There is a lot of confusion in the minds of people whether trading is similar to gambling. This, however, is not totally true. It depends a lot on the individuals investing style and what his strategy is.

Trading is not the same as gambling. This is because there are fixed odds in gambling for all the common games but when it comes to trading it is totally unpredictable. In trading the house which in this case is the market does not have an unfair advantage that gives it an upper hand. Read bitcoin trader scam review.

However, if you are not disciplined trading and do not stick to your trade strategy, then this would make it difficult for you to be profitable in the market.

To know whether you are trading the market like a trader or a gambler, read on.

Do you go all-in?

Based on what your account type with the brokerage firm is, the firm will offer you to trade with margin. This is over and above the amount that you have in your trading account.

As a trader, you need to have money management rules in place and also calculate the risk-to-reward on each trade. This is important for each transaction that you do. But if you go all-in then this means that you are taking risks that are not necessary. This will cause your profits to fall down substantially.

If you see that you go all-in frequently then this is a sure shot sign that you are trading as a gambler and not as a trader.

Do you overtrade?

Gamblers put money on the table, lose, put money again, lose and put money again and again in the hope that they will win at least one bet. This leads to a financial ruin. This is something that is quite common in the market as well.

Even professional traders have times when they have a bad trading day. If the trader thinks that he is unable to pick up good stocks and profit, then smart traders will stop trading for the period.

But if you are someone who trades even on days when the market is not favoring you and you are putting in more and more money and causing more losses, then this is gambling.

Beating the market is impossible and when you start to try to do so understand that you have crossed the line from being a trader to become a gambler.

Are you taking credit to trade?

Never even take credit to trade in the market. Also, make sure that you do not take loans to trade. This happens when greed creeps in. If you are borrowing to trade or taking out money from your investments to trade in the market, then stop right away. This is not what is called trading. This is pure gambling.

Losing money in the market is fine and this is something that everyone does. But you do not want to be in debt because of the market. You cannot make profits with your own money and you think that you can do so with borrowed money?

Though people have reached outer space and there are talks about travel to the moon for the common man, we are still unable to find ways to deflect nature’s fury when it attacks each season. Hurricanes and tornadoes rip homes apart every year; since we can’t escape them we should at least learn to mitigate our losses and keep our finances as safe as possible.

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As an honest taxpayer, you must be aware that should your property be damaged during a natural disaster you can deduct the loss incurred in your federal income tax returns, and in the event, your region itself is devasted your claims will be processed fast. You must also be aware that you can deduct only if you are not covered by insurance. Those covered by insurance must act fast and claim for reimbursement as soon as possible or your claim will become null and void.

When to deduct your losses

You can deduct a casualty loss only when your property is damaged during a natural disaster like a hurricane, tornadoes, floods or earthquake. Sometimes casualty loss also includes vandalism, theft, and fire. For the normal wear and tear and even termite damage, you cannot claim losses.

How to deduct losses

You can, as a rule, deduct losses only in the year of disaster unless your region has been declared a disaster zone. In such circumstances, you can decide when you want to deduct the loss – either the year of damage or on the returns of the previous year. Thus, for damage in 2018, you can deduct losses from 2017 tax returns and thus lower the tax for that year.

Before you deduct the loss, you must calculate the incurred loss. Follow the below steps to estimate your loss.

  • To begin with, you must be aware of the basis (the capital investment on the property) of your property before disaster strikes. For a property that you bought it will be the cost while for an inherited premise the basis determination is a little more complex. It is normally the fair market value of the property at the time of the demise of the decadent.
  • So, you can calculate your loss by deducting the difference between the fair market value after the casualty and before it.
  • You must also deduct any other form of reimbursement that you hope to get for the house either from insurance or other source and then present the final loss.
  • As a rule, you must reduce $100 on the total loss incurred after a natural disaster. You can claim $100 on any such number of a natural disaster during the year.
  • You must reduce the loss by 10% of the total annual Gross income of the taxpayer. If the loss exceeds this amount only then can you deduct it otherwise the loss is yours to bear. You cannot include loss incurred on any future profits you hope to receive on the property.
  • Fill up form 4684 to file for loss on your tax returns.

