Investing

Is the Stock Market Open on Presidents’ Day 2020?

February 10, 2020 By Amanda Blankenship 2 Comments

Monday is a federal holiday, which means different things for different types of business. Most retail stores and grocers will remain open, while non-essential government offices will be closed. What does that mean for investors? Is the stock market open Presidents’ Day?

Will The Stock Market Be Open on Presidents’ Day?

Oftentimes, when people refer to the stock market they are referring to the New York Stock Exchange (NYSE). The NYSE, NASDAQ, and bond markets don’t all run on the same schedule. So, it is important to differentiate.

However, the stock market is closed on Presidents’ Day. You can buy, sell, and trade regularly on Friday, February 14 and will be able to do so again at start-of-business Tuesday, February 18.

Will NASDAQ Be Open on Presidents’ Day?

NASDAQ will be closed on Monday, February 17. While the bond market has its own schedule, the NYSE and NASDAQ have the same holiday schedule. Therefore, the NASDAQ will also be closed Presidents’ Day.

Will the Bond Market Be Open on Presidents’ Day?

The bond market (SIMFA) will be also closed on Presidents’ Day. If you have any business to do with bonds, you need to get it done on Friday, February 14, or make sure it can wait until Tuesday, February 18.

Stock Market Holidays

The stock market (NYSE and NASDAQ) is closed each year in observance of the following federal holidays: New Year’s Day, Martin Luther King Jr. Day, Washington’s Birthday, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas Day. The stock market also closes the day before Independence Day.

Normally, the stock market closes at 5 p.m. EST. However, there are a few days during the year where the market closes early. These days are usually Black Friday and Christmas Eve. No dates around Presidents’ Day are affected in this way.

If you are an active trader or have holdings in the NASDAQ, NYSE or bond market, you should become aware of what days these markets are open and closed. The stock market does not always follow a federal holiday schedule and can be confusing at times.

Readers, how do you plan to spend your Presidents’ Day weekend?

Photo: Flickr: Randy Lemoine

How to Find the Best Companies to Buy Stock In

January 17, 2020 By Susan Paige Leave a Comment

The hardest bit about stock trading for greenhorns is identifying the appropriate companies to buy stock in. It is a lot like looking for a car to buy. You have to consider the technical specs of the car, the opinions of past and current users of the model, and the reputation of the manufacturer. For traders, this is called fundamental analysis and it involves scrutinizing a company’s financials, competition, leadership and a range other factors to determine if a stock is worthy of a place in your portfolio. Read on for four easy steps to finding the best stocks to buy.

Step #1. Create a List of Prospective Companies

Select all the companies you would like to invest in and put them in a list. You could base your choices on any set of factors, but it is wise to choose established companies in industries you are familiar with or have an interest in. Create a list of at least 10 and not more than 20 companies and get on with your filter-down procedure.

Step #2. Find Important Stock Research Documents

Start by reviewing the financials of each company separately. This is referred to as the quantitative research phase, and it involves finding and going through official documents that companies are supposed to file with the SEC. The two most important forms are:

SEC Form 10-Q: A report on a company’s financial position and performance that must be submitted quarterly to the SEC.
Form 10-K: This is a report submitted annually to the SEC containing a set of audited financial statements, which include the balance sheet, the company’s income sources, and documents showing how it has handled its revenues, cash, and expenses over the past financial year.

If you don’t have the time to find and review all important documents of all the companies in your list of options, you can find the filings simplified in brokerage websites. If you don’t have a trading broker either, consider visiting dedicated review sites such as www.trusted-broker-reviews.com for some of the highest rated brokers in the industry.

Step #3. Focus on Specific Aspects

Financial reports hold tons of numbers and details about a company, and aspiring investors may struggle reviewing all their options. Here are the most important things to focus on:

Revenue: This refers to the money received by a company during a financial period. It is sometimes called the “top line” because it appears first on a company’s income statement. Check the figures against both the “non-operating revenue” and the “operating revenue”, if those sections exist. Operating revenue refers to money that comes from daily business transactions while non-operating revenue is the money from one-time transactions such as asset sales.
Net income: Also, known as the “bottom line”, net income appears at the bottom of the financial statement. It is the figure that is arrived at after subtracting depreciation, taxes, and operating expenses from a company’s total revenue.
Earnings per share (EPS): EPS is what you get when you divide a company’s income by the total number of shares. This is the best aspect to use when comparing a company with other investment alternatives.

Step #4. Conduct Qualitative Research

Qualitative research gives you useful insights into the operations of a business and the chances of its stock going up. Look to understand the following:

How the company makes its money: Companies make money differently, and some such as sports franchises do not have obvious income channels. Always consider “common-sense” businesses, whose operations you have a nodding acquaintance with.
The element that gives the company a competitive advantage: Find that thing that gives the company the edge on its rivals. It could be anything from patent ownership and research capabilities to monopoly powers and scale. Competitive advantage is determined by these factors, and the harder it is for competitors to access them, the likelier it is that the company’s success will be long-lived.
The risks that the company faces: Look at the foreseeable changes in the market and company’s structure that may take a toll on its success in the long run. Sometimes a patent is nearing its expiry or there is a new rival company on the rise. Be sure to understand the company’s state and everything that could go wrong on the way before investing.

