EMOTIONAL TRADINGWritten by Al Thomas
THE ALCHEMIST by AL THOMAS EMOTIONAL TRADING The single most expensive stock market trades are those made with emotions, but, of course, you are not an emotional trader are you? Before you bought that stock, mutual fund or Exchange Traded Fund (ETF) you did your research to be sure that what you were buying would return a good profit over long haul. You bought it and over time you look at it less and less. Ask yourself: when you plunked down your hard earned money did you have any idea where you would sell it or where you might exit trade should stock go down instead of up? And suppose it has gone up have you made any plans to protect those profits? There were many geniuses in 1999 who bought a tech stock at $20 and saw it run to $200 only to come back down to $2. Those who had an exit strategy probably sold out as it turned over and dropped like a rock. They kept most of their profits as well as their original investment. What kept those BuyNholders in? It was emotion. They fell in love with stock because they “knew” it was worth more and would “come back up”.Investing is not an “I hope, I hope” business, but it is a business. Never become emotionally attached to anything you buy. If you were in buggy whip business in 1900 and saw automobile putting horse out to pasture you easily knew it was time to sell out. That also applies to any investment you make in stock market. Once each month you should be checking to see if your various stocks are advancing as planned. Forget all those pretty research reports your
| | Tips on Getting Your Mortgage Loan ApprovedWritten by Chris Rocks
What is important to lenders?Not every applicant is approved for a home loan first time he or she applies. For a variety of reasons, even after a lot of hard work, sometimes a loan just can’t be approved. It may have to do with applicant’s credit or savings history, employment stability, debt structure, or value of home. The good news is that a denial is merely a detour, not a roadblock. Purchasing a home takes planning, discipline and hard work! Follow these tips and with our assistance, homeownership is not out of reach. Establish a consistent record of paying bills on time. Before making a loan size of a home loan, most lenders will want to review how you have handled your credit in past. This includes all credit accounts, including utilities, revolving debt (credit cards, etc.), and installment debt (car loans, student loans, etc.). It is critical for you to bring all overdue bills up to date immediately and begin paying them on time in a consistent manner. Establish a consistent record of steady employment. Lenders are more likely to look favorably on an applicant who has been in same (or similar) line of work for generally two or more years. If you have been working steadily for less than two or more years, expect lender to ask why. There are many acceptable reasons, including:
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