We cannot stop natural calamities nor can escape the repercussions but we can do is at least reduce our losses and hope for a more financial stability.


How do you think relying on Artificial Intelligence in effective fund management of client’s portfolio will benefit or will it still be considered as a tool which cannot think beyond human intelligence? It is a parody of sort as professional fund managers cannot have enough of all the stress from the markets that they have a humanoid competing with them! Well, times are changing, robotics is not just limited to science fictions and matter of being metal pieces in art Galleries, they too have evolved from a mere sketch in pen and paper to perform activities which a human can do and in a much better way.

The Invisible One

Assisting fund managers in their operations, placing funds of clients in the top performing financial products, these nonphysical forms of automated software are often termed as the invisible kinds who are out there to transform the operation of a fund house more efficiently and effectively. Now most of us are aware what the Black rock did in replacing AI doing the jobs of the Fund managers, well it is a win some lose some in this field to test the technology. They lost out in a bad trade due to an incorrect algorithm and went bankrupt.

Now should we rely on the AI?

It is not about the win of the human mind over technology, it is just about being cautious not to rely too much on automated biases, which is nothing but too much dependence on technology and its outcome, increases the acceptance of the outcomes. Similar is the experience when it comes to airline industry where there is a lot of experimenting with AI, that pilots avoid major accident related precautions as they are too busy in relying on how an instructionless flight cockpit work, which has resulted in huge loss of human life which cannot be ever, ever replaced.

The dependence on automated systems makes one believe that this is the ultimate step which cannot go wrong and all is well. With Artificial Intelligence Fund managers coming at the behest, they pose a new form of risk both for the investors, as well as the fund houses that are addicted to the automation bias. Though the AI can pick the right kind of investment product they can never match the human mind which has this intuitive capacity to study the entire stock markets within a couple of minutes and save the client from making an incorrect decision.

Everybody has a right to live happily in this world, which is, unfortunately, being thwarted by the state of poverty for few. It is to help these unfortunate ones, the concept of Microfinance arose, in where, small amounts of financial assistance, be it in the name of loans, insurance or savings scheme, is offered to help them able to provide better for them, their family, and their dreams! While every nation in this world is afflicted by some levels of poverty, the situation is critical in the developing nations and therefore, this concept can parlous benefit a majority of the people there, certainly!

To better understand this concept, let us understand the benefits it could offer to the society!

  • Ending poverty

Not everyone you see begging in the streets feels satisfied to do so; a majority of them is secretly awaiting the right chance to end their poverty, which can very well happen with this concept of Microfinance. Providing them with little money, which is so satisfying for them to start a business or get an education can lead them into the path of prosperity by putting an end to their unwanted poverty forever! Since traditional financial institutions would not offer them the assistance, the rescue comes only in the form of Microfinance!

  • Well-developing community

If the people of the community are provided with enough means to fulfill their practical dreams that would lead to the growth and development of the community since negativity has been put down forever.

  • Reduced crime rates

Lack of education and money are the main reasons for most of the crimes happening in the world, which could be very well overcome with the concept of Microfinance and therefore, a fearless community, where crime rates are very much lesser is seen on the rise!

  • Accessibility

A financial emergency, unfortunately, never comes with a prior appointment, which is more critical in the case of unprivileged ones. These poverty-stricken people do not have the opportunity to seek the conventional financial institutions to thwart the danger and therefore, end up succumbing to the emergency, which sometimes, cause them their dear lives. With the concept of Microfinance and the offering Microfinance institutions, access to the financial assistance has increased for these people, which means more dear lives will be protected, appreciably!

  • Increased job opportunities

Through the concept of Microfinance, if the job opportunity is provided for an individual, say helping him/her to start a small business, such as setting up of a small condiment shop, he/she might create additional job opportunities, such as recruiting an assistant to help in the daily chores. This is a small example how Microfinance can create more job opportunities thereby shrinking the unemployment factor, greatly!

There are scores of graduate programs and degrees that teach you the various aspects of finance but very few teach you how to be a smart money manager and utilize your funds prudently and wisely. All the rich in the world have experience learned to be financially savvy. If you wish to save yourself some heartbreak and become one of the smart ones, start here.

