Why Swing Trading Is Favorable For Beginner Traders

As a beginner trader, you need to understand the different trading time frames available. There are actually 4 time frames to choose from. The first one is the day trading, then the swing trading, intermediate trading and lastly, the long-term trading time frame. But if you're a beginner trader, I would encourage you to choose the swing or intermediate trading time frame.

In day trading, everything moves fast. Stock price moves fast and it fluctuates fast that it can make you cry. You will be bombarded with countless information that only an experienced and knowledgeable trader can handle well. Beginner traders will really find it very daunting and challenging. And because they don't know what to do, they may eventually lose money in their trades.

Here are the benefits of swing trading:

1. You give yourself time to adjust to trading: Trading needs practice and time to get used to. If you want to become a profitable trader, you need to adjust to how the market behaves. With the swing trading time frame, you have the opportunity to do exactly this.

2. Identify the overall trend: Day traders capitalize on the slightest fluctuation of the price movement to gain profits. On the other hand, swing traders wait for a trend to form before they actually get in a trend. This helps them secure their trades. In this time frame, you'll see the beauty of trends and reversals.

The stock market can be compared to traffic hours. Day trading happens during the rush hour when traffic is just tight. Everybody is busy taking care of their own business. Everything looks and sounds like one big mess. Swing trading on the other hand happens in between rush hours. You get to maneuver your car in different lanes without any hassle. Traffic is definitely tolerable. If you're just learning how to drive, which scenario do you prefer? I don't know about you but I prefer driving in an empty street since I just don't have to deal with the risk of bumping into any car because of my lack of experience. As my skill progresses, the more comfortable I will feel driving next or behind another vehicle. This is due to the fact that I already know what to do and what to expect. It's the same concept with trading the swing trading timeframe.

Starting out as a swing trader or an intermediate trader is the best way to be inducted to trading. This is what I believe. Although I am not encouraging beginner traders to start as a day trader, you can still trade this time frame though. However, never do so without proper training, education and guidance. If you really want to be a day trader, you need stock market education, experience and consistent guidance from a trading coach. In order to be a successful trader, you must never skip or reject these 3 factors I just mentioned.

Before you take day trading into serious consideration, try reading more about swing or intermediate trading first.

Preparing Yourself for Home Ownership

Do you want to buy a new home while avoiding the missteps and mistakes that overwhelmed many buyers the past few years? Buying a home now, especially with today's low mortgage rates, can be an excellent investment, but you need to be financially prepared for the responsibility of home ownership.

Establish a budget and live by it. You need to track your earnings and expenses to know where your money is going and determine how much house you can afford. Expenses consist of utilities, car loan, credit card debt, and housing expenditures as well as miscellaneous spending which includes entertainment, dining out, and even that cup of coffee you routinely stop and purchase on your way to work. A good way to track spending is to open a checking account and use online banking to obtain spending feedback and establish a reasonable and retainable budget.

Get control your debt. You don't want to buy a home if you have uncontrolled debt. Excessive debt, limits available cash for mortgage payments and the unexpected expenses a home owner can experience. Also, the less debt you have, the better your debt-to-income ratio, which is one criterion lenders use in approving your loan. According to the Federal Housing Administration (FHA), your debt expenses, including your mortgage payment, should not exceed 43% of your income.

Shape up your credit report. Even though you don't have to have perfect credit to qualify for a home mortgage, a better credit report can qualify you for a more favorable loan with lower interest, potentially saving thousands of dollars over the life of the loan.

Create an emergency savings account. As a home owner, an emergency repair on your home or an appliance is never a matter of if, but when. Even as a renter you should have an emergency fund. You never know when your car will break down or you will need cash to cover an unexpected situation. With an emergency fund you are prepared for the unexpected and won't need to rely on a credit card with its high interest rate to pay for the emergency. A handy way to start an emergency fund is to open a savings account at your bank, make regular deposits, and don't touch it unless it's an emergency!

