Buying a Home: How to Handle the Legal Documents

Shopping for a home can be a little more complicated than finding the property and the money to pay for it. Between you and the night you sip champagne on the porch of your newly acquired house lie mounds of paperwork, with very small print, and jargon that you probably have neither the time nor inc
house, real estate, homes, legal processing, proce
by Clare Stevens

Shopping for a home can be a little more complicated than finding the property and the money to pay for it. Between you and the night you sip champagne on the porch of your newly acquired house lie mounds of paperwork, with very small print, and jargon that you probably have neither the time nor inclination to wade through.

Why you need a conveyancer

That’s what conveyancers are for. As solicitors who specialise in real estate properties, they can handle all the documents and make sure that you are fully protected by the law.

For example, if you’re selling your home, your conveyancer will prepare the contracts and the property deeds. If you’re buying one, he will coordinate with your mortgage lender and handle all the necessary searches to make sure that you’re not being swindled out of your well-earned pounds. These include a local authority search (to check if your property is sitting on what will later be converted into a highway), a drainage search, a land registry search (so you know you’re talking to the real owner of the property), and a land charges search (to assure the mortgage lender that you can afford the payments).

Some counties have an even longer list of required searches, making a conveyancer even more important. For example, Cheshire county residents need a brine search, to detect if the levels of minerals present in the ground can affect your house or your health. Most conveyancers will also evaluate your property for any damages or hazards that may need repair or correction, which he will then use to negotiate for a better sale price.

Your conveyancer will also be the one to deal with the solicitor of your house’s seller (or buyer, whatever the case may be). He will prepare your offer sheet, schedule the necessary meetings and negotiations, and then prepare the final contracts. Once the sale has actually been made, your conveyancer will also take care of the deeds and make sure that the necessary documents are given to your mortgage lender.

Choosing a conveyancer

With the large amount of money involved in purchasing or selling a home, and the paperwork required by the institutions that will lend that money to you, the fees of a conveyancer are well worth the investment.

Some conveyancers charge a fixed rate, others set the amount according to a value of the property. However, fees should not be the sole determining factor behind your decision to hire someone as your legal representative. Choose someone that you’re comfortable with, who offers excellent customer service, and will update you between the long stretches when documents are being processed. As a rule, legal firms that specialise in conveyancing are more likely to provide this kind of dedicated service. You are guaranteed that you are talking someone who knows the ins and outs of real estate, and will not have to worry that the person assigned to you isn’t too busy in the courts to work on your documents.

It’s also important to ask what is included in the fees, to uncover any hidden charges or at the very least clarify who will shoulder small costs of processing paperwork, such as documentary stamps.

How Many Payday Advances Can You Handle?

Payday advance are the short-term loans, which are convenient and quick way to fulfill the needs of between any two paydays. These loans are termed as payday advance because they are often repaid after one receives the next paycheck or benefit checks. These short-term loans may vary from 10-45 days of duration. For applying for payday advance we need to provide some basic information like source of income, name, address, contact numbers, etc. no credit check is required for a…
payday loan,cash advance,payday advance,cash advances,payday loans,military payday loans
Payday advance are the short-term loans, which are convenient and quick way to fulfill the needs of between any two paydays. These loans are termed as payday advance because they are often repaid after one receives the next paycheck or benefit checks. These short-term loans may vary from 10-45 days of duration. For applying for payday advance we need to provide some basic information like source of income, name, address, contact numbers, etc. no credit check is required for applying for any payday advance. After an hour of applying one receives a message regarding approval or disapproval. They give these details after reviewing the information given by the customer. Once the loan is approved the payday advance loans are directly transferred in the checking account. The most convenient thing about payday advance is that they can be availed anytime anywhere.

This also helps in getting good credit history as none of these loans come in transaction history. There should be no check returns for any payday advance loans and no negative balance accounts. If any of these options come into the transactions then bad credit history is reported to the customers account.

Payday advance loans meet the short-term financial but they are definitely no substitute for financial planning. Payday advance can be taken online also, which are very fast. These online facilities are applicable to only those who are above 18 years of age and have steady income with a checking account. Payday advance loans make the transactions very simple and hassle free. The payday advance specialists are available 24 hours a day for their services anywhere. For any amount ranging from $100 to $500 they are always ready with their service. Many moneylenders have come forward for giving away their service.

