Tuesday, July 8, 2014
Monday, February 24, 2014
Let us think developmental
Think simply about creating an effective road system in a country. This depends on effective policies (to design the road system, for example, and to hire the companies to implement it). This depends on adequate public finance; to be able to raise the needed funds, out of the budget, or bond issues, or public-private partnerships. This depends on honesty. Many road projects never produce actual roads because of the high burden of corruption. And this requires decent geopolitics. The country must be at peace. It perhaps needs one or more international partners to get the job done. Obviously roads provide just one example of how good governance combines policy, politics, finance, and foreign affairs. One can say the same about education, health care, and countless other sectors of the economy.
China, one of the fastest growing economies, has excelled in developing the capacity of government at all levels to undertake large-scale infrastructure investments. Rapid inter-city rail now provides a tremendous national transport system. Major cities have urban metro systems. Mass electrification has enabled rapid industrialization. China is an example where the government has played an essential role in enabling very rapid growth. On the other side, there are many poor countries where governments have not yet had the capacity, focus, or interest to undertake the large-scale infrastructure investments needed for effective development.
Wednesday, July 31, 2013
Thursday, November 19, 2009
A message from a Guru...Brian Tracy
Ensuring Success at Work
By Brian Tracy
The very best times you will ever have at any job or company are when you are getting along wonderfully well with your boss. On the other hand, the very worst times you will ever have at any job are when you are not getting along well with your boss. And the major reason why employees have problems with their bosses is because of a lack of clarity about what exactly is to be done, and to what standard, and in what order of priority.
It is important to your boss that you are making the appropriate decisions for the company and completing your job. In order to make decisions effectively, you must know the three types of decisions.
Three Types of Decisions
There are three types of decisions in any organization or family. When decisions involve other people, it is important that everyone is clear about what kind of a decision is under consideration.
Command Decisions
These decisions have to be made by the boss or the person in charge. These decisions are so important that one person is solely responsible for making up his mind about what is to be done.
Hiring a key staff member, firing a poor performer, making an important investment decision, or even negotiating a new loan with the bank are all command decisions. They must be made by the person in charge.
Consultative Decisions
This is a decision where you, or the boss, ask for advice and take input from other people. You combine the opinions, ideas, and inputs of others, together with your own, and make a decision. Even though it invites the advice and participation of others, a consultative decision is not made based on that advice.
You may be thinking of hiring a new person, assigning someone a particular task, spending a certain amount of money on a business activity, or embarking on a new sales or marketing campaign. If you are the boss, you can ask for advice from everyone before you finally close the door and make your final decision.
Consensus Decisions
The third type of decision is one that is made on the basis of consensus. This is a democratic decision where everyone gets involved, discusses the pros and cons, and then agrees on what is to be done.
Sometimes, everyone is in agreement, and sometimes the decision is made by a democratic vote, where the majority rules. Once the decision has been made, everyone commits to making the decision successful, however they may have voted during the discussion phase.
Action Exercise
Practice participative management with your staff, hold weekly staff meetings and invite everyone to participate and ask questions.
By Brian Tracy
The very best times you will ever have at any job or company are when you are getting along wonderfully well with your boss. On the other hand, the very worst times you will ever have at any job are when you are not getting along well with your boss. And the major reason why employees have problems with their bosses is because of a lack of clarity about what exactly is to be done, and to what standard, and in what order of priority.
It is important to your boss that you are making the appropriate decisions for the company and completing your job. In order to make decisions effectively, you must know the three types of decisions.
Three Types of Decisions
There are three types of decisions in any organization or family. When decisions involve other people, it is important that everyone is clear about what kind of a decision is under consideration.
Command Decisions
These decisions have to be made by the boss or the person in charge. These decisions are so important that one person is solely responsible for making up his mind about what is to be done.
Hiring a key staff member, firing a poor performer, making an important investment decision, or even negotiating a new loan with the bank are all command decisions. They must be made by the person in charge.
Consultative Decisions
This is a decision where you, or the boss, ask for advice and take input from other people. You combine the opinions, ideas, and inputs of others, together with your own, and make a decision. Even though it invites the advice and participation of others, a consultative decision is not made based on that advice.
You may be thinking of hiring a new person, assigning someone a particular task, spending a certain amount of money on a business activity, or embarking on a new sales or marketing campaign. If you are the boss, you can ask for advice from everyone before you finally close the door and make your final decision.
Consensus Decisions
The third type of decision is one that is made on the basis of consensus. This is a democratic decision where everyone gets involved, discusses the pros and cons, and then agrees on what is to be done.
Sometimes, everyone is in agreement, and sometimes the decision is made by a democratic vote, where the majority rules. Once the decision has been made, everyone commits to making the decision successful, however they may have voted during the discussion phase.
Action Exercise
Practice participative management with your staff, hold weekly staff meetings and invite everyone to participate and ask questions.
Friday, November 13, 2009
Point of View!!
Failure Is Never Final
"As a father has compassion on his children, so the LORD has compassion on those who fear him; for he knows how we are formed, he remembers that we are dust."1
Yesterday—or any other day—may have been the final day of your divorce, the day you were rejected, or the day you lost or buried a loved one; but as difficult as it seems right now, and as extremely sad as it is, in time it can become a day of new beginnings. Be gentle with yourself but do begin the grieving process as soon as possible so you will be able to resolve your pain. To do this effectively, there are several valuable qualities that will help you to face the future as uncertain as it may seem right now.
1. Have the right attitude. Attitude is what makes the difference between a painful experience becoming a failure or a success. You can allow your experience to leave you timid and afraid to step out again for fear of being hurt, or you can determine that your loss will be your teacher.
True, we need mountaintop experiences from time to time to encourage us, but we don't grow through these. It's in the valley of disappointment that we are given the opportunity to take stock of our life and move toward a greater level of growth and maturity.
2. Know what your purpose in life is. The more clearly defined that purpose is—and the more deeply it is embedded in your conscious and unconscious mind—the less loss will set you back. A spacecraft en route to the moon is off course 90 percent of the time. It is pulled back by the earth's gravity and is continually drawn to one side or the other by additional forces. But it has a built-in computer that has a singleness of purpose that homes in on the moon. The computer is making continual corrections to keep the spacecraft on target with its purpose and goal.
Life is like that. If our eye is on our goal, if we have a singleness of purpose, nothing will stop us getting to where we plan to go.
3. If you failed in a relationship or in some other venture, remember that failure is an event, not a person. Because you failed doesn't mean that you are a failure as a person. Not at all. The only real failure is not to try again, or not to get up one more time than you've fallen down. The important thing is to learn from your past, to use it as an opportunity to grow, and to move ahead to a more fulfilling and richer life.
4. Give God a chance. If you feel like you have failed, or believe you've done wrong, ask God to forgive you—and be sure to forgive yourself. And then, with God's help, turn your failure into a stepping stone toward a better you.
Where a bone is broken and heals, it becomes the strongest part of the bone. The same is true of your broken places—where you have been hurt, have fallen and failed, or are afraid. When you bring these to God for his healing, his strength is made perfect through your weakness.2
1. Psalm 103:13-14 (NIV).
2. Adapted from the chapter: "Failure Is Never Final" in How to Mend a Broken Heart by Dick Innes. You can read more about this book and order it from http://www.actscom.com/store.
"As a father has compassion on his children, so the LORD has compassion on those who fear him; for he knows how we are formed, he remembers that we are dust."1
Yesterday—or any other day—may have been the final day of your divorce, the day you were rejected, or the day you lost or buried a loved one; but as difficult as it seems right now, and as extremely sad as it is, in time it can become a day of new beginnings. Be gentle with yourself but do begin the grieving process as soon as possible so you will be able to resolve your pain. To do this effectively, there are several valuable qualities that will help you to face the future as uncertain as it may seem right now.
1. Have the right attitude. Attitude is what makes the difference between a painful experience becoming a failure or a success. You can allow your experience to leave you timid and afraid to step out again for fear of being hurt, or you can determine that your loss will be your teacher.
True, we need mountaintop experiences from time to time to encourage us, but we don't grow through these. It's in the valley of disappointment that we are given the opportunity to take stock of our life and move toward a greater level of growth and maturity.
2. Know what your purpose in life is. The more clearly defined that purpose is—and the more deeply it is embedded in your conscious and unconscious mind—the less loss will set you back. A spacecraft en route to the moon is off course 90 percent of the time. It is pulled back by the earth's gravity and is continually drawn to one side or the other by additional forces. But it has a built-in computer that has a singleness of purpose that homes in on the moon. The computer is making continual corrections to keep the spacecraft on target with its purpose and goal.
Life is like that. If our eye is on our goal, if we have a singleness of purpose, nothing will stop us getting to where we plan to go.
3. If you failed in a relationship or in some other venture, remember that failure is an event, not a person. Because you failed doesn't mean that you are a failure as a person. Not at all. The only real failure is not to try again, or not to get up one more time than you've fallen down. The important thing is to learn from your past, to use it as an opportunity to grow, and to move ahead to a more fulfilling and richer life.
4. Give God a chance. If you feel like you have failed, or believe you've done wrong, ask God to forgive you—and be sure to forgive yourself. And then, with God's help, turn your failure into a stepping stone toward a better you.
Where a bone is broken and heals, it becomes the strongest part of the bone. The same is true of your broken places—where you have been hurt, have fallen and failed, or are afraid. When you bring these to God for his healing, his strength is made perfect through your weakness.2
1. Psalm 103:13-14 (NIV).
2. Adapted from the chapter: "Failure Is Never Final" in How to Mend a Broken Heart by Dick Innes. You can read more about this book and order it from http://www.actscom.com/store.
Friday, October 2, 2009
Success' qoute of this month October 2009
Success is nothing more, nothing less, than the progressive realization of the will of God for your life.
