4 Good Reasons to Get a Refinance Home Loan

Refinance Your Home Now and Lower Your Interest Rate

What is a refinance home loan?
A refinance home loan or a home loan refinance is a new loan obtained through your lender or a new lender to pay off existing loan. However, you may opt to apply for a lower interest rate and or cash out on your homes equity.

When should I refinance my home? It is a known fact that interest rates are lower than they have been in years. This is due to our fast paced and ever changing economy and market. Now would be the perfect opportunity to refinance your home to obtain a lower interest rate. Even a .25 difference can save you thousands of dollars a year in mortgage payments.

Why should I refinance my home?
There are several reasons home owners decides to refinance. The four most common reasons include:

To obtain a lower interest rate
Home owner generally are aware of interest rate down fall. They take advantage of this opportunity by applying to a refinance loan to lower their existing interest rates and save money on mortgage expenses. The money that a borrower saves on mortgage expenses can be invested in other financial investments.

To receive a refinance cash out
Some home owners who have enough equity accumulated in their homes refinance to cash out their equity and get a lower interest rate

To make home improvements
Sooner than later you will find that maintaining your home is hard work (not to mention quite expensive). In most cases, home owners will pursue a refinance, rather than a personal loan, in order to save on interest rates. A personal loan may have higher interest rates and are normally, not as large as a home improvement loan.

To change loan programs
A majority of home owner refinance because they are not satisfied with their current loan program. They may be under a 5 year arm, but somewhere down the line they decided they would prefer a 30 year fixed loan. Whatever the reason may be, a refinance home loan will solve the problem.

What are the benefits of refinancing my home?
There are several benefits included with refinancing your home, including:
Your credit may be in better standings then before you purchased your home, now you can refinance and obtain a more suitable loan, with lower interest rates and terms.
Or, you can obtain a home equity line of credit and have cash available when you need it.
With refinance cash out, your lender can consolidate your bills and pay off all of your debt. You will not have to deal with the hassle by yourself.

What are the different refinance loan options?
As with a traditional loan, refinance home loans offer some of the same loan programs, such as:
10/15/30 year fixed
Zero Down
Interest Only
And so on

Where can I refinance my loan?
You can apply for a refinance home loan through your current lender. Or you may search for a new lender more suitable to your financial needs. This search can be done by internet search, flipping through the yellow pages, or consulting with your real estate agent.

4 Good Reasons to Get a Refinance Home Loan

Refinance Your Home Now and Lower Your Interest Rate

What is a refinance home loan?
A refinance home loan or a home loan refinance is a new loan obtained through your lender or a new lender to pay off existing loan. However, you may opt to apply for a lower interest rate and or cash out on your homes equity.

When should I refinance my home? It is a known fact that interest rates are lower than they have been in years. This is due to our fast paced and ever changing economy and market. Now would be the perfect opportunity to refinance your home to obtain a lower interest rate. Even a .25 difference can save you thousands of dollars a year in mortgage payments.

Why should I refinance my home?
There are several reasons home owners decides to refinance. The four most common reasons include:

To obtain a lower interest rate
Home owner generally are aware of interest rate down fall. They take advantage of this opportunity by applying to a refinance loan to lower their existing interest rates and save money on mortgage expenses. The money that a borrower saves on mortgage expenses can be invested in other financial investments.

To receive a refinance cash out
Some home owners who have enough equity accumulated in their homes refinance to cash out their equity and get a lower interest rate

To make home improvements
Sooner than later you will find that maintaining your home is hard work (not to mention quite expensive). In most cases, home owners will pursue a refinance, rather than a personal loan, in order to save on interest rates. A personal loan may have higher interest rates and are normally, not as large as a home improvement loan.

To change loan programs
A majority of home owner refinance because they are not satisfied with their current loan program. They may be under a 5 year arm, but somewhere down the line they decided they would prefer a 30 year fixed loan. Whatever the reason may be, a refinance home loan will solve the problem.

What are the benefits of refinancing my home?
There are several benefits included with refinancing your home, including:
Your credit may be in better standings then before you purchased your home, now you can refinance and obtain a more suitable loan, with lower interest rates and terms.
Or, you can obtain a home equity line of credit and have cash available when you need it.
With refinance cash out, your lender can consolidate your bills and pay off all of your debt. You will not have to deal with the hassle by yourself.

What are the different refinance loan options?
As with a traditional loan, refinance home loans offer some of the same loan programs, such as:
10/15/30 year fixed
Zero Down
Interest Only
And so on

Where can I refinance my loan?
You can apply for a refinance home loan through your current lender. Or you may search for a new lender more suitable to your financial needs. This search can be done by internet search, flipping through the yellow pages, or consulting with your real estate agent.

10 Easy Ways To Organize Your Business Finances

Whether you are a new entrepreneur or a more experienced business owner, taking control of your finances can feel like a part-time job. Some simple tips can help you streamline your time, organize your finances and reduce the stress of business money matters.

1. Keep Your Bills in One Place

When the mail comes, make sure it goes in one place. Misplaced bills can be the cause of unwanted late fees and can damage your credit rating. Whether it's a drawer, a box, or a file, be consistent. Size is also important. If you get a lot of mail, use an area that won't get filled up too quickly.

2. Pay Your Bills on Schedule

Bill paying can be simplified if it's done at scheduled times during the month. Depending on how many bills you receive, you can establish set times each month when none of your bills will be late. If you're paying bills as you receive them, chances are you're spending too much time in front of the checkbook. Although bills may state "Payable Upon Receipt", there's always a grace period. Call the creditor to find out when they need to receive payment before the bill is considered late.

