Quote for the day

"The aim of the wise is not to secure pleasure, but to avoid pain." - Aristotle

Quote for the day

"If you don't concentrate on what you are doing then the thing that you are doing is not what you are thinking." - Alfred Tennyson

C.R.E.A.T.E. your trading goals

Do you currently set goals for successful day trading or in fact for any type of trading?

How is that working out for you?

It is all very well setting goals but you need to make sure that you have some parameters around how you set your goals, in order for them to work for you.

As a trader you will want to have a trading plan and also goals that will come from working that plan. These will include financial and education goals around your trading and it is also a good idea to put in your personal, fitness and relationship goals as these have a huge bearing on your success as a trader. The better you are holistically, the better trader you become.

Following is a proven model for successful goal setting:

1. Concise - ensure that your goal statement is simple and easy for both your conscious and unconscious mind to understand and then act upon.

2. Realistic - when a goal is relatively easy for you to accept and is not too much of a leap from where you are currently, the unconscious mind can work with that and start having you put things in order for this to become a reality. E.g. If you are currently losing money in the market, it could be too big a jump for your unconscious mind if your first financial target goal was to make $1 million in the next 6 weeks. It could be far more effective to set this at $10,000.

3. Ecological - the execution of all goals needs to be safe to yourself and safe for others. This is just a step to ensure that what needs to happen does not include any possible harm coming to yourself, any other person, animal or the planet. I think you get the picture.

4. As now - always have your goal stated as if you have already achieved it. Nothing is more powerful for your unconscious mind than to have every part of you feel that the achieving of this goal has already happened.

5. Timed and toward what you want - attach a time frame to your goal statement. Think about a realistic time frame that you can expect to work with this goal and always make the statement towards what you want not away from what you don't want. You will see in the following goal statement example how to best do this.

6. End Step/Evidence - you will need to ask yourself ' What will I be doing when I have achieved this goal that will mean I KNOW that it has happened?' What do you have to see, hear or feel in order to know?

So, get busy and C.R.E.A.T.E. your trading goals from the process above

Edited Article Source: http://EzineArticles.com

Quote for the day

"Whoever is careless with the truth in small matters cannot be trusted with important matters." -  Albert Einstein

Quote for the day

"You never know how strong you are until being strong is the only choice you have." - Cayla Mills

Quote for the day

"Don't tell your problems to people: eighty percent don't care; and the other twenty percent are glad you have them." - Lou Holtz

Quote for the day

"Who makes quick use of the moment is a genius of prudence." - Johann Kaspar Lavater

Quote for the day

"Genius always gives its best at first; prudence, at last." - Lucius Annaeus Seneca

Quote for the day

"What the mind doesn't understand, it worships or fears." - Alice Walker

Quote for the day

"He knows nothing; and he thinks he knows everything. That points clearly to a political career." - George Bernard Shaw

Richest People in the World 2022

By Steve Burns

Here are the current richest people in the world in 2022. Looking at this list it is clear that founding and building a business while keeping a large amount of equity ownership in the company is the path to world class wealth. Nothing creates net worth on a larger scale than the leverage of building a business that can be taken public. 

Surprising that no one is on the top 20 list through real estate investments, as it does not create the same level of opportunity of scale. Steve Balmer is the only employee on this list as he was able to use his position as Microsoft employee #30 and CEO to get a large amount of equity in Microsoft early in its growth cycle. 

Other members of this list were founders or children of the founders of major corporations excluding Warren Buffett who took over Berkshire-Hathaway and turned it into an insurance holding company and conglomerate. 

We all have the opportunity to invest in and trade the stocks of the public companies that these capitalists founded and grew to create their own large net worth.

