David Jenyns asked:




Trading money management is fundamental if you are to achieve your goal of financial freedom. The first step you will take in setting your trade money management rules is to define your trading float, in other words, the amount of capital that you have to trade with. In fact, one of the most commonly asked questions I get is, ‘How much do I need to actually start?’

To help you answer that question you need to first define your objectives. Here’s 5 key objectives that you should follow to get your trading on track.

How much time do you have to spend trading? That might be full time, part time or hardly any time. How much capital do you have to work with? Remember, you shouldn’t trade money you’re not comfortable losing. How much risk are you comfortable with? As we all know, markets move. There’ll be times when you have a drawdown. The question then becomes: how much of a drawdown are you comfortable with? 20%? 30%? You need to decide. What annual rate of return do you want? This includes what you expect to make and in what time frame. Be realistic about this. Decide what you honestly think will be returned based on what you’re willing to risk. For example, you’re not going to have a system that will return 100% per year if you’re only prepared to risk a drawdown of 5%. How do you want to take your money from the market? Are you looking for cash flow (consistently taking profits out of the market) or capital growth (looking to grow your capital in the market over time, using the magic of compounding)?

All these decisions need to be based on your income objectives. Are you in it to make a steady income or are you looking at long-term growth?

And remember, there is no set pay cheque in trading. It’s not a reliable income. You will have good months, even great months, but then a lull. So don’t quit your day job just yet!

So many new traders set themselves unrealistic expectations. Different variations of the question “I want to make 200% a year – that isn’t unreasonable is it?” are perennially fired my way. Now consider this.

Many expert investment fund managers barely make more than 20-30% a year (and many even make a loss). You have the advantage of moving quicker but still avoid overestimating your return potential. Generally speaking, you should avoid focusing on your ROI too much in the first one to two years. Use this time to finalise your plan and develop good trading habits – the profits will then follow. But only if you perfect your trading money management strategies.

Angel

ehowfinance asked:

An individual will usually enjoy the privilege of opening a checking account after establishing a savings-account relationship with the bank. Discover the importance of individuals providing enough money in their account to cover the checks being written withhelp from a registered financial consultant in this free video on checking accounts. Expert: Patrick Munro Contact: www.northstarnavigator.com Bio: Patrick Munro is a registered financial consultant (RFC) with outstanding sales volume of progressive financial products and solutions to the senior and boomer marketplace. Filmmaker: Reel Media LLC

David

AirelonTrading asked:

The Blog Entry that Accompanies this Vlog is at: investorandtrader.blogspot.com My Daily Blog is at: investorandtrader.blogspot.com My channel at BlogTV is: www.blogtv.com My Podcast is at: airelon.podbean.com and embedded in the daily blog. In the previous entry, I discussed how important it is to consider the danger of overtrading, and how it relates to your account size with a given time period. In the following video, I discuss the enemy of the low funded trader and investor. Commissions. NOTE: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 13 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research and risk tolerance

Leonard

SharpBets asked:

Welcome to SharpBets, the channel that is going to help you win money betting on sports. In this episode I disgcuss the most important concept of gambling, money management. You can be the greatest when it comes to predicting the outcome of a game, but if you can’t manage your cash properly you will go broke. This information contained in this and all future episodes are strictly for informational purposes. Be sure to follow all state and local laws when it comes to gambling and only wager money in legal venues such as casinos and animal track sports books. All music heard on Sharp Bets is royalty free, created using Scorefitter. All rights and permissions to use granted with purchase.

Marjorie

AirelonTrading asked:

The Blog Entry that Accompanies this Vlog is at: investorandtrader.blogspot.com My Daily Blog is at: investorandtrader.blogspot.com My channel at BlogTV is: www.blogtv.com My Podcast is at: airelon.podbean.com and embedded in the daily blog. The principles I covered earlier, while key and will assist you in trading? Are the 5 to 6 foundation elements of money management principles. There is much of those principles can be expanded upon, and there can be further discussion and explanations. These explanations will assist you to see more of the underlying strengths of the base principles. In this video, I discuss how Drawdown tolerance is affected by your Account Size, and the need to have a predetermined ‘Drawdown “kill switch”‘. I talk about that, in the following vlog entry which will be included in my “Money Management Playlist” … NOTE: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 13 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research and risk tolerance

George

Mary Joyce asked:




Money & Kids

Children have vast amounts of purchasing power (billions) either directly or indirectly. Yet, even with all this influence and direct purchasing power, children are rarely taught about money… and more importantly the managing of money. I for one used to be as guilty as the next parent when it came to making it a point to teach my kids about money and money management skills.

