There are some rules that you should follow, in order to not ‘Gambling’ but ‘Investing’ in the market.
- Spend and Invest your money wisely
- You need to know your enemy
- 5 main principles to invest smartly
- Forex Copy and Portfolio Automated Trading
- 3 Rules you should follow to make profit on Forex trading
Spend and Invest your money wisely
Have you noticed that a lot of people are low on money these days?
They change jobs or switch to other sources of income. They might start a new business or learn a new trade.
However, fundamentally, the situation remains the same – they still don’t have enough cash.
For example, a student receives a scholarship, it is small and only covers the essentials.
Later, they find their first job, their income grows, but they still experience financial difficulties.
Ten years later, they become the head of a department or start their own business, but still feel short on money.
Do you want to know why? The problem lies in the lack of foresight with their expenditures.
Today, we’re going to talk about the proper way of managing your finances.
How many times have you been in this situation: You come into a big mall, shop around for a few hours and then, all of a sudden, you realize you’ve got no money left.
You bought some new clothes, had a meal at a restaurant, went to the movies, bought a new skin care product.
At the end of the day, you come home with a small bag of useless trinkets.
All money is gone, but not a whole lot has been bought.
Now, let’s talk about the ways how to spend your money smart and not feel regretful for one dollar of it.
You need to know your enemy
Your wants and whims are the main adversaries to your wallet.
This should not come as a surprise.
A very few people can afford to live their dreams, while most people are forced to spend their days working nine-to-five jobs.
We are always in the same rut day after day, so that shopping becomes the only highlight of our week.
New sweater, a lipstick, new digital gadget – all these things bring diversity into our lives and serve as a cure of sorts, although quite fleeting.
The very next day, our excitement fades away and soon you need to shop again.
Another serious enemy is the desire to save time.
Buying time is not cheap and only people whose time is most expensive can afford it.
Here is an example for you: Let’s assume you are a stay at home wife.
Your family has an average income, however you are going to a get a manicure for €50, while the most expensive nail polish runs at only €30 and lasts a lot longer.
Further on, instead of cooking at home, you prefer to go out to eat to a restaurant.
Of course, these expenses end up taking toll on your budget.
People get used to this lazy lifestyle and can’t even think of living without these vanities.
A far better way would be to invest your funds into something that’s going to bring a yield, even if you might have to restrict yourself temporarily.
Our attempts to buy time are very short-lived.
In fact they are nothing but weakness resulting from our desire to feel accepted.
Admit it, all this information makes you wonder how to better manage your funds.
5 main principles to invest smartly
Now, let’s review the main principles that’ll help you to spend money more wisely:
- Cheap things are deceptive
- Don’t let cheap things tempt you. Think of how many times you felt disappointed after a cheap newly bought item broke the very first day. Remember: there’s no such thing as a free lunch.
- It’s better to buy in bulk
- Wealthy people know very well to buy wholesale. Why, you ask, would you need a 100 pots? This problem has been resolved long ago in the modern world. Today, one can find many people in social networks who want to buy something in bulk. People create various groups and look for their buyers. In the end, everyone wins.
- Buy things out of season
- A common fact: it’s cheaper to buy fur coats in the summer and bikinis in the winter. The same principle applies to a lot of other things too: Shoes, home supplies (heaters, fans), etc.
- Ask for a discount
- Politely ask for a discount. It never hurts to ask. Do you feel embarrassed? Affluent people beg to differ.
- Let go of the excess
- Don’t buy anything that you don’t need and don’t give into your weaknesses. Be the master of your life.
Forex Copy and Portfolio Automated Trading
Many online Forex brokers offer you an excellent opportunity to invest in a smart way.
If you want your money to work for you, you need to invest it into something that’s worth your while.
The best solution for this purpose is investment in a structured product and high-return portfolios with a full or a partial capital protection.
Contact them today and find more interesting and useful information about the services.
Whatever the size, your finances require a responsible approach.
The experts of financial markets make it their goal to help people manage their finances and reach new heights on their way to financial freedom.
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3 Rules you should follow to make profit on Forex trading
Beginners of trading are probably in the most difficult situation among all the participants of Forex market.
Quite often they have to pay for mistakes which they make because they are not aware of all the details of trading.
That is why any beginner of trading might need some advice from experienced traders in order to get a better understanding of processes taking place in the currency market.
Suck kind of advice is always helpful if you take it seriously, it can be useful, prevent from unnecessary risks and consequently undesirable effects.
Trying not to lose rather than making profit
At first a beginner of trading should focus on the detailed study of 2-3 trading systems, a pair of technical indicators and gradually deepening knowledge try to develop an individual trading system in the currency market.
Making transactions to buy or sell some assets it is important to remember that the total amount used to open an initial position does not exceed 10% of the deposit.
It is necessary to keep away from transactions which can lead to the loss of more than 5% of the deposit.
The study of such instruments as «Take Profit» and «Stop Loss» can be quite efficient.
In this case one should move these instruments only in the direction of decreasing loss and increasing profit.
Although it is better not to be carried away by these movements as a sharp price bounce can easily take away a set Stop-Order which can lead to unplanned losses.
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Not Gambling But Investing
The development of the individual trading system is a necessary condition of success in the currency market trading and it should be taken by any trader for granted.
The system of trading should be as easy as possible and go with conditions of the currency market.
However, it is worth noting that success at trading with an individual Forex trading system is not always achieved by not only a lot of beginners but also experienced traders.
The main reason of failures is the lack of discipline among traders, the failure to take into account all the signals of the system, react correctly without losing time to open and close trading positions.
Poorly managed emotions, thirst for gambling, a wish to make quick money, fear can frequently destroy the trading system developed by the trader.
Gambling is possible only within reasonable limits as undue risk too often brings to ought not only all the previous profitable transactions but also leads to a complete loss of funds.
It is certainly important to come up with funds which a beginner brings to trading in the exchange market.
Here it is recommended to follow the advice:
- The amount of funds invested in trading should be within 50% out of the whole capital supposed to be used in Forex transactions.
- The amount of funds invested into one market should not be more that 10-15% from the capital dimension.
- The risk of one open position should not exceed 5% from the amount available on the deposit.
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