Jan 23
2014

U.S. Market Trading Software For Chinese Traders

Running a stock trading software for Chinese traders, trading in US equities, is not an easy task.  There are several factors that come into play.  If you were running such an operation you would need to have all set up things like market data feeds which have the rights to be distributed internationally, high speed data lines and servers located in reputable data centers, and all of your order execution servers set up so that their orders register as valid trades to the stock exchange.

For the actual traders themselves, you would need to have your software accommodated as much as possible into the various languages.  Since there is more than one type of Chinese language, you would have to have a front end platform in the primary language where you have lots of traders.  You also would need to locate data that can be translated into Chinese as well as possible, minus the numerical data and the market symbols.

Regarding trading, you also would need to have the software be able to have the ability to make sure that the numbers translate into currency exchanges.  Even if this is to be handled on the back end with their preferred brokerage firm, they still will want to know that current intraday exposure against the current exchange rate.  This is not necessarily easy to program, so finding a reputable software which does this may be challenging.

Finally, you will want the ability to filter any stocks not permitted by the country.  China may have regulations about which symbols can be traded by their residents, and the same may apply with other countries.  By having middle and back office software which controls the symbols which are (or are not) allowed to be traded by a certain trading firm or trading account then you can confirm that you have the compliance issues under control.

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Jan 15
2014

1031 Exchanges For Oklahoma Ranches

Jim is a Texas and Oklahoma ranch broker, selling horse and hunting ranches in both states.  We talked about where there is any urgency in his industry.  In addition to those who are feeling financial pressure and subsequently need to sell an Oklahoma ranch property, there also is a subset who needs to act with urgency on the buying side.  When I asked, he told me about the 1031 exchange properties for ranches in both states.

He explained more about these financial situations and the time window permitted from the sale of one property to select up to 3 ranches within a short window of time; and from there the buying party still has a short window of additional time to purchase the primary property to minimize any tax consequences.  There are some things which you need to know about 1031 exchanges for Oklahoma and Texas ranches, so be sure to speak with experts in your area.

There are other potential tax consequences so make sure that you inform your accountant or CPA, your financial advisor (especially which set up any sort of real estate trust), and others. This way you don’t risk having something forgotten which could force you to incur a financial liability or tax consequences.

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Dec 11
2013

Use A Retirement Plan To Buy A Business

Many people with retirement plans want to put their retirement savings to use.  Often, as these people near retirement they see opportunities to buy a business either near where they live, another business in the industry in which they earned the majority of their money, or they sometimes truly see a legitimate business opportunity.

The risk, of course, is to cash in your retirement savings early and incur the tax penalty and pay the taxes on the growth + any associated fees.  For many people, this would be a huge loss of saved money before investing a single penny in the desired business.

There are ways around this which are legal so long as you maintain strict compliance.  It is a multi-part process with a trustee and other entities.  Despite it being confusing at first, having longtime veterans in this field can help you preserve some (or all) of your tax-free growth in your retirement plan like a 401(k), IRA, SIMPLE, 457 or other qualified plan.

There are several layers to this in order to stay compliant and not face penalties down the road.  You must purchase businesses which meet certain minimum financial standards and have other minimum safeguards in place.  Nonetheless it is a strategy on which it is worth getting more information, so go to this website to get more information and where to make a no-obligation call.

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Dec 04
2013

Appraising Aviation Machinery

If you work in the aviation industry then odds are you understand the magnitude of how capital-intensive the business is.  Whether you operate private charter flights, help distribute aviation parts to commercial airlines, or if you are an aviation equipment manufacturer or retailer then you know that it is big business.  One of the toughest things to do, however, is to get an honest assessment of the value of your machinery and equipment.