3. Read Your Credit Card Statements

Most people take advantage of low interest credit card offers but never read their statements when paying the bill. Credit cards are notorious for using low interest as bait for new customers then switching to higher rates after a few months. Make a habit of looking at your statement carefully to see what interest rate you are paying each month and if any transaction fees have been applied. If the rate increases or a transaction fee appears on your statement, a simple call to the credit card company can oftentimes be beneficial in resolving the matter. If not, try to switch your money to a more favorable rate.

4. Take Advantage of Automatic Payments

Most banks offer a way to automatically deduct money from your account to pay creditors. In addition, the creditors usually offer a lower interest rate when you sign up for this payment option because they get their money faster and on-time. Consider it as one fewer check to write, envelope to lick and stamp to buy. Just make sure you record the deduction when the automatic payment is scheduled or you run the risk of bouncing other checks.

5. Computerize Your Checkbook

Using a software program is a handy way to organize your finances. Whether it's Quicken(r), Microsoft Money(r) or another package, these easy-to-use programs make bill paying and bank reconciliation a cinch. Computer checks can be ordered almost anywhere and fit right into most printers. Once the checks are printed, all of the information is automatically recorded in your electronic checkbook. Furthermore, many banks have direct downloads into these software packages so when money is deposited or withdrawn, the transaction is entered immediately onto your computer. And, when it comes time to do taxes, it couldn't be easier.

6. Get Overdraft Protection

Most banks have a service where, if you run the risk of bouncing a check, the money will come from another source. For a nominal fee, the bank will link your checking account to either a savings, money market, or credit card so the embarrassment of bouncing a check will be avoided. Call or visit your bank to learn about this convenient feature.

7. Cancel Unused Accounts

Whether it's a credit card or bank account, write a letter requesting that the account is formally closed. Not only will this improve your credit score, it is a useful way to avoid money from being scattered all over the place. Don't let department stores and credit card companies lure you into opening new accounts by offering favorable interest rates and purchase discounts. It's easy for credit to get out of hand by taking advantage of every credit offer that comes your way.

8. Consolidate Your Accounts

If you have several credit card accounts with outstanding balances, try to consolidate them into one. Be careful and check the balance transfer interest rates and one-time fees. Also, make a list of all your open Money Markets, Savings, CDs, IRAs, Mutual Funds, and other accounts to see if any consolidation can be done. Keeping your money in fewer places eliminates all of the guesswork involved and reduces errors.

9. Establish Automatic Savings

Create a link from your checking account into a savings account that will not be touched. This can usually be done through the banks and automatic amounts will be transferred over each month. Most people will not put money into a savings account on a regular basis. They may wait until a large tax refund check arrives or some other event to actually deposit money into savings, retirement or other accounts. If you establish an automatic savings deposit every month, your accounts will begin accumulating money faster than you think.

10. Clean up Your Files

Make sure your paid bills are organized in a filing cabinet. Keep individual files for paid bills. Go through your files at the end of each year and throw out bills and receipts no longer needed for auditing purposes. Contact your local IRS office to see how long records need to be kept for audits. Usually federal tax return audits can be done three years back but cancelled checks may need to be kept for seven. Consult the Internet for auditing and records-keeping procedures for your state or region.

10 Easy Ways To Organize Your Business Finances

Whether you are a new entrepreneur or a more experienced business owner, taking control of your finances can feel like a part-time job. Some simple tips can help you streamline your time, organize your finances and reduce the stress of business money matters.

1. Keep Your Bills in One Place

When the mail comes, make sure it goes in one place. Misplaced bills can be the cause of unwanted late fees and can damage your credit rating. Whether it's a drawer, a box, or a file, be consistent. Size is also important. If you get a lot of mail, use an area that won't get filled up too quickly.

2. Pay Your Bills on Schedule

Bill paying can be simplified if it's done at scheduled times during the month. Depending on how many bills you receive, you can establish set times each month when none of your bills will be late. If you're paying bills as you receive them, chances are you're spending too much time in front of the checkbook. Although bills may state "Payable Upon Receipt", there's always a grace period. Call the creditor to find out when they need to receive payment before the bill is considered late.

3. Read Your Credit Card Statements

Most people take advantage of low interest credit card offers but never read their statements when paying the bill. Credit cards are notorious for using low interest as bait for new customers then switching to higher rates after a few months. Make a habit of looking at your statement carefully to see what interest rate you are paying each month and if any transaction fees have been applied. If the rate increases or a transaction fee appears on your statement, a simple call to the credit card company can oftentimes be beneficial in resolving the matter. If not, try to switch your money to a more favorable rate.

4. Take Advantage of Automatic Payments

Most banks offer a way to automatically deduct money from your account to pay creditors. In addition, the creditors usually offer a lower interest rate when you sign up for this payment option because they get their money faster and on-time. Consider it as one fewer check to write, envelope to lick and stamp to buy. Just make sure you record the deduction when the automatic payment is scheduled or you run the risk of bouncing other checks.

5. Computerize Your Checkbook

Using a software program is a handy way to organize your finances. Whether it's Quicken(r), Microsoft Money(r) or another package, these easy-to-use programs make bill paying and bank reconciliation a cinch. Computer checks can be ordered almost anywhere and fit right into most printers. Once the checks are printed, all of the information is automatically recorded in your electronic checkbook. Furthermore, many banks have direct downloads into these software packages so when money is deposited or withdrawn, the transaction is entered immediately onto your computer. And, when it comes time to do taxes, it couldn't be easier.