Thursday, September 17, 2009
Success' qoute of today
"There are no secrets to success. It is the result of preparation, hard work, and learning from failure." -- Colin Powell
Monday, June 8, 2009
7 Essential Steps Before Starting A Business
Prepared By Rich Mintzer | June 05, 2009
Yes, there are thousands of businesses you could start, with more emerging daily thanks to new technology and good old-fashioned ingenuity. Yet despite the vast universe of possibilities, there are a few essential steps you need to take before starting a business, any business.
1. Do your market research: Just because you build it or sell it doesn't necessarily mean anyone will buy it. The first essential step is to research your potential market. Who needs what you are offering? Is there space for your product or service in the market or is the market saturated? Is the market national? Is it a niche? Can you define your ideal customers? These are all questions that need to be answered before you even consider starting a business. Too many entrepreneurs have found out the hard way that there was not enough market share for them to capture. Others have realized that their target market audience was far too limited to make their business work.
2. Show yourself the money: You can't start a business without capital. Determine what you have, what you will need and how you will go about getting it. If you plan to seek investor funding or financing, start writing a business plan and practice your pitch. Research the costs associated with your business. Know how much money you'll need and decide where it could come from.
3. Hire a good business attorney: You don't necessarily need to have an attorney on a retainer, but you'll want to hire an attorney experienced with new businesses to help you get started. Your attorney can advise you about such things as drafting contracts, reviewing your lease and determining the right business structure. "A good attorney will know what it is that you are trying to do and help you structure your business in a way that will be beneficial to you," says Chris Talis, senior partner at Hedgerow Mergers Acquisitions in Teaneck, N.J. The best way to find a good attorney is by referral or through networking.
4. Hire a good accountant: An accountant will work in conjunction with your attorney and be instrumental in determining the best form of ownership. He can also help you establish bookkeeping and other record keeping procedures that can keep you on track for years. Most important, a good accountant will help with tax planning. "You will also want an accountant who understands the state laws, since every state has its own little intricacies, such as sales tax issues," Talis says, adding that it's important for your accountant to be familiar with startup ventures.
5. Decide on a business structure: Your choices include sole proprietorship, partnership, corporation, "S" corporation or limited liability corporation (LLC). Personal liability, taxes, paperwork and regulations vary greatly among the different legal business structures. Your attorney and accountant will play a key role in assisting you in this important decision.
6. Decide on a business name: It may seem obvious and simple, but the name is how your business will be known to the world. The right name says a lot about your company. Make a list of potential names and narrow the list down to the one that best describes your company in a few words, while being catchy, easy to remember, easy to pronounce and easy to spell. You should also consider how it will translate to a web domain name. You'll also need to do research to see if there are a) similar business names and b) similar domain names.
7. Get all necessary licenses and permits: Along with a business license, you may need to get additional licenses depending on the type of business and local laws. Many professionals, such as contractors and real estate agents, need to be licensed in the states in which they work. Additionally, you may need licenses to manufacture and/or sell specific products such as liquor, firearms or even lottery tickets. Research all licenses applicable in your county and your state. It's also extremely important to know the zoning laws before you open a business. Don't assume the zoning laws don’t apply to you. You can get information on zoning from your local county clerk’s office.
There are definitely other important steps to getting a business off the ground, such as finding a technical expert and launching a website (a must in today's competitive market). However, if you've taken the seven steps above, you will find yourself in a confident, business-ready position.
Yes, there are thousands of businesses you could start, with more emerging daily thanks to new technology and good old-fashioned ingenuity. Yet despite the vast universe of possibilities, there are a few essential steps you need to take before starting a business, any business.
1. Do your market research: Just because you build it or sell it doesn't necessarily mean anyone will buy it. The first essential step is to research your potential market. Who needs what you are offering? Is there space for your product or service in the market or is the market saturated? Is the market national? Is it a niche? Can you define your ideal customers? These are all questions that need to be answered before you even consider starting a business. Too many entrepreneurs have found out the hard way that there was not enough market share for them to capture. Others have realized that their target market audience was far too limited to make their business work.
2. Show yourself the money: You can't start a business without capital. Determine what you have, what you will need and how you will go about getting it. If you plan to seek investor funding or financing, start writing a business plan and practice your pitch. Research the costs associated with your business. Know how much money you'll need and decide where it could come from.
3. Hire a good business attorney: You don't necessarily need to have an attorney on a retainer, but you'll want to hire an attorney experienced with new businesses to help you get started. Your attorney can advise you about such things as drafting contracts, reviewing your lease and determining the right business structure. "A good attorney will know what it is that you are trying to do and help you structure your business in a way that will be beneficial to you," says Chris Talis, senior partner at Hedgerow Mergers Acquisitions in Teaneck, N.J. The best way to find a good attorney is by referral or through networking.
4. Hire a good accountant: An accountant will work in conjunction with your attorney and be instrumental in determining the best form of ownership. He can also help you establish bookkeeping and other record keeping procedures that can keep you on track for years. Most important, a good accountant will help with tax planning. "You will also want an accountant who understands the state laws, since every state has its own little intricacies, such as sales tax issues," Talis says, adding that it's important for your accountant to be familiar with startup ventures.
5. Decide on a business structure: Your choices include sole proprietorship, partnership, corporation, "S" corporation or limited liability corporation (LLC). Personal liability, taxes, paperwork and regulations vary greatly among the different legal business structures. Your attorney and accountant will play a key role in assisting you in this important decision.
6. Decide on a business name: It may seem obvious and simple, but the name is how your business will be known to the world. The right name says a lot about your company. Make a list of potential names and narrow the list down to the one that best describes your company in a few words, while being catchy, easy to remember, easy to pronounce and easy to spell. You should also consider how it will translate to a web domain name. You'll also need to do research to see if there are a) similar business names and b) similar domain names.
7. Get all necessary licenses and permits: Along with a business license, you may need to get additional licenses depending on the type of business and local laws. Many professionals, such as contractors and real estate agents, need to be licensed in the states in which they work. Additionally, you may need licenses to manufacture and/or sell specific products such as liquor, firearms or even lottery tickets. Research all licenses applicable in your county and your state. It's also extremely important to know the zoning laws before you open a business. Don't assume the zoning laws don’t apply to you. You can get information on zoning from your local county clerk’s office.
There are definitely other important steps to getting a business off the ground, such as finding a technical expert and launching a website (a must in today's competitive market). However, if you've taken the seven steps above, you will find yourself in a confident, business-ready position.
Sunday, June 7, 2009
A thought of today!
"Things turn out best for the people who make the best of the way things turn out." -- Art Linkletter
We need to make sure that whatever opportunity that comes to our way we fully utilize it so that the best can been seen from what we have dared to do!!
We need to make sure that whatever opportunity that comes to our way we fully utilize it so that the best can been seen from what we have dared to do!!
Friday, May 22, 2009
What does the Bible says about Success??
You Have the Advantage
Today's Scripture
"…His favor is for a lifetime…" (Psalm 30:5, AMP).
Word from Joel and Victoria
One definition of the word "favor" is an advantage for success. When you put God first, when you obey His commands, you open the door for His favor–you have the advantage for success! Even if someone may have wronged you and it looks like they have the upper hand, even if it looks like things are never going to change, you need to keep reminding yourself, "I have an advantage. God is in control of my destiny. He’s fighting my battles for me. He is my Vindicator. And it's just a matter of time before things change in my favor."
I love the Scripture in Hebrews that says, "Don't cast away your confidence." One translation says, "…for payday is coming." In the difficult times, you have to remind yourself that payday is on its way! God is a faithful God. If you'll keep doing the right thing, honoring Him, expecting His favor, God has promised He will pay you back. He will restore everything in your life that the enemy has stolen so you can live the abundant life He has promised to you.
Today's Scripture
"…His favor is for a lifetime…" (Psalm 30:5, AMP).
Word from Joel and Victoria
One definition of the word "favor" is an advantage for success. When you put God first, when you obey His commands, you open the door for His favor–you have the advantage for success! Even if someone may have wronged you and it looks like they have the upper hand, even if it looks like things are never going to change, you need to keep reminding yourself, "I have an advantage. God is in control of my destiny. He’s fighting my battles for me. He is my Vindicator. And it's just a matter of time before things change in my favor."
I love the Scripture in Hebrews that says, "Don't cast away your confidence." One translation says, "…for payday is coming." In the difficult times, you have to remind yourself that payday is on its way! God is a faithful God. If you'll keep doing the right thing, honoring Him, expecting His favor, God has promised He will pay you back. He will restore everything in your life that the enemy has stolen so you can live the abundant life He has promised to you.
On Biblicals perspective....Any barrier towards attaining your goal??
Rejoice in the Difficult Times...by Joel & Victoria Osteen...
"We can rejoice, too, when we run into problems and trials, for we know that they help us develop endurance. And endurance develops strength of character, and character strengthens our confident hope of salvation"
(Romans 5:3-4, NLT).
Did you know that the way you handle your adversities has a huge impact on your success in life? If you shrink back, choose to get bitter, and lose your enthusiasm, then you are allowing the difficulties of life to bury you. You are allowing hardship to keep you from your God-given destiny. But if you choose to keep pressing forward with a smile on your face, rejoicing even in the hard times, you are allowing God’s character to be developed inside of you. You are setting yourself up for promotion.
Did you know that the only difference between a piece of black coal and a priceless diamond is the amount of pressure that it’s endured? When you stand strong in the midst of the trials and difficulties in life, when you allow God to shape and mold your character, it’s like going from a piece of coal to a priceless diamond. Those difficulties are going to give way to new growth, new potential, new talent, new friendships, new opportunities, new vision. You’re going to see God develop your life in ways that you’ve never even dreamed!
"We can rejoice, too, when we run into problems and trials, for we know that they help us develop endurance. And endurance develops strength of character, and character strengthens our confident hope of salvation"
(Romans 5:3-4, NLT).
