Day: August 20, 2023

Stock Options Trading Millionaire PrinciplesStock Options Trading Millionaire Principles

August 20, 2023August 20, 2023| LamontLamont| 0 Comment| 12:05 am

Stock Options Trading Millionaire Principles

Having actually been trading stocks and options in the capital markets professionally over the years, I have seen many ups and downs.

I have actually seen paupers become millionaires over night …

And

I have seen millionaires become paupers overnight …

One story told to me by my mentor is still etched in my mind:

"Once, there were two Wall Street stock exchange multi-millionaires. Both were very successful and decided to share their insights with others by selling their stock market projections in newsletters. Each charged US$ 10,000 for their viewpoints. One trader was so curious to understand their views that he spent all of his $20,000 savings to purchase both their opinions. His pals were naturally excited about what the two masters needed to state about the stock exchange`s direction. When they asked their friend, he was fuming mad. Baffled, they asked their buddy about his anger. He stated, `One stated BULLISH and the other stated BEARISH!`."

The point of this illustration is that it was the trader who was wrong. In today`s stock and choice market, people can have different viewpoints of future market instructions and still profit. The differences lay in the stock selecting or choices strategy and in the mental attitude and discipline one uses in carrying out that method.

I share here the basic stock and choice trading concepts I follow. By holding these concepts strongly in your mind, they will assist you regularly to success. These concepts will assist you decrease your danger and enable you to assess both what you are doing right and what you might be doing wrong.

You may have read ideas comparable to these before. I and others use them because they work. And if you memorize and review these principles, your mind can utilize them to guide you in your stock and options trading.

CONCEPT 1.

SIMPLENESS IS PROFICIENCY.
Wendy Kirkland
I learned this from Wendy Kirkland, When you feel that the stock and alternatives trading approach that you are following is too complicated even for basic understanding, it is most likely not the very best.

In all aspects of effective stock and alternatives trading, the easiest techniques typically emerge victorious. In the heat of a trade, it is easy for our brains to end up being mentally overloaded. If we have a complex strategy, we can not keep up with the action. Simpler is much better.

PRINCIPLE 2.

NO ONE IS GOAL ENOUGH.

If you feel that you have absolute control over your feelings and can be unbiased in the heat of a stock or options trade, you are either an unsafe types or you are an inexperienced trader.

No trader can be absolutely objective, especially when market action is unusual or extremely unpredictable. Similar to the ideal storm can still shake the nerves of the most skilled sailors, the best stock market storm can still unnerve and sink a trader extremely quickly. For that reason, one must strive to automate as many important aspects of your method as possible, particularly your profit-taking and stop-loss points.

CONCEPT 3.

HOLD ON TO YOUR GAINS AND CUT YOUR LOSSES.

This is the most essential principle.

Many stock and choices traders do the opposite …

They hold on to their losses way too long and watch their equity sink and sink and sink, or they get out of their gains too soon just to see the price increase and up and up. Gradually, their gains never cover their losses.

This concept takes some time to master correctly. Contemplate this principle and examine your past stock and options trades. If you have been undisciplined, you will see its fact.

CONCEPT 4.

HESITATE TO LOSE MONEY.

Are you like a lot of newbies who can`t wait to leap right into the stock and choices market with your cash wanting to trade as soon as possible?

On this point, I have discovered that the majority of unprincipled traders are more scared of missing out on "the next big trade" than they are afraid of losing cash! The key here is STAY WITH YOUR TECHNIQUE! Take stock and options trades when your strategy signals to do so and avoid taking trades when the conditions are not fulfilled. Exit trades when your method says to do so and leave them alone when the exit conditions are not in place.

The point here is to be scared to discard your money because you traded needlessly and without following your stock and options method.

CONCEPT 5.

YOUR NEXT TRADE COULD BE A LOSING TRADE.

Do you definitely think that your next stock or alternatives trade is going to be such a huge winner that you break your own finance guidelines and put in whatever you have? Do you remember what usually takes place after that? It isn`t quite, is it?

No matter how confident you may be when going into a trade, the stock and options market has a way of doing the unexpected. Therefore, always stick to your portfolio management system. Do not compound your awaited wins because you might end up intensifying your very genuine losses.

CONCEPT 6.

ASSESS YOUR EMOTIONAL CAPACITY BEFORE INCREASING CAPITAL OUTLAY.

You know by now how different paper trading and genuine stock and alternatives trading is, don`t you?

In the very same way, after you get used to trading real cash consistently, you find it very different when you increase your capital by 10 fold, don`t you?

What, then, is the distinction? The distinction is in the psychological concern that features the possibility of losing increasingly more genuine money. This occurs when you cross from paper trading to real trading and likewise when you increase your capital after some successes.

After a while, the majority of traders realize their optimal capability in both dollars and feeling. Are you comfortable trading approximately a few thousand or tens of thousands or hundreds of thousands? Know your capability before committing the funds.

CONCEPT 7.

YOU ARE A NEWBIE AT EVERY TRADE.

Ever seemed like a specialist after a couple of wins and then lose a lot on the next stock or choices trade?