6. Get Overdraft Protection

Most banks have a service where, if you run the risk of bouncing a check, the money will come from another source. For a nominal fee, the bank will link your checking account to either a savings, money market, or credit card so the embarrassment of bouncing a check will be avoided. Call or visit your bank to learn about this convenient feature.

7. Cancel Unused Accounts

Whether it's a credit card or bank account, write a letter requesting that the account is formally closed. Not only will this improve your credit score, it is a useful way to avoid money from being scattered all over the place. Don't let department stores and credit card companies lure you into opening new accounts by offering favorable interest rates and purchase discounts. It's easy for credit to get out of hand by taking advantage of every credit offer that comes your way.

8. Consolidate Your Accounts

If you have several credit card accounts with outstanding balances, try to consolidate them into one. Be careful and check the balance transfer interest rates and one-time fees. Also, make a list of all your open Money Markets, Savings, CDs, IRAs, Mutual Funds, and other accounts to see if any consolidation can be done. Keeping your money in fewer places eliminates all of the guesswork involved and reduces errors.

9. Establish Automatic Savings

Create a link from your checking account into a savings account that will not be touched. This can usually be done through the banks and automatic amounts will be transferred over each month. Most people will not put money into a savings account on a regular basis. They may wait until a large tax refund check arrives or some other event to actually deposit money into savings, retirement or other accounts. If you establish an automatic savings deposit every month, your accounts will begin accumulating money faster than you think.

10. Clean up Your Files

Make sure your paid bills are organized in a filing cabinet. Keep individual files for paid bills. Go through your files at the end of each year and throw out bills and receipts no longer needed for auditing purposes. Contact your local IRS office to see how long records need to be kept for audits. Usually federal tax return audits can be done three years back but cancelled checks may need to be kept for seven. Consult the Internet for auditing and records-keeping procedures for your state or region.

Saving is sin, and spending is virtue...Interesting article by an unknown Indian Economist

Japanese save a lot. They do not spend much. Also Japan exports far more than it imports. Has an annual trade surplus of over 100 billions. Yet Japanese economy is considered weak, even collapsing.

Americans spend, save little. Also US imports more than it exports. Has an annual trade deficit of over $800 billion. Yet, the American economy is considered strong and trusted to get stronger.

But where from do Americans get money to spend?

They borrow from Japan , China and even India . Virtually others save for the US to spend. Global savings are mostly invested in US, in dollars.

India itself keeps its foreign currency assets of over $100 billions in US securities. China has sunk over $600 billion in US securities. Japan 's stakes in US securities is in trillions.

Result:

The US has taken over $5 trillion from the world. So, as the world saves for the US , Americans spend freely. Today, to keep the US consumption going, that is for the US economy to work, other countries have to remit $180 billion every quarter, which is $2 billion a day, to the US !

A Chinese economist asked a neat question. Who has invested more, US in China , or China in US? The US has invested in China less than half of what China has invested in US.

The same is the case with India . We have invested in US over $100 billion. But the US has invested less than $20 billion in India .

Why the world is after US?

The secret lies in the American spending, that they hardly save. In fact they use their credit cards to spend their future income. That the US spends is what makes it attractive to export to the US . So US imports more than what it exports year after year.

The result:

The world is dependent on US consumption for its growth. By its deepening culture of consumption, the US has habituated the world to feed on US consumption. But as the US needs money to finance its consumption, the world provides the money.

It's like a shopkeeper providing the money to a customer so that the customer keeps buying from the shop. If the customer will not buy, the shop won't have business, unless the shopkeeper funds him. The US is like the lucky customer. And the world is like the helpless shopkeeper
financier.

Who is America 's biggest shopkeeper financier? Japan of course. Yet it's Japan which is regarded as weak. Modern economists complain that Japanese do not spend, so they do not grow. To force the Japanese to spend, the Japanese government exerted it self, reduced the savings rates, even charged the savers. Even then the Japanese did not spend (habits don't change, even with taxes, do they?). Their traditional postal savings alone is over $1.2 trillions, about three times the
Indian GDP. Thus, savings, far from being the strength of Japan , has become its pain.

Hence, what is the lesson?

That is, a nation cannot grow unless the people spend, not save. Not just spend, but borrow and spend. Dr. Jagdish Bhagwati, the famous Indian-born economist in the US , told Manmohan Singh that Indians wastefully save. Ask them to spend, on imported cars and, seriously, even on cosmetics! This will put India on a growth curve. This is one of the reason for MNC's coming down to India , seeing the consumer spending. "Saving is sin, and spending is virtue."

But before you follow this neo economics, get some fools to save so that you can borrow from them and spend!!!

Saving is sin, and spending is virtue...Interesting article by an unknown Indian Economist

Japanese save a lot. They do not spend much. Also Japan exports far more than it imports. Has an annual trade surplus of over 100 billions. Yet Japanese economy is considered weak, even collapsing.

Americans spend, save little. Also US imports more than it exports. Has an annual trade deficit of over $800 billion. Yet, the American economy is considered strong and trusted to get stronger.

But where from do Americans get money to spend?

They borrow from Japan , China and even India . Virtually others save for the US to spend. Global savings are mostly invested in US, in dollars.

India itself keeps its foreign currency assets of over $100 billions in US securities. China has sunk over $600 billion in US securities. Japan 's stakes in US securities is in trillions.

Result:

The US has taken over $5 trillion from the world. So, as the world saves for the US , Americans spend freely. Today, to keep the US consumption going, that is for the US economy to work, other countries have to remit $180 billion every quarter, which is $2 billion a day, to the US !

