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Make Money With Storage Unit Auctions

Starting A Storage Auction Unit Business

Storage unit auctions have been a very lucrative way to make money, it might look like a gamble where sometimes you win it and sometimes you lose. But actually there are some tips you could follow to profit in this money making venture. Some strategies you can employ to minimize losses and make big profits from these auctions just by sticking to these standards and making professional and logical moves that could only spell success and profits for you.

Success in making right decisions on storage auctions and merchandising requires following some fundamental rules. The most basic of these is to obtain items of good quality that people will actually want to purchase, and to acquire them at a low enough cost to ensure adequate profit. Once this challenge is met, the entrepreneur’s success is largely assured.

What You Need For A Storage Auctions Unit Business

Basically having capital to buy out storage units being auctioned would be necessary to get you rolling. Looking for these storage units auctioned would be the next step. It would not be that hard to find, there are many storage units everywhere and they auction very often for non-payment of rent for the storage unit.

Start-up costs are minimal: a van or pickup truck (a trailer towed by a car will do) and a few hundred dollars are all that is required to begin your own business. Across the United States a huge supply of desirable products exists for low prices. Furniture, electronics, appliances, clothing, books, art, toys, tools, and a plethora of other goodies can be had for a fraction of their true value. The purchaser can use these items themselves, or resell them for a generous mark-up.

The first time I participated in a storage auction, I actually had to borrow the $500 I spent on purchasing the unit. I had terrible credit those days, so I used one those bad credit personal loans that you find on the internet. The interest rate was a little higher than I liked, but I didn’t matter because I made more than $1,500 selling the contents of that unit and I was able to pay back my loan within days.

Growing Your Storage Unit Auction Business Over Time

Start A Storage Unit Auction Business Taking into consideration that there would be times that you bid for items that are in the end you would find out, have less value than what you gave out to for the bid. These cases are inevitable but you could always reduce the chances that these would happen to you. Remember that your primary goal is resale. It’s through resale that you would gain profit, don’t bid for $300 for goods that would resale only for $50 its always a good idea to check local flea markets, yard sales, classifieds, salvage stores, E-bay etc. for prices to make better judgments on how much you should spend or bid for certain goods.

The best way to start bidding is always bid low, have a limit, for example put your limit at the 50% of the actual price of the goods. This way you are sure of your profits. You can determine the value by always estimating the resale value of the goods. Auctioneers would always open the storage units so you could see its contents, this is your chance to evaluate and give the goods a certain value. Then you can now place your highest bid at the limit you have set which is 50%.

Another tip is always sort the goods on the spot after the bidding make assessments on items that are of true value and those that are going straight to the junkshop. This way other bidders might be interested at some of your items and would be willing to buy it from you easily making your first resale on the spot. Sometimes some of the items would need a little work or repair. Always look beyond the dust and scratches of the items, look over them very well and sometimes you might find that a colored TV only needs a new part, a lawnmower only needs a new sparkplug. This way you raise the items value by making it usable again.

Remember that where you usually find the prices for such items are also the best venues for you to sell them. Storage unit auctions can be a hit or miss, some have been able to make their money back by selling the goods purchased and others have lost money due to the fact the unit they bought didn’t yield items with high enough value. Even though these types of auctions can be much like Christmas, not knowing what you’re going to get, they provide a different way to bid and their popularity is increasing as more and more people learn about them.

When buying a car becomes a headache

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Author bio…

Jordon Ramsey is a financial expert who spent several year working for a leading Sports Car company. He spends his spare time writing for popular websites and magazines.

 

Even with the UK’s public transport system serving its purpose and connecting much of the country together, ever-rising cost of it means the pure convenience of owning your own car is something that many of us love, or at least desire! With the UK’s current financial situation not exactly spectacular, it has become harder and harder for us to afford cars due to rising costs and, for young drivers, extremely expensive insurance. It is very common nowadays for a young driver to paying more for their insurance that their actual car.  So, what steps can you take to have enough money for your own car?