One should keep that in mind that the payday advance is a part of emergencies only. They should not be kept in practice to take every time. One should borrow only when it is required and can be easily paid back. This saves lot of money and interest in the long run. The interest rates charged are very high for the payday advance. Therefore one should always find out the company report for all these companies before availing any payday advance. More over one should also always check out for any hidden charges before availing any payday advance.

Before availing any payday advance one should also check for budget planning. Payday advance should be spent on necessities and not on luxuries. Loans such as payday advance attract heavy interest charges therefore these should be taken up in case of any dire necessities. Such advances taken for any daily expenses make living very expensive. Thus one should avoid small expenses and loans against such expenses. Moreover, any check returns on such small loans also report bad credit history and can ruin credit rating for any individual. A good budgeted and planned expenditure can save anyone from any sort of loans such as payday advance.

Consumer Counseling Can Handle Debt Consolidation

Debt consolidation is the act of taking all debts incurred by various creditors and consolidating them into one loan resulting in one monthly payment. When a majority of income is applied toward paying interest, an individual will be forced to accumulate more debt to meet routine expenses. This will place them even further into debt, as less of the payment is applied toward the principal balance. It also inflates their current interest payments made. Obviously, the higher you…
consumer counseling
Debt consolidation is the act of taking all debts incurred by various creditors and consolidating them into one loan resulting in one monthly payment. When a majority of income is applied toward paying interest, an individual will be forced to accumulate more debt to meet routine expenses. This will place them even further into debt, as less of the payment is applied toward the principal balance. It also inflates their current interest payments made. Obviously, the higher your principal balance is the more you are paying in interest and the longer it will take to repay the debt.

If you find yourself in this position, a debt consolidation solution could help you take control of your finances and reap the benefits of agreements with your lenders. Utilizing the services of a counseling agency to handle your credit card debt will result in a fixed interest rate, a flexible loan or a revolving credit plan at a better interest rate. Other than working with the creditors yourself, debt consolidation is the best option and far less damaging than bankruptcy. To take advantage of consolidation benefits, you can use the services of a consumer counseling service. Though actual debt consolidation companies can also help, a consumer counseling service can also provide financial skills that will prove to be influential in avoiding future debt problems.

Choose to implement a debt consolidation solution to settle debt and existing credit card debts. The counseling service you choose will assist you in paying off the debt you owe to various creditors, negotiate with the creditors for better loan terms and interest rates, and sometimes even reduce the amount to be repaid. In addition to the latter benefits of the counselor working on your behalf, the central advantage of using debt consolidation is that you will pay a single, fixed payment instead of numerous separate payments applied to various creditors at different interest rates. Your monthly finances will be much more manageable, your surplus income can be set aside for savings and you can begin down the road to a more secure financial future. Most importantly, debt consolidation is a much better solution than bankruptcy. It shows creditors that you are accepting responsibility for the debt and making an effort to repay it, rather than avoiding it by filing bankruptcy. Many creditors will acknowledge this effort and are more willing to negotiate better loan terms, ultimately resulting in your favor.

Getting a Handle on Credit Cards

If you were one of the many Americans who, in 2006, managed to wrack up a total of more than $2.38 trillion in consumer debt, of which $875 billion of this consumer debt was defined as revolving credit debt, you are not alone. Even with all this documented debt, getting a handle on your credit cards would not impossible.
credit cards
If you were one of the many Americans who, in 2006, managed to wrack up a total of more than $2.38 trillion in consumer debt, of which $875 billion of this consumer debt was defined as revolving credit debt, you are not alone. Even with all this documented debt, getting a handle on your credit cards would not impossible. It is not even especially difficult, since many of the steps are well-defined, but the process does take work and determination. By educating yourself on the steps that can be taken in order to get a handle on your credit cards, you are taking a step in the right direction.

While many people are aware of the advantages that come from using credit cards, such as the quick and easy use, there are some disadvantages to these plastic lifesavers if they are not used correctly. In order to get a handle on your credit cards, you first need to be aware of the less desirable features of credit cards and how you can use education in order to limit these credit card nuisances. Credit cards are meant to be used to aid individuals but, at the same time, they do not need to be used constantly and as a person’s only source of payment.

