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  • Book Summary: Tax-Free Wealth – How to Build Massive Wealth by Tom Wheelwright

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    I was lucky as a kid to have my father as a business mentor. When the time came and I entered the business world, I could not lean on him as he passed away young. The Rich Dad / Poor dad books were my saving grace when it came to financial education. Several of the concepts I knew about because of my father but the advanced strategies and the “how to” really came from the Rich Dad books. Tom is a Rich Dad advisor.

    Why is this important to me?

    I am not doing this summary to waste your time. It is my vision to provide concise action steps that you can adopt right now to enhance your financial life and career. If you want to continuously improve, you have to be committed to continuous learning. Lever the continuous learning with the right associations and you will succeed in your career.

    The Cash flow quadrant really sums up the essence of financial success. If you focus on the left side of the quadrant then you can make an OK income but if you focus on the right side then you can become rich. Robert Kiyosaki points out in Rich Dad / Poor Dad that the left sides of the quadrant people make money, pay tax and then spend it. On the right side of the quadrant people make money, spend it and then pay their taxes. This is a huge difference and can be the biggest success lever in your financial arsenal.

    Tax-Free Wealth points out 24 Tax Strategies you can use on your way to Tax-Free Wealth. For the sake of time I will point out a few along with some commentary about each.

    1. Rule # 1 – It is your money, not the governments. People tend to run scared when it comes to taxes. Remember that you are the one creating the value and making the business work, be smart and utilize tax strategies to minimize tax and maximize your investment. The key here is tax avoidance NOT tax evasion. Every concept in this book is totally legal and encouraged by the IRS.

    2. Rule # 2 – The Tax Law is written to permanently lower your taxes. All financial plans need a solid foundation. This is why you simply can NOT focus on rate of return only. You can make a huge rate of return but if you can lose it because of a law suit or 50% gets eaten up in taxes then you will lose in the long run. 99% of the tax code is written as incentives to encourage people to start business. The reason the government does this is because businesses create jobs and that is the single biggest economic driver.

    3. Rule # 3 – The fastest way to put money in your pocket is to reduce your taxes. Businesses require investment. That investment is a business expense along with R&D, Travel and other business related expenses. You can combine vacation and work legitimately and write it off as a business expense. If you travel and sell items then go on sales calls in the vacation area. If you are a real-estate investor then travel where you may invest.

    4. 4. Rule # 24 – Build massive passive income through your tax savings. This is the strongest wealth builder in the book because you lever up compound interest, velocity of money and leverage. Utilizing these three vehicles along with investment stacking and you will be rich. The goal is to build your business and make the money there and turn it into passive income and then park the added money into cash flow investments like real estate. You want your money working harder than you do. You do not want to trade hours for dollars. Let me give you an example.

    In our software company there are two ways to build wealth and that is through intellectual property and maintenance agreements. These two things used together will build a company that can be sold for 2-4X revenues. Now to foster that investment with leverage, I use the “Infinite Banking Concept” to lend money to the business through “my own bank.” Now the money the business pays me comes back as investment income which means lower taxes. The new revenue the additional maintenance contracts bring foster new contracts. The next step is to use “good debt” to leverage our coverage and purchase more maintenance contract revenue with our software platform.

    In summary, you make money in your business and hold it in passive income generating assets using good leverage, velocity of money and compound interest.

    Tax-Free Wealth is a great resource that I encourage you to read. If you immerse yourself in these concepts, financial security and true wealth can be yours.

    I hope you have found this short summary useful. The key to any new idea is to work it into your daily routine until it becomes habit. Habits form in as little as 21 days. One thing you can take away from this book is lever your financial education. If you take control of your education and schedule 30 minutes per day dedicated to this then you will reap results. You cannot put your financial future in the hands of somebody else. Take on the responsibility and good things will happen.

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    Source by Joe Mosed

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  • Finding Emotional Intelligence in Negative Emotions – Positive Purpose in Sadness Anger and Fear

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    Emotional Intelligence is severely undervalued. When you feel stuck, frustrated, stressed, upset, or overwhelmed, skillful emotional awareness is the key to moving forward. Underneath your upset is a specific emotion that can guide you. The key, then, is to understand the messages in your feelings and become skillful in using their energy appropriately.

