Tag: #DIY

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Trade-The Application Principle

Trade is an interesting concept with multiple layers of definition and application

In fundamental economics trade is defined as the action of buying and selling of goods and services.

In educational terms it is a skilled job, typically one requiring manual skills and special training

In terms of the market, trade gets a slightly more complex definition but it equates out to the pursuit of making a profit and building a sizable income stream whether that is earned from the Stock Market or the Foreign Exchange Market. Little

Finally, from a personal view trade could be defined as putting old things down in order to acquire newness.

What do we mean by this??

In reality the best way these can all be understood is to combine the definitions themselves as well as employing the use of the first two pillars of learning and investing as well. So, let’s paint this picture together.

In order to begin learning how to trade in the stock market or forex market one has to prioritize your time and instead of doing other things like watching tv, social gatherings, or just time spent doing nothing productive you may begin to trade (swap) the habit of laziness out for productivity.

As time progresses and you invest that time into developing your skills, training and aptitude in the art of trading. Naturally creating habits of productivity in other areas of your life because you chose to trade old things in order to acquire something new.

One of the biggest trading points that a large majority of us can relate to is the time for money trade made at jobs 40+ hours per week. We are fairly confident that 3 out of 5 people at least would love to make that particular trade end so that they could spend more time with family, traveling, more trading or doing whatever other activity it is that they love. Ultimately, now that you have decided to make that habit trade look at yourself now and realize that you learned the skill of trade that derives from the educational perspective giving you the ability to trade as it relates to the market definition and you have accomplished this from trading your old mindset for a new mindset resulting in earning yourself a new income stream compounding dollars all from making a decision. The benefit of all of these new-found aspects of trade is having armed yourself with the fresh financial flexibility.

Conclusively I would like to leave you with this quote:

“A man is worked upon by what he works on. He may carve out his circumstances, but his circumstances will carve him out as well.” -Frederick Douglass, The Portable Fredrick Douglass

You will define things in your life as you go as well those same things defining you so be mindful of what you do with and for yourself daily, you do not have to reinvent the wheel but you can customize your tread on it.

We will never make you do anything, we cannot but we will continuously offer our sincere and researched methods of improving your life as we strive to improve our own.  We must lift as we climb. So, if you are universally somewhere in life that you do not want to be first a decision must be made to change. Then consciously grasp that mentally, emotionally, financially it is within your capability and obligation to begin those changes learn what it takes, invest the time/money into crafting those changes and watch your new trade gain new profits in intellect and dollars.   Learn. Invest. Trade

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Investing- Part 2- Planting The Money Tree

 

Investing-   

expend money with the expectation of achieving a profit or material result by putting it into financial schemes, shares, or property, or by using it to develop a commercial venture.

 

One of the most important things that you can do as an investor is to get an early start on investing. The old saying “the early bird gets the worm,” certainly applies to investing in a big way. Investing is defined as making an investment in order to earn a profit and earning that profit will be much easier to do if you get an early start. Investing at a young age isn’t always easy, but the benefits are numerous and can’t be overlooked, but just because you may not have started investing at a young age does not mean you cannot start today. Thankfully there are no age regulations or requirements when it comes to that.

A few of the most essential and beneficial reasons to invest is residual income and compounding returns which are extremely powerful over the long run, and the sooner you get started the greater your chance is to take advantage of this. Put more simply this is the power of the time value of money. Regular investments in an investment portfolio or a retirement account can lead to huge compounding benefits. Additionally, when you begin to invest you are putting yourself ahead in the world of personal finance as a whole. By growing your investments over time, you will be able to afford things that others can’t. Your personal finances are bound to get tight at times throughout your life as most of us well know and investing can help in those tight times.

*Golden Nugget* Investing definitely helps develop positive spending habits. Those who invest early on are much less likely to have issues with overstepping their boundaries in spending over the long run. Investing teaches important lessons and the earlier you are able to learn those lessons the more you can benefit.

The younger generation is a tech-savvy one, so the benefit of that to everyone is that we are able to study, research and apply online investing tools and techniques. Getting started has never been more accessible than now online trading platforms provide countless opportunities for both fundamental and technical analysis, as do chat rooms and financial and educational websites. Technology, including online opportunities, social media, and apps, can all contribute to a new investor’s knowledge base, experience, confidence, and expertise.

If you do not believe investing works for whatever reason or have doubts about getting started maybe you should take a look at this individual. “The Oracle of Omaha”

Before we depart today we want to leave you with a fun tool to play around with to see what it would be like to start making some investments and experience for yourself the power of this skill.  Also, we want to impart you with a few more advantages of taking a step to learn/start investing.

Conclusively, we hope that today you will be able to take something away from the learning of investing, so if you read part 1 and now have part 2 combined you should be well prepared for our next step in this journey which is to Trade …the Application Principle..

As always we thank you for your time with us. Invest in yourself and invest some money into something beneficial just to see what might happen…See you next week.

