Investing and Learning How to LoseWritten by Ioannis - Evangelos (Akis) C. Haramis
One of leading traders on Chicago Mercantile Exchange, because of a single trade lost everything!For all of his years of experience and money, he had failed to master most important concept in trading: Risk Management! Each trader seems to have his own unique way of identifying market opportunities. One buys a stock in hopes of never having to sell it, while another might hold a position in market for a day or even just a few hours. Yet both individuals might be immensely successful in markets. How can that be? It's because every trader who has been consistently successful in markets has mastered concepts of risk management. Warren Buffet's two rules of investing are: 1. Never lose money and 2. Never forget rule number 1! Paul Tudor Jones says that he is always thinking about losing money as opposed to making money. He does not focus on making money; he is focusing on protecting what he has! Jim Rogers, who for years was a partner with legendary hedge fund investor George Soros, said "My basic advice is don't lose money!" Bernard Baruch, renowned investor from first half of 20th century advised "Learn how to take losses quickly and cleanly."
| | Purchase Your First Home with ConfidenceWritten by Neda Dabestani-Ryba
Purchase Your First Home with Confidence By Neda Dabestani-Ryba Prudential Carruthers REALTORSIf you are making transition from renter to homeowner, you're not alone. In 2004, 40 percent of homebuyers were purchasing for first time, according to "The 2004 National Association of REALTORS® Profile of Home Buyers and Sellers." With interest rates at all-time lows and a booming real estate market, now's a good time to purchase real estate. However with prospect of making one of largest investments you'll ever make in your life, you can easily become overwhelmed. Some of questions you may be asking are: Will I be able to afford home of my dreams? Do I have enough money for a down payment? Will I make smart home buying decisions? If you go into process prepared, your first purchase can be a good experience. Resources--Before starting out, educate yourself on process. Check your library or local newspaper to find a homebuyer seminar that you can attend. The U.S. Department of Housing and Urban Development has an entire section on its website (www.hud.gov) devoted to homebuyers. It has a list of common questions of first-time homebuyers, information on mortgage and home-buying programs, access to housing counselors, downloadable tools such as a wish list and home-shopping checklist, tips on selecting a real estate professional, etc. Other informative sites to check out are www.ginniemae.gov, www.realtor.com and prudential.com. Your real estate professional is also a great resource. Don't hesitate to let him or her know that you are new to process. They will expect you to have questions at each step-from house hunting, to making an offer to closing. The costs involved in purchase of a home can be overwhelming to first-time homebuyers. There are mortgage costs, down payment, and closing costs to think about. Affordability--By looking at your income and debt ratio, your sales professional can help you calculate how much you can afford each month in mortgage payments. But before determining your price range, you should also take into consideration other factors that will affect your monthly budget once you are a homeowner, such as property taxes, insurance, utilities, and maintenance. And if your down payment is less than 20 percent of cost of home, you will be responsible for private mortgage insurance, more commonly referred to as PMI.
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