Don’t be too over Confidence- Don’t Over Cook The Goose

 Here is two very interesting stats, did you know that 90% of people believe they are great drivers? Did you know that 90% of all traders go Broke?

Let’s analyze this for a moment.  So if 90% of drivers are great drivers, where are all the bad drivers?   Now I am not sure about your driving experiences, but when I am on the road, it feels like 90% are Terrible drivers.( I am certain in the 10% of good drivers, the car accidents where the other drivers fault)

90% of Traders blow themselves up? Why they get over confident too quick, they get a couple of winning trades and all of sudden they are Lewis Hamilton of the trading world. It takes time, patience and lots of practice.

 So, how can so many think they are Lewis Hamilton?

 The answer is that almost everyone that gets behind the wheel, as car drivers and traders they can suffer from overconfidence. And, in the stock market, just like when you are driving overconfidence can be very dangerous, and in some cases fatal.

One Winning Trade- Don’t Need That Plan- Don’t Need That Advice

As soon as traders lose on of the most vital tools and get a dose of overconfidence is that you might consider that you no longer need to follow your trading plan.

This can often happen when you start having a run of successful trades – you suddenly feel like Superman!

One of the first signs of this syndrome is the TIME to up the Size- Bigger positions, thinking I can make all of this money.  Major Mistake.

 After a run of successful trades, you might feel the burning desire to increase the trade size, bigger trades, Big wins. However, position sizing and capital management, risk management is only useful if it is consistently used. One breakdown is enough to severely affect your long-term performance. Almost like overheating the car once, it tends to have long term affects on the future performance of the vehicle.

And overconfidence is possibly the most common reason for investors’ discipline to breakdown, and they will then start to chase the money back. This is the turning point from trader to Gambler.

This is why if you have a good BROKER they can also help you monitor the position size, talk them about your trading plan so they can help you implement this successfully. If you are looking for a great broker, then the CFD FX REPORT has recently researched all the Forex Brokers and CFD Providers so if you are looking for one, look on their website or email support@cfdfxreport.com

THE STOCK MARKET THROUGH YOUR OVER CONFIDENT EYES?

 When you become overconfident it simply changes the way you look at the stock market, almost like when you drink and drive, you think your fine but things really aren’t the same.

The more stable trader will look at a potential trade and focus on the possible downside.  “How much could I lose?” Now before each trade they will think: “How much will I lose if this trade goes wrong?” “Can I afford to lose this money?”

Overconfidence is the Knowledge to Know Everything. Once it hits, your mindset changes

They no longer look at trades as something that produces risk. They will view trades through this way, how much money I am going to make. Before each trade they will think: “How much can I make on this one?” Yeah should be able to make X amount from this trade.

Smart traders will always view any trade through one way: “How much can I lose, what is the potential downside, what is the risk vs reward?”

Any other way of looking at the market signals overconfidence, and is likely to cost you a lot of money, and potentially blow you up as trader.

Always make sure you have your rules and plan close by, make sure before each trade that you check your rules and plans.

Happy Trading!

singapore trader
http://www.articlesbase.com/wealth-building-articles/overconfidence-in-wealth-building-is-like-driving-drunk-dangerous-692972.html

The Real Solution to the Credit Crisis:

Strategies to increase the savings rate and prevent state budget deficits

There has been much debate about how the credit crisis started and which bailout package would seem to be the most effective way to devise a solution. Should we set aside funds for the homeowners facing foreclosure? What about the banks that are teetering on the brink of collapse? Many of us would agree that we need both approaches to be put into affect in order to quell the current financial engineering disaster. However, there are more sound strategies that would be able to fit the task. First, the minimum wage needs to be increased so that households can have more disposable income and therefore be able to purchase assets and increase spending. Second, there must be a wider array of down payment savings programs for low income households that will enable them to purchase a home within their means. Third, state governments must be aware that the solution to their current fiscal dilemma is to increase their tax base by the means of down payment assistance programs.

Trickle Up Economics

Many supplied side economists suggest that cutting taxes will spur productivity and growth, increase employment and result in higher tax revenues. However, what we have seen is an increase in deficits at both the federal and state levels since the late 80’s. [1] This is the result of wishful thinking that goes against any teachings within the field of macroeconomics. Macroeconomics textbooks inform students of a balanced budget theory that states if there is an increase in government spending, there must be an increase in taxes.[2] The United States as well as many other governments hasn’t implemented such a theory in quite some time if at all. However, what I have seen is immense spending on part of the federal government which has been fueled by credit lines from foreign countries. If the federal government wants to spend money and cut taxes at the same time, they should do so as any sound business manager would, seek a return on its capital.

