Personal Finance Wellness.

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Swing Trading

What Is Swing Trading? And How Does It Works?

Swing training sits somewhere between day trading and trend trading. A swing trader holds the stock for a short to medium-term period of time. A swing trader, as the name suggests, looks for the ‘swings’ patterns in the price of the things they want to buy in the market.

Swing Trading Vs. Day Trading

Swing trading is a short-term trade. It usually lasts longer than a day but less than a month. That is why I previously mentioned, that swing trading is placed between day trading and buy-and-hold investment. A day trader holds the stock from few hours to a day but never for longer than one day while trend traders hold the stock from few weeks to months. Swing trading is between these two extremes.

Swing traders use technical analysis to find out tradable opportunities. For a time being, they study the price of the stock they want to buy daily and then they limit the time to 5 hours and study the timeframe in order to find better trade entry levels.

Another difference between day traders and swing traders is that the first group spends all day analyzing the price chart but swing traders only need to check out the swings of the price at the end of the day or for a 4/5 hours period of time.

That is why swing trading is suitable for those who are new in the market and they do not want to become a full-time trader. They can keep their own job and trade part-time.

How Does Swing Trading Work?

Swing traders focus on the individual swings of the market. The price in the market comes in waves. It might go up which is called upswings or it might come back down which is called downswings. Swing traders focus on the individual swings, the upswings, and downswings.

Swing traders almost always trade in the direction of the overall trend. So in an uptrend, they trade on upswings and in a downtrend, in a downswing. Beginner swings traders usually trade on uptrend which means that they trade on upswings. Because the price always can and might go up but it won’t come lower than a specific amount.

Swings traders work to get small wins that become a significant amount after a period of time. If they gain 4% profit per month it will be a great deal by the end of the year.

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Strategies for Swing Trading

Bull Flag on Daily Chart

This pattern is one of the most accessible and conservative patterns. A bull flag pattern happens when we have a strong uptrend in the stock. It is called a bull flag because when you look at the chart it looks like a flag on a pole and also for the reason that it is upward, it is called a bull flag. Most of the days, there are hundreds of bull flags to choose from. Choose the one with high volume upswings and lower volume of downswings.

When the trend moves higher eventually a pullback happens because the market needs a break. Then you should look for a bull flag. This bull flag is consist of a smaller range of up and downs. Tighter these rangers, higher the breakout. The bear flag is similar to the bull flag, the only difference is that in the case of the bear flag we have a downward trend.

The Mean-Reversion Strategy

When the market goes upward it will eventually come back down, this is the mean-reversion strategy in a nutshell. The market makes over-exaggerated moves on both sides. It will go up and then it will reverse it and goes down. These swings help us predict the next move of the market.

The Breakout Strategy

Breakout happens when the price goes higher than ever. Previously when the priced this point we had a reverse because this is a mean-reversion strategy, when the price goes it eventually comes down. But this time, it passes the reverse point and goes higher. It indicates that we have a huge demand or a buying potential, that is why the price might go even higher.

T-Line Strategy

T-line strategy is actually the same with EMA (8 Day Exponential Moving Average). Anywhere in the chart, you can set a moving average line (MA). You can make a line from one day to 500 days.

For the T-line strategy, you actually draw a line for 8 days. This is like the footprint of the price over previous days.

When the price reaches above the T-line then the price will continue to rise. When it is below the T-line it will go downward.

The Advantages and Disadvantages of Swing Trading

Advantages

It is not time-consuming

As previously mentioned, if you want to be a swing trader you do not need to quit your job and check out the market prices all day long. So if you are just entering this trading business, swing trading might be the best choice.

It does not tie down your capital for a long period of time

It will keep not tie down your capital for a bad stock for a long time, unlike long-term trading. Your capital will be tie-down from less than a day to a few days. That is not much.

Disadvantages

It is hard to figure out the timing

Even if you are an experienced swing trader, you might not be able to see the pattern and lose some opportunities.

There are overnight and weekend price changes

As the swing traders stay open for the night, they might experience price gaps. The only way to reduce these gaps is to trade smaller trade sizes without leverage.

Conclusion

Now that you know all about swing trading and how it works, you are able to decide whether this type of trading is suitable for you or not.

Remember that every type of trading has its own advantages and disadvantages, you cannot find a trade that is absolutely perfect. Swing trading is one of the best for beginner traders. So if you want to start trading, this one is a good first step.

