Category: Lifestyle

Many people wonder if it is possible to earn so much to be called a trillionaire. In this article, we will tell what the trillion’s value is and whether someone has already earned this amount.

Who is a trillionaire?

A trillionaire is a person whose capital is equal to or greater than one trillion dollars, euros, or pounds. In the United States, a trillionaire is defined as an individual with a net worth of $1 trillion or more.

Although no one has yet become the first trillionaire, the rate at which the world’s most prosperous individuals have grown their fortunes suggests it may occur within a few years. You can track changes in personal net worths on Forbes, which publishes a “Real-Time Billionaires List” that is updated every minute based on stock prices. As of April 15, 2022, there is a $97 billion gap between the net worth of Elon Musk ($264 billion), Jeff Bezos ($177 billion), and Bernard Arnault & family ($167 billion), taking the top three spots. Bill Gates and Warren Buffett, who are in fourth and fifth place, are trailing them by almost $35 billion.

However, it is better not to believe the ratings blindly. As an illustration of how unreliable these estimates of personal capital might be, consider Musk’s $8.9 billion loss in a single day in December 2020, when J.P. Morgan Stanley analysts determined that Tesla shares were grossly overpriced.

Net worth calculation

The total of a person’s assets (including business interests, investments, and personal property), less his liabilities and debts (credit card balances, mortgage payments, etc.), is his net worth.

Despite the apparent simplicity of the calculations, some people may find it challenging to arrive at a precise estimate of their fortune. This is because some assets hold their value pretty well over time, but the value of commercial interests, in particular, changes a lot.

Who’s on top in terms of net worth?

Take Arnault, the French fashion magnate, as an example. Most of the $167 billion he and his family are worth isn’t just sitting in a bank. His fortune is tied to the success of the LVMH conglomerate, which includes such luxury brands as Louis Vuitton, Christian Dior, and Hennessy. The value of labels rose during the pandemic, and so did his net worth (in March 2020, Forbes put the valuation at $76 billion). As of February 2022, that value has increased by about two and a half times.

If the value of his LVMH shares rapidly increases compared to Musk’s and Bezos’ holdings, he may regain the top spot he had in May 2021.

Topping the Forbes list with a staggering $264 billion, Musk has taken the top spot. As of February 2022, his stake in Tesla, a manufacturer of electric vehicles, is approximately 23%, and in SpaceX, a manufacturer of aerospace components, his stake is over 50%.

Bezos, the inventor of Amazon, comes in second on the list with a net worth of $177 billion and a 14% interest in the online retailer’s shares (AMZN on Nasdaq).

Who is the world’s first trillionaire?

You would think that Arnault and Bezos, with their $167 and $177 billion, are a long way from being trillionaires. But considering how quickly some of the world’s most prosperous people have amassed their fortunes, it may only be a matter of time until someone else joins their ranks.

For instance, in the eight years between 2013 and 2021, Arnault saw his net worth increase from $29 billion to $185 billion. If he can accomplish the same thing, he will have a trillion dollars by the decade’s end.

Bezos, who has stakes in The Washington Post and the aerospace business Blue Origin besides Amazon, has had a similarly rapid increase in capital. Forbes has more than doubled its estimate of Bezos’ net worth from $67 billion in 2017 to $177 billion as of 2022.

Musk, who earned from two ground-breaking enterprises (Tesla and SpaceX), may have as good a shot as anybody. The businessman was estimated to be worth $13.9 billion in 2017. And as of April 15th, 2022, experts estimate it to reach $264 billion. If the current pricing trend of those businesses continues, Musk could become a trillionaire very soon.

What is the value of a trillion dollars?

A $1 trillion is such a huge amount that it’s hard to wrap one’s head around the value of all assets it could represent.

The most recent Survey of Consumer Finances by the Federal Reserve puts the median net worth of American families in 2019 at $121,700. Thus, any trillionaire would be 8.2 million times more prosperous than the average American household.

To estimate this amount on a national scale, consider that the combined GDP of Switzerland, Sweden, and Austria is less than a trillion dollars. As of 2020, $1 trillion is more than the GDP of all countries but 16 ones.

There are many reasons why finance is a great career choice. For one, it’s a field that is always in demand. And secondly, there are many different jobs that come with above-average salaries. If you’re considering a career in finance, in this article, we will tell you about 10 of the highest-paying finance jobs you can pursue.

What is finance?

Finance is a field of study that deals with the allocation and management of financial resources. It encompasses a wide range of topics, including investments, banking, corporate finance, and personal finance.

Finance is essential to any business or organization, as it provides a way to track and manage income and expenses. It can also be used to make decisions about how to allocate resources to achieve desired goals.

There are many career paths in finance, such as investment banking, financial planning, and risk management. Salaries in finance can vary widely depending on the specific job role, but overall it is considered a high-paying field.

What do financial workers do?

A career in finance requires a number of different responsibilities, from keeping track of an organization’s financial records to advising on investment decisions.

For instance, financial analysts are responsible for providing accurate and timely information to help businesses make well-informed decisions. They also develop financial models to forecast future revenue and expenditure. Investment bankers offer analysis of opportunities and potential investments, as well as guidance on issuing new equity or debt and advising on mergers and acquisitions.

Is finance a good career path?

Financing is a competitive field, and many want to get into it. If you are considering a career in this area, ask yourself if you are good with numbers and have an interest in the stock market or other investment options. You should also be able to handle stress well, as there can be a lot of pressure involved in making financial decisions.

If you think that finance is a good career path for you, then many options exist. Many different well-paid jobs are available, so research your options and see what best suits your skills and interests. You could work as an investment banker, a financial analyst, or even a planner. 

Proper working times

Many people believe that a career in finance is all about working long hours and being glued to a screen, monitoring stock prices. However, this isn’t always the case. While some jobs may require long hours, there are also many positions with more flexible work schedules.

Financial analysts, financial planners, and accountants are examples of jobs with flexible hours. The first typically work regular business hours, although they may occasionally need to put in extra time to meet deadlines. The second usually have flexible schedules and can often set their own hours. Accountants typically work regular business hours but may have more flexibility during tax season.

If you’re interested in a career in finance but are concerned about working long hours, consider one of these three options. With some research, you can find a position that offers the work hours you’re looking for.

Variety of career opportunities

The beauty of finance is that it is such a diverse field. If you are interested in it, there is likely a career path that will fit your interests and skill set. You can work for a corporation, a small company, or even start your own business.

One more of the great things about finance is that it is constantly changing. If you get bored with one area, you can switch to another or even start your own business. Finance is an exciting field to be in because there is always something new to learn.

Opportunities for growth

There are many growth opportunities for those pursuing finance as a career path. With hard work and dedication, you can move up the corporate ladder to become even a Chief Financial Officer (CFO). In addition, there are many opportunities to start your own consulting firm or become a financial planner.

High income

Finance is often seen as a profitable career path, and for a good reason. Financial professionals can earn a high income, often with excellent job security. However, there are some downsides to working that you should be aware of before making the jump into this field.

For starters, working hours can be long and grueling. You’ll need to be willing to put in the extra time to get ahead and be successful. Additionally, work can be highly stressful at times. Dealing with significant amounts and making critical financial decisions require a lot of concentration.

Certification and license requirements

Each finance job type has its own certification and licensing requirements. Investment bankers, for instance, are required to get a license from the Financial Industry Regulatory Authority (FINRA). Similarly, stockbrokers must pass the Series 7 exam to be licensed by FINRA. Insurance brokers must obtain a license from their state’s insurance commission.