Did you know that the way you handle your adversities has a huge impact on your success in life? If you shrink back, choose to get bitter, and lose your enthusiasm, then you are allowing the difficulties of life to bury you. You are allowing hardship to keep you from your God-given destiny. But if you choose to keep pressing forward with a smile on your face, rejoicing even in the hard times, you are allowing God’s character to be developed inside of you. You are setting yourself up for promotion.
Did you know that the only difference between a piece of black coal and a priceless diamond is the amount of pressure that it’s endured? When you stand strong in the midst of the trials and difficulties in life, when you allow God to shape and mold your character, it’s like going from a piece of coal to a priceless diamond. Those difficulties are going to give way to new growth, new potential, new talent, new friendships, new opportunities, new vision. You’re going to see God develop your life in ways that you’ve never even dreamed!
U want success in your life??
"Perseverance is a great element of success. If you only knock long enough and loud enough at the gate, you are sure to wake up somebody." -- Henry Wadsworth
Wednesday, May 20, 2009
Learn to Invest - Free Cash Flow Yield
Learn to Invest - Free Cash Flow Yield
Free cash flow yield is one of the best indicators used by fundamental analysts to select and assess companies. The higher the number the more free cash per share is being generated by the company. Companies can use their excess cash can to pay higher dividends, buy back shares, and re-invest in the company, all activities that lead to higher share prices.
Calculating Free Cash Flow Yield
For investors, cash in the bank is king. It is hard to hide financial misdeeds or problems in a company’s bank accounts. These bank balances show the truth in the financial performance of a company. This is why investors like to look at cash flow and free cash flow.
To calculate free cash flow yield, start with the Company’s Cash Flow Statement. On the cash flow statement, find the Cash Flow from Operations line. Then subtract capital expenditures to derive free cash flow. Free Cash flow is the money that is left over in the company’s bank accounts after paying the company’s bills and investing in new capital projects and equipment to help the company grow. It is best to use the annual cash flow numbers, so you have a more complete picture of the company’s financial situation.
Here is the formula: Cash Flow from Operations – Capital Expenditures = Free Cash Flow.
The standard way to calculate free cash flow yield is to use market capitalization, or total common shares outstanding times the share price. To find the free cash flow yield percentage divide free cash flow by market capitalization. This number is a calculated ratio indicating how much free cash flow is available per common share. Market Capitalization is readily available on the financial site such as Yahoo!Finance.
Some analysts believe there is a better measure to use than market capitalization. They prefer to use enterprise value, as it accounts for debt, value of preferred shares, minority interest, and cash. Enterprise value differs significantly from simple market capitalization since it is a more accurate representation of a firm's value. For example, if there company were to be acquired, the value of a firm's debt would need to be paid by the buyer. This makes enterprise value a more accurate valuation measure.
Using enterprise value as the divisor adjusts the free cash flow yield for the companies that hold debt, have a large amount of cash and have preferred shares. Using enterprise value in calculating free cash flow yield provides a better measure when comparing of companies for possible investment. At Trading Online Markets LLC, we use market capitalization as the divisor to calculate free cash flow yield as one of our selection criteria for stocks on our Premium Members Watch List.
Comparing Free Cash Flow Yield
The table below compares the free cash flow yield for two quality companies, Accenture Ltd (ACN) and EMC (EMC). Accenture is a successful global consulting and IT outsourcing company. EMC is a manufacturer of storage devices for data centers and a developer of software that manages multiple computers, offers security services and document management for a number of industries. Each company generates significant cash flow and free cash flow. Since EMC is a manufacturer, they tend to have higher capital investment requirements than Accenture, a services company. This may lower their free cash flow on a relative basis. In addition, EMC has a debt to equity ratio of 26.5%, while Accenture essentially has no long-term debt.
When analyzing companies, I like to see the free cash flow yield be at least 10%. As shown below both companies have free cash flow yields above this threshold, indicating they are potentially good investment opportunities. The fact that Accenture’s free cash flow yield is higher than EMC’s, does not necessarily make them a better choice. However, it does offer an excellent way to compare the potential performance of several companies. The free cash flow yield measures the ability to generate cash, the risk in the balance sheet and the share price, all in one meaningful statistic.
Earnings Yield Comparisons ($000)
Capital Expenditures <>$303,464
Earnings Yield Calculations Accenture (ACN) as of 3/25/2009 EMC (EMC) as of 3/25/2009
Total Cash Flow from Operating Activities $3,302,851 $3,565,008
$695,899
Free Cash Flow $2,999,387 $2,869,109
Market Capitalization $19,270,000 $23,880,000
Free Cash Flow Yield using Market Cap 15.6% 12.0%
Enterprise Value $15,550,000 $19,360,000
Free Cash Flow Yield using Enterprise Value 19.3% 14.8%
Debt to Equity Ratio 0.01% 26.5%
The Bottom Line
The free cash flow yield measure is probably the best fundamental statistic available. By basing it on a company’s cash flow, it removes the accounting treatment that is inherent in our current financial statements. Free cash flow measures the ability of the company to generate excess cash and provide money to reinvest in the company to help it grow further. Using the enterprise value incorporates the total value of a company used to generate profits. Moreover, the free cash flow yield is not hard to calculate. The information is available from the widely used financial sites as well as a company’s financial statements. Investors will do themselves a service by comparing the free cash flow yield of companies they are considering or own.
Free cash flow yield is one of the best indicators used by fundamental analysts to select and assess companies. The higher the number the more free cash per share is being generated by the company. Companies can use their excess cash can to pay higher dividends, buy back shares, and re-invest in the company, all activities that lead to higher share prices.
Calculating Free Cash Flow Yield
For investors, cash in the bank is king. It is hard to hide financial misdeeds or problems in a company’s bank accounts. These bank balances show the truth in the financial performance of a company. This is why investors like to look at cash flow and free cash flow.
To calculate free cash flow yield, start with the Company’s Cash Flow Statement. On the cash flow statement, find the Cash Flow from Operations line. Then subtract capital expenditures to derive free cash flow. Free Cash flow is the money that is left over in the company’s bank accounts after paying the company’s bills and investing in new capital projects and equipment to help the company grow. It is best to use the annual cash flow numbers, so you have a more complete picture of the company’s financial situation.
Here is the formula: Cash Flow from Operations – Capital Expenditures = Free Cash Flow.
The standard way to calculate free cash flow yield is to use market capitalization, or total common shares outstanding times the share price. To find the free cash flow yield percentage divide free cash flow by market capitalization. This number is a calculated ratio indicating how much free cash flow is available per common share. Market Capitalization is readily available on the financial site such as Yahoo!Finance.
Some analysts believe there is a better measure to use than market capitalization. They prefer to use enterprise value, as it accounts for debt, value of preferred shares, minority interest, and cash. Enterprise value differs significantly from simple market capitalization since it is a more accurate representation of a firm's value. For example, if there company were to be acquired, the value of a firm's debt would need to be paid by the buyer. This makes enterprise value a more accurate valuation measure.
Using enterprise value as the divisor adjusts the free cash flow yield for the companies that hold debt, have a large amount of cash and have preferred shares. Using enterprise value in calculating free cash flow yield provides a better measure when comparing of companies for possible investment. At Trading Online Markets LLC, we use market capitalization as the divisor to calculate free cash flow yield as one of our selection criteria for stocks on our Premium Members Watch List.
Comparing Free Cash Flow Yield
The table below compares the free cash flow yield for two quality companies, Accenture Ltd (ACN) and EMC (EMC). Accenture is a successful global consulting and IT outsourcing company. EMC is a manufacturer of storage devices for data centers and a developer of software that manages multiple computers, offers security services and document management for a number of industries. Each company generates significant cash flow and free cash flow. Since EMC is a manufacturer, they tend to have higher capital investment requirements than Accenture, a services company. This may lower their free cash flow on a relative basis. In addition, EMC has a debt to equity ratio of 26.5%, while Accenture essentially has no long-term debt.
When analyzing companies, I like to see the free cash flow yield be at least 10%. As shown below both companies have free cash flow yields above this threshold, indicating they are potentially good investment opportunities. The fact that Accenture’s free cash flow yield is higher than EMC’s, does not necessarily make them a better choice. However, it does offer an excellent way to compare the potential performance of several companies. The free cash flow yield measures the ability to generate cash, the risk in the balance sheet and the share price, all in one meaningful statistic.
Earnings Yield Comparisons ($000)
Capital Expenditures <>$303,464
Earnings Yield Calculations Accenture (ACN) as of 3/25/2009 EMC (EMC) as of 3/25/2009
Total Cash Flow from Operating Activities $3,302,851 $3,565,008
$695,899
Free Cash Flow $2,999,387 $2,869,109
Market Capitalization $19,270,000 $23,880,000
Free Cash Flow Yield using Market Cap 15.6% 12.0%
Enterprise Value $15,550,000 $19,360,000
Free Cash Flow Yield using Enterprise Value 19.3% 14.8%
Debt to Equity Ratio 0.01% 26.5%
The Bottom Line
The free cash flow yield measure is probably the best fundamental statistic available. By basing it on a company’s cash flow, it removes the accounting treatment that is inherent in our current financial statements. Free cash flow measures the ability of the company to generate excess cash and provide money to reinvest in the company to help it grow further. Using the enterprise value incorporates the total value of a company used to generate profits. Moreover, the free cash flow yield is not hard to calculate. The information is available from the widely used financial sites as well as a company’s financial statements. Investors will do themselves a service by comparing the free cash flow yield of companies they are considering or own.
3 Secrets of Successful Companies
3 Secrets of Successful Companies
By Michael Schmidt,CFA
Story Tools
Some companies are just better than others. It could be name recognition, innovation, market share or any number of other attributes that makes a good company stand out from the herd. The important thing for an investor is being able to spot the eventual winners before they become household names.
In this article we'll take a look at three key attributes that make a company successful. Learn to spot them early, and you could find ride the coattails to success too.