A Chinese economist asked a neat question. Who has invested more, US in China , or China in US? The US has invested in China less than half of what China has invested in US.

The same is the case with India . We have invested in US over $100 billion. But the US has invested less than $20 billion in India .

Why the world is after US?

The secret lies in the American spending, that they hardly save. In fact they use their credit cards to spend their future income. That the US spends is what makes it attractive to export to the US . So US imports more than what it exports year after year.

The result:

The world is dependent on US consumption for its growth. By its deepening culture of consumption, the US has habituated the world to feed on US consumption. But as the US needs money to finance its consumption, the world provides the money.

It's like a shopkeeper providing the money to a customer so that the customer keeps buying from the shop. If the customer will not buy, the shop won't have business, unless the shopkeeper funds him. The US is like the lucky customer. And the world is like the helpless shopkeeper
financier.

Who is America 's biggest shopkeeper financier? Japan of course. Yet it's Japan which is regarded as weak. Modern economists complain that Japanese do not spend, so they do not grow. To force the Japanese to spend, the Japanese government exerted it self, reduced the savings rates, even charged the savers. Even then the Japanese did not spend (habits don't change, even with taxes, do they?). Their traditional postal savings alone is over $1.2 trillions, about three times the
Indian GDP. Thus, savings, far from being the strength of Japan , has become its pain.

Hence, what is the lesson?

That is, a nation cannot grow unless the people spend, not save. Not just spend, but borrow and spend. Dr. Jagdish Bhagwati, the famous Indian-born economist in the US , told Manmohan Singh that Indians wastefully save. Ask them to spend, on imported cars and, seriously, even on cosmetics! This will put India on a growth curve. This is one of the reason for MNC's coming down to India , seeing the consumer spending. "Saving is sin, and spending is virtue."

But before you follow this neo economics, get some fools to save so that you can borrow from them and spend!!!

38 steps to becoming a trader

1. We accumulate information - buying books, going to seminars and researching.

2. We begin to trade with our 'new' knowledge.

3. We consistently 'donate' and then realise we may need more knowledge or information.

4. We accumulate more information.

5. We switch the commodities we are currently following.

6. We go back into the market and trade with our 'updated' knowledge.

7. We get 'beat up' again and begin to lose some of our confidence. Fear starts setting in.

8. We start to listen to 'outside news' and to other traders.

9. We go back into the market and continue to 'donate'.

10. We switch commodities again.

11. We search for more information.

12. We go back into the market and start to see a little progress.

13. We get 'over-confident' and the market humbles us.

14. We start to understand that trading successfully is going to take more time and more knowledge than we anticipated.

MOST PEOPLE WILL GIVE UP AT THIS POINT, AS THEY REALISE WORK IS INVOLVED.
15. We get serious and start concentrating on learning a 'real' methodology.

16. We trade our methodology with some success, but realise that something is missing.

17. We begin to understand the need for having rules to apply our methodology.

18. We take a sabbatical from trading to develop and research our trading rules.

19. We start trading again, this time with rules and find some success, but over all we still hesitate when it comes time to execute.

20. We add, subtract and modify rules as we see a need to be more proficient with our rules.

21. We feel we are very close to crossing that threshold of successful trading.

22. We start to take responsibility for our trading results as we understand that our success is in us, not the methodology.

23. We continue to trade and become more proficient with our methodology and our rules.

24. As we trade we still have a tendency to violate our rules and our results are still erratic.

25. We know we are close.

26. We go back and research our rules.

27. We build the confidence in our rules and go back into the market and trade.

28. Our trading results are getting better, but we are still hesitating in executing our rules.

29. We now see the importance of following our rules as we see the results of our trades when we don't follow the rules.

30. We begin to see that our lack of success is within us (a lack of discipline in following the rules because of some kind of fear) and we begin to work on knowing ourselves better.

31. We continue to trade and the market teaches us more and more about ourselves.

32. We master our methodology and our trading rules.

33. We begin to consistently make money.

34. We get a little over-confident and the market humbles us.

35. We continue to learn our lessons.

36. We stop thinking and allow our rules to trade for us (trading becomes boring, but successful) and our trading account continues to grow as we increase our contract size.

37. We are making more money than we ever dreamed possible.

38. We go on with our lives and accomplish many of the goals we had always dreamed of.

Most traders will identify with this list and should be able to place themselves within these steps.

Keep in mind that very few people progress through these steps in an orderly fashion. Developing your trading skills is an iterative process.

For example, you may reach Step 13., find that although you were making money, your basic premise for trading was flawed (you might have been benefiting from the bull market, rather than your own trading prowess and then have been rudely awakened when the market entered a bear phase) and you may drop back to Step 4 and start 'climbing' the steps again.

Having the proper mindset, attitude and psychological makeup becomes increasingly important as you progress through the steps.

The focus of the earlier steps is on external issues, i.e. developing proficiency in the mechanics of trading while the focus of the latter steps (particularly from Step 30, on) is on internal issues, i.e. improving ourselves mentally and psychologically, maturing as trader.

Dollar Vs Rupee - The Currency Fight

Like past few weeks, whenever I happen to see the exchange rate comparison in the evening news, I see the US dollar value dropping day by day instead of going up which was the case in the past. Its surely grabing lot of attention these days among the economist and traders all over the world.