“If you have any feedback about what is swing trading that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”

NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.

Brokerage account

What Is A Brokerage Account? And How Does It Works?

A brokerage account is a taxable account for individuals so that they are able to sell or buy different types of investment securities. Investors use a brokerage account to buy and sell stocks, bonds, and mutual funds. You can use this brokerage account to transfer money because this account provides you with the ability to have access to the stock market and other types of investments.

A brokerage account is also referred to as taxable accounts. Because the money you earn using this account is considered a capital gain, therefore this account is taxed.

How does a brokerage account work?

Actually, it is so easy to open up a brokerage account. It is similar to the process of opening a bank account. If you are interested in having a brokerage account you should file an application from a brokerage firm. Then you need to submit your basic personal information; your first and last, your address, and the like. Then you have until your information is approved. After that, you will be able to charge your account by transferring money from your bank account. Then you are good to go.  You can use the transferred money to buy (and later on, sell) different types of investment. Remember that the money you earn from this account is considered capital earn therefore it is taxable.

The number of brokerage accounts that you have is not limited. You can have as many accounts as you want in the same institution, or if you prefer you can have several accounts in several institutions. The choice is yours to make.

Brokerage Accounts vs. Retirement Accounts

As previously mentioned, brokerage accounts do not offer tax advantages. So you need to pay your tax, which is why they are called taxable accounts. And because of the fact you are paying the tax of your income, there are few rules for these taxable accounts. You can pull out your money whenever you want no matter what the reason is. You can invest as much as you want. There is no limit in the amount of money that you are investing.

If you are investing money in order to have a saving for your retirement, then you probably would prefer retirement accounts like Roth or IRA to the taxable accounts. You can earn more money using retirement accounts but note that you cannot pull out your money before a certain age.

The basic knowledge you need in order to open up a brokerage account

To open up a brokerage account you need to pay attention to few elements in order to have a better experience:

Choose a brokerage account provider that suits you

Now that you have decided that you want a brokerage account, you need to choose a provider. There are two famous providers: online brokerage account and managed brokerage accounts.

If you prefer to manage your investments on your own, then you probably prefer online brokers. You can use their website to buy and sell different types of investments.

This post contains affiliate links. Please please read my Disclaimer for more information

If you rather want someone else to manage your investments then you would like the second option. Managed brokerage accounts come with an advisor. You can get help from a Robo-advisor which is a cheaper alternative for human investment advisors. These companies use computer algorithms to manage your account for you.

Know different types of brokerage accounts

Brokerage accounts are easier to master than retirement accounts because they have fewer special rules. Still, brokerage accounts have different types that you better be familiar with, before opening up your brokerage account.

Discount Brokerage

A discount broker is the most common type of brokerage accounts. It is mostly for the new users and it is most probably an online-only brokerage. You manage your own trading and as a result, you pay less amount of fee.

Full-Service Account

This type of account provides you with a dedicated broker who knows your financial status. You can call them or even book a meeting with them in order to discuss your portfolio. Obviously, as a result of this detailed and personalized service, you ought to pay higher fees.

Cash Brokerage Account

This type of brokerage account will not let you use the money you do not have. In other words, it won’t lend you money. If you want to buy a stock which is costs $5 then you should transfer at least 5$ to your account in order to buy that stock.

Margin Accounts

A margin account unlike a cash account will permit you to borrow money in order to make a trade. These loans are usually for more advanced trades. Margin accounts can be full-service or discount.

Conclusion

Just like anything else, trading also needs background knowledge. You just will not go to sleep one night and the next day, wake up reach. You need to gather information in order to have a better experience and more enjoyable trading.

In the case of brokerage accounts, you first need to decide whether you need a retirement account or a taxable account. If you want a long-term investment then you should go with a retirement account. If you decided on the brokerage account, you need to decide whether you want to manage your trades on your own or you prefer to have an advisor.

The last step is to decide on the type of brokerage account that you want to get. When you are done deciding about all of the named matters then you can open up your account using the provided guideline.

Do not forget that learning about trading does not end with opening up a brokerage account, it is the exact opposite. The learning process will just start from there. You need to think, learn and decide before every step you take to have a tremendous experience in trading and investment.

“If you have any feedback about what is a brokerage account wok and about the ones that I have recommended, please leave your comments below!”

NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.

cryptocurrency

What Is Cryptocurrency?How Does It Work?

What is Cryptocurrency?

