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Do You Have A Back Up Plan?


dhanpreet

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I know a woman in her sixties. She worked for a company for a little more than a decade as an administration and office assistant for a staff of one hundred sales people, who loved her dearly. She always made sure all the faxes got to their desks; the stationery stock was full and each staff member had what he needed.

 

Beyond her job description, she was like a mother to all of them: making sure the toilets got cleaned, old food was removed from the fridge and decorating the entire floor which the department occupied. She worked hard and never complained. She was always smiling, friendly and polite.

 

She felt good about being a 'mother' to all the people who entered and left that department. She was comfortable with her position. No-one else could do the things she did. And she did them better than anyone else in the building.

 

One day, she went to work as usual. After doing her morning chores, she was invited to the office, where she was told her services were no longer needed. The company was undergoing certain cost-cutting measures in every department and unfortunately, her role would have to be sacrificed. She was then asked to leave the building as soon as possible. She was assured, however, that before having made the decision, every attempt had been made to find a position for her somewhere within the company.

 

She has financial obligations to fulfil and she still hasn't saved enough for her retirement. She still has credit to pay off and she was saving for a trip overseas, something she never got around to doing in her younger years. She wanted to save up to establish a book-selling business. Suddenly, she would have to re-evaluate her plans. Losing a job and nearing retirement age, she will have to relinquish some of the things she had dreamt for herself.

 

I am sure you have heard hundreds of similar stories like these. Just five months before writing this article, I had already read about companies cutting costs by laying off jobs. Their main reason is to remain competitive, so they would not have to raise the prices they charge to their customers. Companies are outsourcing jobs overseas because the labour costs in other countries are relatively cheap compared to the local currency and sometimes because of significant skills or technological advantages. Other businesses lessen staff when sales drop and they can no longer sustain to pay the same number of people they have on their payroll. No organisation — not even a big, established business — is immune from the need to become leaner in an ever-increasingly competitive market environment.

 

In the past, most people believed the companies or the governments — whom they work for — could guarantee them a job for life. Nowadays, I think more and more people are becoming increasingly aware that expecting to have a job-for-life is unrealistic. It is a dire predicament to be working everyday, taking care of someone else's business and realising that at the end of one's career, years of service do not guarantee one's well-being. Because of this, I believe that people are now looking to improve their chances of having enough funds to meet their needs and wants after retirement.

 

I think there is a dawning awareness that the ultimate responsibility for one's own well-being lies within each individual. People are beginning to understand that their boss or the company they work for does not have an obligation nor the ability to ensure that they are taken care of when they finish working for them.

 

According to an article written by John Roskam(*), based on a forthcoming Institute of Public Affairs (IPA) Backgrounder on self-employment and the self-reliant society, the trend to self-employment will speed up in coming decades. Five reasons explain this change:

 

1. Our societies will continue to develop knowledge-intensive and service industries.

 

2. Jobs of the future need more education; however, better educated workers might opt to work for themselves instead.

 

3. Older workers are more comfortable with being self-employed than the younger workers, which might indicate individuals would prefer to work for themselves as they grow older.

 

4. Individuals want more control and flexibility over their working arrangements and self-employment allows for this.

 

5. Individuals are more willing to assume responsibility for the decisions that affect their lives and their families.

 

In addition to this trend, more and more people are now seeking to gain greater control over their financial assets.

 

What we can all learn from this article is the idea that we do not have to rely on our employers to be there for us when we desperately need them to pay us our periodic paycheques at the end of our working days. There are alternatives and, while we still can, I believe we owe it to ourselves and our families to have a back-up plan and look at every single opportunity available. The question for you is this: Do you have a back-up plan?

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So what relation these article with forex trading. i am still confuse. but if make comparison, back up plan in forex maybe about money management. yes, we should have a back up money and not use our money or saving to trading in forex, especially for newbie or beginner. possibility to loss all the money is high because forex is risky and if don't have a proper knowledge, difficult to generate good profit.

