recently, I have been reviewing the book by Alexander Elder, Trading for a Living, reviewing his concept of the three Ms: Mind, Method and Money Management and I find it funny the way he treated the psychology the trader, traders comparing the losers with Alcoholics Anonymous. Elder recommended investors to operate in the stock market faced with losses in the same way that people in Alcoholics Anonymous is facing alcoholism. Even advised his “twelve-step method”, replacing the word alcohol with the word loss. Elder explains: The drinker can not resist the temptation because he continues to feel and think like an alcoholic. The trader does not know how to prevent losing their habit because it continues to lose feeling and thinking as a player. The alcoholic’s life goes downhill, out of control, when he denies being an alcoholic.
He denies that alcohol control your life and feeds the fantasy that is able to leave at any time (as smokers). Or think to change or reduce a drink bit is the solution to the problem. The trader losing his mind erodes gradually merging savings, being plucked while denying that it has lost its way in the markets. You can not accept the painful truth and the hidden himself and others. He speaks of his successes but never their failures. The drinker of Alcoholics Anonymous sobriety learns that begins in the mind of people. Traders learn to survive on the Stock Exchange that the problem was not with the methods or in the market, was in their minds.
One thing I recommend is searching the discussion forums. Make inquiries about it, see what people are talking to them, what their concerns or interests. (3) .- Your Project. Choose one that excites you: Do not get obsessed with sales. He thinks at first, at the beginning, you have to invest much effort in promoting and promoting. And if your project does not get you excited, soon abandoned.
It is so important to have knowledge and be enthusiastic. If you do not have great knowledge, you acquire. But enthusiasm is already acquiring more complicated Think about it, if your business project excites you, seduces you, you not only making money, you’ll be enjoying your work. Ideal, right? (4) .- Buy a domain and a hosting service and professional performances: This is a neglected area that many new Internet entrepreneurs If you take your business seriously, get the necessary tools. Your visitors will quickly. Stay away from domains and free accommodation. Just to get a bit serious and professional image considers these costs as an investment in your business.
(5) .- Position yourself in the search engines: Many companies make the mistake of believing that just create a great site, very nice, put there your products or services and expect that customers arrive as if by magic. Do not forget that you, at least at first, you’re a stranger on the Web. Your visitors will arrive by Google type search engine. So your position is so important. You can hire the services of a company, and you can do things yourself, to establish some kind of alliance with any company other than direct competition to yours but has some relationship to what you sell.
The paramount aim is to provide maximum returns to its participants to minimize their risks. This is achieved through diversification of the securities for the benefit of participants. Having an investment in a fund, the yield increases with the risk. Let’s see the features of mixed investment funds, which are the mixed fixed income fund and equity fund mixed. The Joint Fixed Income fund consists of funds from equity and fixed income investment with a variable that does not exceed 30%. The investment policy of this fund balance consists of investment in fixed income investments in the stock sometimes up to 30% of fund’s assets. The return of these funds is always linked to changes in the equity markets and fixed income. The profile of the client in this type of fund is for investors to cede some of the profitability by diversifying risk.
The Joint Equity Fund consists of funds from equity and fixed income investing over 30% and usually below 75%. The investment policy of the fund balance consists of investment in fixed income investment held in a range between 30 and 75% of fund’s assets. The return of these funds is tied equally to the development of equity markets and fixed income. The profile of the client in this type of fund is for investors who like the mixed fixed income fund, give a small part of the yield on risk diversification. After taking into account the two variables of its implementation, use and choice should be easier and more projection. This is why it is important to be well informed when trying to invest money in such funds.
When a crisis comes, usually the first reaction of Senior Management is to reduce costs, downsizing, shrinking product lines and taking conservative measures. Are these actions correct? The answer will depend on the ultimate goal pursued by the company faces a crisis as a defining crisis of the following: significant loss of market share, falling prices, falling sales volume, income from foreign or stronger competitors, consolidation a local competitor and / or loss of customers strong. What is the impact of measures taken quickly to the crisis? Include: permanent loss of market share, loss of credibility with customers and suppliers, loss of major human resource and loss experience of new business opportunities. But we do face a crisis? Many are surprised when someone tells us if the market is depressed and its business is in crisis: you should invest.