While there are many different licenses and certifications that finance professionals may need, the good news is that most of them can be obtained relatively easily. And once you have them, you’ll be well on your way to a successful career!

Top 10 highest-paying jobs in finance

A career in finance is a wise decision for a variety of reasons. The pay is good, the work is interesting, and there are many different paths you can take within the field.

There are a few jobs that stand out as being particularly well-paid. If you want to earn a really good salary in finance, below are the jobs you should aim for.

Investment banking

The top investment banks in the world include Goldman Sachs, JPMorgan Chase, and Morgan Stanley. Investment banking is a financial services sector whose employees deal with the raising of capital for businesses and the government. An investment banker is a highly-paid profession, with salaries ranging from $50,000 per year.

Corporate finance

The branch known as “corporate finance” is concerned with the financial choices made by corporations. These decisions include the raising of capital, the investment of funds, and the management of risks. Corporate finance is a vital part of any business, as it helps ensure the company has the money it needs to grow and prosper.

Asset management

There are a few different types of asset managers. The first is an investment manager, who makes decisions about what securities to buy and sell to grow the portfolio’s value. The second type is a portfolio manager, who oversees a group of investments and ensures that they are performing in line with the investors’ goals. And finally, there is a wealth manager who provides advice on how to best use financial resources to get wealth management help.

The average salary for an asset manager is $84,240 per year, according to the most recent data from the Bureau of Labor Statistics.

Hedge fund manager

Hedge fund managers are among the highest-paid professionals in the finance industry. They typically earn a base salary plus a percentage of the profits they generate for their investors.

Chief financial officer

The responsibilities of a CFO are broad and include managing financial teams, supervising analysts and budgeting, and making cost-effective decisions on technology infrastructure.

Venture capitalist

Venture capitalists are those who invest in startup companies. They typically work for venture capital firms, which provide financing to early-stage companies.

Venture capitalists typically have a background in business or finance, and they use their knowledge and experience to help startups grow. These workers may also provide mentorship and advice to entrepreneurs.

Accountant

Accountants are those who record, classify, and summarize financial transactions to provide information to clients, investors, and management. They typically have a four-year degree in accounting or business administration, and most states require certification.

Accountants are in demand because they play a vital role in ensuring the accuracy of financial records. They also help businesses save money by finding ways to reduce costs and increase profits.

Financial analyst

Financial analysts provide essential support to organizations in making sound investment decisions. They research and analyze data to help their clients understand investments, funding, and other financial matters. Effective communication of complex financial information is crucial for success in this position, as are strong analytical and math skills.

Most analyst jobs require at least a bachelor’s degree in finance or a related field. Many employers also prefer candidates who have earned professional certifications, such as the Chartered Financial Analyst (CFA) designation.

Insurance agent

A different name for this profession is an insurance sales agent. He assists clients in selecting insurance plans that are appropriate for their needs. The broker deals with policies for motorcycles, RVs, boats, homes, umbrellas, and other types of insurance. 

The level of skill and experience, education, qualifications, and other criteria all affect pay.

Private equity associates

The total pay for a private equity associate, in addition to salary, may include extra compensations in the form of cash bonuses, commissions, tips, and profit sharing.

The bottom line

Finance is a good career path for those interested in financial management. It offers high salaries, interesting work, and the ability to rise to senior positions within an organization. However, the field is also highly competitive and requires skills and hard work to succeed.

Real estate investment trusts (REITs) are a particular kind of business that manages estate to generate income. The number of jobs available in the industry varies depending on the size and scope of the company. For example, a large REIT might have thousands of employees, while a smaller one might only have a few hundred. In this article, we will discuss what REITs are and what career opportunities can await you there.

What are real estate investment trusts?

A business that owns, manages, or finances income-producing real estate is known as a real estate investment trust. By law, REITs must distribute at least 90% of their taxable income to shareholders in the form of dividends. As a result, they have high dividend yields and tend to be less volatile than the overall stock market. REITs can be privately or publicly traded on major exchanges.

REITs can be broadly categorized into two groups: equity and mortgage. The first own and operate income-producing real estate, such as shopping centers, office buildings, apartments, and hotels. Mortgage REITs finance estate by originating and servicing loans. 

The U.S. Securities and Exchange Commission (SEC) defines three types of REITs:

• Publicly traded

These companies are registered with the SEC and trade like stocks on major exchanges. They must comply with strict SEC regulations designed to protect investors.

• Non-traded

These companies are not registered with the SEC and do not trade on major exchanges. They may be offered through private placements only to accredited investors.

• Hybrid

These companies combine aspects of both publicly traded and non-traded REITs.

How many real investment trusts are there?

There are several types of real estate investment trusts, but the two main categories are public and private. The first are traded on major exchanges, while the privates are not. As of December 31, 2017, there were 227 public REITs and 1,091 private ones in the United States.

What is the future for those who work for REITs?

The job outlook is favorable for those employed by real estate investment trusts. The branch is expected to grow at a rate of 5 percent between 2016 and 2026, which is faster than the average growth rate for all industries. It will result in the creation of about 33,700 new jobs.

How many job opportunities exist in REITs?

Real estate investment trusts provide a diverse range of employment opportunities. Some of the most common positions include analysts, as well as asset, portfolio, and property managers. Other include marketing and sales, accounting, finance, and administration.

Asset managers are responsible for the day-to-day management of holdings within a real estate investment trust. This includes reviewing financial statements, making investment decisions, and overseeing property maintenance.

Portfolio managers are answerable for managing the overall portfolio of investments. This includes creating and implementing strategies, monitoring performance, and reporting to the board of directors.

Analysts are responsible for researching potential investments and providing recommendations to assets and portfolio managers. This position may also involve some financial analysis to evaluate the viability of potential investments.

A property manager deals with the day-to-day operations of a property. This may include tasks such as rent collection, maintenance, and lease administration.

What are the best-paying jobs in REITs?

There are many different types of jobs available in real estate investment trusts, but some of the best-paying positions are in asset management and portfolio management.

Other well-paid jobs include development managers, who oversee new construction projects, and leasing managers, who negotiate with tenants.

REITs also offer many entry-level positions that can lead to high-paying jobs down the road. Many are about administration or customer service, but there are also opportunities in marketing, sales, and accounting. Salaries for entry-level positions vary depending on the size of the REIT, but most offer competitive wages and benefits.

Of course, some positions are paid significantly more than others. Here are a few of the highest-paying jobs in the industry:

1. Chief executive officer: The CEO is the highest-ranking position in any company. He is responsible for making major decisions that affect the direction of the business.
2. Chief financial officer: The company’s financial health is the CFO’s responsibility. He creates and oversees the budget, makes sure that bills are paid on time, and tracks the company’s financial performance.
3. Senior vice president: The representative of this profession is responsible for a specific area of the business, for instance, sales, marketing, or operations.
4. Director: He typically oversees a team of lower-level employees and ensures that it meets the business’s goals and objectives.
5. Associate: It is an entry-level position in real estate investment trusts. This employee provides support to others and learns about the industry while working on various projects.

Note! The listed positions typically require significant experience in the real estate industry, and salaries can vary widely depending on the size and scope of the REIT.

What are the requirements to work for REIT?

