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Day trading: an exciting world of tense drama as traders make or lose a fortune every day. Day traders make split second choices based upon their analytical skills, always hoping to beat the market - the great leveler! The success of a trader depends upon his alertness, risk-taking ability and analytical skill, but in the final analysis, the successful day trader is above all else lucky!

What are the characteristics of a day trader?

Bear in mind that a day trader believes in the saying ‘all is fair in love and day trading.’ Right from holding positions on long trades (buying first at low prices to sell later at higher prices) to short selling (the exact reverse of long trades; selling first at high prices in the expectation of covering when prices fall later in the day) to speculating wildly, unworried by the fundamentals and hardly ever, giving a glance to the technical aspects of his trades.

Let us look at some more of what it takes to be a day trader:
Day Traders:
want to finish the day with no open deals
try not to listen the many rumours that float around
are strong in analytical skills - usually not just in their own field
Are not distracted by market sentiment
are active in both bull and bear markets and know how to profit from each
are good at math
keep abreast of the latest regulations, taxes, trading fees, , etc.
are not worried by the movements of financial indicators such as NASDAQ or DOW JONES). They are confident in their own skills.

More on trading:

Foreign investing is a huge draw for many, but did you know that a self-directed IRA can purchase your desired property?

The concept of buying real estate with your IRA always seems to spark a great interest. For many people this is a convenient way to utilize money that’s been put aside over the years to purchase a property and hopefully grow their IRA funds.

But what about investing in real estate outside of the US? Here’s a question from one of my readers:

“I want to buy foreign land which may get converted into residential property in say the next 5 years. Can I create the IRA LLC and fund the IRA LLC using Self directed 401K and then buy non-US based land?”

The answer is yes, according to Dan Cordoba, founder of Asset Exchange Strategies, LLC in Leander, Texas.

“Most self-directed IRA custodians will not allow people to purchase foreign investments with their self-directed IRAs. However, there is nothing in the IRS code that precludes anybody from purchasing property outside the US …. And so when you call [some custodians] and ask them that very same question, they’ll say ‘no you can’t’ and they make it sound like it’s IRS regulation when it’s actually just their policy,” says Cordoba.

The biggest reason some self-directed IRA custodians will not allow foreign real estate investment purchases is because they don’t have visibility of the asset.

“For example, they can’t just call a real estate agent and say “go value this property” or determine the value of it. They’re very much at the word of whoever the individual is,” explains Cordoba.

If you plan to use your IRA to buy real estate in the US or outside there are some specific things you should look for in a self-directed IRA custodian.

The first is checkbook control, “Meaning you can write your own checks thereby reducing the transaction costs which are the most expensive part of a self-directed IRA,” says Cordoba.

The second is to make sure that you can make your own investment decisions without having to ask the custodian for permission.

The third is to have the IRA in the form of an LLC. “The LLC provides litigation protection for the IRA which people do not have now nor do they have with a self-directed IRA custodian,” says Cordoba.

“There is a large interest today in the investment in foreign properties with an IRA. Typically, when people call a self-directed custodian or administrator the answer is ‘No, we can’t help you.’ However, if an IRA holder employs the use of an IRA LLC then the world becomes their investment oyster shell,” says Cordoba.

The fourth is to look for a low, flat custodial fee per year.

A few other important things to note are that profits earned are returned to the IRA. Also, if the property is leveraged, the debt must be a non-recourse promissory note and then you will have unrelated debt-financed income taxes to pay. Your IRA will also have to have enough funds to pay for taxes, property expenses and repairs for the property. If your IRA doesn’t have enough funds to purchase a property, you can partner with another person such as a friend, relative or business associate to purchase the property. Each of your IRAs would then purchase a specified interest in a particular property. It’s critical you research and understand what taxes and how much may have to be paid prior to investing in real estate using your IRA.

Keep in mind that the IRA cannot purchase property that you want to use as your primary residence, vacation rental or as your business office. However, at 59.5 years or older, you can withdraw your real estate from your IRA to use it as a primary or second home without a penalty. Depending on the type of IRA that held the real estate, there may be taxes associated with the process.

Published: September 12, 2005 - by Phoebe Chongchua

About Daniel Cordoba:

Daniel Cordoba, is the principal and founder of Asset Exchange Strategies LLC. You can visit his website on line at http://www.MyRealEstateIRA.com.

Spending is such a hard habit to break, especially when people use their credit cards. Once they get addicted, they continuously endure the agony of spending in spite of imminent problems that tag behind.

And when things eventually get out of hand, most people will soon realize that they are already stuck with a mountain load of credit card debts. And mornings after mornings, they will wake up each day with worries in their head about how they can repay all of those instant splurges.

Theres one way to get out of credit card debtsconsolidation. Heres a list of ways how to do it:

1. Make a balance transfer.

One way of consolidating a credit card debt is through a balance transfer. In this way, the person who has a huge outstanding balance on his or her credit cards will get another credit card with a lower interest rate. Once approved, they should immediately get a cash advance and use it to pay off their standing balance on the other credit card. In that way, they consolidate all of their payables into one credit card. Plus, they get to have only one rate to worry.

2. Home equity loans can do the job.

This is a very workable strategy provided that it will be used properly.

Getting a home equity loan is probably one of the easiest things to do. Best of all, home equity loans can offer tax deductions for the interest rate of the loan.

However, there is a drawback. The debtors house will serve as the collateral. But nevertheless, it still one good way of consolidating credit card debts. The debtor should only keep in mind that the money from the loan should only be used in paying credit card debts. If used on other things, it will only worsen the problem.