Three Secrets of Success
So, what is it about one company that makes it a good company, and does that description equate to a good stock to invest in? The answer depends on whether you ask an accountant, an economist, a marketer or a human resources expert, but by pulling all of those disciplines together, you generally can define a good company by these three characteristics:
• Competitive advantage
• Above-average management
• Market leadership
Competitive Advantage
Michael Porter pioneered the concept of competitive advantage and broke it down into two forms: differentiation advantage and cost advantage. Differentiation advantage is when a company provides a superior service or product for the same price charged by the market. Cost advantage is when a company provides the same service or product as the market, but at a lower price. Porter collectively refers to these as "positional advantages" because they define the firm's position as having the leading service or product in its specific industry. He also states that these advantages cannot be sustained for any length of time because the promise of economic rents invites competition.
• Barriers to entry
Good companies can also maintain their high status if there are significantly high barriers to entry into their fields. This can include large fixed costs, such as those associated with heavy manufacturing, or long-term research and development costs, like those found in the pharmaceutical or computer software development industries. All of these entry costs can deter competition from entering the market, thus helping the company sustain its leading status. (To learn more about these barriers, check out Economic Moats Keep Competitors At Bay.)
• Name Recognition
We tend to take the value of name recognition for granted when looking at a company's status. Brand names like Kleenex and Coke have become synonymous with their products. The problem with name recognition is placing a value on that name, and there is no easy way to do that. A name only has qualitative value, but it can provide a long-term relationship between a company’s products or services and its customers. While it can be debated whether this trait alone makes a company good, when combined with the other characteristics it can be a powerful source of success.
• Price Leadership
There is nothing more powerful than providing comparable services or products to the market for a lower price. In any economic environment, boom or bust, there will always be a demand for low-priced services and products. Being able to come to the marketplace with consistently lower prices across the board can fill a niche in the market that can attract customers for a long period of time. The key in price leadership is being able to sustain that level and fend off others who try to compete in that space. (For greater detail, check out Competitive Advantage Counts.)
Above-Average Management
The quality of its management is a big factor in whether a company is successful, and an important attribute in any management team is a blend of experience. Experienced managers can not only lead a company through market cycles, but they can also provide mentorship for the next generation of managers.
Another telling attribute is when management tends to stay at a company for a long period of time. Talented managers can be swayed to move from company to company with handsome compensation packages, but tend to stay at companies where they like to work and they believe in their company's future successes. (Learn how to investigate the management behind the numbers in Evaluating A Company's Management and Is Your CEO Street Savvy?)
Market Leadership
One of the most important characteristics in becoming a good company is market leadership. Leadership can come in many forms, but the reputation that comes along with this tag is priceless. The label of "industry standard" is one that every company strives for. Examples include leading the market in quality, innovation, customer service or even warranties.
Market leadership is probably the hardest status to maintain. No competitor is content being No.2 in the industry. This is where barriers to entry come into play. If the company you are watching competes in an industry with high barriers to entry, it's much more likely that its market dominance can continue. Companies can also move toward market leadership by buying and merging with other successful companies to improve their market share, vertical and horizontal integration, and technological bases. (For more on this topic, read Which Is Better: Dominance Or Innovation?)
Conclusion
So what is it about one company that makes it a good company, and does that good rating equate to a good stock to invest in? If the company has a competitive advantage, above-average management and market leadership, you are looking at a potentially strong investment. While these traits alone don't necessarily tell the whole story, they are important factors in evaluating whether a company might be recognized by investors globally as a good investment.
By Michael Schmidt)
Michael Schmidt earned an MBA from Loyola University of Chicago and is a CFA charterholder. He has spent 20 years working for management and consulting fields, such as William M. Mercer, INDATA and Coastal Asset Management. His roles there included asset allocation and integration of pension investment assets. As an analyst at Mellon Bank and Northern Trust he provided buy side research as well as managed investment portfolios for the institutional and high-net-worth arena. In the last decade, Schmidt worked for the NASD Dispute Resolution Board as an arbitrator as well as expert witness for claimants and respondents
By Michael Schmidt,CFA
Story Tools
Some companies are just better than others. It could be name recognition, innovation, market share or any number of other attributes that makes a good company stand out from the herd. The important thing for an investor is being able to spot the eventual winners before they become household names.
In this article we'll take a look at three key attributes that make a company successful. Learn to spot them early, and you could find ride the coattails to success too.
Three Secrets of Success
So, what is it about one company that makes it a good company, and does that description equate to a good stock to invest in? The answer depends on whether you ask an accountant, an economist, a marketer or a human resources expert, but by pulling all of those disciplines together, you generally can define a good company by these three characteristics:
• Competitive advantage
• Above-average management
• Market leadership
Competitive Advantage
Michael Porter pioneered the concept of competitive advantage and broke it down into two forms: differentiation advantage and cost advantage. Differentiation advantage is when a company provides a superior service or product for the same price charged by the market. Cost advantage is when a company provides the same service or product as the market, but at a lower price. Porter collectively refers to these as "positional advantages" because they define the firm's position as having the leading service or product in its specific industry. He also states that these advantages cannot be sustained for any length of time because the promise of economic rents invites competition.
• Barriers to entry
Good companies can also maintain their high status if there are significantly high barriers to entry into their fields. This can include large fixed costs, such as those associated with heavy manufacturing, or long-term research and development costs, like those found in the pharmaceutical or computer software development industries. All of these entry costs can deter competition from entering the market, thus helping the company sustain its leading status. (To learn more about these barriers, check out Economic Moats Keep Competitors At Bay.)
• Name Recognition
We tend to take the value of name recognition for granted when looking at a company's status. Brand names like Kleenex and Coke have become synonymous with their products. The problem with name recognition is placing a value on that name, and there is no easy way to do that. A name only has qualitative value, but it can provide a long-term relationship between a company’s products or services and its customers. While it can be debated whether this trait alone makes a company good, when combined with the other characteristics it can be a powerful source of success.
• Price Leadership
There is nothing more powerful than providing comparable services or products to the market for a lower price. In any economic environment, boom or bust, there will always be a demand for low-priced services and products. Being able to come to the marketplace with consistently lower prices across the board can fill a niche in the market that can attract customers for a long period of time. The key in price leadership is being able to sustain that level and fend off others who try to compete in that space. (For greater detail, check out Competitive Advantage Counts.)
Above-Average Management
The quality of its management is a big factor in whether a company is successful, and an important attribute in any management team is a blend of experience. Experienced managers can not only lead a company through market cycles, but they can also provide mentorship for the next generation of managers.
Another telling attribute is when management tends to stay at a company for a long period of time. Talented managers can be swayed to move from company to company with handsome compensation packages, but tend to stay at companies where they like to work and they believe in their company's future successes. (Learn how to investigate the management behind the numbers in Evaluating A Company's Management and Is Your CEO Street Savvy?)
Market Leadership
One of the most important characteristics in becoming a good company is market leadership. Leadership can come in many forms, but the reputation that comes along with this tag is priceless. The label of "industry standard" is one that every company strives for. Examples include leading the market in quality, innovation, customer service or even warranties.
Market leadership is probably the hardest status to maintain. No competitor is content being No.2 in the industry. This is where barriers to entry come into play. If the company you are watching competes in an industry with high barriers to entry, it's much more likely that its market dominance can continue. Companies can also move toward market leadership by buying and merging with other successful companies to improve their market share, vertical and horizontal integration, and technological bases. (For more on this topic, read Which Is Better: Dominance Or Innovation?)
Conclusion
So what is it about one company that makes it a good company, and does that good rating equate to a good stock to invest in? If the company has a competitive advantage, above-average management and market leadership, you are looking at a potentially strong investment. While these traits alone don't necessarily tell the whole story, they are important factors in evaluating whether a company might be recognized by investors globally as a good investment.
By Michael Schmidt)
Michael Schmidt earned an MBA from Loyola University of Chicago and is a CFA charterholder. He has spent 20 years working for management and consulting fields, such as William M. Mercer, INDATA and Coastal Asset Management. His roles there included asset allocation and integration of pension investment assets. As an analyst at Mellon Bank and Northern Trust he provided buy side research as well as managed investment portfolios for the institutional and high-net-worth arena. In the last decade, Schmidt worked for the NASD Dispute Resolution Board as an arbitrator as well as expert witness for claimants and respondents
Tuesday, May 19, 2009
The Parable of the Talents
The Parable of the Talents
By Brian Tracy
Why do some people retire rich and most people retire poor? This question has fascinated philosophers, mystics, and teachers throughout the ages. There have been so many men and women - hundreds or thousands, maybe even millions - who started with nothing and became financially independent that people are naturally curious to know why it happened and if there are common rules or principles that others can apply to become wealthy as well.
The Parable of the Talents is one of the stories told by Jesus to illustrate a moral lesson. The message in this case (from the Gospel of Matthew): "To him that hath, shall more be given, and he shall have abundance. But from him that hath not, even that which he hath shall be taken away."
What does it mean?
In the modern world, we say it this way: "The rich get richer and the poor get poorer." The fact is that people who accumulate money tend to accumulate more and more. People who don't accumulate money seem to lose even that little bit that they have.
Why should this happen?
The great success principle, the single idea that explains human destiny is simple: "You become what you think about most of the time."
Control Your Thoughts
Whatever you dwell upon grows in your reality. You create your entire world by the things you choose to think about and how you choose to think about them.
It just so happens that wealthy, successful people fill their minds - most of the time - with thoughts, words, pictures, and images of wealth, affluence, success, productivity, and solutions to problems in the marketplace. These thoughts trigger the reticular activating cortex, the part of the brain that makes you more alert and sensitive to things that you have decided are important to you.
For example, if you decide to invest in a mutual fund, you will start to see news and information about mutual funds everywhere. Mentions in newspapers and magazines will jump out at you. These things have always been there, but now you have sensitized your brain to pick them up and draw them to your attention with far greater frequency and vividness. This is the function and power of your reticular cortex.