Just in few months, dollar value has gone down around 35% pairing with most famous currencies like EURO, YEN, JPN and SWISS. Like every other NRI, especially I was watching very closely Rupee (Rs) over US ($) value. It seems in just last year or so, US dollar has come down 7 to 8 over the Rupees. As an Indian, I am happy to see that Rupee is gaining strength but on the other side as an NRI I was bit concerned.

Why Dollar weakening?
In general the weaking effect of Dollar can be contributed by various factors like government, market forces of supply and demand for a particular country's currency, interest rates, inflation, and consumers' expectations about what will happen in the future. At present financial experts seems to point out the feat factor on lot of economical aspects like Housing market crash, consumer slow down, oil price increase being the culprits. They predict that the collapsing dollar will dramatically accelerate U.S. inflation and will pressure upward U.S. long-term interest rates.

I am sure many of you might have seen a popular forward email about India becoming a super economic power with a reverse trend happening like,

• Americans waiting in big lines at the Indian Embassy for work visas
• Value of Rupee goes up lik 1 Rupee = 45 dollar
• Americans take telephone interviews for Indian Jobs

We already seen most of it happening right now except the dollar value reversal. Looks like the days are not too far for that one to be true.
In yesterday's news, Financial minister P.Chidambaram commented that "US dollar weaking is really good for India as it benefits India in lot of ways while our trader and exporters are struggling with it. Buying price of oil is little cheaper and also it really slows down our inflation rate".

Is this a Good news for Indians or Bad one for NRI's? I somehow have a mixed feeling on it. May be its a good news as we see Rupee is gaining strength over Dollar. But in lot of ways it really hurts the Indian Export industry and NRI's very importantly.

How does it affect really?

Because of the Dollar value weakening, the buying power of the dollar has gone down and you end up buying less compared to a year back. So exporters who get paid by dollars are seeing crunch in their profit margins. This really makes big impact when you are competiting with other global countries.

On the other instance, NRI's investing back at home will have major set back. For example, past year if you can buy 4.5 lakhs worth of property in just $10000 now it needs $11500, an increase the dollar spend. Similary if an NRI is sending money back home an average $1000 yielded 43,000 rupees after commission but not only yield 39,000 rupees. On average 8% decrease in the yield. I knew lot of NRI's who wanted to take advantage of the high interest rate in India, so converted their money and saved in Indian Banks which also helped India forex. Now with current dollar value reduction, NRI's are losing lot of money on conversion day by day which surely not encouraging the savings idea in India.

Overall, Dollar weakening is really good think for India on a broader outlook but it does truely affects many Indian exporters and NRI's in particular to a large extent. There is a lot of hope that its just a short term trend and should revert back pretty soon as its all part of a cycle.

38 steps to becoming a trader

1. We accumulate information - buying books, going to seminars and researching.

2. We begin to trade with our 'new' knowledge.

3. We consistently 'donate' and then realise we may need more knowledge or information.

4. We accumulate more information.

5. We switch the commodities we are currently following.

6. We go back into the market and trade with our 'updated' knowledge.

7. We get 'beat up' again and begin to lose some of our confidence. Fear starts setting in.

8. We start to listen to 'outside news' and to other traders.

9. We go back into the market and continue to 'donate'.

10. We switch commodities again.

11. We search for more information.

12. We go back into the market and start to see a little progress.

13. We get 'over-confident' and the market humbles us.

14. We start to understand that trading successfully is going to take more time and more knowledge than we anticipated.

MOST PEOPLE WILL GIVE UP AT THIS POINT, AS THEY REALISE WORK IS INVOLVED.
15. We get serious and start concentrating on learning a 'real' methodology.

16. We trade our methodology with some success, but realise that something is missing.

17. We begin to understand the need for having rules to apply our methodology.

18. We take a sabbatical from trading to develop and research our trading rules.

19. We start trading again, this time with rules and find some success, but over all we still hesitate when it comes time to execute.

20. We add, subtract and modify rules as we see a need to be more proficient with our rules.

21. We feel we are very close to crossing that threshold of successful trading.

22. We start to take responsibility for our trading results as we understand that our success is in us, not the methodology.

23. We continue to trade and become more proficient with our methodology and our rules.

24. As we trade we still have a tendency to violate our rules and our results are still erratic.

25. We know we are close.

26. We go back and research our rules.

27. We build the confidence in our rules and go back into the market and trade.

28. Our trading results are getting better, but we are still hesitating in executing our rules.

29. We now see the importance of following our rules as we see the results of our trades when we don't follow the rules.

30. We begin to see that our lack of success is within us (a lack of discipline in following the rules because of some kind of fear) and we begin to work on knowing ourselves better.

31. We continue to trade and the market teaches us more and more about ourselves.

32. We master our methodology and our trading rules.

33. We begin to consistently make money.

34. We get a little over-confident and the market humbles us.

35. We continue to learn our lessons.

36. We stop thinking and allow our rules to trade for us (trading becomes boring, but successful) and our trading account continues to grow as we increase our contract size.

37. We are making more money than we ever dreamed possible.

38. We go on with our lives and accomplish many of the goals we had always dreamed of.

Most traders will identify with this list and should be able to place themselves within these steps.

Keep in mind that very few people progress through these steps in an orderly fashion. Developing your trading skills is an iterative process.

For example, you may reach Step 13., find that although you were making money, your basic premise for trading was flawed (you might have been benefiting from the bull market, rather than your own trading prowess and then have been rudely awakened when the market entered a bear phase) and you may drop back to Step 4 and start 'climbing' the steps again.

Having the proper mindset, attitude and psychological makeup becomes increasingly important as you progress through the steps.