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In trading, backup plans do not get you profits. all that one needs is a plan that is very simple to understand, simple to implement. there is no necessity for a second one if the first plan fails. if your first plan fails, there is no guarantee that the back up plan, the second will definitely succeed. The best plan is always the one which is very flexible, understandable, executable. for that the person (trader) Act, cut loss where it needs to be. Stay out if the markets are volatile. Learn to cultivate certain habits in trading that are beneficial.Other aspects which a trader should do is to Save as he earns. He should put away some money as savings/investments which grow at a moderate rate over a longer period. Irrespective of what he earns, he must always make sure to save/invest for himself first. the rest of the needs come later.

 

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According to an article written by John Roskam(*), based on a forthcoming Institute of Public Affairs (IPA) Backgrounder on self-employment and the self-reliant society, the trend to self-employment will speed up in coming decades. Five reasons explain this change:

i agree with you man 100%... people are already starting to look foward to self employment and jobs at home...this is growing amazingly and will grow even more on the years most of this is using computers, meaning the internet.

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So far, I don't have any backup plan. If my major plan is not working well, so i will depend on my risk management strategy.

Mostly i used Stop Loss Strategy as my last protection, I don't know if Stop Loss could be classified as backup plan or not.

It's hard to make one trading plan, so I still couldn't make another trading plan.

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  • 1 year later...

many traders will be experience difficulties initially when speaking about plan, back up plan or in other word method that really worked to them. a simple plan or method is the best one than choose a complicated method that make a trader become confuse. and besides simple, a plan or method also pretty adaptable to the various market situation.

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  • 10 months later...

I think its an excellent post since we all need a back up plan. Its not wise to not have one since our society is continually increasing in cost and retirement is hard so we all need a back up plan. We don't want to live in a low quality nursing home and get abused by the jerky staff. There are so many low quality things in life as we get older and money will always help us so do put away saving and have a home and have plenty of education cause no employers want to hire someone without an education. 

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I don't have a back up plan. my plan has been fix. I am just need to take further research to found the rooms for improvement. as long as I am doesn't found the chance to make my plan improve more, I will stick with my current plan. discipline is necessary and having a back up just shows that we are doubt still with our current plan.

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IN this kind of business does not having a backup plan is a very risky thing to do, the nature of forex is risky so that is why we need backup plan so then when we trade later we could press the risk to lower step and even making more profit if our main strategy does not work.

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  • 5 months later...

Of course i have a backup plan since that is a serious matter to me sooner and later. My backup plan is use Stop Loss :D that is the most effective way to me for reduce my loss. Well loss and profit has been calculated what i need to do is only find the right time to open a position and analyze the news, that is all nothing more.

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The backup plans means something that you need to do if something is going wrong, i think by cut loss is a good idea or by reverse some of your capital and don't trade all of that in one go would be so much useful. I know this is some kind of conventional backup plan and most of the people can do that but not all realized  it.

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well i will say there before you start doing anything you need to have a backup plan which will help you when something is getting difficult to you ,so it is good to have a back up plan when doing things.

 

It is some valuable advice. Now looking back I can see I did not have a back up plan. And at this stage of life I feel the need for it. If there was one then things might be different somehow.

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  • 4 weeks later...

Someone who want to be a trader must know the right time to act and also to have a backup plan. It is important plan to lower the risk and make our trading for whole easier. I think someone with backup plan even lose few times won't have much worry, they are a trader who systematically use the plan to backup theirself so they won't suffer huge setback.

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Where in we run this forex trading is a thing where we must run is to continue to always in doing learning on the run, forex business is not an instant business on the run, but where forex business is a very big risk that exists, so traders continue to do the learning process to be able we can trade more able to earn profits consistently in real trading with instaforex

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  • 8 months later...

Not exactly, as I don’t ever feel like needing to have it with a broker like FreshForex around. There is just about everything available here with this lovely company. From zero spreads to high leverages, bonuses, rebate programs and what not! So, what else one needs as backup when there is everything available at once!

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