Think Like Wealthy People Think
Wealthy people, from an early age, think about how much they have, how much they want, and all the different things they can do to acquire and earn the money and things they desire.
On the other hand, what do poor people think about most of the time? Unfortunately, they fill their minds with thoughts of scarcity, lack, poverty, being unable to afford things. They are always thinking and talking about how little money they have, how much things cost, and how they wish they could be better off financially. What they think about most of the time is how little money they have.
Find Out How Rich People Think
Here's a rule for you. If you want to become successful, find out what failures do and don't do it. If you want to be wealthy, find out what poor people think about, and avoid thinking that way. Instead, find out how wealthy people think. Find out what they read. Find out how they spend their time. Study their lives, read their stories and autobiographies, and listen to their words when they are interviewed and on tape. The more you find out about what financially successful people think and talk about most of the time - and do the same things - the more rapidly you will enjoy the same rewards that they do.
Here are two things you can do to put The Parable of the Talents into action:
First, make a decision that, starting today, you will think and talk only about the financial success you desire. At the same time, you will refuse to talk about or dwell upon your financial problems.
Second, instead of saying "I can't afford it," you will ask the question "How can I afford it?" When you think of something that you want or need that you don't have the money for at the time, the only question to ask is "How?" How can you get it? What can you do to achieve it? What are your options? How can you get from where you are to where you want to be?
It will change your life.
By Brian Tracy
Why do some people retire rich and most people retire poor? This question has fascinated philosophers, mystics, and teachers throughout the ages. There have been so many men and women - hundreds or thousands, maybe even millions - who started with nothing and became financially independent that people are naturally curious to know why it happened and if there are common rules or principles that others can apply to become wealthy as well.
The Parable of the Talents is one of the stories told by Jesus to illustrate a moral lesson. The message in this case (from the Gospel of Matthew): "To him that hath, shall more be given, and he shall have abundance. But from him that hath not, even that which he hath shall be taken away."
What does it mean?
In the modern world, we say it this way: "The rich get richer and the poor get poorer." The fact is that people who accumulate money tend to accumulate more and more. People who don't accumulate money seem to lose even that little bit that they have.
Why should this happen?
The great success principle, the single idea that explains human destiny is simple: "You become what you think about most of the time."
Control Your Thoughts
Whatever you dwell upon grows in your reality. You create your entire world by the things you choose to think about and how you choose to think about them.
It just so happens that wealthy, successful people fill their minds - most of the time - with thoughts, words, pictures, and images of wealth, affluence, success, productivity, and solutions to problems in the marketplace. These thoughts trigger the reticular activating cortex, the part of the brain that makes you more alert and sensitive to things that you have decided are important to you.
For example, if you decide to invest in a mutual fund, you will start to see news and information about mutual funds everywhere. Mentions in newspapers and magazines will jump out at you. These things have always been there, but now you have sensitized your brain to pick them up and draw them to your attention with far greater frequency and vividness. This is the function and power of your reticular cortex.
Think Like Wealthy People Think
Wealthy people, from an early age, think about how much they have, how much they want, and all the different things they can do to acquire and earn the money and things they desire.
On the other hand, what do poor people think about most of the time? Unfortunately, they fill their minds with thoughts of scarcity, lack, poverty, being unable to afford things. They are always thinking and talking about how little money they have, how much things cost, and how they wish they could be better off financially. What they think about most of the time is how little money they have.
Find Out How Rich People Think
Here's a rule for you. If you want to become successful, find out what failures do and don't do it. If you want to be wealthy, find out what poor people think about, and avoid thinking that way. Instead, find out how wealthy people think. Find out what they read. Find out how they spend their time. Study their lives, read their stories and autobiographies, and listen to their words when they are interviewed and on tape. The more you find out about what financially successful people think and talk about most of the time - and do the same things - the more rapidly you will enjoy the same rewards that they do.
Here are two things you can do to put The Parable of the Talents into action:
First, make a decision that, starting today, you will think and talk only about the financial success you desire. At the same time, you will refuse to talk about or dwell upon your financial problems.
Second, instead of saying "I can't afford it," you will ask the question "How can I afford it?" When you think of something that you want or need that you don't have the money for at the time, the only question to ask is "How?" How can you get it? What can you do to achieve it? What are your options? How can you get from where you are to where you want to be?
It will change your life.
9 Tricks of the Successful Trader
9 Tricks of the Successful Trader
By Selwyn Gishen (Contact Author | Biography)
Story Tools
For all of its numbers, charts and ratios, trading is more art than science. And just as in artistic endeavors, there is talent involved, but talent will only take you so far. The best traders hone their skills through practice and discipline. They perform self analysis to see what drives their trades and learn how to keep fear and greed out of the equation. In this article we'll look at nine steps a novice trader can use to perfect his or her craft; for the experts out there, you might just find some tips that will help you make smarter, more profitable trades, too.
Step 1. Define your goals and then choose a style of trading that is compatible with those goals. Be sure your personality is a match for the style of trading you choose.
Before you set out on any journey, it is imperative that you have some idea of where your destination is and how you will get there. Consequently, it is imperative that you have clear goals in mind as to what you would like to achieve; you then have to be sure that your trading method is capable of achieving these goals. Each type of trading style requires a different approach and each style has a different risk profile, which requires a different attitude and approach to trade successfully. For example, if you cannot stomach going to sleep with an open position in the market then you might consider day trading. On the other hand, if you have funds that you think will benefit from the appreciation of a trade over a period of some months, then a position trader is what you want to consider becoming. But no matter what style of trading you choose, be sure that your personality fits the style of trading you undertake. A personality mismatch will lead to stress and certain losses. (For more, see Invest With A Thesis.)
Step 2. Choose a broker with whom you feel comfortable but also one who offers a trading platform that is appropriate for your style of trading.
It is important to choose a broker who offers a trading platform that will allow you to do the analysis you require. Choosing a reputable broker is of paramount importance and spending time researching the differences between brokers will be very helpful. You must know each broker's policies and how he or she goes about making a market. For example, trading in the over-the-counter market or spot market is different from trading the exchange-driven markets. In choosing a broker, it is important to read the broker documentation. Know your broker's policies. Also make sure that your broker's trading platform is suitable for the analysis you want to do. For example, if you like to trade off of Fibonacci numbers, be sure the broker's platform can draw Fibonacci lines. A good broker with a poor platform, or a good platform with a poor broker, can be a problem. Make sure you get the best of both.
Step 3. Choose a methodology and then be consistent in its application.
Before you enter any market as a trader, you need to have some idea of how you will make decisions to execute your trades. You must know what information you will need in order to make the appropriate decision about whether to enter or exit a trade. Some people choose to look at the underlying fundamentals of the company or economy, and then use a chart to determine the best time to execute the trade. Others use technical analysis; as a result they will only use charts to time a trade. Remember that fundamentals drive the trend in the long term, whereas chart patterns may offer trading opportunities in the short term. Whichever methodology you choose, remember to be consistent. And be sure your methodology is adaptive. Your system should keep up with the changing dynamics of a market. (For related reading, see What is the difference between fundamental and technical analysis and Blending Technical And Fundamental Analysis.)
Step 4. Choose a longer time frame for direction analysis and a shorter time frame to time entry or exit.
Many traders get confused because of conflicting information that occurs when looking at charts in different time frames. What shows up as a buying opportunity on a weekly chart could, in fact, show up as a sell signal on an intraday chart. Therefore, if you are taking your basic trading direction from a weekly chart and using a daily chart to time entry, be sure to synchronize the two. In other words, if the weekly chart is giving you a buy signal, wait until the daily chart also confirms a buy signal. Keep your timing in sync.
Step 5. Calculate your expectancy.
Expectancy is the formula you use to determine how reliable your system is. You should go back in time and measure all your trades that were winners, versus all your trades that were losers. Then determine how profitable your winning trades were versus how much your losing trades lost.
Take a look at your last 10 trades. If you haven't made actual trades yet, go back on your chart to where your system would have indicated that you should enter and exit a trade. Determine if you would have made a profit or a loss. Write these results down. Total all your winning trades and divide the answer by the number of winning trades you made. Here is the formula:
E= [1+ (W/L)] x P – 1
where:
W = Average Winning Trade
L = Average Losing Trade
P = Percentage Win Ratio
Example:
If you made 10 trades and six of them were winning trades and four were losing trades, your percentage win ratio would be 6/10 or 60%. If your six trades made $2,400, then your average win would be $2,400/6 = $400. If your losses were $1,200, then your average loss would be $1,200/4 = $300. Apply these results to the formula and you get; E= [1+ (400/300)] x 0.6 - 1 = 0.40 or 40%. A positive 40% expectancy means that your system will return you 40 cents per dollar over the long term.
Step 6. Focus on your trades and learn to love small losses.
Once you have funded your account, the most important thing to remember is that your money is at risk. Therefore, your money should not be needed for living or to pay bills etc. Consider your trading money as if it were vacation money. Once the vacation is over your money is spent. Have the same attitude toward trading. This will psychologically prepare you to accept small losses, which is key to managing your risk. By focusing on your trades and accepting small losses rather than constantly counting your equity, you will be much more successful.
Secondly, only leverage your trades to a maximum risk of 2% of your total funds. In other words, if you have $10,000 in your trading account, never let any trade lose more than 2% of the account value, or $200. If your stops are farther away than 2% of your account, trade shorter time frames or decrease the leverage. (For further reading, see Leverage's Double-Edged Sword Need Not Cut Deep.)
Step 7. Build positive feedback loops.
A positive feedback loop is created as a result of a well-executed trade in accordance with your plan. When you plan a trade and then execute it well, you form a positive feedback pattern. Success breeds success, which in turn breeds confidence - especially if the trade is profitable. Even if you take a small loss but do so in accordance with a planned trade, then you will be building a positive feedback loop.