Of course, the generation gap combined with the technology age in which kids now live in had a big part in my lack of focus on this subject. But no more. If for no other reason, you should think for a moment how money is so rapidly transferred today; with just the swipe of a card. And in fact, many people (parents) today hardly ever come in contact with actual paper money anymore.

It’s so easy to load up your shopping basket with just the swipe of card… and there in lies the trouble for kids and managing their money today. It’s just too easy and there’s no immediate pain of actually taking those hard earned dollars out of your little purse or wallet and parting company with your money at the time of the purchase.

First of all, don’t put off teaching your kids about money, the value of it, and how to manage it. It’s never too early… especially today.

When you first begin to acquaint your children with money, be prepared for mistakes and some growing pains understanding conceptually. It is far better to allow your children to learn from mistakes involving small amounts rather than later in life when the same mistakes can prove financially disastrous. In fact, many financial experts agree that a big mistake is for parents not to allow their children to have control over their money early on.

As with teaching children about any subject matter there general guidelines about the level of complexity that is introduced at any particular age; teaching your kids about money management is certainly no exception. So, let’s take a look at some general teaching guidelines pertaining to money management and at what age level.

Even early on with toddlers and preschoolers you can give your child an allowance. Now keep in mind that they will probably play with it, misplace it, and maybe even lose it, but that’s perfectly fine. At this age, it is merely introducing the concept that their little bit of money has value and should be kept safe so it will be around when they want to use it.

With the ease and power given to today’s consumer, it is difficult to get adults to understand and have the discipline to save for something they want or need to purchase. But even at an age as early as about first grade you should begin to take on this challenge with your child. So much of today is instant gratification. And no philosophy will be tougher for you to overcome with your children and money management as this. Delayed gratification or saving for something they want is a very difficult concept to teach kids and for kids to master, but it is one of the most important when it comes to managing their money.

Be sure to continue on with working with your children and the delayed gratification concept. In other words, teach them the principle of working and saving for something that they want to get. You’ll find (and they will too) that as they learn this lesson, whatever it is they worked, waited, and saved for will have much greater value to them personally.

The next level you’ll want to discuss with and teach you kids are the difference between needs and wants. This is ever so important today in this media, marketing, and consumption society in which we live and our kids are hammered with daily. You won’t have to look far for examples of needs versus wants… just turn on the television and wait for and advertisement.

Talk with your kids and discuss what it is the advertisement is going after them for and why. This is a very big money management accomplishment for kids when they begin to honestly differentiate between needs and wants.

It’s also at this point (early to mid grade school) that your kids begin establish some sort of savings plan for something they would like to have (notice I didn’t use ‘want’). The whole process of budgeting and saving for something at this age will give your kids a great sense of accomplishment, pride, and a first start toward financial confidence. Also, at this age with your kids introduced to saving and budgeting, it is a good time to introduce them to paying for some of the extras that they would like to have for school, sports, band, etc… and for beginning charitable contribution.

From here continue increasing your kids understanding of budgeting and managing their money by weaning them off of you providing the lion’s share of their ‘wants’ to them working, budgeting, and saving. Simply increase their financial responsibility to themselves, keep increasing their social responsibility too by giving to charities of yours and their choice.

As your kids progress to their teen years and become more mature, the time will come that you may want to consider getting your child some form of credit card. By this time in their life they’ll be considering college or some career path that will quite possibly require some sort of financial loan; and at the very least they will be needing even more financial freedom.

A prepaid, parent monitored credit card is an initial good solution. By now and through these many years of your tutelage, your child has become financially literate and it’s all because you started early on teaching your child solid money management skills and philosophies.

Kids today are bombarded with advertising, and keep up peer pressure; and this is why money management and financial skills are must subject matter for parents to continually cover with their kids throughout their childhood and teen years. If your kids become financially responsible at an early age, chances are much greater they will continue throughout their lifetime.

Cody

AirelonTrading asked:

The Blog Entry that Accompanies this Vlog is at: investorandtrader.blogspot.com My Daily Blog is at: investorandtrader.blogspot.com My channel at BlogTV is: www.blogtv.com My Podcast is at: airelon.podbean.com and embedded in the daily blog. In the following vlog, I discuss how to determine when you are overtrading. And how overtrading relates. And how it relates. To what? Your account size. … NOTE: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 13 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research and risk tolerance

Chester

Michael Russell asked:




Money Management is a primary concern for most people as they begin to think about the future. The thought wasn’t always there in the past regarding your retirement or even your next paycheck. With major corporations disappearing not only with your job but also with your pension, more people are concerned and should be.

