2 posts tagged “taxes”

I am constantly surprised how many people do not set up a business when they have income from whatever it is that they do for fun or for profit. Some of the things that I hear are:

• I've thought about it but its too hard
• Too much paper work
• I'll get audited
• I don't want the government sneaking around in my bidnez

And on and on and on. Well it is not hard, there isn't too much paperwork, you'll only get audited if you try to cheat the system, as a business the government allows you to write legitimate expenses off your taxes!

My biggest reason is the tax write off. Education is expensive, subscriptions to help me do my job better, hardware, software, anything which goes towards helping you make money is tax deductible. 

I found an old video by Trader Brian which is short and tells you the benefits of trading as a business in an easy to listen to video.
 

 Other just as important benefits are:

• The hours are your own
• you don't have to answer to anyone
• The work isn't physical
• There is a lure to the excitement of wheeling and dealing, trading hot markets and making profits.

To those who have never had a business before but are now trading... is it possible to trade the markets as a business? If you have some money to get into it you can possibly make some money but there is no guarantee to making a decent amount of money if you can make any money at all. The best ideas for businesses are ones that will bring you a stream of income for your work and knowledge. A smart way to get into trading the markets for profits is to start very small. Start with safer investments and see if you can first make a little money. Use the profits if you have them to make more trades but limit any loss. Meanwhile continue to learn, EDUCATE YOURSELF about the market you want to trade.

Things that you will need to make money trading the markets are a computer and some tracking software of the market prices you are interested in. There is another thing you will need, money. And the money you put in can be lost if your actions don't follow the proper education.

Another thing you will need is experience. You can learn to trade by trial and error rather than through education first but that can be very costly and you may very well lose a significant amount of your money before you give up on the effort.

Books are written on the subject that can help you. One that is good is from William O'Neal of the Investor's Business Daily called 'How to make money in stocks'. The book helps you to gain knowledge of what to look for to profit but it's not a guarantee that you will make money even if you learn everything taught in the book. Many books have been written on how to make money in the market or commodities. No matter how much you know it's good to learn more from others so it's good to read all you can.

Even better still, find a mentor, someone who has been in the business for some time and continues in the business. Finding a mentor is not easy because they are giving of their valuable time to teach you their experience. If you are unable to find someone to give you plenty of face time, try to find a comprehensive course package that has online support of a community of traders as well as the mentors themselves. This can be almost as hard as finding a face to face mentor simply because they sell based upon their marketing hype or the fancy packaging. With these you have to have a sense of truth in their marketing and sense that they are truly going to teach you their experience to help bring you success if you learn the full course. Be always weary of online courses and packages...buyer beware. Some are designed to not teach you everything but little bits at a time at great expense to you.

This is a business that you may end up making money with but it's only a possibility and not something that many are successful with primarily because they don't take the time to educate themselves properly. Also because many people only look for the easy way, the get rich quick way, of which there isn't. Only a small percent of those that are educated well make significant amounts of money. The market is always trying to work against the small trader. They count on manipulation especially in broadcast media and specially written newsletters to get you to buy this or that stock. So you'll have to remain an alert and discerning business owner. 

A seasoned trader says that he makes bad calls 70% of the time and great calls 30% of the time. Yet since he is careful to limit his losses and let his profits run, that 30% makes his family a nice income to live on.

Trading IS a business and so thinking and acting as a business entity is necessary lest you slip into a dream state. You'll be dreaming yourself into making money when in reality you aren't doing what you should be doing and are loosing money. In that case keep your job or go into another business to make a living. Don't expect to make a business out of trading if you are not determined to take it seriously every working day.

We the citizens of this great country are often like sheep say some. Perhaps we are more like the ostrich who puts his/her head in the ground. Perhaps we are any one or all of the three monkeys: See No Evil, Hear No Evil, Speak No Evil.

We will always try to bring relevant information to you by finding and spreading the word on whats going on that you may have not heard of.

Why? Because it should matter to you because it affects you, your children, your future, and your money, that is why.

In this video, the question comes up as it almost always does...'just what are we paying our representatives to do anyway? Where does our tax money go and why is it not being used to improve our lives rather than something else?'

Starting at the 6:19 mark: "Since 2004, the Bush Administration has removed 1,000's of water-ways from the Clean Water Act protection." So the question is why? Why has our top government leader and his people, stripped away the protection however meager, from thousands of water ways? Who is and who has influenced these negative actions and why? I think we all know. Question is: how long will we continue as the tax paying public, the supposed ones who supposedly elect our representatives; how long will we continue to look the other way as our rights and our wishes are plundered and that plundering protected under another new law or amendment?

This next two part video shows how studying animals help us understand what effects polluted water is having on our planet's wildlife. The second part finds that water pollution is causing potential effects on our current state of health and questions what it is doing to our newborn children. Are we going to give birth to unhealthy babies? Will our children's lives be troubled by high concentrations of chemicals that have altered their bodies from birth? Mutations in animals could lead to mutations of humans. What are we letting happen to the future us?