There are many different types of real estate investment trusts, each with its own set of requirements. However, most require employees to have at least a bachelor’s degree in real estate, finance, or a related field. Additionally, many firms prefer to hire people with experience working in the estate industry. Some specific skills that may be required for certain positions include financial analysis, asset management, and market research.

How much can I earn?

There is no one answer to this question, as it depends on the specific organization and your position within it. Generally speaking, REIT professionals can earn a significant amount of money. For example, according to Glassdoor, the average pay for analysts is $67,527 annually. Salaries can start from $40,000 per year, depending on experience and position. Many REITs offer bonuses and other incentives that can further increase financial potential.

So if you’re looking to earn a competitive salary and have a stable career in the real estate industry, working for a REIT may be the right option for you.

How many jobs are created each year in REITs?

Many jobs appear in real estate investment trusts yearly, but the exact number depends on their size and type. The largest one can have hundreds of employees, while the small one may only have a handful. Generally, there are four main types of positions within REIT: asset management, operations & maintenance, finance & accounting, and administration.

Picking a computer is essential for those who want to be successful traders. After skills and knowledge, it is the main technical tool for analyzing the market and earning income. If you are looking for a complete trading setup, then this article is for you. We will tell what computer is best for stock trading and what tech specs other than monitor size are important to pay attention to.

Types of trading computers

On the market, there are different types of computers suitable for stock trading, and it can be difficult to decide which is best. Below we will look at them to help you make a decision.

Desktop PCs

When choosing the best desktop computer for stock trading, you need to pay attention to the main pros and cons. Let’s get to know them better.

Pros:

• Desktop computers are typically more powerful than laptops or tablets.
• They have large monitors, which makes it easy to view financial data and charts.

Cons:

• Desktop PCs take up more space than other types and can be difficult to transport.
• They require a keyboard, mouse, and monitor, which incurs additional costs.

Laptops

Laptop or notebook computers have several advantages, such as:

• They are small and portable, making them easy to take with you wherever you go. Laptops are ideal for those traders who travel frequently or do not want to deal with the hassle of setting up a desktop PC.
• They have long battery lives, so you can use them for extended periods without having to worry about recharging.

The disadvantages of notebooks include the following:

• They are usually less powerful than desktop PCs and have smaller screens.
• Laptops can be more expensive than other types of computers.

What to look for in a trading computer?

The most important factor is speed. You need a computer that can handle real-time stock trading. That means it should have a fast processor and plenty of RAM.

Another important consideration is reliability. Your computer will be handling sensitive financial data, so you need to be sure it can be trusted. Look for models with a good reputation for reliability and security.

Finally, consider the software you plan to use for trading and make sure your computer can handle it. Keep in mind that some trading platforms are more resource-intensive than others.

What is the best computer for stock day trading?

There are a few things you should keep in mind when making your choice:

• First, you will want to make sure that the computer has enough processing power to handle the data-intensive tasks of stock trading. A good processor will significantly improve the speed and smoothness with which your trades are executed.
• Second, you will want to ensure that it has enough memory to store all of the data associated with your trades. A good rule of thumb is to get at least 4GB of RAM, although more is always better.
• Third, you will want to make sure that the computer has a fast internet connection. This is important for two reasons: so that you can quickly receive data about stock prices and so that you can execute trades without delays that could cause losses.
• Fourth, consider getting a computer with multiple monitors. This can be helpful if you like to have multiple windows open at the same time.
• Finally, it is important to choose a computer that fits your budget. There is no need to spend more than you can afford. However, remember that the right software is an important component of your trading success, so do not skimp too much, either.

Now that we’ve covered the basics, let’s take a look at the specific models you can buy.

Examples of good trading computers and notebooks

The best computers for stock trading are those that have wide monitors and high-performance GPUs, such as the NVIDIA GeForce GTX 1080 or 1070, to maximize speed and accuracy when executing trades. It can also be laptops with Windows 10 Pro or Enterprise Edition that offer enhanced security features for traders, including Secure Boot, Bitlocker encryption, and Threat Detection and Response (TDR) solutions.

Below are a few trading computers that you can buy boldly. If you want to find the best Apple computer for stock trading, be warned that the list does not include products from this company.

Dell Inspiron Gaming PC

The Dell Inspiron Gaming PC is one of the top PCs for traders because it has a USB 3.1 Type-C connector that lets transfer files and connect devices faster than ever before. The computer also features an intelligent thermal design and is less noisy than other similarly powered ones, making it suitable for total concentration when investing and trading.

HP EliteBook 840 G4 Notebook

The notebook is another great option for trading because it has a durable keyboard and multicore designed to improve performance. It also comes with Windows 10 Pro 64, which offers enhanced security features.

Lenovo ThinkPad T540p Ultrabook

It is one of the best laptop computers for stock trading as it has a durable magnesium alloy unibody that makes it very strong and lightweight. Additionally, this laptop comes with a fast 4th Generation Intel Core processor and an NVIDIA GeForce GT 730M graphics processing unit to make trading accurate and quick.

ASUS ROG Strix GL502VS

Republic of Gamers Strix GL502VS Laptop from Asus features a reinforced construction that makes it tough and durable. Additionally, it comes with a 2.8 GHz Intel Core i7-7700HQ Quad-Core processor and up to 16GB of DDR4 memory.

The bottom line

Trading is a great way to earn extra income, but it’s important to have the right tools for the job. Good software can help you reduce losses and get the most out of every trade. We hope that the recommendations from the article have helped you find an answer to the question of what is the best computer for stock trading.

 It’s an interesting time to argue about buying or renting. The U.S. Census Bureau shows that the national homeownership rate recorded in the first quarter of 2022 was 65.4%: about two-thirds of Americans owned homes. Over the last two years, it seems as if the entire last third of Americans have been racing to buy themselves homes. 

So is it better to rent or buy a house? Well, there’s no fixed answer. Let us go into what makes each choice special.

Renting a home vs. Owning a home: an overview

Buying a home is a vital part of the ideal American dream. However, buying or renting is a big decision that can drastically affect your financial health, lifestyle, and goals. The option you choose depends heavily on your lifestyle and financial situation. Both require regular income (so you can pay the bills and related charges) and do require some effort to maintain. But many differences make renting and owning a home different. 

Renting only comes with some of the responsibilities associated with owning a home, and you have more flexibility because you aren’t necessarily tied to your property. Owning your home can be a significant investment, but it comes with high costs upfront and in the long run.

However, owning a home is sometimes better than renting, and renting isn’t always as easy as it seems. Here, we outline some essential differences between renting and buying a home.

Renting a home

The biggest myth about renting is that you’re giving away money every month. This is not true. Of course, you need a place to live, and this will always cost you money in one way or another. While it’s true that you don’t use your monthly payments to build equity, remember that not all home ownership costs go toward building equity, either.

When you rent a place to live, you know exactly what your monthly living cost will be. This amount is listed on your lease, and you can plan your budget accordingly. In some cases, the landlord might also include other costs within this amount. These include utilities, security, and homeowner association fees (HOA) if you live in a condo. 

Unfortunately, as a renter, you can experience a rent increase each time your lease is renewed. These increases can be especially significant if you live in certain parts of the city with increasing values. This might not be the case if you live in an area with rent control measures, which limits the amount a homeowner can raise if needed.

Living on a rented property means you can move out at the end of your lease. However, it also means that you might have to move suddenly if the landlord decides to sell the property or repurpose it for whatever reason. Less dramatically, they might raise the rent to higher than you can afford.