Save up for a large down payment. A traditional mortgage requires a 20% down payment. Though some programs allow a smaller down payment, the more money you put down on you home, the smaller your mortgage payments will be. Have you heard of someone having an "upside down" mortgage? That means they owe more on their home than what it's worth. This is a situation you never want to be in. Having a large down payment will immediately provide you more equity in your home and help protect you from suffering an upside down mortgage. Should your home lose value as a result of a market downturn, a large down payment provides a safety net to absorb a possible loss should you need to sell your home.

Be prepared to stay in the same place for a long time. One of the advantages of being a renter is that you have quicker mobility to move if needed compared to a homeowner. That mobility comes at a cost as your monthly rent creates zero equity and pays absolutely no financial return to you. If you buy a home, be prepared to stay in that home for at least three to five years. The longer you stay in your home the greater the equity you will create which will put you in a much more favorable financial situation should you decide to move.

Home ownership is part of the American dream. However, if you buy a home before you're ready financially, that dream can quickly become a nightmare. With a little patience, homework and financial diligence, you can make that dream into a reality.

Does All of This Debt Really Affect YOU?

As I talk with people from around the nation, I am constantly reminded that the federal government has almost $17 trillion in debt and unfunded liabilities totaling almost $100 trillion. The important question is of course how this really affects you; or does it? I mean with all the hoopla on the right, you'd think the world was coming to an end and with all the people on the left being so blasé' about it, you'd think it doesn't matter. So what is a normal person to think; what is the truth?

American's are becoming increasingly uneasy about the nation's debt situation and even the global debt situation. In America today, there is a total of around $55,000,000,000,000 in actual debt between government, business and individuals. This is staggering by some measures as our economy is only a little over $15 trillion; so our debt is in excess of 3x our national income. If we normalize these numbers down to the "per person" level, our income is around $50,000 and our debt is around $150,000; adjusted further to reflect only people who are tax payers (so we're not counting children, the poor, etc.) those numbers are still around $50,000 income because that has to provide for everyone regardless of status, but the debt grows to around $300,000 per tax paying person. So think about it as having $50,000 in income and owning a $300,000 house. You're not in real trouble if interest rates stay low and you keep your job, but if rates rise, or you lose your job look out.

The simple answer to whether or not this debt affects us in our real lives is categorically yes, it does affect us, and it does so in four tangible ways; interest rates, access to credit, inflation and economic growth. Let's take just a moment and drill down into those four key areas.

First, interest rates are set by global supply and demand of debt and by the perceived security of the debt instrument. Today, interest rates in the U.S. are near zero because there is an enormous supply of debt, a large demand for debt driven in part by the U.S. Central Bank (The Federal Reserve Bank) and a high degree of safety as the debt of the United States is ultimately secured by the taxpayers in the United States, the world's largest economy. These dynamics benefit U.S. borrowers for home mortgages, car loans and business debt. However, the risk is that the demand for U.S. debt will shrink because eventually the FED will discontinue its buying spree. Should this happen, rates will increase in order to provide incentive for others to step in and loan the government money.

The second issue is access to credit and the issue here is supply and demand once again. As the government takes up more and more of the supply of lenders, there are fewer and fewer lenders available for consumers and business. This is felt by businesses and consumers as things like the amount of down payment for a loan increases or the need for a superior credit rating increases. Think about it, would you rather loan money to the government where you're virtually assured of repayment or an individual or business that might well default? A rational lender will respond by saying a) you pay a higher interest rate for the increased risk; b) you need to put up more collateral; and c) you need to verify your ability to repay. This increased difficulty in borrowing money is the second risk.

The third thing is inflation. Now understand that typically inflation is caused by an over demand for a limited supply meaning that when U.S. manufacturing capacity is nearing its limits, prices naturally rise. However, there is a second type of inflation which is caused by a devaluing U.S. currency. Simply stated, as more dollars are printed due to expanded borrowing, each dollar in circulation is worth less and thus prices rise. We've seen this primarily in food and fuel; interestingly two things left out of government inflation statistics.

