3 Easy Ways to Find Extra Investing Cash

You have precious little time to make income in life. If you divide life into fourths, you only have a quarter of your life – or 20 years – to really grow your lifetime earnings. Lifetime earnings are the collective income a person receives through a myriad of sources throughout the span of their life. The primary source of lifetime earnings is your job, but experts say that may not be enough. It’s becoming more and more important to use investing cash as a significant source for lifetime earnings.

According to data received by the Census Bureau, the average per capital income in 2011 is a paltry $27,915 with households earning only $52,762. Studies show that the shortfall between lifetime income and lifetime needs is over $50 billion in America and inflation and taxes are making the trend worse. With the gap between lifetime income and needs growing, having some investing cash is important since its one of the only sources of income that is able to extend a person’s lifetime earnings without extending the amount of hours they work.

But let’s face it. Investing cash is hard to find – especially in our economy. With rising taxes and increasing inflation whittling at your wages, finding those extra pennies requires much more than a pinch.  Fortunately, there are ways of finding investing cash beyond your annual income. Here are some suggestions to help you get started:

Sell Some Assets to Make Investing Cash

Most homes have a tidy sum of investment money sitting in closets, out in the garage, or stuffed in a drawer. The expected ROI (return on investment) for a closet full of old clothes is much less than the cash equivalent invested in your favorite mutual fund. So have a yard sale and make a little extra investing cash!

Stop Going to McDonalds and Save Investing Cash

The size of the fast food industry in 2010 was $184 billion. Needless to say, the gap between lifetime earnings and needs could be drastically reduced with fewer trips to McDonalds. Saving $5 on fast food and convenience stores can add up to $25 a week, or up to $100 of investing cash a month.

Investing Groups Offer Free Investing Cash

Another source of investing cash is the financial industry itself. It is common practice in the industry to provide investment money to people who have a successful investing track record. The challenge is becoming successful without having the cash to prove it.  One solution might be Apiary Fund. Apiary Fund is an investor education company that gives people investing cash to manage while they learn from professional investors how to manage money. It’s kind of like on-the-job training. You must complete their training program, which requires a small tuition fee and practice in a simulated account, before they fork over the investing cash, but they pay cash for your share of the profits, so it’s a fantastic way to earn while you learn!

Look no further than a list of the world’s wealthiest people and you’ll discover that producing income from investing cash is an effective way to increase your lifetime earnings and you don’t have to be a huge wage earner to do it. Through small – yet effective – resources, you can pull together a nice sum of investing cash that you can put to work to grow your lifetime earnings.

Author: Shawn Lucas |

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Investing Skills Can Be Developed

Investing skills are developed over time like learning to play the piano.  You wouldn’t expect to play a concerto the day you first sit down at the piano, so why do people expect a great performance when they place their first investment?  It’s interesting to me that people put more time into learning an instrument than they do in learning to manage their assets more effectively.  The probability of positive returns is so small in music, yet we commit so much time.  Contrastingly, the probability of a positive return is so great in the financial markets, yet we commit so little time.  It’s an anomaly.  Let me suggest three things you can do to improve your investing skills:

1. Make Time to Develop Your Investing Skills

Investing skills requires time to develop.  My daughter’s piano teacher expects a half an hour of practice everyday.  The book Outliers, by Malcom Gladwell, puts forth the premise that to be an expert in your field requires a devotion to one’s craft for at least 10,000 hours.   I am not sure that successful trading requires 10,000 hours, but I do know that if you do not set aside time to practice, you’ll never master the craft.  The fact is simple:  successful investors – professional or otherwise – set time aside to master their investing skills.

2. When Your Practice Your Investing Skills, Keep it Real

One challenge in practicing to develop your investing skills is that simulation is easy to cheat.  Whether you’re trading on paper or through a demo platform, it’s easy to let things go.  Going back to my little piano performer, she sometimes gets sloppy in her posture, fingering, timing and tempo.  I remember her teacher telling her, “Practice does not make perfect.  Perfect practice makes perfect.”  Since investing is a skill, keep things as real and disciplined as possible so that you practice is beneficial in real life environments.

3. Keep Your Eyes Open for Ways to Develop Your Investing Skills

The good Lord gave you eyes to learn. When practicing your investing skills keep your eyes open and stay observant.  Watch how the market forms, how it develops.  Watch how your strategies interact with the market during the repetitive iterations of your practice sessions.  Skill is developed through testing, observation, adjustments and more testing, but skills development cannot occur if you don’t see the details in both the big AND small picture.  My daughter’s performance on the piano can be altered dramatically depending on the position and pressure of the strike of her finger on the keyboard.  Developing your investing skills requires your attention to detail and your attention to detail will pay dividends in your performance.