The focus of the earlier steps is on external issues, i.e. developing proficiency in the mechanics of trading while the focus of the latter steps (particularly from Step 30, on) is on internal issues, i.e. improving ourselves mentally and psychologically, maturing as trader.

Dollar Vs Rupee - The Currency Fight

Like past few weeks, whenever I happen to see the exchange rate comparison in the evening news, I see the US dollar value dropping day by day instead of going up which was the case in the past. Its surely grabing lot of attention these days among the economist and traders all over the world.

Just in few months, dollar value has gone down around 35% pairing with most famous currencies like EURO, YEN, JPN and SWISS. Like every other NRI, especially I was watching very closely Rupee (Rs) over US ($) value. It seems in just last year or so, US dollar has come down 7 to 8 over the Rupees. As an Indian, I am happy to see that Rupee is gaining strength but on the other side as an NRI I was bit concerned.

Why Dollar weakening?
In general the weaking effect of Dollar can be contributed by various factors like government, market forces of supply and demand for a particular country's currency, interest rates, inflation, and consumers' expectations about what will happen in the future. At present financial experts seems to point out the feat factor on lot of economical aspects like Housing market crash, consumer slow down, oil price increase being the culprits. They predict that the collapsing dollar will dramatically accelerate U.S. inflation and will pressure upward U.S. long-term interest rates.

I am sure many of you might have seen a popular forward email about India becoming a super economic power with a reverse trend happening like,

• Americans waiting in big lines at the Indian Embassy for work visas
• Value of Rupee goes up lik 1 Rupee = 45 dollar
• Americans take telephone interviews for Indian Jobs

We already seen most of it happening right now except the dollar value reversal. Looks like the days are not too far for that one to be true.
In yesterday's news, Financial minister P.Chidambaram commented that "US dollar weaking is really good for India as it benefits India in lot of ways while our trader and exporters are struggling with it. Buying price of oil is little cheaper and also it really slows down our inflation rate".

Is this a Good news for Indians or Bad one for NRI's? I somehow have a mixed feeling on it. May be its a good news as we see Rupee is gaining strength over Dollar. But in lot of ways it really hurts the Indian Export industry and NRI's very importantly.

How does it affect really?

Because of the Dollar value weakening, the buying power of the dollar has gone down and you end up buying less compared to a year back. So exporters who get paid by dollars are seeing crunch in their profit margins. This really makes big impact when you are competiting with other global countries.

On the other instance, NRI's investing back at home will have major set back. For example, past year if you can buy 4.5 lakhs worth of property in just $10000 now it needs $11500, an increase the dollar spend. Similary if an NRI is sending money back home an average $1000 yielded 43,000 rupees after commission but not only yield 39,000 rupees. On average 8% decrease in the yield. I knew lot of NRI's who wanted to take advantage of the high interest rate in India, so converted their money and saved in Indian Banks which also helped India forex. Now with current dollar value reduction, NRI's are losing lot of money on conversion day by day which surely not encouraging the savings idea in India.

Overall, Dollar weakening is really good think for India on a broader outlook but it does truely affects many Indian exporters and NRI's in particular to a large extent. There is a lot of hope that its just a short term trend and should revert back pretty soon as its all part of a cycle.

Golden Rules of Trading

- Plan your trades. Trade your plan.
- Keep records of your trading results.
- Keep a positive attitude, no matter how much you lose.
- Don't take the market home.
- Forget your College degree and trust your instincts.
- Successful traders buy into bad news and sell into good news.
- Successful traders are not afraid to buy high and sell low.
- Continually strive for patience, perseverance, determination, and rational action.
- Limit your losses - use stops!
- Never cancel a stop loss order after you have placed it!
- Place the stop at the time you make your trade.
- Never get into the market because you are anxious because of waiting.
- Avoid getting in or out of the market too often.
- The most difficult task in speculation is not prediction but self-control. Successful trading is difficult and frustrating. You are the most important element in the equation for success.
- Always discipline yourself by following a pre-determined set of rules.
- Remember that a bear market will give back in one month what a bull market has taken three months to build.
- Don't ever allow a big winning trade to turn into a loser. Stop yourself out if the market moves against you 20% from your peak profit point.
- Expect and accept losses gracefully. Those who brood over losses always miss the next opportunity, which more than likely will be profitable.

- Split your profits right down the middle and never risk more than 50% of them again in the market.
- The key to successful trading is knowing yourself and your stress point.
- The difference between winners and losers isn't so much native ability as it is discipline exercised in avoiding mistakes.
- Speech may be silver but silence is golden. Traders with the golden touch do not talk about their success.
- Dream big dreams and think tall. Very few people set goals too high.
A man becomes what he thinks about all day long.
- Accept failure as a step towards victory.
- Have you taken a loss? Forget it quickly. Have you taken a profit? Forget it even quicker!
- You don't invest ...You will lose.
- You don't manage risks ...You will lose.
- You follow tips ...You will lose.
- You don't investigate before you invest ...You will lose.
- You panic ...You will lose.
- You want to speculate ...You will lose.
- You don't understand your finances ...You will lose.
- You don't use cost averaging ...You will lose.
- You want to play ...You will lose.
- You are greedy ...You will lose.
- You place all your eggs in the same basket ...You will lose.
- You don't know when not to invest ...You will lose.
- You don't know when not to exit ...You will lose.
- You can't afford to lose ...You can't afford to make a profit.

