Top Trading Disasters and How to Avoid Them – Part I

1. Never trade with money you can not afford to lose.

It is a classic mistake that is just a recipe for disaster. If your next trade just has to be a winner or else you will not be able to pay the rent or buy food for the family then you simply can not act objectively. In general, this is referred to as “trade with scared money”. Trade with scared money will always lead to trading on emotion rather than logic.

If you then immediately stop this situation with the trade. Make sure you cover your monthly expenses and put a regular amount away for a trading fund. Only when you act again to estimated needs of your trading system to cover sufficiently.

2. Do not wait for the perfect trade.

No one enjoys a losing trade, unfortunately that is just part of the game. It is easy to sit back and demand more and more confirmations that the trade that you enter is going to be profitable. Maybe you can tune into Bloomberg and wait until the commentators agree with your opinion or wait a few days to be absolutely sure that the breakout that you looked really happening. You might ask your friends and colleagues what they think. Alternatively, some traders have a list of a dozen green indicators to show all before they press the button.

Not reckless and requires a bit of confirmation is a good thing. When taken to the extreme, but will lead to serious procrastination. If you find yourself always say: “I knew the trade would be a winner, if only I’d gotten on the earlier ‘just because you saw it or you’re starting to hunt trades long after the opportunity is gone first then you know you need to cut down on the fasteners.

Remember there are no guarantees in trading. Have faith in your system and take the trade as soon as it is detected.

3. Do not be carried away by a big winning trade.

If you trade long enough eventually you will have a ‘spectacular’. Making 50% in a week or doubling your money in a month. Suddenly you begin to feel invincible. You calculate how quickly you become a millionaire and you start browsing! The Ferrari or Aston Martin websites

The market has a nasty habit of bringing such dreams down to earth and all too often you will find your best month ever quickly followed by your worst week ever where you lose everything you made and more.

Always focus on your trading system. Do not start thinking that you can market off too smart.

4. Do not own opinion.

Your opinion means nothing to the market. You are a person against tens of thousands of other traders. If you’ve ever found yourself yelling at your trading screen that the market is wrong then you need to let go of your own mind and follow what the market is doing.

Perhaps your opinion about market direction for the long term is correct, but in the short term all the different opinions of all those tens of thousands of other traders wild swings on a given day can cause.

Can Any Investment Be Turned Into A Rental Property

Deciding to your real estate investment into a home can be a good idea. There are many benefits that can be had by turning your investment into a rental. As long as you go about knowing everything there is to know about it, you will do very well. In fact, doing so can earn you more money back then just turn around and sell the property.

The first things you can get are tax advantages by turning your real estate development in rented accommodation and appreciation. This is because you hold a property the longer the better chance you can take advantage of all the tax benefits that may be available. This can allow you to actually more of a profit than if you just sold the property to make. This is because there is usually a minimum of time, the property should take advantage of in order to preserve them. This also applies to capital appreciation. If you have no better use of the property, but you want to increase profits renting the property can be a good idea to do that.

But if you turn into a property investment you can also use a monthly rent you charge. This is something that should not be done without looking at all the details first. Fully This includes looking at how much you charge. The amount that you should not only be based on the condition and location into account but also on any expenses you may have to put together all the mortgage or loan payment you may have to make in the house. That way you do not lose the rent money. You will also want to make sure you rent that you are able to perform a background check on. That way you confident of the fact that they can pay and pay on time and you will not lose in the deal money.

A final profit that can be made by turning your investment into a rental home is the money you can make any additional costs. These include security and pet deposits. You can legally charge a certain amount for this per tenant. This in the end can see you more profit than if you were to sell the property. You have to calculate before deciding which way to go, but if all this rent, you decide you would end up doing very well.

As you can see, turning your investment into a home can be a good deal. But if you do not want to deal with tenants and so you may want to reconsider. Although, most of those people who rent their homes find it a great way to earn a month and have so very easy some money. Ultimately, it is up to you, weigh the issues thoroughly and you’re bound to be the best way to go for you to find.