Owning a home

Homeownership comes with material and mental benefits. Since the house is yours, you can customize every detail of its shape and design. You also get a sense of security and pride in ownership.

However, changing your mind about where you live can be expensive because real estate is an illiquid commodity. You may not be able to sell if necessary. And even if you do, you might not be able to sell it at the price you want, especially if the real estate market is low. Additionally, there are significant transaction costs associated with selling your property.

The additional costs of owning a home mean it is often higher than renting. Even if your mortgage payments are lower than the rent, there are some things you’ll need to spend money on as a homeowner that you wouldn’t normally pay as a renter: 

• property tax; 
• garbage collection (some landlords require tenants to pay for this); 
• water and sewer service (some landlords require tenants to pay this); 
• pest control; 
• pruning trees; 
• home insurance; 
• pool cleaner (if you have a pool); 
• flood insurance required by the lender (in some cases); 
• earthquake insurance (in some areas).

Almost all of your monthly payments in the first few years of a long-term mortgage will go to covering just the mortgage interest. For example, you’ll spend about $72,000 in interest on a $100,000 loan at 4% over 30 years. It can take up to 13 years before your payments begin to go toward repaying the principal balance of a 30-year mortgage. Of course, if you can itemize, you’ll get part of it back with a tax deduction. 

Let’s remember the repairs and maintenance costs, which can be expensive. You may end up with unexpected cracks in the roof. Replacing your home roof can cost you an additional $12,000, which your home insurance policy might not cover.

Key differences

It’s time to look at the main differences between owning and renting a house.

Property values

As mentioned above, home ownership is often discussed as a way to create prosperity. But like any other investment, some factors can positively or negatively affect your home’s value, including:

• economic issues;
• outdated interiors;
• maintenance;
• housing surpluses;
• exterior conditions (your unruly neighbor’s uncut front yard littered with old Christmas decorations can impact your home’s value too);
• environmental concerns, such as nearby landfills and hazardous waste sites.

Of course, these factors can affect renters too and help lower your rental costs. After all, lower property values and poor living conditions can make the landlord desperate for income, helping you get a slashed monthly price.

Tax benefits

Owners can benefit from certain tax benefits. Mortgage interest deductions can reduce out-of-pocket expenses at the beginning of the loan as long as they are itemized. 

Of course, you won’t benefit from any mortgage rate deductions if you’re a renter. However, remember that you can still use the standard deduction available to all taxpayers. The same goes for owners who don’t have sufficient deductions to itemize.

Repairs and maintenance

As mentioned above, ownership means that you are always responsible for the upkeep and maintenance of your place. This can be very expensive. To worsen it, renovation work does not increase the value of your home. You probably will not recover the costs of your renovations when you choose to sell the house.

If the community you live in has an HOA, this can relieve you of some of your homeowner’s responsibilities, usually costing you a few hundred dollars monthly. But beware of the headaches that membership can bring. If you rent a house, the landlord will be responsible for all repairs and maintenance, although this is completed slowly and to your satisfaction. 

The best investments you can make are simple lawn or exterior additions. Focus on the basics. The only renovation that comes close to paying off its value in full is repairing the garage door (according to Remodelling’s list).

Time сommitment

If you want to spend your evenings and weekends as leisure time, work long hours, or travel frequently, the commitment that comes with home ownership might be too much for you. There’s always a task or job you need to get done, whether it’s plumbing, replacing steel pipes, painting the house, or mowing the lawn.

Special сonsiderations

The final decision to rent or own depends on your financial situation. However, do take into account your comfort and your plan for the future. Ignore those who say owning a house is always more sensible in the long run or that renting wastes money. Also, ignore those who say purchasing is ideal if renting is more expensive than your monthly mortgage payment. Real estate prices and living conditions vary too much to make general statements like these.

Before you do anything, consider the risks and responsibilities involved, especially when buying a home. Getting a favorable mortgage usually requires a lot of financial strength. If house prices rise, those with mortgages can make significant gains. 

However, on the other hand, you can also lose money if prices fall. Keeping an eye on the Case-Shiller index is critical to avoiding this. If the prices are too high at the moment, renting for a few years may make more sense.

However, despite the risks, added costs, and other responsibilities, owning a home is the option many people prefer over renting. It provides a more permanent, stable space for a calm lifestyle. It is also the only way to achieve or design the specifics of the type of residence people want. Ultimately, the decision to rent or own is not just about money. It is also emotional. 

Is it better to rent or own a home?

There is no one-size-fits-all answer to whether renting or owning a home is better. The answer depends on your situation: your finances, lifestyle, and goals. You should consider the benefits and costs of each one based on your income, finances, and lifestyle.

Is renting cheaper than owning a home?

Renting a home can be a very straightforward cost. You know your recurring payment and can plan your finances according to it. On the other hand, if you like living lavishly, you might find that renting is cheaper than owning a home, even with the regular repairs and maintenance that come with buying a home.

Is homeownership a good investment?

Buying a home can be an excellent investment. You can create equity, but like any investment, the performance of your investment depends on many factors. Regarding housing, factors like location, maintenance, the economy, and environmental concerns affect the overall value. Additionally, the market is never static; things can change rapidly.

The bottom line

After working out the complete finances of owning a house, you might find that renting a place might be a more financially sound decision. The extra funds you’d save can be kept in a savings account or invested in stocks. But if it suits your lifestyle. Otherwise, buying a house will be the right decision for you.

The following article will answer whether investing in stocks is haram or halal. It will also go over the main rules of Islamic finance and discuss what stocks are haram and halal, and offer guidance on halal investment.

Main rules of Islamic finance

There is a set of rules that all Muslim traders must follow, including:

• Forbidden to invest in a company that earns many profits from haram practices like gambling, selling alcohol, insurance, weapons, pornography, etc.
• Avoid making any investments that pay interest. Fundamentally, any enterprise whose operations go against the fundamental principles of Islam is regarded as haram.
• Forbidden to invest in businesses whose haram revenue is more than 5% of the total revenue. Many also refer to this as the “5% rule”.
• Investing in the shares of companies with extremely high debt is forbidden.
• Muslims who trade must take a cut of the gains and losses and pay no interest.
• They must assess each firm’s investment activity in advance to determine whether its operations and financial reports are halal.
• Bonds and investments with an interest component are prohibited.
• Companies are considered haram if they have an average annual total debt-to-market cap ratio of more than 33%.
• Companies that, on average, over an entire year, have more than 45% of their assets in receivables are prohibited.

Remember that halal investments can vary significantly since Islamic law’s application to commercial operations necessitates many nuances. There are several standards as well. Moreover, avoiding haram commercial activity is not always achievable.

Is investing in stocks haram?

In most situations, purchasing stocks is not considered a haram practice. The majority of Islamic scholars deem investments in stocks as halal. However, there may be specific scenarios where certain stocks may be regarded as haram.

What stocks are halal?

Halal industries refer to industries that follow Islamic law. Here is a list of them:

• Real estate;
• Home goods and furniture;
• Transportation and shipping;
• Manufacturing;
• Tools;
• Furniture and home goods.

Therefore if the stock you choose lies within any of these industries, it is highly likely that they are halal.

What stocks are haram?

Companies within certain industries may be practicing against Islamic law. These companies may be regarded as haram to invest in. Here is a list of a few such industries:

• Tourism;
• Alcohol;
• Nightclubs and hotels;
• Pornography;
• Banks practicing “riba”, which means unjustified lending;
• Insurance companies.