    Even so-called “negative emotions,” such as sadness, anger, and fear, convey important information and energy to carry out specific actions that can help you and others. Emotions arise with a purpose and when this purpose is fulfilled the feeling subsides. Unfortunately, as a society, we have not learned to understand and sufficiently value emotional energy and information, so we tend to deal with these feelings crudely.

    For example, with an emotion like anger, you might express it explosively or shove it under the surface, because you do not want to act angrily. Either you express your feelings reactively or cease feeling altogether.

    Emotional Intelligence expert, Karla McLaren, describes a healthy third alternative. She says you can facilitate the healthy flow of emotions by consciously “channeling” the information and energy that emotions provide. In other words, emotions contain meaningful messages along with energy to do something related to those messages. This is true for so-called “negative” emotions as well as “positive” ones.

    For example, McLaren suggests that:

    • ANGER arises when you, or someone or something you love, is threatened and you need to take protective action or set a firm boundary.

    • SADNESS arises when you need to let go of what no longer serves you or what is past, so you can move forward.

    • FEAR arises to prompt you to take preventative action.

    • JOY prompts you toward expansive, expressive, creative action.

    • COMPASSION prompts you to care for others.

    So, every emotion has a MESSAGE and ENERGY to carry out a specific type of action. Tuning into your emotions helps you to receive these messages and take these actions.

    Let’s explore the first three of these emotions in more depth. Sadness, anger, and fear are often misunderstood and handled poorly. We tend to repress them, stay stuck in them, or express them unskillfully, with negative consequences.

    So, as you work with these emotions, it’s important to do so Mindfully. Approach them as a curious observer with an attitude of paying attention, on purpose, in the present moment, without judgment. Know that emotions are simply information about yourself, others, and events, along with energy to do something about this information. They do not define who you are and they will pass as you gather their information and take appropriate action.

    (Note: If you feel overwhelmed or paralyzed by feelings to the point where you are unable to consciously process them yourself, seek the assistance of a counseling professional who is trained to work with intense emotions.)

    The Positive Purpose of Sadness

    The purpose of sadness is to enable you to let go of what is no longer working or what is past and finished. Sadness is a watery downward-flowing energy that enables you to release what no longer serves you, so you can return to fluidity and flexibility in your life.

    By allowing appropriate sadness to flow through you, you’ll make space for new energy and new possibilities. If you do not consciously acknowledge sadness or don’t know how to flow with it, you’ll bury it inside, where it will perpetually cycle, or you’ll get lost in the feeling and be overwhelmed.

    Here’s a practice adapted from Karla McLaren’s book, “The Language of Emotions,” that can help you consciously process feelings of sadness.

    1. When you feel sadness flood into you, take some quiet, private time to center into the feeling. Tune into the sensation of sadness, locate where it resides in your body, and approach it with curiosity to learn what it has to tell you.

    2. Take a deep in-breath as if you are filling your whole body with your breath. As you exhale, make a sighing sound, and feel the energy of your sadness flowing like water down through your body, through your legs and feet, and down into the ground.

    3. Stay centered in your inner space and ask your sadness the question: “What needs to be released or let go right now?” Don’t rush to fill in an answer. Instead, keep the question open. Listen and feel inside.

    Repeat your sighing breath down through your body as many times as you feel the need and keep your question open for your deeper knowing to respond. You may find you know right away what you need to release or you may find it becomes clear later. Either way, tuning into sadness (or any emotion) mindfully initiates a process of discovery and integration that will help you move forward.

    The Positive Purpose of Anger

    Anger arises to create and preserve personal boundaries and safeguard personal space. You feel angry when a personal boundary or the boundary of someone or something you care for is disrupted or violated. When you are able to identify the source of the perceived threat and use the energy available in anger to strengthen your personal space and take appropriate action, anger will recede. It will have accomplished its purpose.

    Here’s a practice adapted from McLaren to gather the information and use the energy in your anger:

    1. When you feel anger rising, focus inside your body and become more in-touch with the felt sensation. Approach the feeling with curiosity to learn more about it.

    2. Take a deep in-breath. As you exhale, imagine and feel as if the energy in your anger travels outward into a sphere about an arms-width around you, your personal boundary, strengthening it with a brilliant color. Do this until you feel a shift in your energy, so you are witnessing, feeling, and working with the energy in your anger without being consumed by it.

