Your Questions About Successful Trading Business

Daniel asks…

What do you think of the opinion you should never listen to investment experts; they are likely to be biased ?

Investment advice on various stocks by ‘experts’ seems to be an attempt to manipulate the stock price on things they hold – therefore we should be very wary of their advice.

Their advise should be based on first principles analysis of business performance and placing this in context of the market the business operates in combined with technical factors that might affect the share price or the small investor eg Currency movements and losses from currency conversion and transaction charges.

What should we take into account when considering their advice?

John answers:

Hi,

I think that all people do mistakes. Not exception is the market analysts.

I just wonder why they are not trading themselves if they are sure in their own forecast. Trading is much more profitable than forecasting. The conclusion is that they don’t believe in their own forecasts.

I don’t listen to any experts’ forecasts anymore.

If you would like extend your one’s knowledge about successful trading then read those books: Trading Chaos – Applying Expert Techniques to Maximize Your Profit by Bill M. Williams;
New Trading Dimensions by Bill M. Williams
Trading Chaos II by Bill Williams – Maximize Profits with Proven Technical Techniques by Justin Gregory-Williams and Bill M. Williams

It is really worth to allot some time for reading it. It would be very useful as for traders as for investors.

Good luck!

Charles asks…

how can you start a business? when you first start how do you start? How do you get merchandise?

i am thinking about opening a business i am needing guidlines befor i open this business. i nedd help on how to open this business. I need help on how to order the merchandise.

John answers:

Starting a small business takes a lot of courage. But, as they say, courage does not pay the bills. To be successful – to stay in business – you need more than courage. You need a combination of hard work, skill, perseverance, and lots of luck.

Some things you need to consider:
– “How can I support my family while I build up by business?”
– “What are my abilities?”
– “Is there a market for the product or service I have chosen?”
– “How long will it take this business to reach the financial goal I have?”

You may want to read the article “How to Start a New Business Successfully” http://www.powerhomebiz.com/vol51/launch.htm , which lists six steps to launch a new business successfully:

1. Provide a benefit.
2. Determine the fit with your market.
3. Right timing is everything
4. Be ready to support your business
5. Develop a blueprint for success
6. Market, market, market

I suggest you read the article “10 Things You Need to Know When Starting Your Own Small Business” http://www.powerhomebiz.com/052006/startingbiz.htm which lists the important things you need to know when you are starting a business.

I recommend that you read the following books:

– What No One Ever Tells You About Starting Your Own Business : Real Life Start-Up Advice from 101 Successful Entrepreneurs
– Starting From Scratch: How To Start A Business When You Don’t Have Money
– If You’re Clueless About Starting Your Own Business and Want to Know More
– On the Move : How to Succeed and Survive As an Entrepreneur
– How to Make 1000 Mistakes in Business and Still Succeed

As for getting merchandise to sell, I suggest you contact manufacturers and wholesalers in your industry. Attend trade shows and expos as the industry players are all there and you can introduce yourself and ask how you can buy from them.

Sandra asks…

What are the advantages and disadvantages of a franchise?

Hiya, I have some business work for my college course, which requires me to know the advantages and disadvantages of a franchise.
Please answer as soon as possible, as the work needs to be given in asap.
Thanks xx.

John answers:

Do you mean franchising YOUR business or buying a franchise?

If you mean buying a franchise, like a Subway store or a Macdonalds, then……..

Advantages and disadvantages of franchising

Buying a franchise can be a quick way to set up your own business without starting from scratch. But there are also a number of drawbacks.
Advantages

Your business is based on a proven idea. You can check how successful other franchises are before committing yourself.
You can use a recognised brand name and trade marks. You benefit from any advertising or promotion by the owner of the franchise – the ‘franchisor’.
The franchisor gives you support – usually including training, help setting up the business, a manual telling you how to run the business and ongoing advice.
You usually have exclusive rights in your territory. The franchisor won’t sell any other franchises in the same territory.
Financing the business may be easier. Banks are sometimes more likely to lend money to buy a franchise with a good reputation.
You can benefit from communicating and sharing ideas with, and receiving support from, other franchisees in the network.
Relationships with suppliers have already been established.