There are many means of money management available. You can put all your extra cash in your pillow, you can put it in a box under the floorboards, you might even want to put it in a bank. If you put it in a bank, are you going to put it in a savings account, your checking account, a CD (certificate of deposit) or maybe a money market account. You might want to set up a brokerage account and trade stocks or have a managed fund account.

One of the best means of long-term money management is Real Estate investing. With Real Estate on a constant increase in value, a lot of experts agree that this is one of the best investment strategies. Within the Real Estate investment opportunities, there is an assortment of investment strategies. There are short term strategies such as flipping properties and long term strategies such as buying to rent and selling in 20-30 years to fund your retirement. I’ve heard of a couple that had 3 children and they heard that buying investment properties was a good way to be prepared for their children’s college fund. So they purchased 3 properties with nice homes on them. They took care of the properties for years without consideration of occupying them with renters during this time. Their entire intent was to resell at the time their children were going to college and using the proceeds to pay for their college education.

Before you start to invest, educate yourself. Investments in Real Estate can be costly. You do not want to throw your money away because of ignorance of prudent Real Estate investing decisions. Figure out what your investing goals are and what methods of investing will help you achieve these goals. Do you need to create short term income with your investing strategies or can all of your profits be considered long term. Can you put more into your investment or is it a one time lump investment. How much risk can you stand? Do you need strategies that are less risky. Are your funds limited and maybe you might be interested in investing in Real Estate Investment Trusts (REIT) through the stock market instead?

If you want ownership of the property and your funds are limited, you can look for deals with foreclosure properties. Sometimes you would have to put some work into a property so you need to be prepared. Make sure you can do the work yourself or you have someone that you can go to and you have a reasonable idea of the costs involved.

One of the investment strategies you may not hear of much but nevertheless it is a big investment strategy, is Tax Lien Investments. Basically, when taxes are not paid on a property, the county would assess a tax lien on that property. The Tax Lien is then put up for sale by the county. If you bid on the lien and are awarded the lien, then you would pay the county the amount of tax that is due. The property owner would then have to pay the back tax plus a penalty. This entire amount is then paid to you. Each state sets up the what the amount of the penalty is. In some states, it is 14%. In others, it is 25%. This figure varies from state to state. If the property owner doesn’t pay the back taxes and the penalties after 3 years, you can foreclose on the property. Tax Liens take precedence over most other liens.

Marlene

Lucas Richardson asked:




Forex money management is often talked about but equally often ignored by a lot of traders – names like Nick Leeson and Jerome Kerviel spring to mind as traders who risked rather more money than was sensible. But what can you do to ensure that your own money management is sensible whilst still allowing you to grow your bank at a pace that is quick enough to keep you interested in trading?

Don’t risk too much per trade

Regardless of the results of your paper trading, placing real money on real trades is a completely different feeling. It’s one thing to paper trade at 2% or even more of your bank but those figures are only play money and deep down you know that’s true. If you blow up your bank on a demo Forex account, no worries, you can re-start. But if you do the same thing in real life, it’s a different story. If this is your first time trading currencies, start with a really low risk per trade – maybe as low as 1/2% of your bank – until you get into the mind set of trading cold, hard cash.

Set your stop losses sensibly

One thing you’ll soon learn when you’re using a full Forex account is that stop losses aren’t a guarantee that your trade will actually exit at that point. Sometimes the market is moving too fast and flies past your stop loss without a care for your position. This is called slippage and it happens every now and then, quite often when there is a big news item but sometimes for other inexplicable reasons. That said, you still need to set your stop loss – use a spreadsheet or calculator to decide how many pips away from your initial position, taking into account the size of the spread and the regular fluctuations in the market prices. Setting a stop loss is an art form: set your loss too tight and you run the risk of being pipped out of your trade; set it too slack and you run the risk of eating up your bank when a trade goes the opposite direction to the one you thought.

Ride your winners

Too often, traders ride their losers and cling onto trades in the hope that they will turn round. Many people also cut their winners far too quickly. It’s tempting to scalp some pips but unless scalping the market is your chosen trading style then you should resist the temptation to exit a trade too early. Sure, move your stop loss to break even when it’s safe to do that but don’t close out a whole trade too early. Most software platforms allow you to set a trailing stop loss which will help to lock in your trades whilst protecting most of your gains. Take the time to learn how to set these up in your software and watch their effect on your bank. Like most things in life, this is a skill that takes time to learn but your patience will be rewarded as your bank begins to grow.

Anita

gripsed asked:

Why do most poker players go broke? The answer can be found in this video, money management. Learn the techniques professional poker players use to make sure they dont run out of bankroll. Learn to preserve your .poker money, know your limit, and some tricks to get extra dollars For More Videos check out: www.gripsed.com

Brittany