It’s an expression we can counter it by saying: Are you crazy? Want to invest today I am in difficulty to lose more? No, my dear reader. When a market is in crisis not only affects you, affects the other competitors, so the best strategy to develop the Crisis will survive and win the market. (The only exception is if you or the administration, and decided to go out of business). Mention some alternatives and recommended actions in a crisis: 1. Do not stop investing. Do not say you spend a lot, just that you should not invest. Do not stop upgrading machinery, updating systems, procurement of equipment for new products or projects.
All we know is not so easy to reach our first million dollars. But that does not mean we will not be able to attain wealth. All things are a matter of time and more if we are young posbilidad to withdraw the rich are much more possible. Now I will write some ideas to achieve financial freedom so desired. 1) No Spending on things that do not need to have the defect Many people spend their savings on products and services that do not need. Even small but repetitive costs can generate the same effect.
But it is important to gain a position in relation to introspect the expenses to get to attain wealth. This does not mean that one can not enjoy life, but rather to exercise restraint. 2) Plans on Retirement Funds Unfortunately retirement plans are things that do not think young people today. Now I will explain why they should be borne in mind: Have a retirement fund means that starting with a certain amount of money you can have a larger amount later in our life. If inviertieramos $ 3,000 from age 23 to 65 with an interest rate of 8% would have $ 985.749.
But if we wait 10 years more and contribute only $ 5,000 per year would have $ 724.749. Higher contributions will not be able to replace the lost time. This strategy is not so that one has a background in which to live when I grow old, but an opportunity to invest in many funds now listed on Wall Street and with great possibility of growth.
If I hurry, I would say that was dedicated to solve problems by generating new problems (even more serious than those who sought to solve). The case already known to all is the issue of withholding mobile alternative chosen by the need to increase revenue. You could say that the deductions mobile agricultural exports have been the straw that broke the camel and unleashed a conflict that has already acquired a historical dimension, not only for the duration, but also by the level of support given to the agricultural sector (clearly shown by the call for about 300,000 people at Sunday’s ceremony.) All this frightened not only to international investors, who were the first to undo their positions in the country, but also to local small investors. So, international investors have been fleeing the country, while local savers, with very fresh memories of the last crisis, sought refuge in the greenback in spite that the combination of a nearly fixed parity with the weight and inflation rate above 20% would be generating a negative return. And here comes the issue of international reserves of the BCRA and why my response to this friend of mine. Although many market commentators harshly criticized for its Central Bank reserves accumulation policy, its owner, Martin Redrado, justified this goal by “the need for anti-crisis fund, in the absence of an international lender” ..
. A phrase repeated until they talked to sleep. Logically, this argument was not valid for the market in a context where the main concern of the Argentine was the subject of inflation, while it was almost unthinkable a crisis this international magnitude. But since early 2007 with the turmoil in Chinese stocks, the market has been tested to Argentina. And the country has been without major difficulties to overcome each of the tests it has had to face.
The Central Bank is resisting the onslaught of the market. This has had to relinquish part of their reserves (over U.S. $ 1,500 million in recent weeks). I have no doubt that the monetary authority will be able to pass this test without problems. Firepower has (just under U.S. $ 49,000 million). But beyond that there is no threat in the short term, this situation should call for the reflection of the government. But for the level of reserves held by the BCRA, the situation today would be totally different. Perhaps, before a sharp rise in the dollar, the financial system had been an attack that would have brought to the brink of collapse. Do not forget that ordinary people still keep the fears of 2001. What is happening in the Argentine financial system and exchange market are red flags … Do be watching the government?
Most people begin to think about investing their hard-earned dollars when they have a few extra. Almost everyone understands the importance of saving: putting away a little bit each day/week/month until a sum has accumulated for some specific purchase or need which was anticipated, like a new bicycle which a child might save for, or a college education that parents will save for their child.
The problem with just storing away a little money periodically is that the modern world is a world of change and a certain amount of unpredictability. Very often inflation will eat away at the value of the money you have saved. For instance, when a child is born we can assume that a fund for college will be used in about 18 years. If a college education costs about five thousand dollars a year for four years, that’s 20 thousand dollars which will be needed. All the parents need to save is about $100 each month to meet this need. But what happens if that same $20,000 education costs more like $100,000 after 18 years have passed? This is exactly what has happened to children who were born 20 years ago today.
The solution to this dilemma would have been for the parents to have invested their money in a fund whose value increased each year, hopefully keeping up with the inflation that caused the college education to rise in price so dramatically. This is the value of investment, and why ordinary people should try to invest their savings whenever possible.