Conclusion

There are many documents and research resources that can help you find a suitable company to invest in, but the most important thing is being able to see what the future has in store for the company. That is what separates the good from the great when it comes to stock trading. The above tips can help you narrow down your list of options to that one company that truly suits your interests. From there, try to understand the company better by reading financial journals, browsing the internet, and consulting experts before committing.

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Can You Still Make Money In Real Estate?

January 17, 2020 By Tamila McDonald Leave a Comment

Most adults today were told, at some point in their youth, that real estate was always a good investment. However, after the crash in 2008, people quickly learned that making money in real estate isn’t a guarantee. But, it also created a new opportunity, and many house flippers began raking in cash. As the markets recovered, which forms of real estate investment were lucrative shifted again. This makes for a confusing situation, leaving many wondering, can you still make money in real estate?

Can You Still Make Money in Real Estate?

If you’re trying to figure out if real estate can still be a sound way to make money, the answer to the question is yes. It is possible to earn quite a bit through various forms of real estate investing, including in today’s market.

For example, house flipping can still be lucrative. As long as the market supports an improved property and the numbers are in your favor, it can work. That’s why it is important to do your research into where the best real estate markets are.

Similarly, securing a property and using it as a rental can be a solid source of income. As long as the rent is competitive for the area and it allows you to come out ahead after dealing with related costs, you could end up in the green.

If actually buying property doesn’t appeal to you, there are potential alternatives. For instance, real estate investment trusts (REITs) have become an increasingly popular way to get involved in real estate without having to buy property yourself.

Is Real Estate a Safe Place for Your Money?

It’s important to understand that real estate isn’t a foolproof way to earn money. If anything, the 2008 financial crisis was a great example of how even a bastion of investing can topple.

Whether it’s through purchasing actual properties or investing in REITs, mortgage-backed securities, or anything else, it’s critical to understand that nothing is guaranteed. Additionally, the housing market has been cooling in many cities. While that doesn’t mean there won’t be any growth, overall, it may be significantly slower than in previous years.

As with all forms of investing, whether short- or long-term, doing your research is a must. While no investment is ever completely safe, some may be less risky than others. You’ll need to explore the options that are available and see if any of them align with your risk tolerance. Just keep in mind that growth or profits are never a sure thing, but that doesn’t mean there isn’t money to be made in real estate.

Do you think there is still money to be made in real estate? Why or why not? Share your thoughts in the comments below.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

Biggest Mistakes in Forex Trading and How to Avoid Them

January 15, 2020 By Susan Paige Leave a Comment

Forex is the biggest financial market in the world, and thanks to its low barrier to entry, it attracts a lot of new investors. With a computer and access to the internet, you only require a few bucks to start trading. But how many forex traders are truly successful? Well, not so many. A low barrier to entry is not a promise of sure or quick profit. Mistakes in forex trading are made by everyone, from beginners to veteran traders. We learn from mistakes, but it is even wiser to learn from other people’s mistakes.

Here the biggest mistakes in forex trading.

Lack of trading education

Starting trading without any education on forex trading is a common and the biggest mistake by new traders. Many beginners think that a good trading strategy is all they need to start trading. Trading education is necessary if you want to succeed.

Let’s say your friend needs surgery. Watching lengthy and detailed surgery documentaries will not enable you perform surgery on your friend. Of course not! Only a surgeon can help. Just like surgeons invest in education, forex traders should invest in trading education. Most newcomers only read a few articles and books about trading before they begin trading. Additionally, they don’t practice enough.

Learn to walk before you can run.

Learn the basics first before thinking about getting rich quickly. Forex trading is complex and requires time to master. Invest in good trading education. Study hard, attend trading seminars, watch webinars, and practice on a demo account. If you don’t have time to learn, find ways to create time. It will not only help you earn profits but also save money in the long run by understanding the markets better and adopting good trading habits.

Trading without a plan

Failing to plan is planning to fail. Almost everything requires planning; otherwise, it becomes difficult. Trading without a plan is not difficult; it is impossible. Lacking a trading strategy is like telling the market to take your money.

A trading plan consists of rules that you strictly follow, as well as money management strategies. How will you cut your losses if the market moves against you? When will you take the profit if the market moves in your favor? It would be best if you determined such levels in advance.

Trading is important only when followed to the letter. You see, almost every trader has a trading plan. The problem is most traders don’t follow their trading plans. Most will start with a trading plan but eventually end up trading based on emotions and instincts. Strong views are okay, but knowing where to enter and exit is important.

Choosing the wrong broker

Depositing your money with any forex broker, you come across online could be a grave mistake. Depositing that money with a broker is the biggest trade you make in forex trading. You could lose it all if your broker is a scam, is in financial trouble, or your money is poorly managed.

Take time to compare forex brokers before choosing one. Consider what you want to accomplish, the services a forex broker offers, and use reliable sources for forex brokers referrals.