 

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Know Yourself, Know Your Worth

 

  • Critical because self-awareness plays into objective view of self
  • Plays into objective view of your personal narrative
  • Know what you want and write it down
  • STICK TO PLAN-
  • Be able to reevaluate your performance

“Know Thyself”. This concise yet impactful quote was written on the walls of the temple of Apollo at Delphi over 2000 years ago. Despite being written before the market as we know it today existed, this simple statement absolutely impacts the investments and applications we commit ourselves to today. What does it truly mean to know yourself? Does it mean to know what your name is or what you look like in the mirror? If we relegate this saying to such shallow terms, we strip it of its intended meaning. Knowing yourself is having the self-awareness to understand your actions and the ability to look at yourself objectively.

(What does looking at yourself “objectively”  mean?) -To truly look at your inner-self and reflect upon your individual strengths, weaknesses, and opportunities within yourself that will extract/demand personal growth over time This is a very simplified definition but it encompasses the overall theme.

“How does my own behavior come into play when I’m investing and the things I invest in?”, you may ask. The answer may be more profound than you originally thought. When we look at spending/investing situations, we apply our own “filter” or personal interpretation to what we see and this can be a poor habit. We have to understand that when it comes to making sound financial decisions, we have to treat it as if it were a living breathing entity.  When dealing with it, we have to listen and watch it, instead of layering our own values and systems to it. For example, think of the trading market as an actual person. Would it not be rude of me to apply my own sense of what’s right and wrong to him without once listening and understanding what he is saying? This is what happens when we try to add our self-indications and assumed values and bend the market to make it conform to our individual assessment/opinion. The forex market (Foreign Exchange currency marking) alone is a $5.3 trillion dollar a day industry. It will not be dictated or control by any one person, regardless of what their name, title, or status is. Trying to control that market or anything else and shape it to your will is a quick way to be washed away and disappointed.

I have just painted a fairly grim picture but all hope is not lost!

In a nutshell, Knowing Yourself goes like this according to our last two posts….

Step 1. Admitting your weakness

Know that you spend money in terrible ways, or that I always say “the love of money is the root of all evil”  realizing that you are not taking care of yourself physically like you should be and that you have made excuses about it.

Step 2. Reminding yourself of your strengths

Truly acknowledge and empower yourself with a precise and calculated change of mindset and put together a plan to correct your downfalls while solidifying your strengths.

Step 3. STICK TO THE PLAN

Do Not Get allow yourself to deviate from self-improvement. Go against your normal and easy path.  Write things down, make a collage, pictures, notes or whatever may be good enough for you to constantly remind yourself of the growth you are committed to making.

We must analyze ourselves in order to decipher out the bad from the good. We must train our subconscious to move our conscious being and be ready to move. The only way to control and tame this beast is to train it to take you where you want to go. This article is definitely deeper in the “finding yourself” element but that is exactly what we want for you because when we speak next week were are really going to begin diving into the financial realm of taking your money to a different place…

As always thank you humbly for reading and take your time, when you could have been doing so many different things and remember…

Learn. Invest. Trade.

 

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Money Mindset

To those of us that have for years watched news channels, seen little letters beside bright red and green numbers and heard crazy jargon about “The DOW/S&P500/NASDAQ lost XYZ points today” and wondered “What the heck does all that mean?!?!?”, welcome to Dollars and Decisions.

Dollars and Decisions is a product of the minds of traders spanning across different ages and ranges of experience. We aim to create a more user-friendly environment for learning, teaching, and experience about charts and other investment jargon while using day-to-day conversation and understandable language. As you continue to follow us, we also will want to follow you as we trade together.

Money is a sensitive subject for most people because of the infinite range of possible financial situations.  Rather than attempt to address each situation individually, we want to help you obtain a correct view of your finances and keep your emotional intelligence (EQ) in check.

Consumers are powerfully influenced by their emotions and environmental cues, as well as how options are presented to them. By becoming aware of these biases, we could develop a better pattern of thinking and decision making. On a daily basis, consumers spend billions of dollars for different reasons and make trades on the individual stocks/forex markets/mutual funds etc. based on what they think they know, information they’ve read, past market rises and falls as well as their emotional state, which unfortunately often accounts for the biggest portion of decision making. It is important to determine if you’re spending with your heart or your head at the supermarket and especially when investing and trading.

We at Dollars and Decisions understand the significant role that emotions play in any money venture. Our goal is to empower and enlighten you on the trading and investing processes while strengthening the mental aspect that comes with it, resulting in sculpted minds and habits leading to becoming better and more profitable investors/traders.

Before entering the market I took some time to research topics involving ways we spend our money and controlling that, I was able to discover ways to improve my emotional state by first, figuring out what type of spender I was then secondly, getting a grip on that so that I would begin to practice better financial habits.

Once those two key factors were understood and more in my grasp I was then confident enough to begin my trading and investing education. Like you, I had to start somewhere as they always say, because like many of us earning a salary these days is just simply not enough. So, with all of that said let’s get your mind right first and the next time we talk we may begin to talk about your dollars and decisions.

Grab a pen/pencil and some paper/notebook, write these things down so that you have the information in front of you.

  1. Find out what type of spender/consumer you are. (Spender)
  2. Figure out which method would be best for you to begin forming new habits. (Grip)
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