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Should You Be a Day Trader?

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If you’ve been following our site for a while, you have picked up some great info on the benefits of day trading, and how to do it responsibly. While all of this is great and valuable information, it skips a very important question: Should you even be a day trader? As much fun as it sounds to spend a few exciting hours using your Saving Advice education to make a few extra bucks, the risk involved can have real-life ramifications on you and anyone who relies on you as an income provider. So, here are a few serious questions you should ask yourself when evaluating whether or not you should become involved in day trading.

 

How much money do I have to day trade?

The first and most obvious question that comes to mind. Do you have any money to dedicate to your brokerage account? Now, this isn’t referring to how much you are willing to utilize, but how much you can responsibly choose to pour into your new hobby. Day trading is a risky endeavor, and you should only trade with money you are able to lose entirely. DO NOT USE YOUR SAVINGS TO DAY TRADE.

If you have a set amount of money you save every month, do not use any to trade; day trading is not investing, it is gambling. Evaluate how much money you have open in your “fun” budget, and use some of that to day trade. This is especially important if you have kids, as their financial security must take priority over any potential risks. If you are already having trouble getting 10% of what you make put away in savings, you should not be a day trader.

How much time do I have to research?

Great tools and chats exist to assist you in real-time when picking day-tradable stocks (I personally use Techbud’s Discord). Even so, you should always do some personal research before buying any stock. As a day trader, you need to allocate more time than just the few hours you spend each week trading. On your off days, you should be keeping your ear to the ground on low-price stocks that may be active on certain days, and get informed on how high they typically go before getting dumped. If you don’t have at least 2-3 hours of dedicated time per week to research, you should not be a day trader.

 

How much stress can you handle?

More goes into day trading than the money, time, effort, and brainpower you have expended already. The cost that hit me the hardest surprised me, and that is the stress that comes along with this hobby. I had never really gambled before I started day trading, and any trading I had done was long-term and very conservative. When I began, the anxiety I felt was oppressive. Once the money left my brokerage account, my hands would sweat, my heart would race, and the thought of losing it all overcame me. That being said, if you aren’t the type that can handle acute stress, steer clear. Those who are typically risk-averse, or have issues with anxiety, run the risk of freezing up. As a result, you may end up unable to hit that buy/sell button at the perfect moment, which can be extremely costly.

 

I hope this helps you get started (or not) on your day-trading journey. Make responsible decisions, take care of your savings, and only trade what you’re ready to lose. Risk plays a major role in this game, and it is up to you to decide whether it is worth it or not.

Should You Purchase Disney Stock Now?

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disney stock

After becoming the first studio to cross the $10 billion global box office threshold, Disney’s stock has been on an upswing. In fact, it’s trading at near-record highs, bolstered by the success of Frozen 2, excitement for Star Wars: The Rise of Skywalker, and the launch of Disney+. But when a stock starts reaching towards new heights, it can be hard to determine if it’s actually a good time to buy. If you’re considering Disney stock, here’s what you need to know.

Interest in Disney+ Exceeds Expectations

While many weren’t surprised that millions of people were quick to sign up for Disney+, the actual membership numbers exceeded expectations. Initially, forecasts suggested that 8 million people would subscribe by the end of the year. But, by November 13, there were already over 10 million users.

Hulu Stake and Control

Earlier in the year, Disney dealt a blow to one of its rivals, Netflix. Disney struck a deal with Comcast, where the latter company would sell its stake in Hulu, sitting at 33 percent, to Disney by 2024. However, Disney assumed full operational control of Hulu practically immediately. This allowed it to bundle Disney+, Hulu, and ESPN+, spurring additional subscriber interest.

Movies, Merchandise, and Theme Parks

Disney has been a staple studio for quite some time. However, it’s recently pulled off some major feats. For example, Avengers: Endgame unseated Avatar as the highest-grossing film ever. Frozen 2, which opened near Thanksgiving, already has over $927 million in worldwide box office sales.

Additionally, the purchasing of the Fox Marvel properties and the renewed deal with Sony for an additional Spiderman film ensure Disney can keep tapping the superhero movie fountain. Even though Marvel Television disappeared, that isn’t likely to eliminate the company’s momentum.

Plus, Frozen 2 merchandise began hitting shelves just as the holiday season arrived. With Disney’s other properties, including Marvel and Star Wars, the company may do quite well before the year’s end.

The theme park giant has also increased ticket prices at Disney World and Disneyland over recent years. However, crowds still gather daily to explore what the properties have to offer.

Generally, Disney performs well in all three of these areas. Plus, it means the company has a degree of diversification. It isn’t just a studio, streaming service, merchandise maker, or theme park; it’s all of them.

Should You Purchase Disney Stock Now?

