Success Trading: Some Basic Terminology for New Traders

Written by Chuck Cox


The world of trading can get very complex becauserepparttar financial markets are complex. There thousands and thousands of successful traders out there today. The amazing thing is that they all have carved their own niches and approachrepparttar 148598 markets in a unique way. This should be wonderful news for beginning traders because it demonstrates that there are thousands and thousands of different ways to proper inrepparttar 148599 markets. It’s just a matter of discipline and findingrepparttar 148600 approach that suits your style and personality. With all that being said, new traders must begin somewhere, so let examine some basic terms and approaches torepparttar 148601 markets.

Going Long – This means that you’re betting onrepparttar 148602 instrument (stock, future, option, etc) to go up and that you want to buy. You purchaserepparttar 148603 financial instrument, watch it rise and then sell it for a profit. Profit are realized when you buy low and sell high. It’s also known as taking a long position.

Going Short – This means that you’re betting onrepparttar 148604 instrument to go down and that you want to sell

Building Wealth: It's An Inside Job – Part 2

Written by Chuck Cox


Let’s quickly reviewrepparttar principles discussed inrepparttar 148597 first part of building wealth. We established that prosperity consciousness must first be developed mentally to acquire any real wealth. A person that constantly worries about money most likely is living in scarcity consciousness regardless ofrepparttar 148598 size of his or her bank account. We talked about some methods and daily exercises that can be employed to start developing a stronger level of prosperity consciousness. The first exercise uses written affirmations,repparttar 148599 second utilizes visualization, and finally we need to become more aware of how willing we are to give and receive prosperity on a daily basis. If we start using these methods, we’ll begin to see gradual changes in our lives that will become larger over time.

As a follow-up to improvingrepparttar 148600 way we think about wealth and prosperity, there are some effective money management techniques that will further support our prosperity consciousness. Certainly if we userepparttar 148601 exercises discussed earlier in Part 1, we’ll start to view money differently, but those principles should be fortified by our actions as well. What we want to accomplish with our money is to generate a steady cash flow into our lives that will elevate our feelings of prosperity over time. The first step toward achieving this end is to simply pay ourselves first. Every time we get paid, we should save a portion of what we’ve earned. It’s recommended that at least 10% of our pay be set aside for savings.

So if you already have a savings account,repparttar 148602 big question is what isrepparttar 148603 purpose of this account? Is it for emergencies or a major purchase? Do you have more than one savings account? If we want to establish a consistent flow of prosperity, we must gradually build prosperity in our bank accounts while atrepparttar 148604 same time protecting ourselves against life’s financial emergencies and obligations. It’s very demoralizing to save a significant amount of money only to have to spend it on a costly emergency –repparttar 148605 worst part is that often times, an event like this will knock us right offrepparttar 148606 prosperity track entirely. So we should strive to not only protect ourselves financially from these types of events, but more importantly, we must protect ourselves emotionally from these types of events.

The most effective way to handle our savings is to have more than one savings account with each having a different purpose. Although each of us will have different financial goals, it is recommended that everyone have a minimum of three different savings accounts withrepparttar 148607 following purposes:

1) Emergency Funds – This fund is set aside for those incidents that pop-up unexpectedly. Managing these events is critical to building wealth because they throw us off our budgets and demoralize us mentally. Unfortunately, emergencies are when many of us resort to credit cards, which makes this account even more critical. We MUST manage this aspect of our financial lives, otherwise life’s little emergencies will continue to rob our wealth if we let them.

2) Purchases – This fund is used to save for major purchases such as a piece of furniture or a new car. In addition, we can also use these funds for buying Christmas or birthday gifts. These types of purchases are also occasions where many of us are inclined to use credit. It’s not uncommon for Americans to be loaded with debt right afterrepparttar 148608 Christmas holiday season. Just likerepparttar 148609 Emergency Fund account,repparttar 148610 Purchases account is designed to keep us away from using credit.

Cont'd on page 2 ==>
 
ImproveHomeLife.com © 2005
Terms of Use