Categories
Day Trading

Ultimate Swing Trading Strategy That Works For All Types of Markets!

Swing trading can be a much better option as compared to day trading. You can swing trade stock, forex, futures, options or ETFs in just 30-60 minutes each day as compared to day trading. Day trading is in fact a full time job.

Recently the CFTC (Commodity Futures Trading Commission) the regulatory body that oversees the futures market as well as the forex market has given a ruling that outlaws 100: 1 leverage. Now, you can not use more than 10: 1 leverage level in forex trading. What this means is that you will need a large balance in your trading account to trade the standard lot.

Whatever, leverage was always a double edged sword. If it amplified your profits, it also could destroy your account in a matter of seconds. What you need to do is to master trading different markets. Sometimes, you will find a good opportunity in the stock market, sometimes in the gold market, sometimes in the crude oil market and sometimes in the options market.

As a new trader, you can start off from one market. Master it and then master another and then another. The basics of trading are almost the same for these different markets. So once you master trading one market, you can easily master other markets. This is a much better option as compared to sticking with just one market and day trading it all the time.

Trading different markets is what will work in the 21st century. Some people call it market timing, Whatever name you give it, swing trading is what you need to learn if you want to enjoy your life as well as make money with trading.

Categories
Taxes

How Donation for Tax Benefit Works

It’s the time of the year when everyone is trying their best to figure out how to avail tax benefits or as a layman would put it, how to save tax. People opt for one of the several tax saving options, like claiming interest and principal components of their home loan, life insurance premiums, medical expenses, etc. What most people don’t realize is that one of the simplest options is to donate to charities, for it doesn’t just entitle you to 100% tax deduction, but also helps you do your bit for a cause.

Donate and Save Tax

In accordance to the Income Tax ACT, charitable institutions are eligible for income tax exemption under Section 11. Similarly, donors are entitled to tax benefits under Section 35AC, Section 80G, Section 80GGA, etc.

35AC / 80GGA: If your source of income is business or profession and you are donating to institution approved by the National Committee (Finance Ministry) for carrying out any eligible project or scheme, then you are entitled claim 100 % deduction of your donation amount under Section 35AC. The assesses with source of income other than Business can claim deduction for this contribution under section 80 GGA.

80G: Under Section 80G, 100% or 50% tax deduction can be claimed depending on which purpose and the agency you are helping. If you are donating to the Prime Minister’s National Relief Fund and other funds specifically listed in the IT Act, you are entitled for 100% tax benefit.

The donation to other Non-Governmental Organisation’s who are Registered with Income Tax Dept as eligible to raise donations with section 80G benefit, are eligible for 50% deduction for tax purposes.

Charitable institutions use these provisions in the Income Tax Act to encourage donors.

Which Institutions Are Eligible?

One has to be careful as tax benefits can only be claimed on donation to certain institutions/non-governmental organisations. It’s the prerogative of the Central Government to approve the specific program of charitable institutions for benefit under section 35AC / 80GGA.

How Do Tax Deductible Donations Work?

Let’s say your taxable income for the said financial year is Rs. 2,00,000 and you make a donation of Rs. 5,000 to a charitable program approved under section 35 AC, then your net taxable income will come down to 1,95,000 and your tax will be calculated on this amount. The institution you have helped will issue a certificate to you for your contribution, which you can then use to claim exemption from taxable income. Simply put, the exemption works by reducing the donated amount from your taxable salary.

In the end, considering that not-for-profit organisations are playing a significant role in bringing about social and economic change in the country, it’s important that they get support from all quarters. This is where you come into the picture. You can come forward and contribute. Your support will help to reach out to more beneficiaries and bring about a much-needed change in the society.

Categories
Student Loans

Student Loan Consolidation – How It Works?

Student loan consolidation packages promise to ease out all your worries regarding student loans. You may be curious to know just how this works. Well, firstly you need to apply for the process upon satisfying the eligibility criteria. The process of student loan consolidation is not really very complicated. Applications have a page’s length wherein you as borrower need to provide basic demographic information, list current student loans and sign the document. The rest is taken care of by the lender offering the package.

The eligibility criteria for student loans consolidation may vary depending on the loan consolidation concern. In case of the federal students loan consolidation you need to have over $10,000 outstanding federal student loans. Again you may be eligible to consolidate your loans if you are no longer enrolled more than half time in school or you are in repayment or in a loan grace period (i.e. 6 months after leaving school, in general). It is also necessary that you have had not previously consolidated your loans. There are also certain specific loan classes which may be eligible for federal student loan consolidation process.