An effective strategy to achieve this return on capital is to have the U.S. government decrease the corporate tax rate in a carrot and stick fashion in order to increase the minimum wage. For example, companies that pay $7.15 an hour and pay a 35% corporate tax rate should see a 15% tax rate and the minimum wage for the employees become $14.30 an hour. This is the same concept as the financial bailout package for Wall Street. However, this time dollars will be put directly into the hands of consumers and not “trickle down” to them eventually. Instead, the dollars will trickle up the economic ladder filling the tax coffers of the federal, state and local governments.

Moreover, this increased wage will enable the workers to deposit more funds into savings accounts. This will be beneficial to the banks because it will provide them with much needed deposits at a time when many have suffered terrible losses. Instead a run from banks, there will be runs to the banks which will help return confidence in the banking system. Banks will once again be flushed with cash and be ready to lend money to worthy customers.

What can states learn from HSBC Bank

I paid a visit recently to a local HSBC branch on Staten Island because I was interested in their First Home Savings Program. The program works as follows: potential homeowners are required to save a fixed amount of money every month for a period lasting up to two years. After the saving period, homeowners that have established a good payment history with the bank will see their initial contributions matched at a ration of 4 to 1 which is limited to $7500. The catch you ask? Homeowners must borrow from HSBC. By doing so, HSBC invests $7500 in down payment assistance in which the bank will recover over twenty times that in interest charges over the life of the mortgage.

Therefore, states can use this same strategy that has worked for HSBC and implement it in order to increase the tax base. For example, Frank is interested in purchasing a home but doesn’t have enough for a down payment. New York City steps in and says they will match dollar for dollar of the amount saved which will be limited to say $10000. Now Frank purchases a $200,000 home. New York’s property tax rate is about 12.139% as of 2009. As a result, the funds that the state invests in the form of down payment assistance will in effect crease a return of $24,278 / $1,000 = $24 x $50 = $12000(yearly tax bill).[3] Over the course of thirty years, the property owner will have paid an estimated amount of $36000. However, real estate prices usually increase at a rate of inflation every year which is estimated to be 3% annually. This means that the state will recoup more than five times what they initially invested with the down payment assistance. In addition, homeowners will see their wealth increase and as a result be able to increase their spending. By doing so, local business make more money and hence pay more taxes which further enriches the state.

Damage control

The recent credit crisis has caused massive damage on the cities tax base because of all the foreclosures. This is why we need such a plan implemented as soon as possible. There are already talks of massive cuts to social programs as a result of the budget shortfall. Governor Patterson recently made a trip to Washington to ask for funds to close the $47 billion dollar budget gap that is expected to hit within the next four years.[4] Further erosion of home prices will only throw salt on the already gaping wound of the cities housing market. However, the strategy suggested above can enrich the lower income households and help move them up along the upward mobility ladder.

The increased minimum wage will no doubt increase consumer spending levels. Since consumer spending accounts for seventy percent of Gross Domestic Product, there will be enormous percentage increase in these levels. Along with this increased spending comes increased revenue from sales tax on items purchased in the state. Therefore, states will not only reap windfall property tax revenues but also from sales taxes as well. Business will be able to hire additional workers because of the increased business and expansion will once again seem a possibility for small business. The cycle can keep repeating itself until wealth has been restored to the middle class.

The increase in spending levels resulting from an increase in the minimum wage will help boost both large corporations’ and small business’ bottom line. Since the stock market is a forward looking mechanism, stock prices will appreciate dramatically. Investors will once again be able to count on their retirement nest eggs to ensure that their golden years will be just that. Therefore, the increase in both consumption levels and consumer confidence resulting from an increase in the minimum wage is just what the economic doctor should prescribe to eradicate the flu that has plagued the markets. .

[1] Nouriel Roubini, Supply Side Economics: Do Tax Rate Cuts Increase Growth and Revenues and Reduce Budget Deficits? Or Is It Voodoo Economics All Over Again?Stern School of Business, New York University, 1997.

[2] Robert J Gorden, Macroeconomics 10th Edition, Northwestern University, 2006.

[3] NYC Department of Finance and Taxation, 2008.

[4] Rick Karlin, Gov. Paterson outlines more budget woes. Timesunion.com, 2008.

Frank Lorenzo

Many people are overwhelmed with all the aspects involved in creating wealth. Here are 3 secret starting points that most licensed Certified Financial Planners use with their clients. They are the basis of a good financial foundation. Many investment and retirement plans have gone awry because these steps weren’t in place. By implementing these three you will have a good foundation from which to build an investment program.

1) Cash Reserves and Credit. A minimum of 3 months gross salary should be in an emergency cash account. Use this account for sudden large expenditures like the car breaking down. If you have a lot of debt, I would increase that to a minimum of 6 months gross salary or more.