1. Elon Musk $255.9 Billion, Paypal, SpaceX, Tesla Founder, USA

2. Bernard Arnault & family $191.7 Billion, Louis Vuitton Chairman and CEO, France

3. Jeff Bezos $182.2 Billion, Amazon Founder, USA

4. Bill Gates $133.3 Billion, Microsoft Founder, USA

5. Larry Page $116.0 Billion, Co-founder of Google, USA

6. Larry Ellison $114.6 Billion, Oracle Founder, USA

7. Warren Buffett $114.0 Billion, Berkshire Hathaway Chairman and CEO, USA

8. Mark Zuckerberg $113.3 Billion, Facebook Founder, USA

9. Sergey Brin $111.9 Billion, Co-founder of Google, USA

10. Steve Ballmer $96.7 Billion, Former CEO of Microsoft, USA

11. Mukesh Ambani $95.3 Billion, Father founded Reliance Industries, India

12. Gautam Adani & family $92.5 Billion Infrastructure tycoon controls Mundra Port, India’s largest.

13. Francoise Bettencourt Meyers & family $84.9 Billion, Granddaughter of L’Oreal’s founder, France

14. Carlos Slim Helu & family $81.0 Billion, controls America Movil, Mexico

15. Amancio Ortega $74.9 Billion, Founder of Zara fashion chain, Spain

16. Zhong Shanshan $71.5 Billion, chairs Nongfu Spring Water, controls Beijing Wantai Biological Pharmacy, China

17. Michael Bloomberg $70.0 Billion, cofounded Bloomberg LP in 1981, USA

18. Jim Walton $66.9 Billion, Father founded Wal*Mart, USA

19. Alice Walton $66.0 Billion, Father founded Wal*Mart, USA

20. Rob Walton $65.7 Billion, Father founded Wal*Mart, USA

Source: www.newtraderu.com

Quote for the day

"Whoever tries to imagine perfection simply reveals his own emptiness." - George Orwell

Quote for the day

"Patience, persistence, and perspiration make an unbeatable combination for success." - Napoleon Hill

Quote for the day

"No man is your enemy, no man is your friend, every man is your teacher." - Florence Scovel Shinn

Quote for the day

"Strength and growth come only through continuous effort and struggle." - Napoleon Hill

Quote for the day

"Mistakes are the growing pains of wisdom." - William George Jordan

3 Different Investor types – Which is Best?

By Raviraj Parekh

Last Sunday I have visited my friend and we had discussion about Investments and Investors. Our discussion points were –

• How different type of people does investment and what are investor types?
• Why only few investors make more money than other?
• What it takes to be a true investor?

Well after long debate we could make out three different investor types.

Different Investor Types

Type-3 investor

Type -3 Investors are not financially educated or sound in terms of finance. They often seek advice from friend, relatives for investment. These investors are from usually job oriented mindset and they make investment from retirement & money saving prospective.

They don’t know much about investment & finance and they have to rely on the advice of so-called experts.

What do you think Type-3 Investor can become financially free ever?

Type-2 investor

Type-2 Investor are bit aggressive they take interest in finance and often ask question before doing investments. These questions are like:-

• Where do you think I should invest my money in?
• Do you advice to buy real estate?
• I have few share of XYZ company should I sell them?
• Which stock I should buy for 5 year prospective?
• Everyone advice to diversify portfolio what do you think?

Type-2 Investor take advice from professional experts or domain expert before making investment.Type-2 investor should interview several tax advisor, financial planners, stock brokers and real estate experts before deciding anything. Type -2 investors must see that investment advice is genuine and not given only to earn commission.

High income employees and self-employees fall in this category because they have less time to look for good investment opportunity.

Type-1 investors

Type -1 investor’s opportunist they are always looking for good investment opportunity. Types -1 Investor are smart and they know every aspect of investment and asset class. Examples of type -1 investors are ‘Rakesh Jhunjhunwala’ or ‘Warren Buffet’.

Type -1 investor are very good at number. They do lot of research before making investment. Type -1 Investor are very successful in terms of investments.

What type of investor are you?

• In order to know what type of investor you are you have to ask simple question.
• Do I have full knowledge about asset class where I am investing money?

My investment decisions are based on what?

If you do not carry enough knowledge about finance and often take advice from friends and relatives you are in Type-3 investor.

While doing investment if you take advice from financial planners, stock broker or any professional experts than you can consider yourself as Type-2 Investor.

If you are independent in terms of doing investment after gathering advice from expert & after carrying proper analysis and study you are Type -1 Investor.