You have probably heard a lot about cryptocurrencies such as Bitcoin, Ethereum, Bitcoin, Peercoin, Ripple, Cardano, Polkadot, Bitcoin Cash, Stellar (XLM), etc. More than 6,700 different cryptocurrencies are traded publicly, according to CoinMarketCap.com, a market research website. But, what exactly is cryptocurrency? How does it work?

A cryptocurrency is a digital or virtual asset based on blockchain technology. Cryptocurrencies are virtual or digital money that takes the form of tokens or coins. They are not generally issued by a central authority, like governments or banks; therefore, this defining feature of cryptocurrencies allows them to exist outside their influence and control. The name Cryptocurrency derives from the encryption techniques used to secure the network. “Crypto” refers to the various encryption algorithms and cryptographic techniques that safeguard these entries, such as elliptical curve encryption, public-private key pairs, and hashing functions.

Any investor can purchase cryptocurrency through crypto exchanges like Coinbase, Cash app, and more. Investors can make money by mining Bitcoin or selling their Bitcoin at a profit. The total value of all cryptocurrencies on April 13, 2021, was more than $2.2 trillion, according to CoinMarketCap, and the total value of all bitcoins, the most popular digital currency, was at about $1.2 trillion.

How Does It Work?

To buy cryptocurrencies, you will need a “wallet,” an online app that can hold your currency. Generally, you create an account on an exchange, and then you can transfer real money to buy cryptocurrencies such as Bitcoin or Ethereal.

If you are buying cryptocurrencies, actually you are buying the idea behind the coin, which is supported by blockchain technology. At its simplest, a Blockchain is a shared database (ledger) that everyone can access to verify transactions. It is extremely secure because the transactions are encrypted with 256-bit cryptographic keys. So all the information is kept in the decentralized ledger (the blockchain).

The ledger is public, but everything on the ledger is encrypted. This is how the system is able to be secure, but also public. Everything is encrypted using an algorithm that is, as of now, unhackable. Cryptocurrencies are inherently very safe but the vulnerability of cryptocurrencies lies not with the underlying technology but rather with people and institutions. Hackers trick the user into divulging access to the exchange, typically your email address and a password (via phishing) or the private key in your wallet. The most common way is to hack into your email account and then request a password reset to the exchange. To counter this risk, enabling multi-factor authentication has been recommended.

This post contains affiliate links. Please please read my Disclaimer for more information

The Pros of Cryptocurrencies

  1. They have been admired for their transparency, anonymity, inflation resistance, probability, and divisibility. The advocates highly value their benefits of privacy, like protection for whistleblowers or activists in repressive countries. Some cryptocurrencies are more private than others. For example, Bitcoin has less privacy. While other cryptocurrencies such as Dash, Monero, or ZCash are far more difficult to trace.
  2. They make it easier to transfer funds directly between two parties, without any need for a third party, like a bank or credit card company. In other words, a cryptocurrency is a medium of exchange that is digital, encrypted, and decentralized.
  3. They are not under the influence of a central authority such as governments or banks. There is no central authority that manages and maintains the value of a cryptocurrency. Instead, these tasks are distributed among a cryptocurrency’s users via the internet.
  4. Some cryptocurrency advocates love the technology behind it (called the blockchain) because it is a decentralized processing and recording system and can be more secure than traditional payment systems.
  5. Some investors like it because their value is going up increasingly. They see cryptocurrencies such as bitcoin as the currency of the future. Some people even refer to it as a bar of digital gold.
  6. Unlike the stock market, you can participate in the cryptocurrency market 24 hours a day, 7 days a week.

The Cons of Cryptocurrencies

  1. Their use for illegal activities, such as money laundering and tax evasion.
  2.  Exchange rate volatility. The rate at which a cryptocurrency can be exchanged for another currency can fluctuate widely. Bitcoin has experienced some rapid ups and downs in value, climbing as high as $19,000 per Bitcoin in Dec. 2017 before dropping to around $7,000 in 2021. It should be noted that a currency needs stability; however, it seems that cryptocurrencies don’t have such stability for now.
  3. Vulnerabilities of the infrastructure underlying them.
  4. It is very costly to produce a Bitcoin, which requires an increasingly large amount of energy. It’s estimated that 0.21% of all of the world’s electricity goes to powering Bitcoin farms. That’s roughly the same amount of power Switzerland uses in a year. It’s estimated most Bitcoin miners end up using 60% to 80% of what they earn from mining to cover electricity costs.
  5. They are not immune to the threat of hacking. Several online exchanges have been the subject of hacking and theft.
  6. Cryptocurrencies are designed to be free from government manipulation and control. However, as they become more popular, this key aspect of the industry has largely been threatened.

