How to Set Your Financial Goals

financesIt can be hard to know how to prioritize and set your financial goals. It is very important to understand your worth, as this helps you know how much cash is getting in and out of your business. Irrespective of your age, financial planning is very important to people at all stages of their life. Everyone has financial needs and dreams. In my experience, my first ones was to save enough capital to set up a Pressure Washing Business and I succeed on that. Financial planning will help you identify your goals and set up a strategy for achieving them.

But how exactly do you set your financial goals? Where do you start from and how do you go about it?  Here are some ways to go about it.

Figure out what matters to you

Before you can create a financial plan, you need first to understand your goals. Some want to save for retirement, others want to save for business, others to buy a home, among others. It is important to think about your short term goals as well as long term ones. Write your goals on a piece of paper and see how practical achieving them can be. Unless you have an idea of what you want to achieve first, you will not be able to achieve it.

Set Your Priorities

Every goal needs to be prioritized and quantified. When you have all your financial information and made a list of what you need, it is time to set the priorities. Give priorities to each goal depending with their importance. Take the list of your goals and number them according to your true interests.

Create a realistic budget

In order to achieve your goals, you need to have a realistic budget. You need a budget that takes all your expenses into account. People normally tend to overlook their monthly expenses and this is where many go wrong. To set up a budget, start with a comprehensive look at your income and then make a determination and the best ways to utilize your weekly and monthly expenses.

Automate

After you have figured out your expenses, you can figure out how much income you are left with and set it aside for savings. You need to set aside a percentage no matter what, and have it automatically deducted from your income and saved in a separate account. Take a certain percentage upfront, and save it, as this is what we call paying yourself first.

Check your progress

Once you have made a concrete plan that is realistic, the next course of action is to check your progress regularly so that you can stay on track to achieving your goals. Whether you have a financial advisor or whether you are doing it on your own, you need to ensure that you are staying on course to achieving your goals. Financial planning is not a one-and-done solution. It needs to be reviewed and updated periodically. It should be revisited after a certain period to determine the practicality of achieving it as deadline nears.

3 ways to Reduce Forex Trading Losses

Forex lossThe global Forex market is the largest financial market in the world. Its popularity is mainly because of its simplicity in trading and relatively low costs. However, Forex trading is a numbers game, and no fund manager can ever win 100% all the time. It is very unpredictable, and as a trader, you should be ready to either win or lose while trying to predict the market. Forex market trade is a profitable venture only if you, as the trader, align yourself with the way the Forex market works- without trying to bend it to what you think it should be. With an understanding that forex trading involves both potential profits and losses, how then can you reduce the risks to emerge victorious in the Forex market

Trade less

Trade less to make more. Unless you are an experienced trader- and leap profits consistently- reduce the number of trades you take each month. When you restrict yourself to a few trades every month, you will most definitely give them more thoughts and hence stand better chances of winning. Adopting this technique-until you become a profitable trader- will not only improve your winning percentage but also grow your trading account faster than you can imagine.

Do your homework well

HomeworkJust because trading with forex is easy, it doesn’t mean that you put all your money in the market without due diligence. You need to learn all the loops about forex if you have to emerge a successful trader. ‘Homework’ is an ongoing process since you need to be well aware of geopolitical and economic factors that are likely to affect your trading currency. Part of your critical assignment should be to develop a systematic trading plan for screening investments, evaluating the amount of risk involved and formulating realistic short and long-term objectives.

Master a single trading strategy at a time

A jack of all trades is a master of none. If you are starting out, and want to find success in this business, avoid adopting multiple forex trading strategies. Every forex strategy is quite different from the other and trying to learn will not only slow your success but could also blow your trading account. For instance, the criterion for a pin bar is very different from that of engulfing candle. The head and shoulder pattern is a reversal pattern while the bull and flag signal a continuation of a prevailing trend. So, choose one strategy that seems to resonate with you and study it carefully until you are a master at it.

The worldwide forex market is a profitable and rewarding venture especially when you approach it as a business. It is even more attractive because of low account requirements and round the clock trading. However, to ensure a long and successful career as a forex trader, implement the above tips to reduce making losses in the market.

How to Get Started in Forex

ForexForex is quite an interesting market that is attracting people every day and is considered to be the largest virtual market in the world. It makes it easy for people to make money even with limited experience. However, if not handled well, you can lose everything you have in the trade. This is especially when you go straight into trading without learning the process adequately. A lot of patience and self-control is required to make it in the trade. Also, it is critical that you take the trade as a business not just as a hobby. How do you get started in forex?

Get a Reputable Broker

Before signing with a forex institution, get to know whether they are registered with the Commodity Futures Trading Commission and the Future Commission Merchant. Checking their website will reveal this information. You can also check for additional information just by searching the brokerage name or checking whether they are listed iwill not be after your money, carry out unauthorized transactions or worse still, defraud you but it will ensure your interests are safeguarded.

Start with a Demo

DemoAlthough you will not be making any actual money, a demo will help you learn the trades fast. This is more important if you have never traded before. Instead of going straight into the actual trades, start slowly with a demo. Going for the trades without enough knowledge and experience can lead to great losses.  Even when the broker promises to help you make the right decisions, don’t ignore the demo accounts. There is a lot to learn before you start making real cash.

Know the Currencies

The major currencies you will be dealing with include the US dollar, British Pound, Australian/ New Zealand Dollar, Euro, Swiss franc, Canadian dollar, and Japanese Yen. These are usually regarded as the major eight currencies. All trades are conducted in pairs. For instance, the USD/JPY, EURO/USD, and AUD/USD.  All the currency pairs are 18. This gives you a wide choice when making the actual trades.

Leverage

Learning how to leverage ensures you do not lose much in case you make a wrong decision. Leverage is the ratio of the actual capital to the amount the broker is willing to lend to you. For some, the ratio may be 100 to 1 which means that for every dollar, the broker can lend 100$.  Lower leverages mean lower risks and profits, therefore, if you want to make more, you should increase the leverage but this should only be done when you have enough practice.

Start with Low Spreads

A spread, which is the difference between the buying and selling price of a currency, is important to consider. This is where brokers make their money. Low spreads ensure you do not lose much of your investment.

As you practice, you will learn your weak and high points and improve as need be. Also, you will get to understand the forces that determine the market trends. In fact, you will be able to predict accurately how the currencies will behave just by checking important world happenings. As most forex trading professionals agree, it is easy to make money in forex with the right information.