Skip to main content

Posts

What are Mutual Funds?

 A Mutual Fund is a portfolio that consists of a pool of money gathered by multiple investors that are made to purchase different securities, such as stocks, bonds, etc.. Basically, you are investing in multiple stocks by just putting your money into one place.      In this article, we are going to talk about why one would invest in a mutual fund and the different types of mutual funds. Why Would I Invest in Mutual Funds?     There are multiple different reasons as to why one would want to invest in a mutual fund. Before getting into that, it is important to note the fees that come along with mutual funds. The Annual Operating Fee come as a percentage of the amount of money you have invested, which is usually around 1%-3%. The next is the Shareholder Fee , which are paid right when you buy/sell the mutual fund.            With that being said, let's get into the points as to why one might want to buy a mutual fund: 1.) Safety    Since a mutual fund is a group of stocks all under o
Recent posts

What are Commission-Free Stock Brokers?

 A Commission-Free Broker is an online platform in which you can trade stocks easily. For nearly all of investing history, you had to pay some sort of fee whenever you wanted to trade a stock. However, many brokerages are starting to get rid of these fees and move over to different forms of monetization.     In this article, we aim to quickly describe the basics of Commission-Free Brokers and give some of the most popular examples of them. With that being said, let's get into it: Robinhood     Robinhood  is definitely the most popular and most recognizable commission-free brokers out there. It is known for paving the way for commission-free brokers to start and is one of the most popular apps in the Apple App Store. However, Robinhood is not ad advanced compared to some of its competitors, mainly due to its lack of tools and researching information. Unlike many other brokers, Robinhood does not have a built-in screener  and does not allow you to use technical indicators on the mob

What are Futures & What are They Used For?

  Futures are contracts that track a specific index and allow an investor to trade/predict the direction a certain market is going. For example, if the S&P 500 Future is positive, then it is likely that the S&P 500 will be green in the coming trading day. This massively helps investors plan their coming positions and decide which markets are worth looking into. What are Some Examples of Futures?     The best examples of futures are the three major indexes (S&P 500, Dow Jones, Nasdaq) and commodities such as oil, natural gas, and gold.      Here is an example of how an investor might utilize futures: Let's say that Oil Futures have been positive for the past few periods of trading. An investor may recognize this and see opportunity in the oil industry. They then research into stocks that fall under the oil industry, most likely by using a screener , and finding the best that fit their trading style. Since the futures helped the investor realize how successful the oil ind

What are Screeners & How Do You Use Them?

 A screener (or scanner)  is a tool that allows you to sort through the market to find stocks with certain criteria. Just like indicators , screeners are part of your preference and just because someone else likes a screener and has success with it, it does not mean you will certainly find success with it. It is important to explore screeners and do your own research and testing to find which screeners are the best for you. In this section, I will give some basic ideas of how to find good stocks using a screener. Where Do You Find Screeners?      Many screeners must be paid for but there are some that are free to use. On top of this, when looking for a screener you want to decide if you want to use a passive or active screener. A passive screener  is always finding new stocks that fit your specific criteria, but the free ones offered often do not have as many filters available to them. An active screener  is not constantly updating but usually have more filters for their free versions.

What is Catalyst Trading? - How to Trade Upcoming Events

 Catalyst Trading is when you play off of the hype in anticipation to an event that affects a stock's price. This is a very simple way to try to capture profits in, usually, a smaller time frame than most investments. There are many different types of catalysts that can cause a stock price to increase and there are many resources to use to find these catalysts. It is important to understand that just because there is a catalyst, it does not mean that the stock price will be affected by it. When researching into different catalysts, it is clear that some provide higher returns than others. Also, it is important to research into the stock that has the catalyst. An easy way to tell if it is worth investing is looking into that specific stock's previous catalysts. If that stock has previously reacted positively to catalysts, then it is reasonable to assume it will do so again.  With that being said, let's look into some different types of catalysts that are easy to track: Earni

What are ETFs & How Do You Trade Them?

 An Exchange Traded Fund (ETF) is similar to a Mutual Fund in the fact that it is a group of stocks that you can buy through one ticker symbol. However, ETFs usually often contain stocks that all have something in common (Such as an index, market, etc.). They are popular for investors who want to trade both in the long-term and the short-term, depending on which ETF you choose to invest in. In this article, we will discuss different types of ETFs and how to trade some of them efficiently. Index ETFs     One of the most common ETFs that are used/recommended by many investors are Index ETFs. Index ETFs  are a group of stocks that are included in one popular index that you can invest in, basically allowing you to invest in an index. One of the most common Index ETFs is the S&P 500 ETF. Three of the most popular S&P 500 ETFs are: 1.)  SPDR S&P 500 ETF Trust (SPY) 2.)  Vanguard S&P 500 ETF (VOO) 3.)   iShares Core S&P 500 ETF (IVV)     Many investors hold onto these ETF

Trading Different Time Frames - Day Trading vs. Swing Trading vs. Investing

 When starting to trade, it is required to decide which time frame you would like to trade. When you hear of people "investing in the stock market" (such as a retirement account), this is most likely long-term investing. However, many people are starting to utilize short-term trading, such as day trading and swing trading, as a source of income or even a hobby. In this article, we will explore how to decide which time frame is best for you and how to do so efficiently. Long-Term Investing     Long-Term Investing is the most common type of investing in the stock market and usually is any investment over 6 months. The main purpose for long-term investing is for growth and does not require much attention. This is because most investments in a long-term investor's portfolio are usually safe, blue chip stocks that have a very high chance of increasing over the long-run.     A common strategy for long-term investors is to buy after a market dip and reinvest the dividends they r