How to Trade Successfully with a Small Trading Account

Invest Without a lot of MoneyStarting out with a small trading account can make things more difficult for new forex traders. While it is certainly possible to achieve success, it can make it harder for you to get into the appropriate mindset to become a successful trader.

There are common pitfalls you will want to avoid, by ensuring you focus on the right goals and be prepared to put in some hard work and discipline. While it may not be easy, there are ways in which you can grow a small account, while losing as little money along the way as possible. Read on to find out how you can trade successfully with a small trading account.

Be Content With Small Returns

Making consistent progress on your trading account is possible whether you start off with a little account or a large one. Some people start off their careers with over $100,000 in their account, only to lose all that money in a short space of time.

Others start with just $2,000 and consistently grow that amount over time until they have a sizeable account. It’s important that you understand early on that you don’t need to make huge returns to be considered a successful trader. If you can manage to make $200 a month consistently, then you are already successful.

While this amount may not be enough for you to live off of, it’s more about understanding how you can do well over the long term by being consistent with your trading and wins. Focus on increasing your success rate, rather than getting a big win. When it comes to a small account, it is even more important to be patient and prepared to grow slowly.

Focus on Becoming a Good Trader

When you start off with a small account, you can easily end up placing your focus on making as much money as you can as quickly as possible. While this is understandable, you need to concentrate on developing a strategy and mindset that will help you to make money consistently in the long run.

Turn your focus on trading the markets, rather than on bringing in the cash. Take your time to develop a winning strategy and learn about the forex market and market trends so that you can reduce your risk when trading and earn money on a more consistent basis. Try and avoid that feeling of urgency and need to make money as quickly as possible, as this can lead to over-trading and you can end up losing more money than you can afford.

You don’t have to worry about managing this with a small trading account. In fact, even if you have more capital at your disposal, you should still prove yourself first using a small amount. You need to be good at trading with a small amount before you can handle trading with a larger account. Focus on becoming a good trader first and foremost.

Keep a Trading Journal

The best way to grow a small account is to stay organized and become an expert record keeper. When you don’t have a significant amount of capital you can risk losing, then you need to be even more precise and careful with your trading. The simplest way to do this is to keep a forex trading journal.

This will help you to study your performance over time, so you can focus on building a consistent track record. Your trading performance is not going to be measured on the success of one or two trades. It will be based on a long series of trades, so it’s important that you keep a record of everything so that you can properly track your progress.

This is also important to help you remove any emotion you may be quick to attach to an individual trade. Just because you managed a big win, this time, doesn’t mean it’s always going to happen this way. Be disciplined, consistent, and make it a part of your trading routine. If you can consistently demonstrate that you can trade, you may even be able to use this proof to obtain additional funding for your trading account.

Conclusion

If you are starting off with a small forex trading account, then you need to ensure you are in the right mindset to grow your account and achieve long-term success. Focus on understanding the market, building the right strategies, getting consistent wins no matter how big the amount, and staying organized and disciplined. Before long, you will be able to grow that account into an excellent source of income.

How to Ensure That You Are Being Treated Fairly by Debt Collectors

Good Debt vs. Bad DebtIt’s an unfortunate fact that the debt collection industry has a very negative reputation with most consumers. Stories about aggressive debt collectors are plentiful. Some of these stories talk about collectors who text and call debtors at all hours of the day and night. Others talk of collectors who hound the debtor’s family members, friends, and employers until they get what they want. There are debt collectors who are trying to fight this negative reputation and create a superior experience for both debtors and creditors. As the industry progresses to incorporate higher levels of debtor respect, you can get more informed about debt collection to serve as a self-advocate.

What Debt Collectors Can and Cannot Do

The bad seeds in the debt collection industry tend to have one major characteristic in common: they are willing to take advantage of their target’s perceived ignorance to collect a debt. The average person isn’t necessarily familiar with the rules and regulations that surround the debt collection industry. As a result, some debt collectors think they can cross lines and break laws to collect debts—with the hope and expectation that debtors won’t report them for it. 

As such, if you find yourself up against a debt collector who you believe has crossed the line, remember that you do have rights, even if you owe a debt. It’s a good idea to familiarize yourself with those rights so you can demand proper treatment from any debt collectors who come your way.

