Treat Your Trading Like a Business

Have you ever wondered how in the world large businesses or corporations such as GM or IBM just manage the small day to day tasks of operating and managing such huge concerns? It is just mind boggling to think about the millions of little details which have to be handled just to keep the doors of such complex corporations open! I’m not a CEO or CFO type and I certainly have no training or expertise in those areas, but I have spent a lot of time talking to folks whose job it is to run large and medium sized companies in an effort to understand how to better run my own, comparatively tiny business. What I found was truly amazing, if not totally refreshing!

What my searching uncovered was really encouraging in that it showed me that their businesses, no matter how large or complex, all have basically the SAME three requirements. The details are a bit different to be sure, but they all depend primarily on effective management and sound decisions in three areas; cash flow (or income), a source for stabilization of that income, and long term growth. I describe this a ‘encouraging’ in that my small business … in fact ALL businesses … have the same needs in the same areas, no matter the size of the concern. Let’s take a quick look at all three of these areas.

The first and most important of the three is the need for consistent, sometimes daily CASH FLOW. This area is prioritized above the others because it is here where the money is made to meet expenses of continuing in business. Face it .. business have bills to pay. General Electric must meet it’s obligations just as surely as we must in our family’s daily existence. AT&T has daily obligations … IBM and Microsoft face an overwhelming amount of daily expenses … YOU and I are no different! We just operate on a different scale … thankfully! To the extent that a business is able to meet it’s expenses – pay it’s bills, if you will, it should, all things being equal, remain a viable business concern. The instant a business fails to generate these very short term funds is the instant it begins to go out of existence!

STABILITY in cash flow generation is almost as important but is prioritized down a notch. The main reason for the ‘downgrade’ if you will is the nature of the need for cash flow. The expenses must be met, even if on a ‘hit or miss’ basis. Consistently generating that money is ‘stability’, crucial in need but behind the actual ‘generation’ in position. It is important to be sure as stabilizing at a level LOWER than necessary to meet expenses is unacceptable, for obvious reasons!

This stability is achieved in most business by keeping a ‘pipeline’ full of forthcoming business, designed to provide regular cash infusions periodically. In other companies, stability can be achieved by … well, just having a ton of cash on hand! Perhaps one of the best examples of this is Microsoft. During the recent onslaught of government or regulatory attacks accusing the software giant of monopolistic practices, fines in the millions of dollars were tossed about as potential ‘punishment’ for these alleged violations. Can you imagine how LITTLE would be the impact of a $10 million “fine” on a company that has $50 BILLION ‘unattached’ in the bank??!

The final area of consideration is long term GROWTH. Once a company has developed it’s business plan to the point that it can remain a financially viable entity, it must then concern itself with the concept of getting bigger. While specific growth is different for everyone the fact remains that you can’t just ‘stand still’ in business. You’re either growing or dying! The easiest way to grasp this QUICKLY is to think back to the first job you had. Focus on the INCOME that job provided and now try to imagine existing today on that income. The same principles exist for businesses as well. You can’t stand still there either! They must meet (and beat) the competition, so research and development are necessary. Technological advances come along and the number of employees must be increased to handle the new jobs these advances create. We could spend volumes on this aspect, but I think you probably get the picture!

So, all businesses, large or small have these same three areas of concern; cash flow generation, stability and growth. Now, let’s try to pull these concepts down to a level where we might be able to see a direct connection to our trading businesses.

We are traders. Trading is our business. Let’s agree that we have needs for cash flow, stability and growth in order to manage our trading business more effectively. Trading is not just throwing money at the stock market in some ‘willy-nilly’ fashion. We have to define our trading business in such a way that we can apply sound business principles to insure that we truly have a ‘going concern’. Here’s how I do that in my business and how I teach others in the trading labs to do the same thing. Lacking both the time and room for a detailed description let me summarize what we do…

First, my cash flow is a function of my daily, short term trading. This is not day trading by design. Rather, I use one of several strategies designed to get into a trade and then back to cash in a 1-5 day period. Trade only the journey the stock normally takes each day, being content with SMALL (daily) profits. Here are some givens:

  1. You will NOT be profitable on every trade.
  2. Your business does NOT depend on the success of your next (or your last) trade, so EMOTION has no place on the trading floor!