Did you know that if a person paid, using the average credit card debt for a person, just the minimum payment that is scheduled by the credit card company every month, it would take more than thirty years to pay off this debt? In addition to the time it would take to clear this credit card debt, there would also be a great deal of interest tacked on to the total of the bill. Individuals can help themselves more than they know by being aware of the interest percentage that they are responsible for paying on their individual credit cards, since many credit cards will differ in this percentage, as well as by paying more than the minimum payments. Obviously if a person is not paying more than their minimum payment and it is taking a long time to pay off their debt, they are not going to feel as though they have a handle on their credit cards or on, to some degree, their life.

It also would help dramatically for individuals to pay off the full balance of their credit cards each month whenever possible. When account holders make it a point to not use their credit cards as magic payment devices, and to put on the card only what they can pay off each month any time that it is possible, they will be able to get a strong handle on their credit cards. Obviously emergencies come up from time to time, and in these cases credit cards can truly be lifelines for many people. However, when these situations come up, it is important for account holders to remember that they will benefit greatly from paying an amount higher than the minimum payment, which would result in the account holder being debt-free sooner.

Many people, including roughly eighty percent of students, actually charge normal month-to-month necessities on their credit cards. These items include food, clothes, toiletries and other such items. When individuals can do so, it would be important for them not to use their credit cards for these purchases. The previously listed items are those that are standard monthly payments. When individuals plan for these purchases each month, they can budget it in to their financial plans. There is no reason for them to additionally pay credit card interest on these purchases by using their credit cards.

Credit Card Debt: How To Handle It

With the financial innovation of credit cards, it has become perhaps too easy for the average person to maneuver themselves into trouble by mounting thousands of dollars in debt. In prior decades, a person seldom spent more than they had available simply because they couldn’t. Today, however, banks and credit card companies make a financial killing from your indebtedness, so it’s admittedly in their best interests to distribute credit cards to those with less than stellar cre…
debt,debt assistance,credit cards,credit card debt
With the financial innovation of credit cards, it has become perhaps too easy for the average person to maneuver themselves into trouble by mounting thousands of dollars in debt. In prior decades, a person seldom spent more than they had available simply because they couldn’t. Today, however, banks and credit card companies make a financial killing from your indebtedness, so it’s admittedly in their best interests to distribute credit cards to those with less than stellar credit ratings. Credit card debt is here to stay, and unfortunately few are immune to its seductive lure.

It’s not that the availability of credit cards themselves are immoral or unethical. We are simply much too dependent on them for basic, every day purchases like gas, clothing, or a fast food restaurant. It all adds up to greater debt which if not kept in check, over time this lifestyle could lead to a disastrous bankruptcy scenario.

To keep yourself out of credit card debt, some homework may be necessary. You should learn a bit about credit, how to mange it, and money in general. To get out and stay out of debt, creating a budget is an imperative. Write out a list of your fixed (i.e. non-changing) monthly payments plus a list of your optional expenses. Then make some tough decisions concerning items you want to own or activities you wish to participate in and how within your budget you can afford them. You need to be honest with yourself, realistic, and able to save money wherever you can. Determine in advance to stick with your plan to help yourself be strong in the midst of tempting credit card purchase opportunities.

Gas cards, store credit cards, and lines of credit all vie for your attention, trapping you in their high interest payment cycles. Do you really need them? If not, cut them up and cancel them.

When the credit card bills come due, it is tempting to make the minimum payment required on the credit card statement. The minimum payment is merely the interest. If you only pay the interest each month, you will be in debt for seemingly the rest of your life. However, if you strive to pay more, you will move toward debt freedom. So whenever possible, try to save enough to write a monthly check for twice the minimum payment.

And if you have several open credit accounts oppressing your finances, then consider debt consolidation to combine all your debts into one manageable payment. This step will actually save you money and certainly make your monthly bill payment process quicker.

We Can’t Handle Interest Higher Rates

MacroMaven Stephanie Pomboy reflecting on interest rates a few years backed quipped that the US economy could no longer handle higher interest rates in a way that mirrors what Jack Nicholson shouted to Tom Cruise in A Few Good Men that he couldn’t handle the truth.

Jack Nicholerson (Col. Jessup): You want answers?
Tom Cruise (Kaffee): I think I’m entitled.
Jack Nicholson (Col. Jessup): You want answers?
Tom Cruise (Kaffee): I want the truth!
Jack Nicholerson (Col. Jess…
Financial Crises, Global Stock Markets, SP 500, Federal Reserve, US Stock Markets, Inflation
MacroMaven Stephanie Pomboy reflecting on interest rates a few years backed quipped that the US economy could no longer handle higher interest rates in a way that mirrors what Jack Nicholson shouted to Tom Cruise in A Few Good Men that he couldn’t handle the truth.