Upon consideration of your application the loan consolidation program will lower your monthly payments by lengthening the term of your loans. The loans to be consolidated may have been of different types and may even have been offered by different lenders. Depending on the kinds of loans being consolidated by you a subsidized or an unsubsidized consolidation loan will be provided.

The rates of interest to be set are determined. This is usually not more than the weighted average of all the loans consolidated by you. The lower the fixed rates of interest guaranteed the more lucrative is the offer. Besides, other borrower benefits may be provided too. In case of federal student loan consolidation which is a part of the family loans that have been made available by Federal Family Education Loan Program (F.F.E.L.P.) of the federal government it is the U.S. government which guarantees the loans. These loans have certain favorable terms and conditions like fixed and reasonable rates of interest and term periods extending even to 30 years which are a cut above the rest.

While processing your loans the loan consolidation concern works with the lenders presently holding your (existing) student loans to set up the consolidated product for you. Alongside the consolidated student loan package notification on how to make payments is also provided by your loan service provider. Thus the student loan consolidation process works towards making your student loans more manageable and help you in securing better repayment terms.

Categories
Currency Trading

Forex Pairs – Understanding How Forex Currency Trading Works

If you want to be able to effectively trade the Forex, then you need to understand how Forex pairs work. “Forex pairs” is another way of saying “currency pair.” All trading in the Forex market is done not with individual currencies, but with currency pairs. To trade the U.S. Dollar (USD) you have to choose another currency to trade it against. This is why understanding Forex pairs is so important. It’s not enough to understand one currency. You have to understand how two currencies are going to relate to one another.

The major currencies, and major currency pairs, will account for nearly 80-85% of all Forex trades world wide. The reasons for this are fairly simple and straight forward. The strongest economies are often the most stable and come from the most stable governments. This security and strength of economy is what makes these main currencies strongest and the best to trade.

Look at Zimbabwe’s hyperinflation as a reason why smaller nations and nations with dictators aren’t trusted in currency trading. There are too many variables, and an economy can completely change overnight. Governments that operate by Democracy and that are strong aren’t likely to fold. Economies given freedom to operate on their own also tend to work in a stable way. Even the most unstable weeks or months in the United States would have less effect on the currency than if China’s leadership decided to shut out all foreign investment tomorrow.

This is part of the reason China’s currency hasn’t broken into the major players, while nations like Canada and New Zealand have. While it’s unlikely that China would have a sudden shift like this, it is possible. That type of insecurity is why China’s Yuan isn’t going to be in position to stand up with the CAD, NZD, or CHF any time soon.

The most common Forex pairs will get traded the most because the Forex market is volatile enough without the dangers of governments shutting down foreign investment, military coups, or any of the other common worries associated with these nations.

Russia fighting Georgia, China cracking down on dissent, India and Pakistan – even modern developed nations can be too unstable for good currency strength.

So when you’re looking for a good currency pair to trade, don’t get cute with Yuans, Pesos, or Rubles, but stay with the big dogs. They provide all the profit opportunity that a good Forex trader needs.

Categories
Investing

How Online Investing Works

There are several kind of investing one can engage in and include lots of different assets and commodities. On realizing the importance and the benefits of investing, more and more people are getting involved in the trade which has gained popularity over time.

Online investing is one method of investing and involves financial market trading revolving around placing orders either to sell or buy securities via the internet. The internet has indeed changed the financial markets and has made trading for securities and stock much easier as anybody can engage in the trading regardless of the location provided he or she has internet.

There are so many investing opportunities on the internet and all one has to do is choose the right path to take. The simplicity and easiness that comes with internet investing has robbed many brokers their livelihoods since this is something one can easily do at the comfort of the house or work place. It has therefore eased the trips to meet a broker just to discuss the best securities one should trade in.

The first step to invest online is getting a reliable online brokerage if you are not too sure about how to go about the whole process. The brokers are also commonly referred to as discount brokers and offer cheaper rates compared to the traditional brokers. Before settling for an online broker, ensure that he has a trade license in the field you want to start trading in. This will save you money and keep you off scams that are now everywhere especially on the internet. It helps to compare different brokerage companies to end with the best rates and brokers who are committed in getting you the value you expect to gain.

