New answers tagged investing
1
It really depends on who you broker with and how they operate. Consider that you probably use Robinhood, E-trade, or TD Ameritrade because you account value is not that high, I would venture out and say they would use your cash first.
Generally speaking, it is better for them to use up your cash first because it means that they don't have to waste their ...
4
You could do what littleadv said above but there are also other methods to protect yourself which could be more beneficial.
Firstly, addressing you point about sort of a gut feeling or reading articles about predicting if a company is going to beat earnings or not, earnings is simply an estimate made by some "educated" analysts. Anyone who can make more ...
1
Looking at the question and some of the comments, I think you would need to look into backtesting. Because what you describe is a set algorithm (a program can run this portfolio), you can easily backtest everything if you have the right datasets. Assuming you can do basic programming/can learn quickly, I would recommend Quantopian which is generally used to ...
0
It almost never happens because if it did too often, they would lose customers. The only thing that you need to worry about is the first case of system outage where they go down and can't operate normally. It is to their benefit to execute your order to the best of their ability (Most of these companies will also have things in their terms which state that ...
-1
The value of a stock is usually based on the expectation of future dividends.
While a company is growing, it may not be paying a dividend (instead it would be using the money to expand), however by the time it gets to a point where it no longer needs to grow, it should begin to pay a dividend and/or buy back stock. If the company buys back stock it has ...
2
Quite simply, any marketable item (including a company or share of stock in a company) is worth only what people are willing to pay for it.
That's why there is a stock market. Literally every trade made is because there is a seller with an "ask" price, i.e. "I want to sell my share of XYZ for $100", and someone is willing to buy that share for that amount. ...
5
The company is earning more money, not the people who own the stocks.
The people who own the stock OWN THE COMPANY. What you think stocks are? All the shares together are 100% of the ownership.
So, that is your misunderstanding.
0
When you change from one ETF to another, there's always a difference in either investments or in management, so there are no perfect substitutes. There's this tool to look the historical correlation of price changes between assets (like two actively-managed funds):
https://www.portfoliovisualizer.com/asset-correlations
For index-tracking ETFs, it helps to ...
3
The short answer is that corrections occur when there is an aggregate of much more selling volume than buying volume.
What happened in December? Many investors, traders and institutions looked at all of the news out there and they ran for the door. Much of it was already known. Much of the reaction was the opposite of FOMO (Fear Of Missing Out). There ...
3
This is anecdotal.
I invested $2,000 in Prosper loans in 2008. My annualized returns were -0.39%. Of 40 loans I made, 13 were charged off, and 27 were repaid in full. I deposited $2,000 and withdrew $2,012.16, including a $25 promotional signup bonus. I never had any problems with withdrawals.
0
The different between 'stop' and 'stop limit' is very simple for most exchanges.
A regular stop order has a price, which when penetrated is submitted as a regular market order (sell at market for a long position). This means sell at any price on the market. It ensures that you will be exited in any case but you might not get the best price.
A stop limit ...
0
Maybe it is enough on FX market - you can buy indices starting from 1/10 @ some brokers - for example famous S&P500 worth aprox. $2900, so smallest amount would be $290 and @ leverage 20 you need around $15 to open this position (you may have account in GPB and do not care about exchange rates).
Yes it is very dangerous market, but if you buy ETF similar ...
2
Putting funds into a 2025 target date fund (TDF) is certainly better than leaving it in your bank account, so moving it there today wouldn't be silly at all. However, since you'd be using a taxable account, there are probably better products designed specifically for taxable accounts than TDFs. But again, something is better nothing, so don't spend too much ...
3
Obviously I'm assuming you don't have any medium- or high-interest debt or you would already have paid it off.
The only tax-advantaged accounts you mention are IRAs. What about a 401(k) or similar, or a health savings account? Does your employer offer such plans? Sometimes they offer free money (match).
The contribution limits on IRAs alone often don't ...
-1
Consider the following options:
A Wealthfront 2.3% APR bank account
Investing in bond ETFs through TD Ameritrade, like BND or JNK
Crowdfunding sites where you can earn 5-8% interest.
Hope this helps.
1
Bonds are less risky, so having them in your portfolio is a "hedge" against market downturns. However, that's largely psychological; if you really want to lower your risk, you should just keep some of your portfolio as cash.
Another justification for them is that they are considered a separate "asset class", which means, among other things, that the ...
1
I think that Investopedia is the most comprehensive source of investment information with which you can build a broad base of basic financial literacy. Beyond that, you're going to have to delve into more detailed books.
8
If you have bonds in your portfolio and a proper process for periodically rebalancing to keep the proportion invested in bonds constant, then that process will automatically mean that you invest during a dip in the market. If equities fall, but the less volatile and to a degree counter-cyclical bonds do not, then the proportion of your portfolio invested in ...
2
Bonds are usefull because you get more income than for shorter instruments and have a guaranteed repayment.
You know how they say to keep 5 years reserve upon retirement so you do not have to sell stocks during a market crash? Bonds can be staggered to give you yearly payback (just buy bonds with 1,2,3,4,5 years expiration) and give a better return than ...
4
What is the purpose of bonds within an investment portfolio?
https://www.goodfinancialcents.com/bonds-vs-stocks
"Investment diversification: Because bonds pay a fixed rate of interest and guarantee principal payment at the end of the term, they’re generally considered safer than stocks, typically held as a diversification to stocks in a well-balanced ...
2
From what I understand those 2 are separate funds that just happen to track the same equity. Both the total shares available for both as well as total AUM(assets under management) are different.
Keeping that in mind you can see why shares of each have different pricing as they represent different notional ownership of the net asset value (NAV) of each ETF.
...
8
That calculator presumes that the stock market will increase every month. It doesn't.
