WHAT KIND OF TRADER ARE YOU?

By Kathleen Brooks, Brian Dolan

The kind of trader you are will affect — or should affect — your trading strategy. It helps to know your trader type so you can trade effectively and in a way that feels right for you. To determine your trader type, take the following quiz.

THE QUIZ

Which statement best describes you when you’re competing?

A. I’m aggressive, outgoing, and confident in my abilities whether I win or lose.

B. I like to be perceived as wise and thoughtful, and I accept loss as part of the process.

C. I’m calculating, and winning is extremely important to me.

1. In your free time, what do you most enjoy doing?

   A. Action-packed activities with high-adrenaline energy and risk

   B. Activities planned in advance, and ideally ones that further my knowledge or experience in some way

   C. A wide variety of fun activities, depending on what opportunities emerge that day

2. If you were given $250, which of the following would you do with the money?

   A. Gamble it on a good bet and try to win big.

   B. Spend it with a night on the town, shopping, and dinner.

   C. Save and invest the money for a rainy day.

3. Your favorite sports team is significantly behind at the halfway point of the game, what should the coach do?

   A. Trust the team’s preparation and original game plan, and the tide will turn in their favor in the second half.

   B. Draw up a new strategy to take advantage of a weakness observed in the first half.

   C. Take a risk by trashing the old strategy and shifting to a more aggressive attack mode to get back in the game.

4. At work, if you completed a project well ahead of your scheduled deadline, what would you do with the extra free time?

   A. Submit the project and ask for another.

   B. Pore over the project even further to dissect it, making subtle tweaks, but keeping the project much the same; then turn it in on time.

   C. Do more research to see if you can add on to the project even further.

5. In a party setting, which of the following descriptions is most like you?

   A. Energetic, rapidly flitting between conversations if you get bored

   B. Generally sitting with two or three close acquaintances, learning about what’s new with them

   C. The center of attention, happy as long as you’re surrounded by peers

6. Which of the following workplace careers would you most like?

   A. A long, successful career as an average employee who does a good job, gets paid well, and retires comfortably, while never rocking the boat or ascending to a position of power.

   B. A successful worker who often rises to management positions but is labeled as a “job jumper” who has many stints at a variety of business ventures.

   C. A short stint as a CEO of a well-known company that was initially successful and enriching, but eventually succumbed to outsized expectations, followed by an average career thereafter

7. How do you typically trade an event like nonfarm payrolls (NFP) in the United States?

   A. Form an opinion, place your trade, and hang on!

   B. Wait for the overzealous reactions directly after the announcement and trade the aftermath.

   C. Trade NFP? Are you nuts

    Be on the lookout for the RESULTS of this quiz in my next Blog...!!!
8. http://www.dummies.com/personal-finance/investing/currency-day-trading/what-kind-of-trader-are-you/
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5 ways to create a passive income stream - 5/5

Dividend-yielding stocks - BARBARA DIGGS

Shareholders of dividend-yielding stocks receive a payment at regular intervals from the company’s profits or reserves. Since the income received from the stocks isn’t related to any activity other than the initial financial investment, owning dividend-yielding stocks can be one of the most passive forms of making money.

Henrik5000/Getty Images

The tricky part, of course, is choosing the right stocks. Graves warns that too many novices jump into the market without thoroughly investigating the company issuing the stock. “You’ve got to investigate each company’s website and be comfortable with their financial statements,” Graves says. “You should spend two to three weeks investigating each company.”

That said, there are ways to invest in dividend-yielding stocks without spending too much of an initial time investment. Graves advises going with exchange-traded funds, or ETFs. ETFs are investment funds that hold assets such as stocks, commodities and bonds, but they trade like stocks.

“ETFs are an ideal choice for novices because they are easy to understand, highly liquid, inexpensive and have far better potential returns because of far lower costs than mutual funds,” Graves says.

https://www.bankrate.com/investing/realities-behind-creating-passive-income/#slide=6

Be on the Lookout for my next Blog where I will reveal way more about Trading the Global Markets!

What if you can find a Done 4 U System that can trade the Markets on Your behalf?

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5 ways to create a passive income stream - 4/5

Peer-to-peer lending - BARBARA DIGGS

A peer-to-peer loan is a personal loan made between you and a borrower, facilitated through a third-party intermediary such as Prosper.com or LendingClub.com. As a lender, you earn income via interest payments made on the loans. But because the loan is unsecured, you face the risk of default.

