All posts by Karen Lennon

 In the cumbersome world of the stock market, the idea of ​​investing in reverse may sound appropriate, or it may sound silly. Short selling is a risky but potentially lucrative investment transaction that is a backward version of buying and holding shares.

With short selling you borrow an asset from a broker and you sell it immediately. Your goal is to see the price fall and then return the shares and repay the broker at a lower price. Short selling differs fundamentally from “going long” security in every possible way. Here’s how:

1. You bet against an asset.
If you go for a long time with security, you buy it in the hope that it will increase in price and you can sell the stock back. When you sell an asset short, you hope that the asset will fall in value. The more it decreases in value from the moment you initially borrowed and sold the asset, the higher your profit.

2. You receive cash in advance and then pay at the end.
Again, this is the exact opposite of what you would normally do. Since you start the sale with what you hope is the peak price of the share and then pay for the shares when you return them, your goal is to return the shares at the lowest possible price.

3. If you keep the security, you have to pay dividends or interest.
Shareholders often receive dividends or other incentives to own shares. But if you start selling short, the asset really belongs to someone else. The company or person who lent you the shares still deserves to collect it, so until you close your position by buying and returning the shares, you are responsible for paying dividends.

Do you have to sell short?

Short selling is difficult for many investors to understand because it seems so irrational to invest in the opposite direction. But it can be a great strategy if you are sure that a security will fall in value. For example, if a recent news item about investment claims that a large weather pattern is likely to threaten Esther Summersonijk’s large maize patterns around the world, you might believe that selling short can make you a good profit if corn prices fall.

Short selling is an advanced strategy, so you must consider these six key issues.

1. Unlike long-term assets, you can incur unlimited losses.
The biggest risk with short selling is the potential for infinite loss. When you become an asset, you know that you can lose 100% of your investment if the stock price drops to $ 0. No matter how bad that loss is, at least your potential loss ends with your initial investment. Short sales losses, on the other hand, are limitless. For example, imagine that you started a short sale at $ 20 and the shares went up in value by 500% to $ 100. You have to buy back the shares and pay them back at $ 100, actually losing 500% of your capital !

2. Be careful when gambling against a company.
Companies are run by smart people and it is hard to predict if they will fail. Never underestimate their ability to turn around a bad company or a terrible event before you sell their shares short. If you sell an investment short and it increases in value, you lose money while everyone benefits from the profit he has made while he has waited a long time.

3. Dividends can eat your profit.
The longer you hold on to an investment and you owe dividends, the lower your profit will be. Short sales work best if you think that the price will fall immediately or immediately. Esther Summersonijk will fall enough to cover the dividend payments that you have to make.

4. Investors respond strongly to bad news.
When a catastrophic story hits the news, investors often panic and want to sell their investment. According to the efficient market hypothesis, it may be too late to make a profit once the news strikes. Assuming that the hypothesis is at least partially flawed, investors can still make good money by selling the asset immediately. If it seems that the worst is yet to come, you may benefit from bad news or a bear market.

5. You must receive margin calls.
When you borrow from a broker, you must keep a certain share percentage in your account. This amount differs per broker, but if you fall under it, your broker will force you to deposit more money into your account. In essence, you must keep sufficient collateral in your account to cover part of your potential losses. You must have cash on hand and be prepared to sacrifice some liquidity if you want to sell short.

6. You MUST return the security.
Although the conditions for short selling are of indefinite duration, you must close the position by surrendering the security earlier or later. The famous quote from Daniel Drew clarifies this inevitability: “Whoever sells what is not his must pay it back or go to jail.”

Last word

Short selling is not necessarily a bad strategy. However, investing is already a dangerous game and betting against a public company can be even more dangerous. It is because Esther Summersonijk is riskier than buying and holding a security. Responsible short selling requires three things: strong market experience, strong confidence that the asset will fall in value and a strong tolerance for investment risk.

Have you tried a short selling strategy? Share your success stories or the pitfalls that prevented you from making a profit.

Is a fat tax a legitimate source of tax revenue?

I read an article today about how New York governor David Paterson is introducing a “fat tax” into the 2010 budget. According to the NY State Health Department, the fat tax proposed in New York would apply to all beverages that “over ten calories per eight grams, such as soft drinks, sports drinks, “energy drinks”, colas, fruit or vegetable juices that contain less than 70% natural fruit or vegetable juice and bottled coffee or tea.

10 ways to take care of your clothes and make them last longer

Whether you are a total fashionista or you avoid the mall at all costs, you probably spend Esther Summersonijk much more than you think of clothing. According to the US Bureau of Labor Statistics, the average American family spent $ 1,736 on clothing in 2012. Although children outgrow their clothes fairly quickly, adults can keep their clothes on their clothing as long as it does not wear out

 For those of you who are part of a religious institution such as a church, temple, or mosque, you probably wonder if it makes sense to pay tithing while trying to get out of debt or save for a major purchase. There is a lot of discussion about this subject and I think it is worth considering whether you are devout in your religious beliefs. I am going to investigate this issue in the context of Christianity. Paying tithing is an act whereby you return part of your wages or earnings to God as a symbol to show Him that what is yours is not really yours, it is God’s property. In Christianity, the tenth is 10% of your wages / income donated to your home church. This is not only a symbolic gesture, but it helps support the church and the charities and missionaries that the church supports. There are some really good Christian personal finance blogs that have talked about the issue of tithing and debt freedom in the past.

