Money Archives

Latency Arbitrage: A Manipulative Stock Trading Tactic

What is latency arbitrage? How is it used against slower trading investors in the stock market? According to Michael Lewis, the author of Flash Boys, latency arbitrage is one of the many tactics that high-frequency traders (HF) use to get an unfair advantage over average traders in the market. By using different latency speeds, HF traders can buy a stock and then sell it for a much higher price in a matter of seconds. Let’s look at why Lewis believes latency arbitrage is a problem in stock trading, and why others disagree with him.

The Principles of Management Accounting Are Outdated

What is management accounting? What are the three principles of management accounting? According to Mike Michalowicz, the author of Profit First, traditional management accounting has three basic principles. These principles have been used for years, and Michalowicz believes they are outdated. Here’s an overview of traditional management accounting principles, according to Michalowicz.

Why Traditional Accounting Methods Don’t Work

Are you still using traditional accounting methods in your business? Why don’t these methods lead to long-term success? According to Mike Michalowicz, the author of Profit First, the traditional methods of business accounting don’t work in the long term. He says that the logic of traditional accounting clashes with the natural ways people think and make decisions. Here are the four reasons why traditional accounting doesn’t work.

How to Assess the Financial Health of a Company

Is your business financially healthy? How can you assess the financial health of a company? In his book Profit First, business makeover specialist Mike Michalowicz explains how to assess the financial health of your company using the allocation percentage equation. He also provides a table of what a healthy business should look like in terms of allocation percentages for businesses of various sizes. Here’s how to assess your company’s financial health, according to Michalowicz.

The Profit First Method: The Key Tenets Explained

What is the Profit First method? Why does entrepreneur Mike Michalowicz believe the traditional accounting method doesn’t work? In his book Profit First, Michalowicz asserts that traditional business accounting methods don’t align with the way people think. That’s why he put together a new method that will help business owners reach long-term success. Keep reading to learn about the four main tenets of the Profit First method as well as how they work in harmony with the natural ways people think and make decisions.

How to Evaluate Your Product’s Profitability Potential

Do you have a business idea in mind but aren’t sure whether it has profitability potential? What are some things you should consider before putting your idea in motion? When you come up with a product idea, you might be tempted to jump right into development, without carefully considering whether and how profitable the venture will be. It’s important to resist that temptation and take some time into putting your assumptions to the test. Here are some things to consider before you jump into development.

The 7 Bank Accounts Your Business Should Have

Why should you have 7 bank accounts for your business? What should each account be designated to? Mike Michalowicz, author, entrepreneur, and business makeover specialist, says that every business owner should have 7 bank accounts. He asserts that having your money organized into several designated accounts works better than having spreadsheets or financial software. Here’s how each of your bank accounts should be used.

The 4 Poverty Remedies From The Bottom Billion

What poverty remedies can the West provide to developing nations? What mistakes do Western countries often make when trying to provide aid? In his book The Bottom Billion, economist Paul Collier proposes four ways the West can assist poor nations. His suggestions are foreign aid, military intervention, laws and charters, and trade policies. Let’s look at each one of Collier’s poverty remedies in detail.

Profit First: Review, Background, and Critical Reception

Looking for a Profit First review? How was the book received by readers and critics? Mike Michalowicz’s Profit First criticizes traditional business accounting methods by claiming that they are unintuitive, and that their unintuitive nature leads many entrepreneurs to failure. He then outlines an alternate accounting system, which he calls the Profit First method. Here’s a review and background of Profit First by Mike Michalowicz.

How to Manage Your Finances: The Profit First Method

Do you want to learn how to manage your finances? How can you apply the Profit First method to your personal finances? The Profit First method was created by entrepreneur Mike Michalowicz to help businesses succeed in the long term. However, the three principles of the Profit First method can be applied to your personal finances to help you get out of debt and save money. Keep reading to learn how to manage your finances and increase your financial stability by following Mike Michalowicz’s Profit First method.