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Position Sizing Can Limit Trading Losses

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Many seasoned traders know that position sizing or determining the size of each trade is a vital part of any trading plan. Many beginner traders however make the mistake of not paying adequate attention to this step. They believe that it is enough to simply define the initial stops. This however is a very incomplete way of trying to manage your risks.

Determining the size of every trade is crucial for the protection of your trading float. When you are certain about the number of units that is ideal for you to deal with, you are protecting your capital from getting eroded. Moreover, when you fully delve into proper position sizing, you are also able to identify your win and loss potentials.

What many investors don’t realize is that size matters. The amount that you put in is the indicator of how much you might earn or lose. The more units you purchase, the higher your chances of winning. This is why some immediately invest a lot, thinking that the more risks they take, the more rewards they get. Deciding on this factor however based only on the opportunity to profit well is not advisable. Remember that a big investment also magnifies your chances of losing. To arrive at the best option for you, your risk management system should incorporate a scientific way of defining the extent of an investment.

Getting the right guiding figure to enter a trade isn’t as complicated as you would imagine. You simply have to divide your already predefined maximum loss in dollars by your stop size. The result is the maximum number of units you should purchase on a single trade.

To settle on your maximum loss, identify the percentage of your float that you can bear losing. It is perhaps most sensible to settle for a loss of about 2% because this is neither too small nor too big. To identify your stop size, get the difference between the entry price and initial stop.

In some cases, you may need to further refine this part of your risk management strategy. Depending on your tolerance for risks, you may still view the resulting size as too huge for you. In this case, it would be wise to add another rule to keep your investment money safe. You can set a maximum percentage figure that corresponds to a specific dollar value over which you are not willing to lose. You can say for instance that you are not willing to lose more than 20% of your total float. Hence, if the result of your initial size calculations goes over this, you can follow your extra rule to further scale down your purchase of units.

Position sizing may seem like a technical trading step. In reality though, it is just a sensible way of making sure you don’t drown with the weight of your losses. Do not consider trading without paying due attention to this step. Put as much importance on it as you would on identifying your stops and the size of your float.

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A Review of the MXI Corp (Xocai) Income Opportunity

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MXI Corp (whose name stands for Marketing Xocalate International Corporation) is a company that is based out of Reno, Nevada. One of the more popular and heavily marketed divisions of this company is called Xocai. Xocai’s product line is made up of a variety of dark chocolate “treats” full of antioxidants that include X Power Squares, Xocai Nuggets, Protein Bars, Activ, and Omega Bars. There are also variety packs and gift boxes available for purchase.

There are opportunities to earn an income from Xocai and MXI Corp by becoming a Xocai Distributor. To become a Xocai Distributor there is an association fee of thirty five dollars. Many distributors like to call this the Xocai “club membership” fee. Once you join, you can earn income in a variety of ways. The two major ways are 1) to buy cases of Xocai products at wholesale prices and then sell the individual pieces at retail value and 2) to set up a down line and earn a commission from the sales of your down line.

With most multi level marketing programs, one person recruits a few people to work for him or her. Those people then go out and recruit a third set of people. This continues on, each group of people recruiting another group of people, and so on. This is called a down line. All of the members of a down line make sales. The members keep a portion of their sales and the rest of their profits get distributed up the down line. The head of a down line might earn five percent commissions off of their first level in the down line, four percent off the second level, three percent of the third, etc.

With Xocai, however, all Xocai down line members are treated as a single level, regardless of who recruited them and the head of the down line makes an average of the profits. This can be both good and bad because with other down lines, the head is guaranteed to make at least something. The Xocai method however has changed things so that if only some members of the down line make a profit, the original associate’s commission is diminished considerably. The most an associate will ever earn is fifty percent of all commissionable profits. This means that, in order to make enough with this business plan to be financially stable, an associate has to be incredibly careful about who gets recruited. This is not a MLM program that does the work without much effort. Another negative in the Xocai method is that all associates are required to have at least one level of down line and activate at least two more associates who will work under them.

While there are several methods of earning available with Xocai, you should beware of the MLM aspects of this program. It looks all good on the top but there are details that aren’t so friendly.

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Home Extension Project – Six Ideas To Finance It

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A home extension can be an enormous project both in financial and physical work. There are walls to be torn down, air conditioners to be installed, and many other technical jobs to conduct. It is important that you have a good financial plan to do home extensions.

Here are some steps to help you manage the budget for renovations.