    3. Ask your anger this question: “What needs to be protected or restored?”

    4. Then ask, “What action will restore healthy boundaries and protect what is important?”

    These questions help you identify what feels threatened, so you can take appropriate action. Try this when anger arises and see how it works for you.

    The Positive Purpose of Fear

    We’ve been told “Fear is what holds us back” and “The only thing to fear is fear itself.” If we can just overcome our fears, we’ll be able to live full-out and realize our hopes and dreams. But, what if this perennial wisdom regarding fear is missing something? What if fear in its essential form is one of our wise guides?

    Emotions have three primary forms: unconscious reactive expression, a repressed cycling state, and a healthy free-flowing state. It may be that we are only familiar with the first two forms of fear: a reactive expression that makes us cower and a repressed state which creates constant low-level anxiety.

    Fear in its healthy free-flowing form is something altogether different. What if fear can signal intuitive awareness of something that needs attention? What if it can alert you to important action?

    This form of fear is a sixth sense that reaches out through your personal space to pick up signals about what is happening inside you, with others, and in your environment. Fear can alert you to what is happening in your own body. It can alert you to the actions and intentions of the people around you and to conditions in the environment. When you learn to discern this information, it can help you can choose wise actions.

    To learn to use fear as a wise guide, try this simple practice:

    1. When you feel fear arising, take a quiet, private moment to center into the feeling. Tune into the sensation of fear, locate where it resides in your body, and approach it with curiosity to learn what it has to tell you.

    2. Take a deep in-breath as if you are filling your whole body with your breath. As you exhale, imagine and feel that your breath fills the sphere of your personal space about an arm’s width around your entire body. Sense into your personal space and into the wider space around you and search for subtle signals. For example, you might be drawn to an area inside your body or to look at something or someone in your environment. You might feel the urge to move toward or away from something.

    3. Stay centered in your personal space and ask your fear the question: “What action needs to be taken right now?” Don’t rush to fill in an answer. Instead, keep the question open. Listen and feel inside. See what presents itself. You may have an inspiration to take a specific action.

    It can take time to learn to discern guiding signals. As best as you can, be patient. The simple action of tuning into emotional signals is a cultivated skill. You’ll grow your ability to sense inner guidance from fear and all your emotions through mindful practice over time.

    You’ll also learn to discern the quality of signals that represent accurate present guidance from false interpretations based on painful past experiences. There’s a different felt quality to accurate versus false guidance. False guidance may feel alarming, stressful, or rushed. It is fixated on what happened in the past or overly-anxious about the future. Accurate emotional guidance has a matter-of-fact, present, forward-moving quality, that feels like perfect timing.

    So, in summary, as emotions come up, instead of being wary of them, what if you welcome them, become curious, and ask:

    • What is the sensation of this emotion in my body?

    • Exactly what emotion is this?

    • What is the message in this feeling?

    • What is it asking me to do?

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    Source by Kevin Schoeninger

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  • The Central Theme of Rich Dad Poor Dad by Robert Kiyosaki – Look For Assets Not Liabilities

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    Rich Dad Poor Dad has been reviewed by many writers. The book, written in 1997 by Robert Kiyosaki, immediately became a success. The concepts expressed therein are the foundation of Robert Kiyosaki’s Rich Dad book series.

    Rich Dad Poor Dad expresses a number of concepts that seem contrary to the established norms of accounting and finance. Robert Kiyosaki defines an asset as anything that puts money in your pocket and a liability as something that takes money away from your pocket.

    In Rich Dad Poor Dad and indeed the entire Rich Dad series, Robert Kiyosaki encourages his readers to look for assets and avoid liabilities. This is the key message to those who want to become wealthy and prosper financially.

    Based on the definition of assets and liabilities is the concept of making money work for you instead working hard for money. Money works consistently and diligently for a wise owner multiplying beyond expectations. You cannot become rich by working for money.

    You earn passive income when you get your money to work for you, a concept explored exhaustively in Rich Dad Poor Dad. Passive income is the foundation of wealth as it gives leverage to your efforts. After setting up an income stream, it continues to make you money while you sleep.

    The Rich Dad Corporation has three main shareholders: Robert Kiyosaki, his wife Kim Kiyosaki and Sharon Lechter. The three of them are co-founders of the RDPD Corporation under which they have produced a range of RDPD books.