3. Make use of retirement funds.

There are instances wherein debtors can make use of their retirement funds in order to consolidate credit card debts. But this should only be made if there are no other options available. This is because this type of consolidating credit card debts can be very tricky.

Loans on retirement funds are not actually tax deductibles. However, the problem sets in when the fails to pay back the loan within five years or when he or she will resign from work.

Indeed, there are no nippy fixes when consolidating credit card debts. The bottom line is that, it is better if the person will stay out of debt so as not to worry on consolidation matters.

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A self-directed IRA real estate option is one route that many retiring investors have taken. They recognize the advantages of real estate holdings and know that just like the stock market, the real estate market will boom and bust in cycles, but the good thing about this is that, regardless of numerous cycles, it has a strong survival rate. We don’t think real estate would ever disappear from the investment scenario; it remains as one of the more attractive alternatives because of the higher potential of returns than can be gained. Both real estate and stock markets are survivors, but there are plenty of times when real estate returns fare better than stock market returns; not to mention there is more than a perceived value in a tangible asset such as real estate when the market cools off. This is why real estate investments have become a real magnet for investors’ retirement portfolios. These investors are looking for the security of a tangible asset while at the same time benefiting from the highest returns on their money.

The key components of a self-directed IRA real estate investment lie in the words, “self-directed.” Because of the nature of the self-directed IRA, present and future retirees can now establish a self-directed IRA real estate account with the help of a trusted and competent IRA trustee/custodian and a self directed IRA advisor.

A self-directed IRA real estate portfolio means that investors have the blessing of the IRS to use monies in their IRAs to purchase real estate and other alternative assets to achieve their investment objectives. Many people nurture the mistaken notion that this is not allowed by the IRS; this is because traditional IRA advisers would prefer to oversee holdings which they can monitor for their clients and a real estate holding would be administratively cumbersome. That’s one. Two, there’s nothing in the law that requires them to offer real estate investments to clients. These are the principal reasons why a self-directed IRA real estate option does not appear in the portfolios of millions of investors when in fact, it does not constitute a prohibited transaction by any measure. The only restriction that applies is that individuals with self-directed IRA real estate holdings cannot live in the property they purchase.

For someone new to the game of self-directed IRA real estate options, engaging the services of an advisor, who is well versed with self-directed IRA real estate accounts would make sense. A qualified self directed IRA advsior will have the expertise to deal with the administrative paper work and the mechanisms to employ so that the investor does not get slapped with IRS penalties and taxes.

Have you considered investing in real estate with your IRA? This growing trend is here to stay. Don’t get left behind., Joshua Geary educates his clients on the benefits of taking an active roll in planning for retirement. You can visit his website at http://www.MyRealEstateIRA.com.

How To Build And Maintain A Good Credit History For A Good Future

Look at a mirror and you will see your real self. Now, picture the mirror as something magical that, when you look at it, youll see yourself in terms of the financial dealings you have done up to this point in time. This, in effect, is what your credit history is all about. It is the sum total of your financial life for a certain period which reflects whether or not you have paid your bills on time and whether or not you owe certain parties some money.

Why Your Credit History Is Important

You would look at the mirror to see that everything is in order with the way you look before you start your day to meet the world, right? In the same light, your credit history would reflect your financial appearance for the benefit of interested parties.

Who are these interested parties?

Future creditors are among them. These are people whom you might approach in the future so that you could secure a loan to buy a house, or a car, or even a boat, or to acquire some capital for a business. These can also be credit card companies who would have to approve of your application before you can be granted use of their plastic money.

Also, a lot of companies would look into their applicants credit histories to determine their financial responsibility and perhaps even their financial aptitude and trustworthiness.

Knowing these facts, youd immediately know that the health of your credit history has deep repercussions in your life. Its more than just a piece of paper detailing your financial dealings. Its an accurate representation of your financial self.

Building And Maintaining A Good Credit History

There is only one rule here, a mother postulate from which everything else stems from. That rule is this: do not spend more than you are capable of paying!

Uncontrollable, and oftentimes vicious, spending habits are the usual culprits of a dilapidated credit history. If we spend more than what were capable of paying, we leave a lot of monthly bills unpaid. Being delinquent with these necessary obligations would reflect negatively on our credit history.

A good, balanced, and workable budget plan is essential from the very beginning. Formulate a budget and stick with it! Do not deviate from this as such act would just give you the misguided courage to desecrate the plan and fall under the tortuous spell of spending. Commitment and good foresight are essential components in creating, and sustaining, a budget.

Include some leeway for emergencies in your budget. Do not nurture the thought that emergencies are licenses to allow you to spend outside of what you have planned. A solid budget plan considers expenses for contingencies as well.

If you have to apply for a credit card, get a secured one, or better yet, a debit card instead. These types of plastic money would have a credit limit equivalent to the money in your bank account, hence effectively eliminating the possibility o overspending.

There is a basic formula for good financial planning. Place 50% of your monthly salary in your savings. Pay your bills with the other half. Allot some money for your expenses until the next payday. Save 10% of what will remain as your contingency fund. The rest is what you could spend for your luxuries. This has not failed those who practice it, and there is no reason why it would fail you.

At the end of the day, a good credit history would boil down to how responsibly you have managed your finances. If you treated your expenses well, with a level of maturity that keeps the future in mind, there is no doubt that you will bear witness to an impressive credit history that would leave those creditors gawking and those employers jumping with excitement.

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