  1. Look closely at your finances

If you’re thinking of buying a car, it’s likely that you have a job and a house that also requires attention. Owning a car costs a lot of money, so you must be careful to not spend money on a car and then notice you cannot pay your rent or bills. This could turn into a vicious cycle that wouldn’t have taken place if you set aside some time to properly analyse your finances. Car dealers tend to offer several different deals for buyers, some of which you must be sure to read the small print on. If you’re slightly short on money but have a secure monthly income, companies like Wonga can help if you need a car sooner rather than later.

1.) Do your research

You don’t necessarily need a shiny, brand new car, especially if you are a first-time driver. There are several popular websites like WHATCAR? that can help you  find the right car for your personality and lifestyle. Make sure to use sellers that you trust, and be wary of people selling cars unofficially or for cash. The majority of these deals will be completely legitimate and not lead to problems, but remember if somebody is moving house and selling their car, they may choose to not mention a problem. Also, don’t immediately buy the first promising-looking car you lay your eyes on. Play the field for a couple of weeks if you have the time to, as you could find a car that makes the first car you saw pale in comparison.

2.) Test drive the car

A shocking number of people buy cars, in turn committing to pay thousands of pounds, without actually driving the car first. Exactly how a car feels to drive cannot be known from pictures and videos alone. Getting a test drive may not save you any money right away, but if you bought a car then went on to discover you dislike how it feels to drive, that’s a lot of money wasted! It’s important that I mention that taking a test drive does not tie you into any agreement of contract. If you are buying your car online, you can still test it out at your local dealership.

3.) Don’t panic in the showroom

If you have decided to buy a new car, the showroom can be either a terrifying or electrifying place. It is important that you don’t take absolutely everything the salesperson says as the whole truth and nothing but the truth. It’s their job to sell cars, but they also respect people who don’t cave in immediately. It’s your money, you spend it on what you see fit, not what the salesperson insists. Make use of the research you have hopefully done, as giving the impression of knowing what you’re talking about can be an important tool when dealing with a salesperson and a lot of money could be saved. Car showrooms are also not shy of haggling; remember to get your point across to without being too forceful, do not be afraid of making ultimatums and don’t forget you can walk out at any time.

4.) Cover all bases when buying online or second hand

When buying a used car, or one online, there are a number of thing that must be considered that don’t come into the equation in a showroom. Be sure to check the car for any faults if you’re buying second hand. If you are buying a car online, ask about the return policy, time until arrival, and transportation costs. Cars are extremely heavy and aren’t cheap to transport around the country (or even the world, depending on where you buy from!) so look out for extra costs.

Send your money to work, make more of your cash and 4 other money-boosting tips!

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Have you got cash lying around in a savings account, not gathering much interest and not really doing you much good? Well, if so read on as we have some great tips on how to turn this money into money that gets you the best return for your money. Read our tips on smart investment and you will learn how to make your money make you loads more money!

Be proactive with cash

If you have spare money, don’t ever ignore it thinking this is the best way to save for a rainy day. Instead make a plan of how to get your money making the best return for you. Do some research. Check out some investment strategies. Go online and see if you can compare competing providers of financial investment solutions. Ask your family and friends how they have invested their spare cash. There are so many things you can do with your ‘rainy day’ money which are soooo much better than simply ignoring it and feeling safe knowing it is there if you really, really need it in a hurry.

Take risks; make mistakes and learn from the experience

There is an old saying; ‘if you have never made a mistake you have never made anything’, and so true – so be prepared to try new things. Invest in new, exciting opportunities that you believe in. Why not back a business idea you like the sound of by becoming an angel investor? This way you can watch your money help build a business and see your investment grow and grow!

Stick to your budget

Sticking to your budget is important. If there is a glitch, for example if an emergency arises and you need to get a payday loan (from a reliable provider like Wonga) and paying this back costs a bit extra – don’t be afraid to change your budget and take account of the new expense. An unexpected cost does not mean you should throw your budget out the window!