Conclusion

If you like the idea of day trading, buying cryptocurrencies, like Bitcoin, and then selling them when their value moves higher is a good option. But remember that cryptocurrencies are very speculative and volatile buy. To put it in other words, it is a very risky or aggressive investing strategy and you should have a good knowledge and market savvy about it to fully understand how it works.

As this network grows, it becomes more complicated, and more processing power is required. But aside from these concerns, you should also know that just having cryptocurrency exposes you to the risk of theft, as hackers try to penetrate the computer networks that maintain your assets. You have to optimize your equipment and technology to outcompete. If you are interested and determined to take part in this market, you should learn many things and choose the right platforms to make the best investments.

“If you have any feedback about what is cryptocurrency that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”

NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.

Municipal bonds

What Is A Municipal Bond? How Does It Work?

A Municipal Bond explained:

A municipal bond, also known as a muni bond (or muni), is a government bond issued by a local government or its agencies. The issuers of such bonds are governmental entities (or a group of governments) at or below the state level, including state governments, local governments, redevelopment agencies, municipalities, special-purpose districts, school districts, and suchlike that have one of these powers at hand: 1. The power of taxation 2. The power of eminent domain 3. The police power. The governmental entities issue muni bonds to finance their capital expenditures and projects, covering the construction and renovation of highways, bridges, schools, parks, roads, hospitals, neighborhoods, and other infrastructure.

In fact, they are loans that investors make to these public organizations. To put it in other words, if you buy municipal bonds, you are lending your money to the bond issuer in return for a promise of getting regular interest payments, also taking back your original investment (or the principal). A municipal bond’s maturity date (the time in which the bond issuer returns your original investment) may be years in the future (i.e., even more than a decade) or in one to three years.

There are 2 general types of municipal bonds: 1. General obligation bonds 2. Revenue Bonds

  1. General Obligation Bonds are backed by the government’s taxing power. These bonds have the full faith and credit of the issuer, which has the power to tax residents to pay investors. These bonds are generally riskier and offer a higher yield.
  2. Revenue bonds are backed by revenues from a specific project or source like lease fees or toll roads. The bonds’ yields depend on the amount of revenue collected from these sources.

How Does it work?

Municipal Bonds pay interest to their investors, usually twice a year. The bond issuers repay the principal on the bond’s maturity date. You can purchase municipal bonds directly from a registered municipal bond seller or indirectly through a municipal bond fund.

The municipal bond rates are determined at origination by these three factors:

1. They follow the equivalent Treasury bond rate. By the way, the bonds issued by the U.S. Treasury are considered to be among the safest in the world. Since munis have a bit more risk, they will pay slightly higher rates than federal bonds.

2. Municipal bond rates depend on the bond issuer’s credit rating as well. The highest is AAA. Since they are also the safest, they pay the lowest rates. Lower-rated bonds pay a higher rate to compensate investors for the greater risk of default.

3. It depends on the length of the bond, whether it is long-term or short-term. Long-term bonds (for example, 10 to 30 years) will pay more than short-term (i.e., less than ten years) bonds.

This post contains affiliate links. Please please read my Disclaimer for more information

The Pros of Municipal Bonds

  1. Municipal bonds are more risk-averse and more focused on preserving than increasing wealth. The bonds provide a conservative investment in which your capital grows slowly and steadily.
  2. Muni bonds are exempt from federal taxes and most state and local taxes. The interest rate can also be tax-free for the residents of that state.

*Note that municipal investments are not always tax-exempt investments. There are cases in which the income generated by a municipal bond may be taxable. For example, a municipality may issue a bond that does not qualify for federal tax exemption. So conducting a preliminary investigation about their provisions is a must for investors.

3. They are free to trade at any time once investors purchase them.

4. The U.S. municipal bond market is unique for its size, liquidity, legal and tax structure, and bankruptcy protection by the U.S. Constitution.

The Risks of Munis:

keep in mind that like any investment, municipal bonds entail risk;

1. Because of their relatively low risk, they pay low-interest rates than other investment strategies.

2. When interest rates decline, the bond issuer may repay a bond before its maturity date, which is called Bond call (or call risk). Many municipal bonds are callable; therefore, if you intend to hold a muni to maturity, before having that, make sure that you know well the bond’s call provisions.