The guidelines and regulations that debt collectors have to follow will vary a bit depending on your country. In the United States, the Federal Trade Commission is responsible for enforcing the Fair Debt Collection Practices Act. In Australia, the Australian Competition & Consumer Commission enforces the country’s debt collection guidelines. These guidelines have a lot in common but they are not completely identical. As such, it’s a good idea to read the debt guidelines that are enforced in your country so you know what your rights are.

Typically, debt collectors are barred from a variety of extreme practices, including but not limited to:

  • Contacting consumers at unreasonable hours (e.g. in the middle of the night)
  • Using physical force or threats of violence to collect debt
  • Communicating with debtors through use of profane language
  • Harassing consumers through excessively repetitious contact
  • Disclosing information about your affairs to third parties (including employers, family members, and friends)
  • Telling consumers that they have committed or are committing a crime by not paying a debt
  • Calling a debtor at work if the debtor has asked them to stop
  • Threatening consumers with lawsuits if they do not intend to sue (e.g. as an intimidation tactic)
  • Trespassing on the private property of the debtor
  • Withholding information about the debt in question (including the name of the creditor and the amount owed)
  • Failing to inform a debtor about what action they can take if they believe they are being pursued for a debt they do not owe
  • Collecting a debt without validating that the consumer actually owes money

A debt collector can contact you, and can use a variety of different channels to do so—including mail, phone, fax, and more. A debt collector can also take legal action against you if you owe a debt and refuse to pay. However, a debt collector should carry out these actions in a respectful and reserved fashion in accordance with all of the guidelines laid out above. If you believe that a debt collector is mistreating you or has violated the law, contact a personal attorney or local law enforcement for assistance.

Why Online Loans Should Be Your Go-To

laptop-762548_640Funding your small business is a challenge every entrepreneur faces at one point. Because this issue is so common, lots of potential funding solutions are available:

  • Traditional bank loans
  • Borrowing from friends and family
  • Angel investors and other venture capitalists
  • Relying on existing cash flow
  • Credit cards
  • Dipping into personal savings or home equity
  • Online loans for businesses

Every business is different. There’s no one-size-fits-all solution to this problem, but, that said, online loans may be the closest thing. Online loans have a variety of advantages over other funding options, most of which speak directly to some of the most frustrating challenges faced by small business owners.

What is Online Lending?

Through the mid-2000s, lending on a business scale was in the domain of banks (with a small assist from the Small Business Administration). They were the only player and they set strict rules that were designed to limit their risk and maximize their profits. Applying for a small business loan was often complex, opaque and nerve-wracking. Receiving a small business loan usually included expensive initiation fees and processing charges in addition to the actual APR interest advertised or agreed upon.

As the economy began to fall into recession, banks began to focus their efforts on larger loans because the expense of administering a small versus a large loan is close to identical. That left small businesses without much in the way of funding resources.

Online loans rose thanks to a combination of improved web technologies, deregulation of financial services, and the growing demand among small businesses for some kind of funding alternative. At their core, they work like bank loans: an entity with money lets you use some of it and charges you for the privilege. But, from that core, they differ significantly from traditional options in ways that can really matter to a small business’ success.

How are Online Loans Different?

An online lender approves loans, provides funds, and administers the account in new ways. A summary of the features that differ from traditional lenders includes the following:

  • Online lenders do business via a website, as opposed to physical branches that are spread throughout the country. This saves on overhead, allowing the lender to charge less and risk more as compared to traditional banks and credit unions.
  • Online lenders analyze applicants and approve loans based on a number of metrics that are accessed instantaneously via the internet. These include traditional FICO scores that banks use, but also include income, industry trends and social proof. This new approach to approval makes it easier for qualified businesses to be approved and it turns the approval process from a weeks-long experience to a nearly instantaneous decision.
  • Online lenders deliver funds electronically, directly to the bank account from which a business will later pay off the loan. Without the intermediary steps that are often part of traditional lending, payment can hit your account within 24 business hours of approval.
  • Online lenders arrange for payment via automatic draft from the funded account according to a schedule agreed upon between the lender and the borrower. This minimizes their risk, allows for lower rates, and makes the payments hassle-free.

What is the Primary Benefit of Online Loans?

The main benefit of using an online lender is the approval process. Many (if not most) small businesses have issues getting approved for credit because they don’t qualify under traditional policies. Banks and credit unions either outright reject applications, or charge extra fees and interest to “justify” the risk of offering funding to these hard-to-approve applications.

Online business loans come from lenders who specialize in this exact type of situation. This means more funds available for your business at a lower rate than you would find otherwise.