Golden Rules of Trading

- Plan your trades. Trade your plan.
- Keep records of your trading results.
- Keep a positive attitude, no matter how much you lose.
- Don't take the market home.
- Forget your College degree and trust your instincts.
- Successful traders buy into bad news and sell into good news.
- Successful traders are not afraid to buy high and sell low.
- Continually strive for patience, perseverance, determination, and rational action.
- Limit your losses - use stops!
- Never cancel a stop loss order after you have placed it!
- Place the stop at the time you make your trade.
- Never get into the market because you are anxious because of waiting.
- Avoid getting in or out of the market too often.
- The most difficult task in speculation is not prediction but self-control. Successful trading is difficult and frustrating. You are the most important element in the equation for success.
- Always discipline yourself by following a pre-determined set of rules.
- Remember that a bear market will give back in one month what a bull market has taken three months to build.
- Don't ever allow a big winning trade to turn into a loser. Stop yourself out if the market moves against you 20% from your peak profit point.
- Expect and accept losses gracefully. Those who brood over losses always miss the next opportunity, which more than likely will be profitable.

- Split your profits right down the middle and never risk more than 50% of them again in the market.
- The key to successful trading is knowing yourself and your stress point.
- The difference between winners and losers isn't so much native ability as it is discipline exercised in avoiding mistakes.
- Speech may be silver but silence is golden. Traders with the golden touch do not talk about their success.
- Dream big dreams and think tall. Very few people set goals too high.
A man becomes what he thinks about all day long.
- Accept failure as a step towards victory.
- Have you taken a loss? Forget it quickly. Have you taken a profit? Forget it even quicker!
- You don't invest ...You will lose.
- You don't manage risks ...You will lose.
- You follow tips ...You will lose.
- You don't investigate before you invest ...You will lose.
- You panic ...You will lose.
- You want to speculate ...You will lose.
- You don't understand your finances ...You will lose.
- You don't use cost averaging ...You will lose.
- You want to play ...You will lose.
- You are greedy ...You will lose.
- You place all your eggs in the same basket ...You will lose.
- You don't know when not to invest ...You will lose.
- You don't know when not to exit ...You will lose.
- You can't afford to lose ...You can't afford to make a profit.

Income tax :: important tips

1.80C
Qualifying products: NSC, notified bank deposits and post office time deposits, EPF and PPF, ELSS, life insurance plans, deferred pension plans

Mandatory requirements: Payment has to be made before 31 March 2008
Who can avail the deduction: Individuals and HUF (both resident and non-resident)
How much: Cannot exceed Rs 1 lakh.

2. 80CCC
Qualifying products: Pension plans of life insurers
Mandatory requirements: Payment has to be made before 31 March 2008
Who can avail the deduction: Individuals
How much: Within the overall limit of Section 80C (up to Rs 1 lakh)

3. 80D
Qualifying products: Medical insurance policies taken for self, spouse, dependant parents or children, or any member of HUF
Mandatory requirements: Premium should be paid through a cheque out of income chargeable to tax
Who can avail the deduction: Individuals, HUF
How much: Up to Rs 15,000; senior citizens can claim up to Rs 20,000

4. 80DD
Qualifying products: Expenses on the medical treatment of a dependent who is a person with a disability
Mandatory requirements: Certification by a medical authority
Who can avail the deduction: Resident individual or HUF
How much: Up to Rs 50,000, or up to Rs 75,000 if the dependant is a person with severe disability

5. 80DDB
Qualifying products: Expenses on the medical treatment of a specified disease (cancer, AIDS, neurological diseases, chronic renal failure and more)
Mandatory requirements: Certificate in Form No. 10-I to be submitted along with the income tax return form. Deduction is available if the amount is actually paid for treatment
Who can avail the deduction: Resident individuals or HUF
How much: Rs 40,000 (if the person treated upon is less than 65 years of age), or Rs 60,000

6. 80E
Qualifying products: Payment of interest on loan taken for higher studies
Mandatory requirements: Deduction is available in the year in which repayment starts and only for eight immediately succeeding assessment years
Who can avail the deduction: Individuals
How much: Deduction available on the total interest portion of education loan, the principal repayment gets no tax advantage

7. 80G
Qualifying products: Donations to certain funds and charitable institutions
Mandatory requirements: Not applicable
Who can avail the deduction: Resident individuals or HUF
How much: 50 or 100 per cent deduction on the entire donated amount, or 50 or 100 per cent deduction subject to 10 per cent of gross total income

8. 80GG
Qualifying products: Rent paid for residential purpose
Mandatory requirements: Should not be getting house rent allowance. Actual rent paid is in excess of 10% of the total income
Who can avail the deduction: Self-employed or salaried
How much: Excess of actual rent paid over 10 per cent of GTI, or 25 per cent of GTI, or Rs 2,000 per month, whichever is the lowest

9. 80U
Qualifying products: Expenses incurred on self, if disabled
Mandatory requirements: Certification by a medical authority to be furnished along with the income tax return form

Who can avail the deduction: Resident individuals
How much: Rs 50,000 for a person with disability, Rs 75,000 for a person with severe disability (disability of over 80 per cent)

Income tax :: important tips

1.80C
Qualifying products: NSC, notified bank deposits and post office time deposits, EPF and PPF, ELSS, life insurance plans, deferred pension plans

Mandatory requirements: Payment has to be made before 31 March 2008
Who can avail the deduction: Individuals and HUF (both resident and non-resident)
How much: Cannot exceed Rs 1 lakh.