There are different examples of online investing which are done using financial instruments which include Forex, mutual funds, securities and options. You can easily find techniques and online tools to help you track things like indices, portfolios and securities. Actually most of the online firms involved in trading will opt to send you faxes or even telephone in case there is any delay in the placing of orders.

A good broker should be in a position to provide you, the investor with the right trading platforms which will act as your virtual floor of trading. These platforms are what you use in placing your selling or buying orders. The one thing you should ensure when you settle for a broker is that such platforms of trading online do exist. You can conduct a segment survey to make sure that you are stepping into safe grounds. To come up with a strategy that is effective, you need to do a market study and analyze your portfolio so that the investment decision will indeed serve you the way you expect it to.

After doing all this, you can then place your online orders to exchange through the broker. Routing checks with your broker will keep the trade transparent and in the right order at all times. Although it is possible to do online investing within a very short time, you should be absolutely clear and sure about your reasons of selling and buying. You should also be aware of the possible risks that may come with your investment to keep ugly surprises at bay.

Investing is very advisable as you can survive with this as your livelihood without the need to work on a job. There are people out there who dedicate their lives or engage in investing after retirement as a means of survival and it does work wonders. Strategizing and understanding the changing markets is the key to successful investments.

Categories
Advertising

Mobile Video Advertising – Why It Works

If you have products and services that you would like to sell, you have probably tried a variety of different advertising mediums. In the real world, you may have tried your hand at classified advertising, magazines, and an assortment of other mediums for getting people to see your merchandise. Online marketing is something that many people have also tried. Whether you are writing articles that you submit to the search engines, or if you are creating websites designed to bring targeted visitors to your offers, these are just a few of the many ways you can use the Internet to your advantage when it comes to marketing . However, one of the most profitable ways that you can market what you have to sell is by using mobile video advertising. In this article, we will present several reasons why mobile video ads are quite possibly the best way for any company to market products and services to potential customers today.

Almost everyone today has a cellular phone. Just a few years ago, smart phones were just starting out. Today, smartphones are a very common item that many people use when communicating with family, friends, and also clients. Mobile devices have also expanded into other areas including tablets and minicomputers. In fact, our every day activities are intertwined with the use of mobile devices, so much so that mobile video advertising is one of the best ways that you can sell your products today. There are specific strategies that you can use to target specified users, strategies that we will discuss next.

Similar to online marketers, mobile videos are used in advertising today to test whether or not an ad campaign will actually work. You have probably seen videos on YouTube that pop up prior to watching an actual video. In the same way, mobile videos are used to test the waters, to find out if there is enough interest in a certain product or service before rolling out the big ad campaign. It is very easy to target specific people with mobile advertising. You can choose specific demographics to use, as well as geographical locations. By streaming videos on the web to mobile devices, you can quickly find out how popular or profitable your product is going to be.

Depending upon the type of video that you create, you may want to market your product to different smart phones. For instance, the iPhone does not use Java. Therefore, you would not want to create a video that would lead someone to a webpage that has an offer with the Java presenting it. The size of the video needs to be considered as well. Depending upon the processor that the person is using with their mobile device, the video might not play correctly if they do not have a system that is capable of displaying the video at a fast enough rate. All of these considerations need to be considered prior to making a video and using it to attract potential customers to your offers.

In conclusion, it is clear that mobile video advertising is a growing venue by which to bring new customers to businesses every day. Video has been expanding over the last few years, and is one of the most favored mediums used by people today, especially on their mobile devices. By creating a video for your product or service, you can use mobile video advertising to test the waters for anything that you are trying to sell. If it works out, you can roll out a larger advertising campaign using mobile video advertising to pave the way to additional profits for your business.

Categories
Mortgage

Ever Wonder How a VA Loan Works?

Millions of people have bravely served our country in the United States Military. As a way of thanking them for their service, the government created the VA loan guarantee program to help veterans qualify for a home loan. A common misconception is that the VA actually issues loans to veterans – they do not. Rather, the VA guarantees loans so that a bank or credit union can offer loans to veterans without carrying the entire risk. If the borrower defaults the VA will pay a portion of the loan. This enables lenders to provide veterans with loan options that include lower down payments, because the VA is shouldering some of the risk.