  3. Credit risk (or default). The bond issuer may encounter financial problems in paying interest rates or returning the principal in full. Investors need to know that sometimes governments lack the ability or willingness to return their debts. Credit ratings try to evaluate the credit risk of a bond compared with other bonds; nevertheless, a high rating does not give a 100% guarantee that the bond will have no chance of defaulting.

  4. Inflation risk. Inflation will be a risk for bond investors who receive a fixed rate of interest. Fixed income falls behind with rising inflation.

  5. Liquidity risk. It refers to the risk that the bond investors won’t find an active market for their municipal bonds. Therefore, the market for the bond may not be liquid, and quoted prices for the same bond may differ.

  6. Interest rate risk. Market interest rates have inverse relationships with the value of a bond. Interest rate risk is the potential that a change in overall interest rates will reduce the value of a bond or other fixed-rate investments.

Conclusion

Muni bonds are an attractive option for investors in high tax brackets; because they offer various benefits, risks, and tax treatments. Additionally, they are very suitable investment strategies for risk-averse individuals who prefer preserving their wealth to increasing it.

Although municipal bonds are less risky than other investment strategies, remember that they are not supported by the federal government and can sometimes default. Because of the different types of municipal bonds available and the fierce competition among dealers to gain a piece of the business, you should enter into muni investing carefully and cautiously.

It is better to consult with your financial manager to find out –based upon your financial goals and needs- whether it is appropriate for you to purchase municipal bonds or not. For more information, please visit The Municipal Securities Rulemaking Board’s Electronic Municipal Market Access
website.

“If you have any feedback about what is a municipal bond that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”

NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.

how to roll over 401k

How To Roll Over An Old 401K?

 

401(k)

401(k) plan is one of the greatest ways for employees to save for retirement. The government allows companies to offer retirement saving accounts -such as 401(K) accounts- indeed with some advantages to encourage people to save for retirement. However, if you are self-employed, you can also have a similar account for your retirement, known as a solo 401(k) or solo Roth 401(K).

What are 401(k) plan advantages?

  1. It is a tax-advantaged retirement account.
  2. It is a company-sponsored account.
  3. Federal law protects 401(k) retirement plans.
  4. You can get matching funds that I will explain below.

Two Basic Types of 401(k) Accounts:

  1. Traditional or Regular 401(k) is a pre-tax retirement investment. Meaning you will later pay tax on that money when you withdraw it in retirement.
  2. Roth 401(k) is a post-tax investment. This means that you have already paid your taxes; therefore, when you withdraw your fund, it is all yours –tax-free!

How does 401(k) work?

When you sign up for a 401(k) account, you set an amount or percentage that automatically will be taken out of your paycheck to fund the account.

Suppose you receive 100,000$ per year and contribute 10,000$ to your 401(k) account. With traditional 401(k), the amount you contribute to your 401(k) fund is deducted from your taxable income. For example, in this case, your total taxable income for the year would 99,000$. The money that you put into a 401(K) account is tax-deferred; meaning you don’t pay taxes on it until you withdraw it in retirement. Therefore, your money in your 401(k) account can grow without being taxed. However, with traditional or regular 401(k), you eventually have to pay taxes on your withdrawals.

On the other hand, some companies offer Roth 401(k) for their employees. With the Roth 401(k), your contributions are not tax-deferred. It means that whenever you get your paycheck, first, the taxes will get taken out from your salary or wages check, and then you will fund your Roth 401(k) with whatever is left. In other words, your contributions are made with after-taxed money. The bottom line is that your contributions are made with post-taxed money. So while Roth 401(k) does not give you any tax benefits today, it will give you huge tax benefits later on; because your withdrawals will be tax-free, and all will belong to you.

This post contains affiliate links. Please please read my Disclaimer for more information

Matching funds

Many employers offer to match your 401(k) contributions. It means that if an employee puts some of his/her money into a retirement account, the employer will put some extra money in there too. Therefore, if your company offers you a matching contribution program, you must accept it; because it is like free money or a pay raise. Companies have different formulas and calculations to do that. The most common way is to match a percentage of an employee’s contribution, up to a certain limit. For example, an employer may match 25% of your contribution. It means that if you put 10,000$ in your retirement account, the company will match 25% of that (i.e., it will put 2,500$ there). It is like free money or a pay raise, and not taking advantage of that means you leave “free money” on the table and say: no, I do not want that.

