Friday, November 30, 2012

Stock Option Trading Strategies

Stock options are derivatives whose values are based on the market value of a stock. When an option is sold, a contract exists between the seller, also known as the writer, and the buyer. This contract gives the buyer the choice of either buying from or selling to the writer the stock in question. Following is some more information about stock options and option trading strategies.
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Tuesday, November 27, 2012

Surviving and Thriving in the New American Retirement System

For decades, there was a social contract in America between workers and businesses. In exchange for a lifetime of service, companies provided their long-term associates with pension plans and health care benefits, creating a safety net that when combined with social security helped ensure a comfortable retirement. Today, however, the middle class face nothing short of a crisis – social security is failing, the traditional pension has gone by the wayside, and the rising cost of health care have made it almost impossible for most businesses to afford decent coverage while withstanding calls from investors to maintain their profitability.
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Good Investments Vs Bad Investments

Financial education will allow you to decide which ones are good and bad investments. You need to identify the good, and the bad investment, since it is going to be your very own source of passive income. Remember that anything that happens to your investments may also affect your life and even your very own future.

If you have committed an error on investing in a bad investment, you would have learnt that you may need to work a lot harder. These are the consequences of a bad decision-making resulting bad investments. In contrast to this scenario, you can also look at the requirement of good investments.
Good investments, on the other hand, will yield positive results for you and your family. If you will come to think of it, good investments may even turn out to reduce your working years. You need to understand on how to distinguish the good from the bad.
There are different types of investments. All of these things may turn out to be a good investment or a bad investment depending on the timing. A background in financial education will tell you that it is all about timing, and research in order to come up with a good decision.
Stocks, commodities, and currencies are the common sources of passive income otherwise known as investments. If you are going to have an investment, make sure that you have done your research, in order to time all of them correctly, and of course, it is also essential that you take some amounts of risk.
If you are going to have stocks, commodities or even currencies as your investment, you should first consider if you are going to have it for a very long time or you are simply going to have it for the next 3 years. This decision is significant because primarily, if you want to have a short-term goal with investments, it only makes a good investment if it rises up in value within a short time.
On the other hand, if you are going to have the shares for the next 20-30 years, you need to think of things in the long run. Is this investment still going to be beneficial 20 years down the road? One of the things you need to remember if you are not planning to cash in anytime soon is to make sure that you purchase during recession.
It makes sense when buying stocks, commodities and currencies during the recession since everyone knows that its value would decrease. This means that you have to spend less for each share that you are going to have. Since the economy gets to recover for every plunge, the stocks, currencies and even commodities by then would normalize 20 years later. This is an example of speculation. Though not all speculations are successful, you should try this on some of your investments.
A bad investment, on the other hand, is when you do not practice speculation at all but rather just listen with the press releases made on news networks. Whether investing on stocks, commodities or currencies, if you are not doing your own research, you will be blindsided by a great number of things.
Among the many factors that may affect your investment is the fictitious press releases made by news networks. There are times when brokerage firms announce a sudden drop on stocks' value just for you to sell your share. Once you sold them your share, you would be surprised when the next thing that would happen is a sudden increase in value.
This only means that you need to learn, and have a background on financial education, in order to determine which ones are turning out to be good and bad investments. From this premise, you can even increase your chance of financial success.

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Monday, November 26, 2012

Inventory Management Software

The introduction of microcomputers revolutionized business processes related to inventory management. For the first time, automated tools that assist warehouse and inventory managers with asset tracking, barcoding, order management, and service management were available in nearly every work environment.

Businesses that were quick to invest in inventory management software enjoyed enormous competitive advantage compared to those that were hesitant to modernize. Today, investment in reliable, innovative inventory management software is key to the success of businesses everywhere.

Who needs inventory management?
For businesses that deal with tangible products, inventory management is a key element of that business’s success. Keeping tabs on where products are being stored, which vendors they come from, and how long they have been sitting on warehouse shelves are all key elements to successful asset management for businesses, no matter how small or large they might be.

Regardless of whether or not the products that one’s business sells are perishable, keeping a good sense of where they’re resting, how long they’ve been there, and how quickly they should be out the door is a crucial factor in maximizing productivity and keeping inventory upkeep, storage, and associated costs low. 

If your business has an inventory, you should be concerned with the performance, efficacy, efficiency, and reliability of the inventory management software your business uses. If your business doesn’t use software to manage inventory – then you should be seriously concerned about losses in revenue and productivity that are probably affecting your business. Simply stated: almost every business needs some kind of inventory management software like ERP software, no matter how big or small the firm might happen to be.

