Surviving the Financial Crisis Part II

Dear Reader:

In the first part of this series, I talked about four keys to surviving the financial crisis. They were

  • Mindset
  • Vision
  • Skill
  • Information.

I described the first two keys Mindset and Vision, in my previous article, and now, in the final part of this 2 part series, we will discuss about how Skill and Information could be critical factors in your making a goldmine out of this financial crisis.

Your skills are your toolbox for solving problems. Now, I can hear some of you whining, “I don’t have any skills”. Well, that’s a lie. Each of us has something that they are good at. I know you have heard this before, but if you have, then what are you doing with this knowledge? Your main task now is to sit down, with a pen and paper, and make an inventory of what you are good at. It could be something as obscure as a hobby, like bird watching, I kid you not. You have skills, and what you need to do, is identify how to use those skills in solving problems for people.

Some possible skills you might have are

  • singing
  • Music
  • Computer programming
  • Writing
  • Gaming
  • You might be extremely critical…you might think this is a joke but film critics, and political analysts would tell you otherwise.
  • Good with animals e. g Dogs. Type ‘Dogs’ into Google, and see a whole new niche market for dog lovers.
  • Sports
  • Event management skills.

Now with your skills, all that’s left for you is to identify your niche. Your niche is the unique area or subset, where your skills will have the maximum impact. Remember the 80/20 rule? Well, your niche is the 20% in the market, which if you make a real impact, will guarantee you an 80% harvest. Now, I hear some of you people asking me how they can’t find their niche…well you are wrong.

People are out of jobs, and most people might be spending more time at home. In the house, they might be bored, and begin ‘fix it’ projects around the house like assembling that shelf or painting the house. Now you could come up with an eBook or a report, describing how to fix things around the house, and sell it for $20 dollars on your site. If 500 stay at home dads looking to fix stuff around their houses download your book on house painting, that’s $1000 at once.

Let me give you another scenario. Due to the financial crises, some people might try setting up home businesses. Mr. Joe, having been laid off from his job, has decided to do what he always wanted to do, which is to make and sell his own pizza. Now he needs a system for tracking his expenses and orders. You could design software to handle his book keeping, and make it cheap and flexible, and easy to use. And if you can’t program, you could always contract the job out, to programmers on rentacoder. com or elance. com or other such sites. You could post a short description of what you want done, without giving away your idea, and a programmer could bid on the job or do it for you. You could also go to your local university and hire young computer science or computer engineering students looking for experience, get the job done, and put it on your website, and sell it for $200. If you get 100 people to buy and download it, that’s $20000.

Let’s say you like gaming. Now, due to the financial crisis, at least one person might be at home, with a 50% chance he or she might be playing a video game. You could sell tips on a particular game that most people would buy, like FIFA 2008 or something in an eBook. Sell it for $50; get 500 people to buy it. . . that’s $2500. The cool thing is that you can even make cash while you are sleeping. . . . that’s passive income!

Do you get the idea now? Solve problems, for as many people as possible, charging a fair amount of money for your services, and you will have made the best of this financial crisis.

The last key is information. You constantly need to do research into the market and the possible problems that people have that you can solve. You also need to keep investing in yourself, and learn, learn, and learn. Buy books, listen to audio tapes, and keep getting information. One major idea can change your life and point you in the right direction for you to achieve your major goals.

According to Brian Tracy, one way of ensuring your mind hits the right idea, is to increase the probability that it can. You need to keep feeding your mind, and bombarding your mind with positive mental protein. What exercise is to the body, is what reading is to the mind. Find out what achievers in your area, read, and read it also. Information is constantly changing, and you absolutely need to stay on top of things, and be relevant in this modern world we live in.

In conclusion, I would like to say, that every cloud, when viewed properly, has a silver lining. Your job is to train your mind to look for the opportunities present in this time we live in, and when you see them and act on them, your life will be transformed in ways that you cannot even fathom.

Financial Spread Betting – 7 Advantages

Here are seven reasons why you should consider financial spread betting

1. Easy to pick up

Financial spread betting is based upon a simple concept of betting a stake per point. This system works for all of its related markets. It may seem tricky at first but after you have run through a few examples you will see how easy it is to pick up.

2. Low Starting capital requirement

You don’t have to be rich to start. You can start of with a few hundred pounds in your account. Unlike share trading there is no commissions so this means you aren’t penalised for smaller trades. The costs are included in the size of the spreads which are the same size no matter the size of your trade size.

3. Diverse Markets

You can trade in a number of different markets from one financial spread betting account. Markets include individual equities from home and abroad, indices trading, currencies, commodities, house prices, bonds and interest rates. The technical element works in the same way over each of these markets, you place a stake per point.

4. Going short

It you only two positions are long or neutral then you could be leaving a lot of money on the table. Bear markets make people very rich and financial spread betting allows you to take full advantage of that. You can also use shorts as a way of hedging your other long positions.

5. No Tax To Pay

Currently, you don’t have to pay tax on any profits you make and you don’t have to pay stamp duty when you buy. If you are making profits then this is a massive benefit to you especially if you are making profits in excess of the capital gains threshold. Remember though that this may change in the future so check the tax laws on a regular basis.

6. Eliminates currency risks

When you buy securities in countries that use a different currency than your own then you are always have a double risk because of the currency exposure. With financial spread betting you make money on a point by point change and the currency that the security itself is trading in doesn’t make any difference. Obviously there are occasions when you do want the currency exposure and in those cases you can use financial spread betting to easily expose yourself to other currencies.

7. Power of Leverage

Now you should always be sure to understand the risks when it comes to leveraging your position. That is because you can lose more than your initial stake. But when used correctly, financial spread betting is a great way to benefit from leverage. Small margin requirements mean that your profits (and losses) are amplified.