The fourth thing is economic growth and it is directly affected by the first three issues and this is where debt does directly affect you. As interest rates rise with a changing supply/demand equation, and access to credit to the private markets is naturally restricted, and prices on core commodities rise the economy's growth is slowed down. This credit situation we're currently experiencing is one of the major reasons our national growth rate hovers around 2% per year. This economic malaise affects real people by limiting access to new jobs; limiting compensation increases and bonuses and increasing the uncertainty people and businesses feel which in turn reduces consumer spending which ties right back to reduced economic growth.

Until the United States begins to show signs of reducing its red ink, the economy will continue to experience the anemic growth rates of the past few years. This debt DOES affect everyone. In the near term, it will not lead to the apocalypse some on the right are suggesting, but by the same token it is a real and important issue unlike what some of the left would suggest (Paul Krugman comes to mind). To rekindle a significant growth rate in our economy and thus restore middle class prosperity, the United States must get its financial house in order. Until then, normal people will suffer, and investors will prosper. How you ask? By using investments that capitalize on fluctuating currencies, commodity prices and equity and debt markets and the mission of The Society is to teach you how to do that! We can help.

The Ins and Outs of Car Repossession

With the economy being in recession for most countries, repossession of vehicles is becoming more and more prevalent. People are struggling to keep up with their payments and the cars are being taken back by the lender.

When can a car be repossessed?

A car can be repossessed when the payments are not kept up to date. This is mainly when cars have been bought of hire purchases. This is when you have a monthly payment for a car and after a certain time period, the car will become yours, but whilst you are still making the payments, the car is still the property of the lender and you are essentially hiring it from them.

With this type of purchase, the lender can repossess the car without a court order if you have paid less than one third of the value of the loan for the car. They can't do this without a court order if you are near the end of the loan period when you run into money troubles.

What is a repossession?

This is where most people get mixed up about what constitutes a repossession. The lender cannot just turn up on your doorstep, enter the premises and then take the car. This would be breaking and entering and theft. They have to have your consent to take the vehicle. If you are having money problems anyway, you might be happy giving your consent.

If you do not give consent, then the lender has to apply to the court for a default order and then a repossession order for them to legally take the vehicle.

What if you want to keep the vehicle?

If you are having money trouble, but you want to keep the vehicle, you can ask the lending company if they will give you some time to get some money together and carry on making the payments. This is at the lenders discretion and don't rely on this. They can refuse this and send you a default notice anyway.

You also have the option of contacting the lender and asking them for a reduction in payments. This way, you are still making some payments and you are not completely defaulting on the payments. You will still incur interest on this payments, so you need to discuss with the lender if the lesser payments will cover the interest as well, otherwise there is no point in making the payments.

Check your contract!

Before you do any of the above, you should check the contract and see how long you are actually tied into the hire purchase for and if there are any "get out" clauses. There may be a clause where if you are made unemployed, you can just give the car back no questions asked.

If you are near the end of the contract anyway, you might have options for selling the car, paying the remainder of the loan off and then paying some other items off as well. This might be better for you in the long run because you won't default on the loan and it would affect your credit score.

When you are experiencing money problems, it will be a highly stressful time for you. It will be hard for you, but keep in mind there are options out there for you. You don't have to live in the constant worry that a bailiff is going to come knocking at your door. Do your research and try to remain calm.

If you are thinking about hiring a car and you know that you might come into money troubles in the future, it may be worth having a credit check done to see what items you actually own and what could be repossessed in the future.

Don't Let Your Immediate Annuity Funding Options Limit Your Choice Of Annuity

Retirees looking for a vehicle to supply retirement income often consider annuities - specifically the immediate annuity. Though retirees may have specific arrangements set up for funding an immediate annuity, they should be prepared to go purchase the best paying annuity they can.

An immediate annuity is a guaranteed series of payments that can continue for a set number of years or one or more lifetimes. The promise of a steady, predictable income that you can't outlive is very attractive - and a unique character of the annuity as an investment.

With the boomers starting to retire, financial firms are aiming to attract more annuity customers with competitive deals. Because of this you must be sure you shop around within the immediate annuity market for the best deal. Beginning an immediate annuity is a permanent decision, so getting the best payout for your money is important

Typically, immediate annuities are purchased in one of three ways. One way is with a lump-sum payment that the purchaser transfers to the annuity company to buy his 'stream of income'. This lump sum may come from a retirement plan distribution, a personal injury settlement, or a divorce as examples.