    Kim Kiyosaki has written her own line of Rich Women, Poor Women which is based on the same basic principles expressed in Rich Dad Poor Dad but is directed to a different audience altogether. Riding on the back of her husband, Kim Kiyasaki’s books have also been very successful, drawing millions of satisfied readers.

    Robert Kiyosaki has influenced the lives of millions around the world through his books, helping many to become aware and get rid of doodads, thus eliminating liabilities from their financial life. He has conducted millions of seminars and training programs. He is dedicated to educating humanity in business principles and handling of personal finances, thus helping them to escape poverty.

    The Rich Dad Series gives many practical examples of how to grow money using real estate, the stock market and business. The books confirm Robert Kiyosaki’s qualities as educator and motivator, and his understanding of economics and money concepts. Employing skills as educator and his knowledge of money matters, Robert Kiyosaki has been able to build an empire on the concepts expressed in Rich Dad Poor Dad.

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    Source by Robert Mato

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  • How Does Relationship Building Techniques Build Your MLM Business?

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    Relationships are key in life, without them; life would be so boring. MLM marketing is based on creating strategic relationships between teammates and the audience of the individual business. This means that one has to work carefully to build trust and authority with the target market. By doing so with authoritative content and reliable timing, relationships will blossom and grow. Thus, creating a pipe line to send dedicated content towards motivated prospects. Failing to create elementary content not only discredits the publisher, but also kills all sales potential. Let’s open the door to relationship building techniques that will help.

    Create content that doesn’t sell but builds your reputation

    Never push content that sells, this is a horrible practice for MLM marketing. Create content that builds your business reputation up. This means promoting content that entertains or has a high level of educational value. There are so many businesses out that already overly pushes sales content, there is no need for you to do the same. Your marketing content is supposed to be attractive, not repulsive. This means every blog, article, eBook or landing page must educate through problem solving of some degree. There are ways to get sales, but to do so, one must push the agenda of their prospects first.

    To build relationships in MLM marketing, the content that is needed will vary. You will need basic content that covers a general situation to content that absolutely solves a specific problem. This is how you define your leads, by sharing all types of educational content. Your prospects will not always be in the same boat as the next person. So, to be effective, you must share content that targets symptoms first, then develop content that nails down some of the symptoms and then finally offer the cure through the final. The last content you can develop is the follow up content that offers advanced material to help the prospect go beyond the basic package.

    Specialize by focusing on your prospects growth

    Help your prospects grow in some fashion. This can be in life, or some other area that you have specialized skills in. In this capacity, your relationships are more specific and narrowed down in which the others in your area cannot touch. Lead by example, offer free and premium content for your visitors and subscribers. This will distract your prospects enough to keep them engaged. Not all of your content will be successful, so the smart marketer will always engage in analytics to help sort the weeds from the wheat and develop themselves and their content for the successful campaign. These techniques have enabled many new marketers to climb the ladder and enjoy an effective business.

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    Source by David L. Feinstein

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  • How to Lose 60 Pounds in 2 Months

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    Is it possible to lose 60 pounds in 2 months? Yes, it is, and many people have done this before. You can do this as well if you do the right way.

    Is it safe to lose 60 pounds in 2 months? Well, it depends as everybody is unique. It may be safe for others, but it doesn’t mean it is safe for you.

    So what’s wrong with dropping 60 pounds in 2 months? There is nothing wrong with losing weight quickly, as long as it’s done the right way. You know that in theory, one could drop as much as 20 pounds a week following a very ambitious eating and exercise plan, devoting more than seven hours per week to rigorous exercise, and under a physician’s care.

    You would need to lose only 7-8 pounds a week to reach your goal, which is far less than 20 pounds a week. I think there’s nothing wrong losing 60 pounds in 2 months if you don’t have any health issues. Do consult your doctor first before you go for it to be sure it’s safe for you as I already mentioned, everyone is different. What is safe for others may not be safe for you.

    The very important key to lose 60 pounds in 2 months is to plan your diet and exercise very well. You need a proper plan to stick with. The plan must fit your daily lifestyle, the one that you are able to follow, not just quit after a week or less.

    The first thing you need to do is to find out why you can’t lose weight.