Of course you need lot of financial education and network of financial expert in order to become Type-1 and Type-2 Investor. You should start working in that direction become financially independent.
www.moneyexcel.com

Quote for the day

"It's easy to have principles when you're rich. The important thing is to have principles when you're poor." - Ray Kroc

Quote for the day

"Power really is a test of character. In the hands of a person of integrity, it is of tremendous benefit; in the hands of a tyrant, it causes terrible destruction." -  John Maxwell

Quote for the day

"We must adjust to changing times and still hold to unchanging principles." -  Jimmy Carter

Think Like a Billionaire: How to Get Rich Even If You Don't Have Much Now

By Jenny Marchal

Have you ever wondered why some people are rich and some poor? You may think it’s the luck of the draw – the family you were born into, the country you live in, the abundance or lack of good jobs. Yes, these can be factors, but the difference between being rich or poor primarily boils down to one thing.

Are you continually poor and struggling to find enough money, looking at rich people and finding it unfair? Or even someone with a good amount of money and wondering why some people struggle to get the money they want when you find it quite easy?

Abundance Mindset vs. Lack Mindset: the Strong Predictor of Your Future Wealth

Instead of blaming conditions and circumstances as to why some people are rich and some people are poor, consider your state of mind – or rather what type of mindset you have.

Our beliefs are very powerful and can steer our lives in the direction of what we firmly think about. If all you’ve experienced is being poor, then you are likely to continue to have a belief that you will remain poor. On the other end of the spectrum, if you’ve always been rich, you’re more likely to have a belief that you will stay being rich.

It’s all about whether you have an abundance mindset or a lack mindset but what are the differences between these two powerful mindsets when it comes to our money situation?

10 Key Differences In Behaviour and Mindset Between Rich and Poor

Here I’ll discuss the key differences between an abundance mindset and a lack mindset and how this affects your success with money.

1. Skepticism vs. Trust

Poor people tend to have a more skeptical view of things. They have a belief that people are out to get their money or rip them off. Do you find you constantly think “I’m not paying that much!” believing that a company is being greedy by pricing something that high? This mindset is coming from a space of lack – lack of money and grudgingly parting with what ‘little’ you have. The focus is primarily on lack.

Rich people are more likely to have a more trusting viewpoint on many subjects. They are more trusting of people, non-skeptical of people’s motives and parting with money. Yes, this is easy if you have more money, but it’s down to the abundance mindset and not focusing on losing something but rather gaining regarding what you’re buying.

2. Problems vs. Solutions

Poor people generally have a negative mindset when it comes to all areas of life – not just money. They look for the problems rather than the solutions and use these to blame for their circumstances e.g. where they live, the government, not enough jobs, or just other people and their actions. Excuses about why they’re not successful i.e. creating problems, not solutions, is a common mindset.

Rich people, even if they grow up with negative circumstances, are more likely to see it as a chance to take responsibility and do something about it. They accept that life throws obstacles in the way but it’s up to them to find a solution and not turn it into a reason not to succeed.

3. ‘They’ vs. ‘We’ Mentality

When working in a job, poor people are more likely to separate themselves from the job or company they work for. Creating a ‘them and us’ perspective means you’re essentially not taking responsibility for your role and your role in the company as a whole. When a complaint arises that a service is taking too long, it’s easy to say “it’s because they don’t employ enough staff” being quick to blame and separate from responsibility.

When you have a ‘we’ mentality in a job role, you are showing investment and commitment. It’s about showing your belief in something or someone which spreads trust and investment from others. Would you rather give a tip to a waiter who apologized on behalf of the restaurant or someone separating themselves from the problem who began pushing the blame onto the middle-management?

4. Assumptions vs. Questions

Making assumptions can be very harmful and keep you in a lacking state of mind. Poor people are more likely to give up because of these assumptions e.g. thinking “I doubt there are going to be any good jobs in this area, so there’s no point in looking” is immediately cutting yourself off from possible opportunities. Lack of questioning and research keeps you in the same poor situations.

On the other hand, the habit of questioning will give you more opportunity to succeed. Thinking ‘what if’ is very common in people who are rich and successful – “what if I ask around about possible jobs?”, “what if I just send an email to the recruiting department in case they have an opening?”. They see possible potential in everything rather than shutting it down with negative assumptions.

5. Money Importance vs. Time Importance

Poor people will believe their life will ultimately be better if they work more hours for more money. But they are trading precious time they’ll never get back for a few extra dollars. Their focus is more on lack of money and having to compensate through extra work rather than focusing on the quality of time they have.

