by American Consolidebt ~ August 10, 2008
Posted by Consolidebt.us
By: Joshua Geralds
It is necessary for the traders to follow the rules of money management. These rules would help him earn huge profits within a short period of time. So it is necessary for him to plan a money management technique that would help him to earn huge profits. This helps to lower down your risk. And helps you to preserve your capital for long term. The following questions would help you to know whether you are trading with correct money management technique.
Do you how much your at risk on each trade?
This depends on the period you are using this trading technique. You should take the risk of only 2% on your capital. This would help you to earn huge profits. And remember one important thing that is do not stake on one stock for long period of time. Until and unless you become the master of day trading then only you can stick to a particular stock. So day traders are the only masters who take the risk of investing in same sector.
Are you over exposed in a particular sector?
It is risky too to trade in same company at a time. You will be disinvesting your money at a particular stock. Just notice the movements of the stock in the market. So don’t invest in one sector only.
How much of your capital is exposed to the market at any given time?
Money management would give you knowledge of your recent trades. You might think that you have made a good trade but unknowing you might have made losses. This is possible for day traders. So don’t invest in one in one market only. This would increase your risk factor.
Good money management is one the important element of trading. It is slows process that would take time for you to learn and implement. Good money management would help you earn huge profits. It is not necessary that you earn huge profits on every trade that you make. Slow and steady process of earning profits would help you to earn a profit that is beyond your expectations. So remember one thing that slow and steady wins the race.
by American Consolidebt ~ May 27, 2008
Posted By: Consolidebt.Us
Author: Shawn Lim
Ok, this is about your financial management. Many people wants to be a Millionaire, but end up with nothing. Here are 5 financial management tips that can help you boost your income. I get this idea from Adam Khoo (one of Singapore youngest self-made Millionaire). Frankly, Adam is one of my favorite gurus, I’ve got almost all of his books. Before I tell you the 5 tips, you need to know some rough idea about money management first.
There are people who earn $1,000 every month, and claim that it is not enough (this is true though). However, there are also people who are earning $10,000 each month, and still claim that it is not enough. Why is this so? This is due to poor money management. Therefore you must know these 5 tips before you can increase your savings and reduce your expenses. You must spend time and effort into your money management, only then you can be rich. If you don’t know how to manage your money, then they will slip through your hand easily.
Don’t expect that this will happen automatically. Every rich people knows that it is their wealth their money, they need to manage them at least one hour a day. But for average people (who are not yet rich), they spend less than 1 hour each month managing their money. And that 1 hour usually is spend paying bills. That is why the rich is getting richer while the poor is getting poorer. But here are some tips that can help you manage your money.
1. Always Ask For Discount
You know, most of the stores that you bought your goods from, usually they are not fixed price. If you open your mouth and ask for discount, there are 70% of chances that you will succeed. Know this fact, if you have 10% of discount, you know what this means? This means that you have got an immediate 10% returns on your money. Over a long term, you will save more money than you can expected. (Psst, use the money you save and invest in money making strategies or anything that will make you richer.)
2. Always Ask For Receipt
Why you need a receipt? One reason, so that you can track every single expenses in the end of month. Depends on what goods you bought, if possible, claim it as business expenses and get a tax deduction.
3. At The End Of Month, Record All Your Expenses
You must record all your expenses in your personal financial management sheet. Be it in your note book or you can record it in your computer, with Excel. By doing so, only then you can track where your money has gone to.
4. Use Credit Card Whenever Possible
This is of course you must clear all the payment before the due date. At the end of month, you will receive statement which will make easy for you to record your expenses. In addition, many credit cards offer prizes if you use them more.
5. Update Your Income Statement In The End Of Month
Try to do a personal income statement that record all your incomes and expenses. Update it each month. You must use a system to track where every single dollar goes. Only when you know where your money is going, can you take steps to channel it to your savings and investments.
You must develop this money managing habits to get you richer. Although doing this everyday may sound tedious. But it is very important to know where your money has spent and how much you have saved. Many businesses failed because they don’t know how to manage their financial and money properly. So don’t be one of them! To your success.
by American Consolidebt ~ May 10, 2008
Author: Michael Russell
Everyone that has ever worried about the state of their finances has worried about proper money management. Moreover, those individuals that like to keep a watchful eye on their finances also focus on good money management skills. Thus, good money management is a clear issue for anyone that wants to get and keep a firm handle on their personal finances. Thanks to technology, money management is an issue that can be easily handled with a personal home computer and a little bit of free time.
There are a number of money management software applications that computer users can purchase to make their budgeting and tracking a far simpler task than ever before. In fact, with software applications, computer users can manage their personal finances, their checking accounts, their bills, and can even manage their personal taxes with their home computer. Moreover, for those small business owners looking to maintain control over their business finances, software applications are readily available to help them stay on top of the money game.
With certain software applications, individuals can create and devise personal budget plans. They can decide what bills need to be paid and when and track all incoming and outgoing funds. A close analysis of all spending will be easily readable in a series of detailed charts. Thus, people can determine where their highest amount of spending is going and then adjust their budget to better suit their needs. Moreover, such software applications can help those individuals that are experiencing difficulty with their finances as they set up a plan to get their finances back under control.