Overconfidence and the false sense of invincibility based on previous wins is a dish for catastrophe. All specialists respect their next trade and go through all the appropriate steps of their stock or alternatives method before entry. Treat every trade as the first trade you have actually ever made in your life. Never ever deviate from your stock or choices method. Never.

CONCEPT 8.

YOU ARE YOUR FORMULA TO SUCCESS OR FAILURE.

Ever followed a successful stock or choices method only to stop working severely?

You are the one who determines whether a method is successful or fails. Your character and your discipline make or break the strategy that you utilize not vice versa. Like Robert Kiyosaki says, "The investor is the possession or the liability, not the financial investment."

Comprehending yourself initially will result in eventual success.

CONCEPT 9.

CONSISTENCY.

Have you ever altered your mind about how to implement a strategy? When you make changes day after day, you end up capturing nothing but the wind.

Stock market fluctuations have more variables than can be mathematically developed. By following a proven method, we are ensured that somebody successful has actually stacked the odds in our favour. When you evaluate both winning and losing trades, identify whether the entry, management, and exit satisfied every requirements in the method and whether you have followed it specifically prior to changing anything.

In conclusion …

I hope these easy standards that have led my ship of the harshest of seas and into the very best harvests of my life will assist you too. Best of luck.

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Deciphering the Secrets of Auto Lease: The Ins and Outs of Making a Down PaymentDeciphering the Secrets of Auto Lease: The Ins and Outs of Making a Down Payment

August 20, 2023August 20, 2023| Tammie JonesTammie Jones| 0 Comment| 12:00 am

Introduction: The Down Payment Conundrum

As you consider leasing a car, an essential choice you’ll need to make is whether to make a down payment, referred to as a ‘leasing special payment’. This first major payment can differ significantly and is an integral part of the leasing equation. But does it pay off? This article dives into the nuances and potential benefits of making a down payment when leasing a car. Additionally, we’ll delve into the drawbacks, and the various forms such a payment can take, to help you make an informed decision. Like here: this.

The Functioning

The leasing special payment is typically a percentage of the car’s new or acquisition price. It is not mandatory, but making this payment can dramatically reduce your monthly leasing rates. Importantly, the pre-set residual value of the leased vehicle stays the same by this payment, as do factors influencing depreciation.

Advantages from the Lessor’s Perspective

From the leasing company’s perspective, a down payment lowers their risk of payment default. This lowered risk can lead to lower leasing rates for the customer, as the company may decrease its risk premium in response to a substantial down payment.

The Structure of Down Payments in Leasing

Making a down payment of, say, 20% of a new car’s price can become a substantial sum, especially for luxury vehicles.

Dividing the Initial Cost

Some leasing companies allow—or you can negotiate—for the down payment to be split into two parts: one at contract signing and one at vehicle pickup. This can make the initial cost more feasible.

Using Your Old Car as a Down Payment

Another option is to use a trade-in vehicle as part or all of your down payment. But, be aware that the leasing company is likely to value your trade-in below its market price.

Tax Implications of the Leasing Special Payment

A leasing special payment isn’t just about lowering your monthly costs—it can also have fiscal advantages.

Business Perks: Tax Deductions for Companies and Self-Employed Individuals

For companies and freelancers using profit and loss accounting, the down payment, like the monthly leasing rates, can be considered as business expenses and thus reduce taxable Income. This is a significant advantage for businesses looking to save on taxes.

Tax Deductions for Employees

For employees using the leased car for work purposes, both the down payment and monthly rates may be tax-deductible, and this can lead to considerable savings. Maintaining detailed records to distinguish between private and professional use is critical in such cases.

Why a Down Payment Might Not Be Your Best Option

While there are advantages, making a down payment when leasing also has its drawbacks.

Tying Up Your Funds

Making a down payment ties up capital that could be used more effectively elsewhere. Alternatively, you might need to borrow this capital, which might lead to additional costs.

Leasing Without a Down Payment

Many leasing companies offer deals without a down payment, albeit at more substantial monthly rates due to the increased risk for the leasing company. Choosing this path can be more convenient for those who prefer not to tie up their capital.

Special Considerations for New Businesses and Individuals with Low Credit Scores

Leasing companies may initially exclude individuals with poor credit ratings or newly established companies. However, a significant down payment, often between 20-30% of the vehicle’s price, can make leasing possible due to reduced risk. This can be a game-changer for new businesses in need of a vehicle.

How to Bargain for Your Lease

When it comes to leasing a car, there is often room for negotiation.

Understanding What Can Be Negotiated

From the amount of the down payment to the wear and tear stipulations, there are various aspects of a lease that might be negotiable. Understanding your options is key to getting a deal that works in your favor.

The Importance of a Fair Deal

An equitable agreement is about not just reducing your monthly expense. It’s about making certain that you’re getting a fair deal for the use of the car over the lease term.

Conclusion: Weighing the Pros and Cons

Making a down payment when leasing a car can minimize your monthly payments and possibly yield tax benefits. However, it also involves tying up substantial capital and may not be necessary for all leasing agreements. Comprehending your Financial situation, negotiating with your leasing company, and considering alternatives like lease takeovers will help you make the wisest decision. Reminder: Tax laws and regulations can vary, so it’s important to consult with a financial advisor to understand the particular implications for your situation.

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