Step 8. Perform weekend analysis.
It is always good to prepare in advance. On the weekend, when the markets are closed, study weekly charts to look for patterns or news that could affect your trade. Perhaps a pattern is making a double top and the pundits and the news is suggesting a market reversal. This is a kind of reflexivity where the pattern could be prompting the pundits while the pundits are reinforcing the pattern. Or the pundits may be telling you that the market is about to explode. Perhaps these are pundits hoping to lure you into the market so that they can sell their positions on increased liquidity. These are the kinds of actions to look for to help you formulate your upcoming trading week. In the cool light of objectivity, you will make your best plans. Wait for your setups and learn to be patient.
If the market does not reach your point of entry, learn to sit on your hands. You might have to wait for the opportunity longer than you anticipated. If you miss a trade, remember that there will always be another. If you have patience and discipline you can become a good trader. (To learn more, see Patience Is A Trader’s Virtue.)
Step 9. Keep a printed record.
Keeping a printed record is one of the best learning tools a trader can have. Print out a chart and list all the reasons for the trade, including the fundamentals that sway your decisions. Mark the chart with your entry and your exit points. Make any relevant comments on the chart. File this record so you can refer to it over and over again. Note the emotional reasons for taking action. Did you panic? Were you too greedy? Were you full of anxiety? Note all these feelings on your record. It is only when you can objectify your trades that you will develop the mental control and discipline to execute according to your system instead of your habits.
Bottom Line
The steps above will lead you to a structured approach to trading and in return should help you become a more refined trader. Trading is an art and the only way to become increasingly proficient is through consistent and disciplined practice. Remember the expression: the harder you practice the luckier you'll get.
by Selwyn Gishen, (Contact Author | Biography)
Selwyn Gishen is a trader with more than 15 years of experience trading forex and equities for a private equity fund. For the past 35 years, he has also been a student of metaphysics, and has written a book called "Mind: How Changing Your Mind Can Change Your Life!" (2007). Gishen is the founder of FXNewsandViews.Com and the author of a forex trading guide entitled "Trading the Forex Markets: A Foundation Course for Online Traders". The course is designed to provide the trader with all the aspects of Gishen's Fusion Trading Model.
By Selwyn Gishen (Contact Author | Biography)
Story Tools
For all of its numbers, charts and ratios, trading is more art than science. And just as in artistic endeavors, there is talent involved, but talent will only take you so far. The best traders hone their skills through practice and discipline. They perform self analysis to see what drives their trades and learn how to keep fear and greed out of the equation. In this article we'll look at nine steps a novice trader can use to perfect his or her craft; for the experts out there, you might just find some tips that will help you make smarter, more profitable trades, too.
Step 1. Define your goals and then choose a style of trading that is compatible with those goals. Be sure your personality is a match for the style of trading you choose.
Before you set out on any journey, it is imperative that you have some idea of where your destination is and how you will get there. Consequently, it is imperative that you have clear goals in mind as to what you would like to achieve; you then have to be sure that your trading method is capable of achieving these goals. Each type of trading style requires a different approach and each style has a different risk profile, which requires a different attitude and approach to trade successfully. For example, if you cannot stomach going to sleep with an open position in the market then you might consider day trading. On the other hand, if you have funds that you think will benefit from the appreciation of a trade over a period of some months, then a position trader is what you want to consider becoming. But no matter what style of trading you choose, be sure that your personality fits the style of trading you undertake. A personality mismatch will lead to stress and certain losses. (For more, see Invest With A Thesis.)
Step 2. Choose a broker with whom you feel comfortable but also one who offers a trading platform that is appropriate for your style of trading.
It is important to choose a broker who offers a trading platform that will allow you to do the analysis you require. Choosing a reputable broker is of paramount importance and spending time researching the differences between brokers will be very helpful. You must know each broker's policies and how he or she goes about making a market. For example, trading in the over-the-counter market or spot market is different from trading the exchange-driven markets. In choosing a broker, it is important to read the broker documentation. Know your broker's policies. Also make sure that your broker's trading platform is suitable for the analysis you want to do. For example, if you like to trade off of Fibonacci numbers, be sure the broker's platform can draw Fibonacci lines. A good broker with a poor platform, or a good platform with a poor broker, can be a problem. Make sure you get the best of both.
Step 3. Choose a methodology and then be consistent in its application.
Before you enter any market as a trader, you need to have some idea of how you will make decisions to execute your trades. You must know what information you will need in order to make the appropriate decision about whether to enter or exit a trade. Some people choose to look at the underlying fundamentals of the company or economy, and then use a chart to determine the best time to execute the trade. Others use technical analysis; as a result they will only use charts to time a trade. Remember that fundamentals drive the trend in the long term, whereas chart patterns may offer trading opportunities in the short term. Whichever methodology you choose, remember to be consistent. And be sure your methodology is adaptive. Your system should keep up with the changing dynamics of a market. (For related reading, see What is the difference between fundamental and technical analysis and Blending Technical And Fundamental Analysis.)
Step 4. Choose a longer time frame for direction analysis and a shorter time frame to time entry or exit.
Many traders get confused because of conflicting information that occurs when looking at charts in different time frames. What shows up as a buying opportunity on a weekly chart could, in fact, show up as a sell signal on an intraday chart. Therefore, if you are taking your basic trading direction from a weekly chart and using a daily chart to time entry, be sure to synchronize the two. In other words, if the weekly chart is giving you a buy signal, wait until the daily chart also confirms a buy signal. Keep your timing in sync.
Step 5. Calculate your expectancy.
Expectancy is the formula you use to determine how reliable your system is. You should go back in time and measure all your trades that were winners, versus all your trades that were losers. Then determine how profitable your winning trades were versus how much your losing trades lost.
Take a look at your last 10 trades. If you haven't made actual trades yet, go back on your chart to where your system would have indicated that you should enter and exit a trade. Determine if you would have made a profit or a loss. Write these results down. Total all your winning trades and divide the answer by the number of winning trades you made. Here is the formula:
E= [1+ (W/L)] x P – 1
where:
W = Average Winning Trade
L = Average Losing Trade
P = Percentage Win Ratio
Example:
If you made 10 trades and six of them were winning trades and four were losing trades, your percentage win ratio would be 6/10 or 60%. If your six trades made $2,400, then your average win would be $2,400/6 = $400. If your losses were $1,200, then your average loss would be $1,200/4 = $300. Apply these results to the formula and you get; E= [1+ (400/300)] x 0.6 - 1 = 0.40 or 40%. A positive 40% expectancy means that your system will return you 40 cents per dollar over the long term.
Step 6. Focus on your trades and learn to love small losses.
Once you have funded your account, the most important thing to remember is that your money is at risk. Therefore, your money should not be needed for living or to pay bills etc. Consider your trading money as if it were vacation money. Once the vacation is over your money is spent. Have the same attitude toward trading. This will psychologically prepare you to accept small losses, which is key to managing your risk. By focusing on your trades and accepting small losses rather than constantly counting your equity, you will be much more successful.
Secondly, only leverage your trades to a maximum risk of 2% of your total funds. In other words, if you have $10,000 in your trading account, never let any trade lose more than 2% of the account value, or $200. If your stops are farther away than 2% of your account, trade shorter time frames or decrease the leverage. (For further reading, see Leverage's Double-Edged Sword Need Not Cut Deep.)
Step 7. Build positive feedback loops.
A positive feedback loop is created as a result of a well-executed trade in accordance with your plan. When you plan a trade and then execute it well, you form a positive feedback pattern. Success breeds success, which in turn breeds confidence - especially if the trade is profitable. Even if you take a small loss but do so in accordance with a planned trade, then you will be building a positive feedback loop.
Step 8. Perform weekend analysis.
It is always good to prepare in advance. On the weekend, when the markets are closed, study weekly charts to look for patterns or news that could affect your trade. Perhaps a pattern is making a double top and the pundits and the news is suggesting a market reversal. This is a kind of reflexivity where the pattern could be prompting the pundits while the pundits are reinforcing the pattern. Or the pundits may be telling you that the market is about to explode. Perhaps these are pundits hoping to lure you into the market so that they can sell their positions on increased liquidity. These are the kinds of actions to look for to help you formulate your upcoming trading week. In the cool light of objectivity, you will make your best plans. Wait for your setups and learn to be patient.
If the market does not reach your point of entry, learn to sit on your hands. You might have to wait for the opportunity longer than you anticipated. If you miss a trade, remember that there will always be another. If you have patience and discipline you can become a good trader. (To learn more, see Patience Is A Trader’s Virtue.)
Step 9. Keep a printed record.
Keeping a printed record is one of the best learning tools a trader can have. Print out a chart and list all the reasons for the trade, including the fundamentals that sway your decisions. Mark the chart with your entry and your exit points. Make any relevant comments on the chart. File this record so you can refer to it over and over again. Note the emotional reasons for taking action. Did you panic? Were you too greedy? Were you full of anxiety? Note all these feelings on your record. It is only when you can objectify your trades that you will develop the mental control and discipline to execute according to your system instead of your habits.
Bottom Line
The steps above will lead you to a structured approach to trading and in return should help you become a more refined trader. Trading is an art and the only way to become increasingly proficient is through consistent and disciplined practice. Remember the expression: the harder you practice the luckier you'll get.
by Selwyn Gishen, (Contact Author | Biography)
Selwyn Gishen is a trader with more than 15 years of experience trading forex and equities for a private equity fund. For the past 35 years, he has also been a student of metaphysics, and has written a book called "Mind: How Changing Your Mind Can Change Your Life!" (2007). Gishen is the founder of FXNewsandViews.Com and the author of a forex trading guide entitled "Trading the Forex Markets: A Foundation Course for Online Traders". The course is designed to provide the trader with all the aspects of Gishen's Fusion Trading Model.