Most Islamic scholars would see the industries mentioned above as haram or forbidden. Other industries, however, are slightly more complex and somewhat haram. For instance, a manufacturing business operating independently may follow halal principles but have an interest-based account supported by riba loans. This business would be categorized as mixed and can be challenging to classify. Generally speaking, many Muslims avoid these mixed-race businesses out of caution.

It’s crucial to avoid doing business with any organizations that engage in practices or acts that conflict with Islamic law.

What do the Islamic authorities say?

Islamic investment regulations begin at the Shariah Board — a team of Islamic scholars and experts who discover investment solutions and assess their compliance with Islamic law. The board will often exclude investment goods that make a substantial portion of their earnings from the sales of alcohol, pornography, gambling, military hardware, or pork.

According to a study on the connection between investing and Islam, Islamic law infuses all spheres of human life, including finance, economics, government, law, and politics, and its essential constituent parts, religious, social, and ethical aspects, including social justice and values. The rules for stock markets are already established in essence by Shariah, as Islam prescribes every single area of a believer’s private and public interests. 

It is the responsibility of trained jurists to extend these principles, draw pertinent judgments from them, and implement them to market-specific circumstances, just like in other fields of Shariah. Although investing in the stock market is permissible in Islam in theory, Shariah establishes some regulations and restrictions that help separate the conventional stock market from an Islamically compliant one.

Shorting stocks and Islam

Under Sharia law, short selling of shares is prohibited. The primary reason is that the short seller borrows the stock rather than owning it.

Halal investment guide

Here are a few tips that Muslim traders can follow to ensure they are conducting halal investments at all times:

• Always pay taxes and abide by the trade laws.
• Put your funds into the appropriate businesses that don’t promote gambling, make alcohol or manufacture cigarettes.
• Refrain from treating trading as a significant wager. Use less leverage, and follow risk management guidelines.

Following these rules will help you avoid haram in trading.

Halal investments and Forex

Foreign exchange investments are regarded as halal by Islamic law. However, the firms should follow halal stock trading principles to be deemed halal. For instance, Muslim forex traders will be prohibited from trading shares of companies involved in gambling or alcoholic beverages.

Since forex trading uses swap-free trading accounts, it is free of interest. Several brokers provide swap-free brokerage accounts that don’t impose or pay interest when open positions are held.

Is forex trading haram or halal?

In most cases, forex trading is regarded as halal. Forex trading has no interest component, and trades are often made in person. Moreover, trading in currencies and commodities does not violate Islamic principles.

What is an Islamic (swap-free) account?

Muslim investors can open an investing account that is swap-free and in thus accordance with Islamic law. There is a particular account for those who can’t use swaps due to religious beliefs. Swap-free accounts, primarily based on foreign currencies, don’t allow rollover interest for overnight holdings.

Islamic swap-free accounts comply with the exact trading requirements and service agreements as the other accounts a broker provides, except that they are swap-free. For contracts lasting over a day, these accounts do not charge interest and often have no additional fees. Moreover, the broker would not collect rollover charges for contracts that continue longer than a day.

What about CFD trading?

Forex might be seen as halal, but most Islamic scholars would regard conventional CFD trading as haram. CFD trading does not include product ownership. Instead, the trader must forecast a commodity’s value without holding stocks. In Islamic law, this would theoretically be deemed riba and forbidden. As it happens, CFD traders utilize stock value as leverage to generate returns, which is prohibited in Islam.

Yet there are several workarounds for this. If Muslim traders utilize swap-free accounts, they may be able to engage in halal CFD trading. These accounts are intended to stop users from receiving or dispensing any kind of riba.

Frequently Asked Questions (FAQs)

Consider a few more issues related to investment and trade in the Muslim world.

Is buying Bitcoin against the law?

Islamic scholars disagree on whether an investment in Bitcoins is permissible. Some contend that Bitcoins are not a form of money and should instead be viewed as speculative investments. In contrast, others assert that Bitcoin’s decentralized nature and underlying technology make it a legitimate form of capital.

Is investing in CFDs and FX regarded as halal?

Forex trading will be considered halal. Trading CFDs is generally considered haram, but the trades can be halal if the account holder registers swap-free accounts with a trusted broker. 

Is it challenging to comply with Sharia?

Generally speaking, stock investors solely investing in halal-certified companies and sectors are entirely secure. Achieving compliance is simple as long as the company or industry isn’t engaged in alcohol, pornography, gambling, interest, pork manufacturing, or insurance.

The bottom line 

Now that you know the distinction between halal and haram investments, you can start your trading journey. It is important to remember that you can’t engage in businesses that manufacture items prohibited by Islamic law. You must also avoid companies that earn most of their revenue from interest, which would be deemed riba. 

Trading involving forex and CFDs is authorized if the person has a unique Islamic swap-free account with a reputable brokerage. Investments that pay interest are prohibited. You can invest in anything you choose, excluding these factors. Lastly, if a business has a portion that is haram, you can balance out their support of that portion by giving the revenues made from that portion of the company to charity.

In the early 20th century, people in the workforce were often classified based on collar color, such as white-collar, blue-collar, pink-collar, etc. The color assigned didn’t mean they necessarily wore clothes of the color. Instead, the collar color could also be symbolic. So what are blue-collar and white-collar jobs? What is the difference between them? And are these terms still relevant in today’s world?

Blue-collar jobs vs. white-collar jobs

Blue-collar and white-collar jobs indicate two of the most popular types of worker classifications; both terms have different meanings. They are meant to evoke different images of the work associated with them and how well such workers are paid.

What does a blue-collar job mean?

The term blue-collar worker is usually used to refer to someone who performs manual labor and is paid either by the hour or on a project basis. They are workers who engage in physical manual labor, typically in the construction, agriculture, maintenance, manufacturing, or mining sectors. They are called so because workers of this occupation historically wore blue collared shirts while at work.

These workers may work outdoors, physically straining tasks, and/or with heavy machinery. They may be skilled or unskilled with any needed skills acquired on the job or at a trade school.

Some common examples of blue-collar jobs include electricians, welders, mechanics, and construction workers. Some jobs, such as power distributors or plant operators, can be more specialized.

The pay of blue-collar workers depends on their industry, and they are usually paid on an hourly basis, such as farm helpers or by the number of ‘pieces’ they manage to complete in a day, which is typical for these workers.

Note! The term “blue-collar jobs” translates in Hindi “कारखाने में शरीरिक श्रम करने वाले कर्मचारी”, meaning manual industrial work or workers.

What does a white-collar job mean?

On the other hand, white-collar workers are found doing desk jobs in administrative, clerical, or management roles. Generally, these people earn a monthly or annual salary.

The modern understanding of the word white collar is heavily influenced by American writer Upton Sinclair, who used the phrase interchangeably with administrative work, which is why the word is now used to refer to employees found in office settings.

As the name implies, they dress more professionally with suit-and-tie and white-collared shirts. In contrast to blue-collar workers, white-collar workers usually don’t have physically taxing jobs but rather involve working at a desk in a clerical, administrative, or management capacity. 

Some examples of white-collar jobs are:

• An administrative assistant in an office.
• A data entry clerk.
• The manager of a marketing department.

White-collar workers often receive annual salaries instead of hourly wages. The pay is usually a fixed amount based on the particular period rather than the specific number of hours worked.

