Sunday, July 18, 2010

Earn Your Way

Earn Your Way

Throughout my life like many others, I have been blessed with some things and some people. On the other hand I have had to work very hard for something and some relationships in my life.

Was it just handed to you?

We hear so many times in the news where some famous person left a huge inheritance or company to their child. We hear how this son or daughter spends the inheritance to impress others or enhance their lifestyle and within years they are so miserable and/or broke. We hear about how some individuals that win the lottery and think that now with money all their problems will be gone. On the contrary, their problems are now compounded to an extreme unimaginable and within a few years they have lost everything. They have lost most if not all their money, friends, family and freedom. In my opinion this happens because they did not earn their money and they never learned the power of earning your way.

Earning As Simple as a Coffee Mug

I was inspired just yesterday when I went to the mailbox and found a white box shoved in the back of the mailbox. This white box had me quite intrigued as there was no holiday coming up, and my birthday is months away. So I had no clue! I knew I hadn't ordered anything recently, but there still was this white box. I looked at the sender and it was from, a website that I continually submit articles. I went inside the house like a little kid to open up this box. Once I got it open I found there was a coffee mug and nice leather coaster. The mug and coaster both have verbiage stating my expert status and also a card was in the box stating how they felt about my valuable content I provided them. I had earned this status, something that I accomplished, a skill that I could teach others.

What the Mug Means to Me

While this is just a coffee mug, it has a different meaning to me than my other 20 coffee mugs. I earned it! I was dedicated up front to add valuable content to people's lives without expecting anything in return. All along I knew providing quality content to the world has the ability to inspire another or enhance their quality of life. You may be reading this and thinking, "Robert, it's a mug!" You couldn't be more right, but do you know the power of earning your way? In your life think of what you have earned: a diploma, a degree, an award, a position, your lifestyle, or even consider the relationship with your spouse and/or friends. Think of how you earned the respect of others. What did you have to endure to get to your goal?

The power of earning your way is one not to be forgotten or doubted. Earning you way leads to leadership, being able to help others in a way many can't. Earning your way comes with experiences, some good and some bad but experiences never the less. You cannot replace experience, it forms you and I to become the leaders we are. Earn your way. Help others. If you accept handouts, what does it teach you? If you learn, earn your way, and then teach others what does this accomplish? You are learning and giving back to humanity in a positive way. So in closing I have to say there is nothing better than Earning your Way.

Monday, July 12, 2010

Face the difficulties

”Failure is the step to success ” means a person who fails will succeed in life.Today we see many people committing suicide for getting for one or the other thing.They must not do so.If a person gets failed he must not lose hope and must make his mind strong and plan for the next achievement.So a person who gets failed in exams or in any other ways must think about the success and must not change the mind.But this does not mean that a person must get failed.

There are many personalities in the world who have come up after getting failed.We must take them as our role models and must not get depressed for getting failed.Remember,suicide is not the solution for every problem.Be happy for what god has given and enjoy it.Don't develop bad habits just for getting failed,instead develop good habits.Be positive ,you will surely succeed in life.Thank god for giving a precious gift to you and feel lucky to enjoy it .Every person thinks that others are happier than them.But it is not like that everyone will be having their own problem.If you get depressed for some reasons consult a counselor who will do the counseling to you.Some people develop bad habits like smoking, drinking ,taking drugs etc. just for getting failed or for some other reasons.So my suggestion or advice to all the youngsters of this society is don't feel sad for the problems you get in life and be strong to face it.Best of luck to all for your exciting future.

Tuesday, July 6, 2010

Investing Your Choice

Opportunity cost. We all face it everyday. Any decision that we are confronted with that presents two or more choices has an opportunity cost. It is the value of the next best alternative that is given up for choosing to do something else. Opportunity cost is the result of scarcity, which is when our wants outweigh our resources. Basically, humans do not have enough of everything to satisfy our every desire. Each individual has their own personal opportunity cost, which means each person can only determine for themselves the highest-ranked, next-best alternative that they had to sacrifice. However, not all alternatives are considered the opportunity cost. It is important to keep in mind that opportunity cost can only include the next best thing that is given up, not everything that is forgone by making a choice.

An example where opportunity cost comes into play is the idea of investing. For example, an employee receives an annual bonus of $10,000 and cannot decide between depositing it into a checking account, or investing it. The reason why he wants to invest it is the possibility of earning interest and making money on it. After much thought, he decides to deposit it into his checking account, a more liquid asset, so that he has more accessibility to it. Therefore, the opportunity cost of him depositing it into his checking account is the act of investing it and the interest he would have earned if it were invested in the stock market. Because the employee chose to put the $10,000 into his checking account rather than invest it, he gave up his next best alternative of investment of the money, and the chance to earn more.

