Do you really know where you stand financially? Many of us may think we are doing well but just how well are we really doing? Take a close look at your net worth and you will have a clear picture where you stand financially. This will be your first step in creating a financial plan.

Your net worth is your assets minus your liabilities. Preparing a net worth statement can give you several clues about areas you need to work on and what actions to take first in your financial plan.

Begin developing your net worth statement by taking inventory of your assets. Your assets include cash, investments, retirement funds, real estate, personal property, household goods and anything you on of value.

The next step is to list your liabilities. Liabilities include loans, credit card balances, taxes owed or any additional amount owed.

Now subtract you liabilities from your assets. Hopefully you are more assets than liabilities and have a positive net worth. How much net worth you should have is based on your annual income and age use this tool from CNN to compare your net worth.

Use this free net worth calculator at MSN.com.

Gordon Gekko in Wall Street said “The point is ladies and gentlemen, that greed, for the lack of a better word is good. Greed is right, greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit. Greed in all its forms; greed for life, greed for money, for love, knowledge has marked the upward surge of mankind”.

Is greed good? Greed and fear are the two emotions that are the biggest factor of failure for many stock traders. Greed and fear affect every level of stock trader from the novice to the guru. Greed leads to staying in a stock pick too long and trying gain profits that will never be there. Fear will lead traders to exiting a stock pick before their price hits, missing out on the true potential of a stock. The best stock traders are able to eliminate these emotions and capture profits and limit losses. Eliminating greed and fear is a difficult task that take practice and a good system. Developing a strong swing trade system will take time, however there are many great resources available to help you save time and money. Here are some strategies to eliminate greed and fear to ensure that you see a steady profit from your stock picks.

* Pick the right stocks at the right time

o The best stock picks for a swing trader are those with a high trading volume and have a wide range of fluctuation between high and low extremes.

* Pre-determine the point when you will enter a trade

o An entry point should be selected as a stock is moving in a downward direction and is ready to reverse towards a positive direction in a few days to a few weeks.

* Pre-determine your exit point o An exit point should be identified that takes the maximum profit of a stock with out being overly aggressive.

* Pre-determine a stop loss to minimize losses o Set a stop loss based on the amount of risk you are willing and able to take in any stock pick.

* Consider using a stock pick service to assist you in picking stocks and developing your strategy

o There are many professionals who spend countless hours developing effective strategies and selecting the best potential stock picks. Use there expertise to improve your ability to earn profits while swing trading. Let someone else spend their time and money perfecting a swing trade strategy.

Trade and stick with your stock pick strategy. Follow your strategy and you will see steady profits from your stock picks. Setting a realistic exit price and a risk reducing stop loss will eliminate the greed and fear factor that trap many traders. When setting you personal swing trade strategy remember that you can only earn as much as the market is willing to give you and be ready to cut your losses. The most successful swing traders will follow their predetermined strategy and ignore their gut.