Points, bonuses and offers

Stay in tune with points schemes associated with groceries, travel and any other things you spend regularly on. It is amazing how much difference these can make to your overall budget allocation for things like travel and groceries. If your credit card gives you a reward for spending – why not spend but do what the people offering the incentive don’t expect you to by paying back every penny and then spend again the next month and do the same thing all over again.

Convert stuff into cash

Have you got ‘stuff’ you have not thrown away because it is not being used, but is valuable so you would not really feel right throwing it on the scrap heap? Well if you sell, trade in or even rent out things like this, you can really make a profit on them. If your second car is gathering dust, why not sell it and put the money into an ISA?

Capitalise on things you would not have thought about

Boosting money is not always about getting a better job or working harder. Sometimes it just involves thinking laterally about the resources you have and using them to your advantage more successfully. Take the humble parking space. If you live in the City, you may not know just how valuable your parking space is until you post an add in a local newspaper, or on Gumtree and find out that people will pay a daily rate for your car parking space when you are not even using it!

Use your skills

Have you got a unique skill that you don’t make any money out of? Well why not boost your cash reserves by putting it to good use? Love fitness? Why not do some personal training on the side, after work? People will pay you to train them! Know about football? Why not advertise your training services? You could even try something really, really quirky like being a magician for the day! Some people even make money cause they look like celebs! So, whatever your hidden talents are, put them to good use and boost your cash reserves at the same time.

Are you a parent?

If you have kids, why not encourage your kids to get out there and use their skills? It is not all about forcing them out to work or chasing them out with a stick, but if you promise to buy them a really great present after working over the summer hols, you both gain, don’t you?

Have you got the answer to boosting your cash reserves? Is there some ingenious strategy we have not mentioned? Why not post your comments and opinions? Come on, join the debate!

Author bio

Catherine Smith is a blogger with a special interest in money, investments and travel advice.

Investing to Meet Your Goals

Saving money is important, not just for retirement but for your short and medium term needs as well. I prioritize my finances and savings goals into three different buckets; short term, medium term, and long term needs and wants. A short term need would be considered a car. Most people need a vehicle or transportation of some sort to get to and from work. How much you spend on that car is an entirely different story. A medium term goal would be a home. Because a house is an appreciating asset that tends to cost more than a car, and something you hold on to for longer, it only makes sense that you would need more time to save for this. A long term goal, as I stated above, would be considered retirement. After all, once you retire you won’t have a paycheck coming in anymore. This means you need to make sure you are adequately funded for the rest of your life, which we often don’t know how long that will be. With each of these different types of goals comes investment types that match them. I have my money well diversified based on the different wants and needs I have mapped out.

I own a car now, but there was a time that I was in savings mode myself. I spent maybe a year and a half saving up to purchase a new vehicle, so I wanted to make sure I earned interest but that the investment was also easily liquidated. I took a portion of my money I had saved at the time and put it into a 12 month CD at my local credit union. A credit union tends to offer more favorable rates than the average bank. I also put money into a promotional money market account as well, and since the promo rate lasted 12 months it was perfect timing with the CD. In the end I probably saved an additional $1,000 that year just off interest on my money.

I also own a home now, but I spent quite a few years saving for this endeavor. This was a combination of several different investments. I had a 5 year CD that paid a decent amount of interest to me, and after the 5 years is up it is easily liquidated. However, my most aggressive form of investing was within my post-tax brokerage account. This is an online account I setup years ago with the purpose of saving up for a home. I was able to invest in blue chip stocks, dividend paying stocks, I even had some binary options strategies as well.

I haven’t yet reached my long term goal of retirement, and I’m probably a good 20 years away from this still. That being said, I employ an aggressive and well diversified investment strategy for retirement. I contribute as much as I can to my employers retirement plan, certainly enough to receive the full employer match and then some. I also invest in target date funds. These are funds that are actively managed for you, and their asset balancing is based on the year you plan on retiring. In a sense this is sort of a low-cost set it and forget type of investing strategy.

