Hond Financial

Archive for December, 2008

Building Cash Reserves

Building a financial cushion for your business is never easy. Experts say that businesses should have anywhere from six to nine months worth of income safely stored away in the bank. If your business is grossing $250,000 per month the thought of saving a mere $1.5 million, can either have you dying from laughter or cause you to panic from just realizing this fact. What may be a nice well-advised idea in theory can easily be tossed right out the window when you’re just barely making payroll each month. So how is a small business owner to even begin a prudent savings program for long-term success?

You must realize that your business will need a savings plan, and this is the first step toward better management. The reasons for growing a financial nest egg are strong. Building up a savings will allow you to plan for the future in your business, this way you will have the investment capital necessary to complete your plans. If you have a source of back-up income, this can carry a business through a rough time.

When there are market fluctuations, such as the dramatic increase in gasoline and oil prices, start to affect your business, you may need to dip into your savings to keep operations running smoothly until the difficulties pass. Your savings can support low peak times in your business, so you will have the ability to purchase inventory and cover your payroll until more revenue is generated. Try to remember that you didn’t build your business overnight and you cannot build a business savings account instantly either.

Review your books monthly and see where you can trim expenses, then reroute the savings to a separate account. This will help you to keep on track with cash flow and other financial concerns. While it can be quite alarming to see your cash flowing outward with seemingly no end in sight, it’s better to see it happening and put corrective measures into place, rather than discovering your losses five or six months too late.

As a partial owner of InvestingGuruMinotor, a stock information site, I get asked questions on a daily basis about programs I use to trade better. Something a lot of people inquire about is “What stock trading software do I use, and what other resources do I recommend?” There are lots of questions I hear over and over, and frankly it gets a little burdening.

I figured I would answer a few of these questions in a public form so hopefully I wont have to answer them repeatedly.

Brokers: I strongly suggest you look into using one of these two day trading software programs: The two that I really like are cybertrader pro and MBTrading, with a preference for MBTrading. My bias is based simply on past experience. Keep in mind we are talking day trading here, not investing. The major things you need to look for is speed of execution and customer service when you’re choosing a provider for daytrading. Commissions are really not as important as you would think. These companies are very competitive now, and the fee structures are not that varied any longer. Having a trade go through slowly, or even worse incorrectly, can end up costing you hundreds of dollars in time and money compared to the slight additional cost of choosing the right broker.

I often make the somewhat silly analogy of “trying to trade with anything other then a fast, point and click day trading system like MBTrading or CyberTrader, is like trying to win the Indianapolis 500 with your family mini-van.” The other thing you need to be cautious of is people recommending “their own” discount broker. Most have never even seen an MBTrading or CyberTrader system. Suffice to say, the differences are drastic.

Quotes and Data Feed: Depending on which broker you choose, you may also need a stand-alone quote/data feed. The easiest (and probably best) thing to do in that situation is find out what the broker recommends. They have worked closely with different data suppliers and should be able to tell you which one is doing the best job with their service. No matter what service you get, two things you need need need is Level II quotes for both the NASDAQ and Dow stock exchanges.

trading stocks onine

Day trading is an extremely lucrative activity that exists in the stock markets that enables you to buy and sell stocks within a single day resulting in substantial gains or losses for its owners. It is good to start by learning the fundamental principles of day trading. It is not a simple business to master, environments change rapidly so anticipate existing opportunities and take the initiative to learn from any failures you may meet in the process.

This kind of activity serves two major purposes of the stock market-it provides liquidity and propels the market to keep running. Up to date information is essential to make an important decision.

You can become a professional by learning the secrets of day trading. The results are unforeseen and cannot be forecasted. A day trader must have all the essential equipment to empower him for success in this difficult business.

Online day trading is similar to any other forms of businesses- there is no 100% guarantee that you can make tons of money from this business. Is day trading for everyone? The first thing you must know is day traders only risk capital, which is something they can actually afford to lose.

The fact to remember is, online day traders in most times hold on to a position for only a few minutes. Always strive to develop your trading skills with training. One needs to be a quick thinker and have an unflinching heart to move through the nooks and crannies of this tricky business. Another essential characteristic is a solid memory and the wisdom to avoid losing money.

Do not be led by your own emotions when trading, instead follow the trends of the stock market. The end goal of a day trader is to generate profit in a single day. Risk management is essential if you wish to become a profitable trader.

Make sure that you already understand the mechanics of Forex day trading before you participate. One common characteristic is day trader will often watch the computer screen all day to follow the rise and fall of the stock market. One needs to have access to the right information at the right time to be able to make a successful decision.

You can be assured that people who do day trading would testify that it is a really thrilling business. Day traders are confident in their own indicatory but they too know that there is no 100% in life that it always works. It is not advisable to sell on bearish days and even fatal to buy on a good one.

