BETA Investment Group

 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.) Sa...

 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 te...

  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 h...

 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 hav...

 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...

 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)...

 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 divide...

Bearish Reversal Patterns are universal patterns that candlesticks can follow that signify a change from an upwards movement to a downwards movement of share price. Identifying these patterns may help when trying to predict if the stock should be sold, or if there is a good buying opportunity in the future. However, it is important to remember that even though a pattern begins to form, it does not always need to finish. There is no guarantee that a pattern will follow through to the end. With that being said, here are some of the most popular Bearish Reversal Patterns: Double Top     Above is an example of the Double Top pattern. Keep in mind, there could be more "tops" other than just two, such as a Triple Top/Multiple Top, so that may affect this pattern. Some investors like this pattern because of its short-term trading opportunity and longer-term relative price. As you can see between the first and second tops, there is a slight dip with a recovery. Many investors lik...

Bullish Reversal Patterns are universal patterns that candlesticks can follow that signify a change from a downwards movement to an upwards movement of share price. Identifying these patterns may help when trying to predict if the stock is a good buy. However, it is important to remember that even though a pattern begins to form, it does not always need to finish. There is no guarantee that a pattern will follow through to the end. With that being said, here are some of the most popular Bullish Reversal Patterns: Double Bottom      Above is an example of the Double Bottom pattern. This can be identified by the two identical bottom points the share price reaches. Some investors like this pattern for its relative price, short-term trading, and long-term trading opportunities. Since the share price hits a bottom, it is most likely relatively cheap and likely has a low RSI . This allows for lots of upwards potential and profit in the long run. On the other hand, the Doubl...

   Bearish Patterns  are universal patterns that candlesticks can follow that signify a downwards movement of share price. Identifying these patterns may help when trying to predict which direction a stock price will go. However, it is important to remember that even though a pattern begins to form, it does not always need to finish. There is no guarantee that a pattern will follow through to the end.  With that being said, here are some of the most popular Bearish Patterns: Bearish Engulfing     Above is an example of a Bearish Engulfing pattern. This pattern is identified by a red candlestick that completely encases a green candlestick. As you can see in the example above, the top of the red candlestick is above the top of the green candlestick, and the bottom of the red candlestick is below the bottom of the green candlestick. This is one of the shortest Bearish patterns but it is very important for quickly determining a stock's future direction. Bear ...

  Bullish Patterns  are universal patterns that candlesticks can follow that signify an upwards movement of share price. Identifying these patterns may help when trying to predict which direction a stock price will go. However, it is important to remember that even though a pattern begins to form, it does not always need to finish. There is no guarantee that a pattern will follow through to the end.  With that being said, here are some of the most popular Bullish Patterns: Bullish Engulfing     A Bullish Engulfing  pattern is when a green candle completely encases the previous red candle. In the example above, you can see the green candle is above the top and below the bottom of its previous red candle. This is one of the shortest Bullish patterns out there, but it can be really useful for determining price direction early on. Bull Flag     A Bull Flag is another one of the most common Bullish patterns because of its quick buying and selling oppor...

 The V olume Weighted Adjusted Price (VWAP) gives the average price a stock has traded at throughout a day based on its price and volume. The VWAP is mainly used to determine a stock’s direction and valuation. Some traders like it because it is great for intraday trading as well as adjusting a stock’s price for its volume. How to Read the VWAP     Above is an example of the VWAP.  What is important to note is that in many cases, a VWAP can be used as a line of support or resistance. Many stocks may have a history of using their VWAP as these trend lines and therefore you would want to focus on this instead of drawing trend lines yourself. In the case above, the VWAP is acting first as a line of support. When the candlesticks break below the VWAP, there is a massive drop in share price. After this drop, the VWAP acts as a line of resistance and the share price has a difficult time breaking above it. If the candlesticks did break above the VWAP, you could most likely...

Bollinger Bands are envelopes that are contained between a standard deviation above and below a stock’s SMA. When a trend is strong, it will hug the edge of that direction’s standard deviation. This means if a stock is trending strongly upwards, it will hug the top standard deviation. Even more so, if the stock price moves outside the Bollinger Bands, you can expect a very strong trend in that direction. However, if the price moves directly back into the bands then it negates this trend. Using the width of the bands is very important as well. How to Read the Bollinger Bands      As you can see on the left side, the bands are widening and the uptrending begins to end. In the middle where the bands tighten, the stock price soon after shoots directly upwards and begins a new trend. This trend becomes a strong trend when it starts hugging the top standard deviation on the right. Bollinger Bands are very useful to determine a stock's direction and price strength. How to Confi...

 The Moving Average Convergence Divergence (MACD) is a technical indicator that shows the relationship between two moving averages of a stock’s price. It is calculated by subtracting a slow moving average period from a fast moving average period. There is also a Signal line which is a certain period’s EMA. Many traders use the MACD to tell direction and to determine when to buy. The green and red bars in the MACD help tell you which direction the stock is moving. Many traders buy when the MACD crosses above the signal line and sell when the MACD crosses below the signal line. How to Read the MACD          Above is an example of a MACD.  It includes points where the MACD crosses above the Signal line and indicates a buy, as well as when the MACD crosses below the Signal line and indicates a sell. The MACD is a very powerful indicator that a multitude of traders use. Many investors are big advocates for the MACD because of its utility. Not only does it...