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How Friends Can Help Eliminate Forex Risk

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Internet forums are packed with stories from traders who have failed to make it in the forex world. Of course, like with any market, in forex, the risks are large and trading currencies is certainly not for the faint hearted. Risks, however, are inherent for those who decide to take on these risks for the potential profit, and success can only be gained through hard work and risk limitation. One way that you can limit this risk is by consulting a friend. Friends, counterparts and other more experienced traders can all help you limit this risk, providing you with an alternate perspective on your trades, helping you navigate the markets. To find friends and allies who are willing to help, you’ll have to sign up to a social trading platform, here’s exactly why it can help you:

Share Your Experiences and Learn From Any Mistakes:

New traders in particular are often left flummoxed by the markets, unsure why their trade was unsuccessful and unaware of what the correct course of action would have entailed. The truth is that if you don’t know about the forex markets then it is incredibly hard to learn. If you execute most of your trades on a night after work then the forex markets can seem an incredibly lonely place and, especially if you don’t know many other traders who can help you along the way, they can be incredibly unforgiving.

To counteract this, social forex provides you with a constant reference point, allowing you access to other traders around the clock. Most social forex platforms are hosted by an ecn broker, and this means that, when you’re communicating with other traders, you can publish your trades so they can see exactly what you’re referring to. This means that with the click of only a few buttons, you can share your trades and experiences, with other traders giving you vital feedback which would otherwise be unobtainable. Instead of being a lonely world, social trading allows the world of forex to condense, becoming much friendlier in the process.

Create A Portfolio of Trusted Traders

Once you’ve got to grips with the platform and synced it with your trading platform then you’re ready to start building up a portfolio of traders. Of course, when discussing trades you must always be wary of the advice that others give you. Most traders are sincere, knowledgeable and approachable people, but there are others who may look to exploit your stance as a newbie trader. For this reason, you should take all advice with a pinch of salt, and ask for a second opinion. If you find certain traders that you know you can trust, then you should create a portfolio of traders who you know can help you bypass the inherent risk posed. Trading is far easier when done together, and more minds are certainly greater than one.

To conclude, social trading is a great way to bypass forecast risk. Such risks are inherent, but learning from other traders is vital. So, make the world of forex far less lonely and create a portfolio of traders to help you along the way.

How to Protect Yourself From Underinsurance

Research shows that 95% of Australians do not have adequate levels of life insurance. Even though many Australians have some degree of life insurance included within their Superannuation, it is thought that many are still underinsured by $100,000 or more. Insufficient amounts of life insurance will mean that your family will not have adequate cover, in their time of need. Source: Lifewise.org.au

Life insurance protects your loved ones with a lump sum payment in the event of your death, or upon diagnosis of a terminal illness.

When applying for life insurance it’s important to understand your policy, be completely truthful when you buy your policy; and ensure your details are up-to-date as your life circumstances change; such as a new child, new home or new job, to help ensure your family is protected when they need it most.

Australian insurance comparison site compareinsurance.com.au experts in all things insurance, helps you to understand life insurance, and explains how you explore your options and avoid underinsuring your income and life.

5 ways to help you find the right life insurance

1.     Duty of Disclosure

It’s really important to be truthful to your insurer when you buy your policy to make sure you have the right level of cover to protect you and your family. A common reason for an insurance claim not being paid is because not all information was disclosed to the insurer at the time of buying the policy. For example, hiding information such as being a heavy smoker, being involved in risky sports or activities, having a serious health issue or a terminal illness, drug use, or even having a mental health condition could result in a denied claim.  Even if you have a pre-existing medical condition, you may still be able to get cover, so it’s important to ensure all the information you provide in your application is accurate to have the peace of mind that comes with being protected when you need it.

