How Can You Buy a Stock?
There are many services online and custodians that that can facilitate stock trades. Anybody can buy shares of a publicly traded company, but it must be done through a brokerage firm or a custodian. Brokers and brokerage firms act as middle men between the buyer and the seller. Some brokerage houses such as E-Trade, Ameritrade, or Charles Schwab offer low-cost services online to anyone with a checking account, and offer no personal advice. Other brokerage firms focus on the human element, offering investment advice and making additional money through long-term client relationships and the commissions and fees that result from portfolio management. Continue reading...
Where Can I Get Help With My 401(k) Investments?
Not every plan will have an advisor ready to give you personalized attention, but some do. For those that don’t, there are plenty of resources out there. There are countless sources out there, all offering “the best” information about how to manage your 401(k) investments, but very few offer a smart, logical, and practical approach. Most of the time, the advice you get will tell you to diversify among various asset classes, but will never give you specific allocations. It is simply essential to actively monitor your investments and take the reins of your financial future. Continue reading...
Can I Get Exposure to Virtual Currency Through ETFs, Mutual funds, or Stocks?
While there aren’t that many ways to use institutional-level, regulated vehicles to get exposure to bitcoin and other cryptocurrencies, there are some, and the market will likely expand. Money managers are finding ways to offer managed investments that offer exposure to cryptocurrencies, despite the hurdles presented by regulators and skepticism from large financial companies. On the over-the-counter market OTCQX, you can buy shares of the Bitcoin Investment Trust from Grayscale (Nasdaq: GBTC). This fund has seen massive gains recently but does come with a 2% fee. The Chicago Mercantile Exchange (CME) has stated that it would like to start trading cryptocurrency futures, but it may be a little time before this becomes a reality, due to significant red tape and guidance needed regarding cryptocurrencies. Continue reading...
How to Mine Litecoin and other Altcoins?
It used to be that litecoin mining could only be done by GPU, but now ASIC machines are getting all the glory. For a time, new miners preferred to mine litecoin instead of bitcoin because ASIC miners had rendered old-fashioned GPU mining for Bitcoin unprofitable. During that time, when ASIC machines had not be designed for Litecoin Scrypt mining, anyone with a good enough GPU could profitably mine litecoin with the same computer they used at home, while they were off at work or asleep not using it. If you aren’t aware, GPUs (graphics cards) compute the kinds of functions necessary for mining at many times the speed that CPUs (core processors) alone would. Continue reading...
How to use Simple Moving Averages in trading
Investors and traders are in constant search of tools they can use to gain any possible advantages from shifting markets. Technical indicators are especially vital parts of any trader’s kit, and few indicators are as consistent (and dependable) as moving averages. A Simple Moving Average (SMA) is a technical indicator that can help traders determine whether a bull or bear trend will continue or reverse course. It typically adds up closing prices for a given time period, then divides that figure by the number of time periods used for the average. Continue reading...
What Should I Do With a Lump-Sum Distribution From My Pension Plan?
We encourage you to be responsible and keep the future in mind. The first thing to keep in mind is that it’s very easy to spend a lump sum right away without thinking about the consequences. While the monthly payment option protects your money from overspending, a lump sum should be handled with frugality and practicality in mind. A large portion of this amount should be invested safely and wisely, particularly if you are very near to your own retirement age, and you do not have time to ride out market fluctuations. When investing, you should consider a conservative estimate of you and your spouse’s life expectancies weighed against your annual income needs, adjusted for rising healthcare costs. Continue reading...
What is Total Enterprise Value?
Enterprise value is an amount that would have to be paid for a company to acquire all of its equity and debt. It is notable that cash and cash equivalents are left out of this equation since that amount is netted out of a cash purchase. The basic formula for enterprise value is market capitalization + debt obligations and any minority interests or preferred shares. This regularly appears in the numerator position in the EV/EBITDA ratio. Often investors can just look at the market capitalization of a company to get an estimation of the size of the company. Continue reading...
What are index futures?
Index futures are futures contracts written on an index in which a large position can be held with a relatively small margin requirement. Index futures can be used for hedging or speculation. A "good faith" initial margin deposit (also called a performance bond) of a fraction of the contract size is all that is required to hold a substantial position, with a notional value worth significantly more than the amount invested. Continue reading...
What is a Preferred Stock?
Preferred stock are dividend-paying equity shares issued by corporations, which pays a dividend with a higher priority than common stock, but lacks the voting rights that come with common stock. Preferred stock is very similar to a bond, because it will often be issued to raise capital for projects, and dividends (or interest) are expected to be paid regularly by the issuing company, but it still experiences the appreciation (and depreciation) of equity shares. Continue reading...
Can I choose good investments?
There’s no reason why you shouldn’t be able to choose investments that are suitable and beneficial for you, without a personal investment advisor, if you’re willing to learn. There is an abundance of information out there, and if you have some discernment you are likely to be able to find investments which will serve their intended purposes for you. You may have heard that there are different investment objectives: preservation of capital (avoiding the risk of losing money - especially which keeps up with inflation), growth, income, and mixtures of these. Continue reading...