The Rollercoaster of Interest and Debt

The Rollercoaster of Interest and Debt

Feel whoozy these days when you think about your mortgage and climbing interest rates? The Bank of Canada says rates may climb several percentage points this year. Homeowners, with floating mortgages and variable interest rates, may be hardest hit. More so, if you overextended your budget to buy the most home possible, at the lowest floating rate you could find. Now that great room may not seem so great. Even a one- or two- point rise in interest rates can mean hundreds of dollars difference each month on big mortgages. Where can you find those dollars to help you keep your home, and meet this rising cost?

Get professional advice. Even in extreme circumstances-illness, job loss, or other dire situation-there are experts who will show you how to save money-yes, even hundreds of dollars each month. These experts are often available to you for free, through your mortgage lender, bank, or government service. Some are even available online, and you can submit your questions anonymously, by email. Use them. They know their stuff.

Don’t be embarrassed to ask for help. Money management is something few of us have ever been taught. And it’s only through hard money knocks that we get smart about our finances. Save yourself some pain, and ask for help before your debt overwhelms you. For example, it’s sometimes possible to lower your monthly mortgage payments by re-amortizing your loan over a different period, or making fewer payments. You can contact your credit card company and ask for a lower interest rate. Does this feel like you’re admitting financial defeat? You’re not. This is a smart financial tactic to keep your debt under control, your bill payments out of arrears, and you out of collections.

Find money pockets. Your chequing account eats green. Take a look at your chequing account for the past month, and start adding up all the overdraft charges, debit charges, and ATM charges to just give you one small example of where you can save money to help make up that mortgage gap. Start using cash, and stop incurring those costs.

Income tax returns. Put that money into a savings account or short term GIC. Use it to help make up that mortgage gap, not to go south for the winter. HST rebates, Child Tax Credits, and other government money can also be set aside for that mortgage increase.

Lower your income taxes. It might be worth your while to see an accountant to be sure you’re getting all the income tax back that you are owed. You can go back as much as seven years to be sure you haven’t overpaid on your taxes. You might be pleasantly surprised. Oh-and the cost to see that accountant? Deduct it from next year’s tax return.

Start a home business. You bought your home, now make it pay for you. If you start a home-based business, and put it into that great room you own, you may be able to deduct a number of home-related … READ MORE

Forex Money Management – 4 Tips for Keeping Your Equity Intact and Building Huge Profits

Forex Money Management - 4 Tips for Keeping Your Equity Intact and Building Huge Profits

There are many ways to make money but all successful traders know that if you want to win, you need to protect what you have; Successful Forex trading is built on strong money management.

When dealing with leverage, you have to make it work for you and that means cutting your losses and running your profits. All great soccer teams have great defenses and they know that if they don’t concede points, the offense will get a chance to win the game and it’s the same at Forex.

You lose 50% and you have to earn 100%, only to break even and the moral is:

If you lose money, you have to work harder to get it back, so let’s see how to keep your equity intact.

1. All Trades Are Equal in Risk

Never make the mistake of calculating your target minus your stop as a reward for your risk! This is just an opinion and in the case of money management always consider the worst and everything can only get better. All the same trades there have the potential to lose money.

At risk per trade, you will hear a lot of people telling you that you should only take a 2% risk but on a small account you need to take more risks, also do 5-10% and also don’t diversify, do one trade at a time .

2. Trade Breakout

Breakout trading, means buying new breaks to map the highs and lows of all trades starting and continuing from this gap, a good break offers the best risk for prizes in Forex trading. Your stop, just behind the runaway point, becomes tight and at the best run, you see big movements so you have a big risk to be rewarded.

3. A Place to Stop Outside Random Volatility

The main mistake by many traders is to place a stop in random volatility and day traders do it and lose it. Why did they lose? Because all volatility in the daily time frame is random so you can flip a coin. Focus on greater trends and greater profits so that your stopping can go further but the chances of a three digit increase are higher.

To make money, you need to provide market space for breathing, so don’t try and limit the risk so much you make it – there’s no point in stopping close, if the opportunity is to be hit.

4. Do 50 – 50

This is my favorite money management trick. We all know big trends last for weeks, months or years but it is very difficult to sit on long-term trends because they always retreat back to open equity earnings and eat them. Try this, as soon as the market moves upward by buying at a 50% bull trend bank and leaving 50% in the market. Then wait for the next breakout or pullback to support, to put the other 50% back and keep on doing it.

This keeps you in trend and if … READ MORE