Key differences between white-collar and blue-collar jobs

The simple terms “blue-collar” and “white-collar” jobs can convey much more about how the worker is perceived. They include these individuals’ education levels, appearances, and social classes. Remember that none of this is based on fact or has any formally defined boundaries. It’s about how people perceive individuals working in different industries.

Perception of industries

In general, white-collar jobs are sought more than blue-collar ones. It is because society often perceives office jobs as more respectable than those involving manual or physical labor. An office job is thought to be more desirable than a construction job because of the kind of work involved.

Developed countries’ infrastructure can be empowered enough to remove the need for physical labor to earn a wage. It can offer its working-class safe desk jobs that require the mental attention of a human rather than physical exertion that can be executed by a machine. For example, blue-collar jobs are more prevalent in India vs. white-collar jobs.

Education

The general idea is that blue-collar workers are lesser educated than white-collar workers. That’s because office work that requires mental work typically requires at least a post-secondary education. For instance, if a company is searching for accountants, it will hire people with at least an undergraduate degree in accounting.

In contrast, blue-collar workers require certain skills that can be learned on the job or through a short course at a trade school.

Attire

The entire basis for the two terms was based on the attire of the different kinds of workers. The label blue-collar originates from the typical appearance of a manual worker’s dressing. It would commonly include blue jeans, overalls, boilersuits, or gowns. Dark colors, such as navy blue, are used to help hide the dirt that may soil their clothes while they work. On the other hand, white-collar workers are related to white button-down shirts, suits, and ties worn by office workers.

Social classes

Another way that the two phrases are differentiated is the perception that white-collar workers make more money than blue-collar workers and belong to higher social classes. The idea is that white-collar workers will have a higher status because they probably earn more while being more educated. 

Blue-collar workers, in contrast, are believed to be lower on the social ladder because they carry out manual labor and are assumed not to be as educated. It is important to remember this is only sometimes the case, and these differences cannot be generalized. 

Special considerations

The number of blue-collar workers peaked during the Industrial Revolution when large numbers of individuals began moving from rural areas to areas surrounding factories ad industries in search of work. This migration was bolstered by the fact that farming had started to become industrialized, leading to a rise in unemployment. People thus began flocking to large cities where factories required labor to work on the production line and operate machinery. 

On the other hand, the term white-collar jobs vs. blue-collar jobs became more popular in the 20th century when technology started to decrease the physical labor needed.

Another thing people want to convey by saying someone works a blue-collar job is that their salary size is significantly lower than another person working a white-collar job. A blue-collar worker works for an hourly wage or is paid per item assembled or task completed. The lack of guarantee of available work on a blue-collar job means the worker is in constant worry, especially if they are there as a temporary filling. For such reasons, they might be part of a union to maintain the security of working hours and future employment.

In contrast, white-collar workers most probably obtain their job through a much more stringent hiring process and can be more difficult to fire due to employment contracts. If they do not receive a fixed salary, their income can be contingent on having a client base, such as lawyers and physicians practicing privately. Even in such a case, their position is quite stable since the work requires a specific set of skills.

With time, the line between these categories of workers is disappearing and becoming less relevant. As technology increases, even blue-collar jobs require an amount of education and technical skills. Workers such as electricians and cable installers can enjoy higher pay due to this. 

Interestingly, some white-collar jobs are quite saturated, leading to white-collar employees not earning much more than their counterparts. This decreasing pay gap is because of the high competitiveness for positions which allows employers to offer less or employees taking up jobs for which they are significantly overqualified.

FAQs

Consider the most popular questions that will help fix what white-collar and blue-collar jobs are.

What is the difference between blue-collar and white-collar jobs?

In summary, blue-collar jobs involve a greater degree of physically stressful or manual labor. These workers include mechanics, farmers, construction workers, power plant operators, and electricians. On the other hand, white-collar workers typically work in an office in clerical, management, and administrative roles. 

Blue-collar workers are paid wages based on the number of hours they put in, while their white-collar counterparts earn fixed annual salaries. Other perceived differences also come into play, including social classes, educational backgrounds, and appearances. However, these aren’t necessarily true or valid.

Is blue-collar a derogatory term?

It is sometimes used to be derogatory. Even though there is nothing wrong with having a blue-collar job, labeling someone as blue-collar has been used as a way to put someone down or offend them. This stems from society’s perception that blue-collar individuals do not possess the same earning power or education as white-collar workers, who are thought to be more professional. Additionally, there is the assumption that blue-collar workers have a lower social status. Fortunately, the lines between the two are fading thanks to technological and societal developments, but there is still some negativity associated with the word.

Why are collar colors used to define jobs?

In the 20th century, people began to classify the workforce by the type of clothing that the workers wore. For example, workers of blue-collar jobs typically wore blue (denim) shirts and clothing due to the strength of its material and the fact that it could handle the oil, dirt, and grime involved with certain jobs such as mechanic or factory worker. White-collar workers were called such because they wore white shirts to their job.

Are there other collar colors?

The list of collar job types does not end with white-collar and blue-collar jobs. A gold collar is meant to describe white-collar workers with highly specialized skills that are in high demand. Such jobs include doctors, pilots, engineers, and lawyers.

A red collar was meant to describe someone who works in the government.

The word pink-collar is an outdated term meant to describe sectors previously dominated by women, such as nursing and secretarial work.

The most recent type of collar color is the green collar, which refers to people working in the environmental sector.

The bottom line

In the past, the kind of attire worn at work was used to differentiate between types of workers. Blue-collar workers wore blue-colored denim clothing to endure and hide the dirt and grime from their work environment and their work with their hands. In comparison, white-collar workers wore suits and white shirts. 

While these differences still exist to some extent, the lines between the two categories gradually fade. Blue-collar jobs were once considered less desirable since the nature of the work and the pay involved were less appealing than white-collar jobs, but people are now beginning to change how they think. As such, being a blue-collar worker today doesn’t mean you’re less than someone working in an office.

Many businesses survive on the excellent entrepreneurship skills of their owners. Some students also aspire to become great businessmen but have many questions about the entrepreneurship skills needed in the 21st century. They no longer need to watch other notes, PDFs, or 9th or 10th-class MCQ tests to learn entrepreneurship skills; just find the questions and answers below.

What are entrepreneurship skills and their importance?

To be an owner of a successful business, you must be great at various aspects of managing it, and the skills needed to do that are called entrepreneurship skills. They refer to a set of characteristics that help you start a business or grow an existing one, successfully solving different problems along the way. The development of these entrepreneurship skills is vital to how successful you will be in your business venture.

These characteristics are described in great detail below, and the development of these entrepreneurship skills is vital to how successful you will be in your business venture.

Note! Entrepreneurship skills help businesses grow and compete, develop and innovate.

What skills are required for entrepreneurship?

The role and importance of entrepreneurship skills are not taught by reading a PDF file or successfully passing an MCQ test for 9th and 10th classes. They can be obtained by learning from the experience of other entrepreneurs.

Here are the most vital entrepreneurship qualities and skills.

Creative thinking

Creativity is the most vital skill, as having a creative mind can lead you to figure out the solution to a problem. Once you find an innovative solution, you must package it, market it, and sell it to the public. However, if you do not have an innovative product or service, you will face tons of competition in any sector of the economy. Thus, to remove your competitors from the game, entrepreneurs need to be creative.

This entrepreneurship skill helps in problem-solving also. If you have creative rules around the workplace, your employees might be encouraged to be creative and solve their tasks more efficiently and creatively.

