Do you think you have a lot of bills? If so, you are probably right. But have you considered bill that costs you most each month?

On average your housing costs probably run about 30% of your take home pay. Your other bills which include utilities, credit cards, etc. also run about 30% of your take home pay. It probably takes another 30% to run your household and if you are lucky you can stash remaining 10% in a savings account.

What are your percentages? Do you know? That's problem. Most people run their budget out of their wallet.

There is that hideous word "Budget". Many people compare operating their finances with a budget to having a ball and chain attached to their wallet. They won't be able to get anything they want for rest of their lives.

Let's see if following scenario fits you:

You get paid. You write out your bills. You give your spouse some money. You wait for next payday to get some more money so you can do same thing.

You may not realize it but if you are doing this you are spending a lot more money than you need to.

Most of people I work with have no idea how much money they make or how much they owe. While money may be important to them it is way to much trouble to learn how to manage it. This is very reason there were $1.5 million bankruptcies in this country last year.

I can almost guarantee that if you are trying to run your finances like scenario above at some point you are going to run into problems. It simply can't work.

The main reason for this is that you never get a broad picture of where you are financially. You pay bills and hope you have enough money to buy your groceries and put gas in car until next payday.

Most people can add and subtract. That's all there is to a budget. If you aren't willing to take time then living paycheck to paycheck will be with you rest of your life.

I call this "Financial Complacency" which simply means that you know you need to manage your money better but aren't willing to do what's necessary. Here are a few excuses I hear to justify this:

Beginner is hoping that good analysis and tons of stock knowledge will serve him a good service. He is stay tuned for searching for effective price movement methods for a long, long time. Day by day; he?s keeping spending time and money. Those of beginners who hold line gets it - there is no common sense Order at market. The market behaves itself quite like what you think it will; but all rest is Pure Chaos. Well, our beginner cannot make effective prognosis. And now he's maturing and he?s not trying to fight this analysis? limitations. He follows plan and he enters market only when it is time for follow plan.

MECHANICAL AND NON-MECHANICAL APPROACHES TO MARKET ANALYSIS

There are two types of approaches on trading strategy selection - either mechanical or subjective. If trader's got a mechanical one he doesn't need to make investment decisions - everything makes everything. MTS is always knows what to do and more important - when to do. The trader is only to follow market, system signals and to make orders to his brokers.

At other hand if trader doesn't have clear trading system he is to make subjective decisions. These decisions are impulsive and often made by impression. Often it is not based on analysis - but greed and fear. Human nature is not free from errors and pros are differ from beginners by strict emotional control.

Practice shows that absolute majority of successful traders is using mechanical approach to trading. Beginners and 'traders just for trade' are inclined to subjective analysis.

Well, what does it mean - 'mechanical trading system'? We're choosing market, configure system to it, choosing formulas based on historical data, entry points, exit points for profit and loss positions. System is running and there is no need to sit day by day before monitor hoping to cry: "All got it!" Practice shows that hour by hour 'monitor duty' is good only for starting stages of learning market and stage of choosing optimal strategy. Once started, system will work autonomously and trader may rest or do something else without worrying about anything.

RISK MANAGEMENT WHEN USING MTS