While all stocks come with some risk, many experts and analysts believe Disney could keep moving up. The company has diverse offerings and is incredibly popular at the moment. Plus, there’s a decent chance that it can keep riding the wave, possibly for years to come. If Disney aligns with your strategy, it’s certainly worth a look.

How to Buy Disney Stock

If you want to add Disney to your portfolio, you have a few options. First, you can take advantage of the company’s direct purchase investment plan. With that, as long as you can make the minimum $175 investment or commit to the $50 a month plan, you essentially go straight through the company.

However, you can also use an online brokerage account to buy Disney stock. You’ll need to set up an investment account to go this route if you don’t have one, but that’s typically pretty easy. If you already have an account, you can likely go through your brokerage to make the purchase, so you won’t have to turn to another company to get your hands on Disney stock.

After logging into your brokerage account, you’ll need to use the platform to place an order. Here, you can list how many shares you’d like to buy and choose the order type, usually a market order or limit order. If you want it to go through quickly, the market order approach prioritizes speed over price.

With a limit order, you’re telling the brokerage to only make the purchase if the Disney stock hits or falls below a specific price, making it a better method for those who want to keep the cost down. However, this approach does come with risk as it is possible that the price won’t fall dip to that price. If that happens, the order never executes, so you don’t end up with any Disney stock.

Once the order goes through, that’s it; you’re officially a Disney stock owner. Then, you can monitor your investment to make sure it remains a great choice for your portfolio.

 

Do you plan to buy Disney stock? Why or why not? Share your thoughts in the comments below.

 

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How Investing May Help You Financially In The Future

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In today’s world, having quality investments can be a great way to help achieve financial freedom and stability, even in a state of inflation. When you invest your money, you’re able to build your wealth and improve your financial situation over time. Typically, investing refers to a process of making significant investments to earn a profit that can be saved for your retirement and your future. It is a smart move to work with an investment holding company that can help you invest correctly to build wealth.

If you’re still not convinced, continue reading this article to know how investing may help your financial future.

Offer Healthy Long-Term Returns

In the financial world, it’s essential to understand that investing and saving money aren’t entirely similar. When you save, you set aside extra money for your future use. But when you invest, you put some of your money to work so you can generate more returns over a long period.

If you want to enter the investment world anytime soon, you can choose from different classes of investment assets. These may include cash, properties, shares, and many more. However, each asset generates varying levels of return as well as investment risks, which is why it’s always a good idea to know the asset before investing.

Primarily, investing in shares and properties has excellent potential for healthy long-term returns. But assets such as cash and fixed income may not have the same level of potential for earning capital growth. For example, if you’re planning to invest in countries like Singapore, it’s best to know the market first by reading some resources, like a shares investment article. That way, you’ll be aware of what to expect when you get started with your investment.

Because of these differences, you should plan and analyze your investments carefully so you can minimize the risks and get the most out of your money. With the proper planning and investment strategies, you can gain more returns and prepare for your future properly.

Provide You With Stable Income After Retirement

If you don’t invest and let your money grow, you’ll eventually lose all your money without you knowing. And when you’re approaching retirement, you may not be able to sustain your day-to-day expenses. This is where the idea of investing becomes beneficial.

When you invest early, you can set aside money for tomorrow. Even if you retire and stop working, you can expect a regular income to fund your living needs on a daily basis. This is the power of investing. If you’re planning to invest, you can explore investment assets such as bonds, equities, and properties.

Allow You To Meet Your Long-Term Financial Goals

Again, investing can be an excellent opportunity to grow your money for financial reasons. However, the best thing about having investments is its ability to help you meet your long-term financial goals. For instance, you can consider investing as your way to repay a mortgage loan or prepare for your children’s educational fund.

Whatever your financial goals are, setting aside some of your money for investing can go a long way in helping you financially in the future. When you have long-term goals, the returns you get from your investments can also help you achieve your goals faster and easier.

Protect Your Financial Future From Inflation

Typically, inflation refers to an increase in prices but a decrease in the purchasing power of your local currency. If you’re not financially prepared, inflation can make your situation worse. You’ll probably end up worrying about your finances over and over again.

So, if you want to stay ahead of inflation, investing can be an ideal option. Even if you open a savings account in your bank to earn a rate of return, it may not still be able to outperform inflation because it can’t provide you with a return that’s greater than the inflation rate. But with the different classes of investment assets, your money is safe against the general increase in prices.

Develop Positive Spending Habits

Investing isn’t just about generating returns on capital. It’s also about developing good spending habits and improving your quality of life. By putting your money on investments, you’re able to avoid impulsive decisions that can affect your financial health.

Since investment classes come with risks, investing allows you to learn how to be careful with your spending. Ideally, people who invest are less likely to have problems with overspending. They usually plan their moves and don’t just shell out money for money.