Critical thinking

Critical thinking involves breaking down your thoughts or problems into various perspectives. Once you start considering the views of your employees, sellers, customers, investors, and board of directors, you can make decisions that make everyone happy. So, this skill is more vital than making the right decisions; it is about making the right decisions, at the right time, with the proper reasoning behind them.

Critical thinking can also be applied to business data and trends to understand which markets your product can do well in and where it falters.

Effective communication

Communication is vital when running a business. You would have to be available on so many different channels with so many people that it will most likely take up your entire day. Within this chain of communication, it is essential to remember that you effectively communicate what you are thinking. Otherwise, your thought can easily be lost in the chain, and the result can be opposite and harmful to your business.

You would have to effectively communicate upwards in the chain (investors, board of directors, customers) and downwards (suppliers, manufacturers, employees, etc.)

Financial knowledge

With financial knowledge, you may drive the business down rather than upwards. Finances are key to a healthy business. You must have this skill to make smart financial decisions that cause your profits to grow and your losses to reduce over time. It is better to invest in research and development once you have a steady flow of revenue.

Smart business management

Profits aren’t the end goal and shouldn’t be. Managing a business that will be there even after you won’t be, is the best goal any sustainable and smartly managed business should have. Make sure to keep your employees happy by making decisions that impact their and your business’s future for the better.

Valiant

Entrepreneurship is risky, and a lot is riding on your decisions. It isn’t a guaranteed income field, and many other people’s incomes also depend on you. So, to make risky decisions, an entrepreneur must be valiant. All other skills also tie in with this quality.

Stress management

Stress is often considered a by-product of being an entrepreneur, as you multitask. The mind and the body are constantly being pulled to different problems one by one, and the stress builds up. As an entrepreneur, you must be mindful of how much stress you take on. Always try to manage it by balancing out your work life with your time. It is perhaps the most underrated skill, as everyone seems to take stress as a by-product. But by managing it, you can do more and be more productive.

Time management

Another thing that might be holding your productivity back is time. You will often find days wasted without achieving anything because you were so busy dealing with the tiny details. Try to manage time by adhering to a daily schedule. Put in tasks that you feel are very important at the start of the week, and then put in relatively less important tasks at the beginning of every day. This way, your calendar will be managed perfectly.

Flexibility

Being flexible to various situations, options, and decisions that are not in your control is a handy skill. An entrepreneur is swamped with tasks, and multitasking is a recurring theme. Thus, to deal with this productively, you must be flexible in dealing with employees, making other decisions, and learning about your business.

Technical skills

Having the know-how to continue innovating in your industry is essential. Thus, an entrepreneur is well-versed in various technical skills, whereas an ordinary employee is only well-versed in one or maybe two technical skills. Your attitude towards observing information, learning new stuff, and applying yourself must be very high. This way, you and your business will survive for a long time.

Note! No need to choose which of the entrepreneurship skills is the most important. They bring results by working together.

The bottom line

So, you are quite familiar with what entrepreneurship is and its skills. However, knowing about these leadership skills in entrepreneurship and learning/applying them to your business is quite different. It differs from answering MCQs included on the 9th-class entrepreneurship skills test. It is essential not only to study the basics, for example, in the Management & Entrepreneurship and Professional Skills Council (MEPSC), but also to get the experience of other entrepreneurs.

Stock market trading is not for the faint-hearted but can be quite rewarding. The great thing for aspiring traders is that they have a vast resource of trading quotes from experts in the field. 

Trading quotes are brilliant one-liners that are often repeated around the trading circle. They sound sharp and on point, so traders love to use them. But what did the authors mean when they wrote these words of trading wisdom?

These trading quotes inspire you and help you develop practical trading solutions. They can even get you out of a sticky situation!

That’s only possible if you have a deeper understanding of the quotes, and that’s what this article is all about. Below you’ll find the 15 best trading quotes of all time and what each quote means. 

Let’s start with a famous quote attributed to none other than the father of modern macroeconomics.

#1 – John Maynard Keynes: “Markets can remain irrational longer than you can remain solvent”

It means that markets change constantly. Asset price directions can shift. They may initially show strong signals that encourage you to follow the trend but suddenly change direction, going against your trading strategy. 

If you ever find yourself unable to stop, adding more to your losses because you can’t give up your initial trading plan, always remember what Keynes said. 

Even the most perfect market setup can fail. Market optimism is good, but you must learn to accept when you’re wrong. Losing is part of trading, but learning to limit your losses is the key.

Let’s explore market changes with the next quote from an American investor and trading guru.

#2 – Michael Carr: “Don’t worry about what the markets are going to do; worry about what you will do in response to the markets”

Market changes are a given, so don’t waste your time and energy worrying about when or how the prices will shift because they will!

Instead, you should focus your resources on things you can control and use to mitigate (or even gain from) the effects of a choppy market. In other words, you should have plans A, B, and C to fall back on in the worst market conditions.

To get ahead in trading, you must be prepared for various situations. Don’t get fixed on one scenario. It helps to predetermine some signs that you should look for before executing a trade, such as:

• Under what conditions will you start buying or selling? 
• How long should you hold? 
• What are your predetermined stop-loss and take-profit levels?  
• What are the conditions that will make you cancel your trading idea? 
• What is your exit strategy? 

If you have pre-set the factors that will trigger future trading decisions, you’ll learn to act less impulsively and become a more objective trader in the long run.

The next quote comes from one of the most elite investors, widely known for his massive one-way market bets.

#3 – George Soros: “It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong”

It is human nature to always want to be right. It will not happen in trading, so deal with it. Losing is as much a part of trading as profit. Your predictions can be either right or wrong, and there’s no other way around it. You can be right some of the time and wrong the other times. Your objective should always be maximizing your gains when you are right and minimizing your losses when you are wrong. The key is to keep a profitable position open long enough to maximize profit, but don’t delay closing a trade for a loss when you recognize a losing position. 

It takes time to develop the gut feel and confidence that trading requires, but with time and experience, you will. Trading is a balancing act that you can master by sharpening your skills and tools. Constantly assess your profit/loss ratio, refine your trade enter/exit strategies, hone that gut feel, and learn to use it.

It’s one thing to cut your losses by promptly closing the trade for a loss; it’s another to lose big time by selling profitable positions too soon. 

Next, let us share with you a painful trading subject – losing. The following two quotes come from two market wizards – one a stockbroker and the other a stock trader; both are professionals.   

#4 – William O’Neil: “Letting losses run is the most serious mistake made by most investors”

We’ve already made this point, so why should we hammer it into this article? Simple – it bears repeating because traders often forget it, don’t take it seriously, or refuse to accept it.

Profit is about gaining more than you lose – a basic principle. Yet the temptation is always there to delay closing a losing trade slightly longer. If you lose sight of the bigger picture and keep holding a losing trading position, it will eat up whatever you’ve gained so far.

#5 – Marty Schwartz: “Learn to take losses. The most important thing in making money is not letting your losses get out of hand”

These trading giants know it firsthand. Even the most experienced traders will only have a profit rate of 45% to 60%. That’s so low, and don’t be surprised! It means that approximately half of your trades will be losses.

What’s crucial is to cut losses short and stop losing more money. 

If you can’t take losses, it’s easy to get emotional and do revenge trading. That contradicts sound trading principles!

Before discussing this subject further, perhaps it’s time to introspect. Ask yourself whether you have a problem with loss-taking. Honestly!