Jack Nicholerson (Col. Jessup): You want answers?
Tom Cruise (Kaffee): I think I’m entitled.
Jack Nicholson (Col. Jessup): You want answers?
Tom Cruise (Kaffee): I want the truth!
Jack Nicholerson (Col. Jessup): You can’t handle the truth!

“Son, we live in a world that has walls and those walls need to be guarded by men with guns. Who’s gonna do it? You?… I have neither the time nor inclination to explain myself to a man who rises and sleeps under the blanket of the very freedom I provide and then questions the manner in which I provide it. I would rather you just said “thank you,” and went on your way. Otherwise, I suggest that you pick up a weapon and stand at post.”

Colonel Jessup’s responsibility to provide for our essential freedoms is not unlike the Federal Reserve’s mandate to create jobs and foster economic growth. And right now, that apparently requires the Fed to cut rates aggressively to guard the walls of economic growth from crumbling down.

To curb or otherwise fight the rising walls of inflationary pressures in our economy, the Fed had steadily raised short term rates to 5.25% by mid 2006. However, the 50 bps cut on Sept 17 was a loud and clear message from the Fed to the financial markets on Sept 17 with their 50 basis point rate cut is that we can’t handle higher rates. So, let the wall of inflationary pressure rage on for the time being.

The Bernanke Fed’s 50 bps rate cut implies that the Fed’s team of Macroeconomic and Quantitative analysts (MAQS) analysts who have been busily studying a series of what-if scenarios for the US economy over the past few weeks must not have liked what they saw.

The MAQS team under the Bernanke Fed was created to ensure they do not embark on a series of excessive rate cuts during instances of stress on the financial system. The Bernanke Fed feels in hindsight that Greenspan’s third rate cuts in 1998 as well as the aggressive easing in 2001-2003 were a bit excessive and that “the Fed [actually] overpaid for risks that the turned out to be less severe.”

San Francisco President Janet Yellen noted that a good example of the Fed overypaying in the past followed the “aftermath of the Russian debt default in 1998. Many forecasters predicted a sharp economic slowdown as a result but growth turned out to be robust.” The third cut in November 1998 occurred when GDP growth in Q4 1998 came in at 6.2%.

The what-if scenarios that the Fed’s team of analysts have been working on, a.k.a. “Alt Sims” or alternative simulations, adjust “for such things as higher financing rates… a sharp decline in home prices” or a sharp acceleration in mortgage foreclosures to catch a glimpse of possible future outcomes by leaving rates unchanged or relatively unchanged. The scenarios under a “relatively unchanged interest rate environment” must have been downright ugly.

In seeking just the right amount of rate cuts that will be required for this credit crisis, the Fed certainly felt 25 bps would certainly be far too little. This too underscores the Fed’s grave concern for the US economy in a way which also mirrors the Fed’s sudden and grave concern for the US economy that emerged in January 2001.

On January 3rd 2001, the Fed surprised the financial markets with an interbank meeting 50 bps rate cut. They followed that with another 50 bps rate cut on Jan 31 2001, then 50 more bps on March 20 2001, May 15 2001, and Sept 17 2001. They cut 200 bps inside five months and 250 bps inside the first nine months of 2001.

That forever damned the US dollar. It took awhile for the dollar to succumb to the Fed’s aggressive rate cutting, but in the end, it finally caved in by triple topping between Oct 2000 and Jan 2002. Peak valuations for the dollar at that time ranged from 119-122. Six years later, and the dollar is now worth only one-third of what it was when we began this decade.

Whether the Fed Funds rate plunges 200 bps or more over the next three quarters is unknowable. The sooner they begin cutting only 25 bps at each FOMC meeting the better.

There is a almost unshakeable faith in the Fed’s ability to navigate their way through financial turmoils with a policies of monetary accommodation. And equity markets tend to do extremely well during these Fed cycles of monetary accommodation. That is why they say on Wall Street “Don’t Fight the Fed.”

The only time in recent history that equity markets did not fare well during a Fed cycle of accommodation was in 2001. In that year, the SP 500 fell 22% from the second 50 bps rate cut on Jan 31 2001 by March 22 2001. While I do not expect a similar outcome for equities, as the economic backdrops are entirely different, we must still be cognizant that the Fed is not infallible. There is always the possibility that they have fallen behind the curve in responding to the current financial crisis, but as yet there is no such indication that is the case.