Tuesday, October 28, 2008
Prosperity…Is It Biblical? as written by Bro. Benny Hinn
The term “prosperity teaching” or “prosperity Gospel” is one of the most misunderstood and misused terms in today’s language.
I believe biblical prosperity is scriptural, and it is taught throughout the Bible. Giving to the Lord is so important that God has promised that those who give for the work of the Gospel will be blessed and protected.
Today I want to share with you what the Scriptures have to say about biblical prosperity, because I believe we are coming into a time of great abundance for the sake of the Gospel. The Gospel is being preached around the world, and a great harvest of blessings is coming to those who are supporting the cause of Christ around the world.
Prosperity Results from Righteousness and Faithfulness
The Word of God declares: “Beloved, I wish above all things that thou mayest prosper and be in health, even as thy soul prospereth” (3 John 2). Prosperity is not an accident but the result of the Word of God being in our life.
Righteousness puts us in line to receive great blessings from the Lord: “In the house of the righteous is much treasure” (Proverbs 15:6), and “By humility and the fear of the Lord are riches, and honour, and life” (Proverbs 22:4).
Faithfulness to God is the key to prosperity, and only faithfulness brings us into that place where God can begin to bless us financially: “A faithful man shall abound with blessings” (Proverbs 28:20).
The Lord has given each person certain abilities and gifts, and He expects us to be faithful with them. He expects us to tend to and nurture these abilities and gifts so we might produce fruit for His glory and kingdom!
The Word of the Lord tells us clearly that only as we keep and nurture our gifts will we be able to reap their benefits: “Whoso keepeth the fig tree shall eat the fruit thereof: so he that waiteth on his master shall be honoured” (Proverbs 27:18). As we stay faithful with the gifts God has given us, we will receive fruit in abundance.
Prosperity Results from Obedience
To receive God’s blessings and abundance, we must obey Him!
The Word of God tells us, “Keep therefore the words of this covenant, and do them, that ye may prosper in all that ye do” (Deuteronomy 29:9).
The Scriptures clearly say that it is not God’s will for any to perish, nor is it His will for any to live in sickness or poverty.
Poverty comes when we refuse the Word of God. Proverbs 13:18 declares, “Poverty and shame shall be to him that refuseth instruction: but he that regardeth reproof shall be honoured.”
But when we obey the Lord’s Word, prosperity will be ours immediately, and for all of our days: “If they obey and serve him, they shall spend their days in prosperity, and their years in pleasures” (Job 36:11).
The Word of God says clearly in Proverbs 15:6 that in the house of the righteous is much treasure, not much poverty! Poverty does not belong to the righteous. It belongs to those who disobey God. Abundance and blessings belong to God’s children.
Debt is not God’s will. In fact, it is bondage: “The rich ruleth over the poor, and the borrower is servant to the lender” (Proverbs 22:7).
The Lord wants to deliver His people from all bondage and all debt, and only as God’s people seek Him and obey Him will liberty from bondage come our way: “I love them that love me; and those that seek me early shall find me. Riches and honour are with me; yea, durable riches and righteousness.… That I may cause those that love me to inherit substance; and I will fill their treasures” (Proverbs 8:17-18, 21).
God’s Word is clear that He takes pleasure in our prosperity! He rejoices when we prosper: “Let them shout for joy, and be glad, that favour my righteous cause: yea, let them say continually, Let the Lord be magnified, which hath pleasure in the prosperity of his servant” (Psalm 35:27).
Prosperity Results from Diligence
Look at what God has given you in the way of abilities, physical assets, and spiritual blessings. Care for them and cause them to increase. God will surely bless you:
Be thou diligent to know the state of thy flocks, and look well to thy herds. For riches are not for ever: and doth the crown endure to every generation? The hay appeareth, and the tender grass sheweth itself, and herbs of the mountains are gathered. The lambs are for thy clothing, and the goats are the price of the field. And thou shalt have goats’ milk enough for thy food, for the food of thy household, and for the maintenance for thy maidens. (Proverbs 27:23-27)
As we are diligent before the Lord to nurture what He has given us, only then will we have abundant supply, for the Word of God tells us that He delights in the one who is not lagging behind in diligence: “Seest thou a man diligent in his business? he shall stand before kings; he shall not stand before mean men” (Proverbs 22:29).
Look at Joseph. He was sold as a servant then became a prisoner. But because he was diligent before God, the Lord promoted him not only to stand before a king but to be second in command.
We have another great example in the prophet Daniel. He was a prisoner of war in a heathen land, but he was diligent in serving a heathen king. Daniel, too, was promoted and ended up counseling kings.
Nehemiah, another example of diligence, was promoted from his job as cup-bearer.
God’s promotional hand is upon the diligent! Jesus told us to be faithful in little things and He will make us ruler over many things (Matthew 25:21-23). The Word of the Lord also tells us, “The hand of the diligent maketh rich” (Proverbs 10:4), and “The thoughts of the diligent tend only to plenteousness” (Proverbs 21:5).
The Lord warns that we will be blessed and prosper only as we are faithful and diligent!
Stewards must be found faithful. As you give to His work again this month, remember that it is your faithfulness to the Lord that will reap abundance.
The Word of God declares, “And God is able to make all grace abound toward you; that ye, always having all sufficiency in all things, may abound to every good work: (As it is written, He hath dispersed abroad; he hath given to the poor: his righteousness remaineth for ever)” (2 Corinthians 9:8-9).
It is the Lord who gives you seed to sow, and it is the Lord who will multiply that seed and increase the fruits of your righteousness!
The Lord will enrich you in everything to all bountifulness, which will bring Him great honor and glory in these last days around the world.
And as you give, you are declaring the Gospel to the nations of the world. You are bringing the message of salvation to multitudes throughout the earth!
The Reason for Biblical Prosperity
The reason for biblical prosperity is clear: the Gospel must be preached! This is why a wealth transfer is coming.
From Genesis to Revelation, the principles are taught.
The Lord said to Abraham, “And I will make of thee a great nation, and I will bless thee, and make thy name great; and thou shalt be a blessing” (Genesis 12:2).
God surely wants to bless you and make you a blessing to others. To finance the coming harvest, God is looking for a people whom He will bless, for the coming harvest is the winning of the lost around the world. Surely, it is on the way, and God is preparing all of us for that glorious day.
I know that the most glorious harvest of God is just around the corner, and He is preparing you and me for a glorious move! I also know that the Lord is preparing us for the most incredible move of the Holy Spirit!
Remember, everything you do today for the Lord will affect what God will do with you when that day of wealth transfer begins: “If therefore ye have not been faithful in the unrighteous mammon, who will commit to your trust the true riches?” (Luke 16:11). I believe that God Almighty is watching everything we do for Him today to see if He can trust us when that blessed move begins!
For truly how can God trust those who are not faithful with His glorious power and anointing—the invisible—unless He can trust them first with the visible?
The Lord is watching everything we do for Him today. He is looking for a people He can trust, for the day will come when true riches will be committed to believers who are faithful. These true riches not only are the invisible power of God but also the coming wealth transfer on earth that will finance the end-time harvest!
That is why our Lord Jesus said, “Give, and it shall be given unto you” (Luke 6:38). Not only will it will be given now, but I believe He also means that it will be given on that day, and “it shall be given unto you; good measure, pressed down, and shaken together, and running over, shall men give into your bosom.”
What You Do Today Will Count Toward Tomorrow
Paul the apostle declared, “But this I say, He which soweth sparingly shall reap also sparingly; and he which soweth bountifully shall reap also bountifully” (2 Corinthians 9:6), not only presently, but also on that day when the wealth transfer begins!
God Almighty will give us accordingly to the measure we sow today. That is why Jesus said, “For with the same measure that ye mete withal it shall be measured to you again” (Luke 6:38).
What we do today will count toward what happens tomorrow, in the future, and on that day when that wealth transfer starts!
So give today faithfully. Give today with obedience. Give today with all your heart, with a cheerful heart. And God has promised not only to take care of you today and tomorrow, but also to trust you one day with the wealth of the sinner.
Remember as you sow your seed, God’s promise: “I have been young, and now am old; yet have I not seen the righteous forsaken, nor his seed begging bread” (Psalm 37:25). You will never lack—no, not for one minute—because you have been giving and continue to give to the work of the Gospel.
The glorious Gospel of Jesus Christ is being preached because of faithfulness of God’s people.
Biblical Prosperity and You
Divine prosperity is God’s will for every believer!
Now it is time that we as believers obey the Lord, and even ask Him for prosperity. Like David we, too, can pray: “Save now, I beseech thee, O Lord: O Lord, I beseech thee, send now prosperity” (Psalm 118:25).
It also is time that we sow for prosperity: “Honour the Lord with thy substance, and with the firstfruits of all thine increase: So shall thy barns be filled with plenty, and thy presses shall burst out with new wine” (Proverbs 3:9-10).
God wants us to prosper because the nations are calling and God continues opening doors. We must respond now before it is too late! As God orchestrates our steps with divine perfection and sends a powerful financial outpouring, we must go forward as a mighty army, obeying the Lord’s command to “go into all the world and preach the Gospel to every creature” (Mark 16:15).
Now, more than ever, we must preach the Gospel to all the world, for Jesus said, “And this gospel of the kingdom shall be preached in all the world for a witness unto all nations; and then shall the end come” (Matthew 24:14). That time is now!
May God bless you and the seed you plant in obedience to His Word, for He promises, “Give, and it shall be given unto you; good measure, pressed down, and shaken together, and running over, shall men give into your bosom. For with the same measure that ye mete withal it shall be measured to you again” (Luke 6:38).Prosperity is biblical. Prosperity is God’s will. Most of all, prosperity is given to take the life-saving, miracle-working Gospel of Jesus Christ to the nations!
I believe biblical prosperity is scriptural, and it is taught throughout the Bible. Giving to the Lord is so important that God has promised that those who give for the work of the Gospel will be blessed and protected.
