Your Questions About Successful Trading Companies

Sandra asks…

would you date or marry someone who didn’t?

go to college and doesn’t have a degree but they are successful with a trade, plumbing, tiling, carpentry,perhaps they have their own company and it’s doing well. The country where I’m from people are rather obssessed with titles; doesn’t matter if you just about scraped through passing with a D or long as you have a “degree” I also know very smart,intelligent, interesting people who didn’t go to school but they read alot. I studied, simply because at one point I believed I wouldn’t be “accepted” without it. Now I’m not even working in that field, but very happy in another. what a waste. How is this viewed in your country? is it frowned upon not going to college? not everyone can afford this.

John answers:

Hi Isabelle,

Thanks for your intelligent question.

I think your point is valid. Titles, certificates and status are very important in most societies. And as more and more countries get urbanised, it seems to be more and more common for people to chase the 3 “C”s : certificate ( higher education), cash ( high salary/wealth) and condominiums
( assets/ property). Ultimately all this has to do with status.

Having said that, money and status does not guarantee good health and happiness. So I guess it all depends on your own personal priorities.

Moreover , there folks out there who did not go through higher education but became successful businessmen and entrepreneurs.

For me personally, I respect all folks from all walks of life. I greet all my colleagues, bosses and even the janitors in my office!

Be it the janitor who cleans the office or the manager, in reality we need all kinds of people to run society.

But success is in the eye of the beholder: many people have lots of money and status, but are never satisfied.

And yes I would marry a person who does not have a degree or diploma, provided he is good guy and we are compatible. I have learnt some lessons in life money and status is not everything!

But I know many grads will not marry a non-grad : sad to say.

Lisa asks…

Please, what is it meant by “posing” here?

Atlas Group has grown into one of the leading regional companies in the fields of banking, financial services, insurance, real estate, manufacturing, trade, media, education, culture and sports, *posing* as an example for quality and successful businesses in Southeastern Europe.

John answers:

It means standing as one of the best.

Donna asks…

GE Stock: Should I buy direct or through online trading company?

I want to buy some GE stock… Should I buy direct through GE or go through an online trading company? I plan on initially investing 2,500 and adding about 1,500 per month. I want my dividends to roll over and purchase new stock.

John answers:

Good, you are getting engaged.

If you’re just going to make one purchase or two and hold it for several years, I can see going direct. But otherwise you’re just limiting yourself and restricting yourself and committing to a Buy & Hold strategy. By going direct, you have to hold the paper, you can’t use stops or ANY strategy whatsoever to manage it. All of that for what? A dividend that pays at a rate of 3.7%, about the same as inflation? Doesn’t seem like much of a plan to me. Is this a holding spot or an investment?

Let’s see, if you buy 100 shares at $21/share, it will cost you $2,100. The dividend pays 3.7%, or roughly $77 for one year to tie up that capital. If you roll over the dividends, that will buy you 3 new shares of stock after one year. Or that’s roughly a tank of gas or maybe a halfway nice date (but you only get one a year). I just don’t get it when people “invest” for a dividend.

Going through the right broker, like TD Ameritrade or Scottrade or even Schwab gives you a lot of amenities like earnings reports, and news, and prices, and access to other traders, trading platforms with charts and even access to strategies and tools and tons of management prospects that are already paid for by opening an account and depositing money with a broker. Your first objective is to make money, and only a broker can give me access to everything I need to be successful; otherwise you’re on your own and essentially ignoring your investment. Shaving pennies on commissions is way down on the priority list of things that you should be looking for to manage a stock position. And intentionally ignoring an investment just doesn’t make good business sense, or any kind of sense.

If you are going to be adding to your investments monthly, you’ll want to diversify, and not put all your eggs in one basket. Only by going through a broker can you facilitate that objective effectively.

Let the broker do the work of buying and selling and handling the paperwork. Your job is to manage the strategy and future and direction of the account.

Get the book, Investing for Dummies from your local library, and your investment will make 2013 a banner year that you can be proud of. You might even make some real money, almost certainly more than 3.4% if you learn just a little.

Paul asks…

What questions should I ask on a second interview?

I had an initial phone interview with and electronic trading company that has around 150 employees. I interviewed for an administrative assistant / reception position. My role would be to run errands and keep the office running smoothly, there are a few other employees who do the same thing and I’d be joining them. I am going for a second interview of sorts to meet with everyone and was asked to come up with 8-10 questions to ask regarding their success etc in the office… what else would be appropriate to ask?

John answers:

– What are there successful green (recycling) policies.
– What are the successful team support activities
– What are the successful communication strategies in the company or office

William asks…

If there is an acquisition talk on a publicly traded company, why is it good for the stock price?

what is it that acquisition does for the share price and why?
Also what will happen to my stock if it gets bought out by another company?


John answers:

Typically, an unhealthy company is bought by a more healthy one that injects cash into its acquisition, fires all the losers and forces the remaining employees to adopt a more successful business strategy.

Being acquired, it’s assumed the company sucks and is either failing or covering up the fact that it is failing. Acquiring a company, it is assumed you are successful enough that you have tons of extra cash to make the purchase.

It’s also assumed that the purchasing company does things to manipulate downward the stock price of its acquisition before sale and manipulate it upward, after the sale, so as to improve its credit rating.

All this adds up to the assumption that a stock about to be acquired, is undervalued for what it will be after it is acquired.

This is not always true. But it is perceived to be true.

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