2.     Risky hobbies or job?  You can still get cover!

Some recreational activities are considered high risk by insurers and may affect your application for life insurance. For example,

  • If you work in a dangerous working environment such as the mining or construction industry.
  • If you’re an adrenaline junky and often take part in activities like bungee jumping or car racing.

In these situations you will be able to get cover, but you might be required to pay a higher premium to balance the cost of the added risk.

3.     Ensure you update your details

It’s easy to buy life insurance and then not think about it for the next 30 years, but if your circumstances change such as you have children, you move house, or get a better paid job, you should be thinking about reviewing your life insurance. If you don’t keep your policy up to date your insurance may not meet your family’s needs and provide them with important protection.

4.     How much insurance do you need? And when?

Compareinsurance.com.au has an online insurance calculator that can give you an understanding of how much insurance would need.  How much would you need to maintain your lifestyle, provide for your dependents, as well as cover your debts and household expenses should you pass away or be diagnosed with a terminal illness?

Research by Asteron Life in October 2013 also revealed that Australians let their life insurance policies lapse approximately 5 years before they’re most likely to need them.

The average lapse on a life insurance policy happens at age 44, and the average claim is made around the age of 49, showing that Australians are letting go of their insurance just a few years before they might need it.

5.     Know your policy

Every life insurance policy is different, so it’s important to make sure you read and understand the policy documents or Product Disclosure Statement. By reading these legal documents thoroughly you will truly understand exactly what you’re buying and when you’re covered.

Conclusion

Overall life insurance is a very reliable type of insurance that provides your family with financial security. If you provide your insurer with all the information they need, and you’re completely honest with them, you can be confident your promise to protect your family’s financial future is secure – even if you’re not around anymore.

Even if you have poor health, you should still be able to get life insurance – you might just have to pay a little more for it.

It’s really important to compare your life insurance options. And a bit of research can go a long way. The best strategy for finding the right life insurance policy is to shop around and compare a number of different quotes from insurers. Make sure that the policy you choose is right for your needs by weighing up the benefits and not necessarily going for the cheapest life insurance premium.

Life is unpredictable and we can’t guarantee what’s around the corner, but we can protect our loved ones. Life insurance provides you with peace of mind knowing that you and your family will be covered if your life is cut short or your lifestyle changes dramatically due to a long-term illness or disability.

Every policy is different, which means that they all have different benefits and different situations that they cover. If you compare multiple life insurance companies, you’ll be sure to find one that has the perfect policy for you.

To compare life insurance and income protection go to www.compareinsurance.com.au/life to compare 11 of Australia’s major insurers.

Can Anyone Get Involved With Investment?

BudgetInvestment is one of those things that many people will associate only with the super-rich. It conjures up images of art-dealers, City bankers and those with vast swathes of property in development.

While it’s true that you require considerable initial capital to be able to make a large amount of money, investment can be for just about anyone willing to give it a go, and there are ways of getting into it without much money, or without too much risk.

Before we explain four options, it’s very important to be aware that investment is inherently risky, and while some avenues are almost guaranteed safety, there’s always a chance that you could lose money, and in some cases, this could be more than what you deposited.

Stocks & Shares

Investing in stocks and shares is probably the most well-known type of investment, and it is quite simply a case of speculating on the fortunes of one or more companies. When you believe their share price is on the up, then you buy, hoping to make a profit as the price of your shares rises, and when it looks as though the price could be going down, you sell. There are many different ways of doing this, but the basic principles are the same. There’s some flexibility too; you could trade over short periods for quick wins, or hold shares over years.

Forex

Forex, short for foreign exchange, is the largest trading market by volume, with trillions changing hands every single day throughout the world. The principles are the same as trading stocks and shares, but this time you’re speculating on the value of one currency against another. Forex is often considered one of the most risky types of investment, but it also offers the chance of very large gains very quickly. So much so, that there are people who make a living wage simply by trading the markets. Learn more here.