John Bougearel
Event-Driven Investment Research

www.financialfuturesandequitymarketanalysis.com/

How To Handle Your Credit Cards

Credit cards have a bad reputation-many consumers dislike using them because they don’t like the concept of borrowing money, or have fallen into debt in the past. However, the responsible use of credit cards can help you build healthy credit by establishing and maintaining an active credit history on your credit report. Jenny Morgan, credit expert at ACCION, offers the following guidelines for using managed credit card “debt” as a tool for financial success.

1. Think short…
credit cards
Credit cards have a bad reputation-many consumers dislike using them because they don’t like the concept of borrowing money, or have fallen into debt in the past. However, the responsible use of credit cards can help you build healthy credit by establishing and maintaining an active credit history on your credit report. Jenny Morgan, credit expert at ACCION, offers the following guidelines for using managed credit card “debt” as a tool for financial success.

1. Think short-term with credit cards. “As a rule of thumb, don’t purchase items that you can’t pay off in a year or less,” says Morgan.

2. Pay more than the minimum. Although credit card companies may only require you to pay 2-3% of your monthly balance, try to pay more. You can save thousands of dollars on interest if you pay your debt off as quickly as you can.

3. Watch your limits! A third of your total credit score is determined by the ratio of credit used to the credit you have available. Ideally, use around 30% and no more than 50% of your credit limit. According to Morgan, ‘Maxing out’ your credit cards will only harm your credit score.

4. Always pay on time! Late payments result in costly fees-not to mention a decrease in your credit score!

5. Find a card to meet your needs. Comparison shop to find the credit card that best meets your needs. Each card offers different annual fees, interest rates, and balance transfer rates. Morgan recommends using a credit card search engine like Bankrate.com to compare the benefits of different cards. (http://www.bankrate.com/brm/rate/brm_ccsearch_advanced.asp)

6. Read the fine print! If a credit card seems too good to be true, it probably is! Read the terms and condition carefully-that 0% APR introductory rate is just that- introductory- so make sure you know when the higher rate kicks in.

7. Don’t have more cards than you can handle. If your wallet is overflowing with credit cards, future creditors will think that you’re relying too heavily on credit, making you a higher credit risk. Limit yourself to five active credit cards.

Handle Your Emergencies Through Bad Credit Payday Loans

Bad credit documentation is an impediment in getting low interest rates. If you are served county court judgments, or have evasion and amount overdue in the past, payday loan lenders can not proffer you a levelheaded interest rate. However, no body can take away the right of getting you a loan. Bad credit payday loans are anticipated to endow with people of such inundated economic background. Bad credit payday loans will always serve the purpose of needy people looking for so…
credit debt consolidation, credit equity loan, bad credit home
Bad credit documentation is an impediment in getting low interest rates. If you are served county court judgments, or have evasion and amount overdue in the past, payday loan lenders can not proffer you a levelheaded interest rate. However, no body can take away the right of getting you a loan. Bad credit payday loans are anticipated to endow with people of such inundated economic background. Bad credit payday loans will always serve the purpose of needy people looking for some on the spot pecuniary solution.

Payday loans are becoming increasingly accepted nowadays. If you need money for any foremost or insignificant needs, payday loans will always be compassionate and easily reached. If you use your credit cards for making big purchases or for home improvement, the interest rates would be astonishing and nearly too expensive. Payday loans require collaterals to offer against the loan. Collaterals come in the form of possessions or home.

Requirements Bad Credit Of Payday Loans

You would be surprised at how many people have had bad credit reports and overcome them. The thought following a bad credit payday loan is that the lending foundation is enthusiastic to pay no heed to your precedent history, as long as your present situation is constructive. If you can put up your credit score back up, you can get back to standard and start to get usual loans with normal interest rates. This will happen eventually, as long as you make your payments on time with the bad credit personal loan.

If you presently have a profession, there should be no problem in obtaining a bad credit payday loan required that presently you are earning 1000 pounds per month. One of the foremost advantages of a bad credit payday loan, besides the fact that you can now have that car that you need, is that it will start to build up a good credit history for you, as long as you keep up with the payments on time. Having a bad credit report does not have to be the end of the world. As an alternative of getting disheartened about it, do something productive and positive, such as a bad credit payday loan to get you back on path. For more info see http://www.personalbadcreditloanshelp.com/Articles/Bad_Credit_Home_Loan.php on bad credit home.