I would still have to take into consideration on how much of % the loan would be and subtract it. But you haven't. A 6% rate on personal loans isn't out of the question, and it might be higher.
Instead of hypothetical growth numbers, use real statistics for the past two ...
1
The oposite end of the blue line to the current possition of the arrow would represent the price at which the stock openned at for that day. So the total length of the plue line represents how far the current price is away from the open.
And if the arrow is to the left side of the blue line it means the current price is below the openning price. Conversly ...
0
Yes, there are some simple steps everyone can do. Of course for people without enough experience in investment analysis it can be hard at first to get to the right decision, but it definitely does not require any specific skills or education. For example here is a possible procedure - check if the company is public (this is needed in order to have more ...
0
This kind of strategy won't work because you are dealing with situation where you have absolutely no control over what is going on behind the scene. The chances that you will get your money back plus some earnings decrease exponentially with time you stay "invested". You don't know and you can't know (unless you are an insider) how long the ponzi scheme will ...
1
There are some promising investments in this field but most of them are absolute scam, trying to exploit the positive attitude toward this field from uneducated and not sophisticated investors. Every time you make a decision to invest your money in a specific stock, you should make a clear and very detailed due diligence on the company you want to invest. If ...
1
There are 2 things:
Laws in general.
The terms of the convertible note. It would be a very stupid lawyer writing up the note (or checking it from the other side) that would ignore a trivial fact like this, so if laws do not cover it, then - well - obviously the lawyers better have prepared for this.
And as we do not have the text of the note - yeah, no ...
2
TLDNR links. Here is how the orders work:
The purpose of a Stop order is to buy or sell at the market if the trigger price is hit or penetrated. There's no guarantee of a specific execution price - it may execute significantly away from the stop price.
A Sell Stop order is always placed below the current market price and is typically used to limit a ...
0
After researching, further, I was able to find Portfolio Visualizer, a very cool tool!
I hope this helps anyone else looking for the same thing.
4
Your question about when it makes sense to stop paying in depends on three things:
The possible growth rates of your investments.
The costs of going over the LTA.
The benefits when under the LTA, which translate into lost opportunity to benefit if you undershoot.
It's really hard to make a good guess about growth rates, so I won't try, and instead focus ...
2
Simple mathsy answer:
You say you’re past half way to the lifetime allowance which is £1055K – let’s assume that means you’ve got £550K, and you make 12% a year – not bad!
Years = LOG(lifetimeAllowance/currentValue, 1 + yearlyIncreasePercentage/100)
= LOG(1055000/550000, 1.12)
= 5.74 years until you pass £1055000 without contributing a penny.
If you ...
0
D Stanley is right that statistically it is better to invest lump sum now than invest your money over time. You however also need to think about what is better psychologically for you. let's say you invest all your money now and the market loses 50% of its value in the next six months. Are you able to handle this? Will you keep your money in the fund or ...
2
What you have learned is that in seven years your ability to pick stocks hasn't been very successful compared to the average market. That also means that your ability to time the market isn't much better.
In the past the advice would be to slowly change the makeup of your portfolio, but the advice lately is to move the funds from investment X to investment ...
5
How can I balance these two risks?
Risk is a tradeoff. A Systematic Investment Plan (SIP) reduces risk but also reduces expected return. Since the market moves up more often than it moves down, statistically you're more likely to be better off investing the lump sum and letting it grow over time.
Being better off investing regular amounts over time when ...
1
Convert savings of the Turkey lira to euros but then open a euro-based leveraged forex account and take positions in the lira. The advantage is that leveraged currency positions can be changed in a few minutes time. Now if the leveraged position size is the same amount as the savings then there is no actual leverage.
Also, consider some of the fundamentals. ...
3
You are correct. The Alternative Uptick Rule does not allow a stock to be shorted if it has fallen 10% or more in a day.
CLDR dropped 9.02% on Thursday (from $10.75 to $9.78). That's why it did not appear on the NASDAQ's Short Sale Circuit Breaker list (your link) and shorting continued to be allowed.
Your second link to The "short sale volume percent" ...
1
Yes, it could be said that the probability of profit for a short Iron Condor would be the leg with the highest delta.
The probability of touch is about twice the probability of expiring ITM. Traders tend to adjust their short positions before or when the short leg goes ITM so perhaps consider this number as well.
1
As @quid says, there's no absolute upper bound. If you are smart or lucky enough to make just the right investments, you could make 1000% profit every day or more. Well, I suppose someone could come up with "real world" upper bounds. If after 10 days you own all the wealth in the world, you're pretty much done, unless you can figure out ways to dramatically ...
-3
The answer really is nearly infinite.
If you can front run Trump's tweets and Xi's statements, even by a few minutes... and then you use that to buy options.. on the most affected stocks...
You could in theory be the richest person on the planet in inside a month starting with a million.
On the right options with the right tweets and statements, you ...
4
You could safely make 0.2%, by putting the money in an FDIC-insured savings account paying 2.5% APY (there are several in the 2.4-2.5% range with no upper limit on investment). Actually you'll need 4 accounts if you want to stay fully insured, because the FDIC limit per beneficiary per bank is 250k.
That would be a safe and easy $2000.
Higher returns ...
2
Infinity. There is no theoretical ceiling just the same way there is no theoretical ceiling to investment growth in any other contrived situation.
Edit to address the edit added to the question: In this current market the answer is still infinity.
8
The issue is how much could you lose.
If you lost 1% of the value in one month, you would have to make up the $10,000 lost when the bank demanded their money.
Based on the stipulation that you are talking about current market conditions and that in the last 30 days the S&P 500 is down 2.33% that would mean that you would have lost $23,300 of the banks ...
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