True to its terms, day trading is the buying and selling of stocks on a single day. Be mindful that this fashion of trading carries a certain amount of risk. Obviously, it is not something one can do without careful thought.

Day trading carries a certain amount of risk. Do you have the skills to make money out of day trading? It is quite common for an online day trader to lose money out of every nine trades and still make a killing by succeeding in the tenth trade. It may be pretty rewarding once you get to make it profitable for you, but it comes with a mighty risk.

There are a number of important techniques that can be used on Forex and many points that both present and potential investors should be conscience of, one of the most important involving Forex pivot points. Forex is the largest financial market in the world, and yet it is really unfamiliar terrain to retail traders.

Forex Pivot Points

Using pivot points as a trading strategy has been around for a very long time and was actually originally used by floor traders. The Forex pivot points refer to the levels at which the market direction changes for a day. Forex pivot points can be determined by doing some simple arithmetic using the previous days’ high, low and close.

A top reason that these pivot points are so popular is because they are predictive and therefore can help significantly in terms of an investor’s long term profit. Many traders these days monitor these pivot points and uses them to maximize profit. There are a number of different formulas that can be used to compute the pivot points.

There are also a few different tools that can be used in conjunction with the formula in order to profit from Forex pivot points. There is the breakout trade, which is a type of trade in which the investor would have their sell entry order just below the lower channel line with a stop order just above the upper channel line and a target of S1.

There is also the pullback trade, in which the investor places an entry order below support and then a stop is placed above the pullback and a target set for S2. The breakout of resistance often works well, and this is another very good set up for a trade.  Here an entry order is placed just above the upper channel line, with a stop just below the lower channel line and the first target would be the pivot line.

Benefits

In Forex trading, a small margin account can control a signicant amount of currency. There are a number of benefits that are provided by Forex trading, one being leverage. This leverage is what gives the trader the ability to make significant profits while still keeping their risk capital small.

Forex trading is also available around the clock, as from Sunday evening to Friday afternoon EST the Forex market never sleeps, and this is very advantageous to those investors who want to trade on a part-time basis because then they are able to do it whenever they want, whenever they have the time. 

Forex Pivot Points are just some of the techniques you can find on my blog http://www.top-forex-secrets.com.  Also check out the GetLocalHelp.com community site to find help in your local area.

Several factors must be considered when choosing the best Forex software.

When purchasing the best Forex Software, how does one make the choice?  By being aware of your own educational level and experience, of course.  Investing in software that is poorly written and designed can be a complete waste of time and money.

And who would really want to blow themselves out of the water before they have even left the dock, right?

The correct software will help novice investors understand several key pieces of information relating to forex trading.

First and foremost, the very concept itself of international exchange, and foreign currency. Can we say “duh”? If one has no idea as to even the very basic principles, how can one expect any measure of success?

Secondly, the economics involved. There are three levels that are looked at: local, national and international.  It’s not rocket science: how can you be successful at trading without knowing basic economics?

Last, how exactly are interest rates applied to the transaction when they are factored into a trade?

Since most novice forex traders will be pretty thoroughly lost in the beginning, it is a good idea to try to find a program that has a “customer care” feature, meaning that if you get suck, there is an 800 number you can call to get help. 

Live chat is sometimes included as part of a program, so when you need help you can instant message someone and they can guide you through the problem live over the internet.

It is also important to choose a program with good security features. Goes with out saying, right? Here, you are playing with your hard earned dollars.  When trading online, you not only have to worry about protecting your personal information, but online predators as well. Hackers are everywhere just waiting to pounce. The best forex software will have an SSL encryption of 128 bits, it is also a good idea to get a program that has a daily auto back up feature, to make sure nothing is unexpectedly lost in the event of a system problem.

And finally, investors should look for 24-hour system maintenance on order to address any difficulties of a technical nature, as well as 24-hour technical support included with the best Forex Software.

Given the economic downturn, there is a flood of Americans in search of bankruptcy advice. The creditors are calling and they are at their wit’s end. Many people already have destroyed credit, so they’re looking for any ounce of relief to help them start over again. Since bankruptcy law is a complex web, there are many misconceptions about it.

Bankruptcy advice has gotten more liberal over the years due to changing laws. To avoid scores of debtors flooding onto the streets with no property and nothing left to live for, the laws have changed to allow debtors to keep certain property, despite filing for bankruptcy. The debtor may keep up to $2,500 in cash, $2,400 in auto equity and unlimited 401k funds. Additionally, by law, employers cannot fire an employee who files for bankruptcy, although potential employers can choose not to hire a new employee based on that factor. Often with a filing, debtors will need to attend credit restoration and debt management courses.