Obviously having good credit is a plus since most investors will leverage an appreciating asset to create more wealth. That can’t happen without a good credit score. A credit score of 730 seems to be the acceptable average good score.

2) Estate Plan. You need the minimum of a will, durable power of attorney for financial care and medical care. Why should you do this now and not wait till you are older? Because without a good estate plan a lot of your wealth can be erased during illness, disability, or death. Don’t let all that you accumulate go to the waste just because you never made an estate plan.

Estate plans now are more than just a bunch of legal documents. No one wants to think of sickness, old age, and death, yet all of us will experience that at some point, and the most important element of a person’s legacy is not money but passing along values and life lessons.

More people are using ethical wills not just to distribute assets but to also put their values and beliefs on paper. Even if you are not the best writer, you can find outlines and examples on the web to get you started on what memories, beliefs, values, or life lessons you would like to leave behind.

3) Risk Management. We all face risks while we are increasing our net worth and we can eliminate or lessen some of the risks through insurance. In other areas we can self-insure. Don’t let commission brokers talk you into the wrong kind and the wrong amount of insurance. Understand the risk, what you can afford, and what kind you need. Your future wealth depends on it.

I had a good friend who was a single mom let her desire for a home override getting these basics. When her son fell and broke his arm, she didn’t have health insurance so she had to pay out of pocket. She also didn’t have cash reserves so she had to put the expense on a credit card. Then she had to quit making payments on the house she bought to make payments on the credit cards. In other words, she didn’t have a good foundation to start investing in real estate and her whole financial situation deteriorated rapidly.

Don’t let your desire for an investment plan keep you from having these basics. Without cash reserves, a good credit score, an estate plan and insurance, your probability of success in an investment program is limited. You can do it.

Fern LaRocca

The ‘wind and the water’ or Feng Shui has been a large part of many traditional and modern Chinese folks for thousands of years and have followed them into the 21st century of modernity and the information age. I can totally understand this attitude, I mean everyone needs all the luck they can get and the great thing about Feng Shui is that it is very affordable and the effects can be life changing.

Every one of us has a foible or some sort of quirky tradition we do to increase our luck. It can be a favourite locker at the gym or a favourite shoe we wear on a specific day. Sounds strange? Sure, but people swear by them.

Millions of people swear by Feng Shui and if you are at all interested in bringing a tidal wave of luck and prosperity to your life, here are some fengshui tips to attracting wealth to your home.

Colours Of Your House
One of the best ways is to have a look at the colours of your house. White is a bad colour for most Chinese especially in Feng Shui because is represents death. Colour is important in bringing prosperity to your home because it creates a vibrant relationship with nature.

Try to add some red into important areas of the house, like your work area, or even the bedroom. Shades of red and even pink will do as they are colours of luck in oriental tradition. Luck translates directly into wealth and prosperity.

Gold is also considered to be one of the best colours to use. Try to accessorise your place with some gold, a Chinese speciality shop is one of the best places to look, or if one isn’t available, Western substitutes will sometimes do just as well.

Arrangement Of Your House
Feng shui and Chi – or good energy needs more space and less clutter for energy to be attracted to your home and flow evenly within. This is where some rearrangement needs to take place and if a place looks messy and gives you an uncomfortable feeling, it is more than just likely that it has some really bad feng shui and is chasing your wealth ‘Chi’ away faster than a bad smell in a small room. Breathing spaces are important especially in places in your house where you store money or do work.

Also, exits should never be in clear views within the house – especially when you first walk in to your house. Money and prosperity riding on waves of good energy will walk in to your place and leave just as quickly through exits. Don’t make them the highlight of your décor, and some Chinese households even use a screen to cover them up.

Have a look into feng shui crystals, because they are believed to be powerful tools that resonate with frequencies that bring wealth, health and prosperity to the household. Do a bit of research because each crystal has a specific purpose.

These are just some fengshui tips to transform your place from a vacuum of profit to a living breathing magnet for wealth and opportunity. The process is most of the time simple and if you can invest a bit more, have a Feng Shui Master to come and have a peek and your place – maybe make some recommendations. You won’t regret it.

Lynn Lee

http://www.IncreasePenisGirthNow.com Are you really happy with your Penis Size?

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all this spending?

I’m not asking about "individuals".

When members of Congress show an increase in their over all wealth in 5 years,,,,what party will have the largest gain over all?

Democrats

These people make their living off government, this pork bill is funnelling money to their constituencies and they will get their cut.

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Yes. Yes it does…

In Dungeons and Dragons.

Smith defined wealth as the capability to enjoy the necessities, conveniences, and amusements of life. Also wealth is defined as production capability or what we might call GDP.

Factors probably are: labor, productivity, capital. Some additional: wealth, family size, tastes and type of work (can’t remember exactly).