Today I want to share with you what the Scriptures have to say about biblical prosperity, because I believe we are coming into a time of great abundance for the sake of the Gospel. The Gospel is being preached around the world, and a great harvest of blessings is coming to those who are supporting the cause of Christ around the world.
Prosperity Results from Righteousness and Faithfulness
The Word of God declares: “Beloved, I wish above all things that thou mayest prosper and be in health, even as thy soul prospereth” (3 John 2). Prosperity is not an accident but the result of the Word of God being in our life.
Righteousness puts us in line to receive great blessings from the Lord: “In the house of the righteous is much treasure” (Proverbs 15:6), and “By humility and the fear of the Lord are riches, and honour, and life” (Proverbs 22:4).
Faithfulness to God is the key to prosperity, and only faithfulness brings us into that place where God can begin to bless us financially: “A faithful man shall abound with blessings” (Proverbs 28:20).
The Lord has given each person certain abilities and gifts, and He expects us to be faithful with them. He expects us to tend to and nurture these abilities and gifts so we might produce fruit for His glory and kingdom!
The Word of the Lord tells us clearly that only as we keep and nurture our gifts will we be able to reap their benefits: “Whoso keepeth the fig tree shall eat the fruit thereof: so he that waiteth on his master shall be honoured” (Proverbs 27:18). As we stay faithful with the gifts God has given us, we will receive fruit in abundance.
Prosperity Results from Obedience
To receive God’s blessings and abundance, we must obey Him!
The Word of God tells us, “Keep therefore the words of this covenant, and do them, that ye may prosper in all that ye do” (Deuteronomy 29:9).
The Scriptures clearly say that it is not God’s will for any to perish, nor is it His will for any to live in sickness or poverty.
Poverty comes when we refuse the Word of God. Proverbs 13:18 declares, “Poverty and shame shall be to him that refuseth instruction: but he that regardeth reproof shall be honoured.”
But when we obey the Lord’s Word, prosperity will be ours immediately, and for all of our days: “If they obey and serve him, they shall spend their days in prosperity, and their years in pleasures” (Job 36:11).
The Word of God says clearly in Proverbs 15:6 that in the house of the righteous is much treasure, not much poverty! Poverty does not belong to the righteous. It belongs to those who disobey God. Abundance and blessings belong to God’s children.
Debt is not God’s will. In fact, it is bondage: “The rich ruleth over the poor, and the borrower is servant to the lender” (Proverbs 22:7).
The Lord wants to deliver His people from all bondage and all debt, and only as God’s people seek Him and obey Him will liberty from bondage come our way: “I love them that love me; and those that seek me early shall find me. Riches and honour are with me; yea, durable riches and righteousness.… That I may cause those that love me to inherit substance; and I will fill their treasures” (Proverbs 8:17-18, 21).
God’s Word is clear that He takes pleasure in our prosperity! He rejoices when we prosper: “Let them shout for joy, and be glad, that favour my righteous cause: yea, let them say continually, Let the Lord be magnified, which hath pleasure in the prosperity of his servant” (Psalm 35:27).
Prosperity Results from Diligence
Look at what God has given you in the way of abilities, physical assets, and spiritual blessings. Care for them and cause them to increase. God will surely bless you:
Be thou diligent to know the state of thy flocks, and look well to thy herds. For riches are not for ever: and doth the crown endure to every generation? The hay appeareth, and the tender grass sheweth itself, and herbs of the mountains are gathered. The lambs are for thy clothing, and the goats are the price of the field. And thou shalt have goats’ milk enough for thy food, for the food of thy household, and for the maintenance for thy maidens. (Proverbs 27:23-27)
As we are diligent before the Lord to nurture what He has given us, only then will we have abundant supply, for the Word of God tells us that He delights in the one who is not lagging behind in diligence: “Seest thou a man diligent in his business? he shall stand before kings; he shall not stand before mean men” (Proverbs 22:29).
Look at Joseph. He was sold as a servant then became a prisoner. But because he was diligent before God, the Lord promoted him not only to stand before a king but to be second in command.
We have another great example in the prophet Daniel. He was a prisoner of war in a heathen land, but he was diligent in serving a heathen king. Daniel, too, was promoted and ended up counseling kings.
Nehemiah, another example of diligence, was promoted from his job as cup-bearer.
God’s promotional hand is upon the diligent! Jesus told us to be faithful in little things and He will make us ruler over many things (Matthew 25:21-23). The Word of the Lord also tells us, “The hand of the diligent maketh rich” (Proverbs 10:4), and “The thoughts of the diligent tend only to plenteousness” (Proverbs 21:5).
The Lord warns that we will be blessed and prosper only as we are faithful and diligent!
Stewards must be found faithful. As you give to His work again this month, remember that it is your faithfulness to the Lord that will reap abundance.
The Word of God declares, “And God is able to make all grace abound toward you; that ye, always having all sufficiency in all things, may abound to every good work: (As it is written, He hath dispersed abroad; he hath given to the poor: his righteousness remaineth for ever)” (2 Corinthians 9:8-9).
It is the Lord who gives you seed to sow, and it is the Lord who will multiply that seed and increase the fruits of your righteousness!
The Lord will enrich you in everything to all bountifulness, which will bring Him great honor and glory in these last days around the world.
And as you give, you are declaring the Gospel to the nations of the world. You are bringing the message of salvation to multitudes throughout the earth!
The Reason for Biblical Prosperity
The reason for biblical prosperity is clear: the Gospel must be preached! This is why a wealth transfer is coming.
From Genesis to Revelation, the principles are taught.
The Lord said to Abraham, “And I will make of thee a great nation, and I will bless thee, and make thy name great; and thou shalt be a blessing” (Genesis 12:2).
God surely wants to bless you and make you a blessing to others. To finance the coming harvest, God is looking for a people whom He will bless, for the coming harvest is the winning of the lost around the world. Surely, it is on the way, and God is preparing all of us for that glorious day.
I know that the most glorious harvest of God is just around the corner, and He is preparing you and me for a glorious move! I also know that the Lord is preparing us for the most incredible move of the Holy Spirit!
Remember, everything you do today for the Lord will affect what God will do with you when that day of wealth transfer begins: “If therefore ye have not been faithful in the unrighteous mammon, who will commit to your trust the true riches?” (Luke 16:11). I believe that God Almighty is watching everything we do for Him today to see if He can trust us when that blessed move begins!
For truly how can God trust those who are not faithful with His glorious power and anointing—the invisible—unless He can trust them first with the visible?
The Lord is watching everything we do for Him today. He is looking for a people He can trust, for the day will come when true riches will be committed to believers who are faithful. These true riches not only are the invisible power of God but also the coming wealth transfer on earth that will finance the end-time harvest!
That is why our Lord Jesus said, “Give, and it shall be given unto you” (Luke 6:38). Not only will it will be given now, but I believe He also means that it will be given on that day, and “it shall be given unto you; good measure, pressed down, and shaken together, and running over, shall men give into your bosom.”
What You Do Today Will Count Toward Tomorrow
Paul the apostle declared, “But this I say, He which soweth sparingly shall reap also sparingly; and he which soweth bountifully shall reap also bountifully” (2 Corinthians 9:6), not only presently, but also on that day when the wealth transfer begins!
God Almighty will give us accordingly to the measure we sow today. That is why Jesus said, “For with the same measure that ye mete withal it shall be measured to you again” (Luke 6:38).
What we do today will count toward what happens tomorrow, in the future, and on that day when that wealth transfer starts!
So give today faithfully. Give today with obedience. Give today with all your heart, with a cheerful heart. And God has promised not only to take care of you today and tomorrow, but also to trust you one day with the wealth of the sinner.
Remember as you sow your seed, God’s promise: “I have been young, and now am old; yet have I not seen the righteous forsaken, nor his seed begging bread” (Psalm 37:25). You will never lack—no, not for one minute—because you have been giving and continue to give to the work of the Gospel.
The glorious Gospel of Jesus Christ is being preached because of faithfulness of God’s people.
Biblical Prosperity and You
Divine prosperity is God’s will for every believer!
Now it is time that we as believers obey the Lord, and even ask Him for prosperity. Like David we, too, can pray: “Save now, I beseech thee, O Lord: O Lord, I beseech thee, send now prosperity” (Psalm 118:25).
It also is time that we sow for prosperity: “Honour the Lord with thy substance, and with the firstfruits of all thine increase: So shall thy barns be filled with plenty, and thy presses shall burst out with new wine” (Proverbs 3:9-10).
God wants us to prosper because the nations are calling and God continues opening doors. We must respond now before it is too late! As God orchestrates our steps with divine perfection and sends a powerful financial outpouring, we must go forward as a mighty army, obeying the Lord’s command to “go into all the world and preach the Gospel to every creature” (Mark 16:15).
Now, more than ever, we must preach the Gospel to all the world, for Jesus said, “And this gospel of the kingdom shall be preached in all the world for a witness unto all nations; and then shall the end come” (Matthew 24:14). That time is now!
May God bless you and the seed you plant in obedience to His Word, for He promises, “Give, and it shall be given unto you; good measure, pressed down, and shaken together, and running over, shall men give into your bosom. For with the same measure that ye mete withal it shall be measured to you again” (Luke 6:38).Prosperity is biblical. Prosperity is God’s will. Most of all, prosperity is given to take the life-saving, miracle-working Gospel of Jesus Christ to the nations!
Friday, October 24, 2008
Ni Kitu gani au Njia ipi itatufanikisha katika Maisha haya tuliyonayo?
Ulimwengu tuliopo umejaa changamoto kibao ambazo kwazo zaweza kuwa vizingiti au vishwawishi vya kufanikiwa maishani. Ni kwa namna gani sasa tunaweza kuvuka hivi vizingiti ama kutumia vishawishi/viwezeshi ili tuweze kufanikiwa katika maisha hili ndilo suala la msingi. Karibu kwa michango ya mawazo
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