Disadvantages

Costs may be higher than you expect. As well as the initial costs of buying the franchise, you pay continuing management service fees and you may have to agree to buy products from the franchisor.
The franchise agreement usually includes restrictions on how you can run the business. You might not be able to make changes to suit your local market.
The franchisor might go out of business.
Other franchisees could give the brand a bad reputation, so the recruitment process needs to be thorough
You may find it difficult to sell your franchise – you can only sell it to someone approved by the franchisor.
All profits (a percentage of sales) are usually shared with the franchisor.

My friends dad owns a Macdonals in Liverpool and he’s pretty loaded 😛

Hope it Helps

Mandy asks…

How do i get into stock trading.?

I’m a second year business studies student, and as of yet haven’t been able to find out how to get into this industry.

There are many people working for banks or investment firms, but how do they get there, what education do you need etc.

Please help..

Regards

John answers:

The biggest stumbling block in the field you’ve described, is selling.

All investment bankers and people who work in the securities field have to do selling.

They’ve attended schools, gotten their licenses, but beyond that, it’s all about contacts with people willing to set aside some funds for investing.

This aspect of the business makes me frown because I can’t sell myself (let alone sell to others), especially if the product I am selling could fluctuate and result in substantial losses.

I have to tell you something I feel is very important, and that you should know.

Prior to the year 1980, the business cycles revolving around the way in which American based companies do business, was remotely different from the way they do business in these times.

I know, because I felt that difference in the way I was treated.

I had a good profit sharing plan with a major bank, and was getting nice pay raises.

Once 1980 came and went, I found I was being rated not by job performance, but ability to bring in new business (selling).

Pressure soon resulted in my losing a good job, because I couldn’t adapt to the new way of doing business.

This new way still continues, which has made the stock market practically the only game in town.

The most serious aspect of the new business model is that all corporations favor locating financial resources over quality workmanship.

We no longer know the origination of these big money interests, and I’m very sure a good portion of them are illegal or corrupt entities.

So, you get the licensing and attend all the good schools, but the next problem is selling to a skeptical public, many of which have little money set aside for investing.

I don’t like the prospects of working in this field, but I do know that many of the successful investment bankers have a good client list which they use to bolster their resumes’.

Good luck in a crowded field of sharks!

Robert asks…

What are some high paying careers in business?

I am in 10th grade and thinking about what i may want to do in the future, and have found that i have a strong point as well as an interest in business, and was wondering what are some careers available in the business world that pay well.

John answers:

The business world has many sort of roles, nearly all of which will pay well if you are successful. I’ve listed a few below — You should research these, and find what suits your personality and goals.

— investment banking — teaches you all about valuation, balance sheets, income statements, etc. You work on various projects in a team setting with clients. The hours can be long and it’s tough to get a job at a top bank, so definitely prepare way in advance if this is what you want to do.
— trading — making markets in a product, and facilitating transactions with clients. You’ll learn a product well and have to like risk management. The day to day is hectic, but the hours are mostly better than other areas of the industry.
— retail banking — working with individuals on their accounts and investments. You learn a bit about many investment products, and have to like working with all sorts of people, selling, and making decisions.
— research — analyzes data about companies in a particular sector. Makes recommendations and issues research reports. You work closely with sales and clients to explain opiniions, and are very busy during earnings seasons.
— accounting — many specialties here, from audit to tax accounting. You have to like working with clients, some travel, and long hours during busy season.
— operations — support the day to day work financial services firms. Good if you like to make things more efficient, solve problems for clients, etc.
— compliance — you need to learn all the rules of the markets, regulators, etc. And help banking and sales and trading apply those rules to specific transactions. A hot spot right now, as many hedge funds are looking for compliance expertise.
— corporate finance — working in the business department of a major corporation — exposes you to accounting, financing, investment, and a variety of other means to generate andd manage funds to stay in business.
— business consulting — working for a consulting firm and partnering with corporate clients on a variety of projects to research business, expand into new markets, make things more controlled, etc.

The list could go on, but I’ve got to stop somewhere. Check the career sections on the websites of firms such as Citigroup, Goldman Sachs, GE, Mckinsey Consulting, and other prominent institutions. They have great career descriptions and some even have quizzes to suggest the best career area for you.

I’d also recommend trying a few internships once you get to college. That will give you first-hand perspective, as well as build your resume.

And remember, you can always change your mind while you’re in school, so don’t hesitate to experiment.

Good luck!

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