3 Tips for Successful Risk Management

Although the question of money management is seemingly straightforward, it has always been the most critical part of a trading plan. Before placing a trade, it’s important that traders consider exactly which risks are associated with that trade. In order to do this, some tough questions should be asked about risk totals, stop placements, and risk reward levels. In order to better tackle some of these common concerns, we have put together some tips for better, more successful risk management.

Plan Your Exit

More often than not, a good trader will have a clear idea of where, when and how to exit the market if a trade is moving in their favor. However, although it is always good to have a profit target in mind, it’s also crucial that traders prepare for leaving the market should a trade be moving against them. There are a variety of manners in which stop losses can be set, however they are more often than not coupled with an existing level of resistance and support.

Remember that a stop order is a point on the graph where your idea for trade is no longer considered valid. It may be time to consider exiting the trade if you currently have buy orders in place and price is making a lower low meaning that a key level of support is broken. In a downtrend, the opposite is true – a trader selling whilst prices are making a higher high may wish to look for another trading idea.

The 1% Rule

Once an exit strategy has been planned, traders must determine how much exactly they are prepared to risk per trade. It’s inevitable that a trade will close at a loss at one point, therefore it’s important to be sure on how much you are prepared to lose before this occurs. A great way of determining this is the 1% rule. Simply put, it means that traders should risk no more than 1% of their total balance on a trade idea.

The 1% rule is also able to be paired with a favorable risk reward ratio. For example in a 1:2 setting, risking 1% in the amount of a loss means that trades should be closed at a 2% profit at minimum.

Professional Risk Master Tools

A highly effective and recommended way to manage your trading risk is to use a professional risk master tool such as that provided by Broadridge IMS. Risk Master is a fully featured and flexible solution for risk management, which allows firms to mitigate risk intelligently across a portfolio or at the level of trade. It allows its clients to take control of their risk exposure to both counterparty and market risk, and facilitates better enterprise-wide decision making by allowing for quick action in response to any identified breaches of risk tolerance.

Do you have any tips for better risk management that you’d like to add to this list? Are you a successful trader who’d like to share your story? We’d love to hear from you in the comments.

How to Thrive As An International Businessman

The fundamental principles of business and business ownership remain largely unchanged throughout the world; meaning that someone who has been a successful entrepreneur in the UK should easily be able to replicate these achievements elsewhere. Practice is very different to theory, however, as there remain a number of practical requirements and obstacles that make thriving as an international businessman extremely challenging.

How to succeed as an International Businessman

With this in mind, what practical steps do you need to take in order to succeed as an international entrepreneur? Consider the following options: – 

Understand the different risks associated with International Business 

One of the first things to remember is that every country is different, both in terms of its financial law and political landscape. The latter can be particularly problematic for entrepreneurs, as threats such as political unrest and terrorism pose can undermine even the most organised of business ventures. While being aware of this is one thing, however, it is also important to take practical steps to resolve this by protecting your physical assets with reputable service providers like Catlin. These firms specialise in unique and tailored insurance policies, so they are pivotal resources for the international business-owner.

Become an Expert in Currency

Another key challenge facing business owners is international currency, which fluctuates on a daily basis and often forces entrepreneurs to make quick, real-time calculations. Understanding the mechanisms of international currency is crucial to minimising costs as an international businessman, and it is common practice for entrepreneurs of larger firms to stockpile currency while the rates are at their most favourable. Just make sure that you monitor real-time rates and create a clearly defined model for exchanging funds.

Operate with a Global Pool of Talent

The cost of acquiring and recruiting talent for an international firm can be extortionate, especially in a competitive marketplace. The main issue is the infrastructure required to source and employ staff, so successful international businessmen in the modern age tend to use remote working techniques and contracted employees to optimise a global talent pool. This helps to reduce infrastructure and annual salary costs, while also ensuring that you have a motivated team of staff that is employed on a project-to-project basis. This will also drive greater productivity and higher profit margins at the end of the year.

Can the Extremely Rich be Genuine Philanthropists?

Like so many principles of our modern world, the notion of philanthropy first appeared in ancient Greece when Prometheus was described as “humanity loving” in a play by Aeschylus. Prometheus’s philanthropic deeds included providing fire and blind hope to uncivilized humans. From this first mention right through to today, philanthropy has continued to expand in intent and contributions.

