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I really thanks to Dan Melson from Searchlight Crusade wrote an article called Rate BuyDowns. I have no idea what it is before reading Dan Melson’s article, but today, I roughly have some brief ideas what actually Rate BuyDowns is.

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What Is Rate BuyDowns?

A rate buydown is where for an upfront price, the lender agrees to give you a lowered interest rate for a time. 2/1/0 buydowns, where the rate is two percent lower the first year, one percent lower the second year, and then at the loan rate the third year.

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After reading this article, I found that Rate Buydowns is not really a good choice in long run. You may save some money at starting point but you will end up and pay more in long run. But I don’t know if I use this rate to buy a real estate property that I know I’m going to sell it within 1-2 years, will this rate buydowns become a good choice since I can save some money at the first 2 years.

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What do you think…….?

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If you want to read the full article of Dan Melson, you may click here. There you can read a few table that show you the effect of Rate BuyDowns and at the end you will know why Dan don’t recommend Rate BuyDowns.

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Source : Searchlight Crusade

Uncategorized What I Learn from Others

In real life, Day Trading isn’t as easy as you can imagine. Even though you learn everything from the books, that doesn’t guaranteed that you can make some profits from it. In real life, investing takes more than just knowledge.

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Below are some of the rules that you must follow and apply in day trading if you want to profit from it. All the rules below is an inspissations of trading experience from day trading experts.

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Learn before Action

The most common mistakes of newbie are jumping into the market without knowing what is happening around the market. They don’t want to spend their time to read and analysis the market before taking any action. Learning to invest in Day Trading is just like learning to dance, you must start from the basic and read the steps of how people dance, then only you dance accordingly until you familiar with the steps. However, day trading will cost you money. So you must be careful, learn before action, if not, you just end up with losing money.

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Make Decision in time

Doubt, I think is one of the big weaknesses in mind of everyone. It will stop you moving forward because you can’t make decision. In day trading, sometimes you need to make decision fast and in time, especially the time you are losing money. If you found that you invest wrongly and make you losing money, then you must close the position and stop the lost from keeping bigger. You must overcome the voice of “what if” from your mind. Just make your decision, no matter what happen, don’t regret and concentrate on the next trade.

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Be discipline until the end

In order to profit from day trading, you must learn and build your own trading strategy and system. Once you have this, be discipline and focus no matter what happen. People tend to lose money because they are not discipline enough and always change their plan. There are many variables and factors that can affect the results of your trading. So by having a trading system, you can control most the variable and factors and thus reduce the risk of investing. Of course, you need time to build this system.

Control your emotion

Emotion is the biggest enemy inside us and also is the most important factors that determine our trading results. Therefore, you must learn to control your emotion. The day trading market is always up and down and the price is always changing. If you loss control on your emotion, then you will suffer from the up and down of the market. Then you will make some wrong decision that makes you losing money. If you really cannot control you emotion, maybe you should concentrate on the long term investment since the fluctuation is not much. But if you concentrate on short term investment and open your position every day, then you must train up your emotion.

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Know your entry and exit level

Every trader must know when and how you should come out from the market. Regardless what system you are using, you must integrated an entry and exit plan into your trading system. However, if the market price hit the level, before you take any action to enter or exit the market, you must also analysis the market trend, news and support and resistance. Maybe setting an entry and exit level will help you cut down the losses however it may also increase the chances to loss. So you must learn how to set the entry and exit level that most suit your trading system.

Manage your money

Even an expert in day trading, sometimes he also makes some wrong decision and loss money. So they always control the risk there are taking and always protect their money(modal). They always invest 2%-3% of their money and always stick to this rule. Newbie believes that they can make some big money with just a few transaction. Maybe this is true for some body, but for most of the expert, this is not. They know they earn money from the market by gathering all the small positive transaction, so they just invest 2%-3% of their money. There 2 advantages using this system. First you can reduce the risk on your money(modal). Then you can always have a second chance to invest if you really make a bad decision.

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Trend is your friend

You must always remember that trend is your friend. If you go to the beach for swimming, you will feel that it is tire to swim against the current (trend), however if you swim according to the current, the current will push you and give you the power. Same with day trading, if you invest by following the market trend, you can make money very easy. However, if you invest on the other way round, then you will lose your money. The good news is there are a lot of tools in day trading that will let you find the trend of market.

Day Trading, Learn How to Invest

Being wealthy and financial free is more than plenty of money. But what I pay attention its benefit of time and freedom. Those rich people, from what I observe, have plenty of time and freedom to do what ever they want. Furthermore, they don't even worry about money and financial problems which are the main problems in most people life.

So what is their secret?

Actually their secret is simple. They just have multiple steady passive incomes that go to their account in a certain time. They diversify their income and make them come from different resources and the important is their income is steady. Building and owning the multiple steady passive incomes are the fundamental of being wealthy and financial free.

So how many incomes source you have right now?

If you want to have more income, you may get a part time job. However this is not the truth meaning of multiple income that I mentioned here. What I mean is the income that you build for yourself, it is belonging to you. A job is just a way to sell your time for money.

To be financial free and rich, you not only must build multiple income, but also must steady and keep repeat. This is a circulation income and it doesn't matter you are there or works, it still bringing income for you non-stop.

Generally, we can divide income to 2 categories: One time income or Durative income.

Your paycheck will be the most typical one time income. You working month to month to get pay check to pay check. If you stop working, this income will lose. Some business man also same, if they don't open their office or store for 1 day, they will lose the 1 day chance of earning money. So you must be careful because not every business can guaranteed you get out from the group of one time income. This is the most easy-to-get payment. Just find a job, and this income is there for you.

Durative Income is different. It only appears after you put some effort to build a business, invest and learn some skill to build an automation money-making system. Even you stop working after it; the income will still remain and continue to contribute money into your account. However, this kind of income will need your hard works and effort, some more willpower and patient. I'm building this everyday, so I know the feeling of uncertainty that sometimes really control my emotion to give up. Maybe because of this, people tends to give up this durative income and look for one-time income where it is more easy and simple.

The decision is on our hands. For me I rather suffer when I'm young, maybe for a few years, to build a strong financial basement for my future. The good news are, once you have this kind of basement, you will be more easy to move forward and go for the next status, Rich and wealthy.

Achieve Financial Freedom