10 Steps to Getting a VA Loan
Veteran's Eligibility: Veterans need to prove their eligibility for the VA guarantee by obtaining a Certificate of Eligibility (COE).

Eligible Loans: You can use your VA benefit to purchase a home or refinance. It must be used on the house you live in, so talk to your mortgage lender about alternative options on a rental property.

Interest rates : VA loan interest rates can change depending on the mortgage lender. Make sure you discuss loan options with a VA approved lender that is also an FHA approved lender. You will want to compare loan rates to ensure that the VA program provides you with the most financial benefit.

Apply: Complete a mortgage application with a VA approved mortgage lender. They will ask you for your personal and financial information, then have you sign a completed application.

Provide Documents: Give the lender your COE, recent pay stubs, W-2's, tax returns and bank statements for processing. The underwriter will review this information to determine if you qualify for a loan.

VA and the Lender: The lender will confirm your eligibility with the VA. This includes the percentage of guarantee you are eligible for and whether or not you are required to pay a funding fee.

Underwriting: The underwriter will make sure that you meet their lending guidelines and the guidelines set forth by the VA. Something unique about the VA is that they require the lender to count household and family expenses as debts when calculating your debt to income ratio.

Credit History: The VA does make allotments for borrowers with no credit history. According to Chapter 4 of the VA Lenders Handbook, the Underwriter can make a determination based on the borrowers payment history of utilities, rent and auto insurance. This is a huge advantage for veterans that have been serving overseas and may have had no need for traditional credit.

Appraisal: The VA requires that an appraisal is completed on your home and that the life expectancy of the home is the same or greater than the loan term. For example if the home is expected to only last ten years, you won't qualify for a 30 year loan. That's a good thing because realistically, you wouldn't want debt on a house that no longer functioned.

Finalize your Loan: Once the lender has issued a final approval they will draw up loan documents for you to sign. Using your COE the lender will obtain the necessary guarantee documents from the VA. As a borrower you don't need to worry about doing any additional work. You have already served our country and it is up to the lender and the VA to work out the paperwork details. Anything that requires your signature will be included in your closing paperwork.

The goal of the Veterans Administration is to provide lenders with a loan guarantee so that more home loans are issued to veterans. As a service member or veteran you are entitled to receive the benefit from this guarantee, which should make it easier for you to get a loan. A VA approved mortgage lender can walk you through the process and ensure that you obtain a mortgage loan perfectly suited to your families needs.

Categories
Student Loans

How Financial Aid System Works

Children's education is very important. When people think of education, they think of costs. Then, they would think about the time taken for making these sacrifices for their offspring. In short, being a parent should be about giving the best to your child. But do you know how the financial system works in the world today?

College

College is an essential place for young minds to develop to their fullest potential. It could take as much as a 6-figure cost to enrol in a prestigious university or institution.

Financial aid system

Fortunately, we have various financial aid systems that are available to us. But before finding one, know that people who have advantage in terms of financial aspect when funding an education. For example, a rich family would not find it a problem to sponsor their daughter or son for a course that costs $ 20,000 a year.

However, those who think they are in need are in need indeed. The problem is that most parents do not think that they qualify to apply for scholarships or any of financial aid systems at the first place! This even includes a fully-funded student loan.

How to apply for financial aid

In every high school or college, you should complete the 'FAFSA' (Free Application for Federal Student Aid). This should be the first step in getting financial aids. This costs nothing and is free to do. Then there is also the 'FAF' Financial Aid Form, which needs you to fill out more details. This in turn creates more paperwork and consumes more time.

If you live in the United States, every state has a certain form of financial aid. This is provided that your child will attend the college that is located in the same state. Check with local high schools and colleges in obtaining financial aid forms.

Then comes the financial analysis

After submitting these forms (which contain all the necessary details), an analysis will be run using a standard methodology that is approved by the United States Congress. A few factors are considered when running this analysis. These include income, assets, age, retirement income, number of dependents and so on.

What happens when the analysis says you do not qualify?

Well, this is not the end. Why is this so? Loans do not consider this financial need analysis. If applying for a scholarship does not turn out well, then all hope is not lost. You still have a low-interest loan. This is all because you submit your financial aid form.

Categories
PayDay Loans

Payday Loan Consolidation – How It Works

A payday loan can be a real life-saver when your monthly budget is hit by an uninformed roof leak or a medical emergency. There’s ready cash available to tide you over the immediate financial crisis. It is a high interest loan, but well, so long as things are taken care of till your next pay check arrives!