Trading without a Stop Loss

Even though sometimes you might be sure of your profit targets, it is good to set a Stop Loss. Forex market is very volatile, and sudden news can have a big impact. A Stop Loss is where your trading strategy is invalidated. A Stop Loss gets you out of a trade if the price moves against you by a specified amount.

Using extreme leverage

Margin trading and leverage are amazing tools that help you invest more money than you have in your forex account and potentially earn more profit. It amplifies your earnings. But it is a double-edged sword as it also amplifies your losses if the market moves in an unintended direction. Using excessive leverage can easily wipe out your trading capital even in case of a small movement against your position.

Taking several trades that are correlated

Diversification is good, and taking multiple day trades is a good way to spread the risk. What many traders forget is that those pairs may be correlated, so they end up increasing risk instead of spreading it. If you notice a similar setup in several pairs, chances are they are correlated. This implies that the pairs move together. You can, therefore, lose or win all of them at the same time. If you believe in diversification, make sure the pairs move independently.

Risking more than you can afford to lose

Risk management strategies are important in forex trading. You must not risk more than you can afford to lose. A Stop Loss is not the only thing you need to cap your losses. There are other things to consider:

Use Stop Loss and Take Profit orders. This way, you know in advance the money you can lose or earn in a trade.
Even with a Stop Loss order, you can still lose a significant amount of capital on a bad day. For this reason, you should set a maximum loss per week.
Never change your risk level immediately you start earning profit.
Never average up/down when the market moves against your position
Never risk more than 2% of your trading capital on a single trade

Keep on trading even when you keep losing

You should stop trading when your win-rate is below 50%. A win-rate is the number of times you win expressed as a percentage. Let’s say you win 55 trades out of 100. Your win-rate is 55%. If you keep losing and your win-rate falls below 50%, close your shop for the day and wait for the next day.

Endnote

You will definitely make mistakes when trading. However, if you can avoid the above common mistakes, you are likely to become successful quickly. More importantly, learn from your mistakes.

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Do Your Due Diligence: How to Research Investment Advisers

January 15, 2020 By Justin Weinger Leave a Comment

If you have decided you want to work with an investment adviser, take time to perform due diligence background checks. After all, as you will be putting your finances and future security in this specialist’s hands, you need to know about the individua’sl or firm’s operations, work history, and professional designations. Fortunately, the internet has made background research simpler than in times past. These are ways you can research investment advisers before you sign on the dotted line.

Form ADV

Begin your research by checking out the Form ADV for money professionals. This comprehensive disclosure statement gives you important information about advisers, including background history, previous complaints, fees and compensation, current operations, and asset holdings. The U.S. Securities and Exchange Commission requires financial specialists to file this document. These forms are available on the Investment Adviser Public Disclosure, or IAPD, website for free.

BrokerCheck

Some money professionals are overseen by the Financial Industry Regulatory Authority, or FINRA. Use FINRA’s BrokerCheck service to research these individuals and firms. This database lets you do checks for previous complaints as well as other industry information.

• Status of registration

• Past regulatory disputes or events

• Professional exams

• Previous employment or clients

• Mergers, acquisitions, and name changes

BrokerCheck may redirect you to the IAPD website for more information.

SEC Adviser Search

The SEC oversees other financial specialists. In this case, you can use the SEC’s Adviser Search feature to look up individuals and firms. Some investment managers are overseen by both agencies. Look on both BrokerCheck and the SEC’s Adviser Search in this instance.

Reviews

The internet is a treasure trove of useful information such as analysis from industry insiders on money professionals. For example, a review, such as Fisher Investments’ shown here, can give you valuable insights on how particular investment specialists like to operate and how other industry authorities view them. In this case, you can gain a useful understanding of how independent money manager Fisher Investments does business.

State Securities Regulators

You can check on money advisers and brokers who are registered with your state at the North American Securities Administrators Association, or NASAA, website. This site also has other educational tools for investors who want to learn more about the industry. This is always valuable, even if you work with a financial professional, because the more you know, the better the questions you will be able to ask your adviser.

BrightScope

BrightScope is a financial information website that lets you check out investment pros. This database will tell you about designations and licenses, agency registrations, and other professional information. This site also features money news that can help you increase your understanding of the industry.

Choosing a financial adviser should not be done lightly. It is an important decision, but the internet makes researching professional backgrounds convenient and simple. From reviews to databases, you can learn key details about investment advisers that can help you make a good hiring decision. You will be working with this individual or firm for a long time, and choosing well, in the beginning, will make managing your finances less of a burden and more of an adventure.

Here’s What To Expect From Cryptocurrency in 2020

January 10, 2020 By Tamila McDonald Leave a Comment

The cryptocurrency market is largely about speculation. It is dramatically impacted by what investors (both current and potential) think will happen in the market. As a result, cryptocurrencies have had some incredible highs and shocking lows over recent years. The volatility makes it hard to figure out what you can expect from the market in 2020. However, by understanding various trends and upcoming events, you might be able to predict a bit of what the future will hold. If you’re wondering what you can expect from cryptocurrency in 2020, here’s what you need to know.