Why People Become Philanthropists

There isn’t any specific reason why people may the decision to become benefactors. It’s mostly likely they reach a stage in their life where they feel by giving back they can make their community a better place. Not all philanthropists give back in the form of money; some give time as a volunteer or use their reputation to set up a foundation. Mother Theresa is an example of someone who didn’t contribute huge sums of money, but has made a positive impact. The desire to help a particular cause may be the catalyst that initiated some to get involved. Whatever the reason, philanthropists have a shared belief that those with more should help those less fortunate.

Early Promoters of Philanthropy

In the 1700’s, Captain Thomas Coram established the Foundling Hospital in London, considered the first charitable organization in the world. Later that same century, Jonas Hanway, started The Marine Society. In 1901 philanthropy reached new heights when Henry Dunant and Gustave Moynier, founders of the International Committee of the Red Cross shared the first Nobel Peace Prize. Twentieth century focus crossed the Atlantic to include such humanitarian contributors as John Rockefeller, Henry Ford, and Andrew Carnegie.

Unprecedented Philanthropic Sponsors

Billionaire Warren Buffet began an extraordinary movement by pledging to use half of his fortune to support humanitarian causes. Several more like minded foundations have been set up or are set to benefit from huge contributions by other billionaires, such as Bill Gates, Bob Parsons, and Ted Turner. Pop star, Michael Jackson, set a record in the Guinness Book Of World Records for “Most Charities Supported By a Pop Star”.

Carnegie surpassed the pledges of today’s benefactors by using 90% of his wealth to fund philanthropic causes. For example, Carnegie Hall in New York City and Carnegie Mellon University were direct recipients of Carnegie’s generosity. Although not all philanthropists have vowed to distribute more than half their wealth, the expansive dollars they have used display their commitment to better the world for all are at least equal to the original gifts of Prometheus: improve human conditions and offer mankind hope.

5 Festival Insurance Tips

When organizing an event it is important to think ahead of the possible outcomes. Of course you would want everything to go as smoothly as it could, but there can always be some surprises. In those cases it is good to be covered.

You should be insured for any type of a festival that you are planning, whether it is a wedding, a gathering, a conference meeting, a concert, or something else. Many companies offer the best event insurance arrangements. Here we will consider five tips on insuring that the event goes through the best way possible.

Think ahead

You must assume all the possible negatives that could develop, and protect the event from suffering from them. If it is an open vendor festival, weather is the most important feature to consider. You should thoroughly check how the weather will be when the festival is about to play.

The food or the entertainment might be held up for some reason. The guests will be extremely disappointed and they will leave. Will you provide them refunds for the tickets they’ve bought? In case of a wedding, will you hope they stay for you, or will you provide another option for their benefit?

Insure early, consider the possible outcome, and evaluate the guest number. Only by doing these you can be sure that the event will go on as planned.

Ensure the gathering site

You must be aware of everything that you have at your disposal. Check the vendor for the festival, and make the necessary arrangements andwhetherthere should be any changes. You should have a prepared guest list that can help you with the arrangement of the tables, food, drinks, and/or stages.

Be clear on the insurance cover

The top priority in arranging any insurance is to make sure that you know what you are signing. Understand the policy instructions and the insurance fee, once you have decided how the festival will be insured.

Provide cover for incoming guests

Think about the guests that are coming from other cities or countries. Here you can consider their transportation issues. In case you provide cover for their charge, you should do so early. Or in cases where the guests choose to pay the trip on their own, you should insure them with the place where they will spend the night. Remember, that you are doing everything for the guests to be fully satisfied.

Insurance against cancelation

Cancellation is always the biggest fear of any event planner. However, they usually tend to hope that it will not have to come to cancellation, but they should pay more for a better line-up, better stage management or the lights. Still, what is all of this worth, if you end up not having the festival?Make sure that you have another, backup option for the event to happen because, if this is the first event you are planning, it will fail miserably. The best time to arrange any cover against cancellation is immediately after you have booked the vendor.

Visit http://besteventinsurance.com/ website to get more details and latest deals on festival insurance.