Investment Companies

Investment funds generally spread their money across a wide variety of areas, ranging from fine art to precious metals, or they may well work to your own investment parameters. There are all manner of types, with various degrees of risk and reward available. The only way to properly understand what you’re likely to be getting into is to thoroughly research beforehand. Another benefit is that you can do things like investing your money ethically, or into environmentally friendly pursuits.

Banks

The final option is using a well-known bank, perhaps even the one that holds your current account. Generally pretty safe, investing your money with a bank is also the option that will net you the least amount of money. You’ll generally only earn a few percent in interest each year with this method, so it’s better for those long term lump sums that you want to beat inflation with. It’s always worth shopping around, because there’ll be many different rates available, but comparison sites are easy enough to find. You should also read the small print, because there are sometimes introductory rates.

How Selling your Home Quickly Can help you to Make Money

MortgageWhile the recent level of growth in the UK property market may have slowed significantly during February, economists have been quick to allay fears that the recovery may have run its course. In fact, the majority are adamant that prices will remain competitive for the foreseeable future, while also managing to avoid the formation of a dreaded bubble.

With this in mind, there is a clear drive among property developers to expand their portfolio while such an opportunity presents itself. Such growth also provides a unique opportunity for regular home-owners with their foot on the property ladder, however, especially those who are looking invest in a new home or expecting a new family member.

As the demand for property remains high throughout the UK, these individuals can look to sell their home quickly without compromising on its long-term profitability. Consider the following benefits of this and how they may impact on wider economic recovery: -

1. Capitalise on Market Growth

Although the current market may have peaked in terms of bottom line value, there remains an incredible amount of profit to be made by executing a quick and efficient real estate sale. This is also true nationwide, as property prices remain robust outside of London and further north of the Midlands. As a home-owner, you can therefore capitalise on this growth to sell your home for a significant profit, without being forced to endure a long and drawn-out negotiation. In terms of maximising the resale value of your home, your ability to act quickly and in a proactive manner remains the single most pivotal factor

2. Reduce Fees and Commission Costs

Ultimately, selling your home through the traditional methods can be extremely time-consuming. In addition to this, it is also not particularly cost-effective as you will be forced to retain certain professional services for the duration of the process. Alongside standard legal and conveyancing fees, this creates a sizable financial cost that eats away at any potential profit in your home. By looking to solicit the services of a specialist firm such as the House Buyer Bureau, however, you can take a significant step towards reducing these fees and the involvement of costly industry professionals. This not only minimises your up-front financial commitment, but it also means that you are able to maximise the inherent value within your home.

3. Reach-out to a Motivated Group of Buyers

In a robust and prosperous real estate market, the level of positive sentiment that exists can be extremely impactful. This creates a group of cash-rich and motivated buyers, who are either looking to develop a real estate portfolio or invest in a brand new residential abode. Either way, the ability to market your home quickly and push for an expedited sale will help you to reach-out to this demographic, and ultimately achieve the highest possible price for your home. In an ideal scenario, you may even be able to create a certain level of competition among buyers and drive the price up beyond the established value of the property

How to Make Money Playing Poker Online

Starting A Online Poker Playing Business

Can you really make a decent living playing online poker? People would usually say that gambling isn’t a job; you can never get a full-time living with online poker. But more and more people are discovering that if they are good at playing poker they can actually get a hefty amount form playing and in turn make it a full time business.

Online poker has already been a good business for its accessibility; you can play anywhere as long as you have a computer and internet connection. Playing poker for a living requires more than just your love of playing and winning. You need talent, patience, discipline, dedication and disposition to succeed in this kind of money making endeavour.

What You Need To Be A Online Poker Player

First thing to get you on track is to get a computer and internet connection. Sign up for online casino poker sites and get started playing poker. If you’re a new player start out in small stakes games so you could have a low risk start. Pick the rooms for newbie, and get used to the environment. Always remember that walking away is always an option. Don’t risk too much and get the feel of how playing in an online poker table.