Stability in trading comes from the same place for us as for any other business; either a full pipeline of pending business or CASH in the bank. We can overcome a shortfall in COH (cash on hand) with successful medium term trades (30-90 days in length). I like to use covered calls and/or spreads to provide that regular cash infusion providing a leveling effect in the short term account.

Growth comes from successful long term (greater than 90 days) trading. For this, my favorite strategy is selling naked puts on high quality Blue Chip stock (however you define ‘blue chip’). A quick trip down this lane shows us picking out ‘chippers’ on weakness, selling puts having strike prices just below earlier PEAK values. The operative here is that we don’t really care if the stock regain these earlier values … just moving toward them will give us most of the profit we seek!

So there we have all three management aspects of any successful business; cash flow, stability and growth. Treat your trading like a business and it will treat you like royalty! Make it a great day!


Is it a Good Investment to Buy a Replica Handbag?

A lot has been said about replica handbags as well as fake or knockoffs. Manufacturers are buying up to date sewing machines and modern technical research that a factory can produce a handbag that you could hardly tell from the naked eye, matter of fact you cant’, unless you are completely familiar with an original handbag. You will find that a replica is not exactly the same as a original handbag and I would like to point out some of those points.

As an investment you could look at it in several ways. An original artist’s inspired handbag would have to be made out of top grained leather and after the kill the animal would have to be well carried for handling the hide so that it would not be damaged in any way and cured and treated so that it would maintain its subtle feeling and of course the findings on an original would not be any so called costume jewellery but the real diamonds and zippers as well as closures of very high quality.

An original will take hours and maybe days to make by top notch seamstress, that in all doubt, are paid for the quality of each handbag and not for the quantity of hand bags they make but certainly some consideration would be for that as well. The selected leather they use would have to have a very fast dye lot so that colors would not fade, run or stain.

So looking at an original handbag that cost upwards of $3.000.00 would be and could be a good investment but what happens when you are tired of it and it goes out of style, now let me see a used expensive original hand bag is worth how much, maybe the movie stars could get a price from someone that wants it as a heritage item but not if you are just giving it to your niece.

Now the other story is buying a replica handbag, it does not cost nearly as much, as it’s a fake or a knockoff of a original and you know it looked just as good as a original and it will certainly fill your needs for the time you will need it maybe a year or two and would your niece just love that look a like hand bag that auntie gave her, you certainly received your monies worth unless you have all kinds of money you do not mind spending large amounts on a handbag that you cannot tell the difference from the original.

SaleHoo – Acquiring SaleHoo’s Help is a Wise Investment

Having a wholesale business is one of the trends at present because it can provide its owner with big amount of profits if managed properly. Being a very lucrative type of business, many people try to engage in wholesaling and use the power of technology for their advantage. This is because bringing their wholesale business online is the easiest way to expand their market, without spending a lot of time and money. In addition to that, they can reach out and persuade many potential customers since most people nowadays use the internet as one important aspect in their daily activities. Even though the fact remains that the competition in online wholesaling is so tight, many entrepreneurs try their hardest just to survive and make sure their business will last. But there are also other businessmen who are exceptional because they are very resourceful in searching for strategies that will not only help them in their difficulties but will assure that their business will progress and grow.

So if you are planning to have your own wholesale business online, then you need to do the primary step of researching online for strategies to make sure that you are making good investments. And for sure, you will be able to learn one very important and mostly used strategy, and that is to have SaleHoo. And if you want to know the reasons why acquiring SaleHoo’s help is a wise investment, then here are the following:

• With SaleHoo, you are assured that you are free from any risks since this website has been proven and tested by many entrepreneurs to be very reliable and it has maintained its outstanding reputation until today.

• Then, SaleHoo has everything that you need for your wholesale business like the wholesale supplies that you need which have cheap prices and great qualities that are offered by its reliable wholesale suppliers. In addition to that, you can also have SaleHoo’s dropshipping services that will make every transaction smooth-flowing.

• Finally, if you have SaleHoo your business will surely be lucrative because a lot of shoppers will patronize your online wholesale business. And with more cash you have, the easier for you to expand your business and move to a higher level of success.