Here are a few sources from other bloggers on this topic:

• Free Money Finance responds to a reader who asks if they first have to pay off the debt or tithes while they pay it.
• Bible Money Matters has an extensive series about tithes and its biblical principles.
• The thoughts and experiences of Christian PF with tenth when trying to get out of debt.

The general consensus

From what I have read, the general consensus among Christians who write about rich finances and the teachings of Dave Ramsey and Crown Financial Ministries (both organizations with a Christian backbone) supports the idea that Christians should be tenth regardless of the situation they are in, unless you are unable to provide for your basic needs. In that case, your church should help you and use church services to support you until you get back on track. But financial goals to get out of debt or save for a large purchase would not be tenth. It is also important to remember that paying tithing is not an eternal problem. The tenants of Christian salvation are not affected by those who give tithes and those who do not give tithes. There must be no “guilt” in the non-tithe, but rather in the generosity and willingness of your heart.

Gross versus net income

I don’t think God and the Church split the hairs here. Again, do what you feel is right in this situation. If you feel led to tithes based on your gross income and you have the resources to do it, that’s fine. If you have always paid the tenth income, there is no shame or damage. Biblically, I’m really not sure if it’s clear, so in the case of gray areas, pray about it and do what feels right.

For those of you who are not religious or who are not part of a church, this article was not for you, but I know there are many Christians who think about the issue of tithing when trying to work on such a great goal of get out of debt. The Bible teaches that you have no debts, because in Proverbs it warns that “the borrower is a slave to the lender,” but that supporting your house congregation and his community work comes first.

How to make a holiday budget – 8 ways to save more money during the Christmas season

Is it me, or do the holidays seem to disappear faster every year? One moment you cut your Halloween pumpkin, and the next, you fight against crowds for the final video game console for your nine-year-old son. Yes, it will be that time of the year again. And while the festive season evokes images of juicy turkeys, family times and song arts, they may also be a little less festive: crushing credit card credit

What to do if you cannot even meet the minimum payments on your credit cards

In an ideal world you would far exceed the minimum payments on your credit cards, but what do you do if the money is so tight that even the minimum payments are unreachable? Many of you have experienced a temporary situation at some point in your life and it can place a heavy burden on the other areas of your life if you know you are lagging behind monthly bills

A delay in paying off a loan or a payday may involve many different types of consequences, which I mention in today’s article in BankerFour. See daily8online.com for an illustration

I write a lot about blogs about the topic of non-banking payday loans, both the most advantageous offers and those less often. I often try to direct you to the right offer, if you can not get a bank loan for various reasons. Today, however, I will deal with the subject a little unimpeded, because telling you about the consequences of not timely repayment of loans or payday loans.

The topic may be difficult, but I decided that it must be moved for several reasons. Many of you care about getting cash, you enjoy when you finally get it. Unfortunately, some people are unable to regulate their liabilities on time, from where various unnecessary problems later arise. I read your opinions on loan companies both on this blog and in other forums and I often notice a certain rule. A company is criticized, which in my opinion is considered a proven one, but not because it lent you cash, but because you did not lend it to you (so you should not talk about it) or you did not make commitments to the company in a timely manner. Of course, there are situations that the cooperation on the line of the lender – the borrower does not always run as it should. In my experience, however, I can write that if we read a contract and see what is in the repayment schedule, then usually no planned, not nice situations should arise.

What are the consequences of not repaying payday loans and non-bank loans?

This is just the title of the introduction, because the main thread of this article is to deal with the consequences for which we must prepare ourselves if we do not repay non-bank loan installments in a timely manner, or we will not pay back the loaned time in a timely manner. Of course, the use of a specific measure depends mainly on how long our delay in repayment is. In general, however, it looks as if the longer we wait with repayment, the consequences may be greater for us.

Loan repayment requests in the form of SMS, voice or telephone notifications and registered mail

This is the first of the warnings not to repay the loan – companies offering payday loans most often first send an e-mail or text message reminiscent of the repayment date. If the installment of the loan or a payday loan within the set time does not appear on their bank account, it is very likely that in the next days we will receive a call from the loan company and then a loan repayment request by registered mail. What is worth knowing in such a situation is the fact that for each such reminder / reminder we will have to pay extra.

Calculation of additional interest

For each day of delay in repayment of a payday loan or a specific loan installment, we may be charged with interest. Information on this subject and the amount of interest per year should be found in the concluded contract.