The Bottom Line

Online lending may not right for every small business, but they are certainly an option worth investigating. Between the ease of application, wide range of providers, flexible structures and other benefits, online lending can come out as the best option in determining how to fund your business.

Does Debt Settlement Hurt My Credit Score?

sad-505857_640Facing an overdue debt can be a major frustration, and down right scary. Late payments and unmanageable balances are building up, possibly wreaking havoc on your life in general. If this sounds like you, a debt settlement arrangement might seem like a good idea, but many people are hesitant that it hurts their credit score. Rescue One Financial has a few points to make if you’re considering this option to regaining your financial freedom.

According to data from the Federal Reserve Bank, American households owe almost a trillion in credit card debt as of this year. Many households that make up this mountain of debt fall behind in making their payments and need some help to get out of debt. Settlement is typically an option for unsecured debts, like credit cards and medical bills, that aren’t backed by collateral. Debt settlement can be an excellent solution to the problem, but it depends on what you think is best for you.

End to Collections

Wouldn’t it be nice to put an end to those pesky phone calls?

With a completed settlement, your creditor is satisfied and has no need to keep pursuing you. As such, settlements stop the harassing phone calls, threats of lawsuits, ominous letters and stronger tactics like actual lawsuits or wage garnishments. Who needs that stress?

Significant Savings

Settling your debt can also save you money in the long run. It’s not unusual for creditors to take just a fraction of your balance to consider your account closed. When you take into account the fact that you’re frequently also erasing interest charges and late fees, this can add up to a large amount of money.

Damaged Credit 

One of the drawbacks people fear with debt settlement your is that it will damage your credit. Most creditors will put a notation on your credit report that the account was closed and that it was settled in full instead of paid in full. Any time you pay less than you borrowed (including interest) you damage your credit history and credit scores.

Making a payment or settlement doesn’t reset the clock and cause negative information to disappear. If your credit scores are already in the dump because you missed payments or the account was turned over to a collection agency, taking a settlement probably will have little or no additional negative effect on your credit scores. If your objective is simply to repay as little debt as possible, settling is the best route. Not to mention, the damage that a settlement will do to your credit pales next to what a bankruptcy would do.

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How to Trade Successfully with a Small Trading Account

Invest Without a lot of MoneyStarting out with a small trading account can make things more difficult for new forex traders. While it is certainly possible to achieve success, it can make it harder for you to get into the appropriate mindset to become a successful trader.

There are common pitfalls you will want to avoid, by ensuring you focus on the right goals and be prepared to put in some hard work and discipline. While it may not be easy, there are ways in which you can grow a small account, while losing as little money along the way as possible. Read on to find out how you can trade successfully with a small trading account.

Be Content With Small Returns

Making consistent progress on your trading account is possible whether you start off with a little account or a large one. Some people start off their careers with over $100,000 in their account, only to lose all that money in a short space of time.

Others start with just $2,000 and consistently grow that amount over time until they have a sizeable account. It’s important that you understand early on that you don’t need to make huge returns to be considered a successful trader. If you can manage to make $200 a month consistently, then you are already successful.

While this amount may not be enough for you to live off of, it’s more about understanding how you can do well over the long term by being consistent with your trading and wins. Focus on increasing your success rate, rather than getting a big win. When it comes to a small account, it is even more important to be patient and prepared to grow slowly.

Focus on Becoming a Good Trader

When you start off with a small account, you can easily end up placing your focus on making as much money as you can as quickly as possible. While this is understandable, you need to concentrate on developing a strategy and mindset that will help you to make money consistently in the long run.

Turn your focus on trading the markets, rather than on bringing in the cash. Take your time to develop a winning strategy and learn about the forex market and market trends so that you can reduce your risk when trading and earn money on a more consistent basis. Try and avoid that feeling of urgency and need to make money as quickly as possible, as this can lead to over-trading and you can end up losing more money than you can afford.

You don’t have to worry about managing this with a small trading account. In fact, even if you have more capital at your disposal, you should still prove yourself first using a small amount. You need to be good at trading with a small amount before you can handle trading with a larger account. Focus on becoming a good trader first and foremost.

Keep a Trading Journal

The best way to grow a small account is to stay organized and become an expert record keeper. When you don’t have a significant amount of capital you can risk losing, then you need to be even more precise and careful with your trading. The simplest way to do this is to keep a forex trading journal.