 401(k) Rollover

What is 401(k) rollover? The question may arise if you have an old 401(k) from your previous employer; or if you have changed a job and are wondering what to do with your 401(k) account. In that case, you will have three options:

  1. 401(k) Rollover: a 401(k) rollover is a transfer of money from an old 401(k) to a new 401(k) account or IRA (Individual retirement account).
  2. Keep your 401(k) with your former employer.
  3. Cash it out. Casing out a 401(k) is not usually a very good idea. Because if you withdraw your money before its due time, there are penalties for early withdrawals.

*if you don’t know which choice is best for you, depending on your unique situation, you may want to consult with a tax professional to make sure that you are making the right decision. Sometimes the wrong and unthought decision can cost you dearly.

Guide to 401(k) Rollover

  1. You may roll over your old 401(k) to a new retirement account when you leave your job. There are two types of rollovers: direct and indirect. In a direct rollover, your previous money account is transferred electronically to your new account. In an indirect rollover, you receive the money in your fund to redeposit it. If you receive the money in cash or check instead of transferring it directly to the new account, you only have 60 days to deposit the fund into your new retirement account. And once more, remember that this must be done within 60 days. If you miss the deadline, you will be subject to withholding taxes and other penalties. Between direct and indirect rollover, the direct one (with no check) is the best.
  2. Decide what kind of account you want and then open it; that is to say, decide which type of new retirement account suits you well. Note that your age –how old are you and how far you are from approximate retirement age- and your risk tolerance are among the important factors that should be taken into account in this decision.
  3. You have to choose a financial institution, such as a bank, brokerage, or online investing platform to open a new retirement account.
  4. See what is needed to begin the 401(k) rollover process.

Conclusion

Now you know that if your company offers a 401(k) plan or any contribution matching program, you have to accept it definitely and undoubtedly. The best way to reassure that your organization offers you this retirement plan is to go to your human resource department. If you work for a small company that does not have an HR representative, the next best person to talk about would be your boss or employer.

“If you have any feedback about how to roll over an old 401k that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”

NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.

Target date funds

What Are Target-Date Funds? How Do They Work?

What Are Target-Date Funds?

When we are young, we tend to take more risks. However, as we grow older, we become more conservative and take lower-risk options. Target-date funds (TDFs) –also known as a lifecycle, dynamic-risk, or age-based fund- exactly do just that; they mix several investment strategies to help you take financial risks when you are young and use your target-date fund when you reach retirement age.

Let me explain with an example. Suppose you are a 25-year-old employee and intend to retire at the age of 66. Therefore, you start to invest in a target date 2060 fund (or if you plan to retire in or near 2035, you pick a fund with 2035 in its name). This target date in the name of the fund (i.e., 2060 fund) is the approximate date that you -as an investor- plan to retire and withdraw your money. At that time, you will use that money (or target-date fund) to cover your retirement expenses, such as your child’s college tuition, bills, healthcare services, etc.

How Do Target-Date Funds Work?

TDFs Work Through Glide path and Diversification.

If you want to invest in a target-date fund, you probably hear the word glide path. It is an investment roadmap; It will take you all along the way (i.e., from the beginning of your career until retirement), mapping out a mix of bonds, stocks, and other investments that are appropriate based on the target date. Like an airplane coming for landing, the glide path allows your savings to make a gentle landing into retirement by reducing the market risk (moving from aggressive to conservative investments over time).

When we are young and new at our job, retirement sounds very far away. That is why the glide path starts with a diversified mix of stocks and lower portions of bonds. As time passes, the glide path reduces the stock mix and adds to conservative and safe investments (such as bonds, cash, and cash equivalents). In another way, a target-date fund’s gradual shift to more conservative investments is called the glide path.

What Is Diversification?

Diversification is an investment strategy. If one kind of investment (e.g., stocks) has a bad year, other types of investments (e.g., cash and bonds) might have a good year. Put differently, diversification is another word for the expression “do not put all your eggs in one basket.”    Target-date funds use a diversification strategy. They consist of a mix of investments and change investment strategies over time. For example, they invest heavily in stocks in the early years but getting more conservative as time goes on.