I know that not everyone shares my love and passion for investing.  I know there are returns from learning an instrument that cannot measured in monetary forms.  I know that not everyone has the capacity to put the time into practicing his or her investing skills as I have.  Fortunately, investing skills can yield positive returns quickly and a little practice goes a long way.  Investing is a skill that has a high probability of success.  Investing skills can be learned by anyone with the desire to master it.

Author: Shawn Lucas |

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Seven 2013 New Year Resolutions to Avoid Your Personal Fiscal Cliff

With Christmas 2012 now behind us, most people turn their attention to the new year. Many will make New Year resolutions to better themselves and their families. If one or more of your New Year resolutions for 2013 are financial related, we encourage you to consider seven possible resolutions to help you avoid your own personal fiscal cliff.

 

  1. Resolve to diversify your income. You can diversify your money by taking a small portion of your income and putting it to work for you in other investments. Doing so will put your money to work and give you additional forms of income in addition to your job earnings. Even $50 – $100 more per week in earned income can have a significant impact on your personal finance situation. It allows you to trade money for money instead of just time for money.
  2. Resolve to use leverage. Like any industry that uses tools, leverage is the tool of choice in the financial world. Using small amounts of collateral or money deposits to control larger amounts of investment gives your money a bigger bang for your buck. A lot of people don’t understand what leverage is or how to use it. If you resolve to learn how to use it properly, it can become a powerful tool to allow you to do things with your personal investments that you couldn’t do before.
  3. Resolve to diversify your risk. Risk diversification is key to financial success, but most people fail to diversify risk correctly by forgetting most of their assets are in U.S. dollars. Diversifying some of your assets in foreign denominated currency can add that last bit of safety you need in case of a deterioration of the U.S. dollar.
  4. Resolve to invest in yourself. You don’t need to eat the entire financial elephant in one sitting, instead commit to investing a small amount of time each week learning new financial strategies and concepts. In just a few short weeks, your new found knowledge can sharpen your financial skills and senses.
  5. Resolve to follow your personal investing style. Just as certain physical traits are more conducive to different sports or certain personality traits are helpful in different professions, each person has financial traits conducive to different styles of financial management – financial traits that are good for success. Learn what makes you tick and invest based on your personal financial trait.
  6. Resolve to always pre-calculate your risk of loss. Any time you put money to work, there is a risk of loss. Risk of loss should not be a problem if you correctly calculate the risk before you invest and are financially willing to accept some predicted loss. A good investment is one where the potential gain is greater than the pre-calculated loss.
  7. Resolve to mix-up your markets. There are more markets than just the stock market – or the mutual fund market. There are five separate and independent financial markets: stocks, bonds, derivatives, commodities, and currency. Not all markets move the same way at the same time. This opens up new opportunities for profit as well as protection. Learning what the other markets are and their structure and advantages can give you a leg up in your financial future.


Apiary Fund is a great source for you to use in achieving these and many other resolutions in 2013 that can help you shore up your finances and supplement your income. If nothing else, it provides great training and education on how to successfully trade currency. Once training is complete, you can supplement your income by becoming an Apiary trader. There is no risk, no investment required – you are given an account to trade Apiary’s funds and share in the profits of your successful trades.

We wish everyone a very happy and prosperous 2013!

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Announcing the Investor Profile!

In our live trading room this morning, Shawn announced the launch of Apiary’s newest product: the Investor Profile!

The Investor Profile is a personality assessment developed by the Apiary Fund to help investors to recognize their natural internal characteristics that may prove to be beneficial or detrimental to their success. Your success as an investor has as much to do with your personality as it does your level of expertise. Was Gordon Gekko successful due only to his level of knowledge, or do you suppose he used his aggressive personality to complement his knowledge of the financial markets? It’s important to recognize characteristics inherent to your personality and develop a complementary trading style.

We know the Investor Profile will be a valuable tool for our traders. It will help yourecognize your basic desires and motivations that have significant effects on your trading. You’ll gain insight into your natural reaction to pressure—a factor which alone can dramatically alter your normal behavior. The Investor Profile will help articulate the unique challenges that come with your personality type, and it will provide suggestions to help increase performance.