Is it difficult for you to deal with a loss? Do you get emotional and tend to go straight away for the following trading setup hoping to recover a previous loss? That’s the worst thing you can do because it increases your risk, and you lose objectivity. 

Here’s what you can do instead: After a loss, make it a point to stop looking at your charts. Stand up, clear your mind, call it a day, and resume afresh the following day. 

That’s just one way of dealing with your emotions after a loss. We are sure you’ll find other (better) methods, and you should because losing is inherent to trading.

#6 – Peter Lynch: “In this business, if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten”

Traders make between 45% – 60%, and investor/philanthropist Peter Lynch says that if you’re good, you get profit 60% of the time. So, it would be best if you were realistic in setting your goals. If you’re new to trading, it’s good to aim for a profit of 50% and a positive reward-to-risk ratio of 2:1. 

Ensure that your trading plan outlines a potential profit of at least twice the amount of the possible loss. This way, it’s easier to realize a profit.

Don’t set your sights on earning 80% of the time because you’ll only get your hopes dashed. You cannot avoid losses, which will occur almost as often as profits.

The sooner you accept that, the less emotional and more objective you become as a trader.

#7 – Paul Tudor Jones: “Where you want to be is always in control, never wishing, always trading, and always first and foremost protecting yourself”

This trading quote is a reiteration of the importance of a sound trading plan. It must spell out the possibilities that will trigger trading entries and exits in uncertain terms.

There should be no room for subjective “I wish”, “what if”, or “if only” lines of thinking. It would be best to have clear trading rules outlining your predetermined moves to lessen losses and maximize profits.    

Jones tells you to “protect yourself”, reminding you that your plan should include stop-loss, money management, and other safeguards.

#8 – Nicolas Darvas: “I believe in analysis, not forecasting”

Trading is based on technical analysis; otherwise, it will just be another form of gambling. Traders must be objective, working with a trading plan and constantly monitoring market movements. They analyze chart patterns and market trends, looking for specific signals on which they base their next move and trading strategies.  

As opposed to forecasting, trading is objective and technical. Yet, forecasting is what some traders tend to do. They hold onto their trade idea no matter what, regardless of data and market signals, which is foolhardy.

For amateur traders, always start right – avoid the forecasting approach.

#9 – Jesse Livermore: “Money is made by sitting, not trading”

By “sitting”, Livermore doesn’t mean “doing nothing” but rather “waiting” for the right conditions to arise before buying or selling. It underscores the importance of monitoring market shifts and looking for signals as you wait.

Trading is a test of your patience and the confidence you have in your plan. When you can sit and wait calmly, your entry or exit strategies are in place. 

His reminders are clear. Don’t jump into the market too soon; stick to your trading rules, and wait for the right trade setups before moving. 

#10 – Jack Schwager: “The hard work in trading comes in the preparation. The actual process of trading, however, should be effortless”

Trader and author of several books, including The Market Wizards, Jack Schwager, emphasizes the importance of trading preparation. Trading is the application of all the pre-set rules, trading plans, testing and refining of strategies, and everything else you have prepared ahead of time. That’s all the hard work!

What’s left is for you to sit and watch your charts and execute your pre-planned trade actions based on anticipated potential conditions. It’s like a play where the stage, props, and everything are prepared, and all the actors follow the script.

#11 – Steve Clark: “Do more of what works and less of what doesn’t”

This quote seems like a no-brainer, but surprisingly, traders often fail because they do more of what doesn’t work and less of what works. What are you good at in trading? Go over your trading journal and evaluate your strengths. Are you more successful at executing well-planned long-term positions? Then do more of those!

What trade size are you comfortable with? Then trade within those bounds. Clark also said that you should only trade within your emotional capacity. Your exposure shouldn’t be so significant that you’re overcome by fear. Fear clouds judgment, and that is not good for trading. 

This quote implies that you should evaluate your record of past trade profits and losses. Analyze your trading patterns and identify gaining and losing trades. Then do more of your successful trades because they will more likely work!

The following quote is related to what Steve Clark said about trading only within your emotional capacity.

#12 – Joe Vidich: “Limit your size in any position so that fear does not become the prevailing instinct guiding your judgment”

Emotions, including those of fear and revenge, are detrimental to trading. Deciding out of anxiety due to a trade size too large or a risk too high can endanger your position.

A word of advice if you’re new to trading: Don’t risk more than 1 percent of your total trading capital on a single trade. Try lower if you still struggle or are stressed trading 1%. The key is finding a level where you can confidently trade without fear, anger, desperation, greed, or impulsiveness.

The last three quotes in this list are directed toward a trader’s character, composure, and personal tendencies.

#13 – Mark Douglas: “If you can learn to create a state of mind unaffected by the market’s behavior, the struggle will cease to exist”

Your trading mindset should be mind over matter. Always be prepared for market price changes, and don’t waste your time getting agitated when the wind goes against you.

As Michael Carr said: “Don’t worry about what the markets are going to do” because those are beyond your control. If the prices go against you, there’s no way you can turn things around – regardless of how much you stress over it. 

The good thing is that you have a trade plan and strategies to get you out of a sticky situation. In other words, you can manage your trade without getting emotional.

If you’re feeling overwhelmed, giving yourself a break is okay. Come back another day with a fresh eye on the situation.

#14 – Yvan Byeajee: “Trading doesn’t just reveal your character, it also builds it if you stay in the game long enough”

Byeajee is not only a seasoned trader but also a trading psychology consultant. On his website, he puts emphasis not only on trading principles that ensure consistent profits but also on improving the person. 

And why not? As Dr. Alexander Elder said: “The trader is the weakest link in any trading system”, so traders must seek self-improvement. 

For starters, you can work on the following aspects:  

• Practice mindfulness exercises to improve clarity of mind.
• Learn the art of waiting to teach yourself to be more patient and less impulsive. 
• Improve self-awareness to know your emotional triggers and develop self-control.
• Develop a strong work ethic that will make you more confident in what you do.

With time and experience, you will slowly replace old habits and find yourself a stronger character than when you first took a deep dive into trading.

#15 – Anthony Robbins: “It’s not what we do occasionally that shapes our lives. It’s what we do consistently”

This last quote from business strategist and author Anthony Robbins neatly ties up many previous quotes. It applies to many aspects of life and business, including trading. This quote is interesting and valuable because there are two ways to appreciate it.

First, if you want to achieve something in life or your career, ensure that all your actions and efforts are consistently pointed toward that direction. 

You’ll go nowhere if you take one giant step toward your goal but backslide most of the time. It’s your consistent action that will give you results.

Second, you can also read this quote another way. Don’t be so hard on yourself as you work towards your big dream. It’s OK to relax if you remain driven and focused on your goals. Sometimes you want to take it slow or take a breather – that’s fine! Take a day off or two but get back on track on day 3.   

Say, you’ve been profitable trades for weeks on end, but one day you give in to an impulsive decision and lose. Your tendency might be to feel frustrated, and that’s normal, but don’t beat yourself up! 

It is a setback that can teach you something, so learn from it but don’t dwell on it. Again, not what you do occasionally will make or break your career.

The Bottom Line

People love to pass around trading quotes and share them on social media because these one-liners are inspiring and valuable when you need guidance. That’s the reason they are so popular. 

However, trading quotes can sometimes be taken out of context and lose meaning. So next time you read a quote, look it up, find the author’s exact words, and carefully internalize its deeper meaning.   

I hope you enjoyed and learned from our top 15 trading quotes – wishing you fruitful trades!