2. 80CCC
Qualifying products: Pension plans of life insurers
Mandatory requirements: Payment has to be made before 31 March 2008
Who can avail the deduction: Individuals
How much: Within the overall limit of Section 80C (up to Rs 1 lakh)

3. 80D
Qualifying products: Medical insurance policies taken for self, spouse, dependant parents or children, or any member of HUF
Mandatory requirements: Premium should be paid through a cheque out of income chargeable to tax
Who can avail the deduction: Individuals, HUF
How much: Up to Rs 15,000; senior citizens can claim up to Rs 20,000

4. 80DD
Qualifying products: Expenses on the medical treatment of a dependent who is a person with a disability
Mandatory requirements: Certification by a medical authority
Who can avail the deduction: Resident individual or HUF
How much: Up to Rs 50,000, or up to Rs 75,000 if the dependant is a person with severe disability

5. 80DDB
Qualifying products: Expenses on the medical treatment of a specified disease (cancer, AIDS, neurological diseases, chronic renal failure and more)
Mandatory requirements: Certificate in Form No. 10-I to be submitted along with the income tax return form. Deduction is available if the amount is actually paid for treatment
Who can avail the deduction: Resident individuals or HUF
How much: Rs 40,000 (if the person treated upon is less than 65 years of age), or Rs 60,000

6. 80E
Qualifying products: Payment of interest on loan taken for higher studies
Mandatory requirements: Deduction is available in the year in which repayment starts and only for eight immediately succeeding assessment years
Who can avail the deduction: Individuals
How much: Deduction available on the total interest portion of education loan, the principal repayment gets no tax advantage

7. 80G
Qualifying products: Donations to certain funds and charitable institutions
Mandatory requirements: Not applicable
Who can avail the deduction: Resident individuals or HUF
How much: 50 or 100 per cent deduction on the entire donated amount, or 50 or 100 per cent deduction subject to 10 per cent of gross total income

8. 80GG
Qualifying products: Rent paid for residential purpose
Mandatory requirements: Should not be getting house rent allowance. Actual rent paid is in excess of 10% of the total income
Who can avail the deduction: Self-employed or salaried
How much: Excess of actual rent paid over 10 per cent of GTI, or 25 per cent of GTI, or Rs 2,000 per month, whichever is the lowest

9. 80U
Qualifying products: Expenses incurred on self, if disabled
Mandatory requirements: Certification by a medical authority to be furnished along with the income tax return form

Who can avail the deduction: Resident individuals
How much: Rs 50,000 for a person with disability, Rs 75,000 for a person with severe disability (disability of over 80 per cent)

Global Market Worry - Sensex Might Crash on Monday 3rd March

Sensex is due for another big crash coming week. We all know that it did crash on Friday after Budget as there was nothing from the Budget that would benefit much for the India Inc. Except FMCG and Automobile Sector , there was nothing that can be talked about. Another think waiver of around 60000 crores might burn some Public Sector Banks Balance sheet have to hear more verdict on this. Then the increase of Short term Gain tax from 10 to 15 percent might also have some negative effect but on the long run it would be positive because they might not sell frequently and hold it, which will in turn make the market better and not too volatile.

Anyway to close this post market will crash on Monday not just because of these domestic reasons but mainly because Dow jones crashed by more than 300 points which will make Asian market to start lower and that will also reflect on out Indian market.

Global Market Worry - Sensex Might Crash on Monday 3rd March

Sensex is due for another big crash coming week. We all know that it did crash on Friday after Budget as there was nothing from the Budget that would benefit much for the India Inc. Except FMCG and Automobile Sector , there was nothing that can be talked about. Another think waiver of around 60000 crores might burn some Public Sector Banks Balance sheet have to hear more verdict on this. Then the increase of Short term Gain tax from 10 to 15 percent might also have some negative effect but on the long run it would be positive because they might not sell frequently and hold it, which will in turn make the market better and not too volatile.

Anyway to close this post market will crash on Monday not just because of these domestic reasons but mainly because Dow jones crashed by more than 300 points which will make Asian market to start lower and that will also reflect on out Indian market.

300 points crash for the US Market

On the Last day of Feb Month Us market closed down or may be say it as Crashed down more than 300 points .The Dow dropped 315 points to 12,266. The S&P 500 lost 37 points to 1,330. The Nasdaq fell 60 points to 2,271, a level associated with a bear market. Crude oil fell after hitting a $103.05 record.So this is like 4 month the market closed down .This time it was just not the economic data that moved the market down it has other factors also.
Market Mover

>Reports that hedge funds are forced to sell municipal bonds
>January personal income and spending slightly better than expected; the core
>PCE inflation reading was in line with estimates.
>Chicago PMI survey comes up short of expectations; lowest level since 2001
>AIG posts record loss due to massive write-down
>Dell gives cautious comments
>CNBC reports Ambac bailout hits a snag
>After Market news Berkshire Reported a 18 percent down in profit.

300 points crash for the US Market

On the Last day of Feb Month Us market closed down or may be say it as Crashed down more than 300 points .The Dow dropped 315 points to 12,266. The S&P 500 lost 37 points to 1,330. The Nasdaq fell 60 points to 2,271, a level associated with a bear market. Crude oil fell after hitting a $103.05 record.So this is like 4 month the market closed down .This time it was just not the economic data that moved the market down it has other factors also.
Market Mover

>Reports that hedge funds are forced to sell municipal bonds
>January personal income and spending slightly better than expected; the core
>PCE inflation reading was in line with estimates.
>Chicago PMI survey comes up short of expectations; lowest level since 2001
>AIG posts record loss due to massive write-down
>Dell gives cautious comments
>CNBC reports Ambac bailout hits a snag
>After Market news Berkshire Reported a 18 percent down in profit.