Another example of opportunity cost being seen in the financial industry is if a person were to decide to sell a stock for $10,000 instead of waiting to sell it for a chance of earning more money. Nonetheless, if he were to wait, the cost of the stock could also decrease, thus causing him to not earn as much money on the sale. The investor has a decision to make; sell the stock now for $10,000 or wait two months and take the chance of being able to sell it for say, $12,000. Since we do not know what will happen if the investor were to wait to sell the stock, the opportunity cost in this case can only be determined in hindsight.

Lastly, opportunity cost can also appear in the difference of returns between two stocks. Let's say an investor is deciding between two funds to invest in and he has the choice between "Stock ABC" and "Stock XYZ". He chooses "Stock XYZ". Let's also say that "Stock ABC" had an annual return of 6% at the end of 2009, and "Stock XYZ" had an annual return of 4% at the end of 2009. Since the investor gave up the opportunity of another investment ("Stock ABC") by investing in "Stock XYZ", the opportunity cost of not investing in "Stock ABC" would be 2%.

An investor is always faced with decisions, and with these decisions come choices that must be made and render opportunity cost. Whether it be if they are making a choice about where to put their money, what to do with their money once it is invested, or more specifically, what investment options to choose, there are always decisions that must be made in the financial industry. Once these decisions are made, the opportunity cost of the next best choice always shows its face.

When broken down into its simplest form, opportunity cost can be understood quite easily. Every choice you make to do something requires that you give up something else in return. In most cases, you are giving up more than one thing. Opportunity cost is the most highly-valued thing you are giving up to engage in the decision of your choice. It comes down to wants; what a person wants more from a situation. And because of the idea of scarcity mentioned earlier, our wants have always and will always outweigh our resources, causing opportunity cost. The bottom line is each day we are faced with decisions in which we must make choices, and opportunity cost will always be present as a result in every choice we make.

Defining Profitability

There are some fundamental principles of how to define a possibly profitable trade, i.e. to find a good trading opportunity. Some of these criteria include low levels of risk involvement, high degree of possible profitability and fitness to trading plans. All these aspects should be admitted by the trader even before he enters the financial market. The best combination of these factors is the main rule of money management in Forex exchange market. Let us speak in details about each factor.

The first thing to remember is that every trade involves certain degree of risk (unless you trade demo). This criterion is individual for each trader and the decision should be grounded on the amount of capital he possesses. Every trader should trade using the money he can afford to lose.

The degree of risk should be calculated for each separate trade. Analyzing the risk, a trader may estimate the divine proportion between the level of risk and possible profitability. The best combination of these two parameters provides the best trading results, as many experienced traders say. An in depth analysis of profitability involves evaluation of possible level of risk, estimating potential profit, probability of success, time for implementation of a transaction. Only if a trader has got clear view towards all of these criteria, he should engage into currency trading.

Keep in mind time criterion

Risk is always treated as an integral part of profitability, but concluding a transaction when risk exceeds profitability is a serious mistake. The main principle of risk management is that the best trading opportunities are those providing high profitability with low risk. Evaluation of time is also important as time restrictions may affect trader`s activity. For example, if a trader is not capable to monitor his screen for the whole day, intraday trading would not fit him. If he has no time to follow and control the trades, the degree of possible losses increases dramatically. The best trading opportunities should fit trader`s time criteria.

When a trader assumes the outcome, the position is viewed as a simple instruction to act and if a trader has no understanding of characteristics of the trade, it is better to stay away from trading. Tracing the history of trades is also useful, however, every trade is unique and should fit individual characteristics of a trader in order to attain success in the long run.

Investment requirements

Besides, every trade is supposed to fit investment requirements of traders. This definitely would vary from one trader to another one. Everyone wants to make money, however, risk should be estimated. Traders are advised to choose the most appropriate period of time for trading as well as regularity of conducting trades.

Unless a trader completely assumes what he is doing he is required to start with small portions. Fractional lots would not bring high profit, but they would help you eliminate the risk of being swept away from the market.

Keep in mind these principles as they will help you become a more successful trader. Never let profitable trades hamper your further considerations. Only one possible mistake may spoil your trading result. Each trader ought to start form small portions and let your account grow.