    1. Can you reduce high calorie foods and drinks?

    2. Do you feel stressed when you don’t have your favorite foods?

    3. Is exercise killing you?

    4. Are you too tired to exercise because you’re obese?

    5. Are you bored with following the diet program?

    6. Do you think you have tried many weight loss programs but they don’t seem to work for you?

    The list goes on and on. As you may already know that the basic rule of losing weight is to eat less but to maintain a healthy diet and exercise more. It sounds very simple to say but it isn’t in practice. You could overcome this issue by gradually changing your lifestyle. I understand that it takes time and you may not lose 60 pounds as fast as you want. That’s why you need to find out the right plan for yourself by trying out many weight loss programs and see what works best for you. Most people who successfully lost weight may have had many failures but it didn’t stop them from trying. You need to keep your motivation high in term of weight loss. Think positive and you’ve already won half the battle.

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    Source by Susan Boyce

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  • How to Collect and Invest In One Dollar Bills Using Serial Numbers

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    A one dollar bill may not seem like a lot of money, but some are rare and can become part of an investment. The key to knowing if a dollar bill is worth more than face value is to examine the serial number. Serial numbers are a combination of a letter, eight numbers and another letter at the end. You can find them easily because they are printed in green and are located twice on each bill. One is close to the bottom left of George Washington’s portrait and the other is located at the top right of his portrait. Combinations of serial numbers are keys to determining the rarity and investment value of a bill.

    The first letter runs from “A” to “L”. These 12 letters are codes for the cities where they were printed. The last letter indicates the number of times that the Bureau of Engraving and Printing used the sequence of serial numbers. So, “A” means that the serial number has run only one time. “B” indicates a second time and “C” is the third. The number of letters goes through the 26-letter alphabet.

    Between the letters are eight numbers representing how many one dollar bills were printed in one year. The first one printed will be “00000001”. The last is “32000000”. The lower or higher the numbers, the more they’re worth as investments. For example, a bill with a low number like 00000095, or one with a high number 32000022 can fetch between $25 to $100.

    Also, a specific combination of numbers can add value. If you have only two numbers in the set, like “2” and “4”, such as 22424442. This number is worth a little more than face value. But, if you have a repeating pattern, like, 24242424, or 24224224, your investment just increased by about $1,000. This special combo is called a “binary bill.”

    You might also get a set using three numbers, such as “2”, “4”, and “7”, you can have them in no special order, such as:27244727, or 59577975 Of course, if they follow a repeating order, they are worth more. You must know that a two number combination will be more valuable than the three number combination. These are called “trinary bills,” which could only fetch $3 or $5.

    Another type is called a “ladder,” which is a direct count from 1 to 8: 12345678 or, backwards: 87654321.

    A “radar” bill reads the same numbers backwards and forwards, like a mirror: 14622641. A “super radar” bill only includes two numbers, with the same one only at the beginning and end: 59999995. Radars can fetch about $25, while super radars might be worth about $70.

    Two or more separate bills with consecutive serial numbers, like 25348793 and 25348794, are two bills printed one after the other.

    “Doubles” occur when you have two of the same numbers: 33774499. A “double quad” is two sets of four of the same number: 33335555. Even a bill with one number repeated eight times: 44444444 might bring $500.

    You can also find a “star note.” If you see a star at the end of a serial number, it means that it’s a replacement bill for one with the same serial number that was damaged.

    Special combinations of serial numbers from one dollar bills vary in value, from just a few dollars to a few thousand. My advice is to go to your bank and ask for a one-dollar “strap” which is a pack of 100 one dollar bills. Go through them and see what patterns of serial numbers you can find. Sometimes, a fresh new pack of one dollar bills will come to a bank straight from the Bureau of Engraving and Printing. So you might have a good chance of finding consecutive bills, which could possibly earn you a few more dollars if you sold them to a collector. Just remember that any bill with a special serial number is a rare item. Now, you have a good reason to check the dollar bills in your pocket or purse.

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    Source by Harrington A Lackey

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  • Book Summary: The Millionaire Messenger: Make a Difference and a Fortune Sharing by Brendon Burchard

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    I read this book sitting in a Thai food restaurant on the Oregon coast. The food was outstanding and what was very interesting was the fact that at the cash register there was a book and DVD set talking about going to college for free. The author was a young guy who graduated from Harvard. The whole book series was designed to show college students and parents how to find money to pay for college. Come to find out the author was the restaurant owner’s son. This is a classic example of the Millionaire Messenger in action.

    Why is this important to me?