Another way is by simply annuitizing a deferred annuity you've been contributing to over the years. Annuitization means converting the value of the deferred annuity into an immediate annuity.

Lastly you can fund your immediate annuity through the terminal funding of your retirement plan. Some retirement plans terminate their liability to the participant by transferring the plan's value to an insurance company. When a retirement plan pays out this way it creates a special kind of "qualified immediate" annuity requiring no taxation on the transfer, but all payments are fully taxed as income.

But be sure you recognize your choice to choose the best annuity company you can find for each of these options. So, if you own a tax-deferred annuity and want to annuitize, you aren't limited to the payout offered by your own insurance company. You can still shop for the best deal offered by competing companies. You need only complete a tax-free (IRS Section 1035) transfer to the company that offers the best terms.

Even if your retirement plan offers only one insurance company for terminal funding, you can still shop for others and then transfer the money to the vendor you think is most suitable for you.

Because of the competitiveness in this industry, shopping around is the wise approach. If you want information on annuity payouts, just give us a call or fill out the card so we can get it to you.

Realize that income from annuitization is taxed partly as ordinary income and partly as return of capital - i.e. the premium you paid for the annuity.

Tricks to Get Your Home Loan Approved Even With Bad Credit Score

To buy your dream home, you need to first get pre-approved for a home loan. With bad credit ratings, it can be next to impossible to qualify for the loan. Home loan restrictions are tougher than ever today, mainly down to the massive bank bailouts and rising cases of foreclosures. Obtaining a loan is no longer as easy as it once was. However, you can still manage to be approved even with your bad credit score, if you are a bit proactive and smart in your proceedings. Here is a guide for getting home finance with less than perfect credit score.
Check credit history

Before starting to look for a home loan, take the time to evaluate your credit history. Your credit score might not be as bad as you initially perceived. A score below 620 is considered bad; however, a score over 620 and below 680 can at least get you qualified for a home loan.

Improve credit score

Before rushing headlong to make any overtures, take the time out to improve your credit score. Start by clearing your pending bills, paying outstanding debts and change your account to a current one. Steadily, improve your credit score to make your home loan more affordable. Before signing any contract, have your attorney to take a personal look at it and update you on the intricacies involved.

Down payment

Try your level best to make a large down payment on the home. The more money you manage to put on your home, the more favourable will be the terms on the loan, irrespective of your past credit score. If you are unable to make down payment of at least 10% of the value of the home, you will be required to pay additional charges on home insurance, which will radically increase your monthly payment.

Contact mortgage broker

There is too much complex jargon associated with loans, which can be beyond your comprehension. Contact an accredited mortgage broker and inquire with them about the finance requirements and documents needed to qualify for the home loan. Your loan application will be processed on three distinct categories - your current income, credit ratings and ability to repay the loan. The job of your mortgage broker is to guide you through all the intricacies involved and make sure your loan application is sanctioned.

Shortlist lenders

Shop around for lenders; a bank might burden you with a ridiculous interest rate, especially with your bad credit history. Search online, shortlist the companies that commands good reputation in the market. Read the information given on the company's website; determine if the company will be willing to work with people with bad credit score.

Loan application

Applying for loan online is easier than ever today. Fill in the easy application form with required details and submit it. Once the application is processed, the loan provider will contact you directly to further discuss on the loan. If everything goes well, your loan amount will be sanctioned even before you realize it. Be prepared to pay staggering high interest rate. Keep an eye out for closing costs, points, penalties and other hidden charges, when deciding on a loan.

Thorough research and careful planning is all that it takes to get the loan that fits your budget.

Financial Fitness Tips for the Mom Entrepreneur

One of the greatest gifts of being an entrepreneur is the opportunity to flex your financial muscles. It's also one of the greatest challenges for me personally. In fact, many entrepreneurs make the decision to start their own business because they have a certain skill or talent - or an idea for a product. They don't know anything about the financial aspects of business - like payroll, budgeting, P&L statements, profitability, cash flow, taxes, etc. So what happens? We learn as we go! We rely on the experts. And we develop those financial muscles.