When you’re seeking advice from a credit repair attorney, be sure to double-check what can and can’t be discharged. For instance, you’ll still have to pay off Uncle Sam if you owe taxes for the past thirty six months. However, if you have personal income taxes over three years old, then you can discharge them through bankruptcy. Fiduciary taxes cannot be discharged, nor can most student loans and liens. If you owe child support or alimony, you will still have to pay up. If you don’t list debts on your bankruptcy petition, then they will not be covered. If you have debts from drunk driving or other “willful and malicious” harm, you’ll still have to pay your dues. However, there are many things that can be removed when you file for bankruptcy, such as all unsecured credit card debt, wage garnishments, utility termination, fraudulent credit claims and foreclosure.

Most bankruptcy advice tells you to choose either Chapter 7 or Chapter 13. Chapter 7, also known as “straight” bankruptcy or “liquidation,” requires a debtor to give up property which will be sold off to repay creditors. Chapter 13, or “debt adjustment” bankruptcy, requires a debtor to file a plan to pay part of the debts, while liquidating the rest. Chapter 11 is for businesses and large-debt individuals, while Chapter 12 is reserved for family farmers. Remember that bankruptcy should never be viewed as an “easy way out” for repairs to a financial situation, but rather, as a last resort.

If given the opportunity most people would choose to live free and clear of all bills. That includes a home mortgage, a new car and credit cards. There would be enough money each month so that they could put back towards retirement or education. In a perfect world everyone would have exactly what they wanted and needed. But this is not a perfect world. Most people rely on credit cards, loans and mortgages in order to live. These allow them to live the way they want but it also puts them in bad credit.

To find more bankruptcy advice “Click Here“

If you have an interest in filing for bankruptcy online, whether for personal or business bankruptcy, there are a few companies online that you are going to want to look at.

Find a Reputable Company

If you want to go through with filing for bankruptcy online, make sure that you work with a honest company. You will want to do some homework on their background, to discover how long they have been in business and what they have to offer.

With the correct online company you should be able to receive all that you need for filing chapter 7 or chapter 13 bankruptcies, and you will be given all of the papers that you need for filing and you can fill them out online.

This makes the entire process as easy and convenient for you as possible, and most importantly, you can get instructions that are easy to understand, detailed information about the bankruptcy process and a current copy of the US Bankruptcy code. The right company will also offer help from a nationwide network of lawyers from a fortune 500 company.

Keep In Mind

If you are filing for bankruptcy online, there are several things that you are going to want to keep in mind. For one, this is not a procedure that can be rushed, and you are going to need to check and double check everything before sending in your claim.

Be careful, you do not want to make a error and end up being denied because of this. As long as you are dealing with the appropriate company, one that will be there and guide you on the completion of your application, you should have no problems.

As well there’s the issue of a joint petition which is the filing of a single petition by an individual person and their husband or wife. Only those who are married on the filing date can file for a joint petition, and no one else.

There is no rule that you use an attorney to file for bankruptcy, so if you think that filing for bankruptcy online is the right option for you, you should do it. Just make sure that you read all the fine print and are sure of your decision before going through with it. You also only want to file for bankruptcy online if you are using a trustworthy company.

Your credit information may be of no use to you. If you’re not planning on buying a house or renting an apartment, buying a car, taking out a loan, paying for college or getting a new credit card, then you won’t need to worry about getting your free credit score. However, most people need to visit www.AnnualCreditReport.com to get a listing of all late payments, charge-offs, debts, collections, loans, liens and types of credit accounts open, so they can get an honest appraisal of their borrowing power. Credit report services from Equifax, Experian and TransUnion each will offer you a free report once a year to help you see where you are and where you need to be financially.

To improve your credit information, you’ll need to obviously pay off all existing debts, but this is easier said than done, isn’t it? Some people like to go through a credit counselor or debt relief agency, while others do it on their own through responsible planning. After looking at the credit report services files, you can write down all the balances and interest rates you need to keep track of. Write down your monthly income after taxes and deduct your rent or mortgage payment, as well as other monthly expenses like utilities, insurance, loan payments and groceries. Then you’ll know how much you have remaining to pay off your debts. Consider ways to reduce your spending, such as car-pooling to work, eating out less often or turning off your cable for a little while. Also, brainstorm whether you can make supplemental income somehow. To develop a good plan, pay off your minimum monthly debt payments first and then use the remaining to pay off the highest interest rate and highest balance. Soon you’ll be on your way toward improving credit scores.