    I am not doing this summary to waste your time. It is my vision to provide concise action steps that you can adopt right now to enhance your life. The best way to financial freedom is through a business. Now most people cannot simply quit their jobs and to start a new business. Typically you need to work your job and your new business until you have enough sustainable revenue to take your business full time. The Expert Industry is a caring community of people who share their advice and knowledge with the world and get paid for it.

    You may be thinking I am not an expert in anything. This mindset has everything to do with Self-Esteem & Self-Confidence. Brendon addresses these concerns in the book. Think about this – every person has a unique finger print and unique life experiences. Those experiences with additional research can yield you an expert.

    I want to start with a potential example of being an expert in something. I have a good friend of mine that has been doing cement work for over 20 years. He does this with his four brothers. He does not think of himself as an expert. Have you ever considered how successful Home Depot is as business? They cater to the do it yourself community. My friend could simply film different cement jobs and sell them as a do it yourself venture. It would look like this:

    1. Create simple how to videos on the basics and give them away for free.

    2. Create a deeper video series on how to do a full patio, sidewalk or stairs and sell it with a checklist manual.

    3. Offer paid for consulting for job layouts with customers.

    4. Take high priced large concrete jobs that are above the do it yourself community and name your price.

    This is a simple example of releasing 100 years of combined cement expertise that could easily be parlayed into a seven figure business model.

    The Millionaire Messenger is packed with great how to advice. For the sake of time, I am going to chat about the 9 reasons you should consider unlocking your knowledge and passion in the expert business.

    1. Your work is based entirely on your passion and knowledge. This is really important because it no longer seems like work when you wake up each morning doing what you love.

    2. Relating and Creating – Your work activities center around gaining trust and relating to your audience as well as creating useful content that add real value to their lives.

    3. Anytime / Anywhere – Creating information how to products allows you the comfort of working on your schedule from anywhere. I can tell you from personal experience that setting up your business to do this one great step toward personal freedom.

    4. Work with who you want – This is a big deal because stress statistics show that stress related illness is interconnected with who you work with or bad working relationships in general.

    5. Promotions based on promos – The amount of money you make is directly related to the promotional efforts you put into marketing your content. This is all up to you and your work ethic.

    6. Pay equals value – This is the strongest and most relevant point in the book. If you deliver great value, people will pay you for it and you can decide what to charge. You are not trading hours of your life for dollars.

    7. Small Teams – You do not need a big team to do this. You can outsource several of these steps so that your payroll does not spiral out of control. There are information marketers that make millions of dollars a year with very little staff.

    8. Tools are cheap – Technology today really is cheap. There are so many excellent software packages that are free that you can craft your whole infrastructure for next to nothing.

    9. Financial Income can beat that of other industries. There are six ways to market your stuff and each has a different price point. The best business models are summed up in one phrase – “one to many”. Creating something once and selling it over and over is the true key to unlocking the wealth puzzle.

    The Millionaire Messenger is a good book that will give you the direction you need and the questions required to get you on the path to personal wealth and freedom.

    I hope you have found this short summary useful. The key to any new idea is to work it into your daily routine until it becomes habit. Habits form in as little as 21 days. One thing you can take away from this book is one to many. When crafting your business model or tweaking an existing model, remember to leverage the power of “one to many.” In our software business, we create a software module once and sell it many times. This is how Microsoft and Oracle generate billions of dollars each year.

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    Source by Joe Mosed

    Views: 0

  • The 7-Point Trading Plan Template

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    One of the first things beginning traders are told to do is to create a trading plan that will spell out a trading strategy and a list of rules to follow in implementing that strategy. The only problem with that advice is that beginning traders don’t really have any trading experience, and thus are lost when attempting to craft a trading plan for their trading.

    Another problem with trading plans is that beginners are instructed to treat their plans as gospel and are told not to deviate from them. This prevents traders from adapting their strategies and rules to improve their performance, an essential step in every trader’s learning curve.

    Instead of a rigid document to be created early on in your trading career and never to be changed, you should instead view your trading plan as a living and breathing set of guidelines, capable of being modified as you gain trading experience. This article will teach you how to create a trading plan that will guide your trading efforts without stunting your progress.

    The 7-Point Trading Plan Template

    In creating your trading plan, here are the items you should include:

    1. Markets – What markets will you focus on? Be as specific as possible – if you’re trading stocks, what types of stocks will you concentrate on?

