Your Questions About Successful Trading Business

Betty asks…

What are some good sites that give daily predictions of the stock market?

If you’re aware of one that has been successful, I would appreciate it if you posted a link.
If you have any advice on which stocks to buy or which ones to sell short, please share. It’s for a virtual stock exchange game, not real.

John answers:

Do you really want to be investing in the stock market as it is now? I’d recommend considering Forex trading, with its extra liquidity and potential for profit. Don’t get me wrong though, it’s a risky business and you have to do your homework.

I recommend going to or to learn about the market and understand the trading methodology. Take your time to learn and practice with a demo account.

For guidance i suggest a pro signal service like They give you daily trading signals, and they’ve been amazing. Been with them since they launched and its going good so far.

Best of Luck.

Lisa asks…

How did John D. Rockefeller managed to fund his first business-venture as a book-keeper?

He was a book-keeper at first and earned meagre wages but still he managed to start his first business, a food and grain firm, within 2-3 years of getting his job. How did he fund it?

Moreover, how did he later fund his oil refineries?
Please provide some info. in addition to the Wikipedia article. Thanks!

John answers:

I offer here a quote from the web page identified below.

“Hewitt & Tuttle, a small company of produce
shippers and commission merchants employed
him as an assistant bookkeeper. Rockefeller
worked hard and impressed his employers,
arranging complicated transportation deals
moving freight by railroad, canal and lake boats.
He began to trade for his own account and his
combination of caution; precision and resolve
brought him to the attention of the Cleveland
business community.

In 1859, several months before his 20th birthday,
Rockefeller entered into business for himself,
forming a partnership with a neighbor, Maurice
Clark. Each man put up $2,000, John had
$1,000 he had saved and he borrowed the
other $1,000 from his father. Due to Rockefeller’s
natural business abilities, Clark & Rockefeller
earned a small profit their first year in business
and the company became very successful.”

So apperantly he saved some of his income from his job as a bookkeeper and saved profits from his own speculative transactions using the company’s ships. It helps to have an uncle who can help you oult with a large loan. $1000 was a princely sum back then. Naturally the truth has been polished just a bit but he must have been shrewd businessman and a risk-taker engaging in some kind of arbitrage using the company’s transportation to make his deals possible while he worked for the shipper.

Steven asks…

What all goes into running a photography business?

I love photography and I’m planning on starting my own photography business someday. I was wondering what all goes into running a successful business on a daily basis?

John answers:

It is the same as running any business.
You need skills and experience of the trade itself and then skills in accounting, administration, marketing, customer service etc etc.

Ken asks…

How do I interpret an Unaudited Financial Statement?

I am trying to determine the value of a business and this is the only information I have available to me. Is “Total Liabilities and Shareholders’ Equity” a fair measure of value?

John answers:

It really depends on why you need to determine the value. If you are deciding whether to invest in the company, then I would say revenues would be the most important thing. You would also want to see how much money they have sitting in their most liquid asset accountants (Cash and equivalents, A/R).. If they have a ton of their value in cash then you would want to find out if it’s because they are planning an expansion, or if they are just not spending their money in the right places to grow the business. If they have a ton of their asset amount in A/R, you would want to find out if they are having trouble collecting. Lastly, you should compare their total assets to the their total liabilities, and especially their total current liabilities to their liquid assets, because this will help you determine whether they have the cash on hand (not tied up in inventory that has to be sold first – assuming it’s not a service company) to pay the bills they will have due. Basically, you want to make sure they need/want your investment to grow the business and be successful, not to cover short terms bills they can’t pay and prolong the time before they shut down.

Like the other poster said, unaudited financial statements aren’t really worth the paper they are printed on, unless they are simply waiting to be audited or in the process of (if that’s the case, you could probably trust them for the most part, as the company wouldn’t want to pay their audit teams what it would require to make a TON of adjustments). If this is a publicly traded company, they will be forced to be audited and report to the SEC. If this is not a publicly traded company, and you don’t know enough about business to figure out whether its a good investment on your own.. Then you should NOT invest your money in start-ups!!! I’m assuming this is for a class project or something? If so, try to look at some of the things I talked about above, but there are really too many what-ifs for me to nail down how to approach it. My last suggestion would be to find financial statements for a company in a similar industry to see what percentage of their assets are in cash, etc.. That will help you figure out whether the company you’re looking at is reasonable.

Thomas asks…

How do I legally demote a member of staff?

I have a member of staff who is acting as a deputy manager. She used to work 3 days a week, but upon returning from maternity leave she’s working 1 day. I really need a full time deputy who can assist any day of the week. Business is struggling and she’s the highest paid member of staff but isn’t doing anything “deputy” like to justify the extra expense. I need to drop her wages . How do I do this?

John answers:

The starting point is to recognise that an employment contract cannot be unilaterally varied by one party without the consent of the other. If an employer attempts to impose a reduction in an employee’s salary without their consent then this will entitle the employee either to resign and claim constructive unfair dismissal or, alternatively, continue to work “under protest” but sue for compensation for the loss that the employee has suffered as a result of their reduction in salary. In either case, employers should therefore avoid unilaterally imposing a reduction in salaries on their employees, particularly bearing in mind the current maximum compensatory award for unfair dismissal is £66,200.

If an employer is contemplating reducing employees’ salaries, then they would be best advised to attempt to seek agreement with their workforce so that such a change can be implemented by consent. In the current recession many employees are likely to agree to a reduction in salary if this is seen as an alternative to being made redundant or placed under the threat of redundancy. Indeed research for the ITV programme “Tonight” revealed that 40% of employees would agree to a pay cut in such circumstances.

Ultimately, if any employees refuse to agree to a reduction in their salary, then an employer would have the option of terminating employees’ contracts of employment by giving them contractual notice and offering a new contract on a reduced salary. However, employers need to be aware that if 20 or more employees are affected by such proposals then they will legally be obliged to consult with a trade union or employee representatives concerning the proposed changes. A failure to properly engage in this process could lead to significant protective awards of compensation being made against an employer of up to 90 days pay per affected employee. Often such awards can run into many hundreds of thousands of pounds if substantial numbers of employees are affected.

It is also important for employers to be aware that those employees whose contracts are terminated can still bring claims for unfair dismissal, even if they have accepted the new contract. Indeed the fact that employees can accept the new terms and conditions of employment but still pursue a claim for unfair dismissal is regularly overlooked by both employers and even some lawyers. Whether such claims for unfair dismissal are ultimately successful will depend upon a variety of factors, including:-

?Whether the employer can establish a substantial business reason for the reduction in pay;
?Whether the disadvantages that the employee would suffer as a result of the changes were properly considered and whether such disadvantages outweighed the advantages to the employer in implementing the changes;
?Whether the employer had engaged in genuine and meaningful consultation in relation to the reduction in salary;
?Whether a majority of the employees accepted the changes;
?Whether other potential ways of reducing overheads were considered by the employer;
?Whether the employer acted reasonably in all the circumstances when responding to any employees objections.

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