Finance Tips

Day trading 101, education and knowledge keys to success. In the world of finances there are many things to be aware of before making that first, initial trade. While that is true with all types of trading, it is especially true for the day trader. There is no way to just “feel” your way through day trading, especially with all of the new regulations and rules that seem to be handed down and changed daily. What was permissible yesterday is a SEC violation today- not knowing is not an excuse, especially when we are talking hundreds of thousands of dollars here. There are many things to know to be a successful and above the board day trader, not knowing them can mean more than financial loss.

Of course, you know among the styles of trading, day trading is considered one of the riskiest- it is a fast paced, white knuckled ride in a Lamborghini Diablo, where other styles of trading can be more like a sedate cruise in a Cadillac. Either way, you have to nowhere you are going lest you wind up broken down along side the financial highway. Education is the key that will allow you to drive that supercharged roadster right to the gates of financial success. Continue reading ‘Day Trading 101, Education And Knowledge Keys To Success’ »

Any successful business owner is constantly evaluating the performance of his or her company, comparing it with the company’s historical figures, with its industry competitors, and even with successful businesses from other industries. To complete a thorough examination of your company’s effectiveness, however, you need to look at more than just easily attainable numbers like sales, profits, and total assets. You must be able to read between the lines of your financial statements and make the seemingly inconsequential numbers accessible and comprehensible.

This massive data overload could seem staggering. Luckily, there are many well-tested ratios out there that make the task a bit less daunting. Comparative ratio analysis helps you identify and quantify your company’s strengths and weaknesses, evaluate its financial position, and understand the risks you may be taking.

As with any other form of analysis, comparative ratio techniques aren’t definitive and their results shouldn’t be viewed as gospel. Many off-the-balance-sheet factors can play a role in the success or failure of a company. But, when used in concert with various other business evaluation processes, comparative ratios are invaluable.

When performing a ratio analysis of financial statements, it is often helpful to adjust the figures to common-size numbers. To do this, change each line item on a statement to a percentage of the total. For example, on a balance sheet, each figure is shown as a percentage of total assets, and on an income statement, each item is expressed as a percentage of sales. Continue reading ‘ANALYSIS OF FINANCIAL STATEMENTS-SELECTIVE TOOLS’ »