  1. Make plans for your extension project. It is important to arrange every detail of your project. Do assessment on every element on your home that you are about to renovate based on the value of your home. If you take loan for your project, the loan provider will ask on specific outlines. From this early step you will know if the project fit your budget.
  2. Get estimations. You can do this by hiring a construction company. Do not forget to explain the considerations and parameters of your project. Provide the company with the expecting spaces they are going to work on. Compare with several companies for the best price.
  3. Manage your savings. It is estimated that you have to take some money out of your reserves, but this is not something to be afraid of. The advantage of using your own saving is that you do not have to pay any interest. It is wise if you take only the sufficient amount. If you plan to use loan provider then the amount would be less burdened.
  4. Some credit cards provide the Zero-Interest program. Find some information about it. It is a quick way to provide loans for your project. The credit card companies also suggest reward programs for you to take advantage of, but some of these programs have high rate of interest. Make sure you have read the terms and conditions carefully to avoid being haunted by debt collector once your extension project has been finished.
  5. Use the home equity loan to finance your renovation project. It generally has lower rate of interest than many other financing programs. If you want to sell the home before paying down the loan, reducing the equity in the home can deplete the return of your investment.
  6. The best and cheapest way to get extra budget is by asking your family and friends to invest for your home extensions. Small works such as remodeling and cleaning up the furniture can be done together with them. But be careful not to break anything, because the cost to hire somebody again can cost you double.
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Learning The Advantages And Disadvantages Of Ordering Food And Other Items Online

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Lots of people have seen the benefits of ordering stuff online. This also includes ordering food and getting them delivered straight to your home. Most fast food chains now incorporate online ordering into their services and even restaurants are getting into the act. Perhaps you have even experienced doing this at one point. So perhaps, you may also be aware of the advantages that come with ordering your food online which also goes the same for other non-food items. For one, the virtual realm doesn’t sleep, unlike the actual marketplace. Hence, you can place your order at any time, although there are some stores that probably won’t delivery 24/7.

Second, nothing beats the comfort of doing your shopping online, especially your groceries. Lots of housewives have switched to doing this because it allows them time to do their other chores. Instead of wasting time rushing off to the supermarket and waiting long lines, you can just load up your online shopping cart, checkout the items, and wait for them to delivered straight to your doorstep. Third, you get to score lots of great discounts and possibly get your food items at way cheaper prices than in the supermarket. It’s especially true if you’re diligent in scouring the virtual marketplace for discount coupons, promo codes, and other hot deal. Plus, if you’re a first-time customer, lots of online stores love to give complimentary discounts as well.

However, as much as there are lots of benefits, there are also a few drawbacks. We cannot help having them because this is the virtual world after all. In other words, these risks come with the territory. One, you cannot really see the items in actual. When it comes to groceries, this can sometimes be a bit vital. You cannot check the labels for expiry dates, ingredients, and such. So to remedy the situation, stick with those online stores that actually provide complete product descriptions. It’s also highly recommended to do your shopping in general with trustworthy sites. The risk is even greater if you’re trying out a new product, so it’s good to check out sites giving away free samples first. Two, you cannot transact with actual cash. This can present a bit of an inconvenience, especially if you’re trying to refrain from using your credit card.

Nonetheless, a lot of food chains and restaurants allow cash-on-delivery orders. Some online stores selling groceries do as well. But these would usually apply to those stores which are within your neighborhood. This means that if you are going to order non-perishable food items, like maybe canned goods or candies and chocolates and they have to be shipped from outside your area, then you definitely cannot pay with cash. Lastly, even with today’s sophisticated technology, there are still glitches when it comes to paying for your food items online. Errors in billing are pretty common, even when seemingly secured channels are being used. Of course, established online stores will refund you, but you still have to go through some steps. So, just exercise the necessary caution needed when ordering anything online.

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How To Slim Down Your Fat Wallet

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Trends and styles keep on changing. From big fat wallets, the style has now changed to slim and smart wallets, for both men and women. If you are one of those who keeps on saying, “I hate big fat wallets”, then you need not to worry, as now you have many good options that can help in getting rid of your big fat wallet and can make you look smarter.

You can get rid of your fat wallet if you avoid keeping all the needless items that have made their way into your overflowing wallet. These unwanted items can include restaurant bills, old photographs, storage cards and a collection of visiting cards. Use a separate card-holder and maintain it at home. To store your important contacts, you can use gadgets and your cell phone. Most of the new phones these days come with practically unlimited storage for saving your contacts.

Cut down the thickness of your wallet by using plastic money instead of hard cash. Apart from curtailing the size of your wallet, plastic money provides the safest way to carry your money anywhere. It is advised not to carry more than two credit/debit cards. You can keep your identification card and a few dollars; and that too if necessary, otherwise credit cards will do the job.

Slim wallets are more preferred for men because a big fat wallet affects the flow of dress shirts, way of sitting and can even cause back pains because of the improper body structure when sitting with a fat wallet in your back pocket. Most companies are introducing much slimmer and fashionable wallets, available in different colors (like gold, silver), materials (like original leather and nylon) and trendy styles. One such style is bi-fold or tri-folding wallets. These wallets provide the required space. Some can even hold up to 15 cards and can easily be placed in your front pocket. Such wallets come with a magnetic money clip while some provide a strong and secure clutch. Money/Card Clip Holder is another type of wallet that is light on your back pocket, and these can also be placed in the front pocket. By using a clip, all the cards can be placed one over another, while the money has to be rolled back to let the clip make it hold.