To cut that risk, you need to do two things:

1. Diversify your lending portfolio by investing smaller amounts over multiple loans (Prosper.com recommends more than 100).
2. Analyze the historical data on the borrowers to make the right picks.

The time it takes to master the metrics isn’t the only reason P2P lending isn’t entirely passive. Because you’re investing in multiple loans, you need to pay close attention to payments received. Whatever you make in interest should be reinvested if you want to accumulate interest.

LOAN SEARCH: If you’re not ready to invest, you can borrow from a peer-to-peer lender – check out personal loan rates with LoanMatch.

Be on the Lookout for my next Blog for more Passive Income Strategies!!

https://www.bankrate.com/investing/realities-behind-creating-passive-income/#slide=5

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5 ways to create a passive income stream - 3/5

Affiliate marketing - BARBARA DIGGS

With affiliate marketing, website owners or bloggers promote a third party’s product by including a link to the product on their site. When a visitor clicks on the link and makes a purchase from the third party, the site owner earns a commission.

Affiliate marketing is considered passive because, in theory, you can earn money just by adding the link to your site. In reality, you won’t earn anything if you can’t attract readers to your site, click on the link and buy something. So if you’re just starting out, you’ll have spend time creating content and building traffic.

Be on the lookout for my next Blog for more Passive Income Strategies!!!

https://www.bankrate.com/investing/realities-behind-creating-passive-income/#slide=4

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5 ways to create a passive income stream - 2/5

Rental income - BARBARA DIGGS

Investing in rental properties is an effective way to earn passive income. Nonetheless, it often requires more work than people expect. If you don’t spend the time learning how to make it a profitable venture, you could lose your investment and then some, says John Graves, author of “The 7% Solution: You Can Afford a Comfortable Retirement.”

To earn passive income from rental property, Graves says you must determine three things:

1. The return on investment you want to have.
2. The property’s costs and expenses.
3. The financial risks of owning the property.

For example, if your goal is to earn $10,000 a year in rental income and the property requires a $2,000 monthly mortgage plus an additional $300 a month in taxes and other expenses, you’d have to charge around $3,150 in rent monthly to reach your goal.

Now, the question becomes one of risk: Is there a market for your property? Might you get a deadbeat tenant? Will your tenant damage the property? All of these could result in a sizable dent in your passive income.

A personal loan can be used to improve a rental income property, check out rates today.

Be on the lookout for my next Blog for more Passive Income Strategies!!!

https://www.bankrate.com/investing/realities-behind-creating-passive-income/#slide=3

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5 ways to create a passive income stream - 1/5

Selling information products - BARBARA DIGGS

One popular strategy for passive income is establishing some kind of information product — an e-book, audio course, DVD — then kicking back while cash from the sales of these products rolls in.

While information products can eventually yield an excellent income stream, Tresidder notes that it’s hardly a passive activity.

“It takes a massive amount of effort to create the product,” he says. “And to make good money from it, it has to be great. There’s no room for trash out there.”

Tresidder says to find financial success, you have to build a strong platform, market your products and plan for serialization.

“One product is not a business unless you get really lucky,” Tresidder says. “The best way to sell an existing product is to create more excellent products.” But once you master the business model, he adds, you can generate a good income stream.

Be on the lookout for my next Blog for more Passive Income Strategies!!!

https://www.bankrate.com/investing/realities-behind-creating-passive-income/#slide=2

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5 ways to create a passive income stream - Introduction

Creating passive income, not a passive activity - BARBARA DIGGS

The idea of building wealth through passive income has understandable appeal, especially if you’re worried about being able to save enough from your work earnings to meet your retirement goals.

For example, to generate $1,000 a month in retirement income from a portfolio, you’d have to amass about $250,000, assuming a 5 percent withdrawal rate. Better to create a passive income stream to help you reach this goal.

What is passive income?

Passive income includes regular earnings from a source other than an employer or contractor. The IRS says passive income can come from just 2 sources: rental income or a business in which an individual does not actively participate. Examples include book royalties and dividend-paying stocks.

It’s easy to think as passive income as money you earn while sitting on a beach sipping mojitos, but there is lots of work involved, says financial coach and expert Todd Tresidder.

“Many people think that passive income is about getting something for nothing,” Tresidder says. “It has a ‘get rich quick’ appeal … but in the end, it still involves work. You just give the work upfront.”

If you’re thinking about creating a passive income stream, check out these five strategies and what it takes to be successful with them.

Be on the lookout for my next Blog for more Passive Income Strategies!!!

https://www.bankrate.com/investing/realities-behind-creating-passive-income/#slide=1

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