Shop Online For a Suitable Lender:

It is important that you do shop around online for the loan while the interest rates don’t vary all that much for those with a history of bad credit the standard norms that the lenders go on does. There are many online lenders who exclusively focus in payday loans for those who have an account of bad credit and while you won’t get the practical interest rates that are on offer for those who have the sumptuousness of an admirable credit score you can at least apply and be successful in getting the money you need hastily. Looking for on the spot bad credit payday loans online is your unsurpassed option if you do have a bad credit rating and they can be found.

Tax, Tax And More Tax. What A Bummer! Here’s How To Handle It.

When you run a business, it can feel like you spend far too much of your time worrying about tax. Here’s a quick guide to the what you need to know about tax.

What Do You Qualify For?

There are all sorts of tax breaks for home and small businesses, to try and make it easier for them to survive. To qualify for them, though, you will need to be using your home as the primary place where you do business. If most of what you do takes place in some space elsewhere that you r…

When you run a business, it can feel like you spend far too much of your time worrying about tax. Here’s a quick guide to the what you need to know about tax.

What Do You Qualify For?

There are all sorts of tax breaks for home and small businesses, to try and make it easier for them to survive. To qualify for them, though, you will need to be using your home as the primary place where you do business. If most of what you do takes place in some space elsewhere that you rent, then you won’t qualify for home business tax rules. You also are unlikely to qualify if you haven’t set aside a specific part of your home as the ‘business area’. Be prepared for the fact that you might be audited, to make sure that you are running a legitimate business from your home.

Records You Need to Keep.

You need to keep records of everything — literally everything — you spend on your home business. You should especially keep records of things when their use might be shared between personal and business, such any business-related travel expenses you run up on your car. If you have stock, you need to go through and inventory it at least once a month.

What You Can Deduct from Your Home Expenses.

Because your home office is in your home, you can claim any tax back that you pay on that part of the home. You can also claim back tax on part of your utility bills. For example, if your home is 2,000 square feet and you use 100 square feet for your home office, you can claim back 5% of your utilities. If you rent, then you can claim back this percentage of the rent, and if you have bought the house then you can claim it as a discount off your mortgage interest. Any equipment you have that depreciates (becomes worth less) because you use it in your business may also be eligible for a tax deduction.

Self-Employment Taxes.

When you work from home, you are legally self-employed. This can put you in a sticky situation, meaning that you have to pay for medical and other taxes that your employer would normally pay for you. In the US, for example, you will be responsible for your own social security and Medicare payments, while in the UK you will need to pay national insurance.

Get Tax Software.

If you’re not sure where to begin, get some tax software. Choosing your circumstances from its lists and giving any additional information it asks for should show you most of the tax rules that apply to you.

Get an Accountant.

If you want to save as much as you can on your taxes, don’t rely on things you read on the Internet, or even on computer software — get an accountant. They’ll be up-to-date with all the latest tax laws, and will know thousands of tips and tricks that there’s no space to list here. See if you can find one who will take a percentage of what they save you in tax as payment instead of charging a flat fee — this is an ideal solution for you and for them.

Do Your Taxes Online.

Most developed countries now give the option to do your taxes online, eliminating a big paperwork headache. You may even find that your tax software can send its tax report directly to the online service, without you doing much more than clicking a button. Of course, if you do things this way, be sure to call and confirm that everything went through alright.

Don’t Be Late.

Whatever you do with your taxes, you absolutely must not file them late or pay them late. It’s an all-too-easy trap to fall into, but there are automatic fines. Tax collection agencies will look upon you very unfavourably if you pay late, and are likely to start immediately charging interest on any money you owe them. Write your tax dates on your calendar and underline them in red. Twice.

Forex : How To Handle A String Of Investment Losses

Everybody hates to lose and unfortunately no one is blessed with the ability of foresight, therefore losses are an unavoidable part of trading. When we enter a trade we will either be right, or wrong, and even if we broke-even we’d still be classed as being wrong – as nobody enters into a trade just to break-even! When unsuccessful traders encounter a string of losses they begin to engage in self-destructive patterns that help them escape the pain they are experiencing.