This post contains affiliate links. Please please read my Disclaimer for more information

Benefits and Risks of Target-Date Funds:

Pros Cons
It has a very simple and straightforward process: to put it more simply, it means that when you are young, you pick a fund and put it in it as much as you can. But, you can’t withdraw your money till you reach retirement age.  Therefore, TDFs can help people who are less financially literate. TDFs do not provide guaranteed income; The principal value is not guaranteed at any time, including at the target date. (Remember that like all investments, target-date funds can lose money if the stocks and bonds owned by the fund drop in value). Therefore, it is very important to monitor your investments and do a little research for better outputs.
It is a good way for long-term investments. Investors have to make appropriate decisions based upon their personality, needs, goals, credible research, and information, related expenses, etc. Therefore, TDFs may not be as simple as they appear.
It uses a diversification strategy (has a very diversified portfolio). TDFs hold a mix of stocks, bonds, and other investments. TDFs have related expenses that investors should take into account.
TDFs have a diversified portfolio; generally, investors have three choices according to their risk tolerance. People naturally have different features; they can be conservative, aggressive, or moderate risk-takers. These features and tendencies change as time goes on. As mentioned earlier, people usually become more conservative or moderate risk-takers when they grow older. TDFs provide this option for investors to switch to a different risk level. Sometimes only one fund company offers different TDFs. In this regard, it is very risky; investors have to know that they are entrusting all of their assets to a single fund company! Remember that target-date funds are not risk-free.

Several Tips to Know about Target-Date Funds:

  • In addition to choosing the right target-date fund, you should put the right amount of money into it. An under-funded nest egg will not cover your retirement expenses.
  • You have to practice and improve your trading and investment skills before entering a real market.
  • TDFs are not guaranteed against losses. However, they use diversification strategies. Thus, they are less risky than investing in individual stocks or bonds.
  • Take care to select a TDF that aligns most closely with the date you plan to retire.
  • Choose an investment strategy that best matches your risk tolerance.
  • Check related fees and expenses. Compare different target-date fund fees and expenses using FINRA’s Fund Analyzer.

Conclusion

Retirement is a new stage of your life that needs preparedness and planning. Planning for retirement starts with thinking about your retirement goals and retirement expenses. For this, you should have enough money to meet your needs at that time. TDFs are increasingly one popular investment option for your retirement period. They are structured to help individuals invest in low risky, well-diversified portfolios that rebalance over time for retirement goals. In fact, you are trading savings today for security tomorrow.

Target-date funds are one of the good ways for investing your money; there is no doubt that they are better than not investing at all. But, you have other investment options that may work better for you than TDFs. Therefore, it is a good idea to consult with an investing professional you trust. An investing pro can help you in choosing the right path for you. However, remember that the final decision should always be yours.

“If you have any feedback about what are target-date funds that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”

NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.

Money Market

What Are Money Market Funds?

A money market fund is an open-ended mutual fund that invests in cash and low-risk, short-time debt securities like commercial paper and US Treasury bills. The aim of a money market fund is to preserve money while obtaining a nominal yield. Companies and institutions often use a money market fund to manage their short-term cash needs.

The law from the US Securities and Exchange Commission (SEC) categorizes three groups of money market funds according to the investments of the fund, including prime, municipal, and government.

Types of money market funds

Federal regulation requires money market mutual funds to make the types of debt securities they hold to be very short in maturity and high in credit quality. The entire money market funds agree to industry-standard regulatory necessities concerning the maturity, quality, liquidity, and diversification of the fund’s investments. Based on the focus of the fund, investments can include short-term US Treasury securities, Eurodollar deposits, certificates of deposit, federal agency notes, repurchase agreements, corporate commercial paper, and compulsion of cities, states, or other kinds of municipal agencies.

Investors who might consider money market funds

Money market fund can be suitable for customers who:

  • Have a short term financial goal
  • Have a low acceptance for volatility, or are seeking to diversify with a more conservative investment
  • Require the extremely liquid investment

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The returns on money market funds are commonly lower than the returns on other types of fixed income funds like bond funds. The money market fund looks to provide stability, so plays a significant role in your portfolio. People who invest can utilize money market funds in some ways:

  • To compensate for the usually larger volatility of bond and equity investments.
  • As short time investments for properties, they might be required in short term.
  • In the form of a holding place for properties when waiting for other investment opportunities to appear.

Evaluating a money market fund

A money market fund is a kind of fixed income mutual fund with very strict maturity, diversification, credit quality, and liquidity requirements designated to assist it to achieve its purpose of major preservation and everyday access for investors. When customers chose a money market fund they should determine if its features are in line with their investment goals and strategy.