Rich people are more likely to focus on the importance of time over money. They see experiences as important to their quality of life and worry less about earning that extra paycheck. Their jobs are more centred around enjoyment of what they do rather than focusing primarily on the money they’re earning.

6. Criticising vs. Gratitude

Complaining and criticising is a common trait in the mindset of someone who’s poor. This has most likely come from embedded beliefs passed down from generations – seeing the majority of things as wrong rather than right. They are more likely to see things from a negative perspective rather than a positive one.

An attitude of gratitude is a healthy mindset that promotes abundance. Counting your blessings and not taking anything for granted brings more of what you appreciate into your life – including money. This is a common mindset of successful people in all areas of their life.

7. Competition vs. Creation

Poor people are more in competition. This means they see what other people are doing and emulate them. The problem with this is that they never think of a different way of doing something, creating the lack of growth and outside-the-box thinking that brings success.

Successful people see themselves as able to accomplish without comparison or competition with others. They look for different ways of doing and achieving a goal rather than follow what others are doing. This means they are less likely to cut themselves off from getting what they need.

8. Amateur Advice vs. Expert Advice

Seeking advice to help yourself is a good thing, but people who are unsuccessful tend to take free or cheap advice from unqualified peers at face value and rarely question or challenge it. The downfall of this is, they’re completely trusting what could be wrong or unhelpful advice meaning it could lead them down the wrong path.

Rich or successful people are likely to seek out expert advice and aren’t afraid to spend money on getting the best there is if it means gaining more success. Expert advice means a thorough, wider variety of options and is seen as more of an investment rather than an expense if it means being on the road to achieving success.

9. The Cheapest Way vs. The Best Way

Similar to the above point, poor people have a mindset of always trying to find the cheapest deal. Take buying clothes as an example – always heading to the cheap, bargain section and buying a few items may seem like you’re saving money but most of the time you may not even end up wearing the clothes. Making these decisions from a mindset of lack can end up costing you more.

Rich people will invest more and make more conscious decisions about what they’re buying – not necessarily for the cost but the longevity and investment in what they’re buying. They will more likely buy an expensive item of clothing knowing it will get good use than waste money on deals.

10. Distraction vs. Thinking

People who spend a lot of time being distracted by watching TV or other forms of digital entertainment are taking away their time to invest in growth and critical thinking that could lead to becoming more successful. They are less likely to read books or enrol into courses opting to find distraction instead.

The abundance mindset is shaped by little distraction and rather by getting involved in activities that better yourself and help you see different perspectives. Knowledge is power and taking control to understand yourself, your abilities and your capabilities rather than get distracted will give you more opportunity to develop the abundance mindset and gain success.

So, it doesn’t matter where you’re starting regarding the amount of money you have; it’s about your attitude and mindset. A mindset and perspective of lack will only bring you more of the same so why not turn that around? Get into the habit of thinking from a space of abundance and see how it changes, not just your money situation, but your life as a whole.

Source: www.lifehack.org

Quote for the day

"It takes something more than intelligence to act intelligently." - Fyodor Dostoyevsky

Quote for the day

"A smart man makes a mistake, learns from it, and never makes that mistake again. But a wise man finds a smart man and learns from him how to avoid the mistake altogether." - Roy H. Williams.

Quote for the day

"Intelligence is not to make no mistakes, but quickly to see how to make them good." - Bertolt Brecht

Quote for the day

"Action is the real measure of intelligence." - Napoleon Hill

Quote for the day

"But investing isn’t about beating others at their game. It’s about controlling yourself at your own game." - Benjamin Graham

7 dirty words of trading.

Be careful how you use the following words and phrases as they become road blocks or worse take you down the wrong path.

Should - Phrases include: “The market should have” and “I should have”. Those phrases are often used to socialize losses. They are a strong signal something is off. They should be used to aid you in correcting your vision not make you feel better.

Must - Phrases include: “The market must…”, “I must make money”, or “I must trade”. The market does not have to do anything and either do you. When you use the word “must” it is hardly ever from a position of strength. The market knows when you are desperate and will take full advantage of you. Keeping your expenses as low as possible will make it easier to not make those statements.