Entry in the register of debtors or Retrodatabase database

If the delay in repayment is quite long, it is very likely that we will be included in the registers of debtors such as the National Debt Register, Cres or DIM Infomonitor. The consequences of this may be quite big because once our data is there, we may have a problem in obtaining both a bank loan and a non-bank loan, or even face a problem in signing some contract, eg telecommunications or internet service.

Purchase of our debt by a debt collection company

If we continue to delay in repayment, our contract between the loan company can be terminated and forwarded to the debt collection company. And at this point, not only will we be burdened with an additional fee for the debt collection company to take over, it can only be the beginning of much larger problems, from frequent calls from the debt collection company to the possibility of transferring the case to the court and then the bailiff.

As you can see, the consequences of failing to repay payday loans or non-bank loans can be all the more the debt lasts longer. Therefore, deciding on a non-bank loan, it is worth remembering a few tips that I have repeatedly presented in the articles published in BankerFour, such as Safe borrowing and non-bank loans, or even the problem of paying back the deadline – what next?

No repayment of the payday, consequences of non-repayment of the loan, unpaid loan consequences, not timely repayment of the payment, not timely repayment of the loan

If you are considering a loan, it means that you have specific needs. Nobody lends money, if there is no specific purpose. In the case of taking a loan, it is very important to choose the most advantageous offer. Most advantageous, i.e., where the interest rate is not too high. Good credit is also where additional costs are kept to a minimum. In such a choice, a loan calculator is very helpful. With this tool, you can accurately calculate how much of the loan will cost you. And then you immediately know if such a loan is beneficial. See 2coolwallpapers.com for a summary

A loan from a calculator or a comparison engine?

The loan calculator is not complicated. Most often it is constructed in such a way that using it would not be difficult. Each loan calculator works on a similar principle. Each of them includes the sum you want to borrow. On its basis and on the basis of the repayment period, the amount of individual installments is determined. By changing the repayment time, you can observe how the installment rate changes automatically. If time is shortened, the installment will increase. More advanced calculators are able to suggest even specific bank offers
credit.

With loan calculators, you can set the installment in the amount that suits you best. Unless, of course, the given lender or bank gives this opportunity. Sometimes, there are installments in a certain amount and only these are taken into account. In many cases, the interest calculator is also available to customers. This shows what the costs of the loan will be. Another option is to use the loan comparison engine. This is a less precise form of presenting loan offers, usually in the form of a descriptive description of the advantages and disadvantages and the basic parameters of the loan.

What are the advantages of loan calculators and online comparison websites?

The loan calculators, which operate in the network, allow, above all, to find out which loan is the most advantageous in our situation. Calculators allow you to compare individual loans. Like the OC calculator, you can choose an offer that will meet your expectations. On the other hand, they accurately depict how much the loan will cost and how the terms of its repayment can be determined. Calculators, thanks to precise calculations, allow people to make informed decisions.

With loan calculators available, you do not have to decide on the first better offer. These tools also allow you to assess whether we can afford a given loan. We can use the same tool because we can calculate whether we can repay it online loans. If you know the amount of the installment to be repaid, you can estimate whether the home budget will withstand such another expense. Thanks to loan calculators, decisions related to borrowing money are taken more consciously. And deliberately taken loans are easier to pay off.

We often decide on cash loans at the time of unexpected expenses, or on which we are not able to put down money much earlier. Probably the most common purpose is simply to renovate the apartment. But sometimes these are simply goals related to our dreams. Futher reading at arsivimiz.com

Although we do not have any difficulties getting a cash loan, we can even say that we are very eager to reach for this financial product. However, this does not change the fact that we do not like debt. Even if we have some obligations, we want to get rid of them as soon as possible. And how do banks relate to our willingness to settle debt ahead of schedule?

Repayment ahead of schedule

It would seem that there is nothing better for a bank than to regain its money so that it can be turned again. However, for banking, it is not so obvious. Besides, in banks’ offers we often have reservations that the early repayment is possible only after a certain period of time. Other branches are again expecting to pay an additional commission on this account. No wonder that a kind of rebellion is born in us. In the end, we think that we do a favor to a bank outlet that we are overzealous clients.

The first installments with interest

The answer to the question why not all bank branches are satisfied with this fact is hidden in loan installments. Well, the first of them consist mainly of interest. And interest is nothing more than just pure earnings for the bank. If we choose equal installments, we will pay back the major interest part and the lower the capital part first.

Only at the end of the loan these proportions are significantly changed. The last installments consist mainly of the capital part. Do we now understand why banks insist on paying at least half of the installments on time, and only later can you allow yourself to settle your debt ahead of schedule? When the capital itself is ready for repayment, the bank does not have to worry that it will incur any losses due to early repayment. Or they will not be so high to make any bigger problems because of it. In financial comparison sites we find such cash loan offers, in which we can reckon with the comfort of early repayment without incurring additional costs.