Hopefully this article has made you ponder over some of your behaviors during drawdown periods, be sure to keep an eye on yourself and as always take care of your body, because there’s no use in making all the money in the world when you don’t have the physical capacity to enjoy it
forex , invest , investment , profit , loss , securities , interest , cash , money , wealth
Everybody hates to lose and unfortunately no one is blessed with the ability of foresight, therefore losses are an unavoidable part of trading. When we enter a trade we will either be right, or wrong, and even if we broke-even we’d still be classed as being wrong – as nobody enters into a trade just to break-even! When unsuccessful traders encounter a string of losses they begin to engage in self-destructive patterns that help them escape the pain they are experiencing.

Bring to light these self-destructive actions that can help you realize what you are doing before it takes hold of your physical health. If you find yourself already engaged in these patterns hopefully this article can help you to get you back on track as quickly as possible.

What are the destructive patterns?

If you find yourself caught in a string of losses or a bad performing week/month be sure to monitor your behavior. It is during this time that you will be at your most vulnerable. You will begin to indulge in activities that at first seem harmless, but upon excessive use (or in time), begin to cause physical damage to your health.

Ask yourself the following question: during drawdown periods do I find myself over-indulging in these activities:

Food (especially junk food – e.g. chocolate, ice-cream, chips)?

Sex (includes viewing pornography)?

Alcohol?

Drugs (includes excessive smoking)?

Laziness (find it difficult to wake up in the morning)?

Entertainment?

All of the above taken in excessive doses can be detrimental to your own physical health (some even in small doses!).

These activities above during your losing period are only covering up the pain of confronting the true issue, and your body tries to rid the emotional pain by trying to “fix” it with physical pleasures. Unfortunately it is going about it in the wrong way, so what should you do?

Firstly… REALIZE WHAT YOU ARE DOING AND STOP IT!

You need to realize what you’re doing and you need to STOP doing it immediately! You can either decide to stop, or you’ll be forced to stop when your body eventually breaks down and prevents you from any form of movement. It will be much more beneficial to you in the long-term if you can decide to stop *NOW*.

Once you have stopped you now need to figure out a way to solve the pain – not by cutting out or neglecting it, but by staring it in the face. Bring your problems out into the light, be honest with yourself. There can be no growth without pain; you are experiencing the emotional pain, now it is time to find the error and therefore your growth.

Begin Your Review

The review process begins in two separate areas: You & Your System. Here are some checklists for you to go through to find out where the problem could lie:

“YOUR SYSTEM” CHECKLIST

Was your system thoroughly tested prior to trading it (or paper traded if you do not have the capacity to program your system into back testing software)?

Did you test with out-of-sample data?

Do you even have a system???? If you do not, how do you even know if the method that you are trading is even profitable??

Is your system’s code correct?

Did you over-optimize your system? (What have we discussed about over-indulging?)

Did you paper trade your system prior to placing capital on it?

Did you trade with a small amount of capital prior to placing the rest of your funds on it?

Do you know the system’s limitations?

Did you properly drill your system? (See our blog article on why I am the system designer from hell)

“YOU” CHECKLIST

Is the current drawdown you are exhibiting with your system normal?

Are you comfortable with your system’s historical drawdown performance?

Are you fully aware of the risks involved with your system and the instrument(s) you are trading?

Are you trading with funds that you are comfortable risking?

Are you relying too heavily on your performance?

Have you set realistic goals?

As you can see there are generally two areas that you need to explore: the mechanical aspect – your system – and the emotional aspect – you. Both can be responsible for making the way you feel the way you do. It will either be an error on the system’s side with how the system was tested and/or programmed, or it can be your own psychological profile not being comfortable with the system’s performance.

Your Answers = Change = Your Growth

What steps should we now take? Now that we have begun a corrective process where we have stopped the evil nature of our over-indulging ways to take control we should continue our “corrective nature” by invoking our findings and taking ACTION in correcting our errors.

If the problem was mechanical – fix it, if the problem was emotional either go about setting up new thought patterns, or change your current system. The answers lie in whether you need to expand your knowledge in system development, or whether you need to grow emotionally as a person.

Unfortunately there is no easy road, and even if there was everybody would be doing it. Hopefully this article has made you ponder over some of your behaviors during drawdown periods, be sure to keep an eye on yourself and as always take care of your body, because there’s no use in making all the money in the world when you don’t have the physical capacity to enjoy it