This will help you to study your performance over time, so you can focus on building a consistent track record. Your trading performance is not going to be measured on the success of one or two trades. It will be based on a long series of trades, so it’s important that you keep a record of everything so that you can properly track your progress.

This is also important to help you remove any emotion you may be quick to attach to an individual trade. Just because you managed a big win, this time, doesn’t mean it’s always going to happen this way. Be disciplined, consistent, and make it a part of your trading routine. If you can consistently demonstrate that you can trade, you may even be able to use this proof to obtain additional funding for your trading account.

Conclusion

If you are starting off with a small forex trading account, then you need to ensure you are in the right mindset to grow your account and achieve long-term success. Focus on understanding the market, building the right strategies, getting consistent wins no matter how big the amount, and staying organized and disciplined. Before long, you will be able to grow that account into an excellent source of income.

How to Ensure That You Are Being Treated Fairly by Debt Collectors

Good Debt vs. Bad DebtIt’s an unfortunate fact that the debt collection industry has a very negative reputation with most consumers. Stories about aggressive debt collectors are plentiful. Some of these stories talk about collectors who text and call debtors at all hours of the day and night. Others talk of collectors who hound the debtor’s family members, friends, and employers until they get what they want. There are debt collectors who are trying to fight this negative reputation and create a superior experience for both debtors and creditors. As the industry progresses to incorporate higher levels of debtor respect, you can get more informed about debt collection to serve as a self-advocate.

What Debt Collectors Can and Cannot Do

The bad seeds in the debt collection industry tend to have one major characteristic in common: they are willing to take advantage of their target’s perceived ignorance to collect a debt. The average person isn’t necessarily familiar with the rules and regulations that surround the debt collection industry. As a result, some debt collectors think they can cross lines and break laws to collect debts—with the hope and expectation that debtors won’t report them for it. 

As such, if you find yourself up against a debt collector who you believe has crossed the line, remember that you do have rights, even if you owe a debt. It’s a good idea to familiarize yourself with those rights so you can demand proper treatment from any debt collectors who come your way.

The guidelines and regulations that debt collectors have to follow will vary a bit depending on your country. In the United States, the Federal Trade Commission is responsible for enforcing the Fair Debt Collection Practices Act. In Australia, the Australian Competition & Consumer Commission enforces the country’s debt collection guidelines. These guidelines have a lot in common but they are not completely identical. As such, it’s a good idea to read the debt guidelines that are enforced in your country so you know what your rights are.

Typically, debt collectors are barred from a variety of extreme practices, including but not limited to:

  • Contacting consumers at unreasonable hours (e.g. in the middle of the night)
  • Using physical force or threats of violence to collect debt
  • Communicating with debtors through use of profane language
  • Harassing consumers through excessively repetitious contact
  • Disclosing information about your affairs to third parties (including employers, family members, and friends)
  • Telling consumers that they have committed or are committing a crime by not paying a debt
  • Calling a debtor at work if the debtor has asked them to stop
  • Threatening consumers with lawsuits if they do not intend to sue (e.g. as an intimidation tactic)
  • Trespassing on the private property of the debtor
  • Withholding information about the debt in question (including the name of the creditor and the amount owed)
  • Failing to inform a debtor about what action they can take if they believe they are being pursued for a debt they do not owe
  • Collecting a debt without validating that the consumer actually owes money

A debt collector can contact you, and can use a variety of different channels to do so—including mail, phone, fax, and more. A debt collector can also take legal action against you if you owe a debt and refuse to pay. However, a debt collector should carry out these actions in a respectful and reserved fashion in accordance with all of the guidelines laid out above. If you believe that a debt collector is mistreating you or has violated the law, contact a personal attorney or local law enforcement for assistance.

Why Online Loans Should Be Your Go-To

laptop-762548_640Funding your small business is a challenge every entrepreneur faces at one point. Because this issue is so common, lots of potential funding solutions are available:

  • Traditional bank loans
  • Borrowing from friends and family
  • Angel investors and other venture capitalists
  • Relying on existing cash flow
  • Credit cards
  • Dipping into personal savings or home equity
  • Online loans for businesses

Every business is different. There’s no one-size-fits-all solution to this problem, but, that said, online loans may be the closest thing. Online loans have a variety of advantages over other funding options, most of which speak directly to some of the most frustrating challenges faced by small business owners.

What is Online Lending?