Conclusion

If you’re looking for financial independence in the future, investing may be the best solution to consider. And by keeping in mind the points mentioned above, you can be sure that any investments you make can give you financial freedom. Just come up with a solid investment plan, and you’re on your way toward having a brighter tomorrow.

For more of SavingAdvice’s great articles:

Ten Reasons To Consider Investing In SavingsBonds

Investing In Art And Antiques For Fun And Profit

Investing In Your Debt

Why You Should Think Twice Before Investing In A Gold IRA

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Gold IRAs provide a lot of advantages which make planning for retirement much easier and less stressful for the average account holder. A gold IRA to many is a ticket to a more diverse and stable investment portfolio. It goes without saying that many investments are risky. Nevertheless, the absurdly high demand for precious metals such as gold has contributed to the value of what can only be considered as one of the most stable assets in the history of mankind.

The Disadvantages of Investing in a Gold IRA

Yet, there are disadvantages to being an account holder on a gold IRA. What is perhaps one of the most striking realities about gold IRAs is that unlike socks and other types of investment, the metals which gold IRAs derive value from do not provide interest or dividends. To many, this is a huge disadvantage which threatens the potential gains one could make from improvements in the operational effectiveness and profits of companies.

There are several types of fees associated with gold IRAs. Owners of IRAs are typically subject to one-time initiation fees, annual custodian fees, and storage fees. These expenses can also be experienced with a traditional IRA, however. It is important to note that the fees may differ depending on the company which one chooses to get and maintain an IRA from.

Alternative methods may be used to include gold in one’s retirement plans. Gold ETFs can be used to buy and sell shares for holding in a conventional IRA. Experts recommend that investors do not exceed 10% in total portfolio holdings for alternative asset classes.

 Stable Gold and Heavy Costs

In 1982 gold was worth $447.00. In today’s day and age, $447 can get one barely enough in the stock markets. Ironically, even individuals with thousands of dollars in the stock markets stand to lose money from such investments due to significant risks. While the growth of gold over the years has not been exponential as the likes of Bitcoin and unicron stocks, the fact remains that precious metals like gold and silver have been consistent as storages of value for cautiously optimistic investors.

Gold is heavy and so is the price of storing gold. Not only does storage location have to be accounted for but also the security and insurance of storage locations have to be accounted for. While gold IRA holders do not personally have to deal with storage of gold, there are fees associated with ownership of gold IRAs that stem from storage related costs.  Administration and storage fees can easily cost hundreds of dollars per year.

Lear Capital costs are kept low for customers through awesome deals. The precious metal dealer understands the pain points of clients when it comes to the costs of an IRA. It has come up with ingenious ways to reduce your costs as you plan for retirement and optimize your investments.

Introduction & Tips to CFD Trading 

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In this article, you will learn what CFDs are, why they are unique, how to trade them, the fees, and any risks involved. As a bonus, be sure to read our tips at the end to ensure you’re ready to trade safely and responsibly.

What is a CFD

A CFD is a specialized financial derivative product that allows an investor to trade on the price movement of an underlying financial asset without owning the asset.

In contractual terms, a CFD is an agreement between a buyer and a seller to either pay or receive the difference between the current value of an asset and its value at the end of the contract.

In other words, if the value of the asset goes up, the buyer pays; if the value of the asset goes down, the seller pays.

They were created in the early 1990s in the UK as a way to hedge against exposure to stocks on the London Stock Exchange. They became popular because they did not require large margins, and also because traders were able to avoid the stamp duty requirement because no physical shares were exchanged.

CFD Tradeable Instruments

Since no physical ownership of shares or currency takes place, the trader does not buy or sell the actual asset, but rather a specific number of units of the underlying financial instrument.

Traders can speculate on rising or falling prices on a variety of financial trading instruments, such as currencies, treasuries, commodities, indices, and shares.

Specific instruments include commodities like gold, silver, and oil; currency pairs such as GBP/USD, USD/CAD, USD/EUR; shares which are traded in major stock exchanges like the London Stock Exchange or the New York Stock Exchange (NYSE); and leading indices such as the Dow Jones, NASDAQ and Nikkei 225.

Costs of CFD Trading

CFD traders are subject to several fees, including a daily broker financing fee, the bid/offer spread, and any charges for holding CFD positions overnight.

Risks

There is a high element of risk involved with leveraged trading which can result in a high loss of trading capital.

Leveraged trading can magnify profits, but it can also magnify losses. For this reason, it is important to calculate both the positive and the negative potential of any trade prior to execution.

Unique features of CFDs

When compared to other investment instruments, CFDs resemble the futures and options market the most with a few differences, including:

  • The CFD contract is normally on a one to one basis with the underlying instrument
  • Trading is conducted with CFD brokers over-the-counter
  • CFDs offer a small contract size as low as a single share
  • There is a wide selection of underlying instruments
  • New instruments, like cryptocurrency are easily created

Getting started with CFD Trading

When you start trading CFDs it’s important to find a licensed, regulated CFD broker that offers a safe and secure trading environment, and competitive spreads. One example of such a broker is Capex.com CFD online trading service but we are sure that there are others as well. 