The Genesis of Mortgage Market Review and its Expected Impacts

The Mortgage Market Review (MMR) is a set of major reforms to the mortgage market set out by the financial services authority. These new mortgage market reviews are supposed to benefit all market participants by making the markets work better. The mortgage market review makes the financial services authority more interventional in its approach on matters of regulating the market. Some of the concerns that led to Mortgage market review include the conduct of business, charging and prudential requirements among others.

Where it all started

In October 2009, the financial services authority released a discussion paper concerning these requirements. The main purpose of these discussions was to have a deeper understanding of market analysis and assessing how effective the current regulatory framework was back then. This discussion led to various proposed changes in the mortgage markets. These proposals were under debate for a couple of years until release of the final policy statement of the Mortgage market review in October 2012. To know more visit our site www.conveyancing24-7.com.

New Mortgage Market review rules

  • The Affordability Statement: In every transaction, every broker or lender must ensure that borrowers meet eligibility criteria.
  • Income Verifications for all loans: Self-certification lending is no longer allowed in the mortgage market.
  • No Multiple High Risk lending: The Financial Services Authority recommended the banning of high value loans for individuals with bad credit and unstable incomes, which are all characteristics of high risk lending.
  • Interest rate stress tests: Lenders must conduct a mandatory interest rate stress test to determine what effect the mortgage payments will have on interest rate increase in the future.
  • Redefined definition of advice: In every consumer seller interaction, the seller will need to assess suitability, therefore non-advised sales banned.
  • The Execution-only exemption: The execution-only exception is to only be limited to situations where these is no interaction, customers not willing to take the advice and when the consumer has a net worth of £3M or earns nothing less than £300,000.
  • Mortgage advisers accountable to FSA: A relevant professional qualification worth a level three QFC certificate status is mandatory for all mortgage advisers and staff selling mortgages.
  • Initial disclosure document is replaced by a mandatory requirement for firms to give crucial information to the customer. This is to prevent overloading the customer with information. The initial disclosure document is replaced by a key facts illustration that is more suited to the customers understanding.

Desired Impact of the MMR

The mortgage market review rules were expected to make the mortgage markets suitable for all participants.

  • Lenders remain competitive and innovative with adequately capitalized sustainable business models.
  • A predictable and transparent regulatory body that minimizes the constant changes on house prices while minimizing fraud and financial crime in the market.
  • Keeping the costs and risks of lending in the mortgage market
  • A flexible market that offers a wide range of products for a variety of consumer types who can afford to buy homes.
  • A clear understanding of consumers to the risks and costs of mortgage borrowing or making property and investment option instead of a home

Looking forward your thoughts……

The Benefits of Buying Second Hand Cars

You can save a lot of money upfront when buying a used car, and in terms of the lifetime value of your investment there are various other benefits over buying new.

Used cars are great starter vehicles. They aren’t as expensive as buying new, so you don’t have to have a lot of money on hand to purchase one. But buying used also means that there isn’t as much loss to your investment when you put a scratch on the car or even get into a wreck.

Of course, it would be great if no one ever had a traffic accident, but new drivers are the most likely to make such mistakes and find themselves in an accident. It is much better to hone your driving skills on a used car than to end up putting a dent into something much more expensive.

When you buy used, you are also opening up your possibilities. There are lots more choices in the used car market than you would ever find from a new car dealer. You can purchase a model from decades ago or find a good price on something that came out recently. Even if your budget is pretty small, you still have a lot of options, and ultimately that can lead you to a more satisfied purchase.

You also get to have better information about the car you are buying. If the model you are purchasing has been out for a few years, then there are bound to be reports and reviews from other consumers. They can tell you what they went through with the car and what their experience was like.

By looking at the information available on a used car, you can get a good idea of what to expect and what problems you need to watch out for. New cars may still have some kinks to work out, and there may still be some manufacturing defects that have yet to be discovered.

You are also going to avoid a lot of depreciation when you buy used. New cars tend to depreciate very quickly, and they lose value as soon as you drive them off the lot. The older the car you buy though, the slower it will tend to depreciate.

