Finance can be a pretty complex situation.
Some people are just afraid of numbers. And fractions. And percentages.
There’s help out there, number-phobes.
You can find financial calculators that can tackle all of your challenges–whether it’s finding a great investment, or saving for your honeymoon.
We all tend to think of the boss as the man or woman in the corner office, or cube, who controls our lives for at least eight hours a day. Usually more.
After work, you carry the boss home and spend the remaining hours of the day discussing, kvetching, and bitching about him or her.
For most, this is when the idea of financial freedom becomes so appealing. The line of thinking is: if you have money to escape the job, you’ll have money to escape the boss.
It’s good thinking. But look closely. Who really is your boss?
pic by dizznbonn via Flickr Creative Commons
The trader’s Catch 22 is that high risk can lead to high returns. Oh, and high risk can also lead to devastating losses.
But the great trading dilemma is to figure out how much return you’ll receive for the risks you take. One way to estimate this risk-reward ratio is by using the Sharpe ratio.
The Sharpe ratio is named after Nobel-prize winning economist William Sharpe.
The ratio is calculated by subtracting the risk-free rate – such as that of the 10-year U.S. Treasury bond - from the rate of return for a portfolio and dividing the result by the standard deviation of the returns.
This may sound a little complicated, but compared to other ways of determining risk, the Sharpe Ratio is a snap.
Pic by Alan Cleaver at Flickr Creative Commons
Mint.com, Wesabe, Bundle.com and other personal finance technology hubs were the first to recognize the democratizing power of technology in the money management sphere.
Online personal finance tools can unleash a team virtual accountants and analysts in your laptop.
You can now run reports and check graphs on everything from creating a budget to monitoring your spending habits to pinpointing your best investment returns.
Now, banks and credit card companies are growing wise to this tech trend and bolstering their own sites and online banking portals with personal finance technology.
Most customers are wondering, “what took you so long.”
Accelerating Technology, Internet, Investing, Money, Online Investing AI, Success, US Economy
I think it may be an understatement to suggest that there are people who aren’t numbers people.
Fractions, percentages, and equations are just hard to wrap your head around, especially if your a visual person.
Thankfully, technology is making sure that just because you’re not a numbers person, you aren’t shut out of personal finance.
Bundle.com, a site that’s just starting up, is taking the next step in money management technology.
It not only pulls in tons of financial info for you, Bundle presents it in a cool, easy way.
You don’t have to be a numbers person to be a personal finance expert anymore.
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Picture courtesy banspy @ Flickr
Trading and gambling have been metaphorically tied together forever.
Traders talk about making a bet. They say they hit the jackpot, or they left their money on the table.
Trading and gambling, after all, do share commonalities–risk, returns, a certain element of randomness, and position sizing–to name a few.
But the comparisons, or lessons, don’t stop there.
According to a new study from Cornell University, investors and traders can all learn from a slightly contrarian gambling strategy. The study makes the case that online poker players who win more hands, end up losing more money.
Accelerating Technology, Automated Trading, Business Strategy, Dreams Come True, Internet, Investing, Money, Online Investing AI, Success, US Economy
True story.
In the mid-2000’s a minor hedge fund manager named John Paulson noticed the housing price trends in the early 2000s had far out-paced historic trends.
He decided a new trend was coming–a massive drop in home prices. Paulson made an astute bet that the prices would decline. He was right.
Then, he and his wife went on vacation.
During the vacation, Paulson’s wife went to the ATM to check the balance. When she looked at the statement, she was more than a little surprised to see the figure: $45 million.
I don’t know how Paulson became a hedge fund manager and I’m not even sure you’d want to follow a similar path, but in this three-part series, you can learn that you have access to some of the tools and technology needed to create your own version of a hedge fund.
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As you might have guessed, Online Investing AI believes that Automated Trading will change the landscape of investing. Automated Trading combines the low-maintenance of investing with the better returns of trading.
As technology becomes more dependable and investment strategies become more predictable, new doors of access will open for investors.
But investing is just one block in your wall of personal finance. You also have to spend and save money wisely.
If computer and online tech can help you invest, it can also help you save. And, it’s true. There are ways you can use the power of automated personal finance to improve your financial well-being. Here are six easy steps to turn boring money management into automated personal finance:
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If you’re like me, you care less what’s in your bank account than what will be in your bank account the day before payday.
Budgets are fluid and PocketSmith is one of the first online personal finance tools that helps watch the ebb and flow of your money situation. It can even predict what your fund level in your bank account will be on any given date, based on past money performance.
And if you’re not happy with the results, you can play around with your financial inputs to better balance your budget. Adjust how much money you’ll spend and when you’ll spend it. Adjust more income, if that’s in the cards.
It has a pretty wide predictive range, too. In case you want to see whether you can splurge for Christmas, PocketSmith can look into the future to generate six-month and a year forecast.
Making money has got a bad rap.
When most people think about how to make money, they think they have to put on a suit and getting a job. They’ll spend long hours slaving away on a spreadsheet, balancing columns. Then, after years and years, the boss will give them a raise.
Or outsource their job.
But, making money doesn’t have to be ties and spreadsheets. In fact, some people are making money in smart, fun ways. They’re also learning how to save and invest in non-traditional ways.
In this Weekly Wisdom, we’ll link up with some fun ways to make money. (And save money. And invest money.)
Automated Trading, Investing, Money, Online Investing AI, Success
The future is here.
Learn how to use Accelerating Technology to make money.
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The Singularity is Near by Ray Kurzweil is the book that started it all. If you want to know about the future, it is the best book I've found. Absolutely fascinating.
Rich Dad Poor Dad by Robert Kiyosaki. This is one of the most popular personal finance books of all time. A must read for anyone who wants to become financially successful.
The Millionaire's Secrets
is one of my favorite financial books of all time. It's an allegory about a guy who has a terrible job, and how he overcomes challenges to achieve his dreams.
The One Minute Millionaire is a great book about how to become a millionaire. Written by Mark Victor Hansen and Robert G. Allen, this book combines an inspirational story with practical everyday skills.
The Art of Learning is the fascinating story of Josh Waitzkin, the world champion in both chess and Pushing Hands. His style is mesmerizing, and the strategies for learning are priceless.
The Alchemist is one of the best-selling and most inspirational books of all time. Anyone who has ever had a dream in life needs to read it. Perhaps my favorite book of all time.
Love is the Killer App is a powerful, step-by-step book about how to have a wonderful experience and spread love in any working environment. Think the office has to be a source of bad energy? Think again.
The 4-Hour Workweek is a powerful book full of strategies about how to get more done in less time. For anyone who is looking for leverage or wants to achieve success quickly, this book is absolutely invaluable.
