What are Common Questions about Stocks?
People tend to focus on the mystery of the ‘get-rich-quick’ stock market when they start asking questions about stocks, but there are also good questions among them. The question most people have is, “Can I get rich just buying low and selling high?” And the answer, of course, is “Yes, absolutely!” The caveat, however, is knowing when the stock price is low and when it will peak. In stock investing it is often said that hindsight is 20/20, so it is infinitely easier in retrospect to identify times when someone should have bought or sold shares and reaped the maximum possible gains from their investment. Continue reading...
What are the Expenses Associated with Buying and Holding an Annuity?
Annuities are generally the most costly financial product, because the investor has to pay fees/expenses in order to secure the insurance guarantees offered. Investors should take care to examine and understand all of the fees and expenses associated with annuities before purchasing. Many annuities are sold by insurance salesmen or commission-based advisors who will receive a commission around 5% or more. These charges are not always apparent to you up front, as they do not usually come out of your actual principal according to your account balance. Continue reading...
Learn Forex Trading
FOREX is an international market which allows participants to exchange various currencies at the current rates of exchange and in the future. Forex trading can be profitable but it can also be risky. The daily volume of FOREX is about 3 trillion dollars, which dwarfs equity trading internationally in terms of daily volume, being somewhere around $30 billion. With so much movement and liquidity, it can also dwarf equity markets in terms of volatility. This can present a large amount of risk if investors are not knowledgeable and prepared to hedge or exit their positions. Nothing should be invested In Forex positions that an investor cannot stand to lose. Continue reading...
If I Want to Establish a SEP IRA, Do I Have to Establish One for All Employees of My Business?
All employees that meet minimum eligibility criteria must be included in a SEP IRA arrangement. If you decide to establish a SEP IRA, every eligible employee must be given a SEP IRA account to receive employer contributions. An employer is able to expand eligibility but cannot ignore the minimum eligibility rules. If an employee is over 21, has worked at the business in 3 of the last 5 years, and has earned over $600 in the most recent year. Continue reading...
What are My Self-Employed 401(k) Investment Options?
As with other retirement plans, this will mostly depend on the options available to you through your custodian. Solo 401(k)s will have an array of asset exposure available to you, but it may come only in the form of mutual funds. This is not unlike many larger 401(k)s. The way these plans are bundled as simple and straightforward products, without so many bells and whistles that they will attract the attention of the IRS, may cause them to be slightly more plain vanilla than the options available in some 401(k)s. Continue reading...
What is Profit and Loss (P&L) Statement?
A Profit and Loss Statement, also referred to as an “income statement,” is a corporate statement that summarizes the revenues, costs and expenses incurred by a company during a specific time period, such as a quarter or a fiscal year. The main difference between a P&L statement and a balance sheet is that the P&L is designed to show changes in line items over the period analyzed, versus a balance sheet which simply shows a comprehensive snapshot of a company’s asset and liabilities on a set date. Continue reading...
What is Unsystematic Risk?
Unsystematic risk is idiosyncratic or unique risk that does not reflect a direct correlation with the risk present in the market, or systematic risk. Most securities and portfolios experience risk and variations which are not attributable to the market as a whole, and this is known as unsystematic risk. Systematic risk, on the other hand, is the risk borne by all investors in the market, where broad changes in the market cannot be avoided through diversification of a portfolio. Continue reading...
What is swing trading?
Swing trading is active trading that is not frequent enough to be categorized as day-trading but generally follows short-term trends. Swing trading can describe long or short positions traded on upswings and downswings of a security or index, and these positions are generally held from one day to two weeks. Generally, these are going to be momentum investments which are entered into after there seems to be confirmation of a trend, and the positions are closed out when there seems to be confirmation that the trend has ended. Continue reading...
Should I Trust an Article Such as “Five Best Ways To Invest For Income?”
Yes and no. Avoid putting too much faith in “best” lists, but realize that at least three of these are probably going to irrefutable and fundamentally sound bits of advice, and probably delivered in a timely manner. Generally speaking, there is no such thing as the “best ways” to invest. However, such articles can help you to land on some timely strategies that you may not have acted on without prompting. Continue reading...
What are Telecom Stocks?
Telecom is short for telecommunication, and it includes companies involved in the ever-important business of communication. These companies created the infrastructure that allows data to be sent anywhere in the world, which now includes wireless operators, satellite companies, cable companies and Internet service providers. Companies in the wireless business are perhaps the most relevant and competitive today. Continue reading...