What does inventory management software do?
The specifics associated with a particular brand of inventory management software, or the implementation of a certain software package, can depend largely upon the kind of assets that are being managed. However, there are a few general rules of thumb regarding inventory management software capabilities. First, the software is key to helping businesses ensure that they are able to stick to an ideal balance between having an overstock of inventory, and having too little inventory to fulfill demands.

Second, businesses with multiple locations and / or particularly large warehousing facilities depend upon a unified inventory management system in order to allow staff and management at remote locations to determine where supplies or assets they require are located, and to manage the transfer for assets between one point to the next. This makes acquisition of necessary items within the firm more streamlined, and also helps prohibit the loss of inventory as a result of graft.

In addition, most warehouse and receiving dock managers find that inventory management software that can handle rapid entry of new assets being received is a key element to maintaining efficiency. Further, in modern warehouse environments, inventory management software and systems play an essential role in managing the rate at which items are picked, packed, and shipped.
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Thursday, November 22, 2012

Return On Equity Vs. Return On Capital

Return on Equity indicates how well a company is doing with the money it has now, whereas Return on Capital indicates how well it will do with further Capital.

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Monday, November 19, 2012

Saver Or Investor - Which Is Best?

What's the difference between a Saver and an Investor and who is the most successful?
Taking a closer look at this question there is no doubt that there is a close relationship between being a successful investor and a good saver. While many successful investors may 'flaunt' their wealth, the most successful tend to be very astute and conscious of where every dollar is being spent and hence showing all the traits of a successful saver.

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Saturday, November 17, 2012

7 Ways Not To Go Into Debt This Christmas

Things are rough this year for many families across the country, but that doesn’t mean that you should add to your debt to make up for it this holiday season. It is okay to tell your children that Santa is broke this year. They probably already know that something is up either thanks to the news on TV or their incredible sixth sense about how grownups are feeling. One of the worst things that you can do though is trying to keep up with the status quo. Here are seven great ways to avoid adding to your debt this Christmas.

1. Use Your Credit Card Reward Points – My wife and I love to earn reward points with our credit card. We use the points at the end of each year as a way to get free gift cards that we ultimately give to our friends and family members each Christmas. Throughout the year my wife and I use our PerkStreet Financial debt card and Simmons FirstVisa Platinum Rewards credit card to earn reward points. Those reward points that we earned throughout the year help supplement our gift giving and helps to keep us from going into debt this Christmas and every holiday season.
2. Earn Free Gift Cards – One thing that I love during the holidays are the deals that retailers and especially restaurants give when you purchase gift cards to give as gifts. Many national restaurant chains offer deals such as giving away a free $10 gift card when you purchase $25 worth of gift cards. These can be great ways to get gift cards to give to your loved ones during the holidays doing something that you normally do anyway (go out to eat). You can also use these gift cards to save you money while eating out at restaurants as well. Whether you give these extra gift cards to friends or save them for yourself, they can be a great way to save money and avoid debt this Christmas.
3. Comparison Shop Online & With Smart Phone – One thing that a friend said to me recently really struck a chord. He said that he never pays retail prices online for anything. He taught me that he always looks for deals and checks comparison sites before making a purchase. He also checks websites like to find some of the best online coupons before buying any items or even services online. This was a great tip that has ultimately saved me a lot of money over the past year or so. Now you can also compare prices right on your smart phone as well.

4. Buy And Sell Unwanted Gift Cards – There are several websites such as that let you buy and sell unwanted gift cards. Most of the time, you can purchase gift cards for a discounted price. Recently on, you could buy a $25 gift card for $20 or less at certain retailers. There are several other websites that let you buy, sell, and trade unwanted gift cards as well such as and Some current deals on gift cards on Plastic Jungle let you buy gift cards at the following discounts for these retailers: 15% off at JC Penny, 20% off at Boston Market, 10% at Pottery Barn, and many other national brands.
5. Make Hard Cuts To Your List – Do your aunts and cousins really need a Christmas gift from you this year? Would they understand if you told them that you are only giving gifts to your immediate family this year in order to save money and avoid adding to your debt this Christmas season? They will most likely understand your plight because we have all been struggling these past few years.
6. Layaway Is Making A Comeback – Wal-Mart hit the mark this holiday season by bringing back layaway, and they are leading the charge among other retailers bringing back the once popular holiday staple. Using layaway is a great way to force you to space out the payments for your gifts this holiday season. Instead of going further into debt this Christmas, using layaway can help you purchase your gifts this year with payments that you can afford.
7. Set Spending Limits This Year – The hardest word to say in the English language is no. No! But, it is a critical one in my family when it comes to staying out of debt this Christmas. My wife and I set a spending limit for the holidays and all of the gifts we give. While budgeting is not a fun topic for anyone, it is incredibly important. You have to have a spending plan and set a limit to keep yourself and your family out of debt this Christmas.
Did you already miss the boat this year? Now is the time to start thinking about next year. Do you spend the average $500 during the holidays on gifts? If you saved $40 per month or $20 per paycheck, you could have a debt free Christmas next year. It is time to bring back the Christmas Club Savings Accounts, or you can just create your own.