The Investor Profile is open to all Apiary Fund associates, so if you haven’t seen it yet, go here to check it out!

If you’re not currently an associate with the Apiary Fund, but would like to know more, feel free to give us a call at 1-801-701-1650, email us, or visit our orientation webinar!

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Establishing your Trading Psychology

Because trading psychology is one of the most important aspects of our industry, we emphasize the need for emotional discipline. Now don’t get us wrong—you don’t have to be a robot to see success in your trading, but you certainly need to be in control of your emotions.

Trading becomes a whole new ball game once you’ve earned a live, funded account. Statistically, there are some significant changes in behavior that manifest themselves when the money is real. Though the initial balance is smaller on a live account, which reduces the impact of a single trade, we still tend to get a little cautious with real money. Too often, newly-funded traders’ equity curves begin to show a downward slope because they suddenly aren’t letting trades run and they’re cutting their winners short—all in the name of capital preservation!

To counteract this, we at the Apiary Fund emphasize that traders should establish a set of rules and stick to them. There isn’t a set of universal trading strategies that work for everyone, but when you find out what works for you, practice with it. Tweak it when you need to. But once you’ve established those rules, don’t ever break them.

The rules won’t always determine which positions you take, but they should help determine how long you hold them. It will be easier to accept losses that way. You will put less pressure on yourself, and you’ll find that your trading will improve!

To read more on this subject, take a look at this blog post.

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A Tip on Trading Systems

With Thanksgiving just a couple days away, we’d like to not only encourage a balance in your diet that will leave you feeling healthy and proud, but we’d also encourage a balance between risk and reward in your trading system!

Here’s an example of risk vs reward: If you go to a casino and bet everything you have on red, then you have a 49% chance of doubling your money and a 51% chance of losing everything. The same applies to trading; you can make a lot of money if you’re risking a lot, but then risk of ruin is very high. You need to find a healthy balance between risk and reward.

Let’s say you define ruin as losing 20% of your account and success as making 20% profit. Having a trading system with past performance results lets you calculate your risk of ruin and your chance of success.

Your risk of ruin should be always less than 5%, and your chance of success should be 5-10 times higher. So, if your risk of ruin is 4%, then your chance of success should be 40% or higher.

This is just a little trading system tip to keep in mind over the holiday! We at the Apiary Fund are sure thankful for all of you that make this community so great! Have a happy Thanksgiving, and if you’re traveling, be safe!

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The Winter 2013 Traders’ Summit

The Winter 2013 Traders’ Summit is fast approaching, so we hope you’re preparing! In case you haven’t heard of Apiary’s Traders’ Summit before, from February 25-27, we’ll be gathering together to discuss trading systems, risk management, trading psychology, as well as taking part in some great live trading sessions!

Our plan is to start on Monday, the 25th at 9:00am and end at 5:00pm. It will be a day full of introductions and non-stop forex trading instruction, with the exception of a break for lunch.

On Tuesday, we’ll be starting much earlier with live trading at 6:00am. It’s early, but we’d like to get a good time for volatility as the European and US markets overlap so that we can demonstrate a lot of live trades. We’ll have some expert traders at the front of the room explaining their methodologies for getting in and out of trades as they happen. After a good 2 hours of live trading demonstration, we’ll continue the day with instruction on developing your personal trading system and managing psychology. Because of the early start, we’ll wrap up at 2:00pm in the afternoon, leaving some time for nearby activities.

Finally, on Wednesday we’ll start again at 6:00am with another 2-hour live trading session with expert traders. After another information-filled day, we’ll exchange closing remarks and try to wrap up around 2:00pm.

If you want to know more, visit our summit website to see photos and read reviews from our Fall 2012 Traders’ Summit. If you haven’t reserved your seat yet, register today!

Did you go to the last Traders’ Summit? Let us know what you thought!

 

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Three Stop Loss Rules for Every Trader

Stop losses are an essential part of any risk management system because they help traders resist trading on emotions. Whenever you open a trade, you should always set a stop loss. If you stick to your plan and don’t move them, you’ll find you won’t ever let your losses run too long. Remember these rules:

1. A stop loss should be considered and decided before a position is entered.
2. A stop loss should be placed immediately at the time of entry.
3. A stop loss amount should not allow more than a 2% loss of your account balance—for day trades and scalp trades, a stop loss should not allow more than 1% loss of account balance.

Remember these rules and implement them! Good luck and happy trading!

 

Did you find this post helpful? Try taking a look at Apiary’s glossary!

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