gain experience of Liberty League in a real life situation by contacting the person who introduced you, so that you can arrange to participate in an interactive business overview call. This will help you to understand the process and feel the excitement of becoming a member of the Liberty League community.
What To Do If Your Business Loan is NOT Approved
February 22, 2010
What To Do If Your Business Loan is NOT Approved
by: Rebecca Game
What To Do If Your Business Loan is Not Approved
Words that all business owners dislike hearing from a lender are, “Sorry, we just can’t approve your loan.” It’s frustrating when your business loan is not approved, and it may feel like your business ideas are now a hopeless venture. Rather than letting those feelings of despair overcome you because your business loan was not approved, though, step back and examine things carefully.
- Don’t take it personally.
While some lenders can approve or decline a loan based on the business owner’s character, there are other factors involved when your business loan is not approved, such as credit scores, income, debt ratio, and the risk of the business. When a business loan is not approved, it is most commonly due to one of these four reasons.
- Be gracious.
If your business loan is not approved, be sure to thank the lender for reviewing your loan application and proposal. Don’t leave on bad terms. You never know what the future holds, and it could mean that you’ll cross paths again, especially if your loan approval was considered “borderline.” Just because the lender said “no” today, it doesn’t mean that your business loan won’t be approved in few years, or even a few months.
Instilling Urgency In The People You Lead
February 21, 2010
Instilling Urgency In The People You Lead
by: Brent Filson
Summary: The author draws a lesson from a classic radio skit to show leaders how they might raise their activities to new levels of awareness and commitment.
A classic radio skit by comedian Jack Benny involved Benny being held up on the street by a man with a gun. “Your money or your life,” the gunman said to Benny, who portrayed himself in character as an inveterate tightwad. There was a long pause. The gunman repeated, “Your money or your life.”
“I’m thinking!” said Benny. “I’m thinking!”
Whenever I remember that skit, I think of leadership. The portrayal of Benny’s stage character, a skinflint equally concerned for his money as for his life, gives a kind of sideways, albeit humorous, glimpse into the nature of human commitment. For some people, there are things as important or more important than one’s life.
I submit that leadership involves such commitment — maybe not as extreme as offering up one’s life (though history clearly shows many leaders have) but none-the-less that calls for our total devotion.