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Thursday, November 15, 2012

Introduction to HEDGE FUNDS

This Video lesson from KhanAcademy talks about introduction to HEDGE FUNDS

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Wednesday, November 14, 2012

FRM 2013 Handbook + Test Bank: FRM Part I/Part II

Financial Risk Manager Handbook + Test Bank: FRM Part I / Part II (Wiley Finance) by Philippe Jorion and GARP (Global Association of Risk Professionals)
English | 2010-12-28 | ISBN: 0470904011 | 812 pages | PDF | 141 MB

Filled with in-depth insights and practical advice, the Financial Risk Manager Handbook is the core text for risk management training programs worldwide. Presented in a clear and consistent fashion, this completely updated Sixth Edition, mirrors recent updates to the new two-level Financial Risk Manager (FRM) exam, and is fully supported by GARP as the trusted way to prepare for the rigorous and renowned FRM certification. This valuable new edition includes an exclusive collection of interactive multiple-choice questions from recent FRM exams.

Financial Risk Manager Handbook, Sixth Edition supports candidates studying for the Global Association of Risk Professional's (GARP) annual FRM exam and prepares you to assess and control risk in today's rapidly changing financial world. Authored by renowned risk management expert Philippe Jorion, with the full support of GARP, this definitive guide summarizes the core body of knowledge for financial risk managers.

- Offers valuable insights on managing market, credit, operational, and liquidity risk;
- Examines the importance of structured products, futures, options, and other derivative instruments;
- Contains new material on extreme value theory, techniques in operational risk management, and corporate risk management.

Financial Risk Manager Handbook is the most comprehensive guide on this subject, and will help you stay current on best practices in this evolving field. The FRM Handbook is the official reference book for GARP's FRM certification program

Financial Risk Manager Handbook + Test Bank: FRM Part I/Part II


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Friday, November 9, 2012

Tips for Investing in Residential Property

The real estate market has historically been one of the safest places to put your money, despite recent fluctuations. When looked at over a long-term perspective, residential property can yield profits on two different levels. Home owners can rent their property out as a side source of income, before selling the property down the road at a profit. However, there are several tips to keep in mind before investing.

Take your Time
Many first-time investors get carried away in their eagerness to get started. It's important to take your time and research all of your options carefully before you invest in real estate. Talk to others who have successfully invested in residential property, read forums, and learn more about different neighbourhoods. It's a buyer's market out there, which means you have the time to find the right investment rather than grasping at the first suitable property.

Search for Undervalued Property
The fundamental idea behind any investment is to buy low and sell high. One of the best ways to ensure that you'll make a tidy profit from your real estate investment is by seeking out undervalued property. If you suspect a property is listed for less than what it's worth, compare it to similar properties in the same neighbourhood to see how the prices match up. Homes that have been on the market for a longer time period may be reduced in price, which can lead you to a bargain. Don’t be afraid to negotiate a lower price with the seller whenever possible.

Prepare for Property Management Costs
In addition to the cost of the property itself, you can expect to pay some fees. Stamp duty and legal fees will be costs incurred up front. Further fees to consider include the price of interest on what you have borrowed, homeowner's insurance, and the cost of repairs. As a landlord, you will be responsible for fixing faulty appliances and repairing damages in the home. There may be additional marketing costs associated with finding tenants, such as putting your listing up on a property finder website or placing ads in your local newspaper. 

Know Your Rights as a Landlord
If you plan on renting your property to tenants, it pays to familiarize yourself with landlord and tenant rights. These can vary depending on the state and city you live in. Use a legal professional to draft your lease, which should clearly state all information pertaining to late fees, rent charges, and deposits. This will protect you should there be any legal dispute with a tenant.

Boost Property Value with Renovations
In addition to purchasing buy-to-rent property, you can also look for houses or flats that can be renovated. By putting in new kitchen features or upgrading the flooring, these properties can then be sold at a higher price. Choose your renovations carefully to add value. Modernizing kitchen and bathroom features are the most lucrative types of repairs.

It's important to approach property investment with time, research, and a cool head for the best results. By keeping these tips in mind, you'll be sure to find a bargain with maximum investment potential. 
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