You may need an independent appraisal service for your items for a number of reasons.  Some of those reasons include:

  • you are getting ready to sell your business
  • you want to have an independent appraisal of the value of equipment if you intend to buy used and/or new equipment
  • you are considering buying a business in the aviation industry
  • your accountant and legal team need a certified appraisal for estate planning purposes or exit planning (transition planning) purposes
  • many other reasons

Be sure that you are using certified appraisers who understand your industry and can justify their valuations of your machinery and equipment.  This should be standard practice due to the high-dollar nature of the aviation industry.

If you need such appraisal services then here is a starting point for you:

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Dec 03
2013

Some Other Asset Management Strategies Besides Long-Short

If you like considering other strategies for increasing the odds of earning a ROI from professional money managers, then you may be considering using hedge fund managers (if you qualify) or professional asset management boutique firms.  Of course, be sure that you speak with all of your licensed financial (and possibly legal) counsel about investing money in more speculative manners.

Here are some of the asset management strategies which could be employed:

  • direct long-short equity positions
  • use of cash and fixed income instruments
  • covered option writing
  • option collars
  • arbitrage between different classes of instruments
  • arbitrage between similar instruments such as the ETF and the futures contract which it intends to represent
  • advanced position sizing and money management metrics designed to increase winning metrics and/or reduction of drawdown
  • combination of fundamental and technical analysis

These are just some of the methods to achieve this outcome.  Be sure to talk with intelligent money managers and asset management companies.  Obviously do your research and, only when you are ready, invest a smaller-than-normal amount in order for you to be comfortable with the increase in risk you are taking.

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Dec 01
2013

Nuances About Stock Trading Software

If you are looking for quality stock trading platforms which give you some of the edges that the equities trading professionals get then here are a few things to consider seeking… especially if your transaction costs (including expected slippage) are lower than the normal trading platform software:

  • Do you have built-in charting which has legitimate trading indicators and accurate functionality?  If not, you may have to buy additional charting packages which can raise your monthly costs
  • With charting indicators do you get any sort of built-in back testing or other strategy testing capabilities?
  • Do you have full equity order execution capability?
  • If you offer out on the bid/offer (or even away from the inside market) do you get any sort of liquidity adding credit?
  • Does the software have advanced intraday profit & loss metrics including real-time intraday drawdown percentages?
  • Do you get “institutional” metrics such as VWAP, intraday TICK/TRIN and similar indicators?
  • Can you get real-time customer support?
  • What about the speed of the data, and where are the platform’s data servers located?  Different location sites can affect how quickly you get your “real time” data on which to execute?
  • Can you configure “hot keys” or similar features to make you faster when you need to get into/out of a position quickly?
  • Can you execute options, futures and other trades in the same platform?
  • Can you both combine and split your profitability (open and closed) depending on the type of trading vehicle you choose?
  • Do you get charting for the non-stock positions?

Talk with those who know various stock trading platforms to find those which meet the needs of your trading strategies and meet some/all of the needs as mentioned above.

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Nov 30
2013

Where To Start For Year End Tax Deductions

If you believe that you don’t have enough tax deductions there always are some end of year strategies depending on your state and your current situation.  As always, talk with qualified licensed financial services professionals in your area to discuss your specific situation including risk tolerance, liquidity, and other elements.

Here are some starting areas for you to consider for your end of year tax deduction/reduction actions:

  • selling investments which will produce a loss the current calendar year
  • exercising stock options this year or deferring them to next year
  • paying up your property tax bill for the next year
  • student loan and tuition payments depending on the situation
  • taking advantage of energy efficiency tax credits including solar and wind energy production
  • charitable contributions which are within limits and within the deduction maximums
  • gifting
  • retirement plan contributions
  • intelligent expenses when it comes to purchasing business equipment
  • many more individual and business deductions

Of course, there could be extra state rules and national rules pertaining to you depending on the type of deductions you are seeking and your current income levels.  When it comes to tax planning and strategies to take additional deductions, rather than just tax preparation services, be sure that you speak with a CPA in your area.  Here is one such CPA serving the Collin County Texas area:

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