Money managers can create their own calendars and set up automatic bill payment options with various software applications that are available on the market today. They can easily keep track of savings and with a number of predictive calendars, they can forecast their future financial position if they remain on course with their designed budget. What’s more, those who successfully manage to save money can later put their money into other investments and monitor those too.
Personal finances are certainly not the only thing that can be monitored with the use of software and a personal computer. Small business finances can also be tracked and a you can easily create invoices and record all spending transactions associated with a home-based business. Thus, clearly, the latest software applications can make keeping track of any and all financial matters a far simpler process than one might first imagine.
Finally, one of the greatest benefits from software applications that help track money issues are those derived at tax payment time. During tax preparation, the computer user can truly enjoy the benefit of the fine organizational offerings of software applications. Many of the programs will have all the information in one location and reports can be created that make tax reporting a far easier task. In the end, the cost of such applications is utterly nominal when one considers all of the benefits derived from their use.
by American Consolidebt ~ May 10, 2008
Author: Kim Parsley
Business owners, especially small business owners, need a cash flow management process in place for their business. It is critical to know how much money comes in and how much money goes out so you can increase your success and avoid failure. You can set up a simple & easy cash flow management process by utilizing an Easy Money Management System.
Your Money Management System can be done electronically on excel or Lotus 1-2-3 software or through using a manual ledger/spreadsheet. No matter which method you use, your money management system must first include:
Key 1, which is having an organized filing system.
This filing system is where all your physical documents and statements of your income, expenses and any business related documentation should reside. Your filing system is of major importance because every transaction expense you have for a business must be documented. You have to have some form of documentation (back up) for that expenditure, as this is a requirement for tax preparation.
Your documentation enables you to prove to the IRS that you truly bought or purchased the expenditure in question, thus providing proof if you should be audited by the IRS (if here in the USA) or your government taxing authority. Your business must provide these physical documents, so include them in your filing system from day one.
What are the other key components needed in your Cash Flow Management process? There are three more key components you should include. Let’s look at each component in detail.
Cash Flow Management Component 1: You need a monthly expense report. This report would include your daily payment (purchases) activities. If you purchase something for your business then you would document the purchase in your expense report. You would document what the expense is (if it’s office supplies, phone expense, marketing expense etc.), where you bought it and how much it cost. This information should be recorded in your Expense Report for that Month.
Cash Flow Management Component 2: You need to have a monthly Income Report, which will show your daily sales activity information. You will need to keep track of how much you sold each day. Record this information in your monthly income spreadsheet. Make sure that for each sale you record the date and how much income your earned for each income transaction. Many Internet marketing people use information from their PayPal and Clickbank accounts to accurately keep track of their daily and monthly income.
Cash Flow Management Component 3: You need to have a Cash Flow Management Report. This report reflects the activity you have in your business checking account(s) on a daily basis and can be easily created using an excel spreadsheet. Very much like your bank transaction register for your checkbook, but when developed for showing all your accounts (checking, money market, savings, line of credits etc.) you will get an overview of total cash available for you at any given time.
Using an excel spreadsheet is easy and an excellent format to keep track of the cash flow for your business. Follow these tips to set up an efficient and effective cash flow management system.
To Your Success In All That You Do and Dream Of…
by American Consolidebt ~ May 10, 2008
Author: Wilson Neo
In this article I will show you how to develop a good money management discipline in Forex trading without risking more than 5% per trade.
Let’s say you intend to use 5,000 dollars as your starting capital to trade the Forex market. (Before I proceed further, what do you think with that amount of money, should you open a mini or a standard account?) Although per pip for a standard lot cost 10 dollars if you were to trade GBPUSD currency pair, but that doesn’t mean that you can open a standard account with 5,000 dollars. So my recommendation is to open a mini account with per pip cost at 1 dollar.
Before deciding how much you want to risk per trade, you should start with how much you are willing to lose per month, so to withstand any possible drawdown. Since we are starting with only 5,000 dollars as capital, I would suggest a maximum cap as high as 10% risk per month, which is 500 dollars. So now we know that we can only trade with 500 dollars a month* even though we have 5,000 as capital. The next step is to determine your risk per trade.
Once we know that we can only risk 500 dollars in a month, and then you can decide how much you prefer to risk per trade. To simplify calculation, let’s say we decide to set the risk per trade at 5% of 500 dollars, so that means in a mini account, 25 dollars is equivalent to 25 pips. Once you have decided that this would be your money management, the next is to look out for trade setup not risking more than 25 pips, and only if both conditions agree, then you enter the trade.
In all, a trader should possess three important elements in order to trade profitably. That is you need to adopt a disciplined mindset, developed a proper money management and together with a good trading system, you should be able to trade with confidence and see your trading account grow.
*This money management means that in order to wipe out the trading account, you have to lose ten consecutive months of trading to burn that entire 5,000 dollars. Is that possible? Yes, if you don’t have a profitable trading system. If you have a profitable trading system (you may want to consider using my trading system), it is very unlikely that you have such a disastrous run.