    2. Timeframe – How long will you hold your positions for? Will you be a day trader focusing on trades lasting a few minutes, or a swing trader holding trades for a few days?

    3. Time Period – What times of the day will you trade? You may have outside responsibilities that prevent you from trading an entire trading day. Pick which times of the day best suit your style.

    4. Trading Style – How would you characterize your trading style? Perhaps you are a momentum trader focusing on trending stocks? Or maybe you specialize in a particular sector? Again, this can and will change as you gain experience and learn from your results.

    5. Risk Management Rules – This is an absolutely essential and often overlooked component of your trading plan. How will you manage your risk, both on a per-trade basis and overall? You should have a “stop trading” point which is a fixed dollar amount that will force you to stop trading if you’re down by that much.

    6. Mentor – Who do you follow and learn from as a teacher? Attempting to learn trading all by yourself is not only lonely, but foolish as it ignores the hard-earned wisdom of other traders. You can either repeat the mistakes of other professionals and hope to eventually learn the lessons and techniques that they’ve learned, or you can simply learn from successful traders and bypass those initial frustrations.

    7. Learning Process – How will you structure your learning process as a trader? What steps will you take to ensure you’re always getting better? How will you structure your trading journal?

    Trading Plan Example

    To show you this trading plan template in action, I’m going to fill it out according to my own trading style:

    1. I trade the U.S. stock markets, focusing on volatile stocks with sufficient volume. These stocks are typically the focus of news items and are thus “in play.”

    2. I am a day trader and hold my positions anywhere from a few seconds to a few hours. I’m primarily a scalper and am looking to take advantage of short-term imbalances between supply and demand. I will stay in a trade as long as I can identify a supply/demand imbalance.

    3. I trade throughout the trading day, although I focus most of my activity at the open and close of the trading day.

    4. While I have multiple styles, I would characterize myself primarily as a momentum trader that relies on tape reading to identify favorable risk/reward situations to enter in the direction of a trend.

    5. I’m fanatical about managing my risk, both on a per-trade basis and overall. Every trade I enter has a predefined stop-loss and I have a daily stop-loss to stop trading when I’m having a rough day.

    6. I’ve had a variety of mentors throughout my career, and now I talk with a select group of traders at my firm with similar trading styles.

    7. I review every single trade I make, always looking for ways in which I can improve. This may be as simple as cutting down my risk when trading certain stocks or altering my execution patterns.

    Your trading plan can be as simple as that, just a series of statements answering those 7 questions. You also shouldn’t spend too much time creating your trading plan as it will frequently change throughout your career.

    Summary

    Your trading plan will crystallize exactly what you’re trying to accomplish, but don’t view it as set in stone. Rather, your plan will grow and change as you gain experience and develop your own trading style.

    Your trading plan also doesn’t need to be a complicated document spanning multiple pages. You simply need to define what markets you’re going to trade, how you’re going to trade them (how long you’ll hold positions, what times of day you’re going to trade, and your trading style), how you’re going to manage your risk, and how you’re going to continue developing as a trader. By clarifying and explicitly stating those 7 key points, your trading plan will serve and support you in your trading career.

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    Source by Matt A Nadell

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  • 4 Reasons to Become Money Minded

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    Being money minded is the key to creating wealth and abundance, yet it can be overlooked when a person is trying to increase their wealth and achieve more in their lives. In fact the thought of being monetarily minded makes a lot of people feel repulsed, they associate this with being greedy and single minded – two traits which are not seen as attractive in society. However being prosperous minded is not about greedy, it is about having the right kind of mindset to make and attract money and here are 4 reasons to change your mindset to attract wealth:

    1. Individuals with wealthy mindsets will seize opportunities that come their way – this is something that people with limited money beliefs will not do for fear of failing at a task or venture.

    2. Prosperous minded individuals learn to live their lives free from the control of money. This is not the same as living without money, it just means they do not fixate on how much money they have or don’t have all day long.

    3. Wealth minded individuals recognise limiting beliefs about money and block them out of their minds. Doing this will enable them to create a more positive outlook about money which in turn will help an individual to be more wealth minded.

    4. Financially minded individuals are not ashamed of being this way because they know that this kind of attitude is what enables them to succeed and move forward in life and achieve more.

    These are just 4 of the reasons to become money minded and there are so many more that you can learn about.

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    Source by Christine M Jenkins

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