To begin with, everyone who wants to use their hard earned money carefully must learn the very basic skills of budgeting. Besides this, they must become knowledgeable about how credit cards work and how investing for a secure future is as essential as breathing.

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Let’s begin…

Mind over math

While it is true that the actual amount of dollars does matter, it boils down to your mindset as to what you make of the amount you earn. With the right mindset, you will learn to keep your expenditures less than your income without compromising on your lifestyle and your essential needs.

The below points will help you take the first step in becoming a smart money manager.

  1. Set expense limits: Always have a clear-cut goal for your financial future. You don’t need complicated pie graphs and projections to plan your finance; just simple math will do. Calculate a comfortable percentage of your income as savings and ensure you do not touch that portion at any cost. This way, your expenditure amount will be limited and you will perforce be spending within limits.
  2. A credit card is for emergencies: While it is really easy to use the plastic card, you will very soon spiral into debt if you are not careful and are not strict about your credit card purchases. The best way to avoid this scenario is to use them only in a dire emergency and not for your regular routine shopping.
  3. Cut down on unnecessary expenses: In the present world, there is a constant onslaught on your senses and your purses from online shopping sites besides the regular brick and mortar stores. You are forever lured to buy things at a discount. Since the human psyche always wants more for less you get conned into buying stuff you don’t need in the process harming your finances without even realizing. Hence, buy only essentials and not things you think you might need somewhere in the distant future.

With a little bit of forethought and planning, it is not difficult to manage your funds comfortably and in a profitable manner.

There are a lot of opportunities and openings for job seekers in the market and this huge population includes people from all sects of life finance, marketing, management etc… Now it is understood from the various opportunities and the market movements that there are a lot of openings for those seeking jobs in the finance-related fields and one very good option for the financial experts is the fund management field. Yes, this is now the trend in the market and there is a huge demand for fund managers in the market today.

But why should you decide to become a fund manager?

  • Top banks and other financial institutions have already moved into this fund management field and are making unimaginable profits here by learning and getting to know the tips and tricks of fund management. So in such a situation, it becomes easy for those seeking an opportunity to flourish well in the market by getting into one of the big companies that are looking out for experts in fund management since this is of utmost importance in any type of company dealing in any type of business.
  • The market is now making a lot of hiring in this field. As said above, there are a lot of opportunities these days owing to the increasing demands of the companies concentrating on managing and controlling the flow of cash in their organization. So getting into the market would be the right and the best time to make use of the chance.
  • A lot of people who are from different backgrounds are also now taking up finance seriously for there is a lot of demand here. The ones who are already from this field have a greater demand and they are preferred by most of the companies and if you are already an experienced person in working with such concerns, you will be the first preference for all companies and there would be a tight fight for you.
  • The reason for anybody to hunt for a job or an opportunity with any company is just to make money. Money is the essential factor for livelihood and it is with this hope and expectation that people strive to get a job with a company. Now the market for this fund manager is really good and as expected the pay for this is also good. There are people who take up this sector on a permanent as well as a temporary basis. The ones who are taken on a temporary basis get paid in the form of fee or charges which is calculated as a percentage of the asset held by a company.

Knowing and analyzing your business at regular intervals is as important as making profits from the business. This means that you need to find out the objectives of the business in the current market, future aspects of the business, the current value of assets and amount of liabilities to be cleared.there are many methods of valuing the business and also it is done professionally. People who take care of doing this at regular intervals can maintain a clear record of their business and this will help them during the audit, making new partnership and also while dissolving the company.

Some of the essential elements of business valuation are:

Economic conditions:

this is the first step required in finding the business value. A business valuation report is made which consists of a summary of the purpose of the valuation, the date and the audience present at that time. It also contains the regional, economic and national information details about the how the business operates o the current market.industry associations, as well as the state governments, also make publications of the statistics of the economic conditions

Financial Analysis:

this is an analysis of the company’s financial position and consists of the reports about the income statement, balance sheet position on the year ending dates. It uses common ratio analysis, trend analysis, and few other methods to calculate these values. This helps the person who does this calculation to make a comparison between similar companies of the same industry and what factors may influence their economic position.