Basically, if a car has been out for a few years already, then it isn’t likely to depreciate by much over the next few years. If you feel like selling it off to a  cash for cars  place after you have gotten some use out of it, you may be able to get back nearly as much as you spent. There is no way you would be able to do that with a new car.

Before you buy a used car, there are a few steps you should follow. By being safe and protecting your investment, you can make sure you aren’t being taken advantage of.

You’ll definitely want to be careful about a used car purchase, as there isn’t as much protection for you should anything go wrong with it.

3 Reasons to Use a Personal Loan in Toronto

Finding a way to get fast cash can get a person out of a lot of trouble. Choosing the right method of securing this type of money can be easier than one thinks. With all of the different methods of obtaining money out there, finding the right one will take some time and effort. The last thing anyone wants is to use a method of lending that will only get them in more debt. The best way to avoid this trap is by finding personal poor credit loans. Choosing a personal loan comes with a number of different benefits and here are a few of them.

The Benefit of a Fixed Payment Schedule

The first reason to choose a loan like this is that it comes with a fixed pay schedule. This means you will be able to budget yourself every month due to the structure of this loan. Being able to find out what you are paying and on what date each month can be very convenient. Be sure to find a lender who can give you this type of structure due to the benefits it can bring in the long term.

Avoiding Tying up Any Collateral

Choosing to use a personal loan will also allow a person to avoid tying up any of their things as collateral. Most people do not feel comfortable putting up large chunks of their assets to get a loan. The stress and worry that this can cause is enough to avoid these types of loans altogether. By getting a loan based solely on your credit score, you will be able to get the money you need without any worries. Checking around to the various lenders in an area will allow you to figure out who can give you the right terms on your loan.

A Fixed Interest Rate

Another reason to choose a personal loan is that it comes with a fixed interest rate. This means you will not have to worry about payments ballooning up over time. The stability that this type of loan can give is a major reason why they are so popular. Finding the right loan will require you to do some homework to find the best lender with the best possible terms out there. Usually, you can find out this type of information by researching each lender on the internet.

Selecting the right lender is a big part of getting the right loan. At Tribecca, a person will find it easy to get the loans they need in a hurry.

How to Increase Your Credit Score Before Applying for a Mortgage in Burlington

While you may have saved for a down payment on a brand new house, if you have less than perfect credit, then you may find that you have a difficult time qualifying for a mortgage and purchasing the home you really want. There is good news. There are a number of steps you can take to help and improve your credit score and get approved to purchase the home you really want.

Pay Your Credit Cards Off

If you are swimming in credit card debt, then lenders are likely going to think twice prior to giving you a mortgage. This is due to the amount of credit you have used and your debt-to-income ratio. This is why it is a smart move to go ahead and pay off of your balances prior to sending out any additional mortgage application.

Try to make more than just the minimum payment on the cards you have each month, which will help to boost you credit rating and lower the amount of overall debt you have. This will also show your lenders that you are willing to repay what you have borrowed.

Look at Your Credit Reports

Mistakes happen all the time. When this happens you don’t want to be the last person that finds out about them. Try to get your free credit report online so that you can check what is going on and what is reporting against your credit score. If you find an error, you need to file a dispute right away to have it corrected. While this can take some time, having issues with your credit report fixed right away will help to save you time and money.

Don’t Apply for any New Lines of Credit

If you are moving into a new home, you may be interested in getting a new car, or furniture or something else, but you should not apply for any new lines of credit. This may mess up the possibility of you securing the mortgage that you need to get the home you want. Also, don’t close any accounts either, since this may make your credit history appear minimal, which could also hurt your chances of getting a mortgage.

Taking the time to get the mortgage that you want and need will require you understanding your credit rating. While this can take time and effort, the fact is that it will be well worth it in the end.

Simplify Your Debt Problems In Four Easy Steps

When you are in a dangerous amount of debt, it can be hard to see the wood for the trees. If you are under pressure, you are more likely to stop thinking straight. It can sometimes seem easier to ignore things rather than attack them head-on. However, ignoring your debts is something you should never do as it can lead to severe consequences that may follow you for the rest of your life.

In this guide, we’re going to show you how to get through this sticky period. All it takes is focus and dedication, and you will soon be in a much better position. The quicker you get started, the better – so let’s jump in at the deep end and find out how you can simplify your debt problems.