What makes your wallet big and fat, is its untidiness and improper maintenance. People usually keep on filling it till it starts coming out of their pockets. Even women who often clean and maintain their pouches and purses, do not clean their wallets leaving all kinds of chits, paper reminders and visiting cards in their wallets. This results in the hassle of searching the wallet for the right thing when required.

Once you have removed all the unwanted items and follow the aforementioned tips and suggestions, you would no longer be saying, ” I hate big fat wallets ” and can save yourself from the frustration of carrying a bulky and disorganized wallet.

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Why You Should Never Settle Your Credit Card Debt

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Most people believe credit is a good thing, but the truth is credit is a tool being used against many consumers. The problem is the majority of the American population is broke and depends on credit for survival. Credit is managing debt and most people do not understand how to manage debt. The school system in the United States spend so much time teaching students how to live their lives in robotic fashion, that they forget lessons in money management. Everything from employment, renting a car, to booking a hotel depends on some form of credit. Credit is for poor people who do not have cash in abundance. This is a problem rich people do not have to worry about.

The United States is the richest country on the planet, but has the widest gap between the rich and poor. The CEO of Wal-Mart makes about $7,000 an hour as opposed to cashiers and other Wal-Mart employees who barely make $300 dollars a week. How can anyone manage debt and live a comfortable life earning that type of salary. Most people are taught to negotiate their credit card debt for a settlement and improve their credit. This is the biggest mistake any consumer can make. Consumer are unaware that anytime a credit card company settles a debt for $600 less than their delinquent balance, by law the card company has to report that to the IRS. This is critical for the consumer to know because the IRS will eventually 1099C the consumer. The consumer will have to pay taxes on the credit charged off by the credit card company. This is capitalism and unfair at the same time. However, what can a person who is already struggling to pay their bills do to protect themselves? They can let the creditor charge the debts off as a tax lose. When this happens the debt can no longer be collected by the creditor.

Many credit card companies will still sell their charged off accounts to collection agencies for pennies on the dollar. The collection agencies will convince many consumers that, if they do not pay this debt, that it will ruin their credit. Many consumers are unaware that paying a delinquent or collection account will not improve their credit score significantly enough to help them acquire more credit. Consumers should always request a validation of debt from collection agencies with full documentation. Most collection agencies cannot provide this information and will send the consumer a screen shot of balance acquired from the original creditor. They will sometimes send the consumer an Affidavit of Destroyed Instrument. This simply means they do not have the original paperwork. The consumer should always respond with a Sworn Affidavit of Denial and file a complaint with the Better Business Bureaus forcing the collection agency to produce the original contract, which in most cases they cannot.

The reality of our credit driven society is that cash is king. Credit is the whip used for modern day slavery and social economic control. Until people demand a change within our political, educational and credit system, they will be force to live their life as intellectual and labor prostitutes for rich men as well as the corporations they lead.

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4 Smart Steps to Earn Money From Home

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If you wish to earn money from home, it is possible provided you take certain steps beforehand. Remember – there are numerous strategies and opportunities to earn. However, you need to make adjustments in your life in different arenas. This is very crucial as each strategy or opportunity has its unique approach.

Mentioned below are 4 smart steps to be successful in your endeavor:

Fix Your Schedule Appropriately

Yes, it is true that you are leading a hectic lifestyle. Nevertheless, opportunities just come once. If you fail to make the most of it, you end up earning nothing. To earn money from home you do not have to dedicate more than a few hours. Mere one or two hours of work is enough. Remember – you need to show dedication and sincerity. For instance, if you decide to earn from affiliate marketing, it is better to exhibit true professionalism. Similarly, if you wish to work as an online article writer, ensure to keep your commitment. It is only then that you can expect to have a list of happy clients.

Organize Your Space And Other Needed Items

You can work right from the sofa in your house and earn thousands. If you are working as a freelance copywriter, you will need things like a laptop/computer and an internet connection. Make sure your device is at right order before you start to work. Depending on the type of work and strategy you adopt, the kind of space needed will keep varying.

Develop Short Term And Long Term Goals

Answer this question – what do you wish to accomplish? These can broadly be classified as short term and long term goals. Depending up on your goals, the strategies needed keep changing. Ideally, you ought to have mile markers as these keep you motivated. Here, the main question is not what your ability to do when it comes to your idea. More than that, it is what you yearn to achieve during your attempt. Evaluating your strategies at regular intervals to identify what is really working or simply figure out what’s not working. In this way you can ditch or modify the later altogether.

Institute Your Own Reward System

Irrespective of how small or big your goals are, make sure to reward yourself when you actually achieve something you have been striving for. The reward does not necessarily have to be expensive in nature. For instance, you can give a visit to your preferred shop at the mall. This small effort will keep you motivated to accomplish your next goal to earn money from home. At times your reward in the form of paycheck reaches you in months. Similarly, it takes less time at other times. The entire journey remains flooded with obstacles. Therefore, rewarding yourself gives you a pleasurable experience.

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