  1. Income, asset, and market approaches: three approaches are effectively used to find the value of the business and make decisions accordingly. The income approach uses the net worth calculation to value the business. The asset approach uses the method of calculating the value of assets of the company and the market approach is to identify the market position by comparing those with the industry standards. These three techniques use different methods to find the value of the business.
  2. Normalization of financial statements: This is a technique followed to find out the income generated by the business to its owners. This is the amount of cash flow which happens in a business and doesn’t affect its operations adversely. The common normalization techniques are comparability adjustments, non-operating adjustments, non-recurring adjustments and discretionary adjustments.

This gives the end to a detailed description of the elements of business valuation which is necessary to find the status of a business in a market.

A trailing stop loss is an important part of the trade because it lets you protect your profits. Traders would agree that many times the trade hits the stop loss even though it was profitable a few minutes back. The trailing stop is used to protect this and to ensure that once the trade starts to move in your direction it is protected and in no circumstance would result in a loss.

How to start trailing your stop loss

Assume that you are going long on a trade. You are bullish about a particular stock and have

technically analyzed it and have found a good support level where you wish to go long. You

place your initial stop loss a few points below the support level.

Once the price hits the support level you are long in the trade. Wait for some time and let the trade start moving in your direction. If it moves in your direction then you are out of the trade when the price hits the stop loss.

However, if the trade starts to move in your favor and you see that you are making profits then you should save your profits. You thus start to think about trailing your stop loss.But which is the best way to do it.

Trailing stop loss

Every asset will have an upward and then a corrective move. So suppose you are long on trade and want to trail your stop loss then wait for the stock to make a high and correct. When the stock has made the correction and has started moving up again wait for it to cross the last high. As soon as the stock does that you can place the trailing stop loss where the price started going up after the corrective move.

You need to keep doing this till the stock hits the trailing stop loss. Once the price hits the trailing stop loss you are out of the trade.

Why is this method a logical way to trail stop loss?

If the stock is in an uptrend then it is making higher highs and higher lows. Your trailing stop loss is placed below the low. When the stock price makes lower lows it is that time that it could indicate that the trade is changing the course of direction. This could mean that the trend is changing and thus you need to be out of this trade soon.

The idea of entrepreneurship and becoming a successful business leader is a dream for many. We need to be well educated in being clear about the requisites of a business. Making a proper and simple business plan and getting too smart strategies are essential in a business startup.

Finding a proper investment and sponsor to fund for you can be a difficult and challenging task. This is accomplished by diversifying the sources of funds rather than putting everything in one fund. There are some tips for beginners and advice to follow for financing a new business. Some of them are discussed here for the awareness of all.

These are the typical sources of finance for a business:

  • Personal investment: the money you have saved in the previous years from your income can be the best and most useful one when you decide to start a business can also be a collateral of your cash or belongings such as jewels or real estate. This has a personal emotion connected when you are able to use your own money for the long dreamt wish of yours.
  • Love money: the money provided to you by your loved ones, spouse, family or friends is called as love money. This helps you at this time of need.this is also called a patient capital which means the money which will be repaid after the business progresses.
  • Venture capital: the capital amount which is deposited in the business at the beginning and expects returns in future is one crucial financing form. Venture capitalists focus on the business plan and need assurance as to how the business will be developed.
  • Angels: these are wealthy people or retired professionals who like to fund for the people who want to start a business. This they do by expecting a share of profits or by expecting ownership share.
  • Business incubators: these are the people who focus on helping the business at different stages of the business. There is also a class of business incubators who help for job creation, revitalization and hosting and sharing of services.
  • Government grants and subsidies: there is an opportunity when the government provides some exciting loan offers at every fewer rate of interests to start a business.getting such grants can be tough as they require every entrepreneur to submit a detailed plan of the business, the financial requirements and its justification and details of the experienced key people.once you submit a proposal it is verified and approved.
  • Bank loans: these are the most sought-after type of financial help which are also of many varieties as per the requirement of the business people. The bankers also will look out for the trusted and most credible borrowers so that repayment is not a pain.

This concludes the financial requirements for a new business start up from the general point of view. This will help to create knowledge for the people who want to make their business dreams come true.