List all of your debts

People that are heavily in debt tend to owe money to more than one lender. So, the first step is to become more organized and make a list of everybody you owe money to. Include statements from utility companies, too. Even though you may not owe them money, it is still a payment that you need to make, so your gas, electricity and others should all be included. To make sure you have everything on your list, apply to see your credit report at one of the three major reference agencies.

Prioritize everything

Some debts are more dangerous than others, so prioritizing them in some kind of order is essential. For example, loan company Reliance Tax Loans specialize in lending money to pay for real estate taxes. They state that if you don’t pay your property taxes, you could end up losing your home and face severe fines. So, place this type of debt and any other secured debt that could see you losing your home or possessions at the top of your list. Your next priority is those debts that are costing you more – a high-interest rate on a loan, for example. Finally, add your other debts that haven’t reached an emergency level yet – you can tackle these at a later stage.

Work out a repayment plan

The first step towards making a repayment plan involves working out how much per month you can afford to pay back. The figure you come up with should be realistic enough to achieve, but should also be high enough to start making a difference. It is more than likely that you will have to adjust your lifestyle to afford your repayments, so be prepared to make some tough decisions.

Contact your creditors

Using your list, start to contact your creditors to notify them of your intentions. If you have been honest with outgoings, most will be happy to put a repayment plan in place. Pay the most money towards the debts that are more serious, and the least money towards those that are less of a risk. It won’t take long before you start feeling you are making inroads. As long as you keep paying the same amount of money each month, you will begin to regain some control. Once those dangerous and expensive debts have been paid off, you can use the money to pay off the others.

We hope this has been helpful – good luck!

How Does Forex Trading Work? Check Out This Beginner's Guide

There are a million and one ways to make money in this life, and one of the best ones is Forex trading. You’ve perhaps heard of this term before, but what does it mean? And how does it work?

Some of you are doubtless wondering if you need to go somewhere to make such transactions. Others might be thinking it’s something only banks, or the wealthy can do. It might surprise you to learn that anyone – even you – can partake in Forex trading!

In a nutshell, you buy and sell currency to make a profit. It’s the same as trading in any other commodity. Sometimes you’ll make lots of money, other times you might make a loss. Still, Forex trading is a less risky way of building up your pot of money. So, if you’re interested in finding out more, check out this beginner’s guide:

Tell me more about Forex trading
In layman’s terms, you are buying and selling currency on a trading platform. It’s just like buying goods at a wholesale price, and selling them to consumers at a higher retail price. You’re just dealing with money rather than physical goods.
There are various combinations of currencies that you can trade. Some of the most popular ones are as follows:

  • Euros and US Dollars (EUR/USD);
  • US Dollars and Japanese Yen (USD/JPY);
  • British Pounds and US Dollars (GBP/USD); and
  • US Dollars and Swiss Francs (USD/CHF).

Of course, there are plenty of currencies you can choose. But, the ones I’ve listed above offer the most liquidity. At this point, you might be wondering why you’d trade in currency as opposed to something else?
The answer is simple: there are fewer risks. Let’s talk about buying and selling company shares, for example. Prices are more volatile, and you have to spend more time making accurate predictions.
Currency is a better trade because you have more time to assess the market. Whereas with companies, something like reported sales figures could cause share prices to tumble.
How do you buy and sell currency?
If you’ve got small amounts of cash to exchange, you could do so using a bureau de change kiosk somewhere. The only downside to that approach is that the rates are seldom favorable in the long term.
The better option is to use an online trading platform, such as the ACM Gold Trading website. That way, you can do Forex transactions from the comfort of your home. Another bonus is you don’t have to carry around large amounts of cash with you.
When you use an online system, transactions get done via electronic means. You also have the potential to exchange thousands of units rather than tens or hundreds.
Which online trading system should you use?
As you may have guessed, there are plenty of websites you can use for Forex trading. But, which one should you select? Here are a few ways to narrow down your choices:

  • Use a trader in the same country as you;
  • Ensure they are a legitimate company;
  • Don’t use a site that doesn’t offer encrypted transactions; and
  • Try to get personal recommendations from friends and family.

Good luck!