To file a dispute about your credit information, you should write a letter to each of the three of the credit bureaus, which are Equifax, Experian and TransUnion. In your letter, include the date, your name, address, phone number and social security number. All you have to put is hat the data is wrong and can they update it and then list the wrong info and explain why its wrong. Attach a marked copy of your credit score report and include all previous communication, account records or statements that will help verify your version of the truth. Mail is the best way to dispute with Equifax and TransUnion, while Experian only allows online disputes. The credit bureaus then have 30 days to investigate and repair your credit info. Once they have done, they will write you a letter letting you know what was or was not updated. If you’re not happy with the contents of the letter, then you can try to resubmit with different documents or go directly to the creditor to resolve.

Often, looking at your credit information is the only way of finding an identity theft if you are not using one of the identity theft products such as Life Lock who continually watch your credit information for you and watch for any strange activity. If you find unusual in your credit information that you have positively no explanation for, a loan, a new laptop on credit etc. get in touch with the bureaus asap and police for help. Without any form of protection, checking your credit information is probably the only chance to avoid identity theft running amok. It will not prevent it from occurring it but at least it stops it.

Looking at your credit information can be daunting at first if you’ve had a back track record. The worst thing you can do is put everything off and wait for it to go away. If the creditors are really hounding you and you’re not sure how you’ll have the money to cover it all, then your best bet is going through a credit counselor or debt relief agency. If you have one or two bills that are behind or have paid most of your debts off and are just looking to start anew, then you can handle this. The last 24 months constitute 60% of your credit score, so you can turn things around this year simply by paying your bills regularly, in full and on-time.

Are all the credit cards the same? Before you compare the various credit cards offered by various merchants and banks, you need to know a few main types of credit cards. This will assist you in deciding which credit card suits you better.

Those who need to entertain clients or travel on short notices may require more funds and it is difficult if you have a fixed spending limit. Without spending limits, charge cards will be suitable for those who need to spend a lot of money on entertaining their clients. They offer short term loans without penalties if you pay off in full every month. Diners Cards and American Express offer such cards for travel and entertainment. For those who require extension for payments of bills, American Express offers other payment options. Due to the different schemes available, some people may use the terms interchangeably, but these two are basically different.

The second type of major cards is the credit card we are familiar with. The main credit card companies are Visa and Master Cards, and they work together with banks to issue the credit cards to you. The banks will determine the spending limit on your cards based on your income level. Different cards have different terms and conditions. You can choose to pay in full each month, or pay the minimum amount stated and incur interest rates on your existing payments on top of new payments. Due to the nature of unsecured loans, interest rates are considerably higher and over time, they may add up to huge sums.

Business Credit Cards are another type of cards. For those with small businesess, they may apply for business credit cards, even though these cards are not exclusive to them. Such cards may have higher spending limits while charging lower interest rates. Small businesses with cash flow issues will be able to tide over tough times easily because there are extensions to the payments.

Last but not least, various big companies offer retail store cards. Some are linked to shopping malls or other retail stores or we have fleet cards, for various fuel purchases as well. Since there is such a huge variety of retail store cards, the terms and conditions are definitely different. These cards are usually only accepted in specific countries.

You can select what type of cards, such as charge cards, credit cards, business credit cards and retail store cards, offers the best options for your needs since there are so many different types of terms and conditions and methods of payment.

Bankruptcy Legalities

Significant changes in consumer bankruptcy laws took effect on October 17, 2005, with passage of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

Before that time, filing for chapter 7 bankruptcies was an easy way out of financial obligations.

Before the changes in the law were enforced, many people were lacking in good judgment on how they used their credit, which created so much debt they would just file for bankruptcy as a quick solution.

Now that the law has changed, there are more restrictions for filing chapter 7.

Before the 2005 revision, filers could choose which code they wanted to file under.

Income did not matter.

The most obvious change was made in how a person files, based on their income; for example, people that filed for bankruptcy under Chapter 13 of the Bankruptcy Code, have the opportunity to repay some or all the debts in their name, in better terms, i.e. lower or no interest and that is unlike Chapter 7 which involves liquidation of assets.

The new law added certain limitations to be placed on bankruptcy lawyers.

It may be tougher now to find a lawyer who will represent you in a bankruptcy case.

In addition to the new income restrictions, there is also mandatory counseling that debtors must complete before and after filing for bankruptcy chapter 7.

Pre-filing, individuals must complete credit counseling and post-filing and also are required to complete some type of financial budgeting plan.

In light of our current economic situation, many feel these new standards should have been executed several years earlier.

These financial tools are designed to help people become better aware of their spending habits and to assist them in becoming more financially stable.

Similar to the changes in bankruptcy laws for chapter 7, filers for chapter 13 must provide income reports of their personal finances.

All disposable income left after paying actual living expenses must now go into their repayment plan.

However, now the IRS has set in place a system within each state to determine what the accepted living expense level will be, based on the average income earning per capita. Filing for bankruptcy is not a decision to take lightly, therefore you would do good to consult an attorney that can help you better understand the legalities that could effect your decision.