Will - Phrases include: “The market will..” and “I will make money”. Once again the market does not like to be told what to do. It is the bratty kid screaming at the tops of his lungs. The word “will” relaxes your mind, similar to “should”, people use it to be lazy instead of a black background in an otherwise light picture. You can do everything right and still lose money. That is why trading is so effective at diminishing confidence. In most every activity, if you do everything right you are going to get the desired result. Doing the “right” things is bare minimum. Of course, over time you will get paid for doing the right things but it is never when you think it should be and hardly how much you anticipated.

Won't - Phrases include: “The market won't…” or “I won't make money”. Notice a theme here? You are part of the market, you are not the market. Not getting what you expect, even if it is positive, confuses the brain. If you expect to lose and don’t it is still a bad outcome. The market is a one way walkie talkie, you listen, it talks.

Can't - Phrases include: “The market can't..” or “I can't…” or “I can't lose anymore”. Yes the market can, go look at a chart. Go look at a Fed day or about any chart from 2008. Not only can it happen, it does happen. There are no more once in a lifetime moves in the market. There are and always have been life changing moves. No one ever said trading was easy but at least in the case of futures someone is taking your money. If you think you can't, you probably wont. The market will take every penny you have. If can take every penny you put at risk. Fix the problem, when you run out of money it is too late.

Impossible - Phrase includes: “It is impossible to make money”. Once again someone, somewhere is making money. It may not end up being an efficient use of your time or capital but it is possible. You are substituting an excuse for execution.

Sense - Phrase includes: “The market does not make sense”. Many fortunes are made in an illogical market. Logic is a bigger driver than risk controls for most people. It is easier to ignore your P/L when you can see or touch the catalysis. For example, it is cold buy natural gas. By the time you change your view or are forced to change, the market flips. Logic will eventually prevail, with or without you.
Source: http://traderhabits.com/

Quote for the day

"Investors should purchase stocks like they purchase groceries, not like they purchase perfume." - Ben Graham

A Trader's Journey to Profitability

Quote for the day

"Moral authority comes from following universal and timeless principles like honesty, integrity, and treating people with respect." – Stephen Covey

Quote for the day

"You don’t need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ." -  Warren Buffett

Quote for the day

"Investors should remember that excitement and expenses are their enemies." - Warren Buffett

Quote for the day

"Successful investing takes time, discipline, and patience. No matter how great the talent or effort, some things just take time: You can’t produce a baby in one month by getting nine women pregnant." - Warren Buffett

Quote for the day

"There is no such thing as overnight success or easy money. If you fail, do not be discouraged; try again. When you do well, do not change your ways. Success is not just good luck: it is a combination of hard work, good credit standing, opportunity, readiness, and timing. Success will not last if you do not take care of it." - Henry Sy

Quote for the day

"The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading… I know this will sound like a cliche, but the single most important reason that people lose money in the financial markets is that they don’t cut their losses short." – Victor Sperandeo

The Graham Number

The Graham number or Benjamin Graham number is a figure used in securities investing that measures a stock's so-called fair value. Named after Benjamin Graham, the founder of value investing, the Graham Number can be calculated as follows:



Alternative calculation
Earnings per share is calculated by dividing net income by shares outstanding. Book value is another way of saying shareholders' equity. Therefore, book value per share is calculated by dividing equity by shares outstanding. Consequently, the formula for the Graham number can also be written as follows:




This is one of the ways to estimate the intrinsic value of business based on their book value and their earnings power.

Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.

In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.

Graham value is applicable only to the companies that have positive earnings and positive tangible book value.

The final number is, theoretically, the maximum price that a defensive investor should pay for the given stock.Put another way, a stock priced below the Graham Number would be considered a good value, if it also meet a number of other criteria.

The complete Graham selection procedure is much more elaborate. No decision should be made based on this number alone.

When applying any of those valuation methods, you need to be aware of their limitations. Please keep these in mind:

1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.

2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.

3. Graham Numbers underestimates companies that are light with book.

Source: Edited articles from Wikipedia and http://www.forbes.com

Quote for the day

"The only true test of whether a stock is “cheap” or “high” is not its current price in relation to some former price, no matter how accustomed we may have become to that former price, but whether the company’s fundamentals are significantly more or less favorable than the current financial-community appraisal of that stock." – Philip Fisher