Many of the moms I work with are creative types - writers, photographers, caterers, artists, graphic designers, fitness trainers, dieticians, chiropractors, counselors... and the financial aspects of business don't come naturally. Very few of them are "in the business of money." Yet, all of them are in business for themselves. And if you're a mom entrepreneur... if you own a business of any kind... no matter what your company is... no matter what service you provide or product you sell, as a business owner, it's YOUR JOB to know about the money. And if there's something you don't know, your job is to find someone you trust who does know. It's a challenge for some of us to accept this responsibility, but we can't have a thriving business unless we do.

Here are five financial fitness tips to help you develop those financial muscles and stay in good financial shape.

Financial Fitness Tips for the Mom Entrepreneur

1. Open a separate checking account for your business. This is the single most important step you can take to turn your hobby into a business. For some reason, this simple task is a huge ordeal for many moms when they are just getting started in business. They put it off until they are making money. Or they convince themselves that it's going to take a long time and require a ton of paperwork, so it's not worth the effort. The truth is it takes about 30 minutes to go to the bank and open a business checking account and in most cases all you need is your tax ID number, some identification and an initial deposit. Having that separate account not only makes things cleaner for you at tax time, but it also helps you to take your business seriously.

2. Pay yourself a salary - even if it's a small amount. Here's another step that many entrepreneurs tend to skip in start up phase. They pay their vendors, employees and bills and then pray there is enough left over to take a distribution for themselves. I understand that when there is little or no profit and you're bootstrapping the business you may not feel right about taking a salary. But, hear me on this - you WILL burn out if you don't have a reasonable steady salary coming in! And you can choose to invest it all back in the company if you want to - but it should still be coming to you on paper. And I know it's a stretch to think about this now, but if you ever plan to sell the company - or seek investors - you're going to need an accurate operating budget, which would include your salary.

3. Hire a bookkeeper and CPA. For most entrepreneurs, this is one of the first responsibilities we need to outsource. That's because we are not experts in finances, taxes and bookkeeping. Yet many of us insist on trying to do it ourselves. I did this for several years before I realized that it caused a strain in my marriage. One day I was working on the books with my husband and we could hear the kids playing in another room with a babysitter we had hired so we could prepare our tax return. We sat in the office for about three hours, getting frustrated and irritated with each other while the kids laughed and played. I decided that we would never again miss out on a day of fun with our children so we could do something we weren't very good at doing and didn't enjoy doing at all. I immediately hired a bookkeeper and a CPA and have never regretted it. Remember, when we let go of something we are not called to do in our business, we have an opportunity to bless another business owner who is called to serve others in that capacity. And - we free up our own time to focus on what we are called to do in business and at home!

4. Watch your numbers to determine ROI and manage cash flow. If you are the type of mompreneur who gets wrapped up in the creative side of business and ignores the finances, this is going to be a challenge. But just like a new exercise routine, you start small and make a commitment to be consistent. The idea is to schedule a specific time every day, week or month (depending on your business) to review your financial statements. This is easier to do when you have a bookkeeper setting up your books with you. And it doesn't have to be a complicated process - you can create a simple spreadsheet or dashboard that allows you to track the numbers you want to monitor, such as sales, expenses, returns, accounts receivable, etc. This dashboard will be different for every business, but keep it simple and focus only on the numbers that will help you make better decisions in your business.

5. Set boundaries around your time and money. This is one that's difficult for women because we're people pleasers and we don't like to say no. But if we want to run a profitable business, we have to set boundaries around our time and our money. When you set boundaries around your time and our money, you are able to:

• Charge what you are worth for your services
• Outsource or delegate tasks
• Stop saying yes to volunteer projects that steal your joy and leave you filled with resentment
• Identify the charitable contributions and in-kind donations (pro-bono work) you can commit to for the year and say no to others
• Stop attending networking meetings that aren't bringing you an ROI
• Collect on unpaid invoices
• Require payment in advance for your services
• Attract clients and customers who value your time and will pay what you are worth

What am I missing? Share your financial fitness tips with us here!