There are any advantages in making online poker as a full time business for a living. You don’t have to report to a boss, you are your own boss. You have command of how much time you spend playing/working. You could play anywhere around the world, even at the comfort of your own home. In online poker you don’t get intimidated by other player because you can’t see them and their reactions. You also don’t go waiting around for a table, online poker provides hundreds or even thousands of tables for you to quickly play.

Growing Your Online Poker Playing Business Over Time

When you start getting a hang of earning money from playing online poker, its time to raise the stakes much higher and get yourself some big bucks. Don’t stop playing low stakes tables, keep on playing and winning at these tables to cover any losses in high-risk games. This way even if you play and lose on high-stakes games you wont lose that much.

Also remember that when playing online poker as a business even if its part-time is taxable, so you have to pay your taxes just as if it were regular income. But moving out of the states would deduct a hefty amount from the taxes you pay. This is a way that almost eliminates most income tax but you must still pay your FICA and Medicare taxes.

One last thing to remember is to always have options other than playing online poker, in this kind of game its easy to win big but also lose it big fast. So having alternative sources of income ready would not put you in hot water when bad luck strikes. Seasoned players also say that its also tiring to just play poker, it also gets very repetitive. So always take a break when you lose a number of games in a row.

What is a trading plan and why do you need one?

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Whether trading is your full time job, whether you devote most of your spare time to trading, or whether you only dabble in trading as a hobby, it’s important to recognise that trading is a business. Check out this link to visit Etrade & get started trading online today.

If you want to succeed, then you will need to not only recognise trading as business, but also treat it as a business as well. That means making a trading plan. Just as you wouldn’t start a business without a business plan, you shouldn’t start trading without a trading plan. As they say, “Fail to plan and you plan to fail.”

What is a trading plan?

A trading plan is a set of guidelines or a structure that defines your trading activity. It includes the steps you must follow when entering and exiting trades according to the rules of your trading strategy. It helps you to focus and adhere to your trading strategy, and it can prevent you from making trading mistakes, making impulsive decisions and overtrading.

There is no ‘ideal’ trading plan that should be used by all traders. Just as each trader must find the right trading strategy for him, he must also develop the right trading plan as well. While there are no hard and fast rules for creating a trading plan, there are certain elements that should be incorporated.

Who needs to use a trading plan?

Everyone from novice traders to professionals should have a trading plan. How much you use your trading plan, or the way in which you use your trading plan is up to you. However, the benefits of having a trading plan in place are extensive.

Benefits of a trading plan

Learn from your mistakes

Using a trading plan means you are documenting your decisions and their outcomes. While you may not succeed every time, documenting your mistakes allows you to look back on where you went wrong, make the correct changes, and avoid making the same mistakes in the future.

Manage your risk better

When you create a trading plan, you decide how much risk you are willing to take. By having your risk structure in writing, it can be easier to stay within your boundaries while trading and avoid risky trades.

Know your entry and exit strategies

One of the most important aspects of trading is knowing when to enter and exit the market. Having it all on paper helps you to define your exit and entry strategies, and stick to them. This can help to reduce stress and adhere to your trading strategy.

Stay focused

With your trading plan on paper, it can help you stay focussed on your strategy and can prevent you from making impulsive decisions – even when the market is volatile. Having a trading plan can help you to stick to your strategy and trust in it.

Evaluate

Keeping close documentation on your trading activity not only allows you to learn from your mistakes, it also allows you to look back and evaluate how well your trading strategy is working, helping you to look at the big picture.

How do you create a successful trading plan?

If you want to create a successful trading plan, you need to ask yourself the right questions. Look at your situation now – including what kind of trader you are, how much experience you have, and how much capital you have to trade with – and look at where you want to be – including what you want to achieve and in what timeframe, and what success is to you.

Your trading plan will incorporate your motivation for trading, your attitude to risk, your trading knowledge, and your dedication to trading. Using this information, you can develop a trading plan that helps you to succeed as a trader, and helps you to set and achieve your goals.