The deadline for repayment is generally when your next salary is due. If you are unable to pay it, it is carried forward.

The problem with payday loans is that it can be a vicious cycle. Before you realize you have signed up for multiple loans, making it very difficult for you to keep up with timely payments and fees. The ease with which you can obtain one is partly to blame.

How do you pay off these loans?

Payday loan consolidation is the solution for individuals who have accumulated huge debts. However, you need to first understand how it works.

The counselor will first evaluate your financial situation. This includes validating loans and ensuring which ones are still active. The company pays off your outstanding debts; so all your loans are rolled into one against new terms. You are then only liable to one credit agency.

A high interest rate is a distinctive feature of this type of loan. A company that works towards consolidation will first look for ways to reduce the rate of interest against which the amount that was loaned to you; thus, your loan is easier to pay back. It can also help you forgo additional charges and fees. To add, they give you sufficient time to payback your loan. So, at a lower rate and more time to pay up, your monthly installments are going to be smaller.

In payday loan consolidation too, you have two options:

· Secured loan consolidation includes securing loans against some value property such as your house or car etc. The rate of interest is low; however, in event of failure to repay, you will lose the property held as a collateral security.

· Unsecured loan consolidation which is offered without requiring a collateral security. The rate of interest is slightly higher than the first option but lower than that charged by payday loan lenders. It is a great option for one with a good credit score.

You can consolidate the loans yourself or get payday loan debt help from companies that offer such services. If you choose the latter, they will handle everything for you right from handling communication with your lenders to paying off your loans.

The bottom line is a payday loan consolidation company does not write off your debts. They work with you and your lender to create a payment plan that is affordable.

Now if you want to get the best settlement soon, you need to choose your payday loan consolidation company with care. You need to make sure the company is registered. This step helps ensure the financial institution is authentic. Be clear about the fees you pay towards the settlement. Payday loan consolidation should be based on your financial situation. The company should not work with a one-size fits all approach. If they force you to accept the terms and conditions in place, avoid the company and look for another. If the company is trying to sell you stuff other than payday loan consolidation services, it is a red flag.

So, if you’ve mounted debts and are unable to repay the loans, don’t get bogged down by the phone calls and repayment agents. Schedule a free counseling session with a payday loan consolidation company and end your stress.

Categories
Stocks

How Day Trading Works According to Einstein

One of the most common mistakes novice day traders make is thinking that there is any stable reality to trading the markets.

There isn't. It's all relative.

Knowing this can actually make your trading more simple and allow you to trade with more confidence and higher profits.

We'll explore the concept in this article by discussing one of the most basic concepts of technical analysis: trend.

Traditionally an up trend is defined as a market making higher highs and higher lows, and a down trend is defined as the market making lower highs and lower lows.

You could look at a 2 minute chart of any market and find a period of time during which the market is in a down trend. But does that mean that "the" trend is down? Not necessarily.

If you look at that same point in time on a 60 minute chart you may see that what looked like a down trend on the 2 minute chart was actually a very brief retrace in a strong up trend on the longer time frame.

And you can take it much further.

You can look at a 1 minute chart, a 2 minute chart, a 3 minute chart, a 5 minute chart, a 10 minute chart, a 15 minute chart, a 30 minute chart, a 60 minute chart, and even a daily chart .. and they are all going to look a little different, giving you different perspectives on "trend."

So which one is the real trend?

None of them!

It's all relative.

I know people who trade with many computer monitors because they watch 4, 5, 6 or more time intervals of their market concurrently. This is a mistake because it only leads to confusion. It's too much information and completely disorienting.

Einstein said that we should make things as simple as possible, but not simpler.

While he wasn't 'referring to day trading specifically of course, it's good advice for every area of ​​life, including day trading.

Since everything is relative based on the point of reference you establish, what a trader must do is simply choose a time interval they are comfortable with (based on the speed of execution required, the risk involved, trade frequency, etc) and establish that as your set up chart.

Then I recommend that you also use one more chart of a higher time interval (I use one that is 3 times the length of my set up chart) so you can see the market from one other perspective. This gives you a bird's eye view of the market and allows you to witness a "bigger scale energy" so you know if it is working with you or against you.

This will keep your trading simple … but not too simple.