How to endure financial crisis? Part 2
we Continue to trim the sails to the wind during financial crisis. Except iron nerves, competent and long-term investments and ability to choose different types of capital investments, there are some more kinds of activity capable at their correct application to keep (or at least not to rastrynkat) your capital.
the Economic crisis (especially began it when rates on the credits did not grow yet and banks do not lay down draconian conditions and restrictions) - the best time to take the credit. The currency of the credit has to be weak, falling in relation to others. Only in this case the credit is not an overpayment for impatient “ I want to have everything and at once, here and now “ and favorable investment of money. Only do not forget about the old rule: the money taken on credit has to earn for the percent. (For example, the apartment is bought on tick and it is rented - then the probability to become the debtor pursued by the creditor decreases many times.)
5. Loaning up.
If over your head a sword of Damocles any credit and currency in which it is taken already hangs, continues to become stronger and steadily grows up (for example, euro) and there are all bases to believe that the next 3 - 5 years it will eat with sense to change it for dollar. The main thing, is correct to calculate all percent, expenses and the commissions connected with loaning up as a result not to remain in a bigger hole, than before all this vanity. Expenses on loaning up can make up to 5 percent from credit cost - therefore will be favorable, generally change of currency of long-term and expensive credits.
6. Stock market game.
Word “ game “ during financial crisis sounds, to put it mildly, it is irrelevant. At traders with a small stock of money on the account very high probability to take off from game during crisis when short-term rate fluctuations are rather big. To play on short temporary intervals, it is necessary to be or to buy by very prudent and informed on unofficial squabbles financier, or the lucky who, without knowing what creates, manages on a minimum and to sell on a maximum. It is a pity that such luck brings revaluation of own abilities and as result, still big losses.
At a small amount of a resource on the account (and it is unimportant in what currency it is expressed) if the rate fluctuations which are rather expressed (and during crisis small amplitudes of rate fluctuations of currencies are not characteristic), the probability of excess of a limit increases - and the trader automatically takes off from the market, fixing losses.
you put on the account 150 dollars, at a shoulder 1:100 on your account already of 15000 dollars, (this standard shoulder designating that, having 100 dollars on the account, to you grant the right to dispose of the sum in 100 times more, that is 10000 dollars).
You buy in the middle of October of 10000 units of currency at the price 1. The 4000th dollar for euro. At the end of October you plan to sell them on 1. 4400 dollars for euro. The bought 10000 euros cost 14000 dollars, and at the end of October already of 14400 dollars that gives 400 dollars of profit (do not forget to subtract commission charges from this sum) - if everything goes exactly as you planned.
But if euro ratio - dollar changes in the opposite direction, for example, euro will fall to 1. 365 for dollar - that you will lose 350 dollars (and plus the commission of the exchange - it should be paid regardless of your progress or failures). to
If at the same time on the account you have only small sum (there were 150 dollars, 140 spent for purchase of euro, there were 10), then a question of whether to sell currency at this price or to wait till the best times, will not stand at all. You it is automatically thrown out from game, having recorded a loss.
During crisis the market hardly gives in to short-term forecasts. And more long-term purchases require a large supply of durability. Therefore there are 2 exits: or always to have on the account the money necessary for a covering of possible temporary declines in rates (so far you do not make the return sale or you will not be induced her to do automatically owing to the insufficient sum on the account, falling of a course will not yield a loss), or not to play crisis time. Otherwise there is every chance again to start from scratch.
If you manage to earn from short-term trends - I take off before you a hat, you are able “ to saddle “ even wind.
7. Choice of actions. and are used by
of the Stock of the companies which are on sale at the exchange in short-term transactions, will deliver to the owners and the staff of the company much “ cheerful “ minutes and a gray hair in the head. During financial crisis such actions can make sharp price fluctuations that does not add tranquility to their owners. And if shares of the company tend to stable decrease within 6 - 9 months, it can affect also ordinary employees: while the cost of assets of the company decreased by 10 - 30 percent, to speak about the awards, salary increase and other pleasant things capable to facilitate and endure financial crisis and inflation, it is not necessary. And the probability to be dismissed or reduced considerably increases. And a family it is necessary to feed all the same.
Good luck to you. Seven feet near Kiel and a fair wind - that with the smallest losses (or even with profit!) to recover from financial crisis.