Tips for successful CFD trading

1. Use stop-loss orders

As with most trading, using stop-loss orders is considered good practice in order to limit downsides.

2. Diversify

Like any good investment strategy, the saying “don’t put all your eggs in one basket” also applies to CFDs.

3. Do your research

Understanding CFD trading basics is important, but real success means also understanding the specifics of the investment type. Most successful traders choose a small number of specializations they know well, and trade them consistently.

Another key to success is to differentiate the outlying “one-off” successes from what consistently works.

For example, some people made a lot of money on Bitcoin in 2017, but that does not mean it will happen again. Understanding blockchain, the technology that powers Bitcoin, may give insight to anyone choosing to invest today.

4. Balance leverage with risk tolerance

Leveraged trading may produce sky-high wins but has also created huge losses more often than not. Limit leverage to a level that is concurrent with your risk tolerance profile in order to minimize any potential losses.

5. Create a trading strategy and stick to it

Create a strategy before each trade and map out the high/low points.

This is important in order to avoid any emotional trading around chasing losses that may occur when adrenaline kicks in.

Conclusions

Available in a wide variety of underlying instruments, CFDs are a popular way to hedge against exposure to other investments.

No physical ownership of the instrument takes place – the trader buys a specific number of units instead of the underlying financial instrument, which can range from commodities to currency pairs to stocks.

Finding a safe CFD broker that is licensed by one of the reputable licensing entities like Cysec and FSCA  is very important in order to minimize any security risks.

Profits and losses can be high due to the high element of risk involved with leveraged trading. As with most investments, the use of stop-loss orders, diversification and research is vital to understanding the market, and will ensure successful trading with minimal losses.

Is the Stock Market Open on Thanksgiving Day 2019?

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stock market open on thanksgiving

Those who trade stocks need to know when the market is open or closed. When it comes to a holiday that falls in the middle of the week, like Thanksgiving, it always throws people for a loop. Because Thanksgiving is a federal holiday, many businesses will be closed. However, the stock market doesn’t follow the same schedule because it is not federally run. So, is the stock market open on Thanksgiving?

Will the Stock Market Be Open on Thanksgiving?

No. The stock market will not be open on Thanksgiving Day. You won’t be able to trade regularly or see any change in your stocks in the New York Stock Exchange (NYSE). The NYSE has an odd holiday schedule so it is important to stay on top of.

NASDAQ and SIMFA (bond market) investments may not be readily available either. These two branches of the stock market hold different schedules than the NYSE.

Will NASDAQ Be Open?

NASDAQ will not be open on Thanksgiving Day. Anyone trading in the NASDAQ market will need to plan for it to be closed on Thursday. You won’t be able to buy, sell, trade, or monitor your stocks on that day.

Will the Bond Market Be Open?

The SIMFA market will be closed on Thanksgiving Day. If you have stock in bonds, you won’t be able to monitor them or make any changes.

It is important to note that bond market closings are not enforced, but they are recommended. Days listed as “closed” for the bond market are not always necessarily closed. It is a good idea to keep up to date on closings in the bond markets if you have money in bonds.

Stock Market Thanksgiving Week Schedule

Even though all three sections of the stock market will be closed on Thanksgiving Day, you will still have an opportunity to monitor, buy, and sell this week. NYSE, NASDAQ, and SIMFA will hold the following hours.

  • Monday, November 25: 9 a.m. to 5 p.m. EST
  • Tuesday, November 26: 9 a.m. to 5 p.m. EST
  • Wednesday, November 27: 9 a.m. to 5 p.m. EST
  • Thursday, November 28 (Thanksgiving Day): All markets are closed
  • Friday, November 29 (Black Friday): Markets will close at 1 p.m. EST

If you have any business that needs to be taken care of where your investments are concerned, your best bet is to get everything done on Wednesday before the holiday. While the stock market will be open on Friday, it will hold shorter hours so it is a good idea not to leave any urgent business for that day.

Other Stock Market Holidays

While the answer to the question, “is the stock market open on Thanksgiving,” is no, there are plenty of days throughout the year in which the market remains open. In fact, it only closes on these holidays each year: New Year’s Day, Martin Luther King Jr. Day, Washington’s Birthday, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas Day.

There are also a few days where the New York Stock Exchange has altered hours. As mentioned above, the market closes at 1 p.m. on Black Friday. It will follow the same hours on Christmas Eve (December 24). Keep in mind that when you are reviewing the stock market schedule that all times listed are in Eastern Standard Time.

Readers, are you active in the stock market? Do you have any predictions about how your investments will perform this week? 

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