Through the mid-2000s, lending on a business scale was in the domain of banks (with a small assist from the Small Business Administration). They were the only player and they set strict rules that were designed to limit their risk and maximize their profits. Applying for a small business loan was often complex, opaque and nerve-wracking. Receiving a small business loan usually included expensive initiation fees and processing charges in addition to the actual APR interest advertised or agreed upon.

As the economy began to fall into recession, banks began to focus their efforts on larger loans because the expense of administering a small versus a large loan is close to identical. That left small businesses without much in the way of funding resources.

Online loans rose thanks to a combination of improved web technologies, deregulation of financial services, and the growing demand among small businesses for some kind of funding alternative. At their core, they work like bank loans: an entity with money lets you use some of it and charges you for the privilege. But, from that core, they differ significantly from traditional options in ways that can really matter to a small business’ success.

How are Online Loans Different?

An online lender approves loans, provides funds, and administers the account in new ways. A summary of the features that differ from traditional lenders includes the following:

  • Online lenders do business via a website, as opposed to physical branches that are spread throughout the country. This saves on overhead, allowing the lender to charge less and risk more as compared to traditional banks and credit unions.
  • Online lenders analyze applicants and approve loans based on a number of metrics that are accessed instantaneously via the internet. These include traditional FICO scores that banks use, but also include income, industry trends and social proof. This new approach to approval makes it easier for qualified businesses to be approved and it turns the approval process from a weeks-long experience to a nearly instantaneous decision.
  • Online lenders deliver funds electronically, directly to the bank account from which a business will later pay off the loan. Without the intermediary steps that are often part of traditional lending, payment can hit your account within 24 business hours of approval.
  • Online lenders arrange for payment via automatic draft from the funded account according to a schedule agreed upon between the lender and the borrower. This minimizes their risk, allows for lower rates, and makes the payments hassle-free.

What is the Primary Benefit of Online Loans?

The main benefit of using an online lender is the approval process. Many (if not most) small businesses have issues getting approved for credit because they don’t qualify under traditional policies. Banks and credit unions either outright reject applications, or charge extra fees and interest to “justify” the risk of offering funding to these hard-to-approve applications.

Online business loans come from lenders who specialize in this exact type of situation. This means more funds available for your business at a lower rate than you would find otherwise.

The Bottom Line

Online lending may not right for every small business, but they are certainly an option worth investigating. Between the ease of application, wide range of providers, flexible structures and other benefits, online lending can come out as the best option in determining how to fund your business.

Does Debt Settlement Hurt My Credit Score?

sad-505857_640Facing an overdue debt can be a major frustration, and down right scary. Late payments and unmanageable balances are building up, possibly wreaking havoc on your life in general. If this sounds like you, a debt settlement arrangement might seem like a good idea, but many people are hesitant that it hurts their credit score. Rescue One Financial has a few points to make if you’re considering this option to regaining your financial freedom.

According to data from the Federal Reserve Bank, American households owe almost a trillion in credit card debt as of this year. Many households that make up this mountain of debt fall behind in making their payments and need some help to get out of debt. Settlement is typically an option for unsecured debts, like credit cards and medical bills, that aren’t backed by collateral. Debt settlement can be an excellent solution to the problem, but it depends on what you think is best for you.

End to Collections

Wouldn’t it be nice to put an end to those pesky phone calls?

With a completed settlement, your creditor is satisfied and has no need to keep pursuing you. As such, settlements stop the harassing phone calls, threats of lawsuits, ominous letters and stronger tactics like actual lawsuits or wage garnishments. Who needs that stress?

Significant Savings

Settling your debt can also save you money in the long run. It’s not unusual for creditors to take just a fraction of your balance to consider your account closed. When you take into account the fact that you’re frequently also erasing interest charges and late fees, this can add up to a large amount of money.

Damaged Credit 

One of the drawbacks people fear with debt settlement your is that it will damage your credit. Most creditors will put a notation on your credit report that the account was closed and that it was settled in full instead of paid in full. Any time you pay less than you borrowed (including interest) you damage your credit history and credit scores.

Making a payment or settlement doesn’t reset the clock and cause negative information to disappear. If your credit scores are already in the dump because you missed payments or the account was turned over to a collection agency, taking a settlement probably will have little or no additional negative effect on your credit scores. If your objective is simply to repay as little debt as possible, settling is the best route. Not to mention, the damage that a settlement will do to your credit pales next to what a bankruptcy would do.