  • The aim of numerous money market funds is generally to supply current income consistent with major preservation.
  • US Treasury and government money market funds possibly can provide a lower credit risk and return profile compare with prime money market funds.
  • Municipal money market funds can be suitable for non-retirement accounts that are not yet tax-shielded.

Pros of money market funds

  • Stability

Money market mutual funds are among the least volatile kinds of mutual fund investments.

  • Liquidity

Settle brokerage account trades in other investments or regain funds from a money market mutual fund is easily accomplishable.

  • Security

Federal rules required the fund to invest in short-maturity and low-risk investments; it makes them less susceptible to market fluctuations than many other types of investment.

  • Short duration

Since the money market mutual fund is short-term (up to a few months), so they are normally exposed to less interest rate risk than longer-maturing bond fund investments.

  • Diversification

Money market mutual funds have several different securities; with restricted exposure outside US Treasury funds to every issuer.

  • Possible tax advantages

The interest payments of some money market funds invest in securities are usually exempt from federal, and even in some cases, exempt from state income taxes; these funds may be a possible source of stable, tax-efficient income.

Risk of money market funds

  • Credit risk

Money market mutual funds are not insured by the Federal Deposit Insurance Corporation (FDIC) unlike regular bank certificates of deposit (CDs) or saving accounts; money market mutual funds invest in high-quality securities and attempt to preserve the value of your investment, but there is the risk of losing your money without the guarantee of receiving $1 per share when you redeem your shares.

  • Inflation risk

Due to the safety and short-time nature of these types of investments, money market mutual fund returns is normally lower than the return of more volatile investments like regular stock and bond mutual funds, which is generating the risk that the rate of return might not go forward with inflation.

Prime money market funds:

Foreign exposure: Entities placed outside the countries can be influenced by adverse regulatory, political, economic, or market developments in those foreign countries.

Financial services exposure: Fluctuations in government rules, interest rates, and economic downturns have a notable negative impact on issuers in the financial services sector, such as the price of their securities or their capability to meet their payment obligations.

All prime and municipal money market funds:

Liquidity risk: in case the fund’s liquidity drops below required minimums due to the factors like market conditions, the fund can require a fee on the sale of your shares, or can suspend your ability to sell shares for a short time.

Institutional municipal and institutional prime money market funds:

Price risk: when you sell your shares, due to the fund’s share price change, they can be worth more or less than what you originally paid for them.

Conclusion

Money market funds are fixed income mutual funds that invest in securities featured by short duration and least possible credit risk. These types of funds are among those investments that have the least volatility. The money market fund’s income depends on the types of securities the fund invests in is taxable or tax-exempt.

“If you have any feedback about what are money market funds that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”

NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.

Municipal bond

What Is A Backdoor Roth IRA? How Does It Work In 2021?

Do you remember what are Roth IRAs and Roth 401(k)s? Before going into details about “what is Backdoor Roth IRA?” let’s first review them very quickly and briefly.

A Roth IRA or Roth 401(k) allows taxpayers to put aside a few thousand dollars a year into their retirement savings account. As we mentioned earlier, they are post-tax
retirement accounts, meaning that when you withdraw your fund at retirement age, it is tax-free, and all belongs to you. Why? Because you have already paid your taxes. To put it in other words, these Roth accounts are different from traditional (or regular) 401(K) or IRA retirement funds that are pre-tax. It means that such retirement plans give taxpayers immediate tax advantages (i.e., they are tax-deferred), meaning that in IRA or 401(k) plans, investors will later pay the tax on that money when they withdraw it in their retirement.

Why Roth IRA is so wanted?

Well, the answer is very simple. It has so many advantages, including:

  1. Roth IRA plan offers tax-free growth and tax-free withdrawals in your retirement.
  2. There is no age limit. You even can transfer your Roth IRA to your beneficiaries, and their withdrawals will be tax-free too.
  3. Roth IRAs don’t have required minimum distributions (RDMs), meaning that you can take out as much or as little as you want, and whenever you want, or leave it all for your beneficiaries. By the way, many investors intend to use their Roth as a legacy or an inheritance. Furthermore, you can keep your money in your Roth IRA account as long as you want; Thus, your fund can surely keep up growing there.

The problem is that people who earn above a specific amount are not entitled to open or fund Roth IRAs –indeed under regular rules, anyway. Now this question may arise that what are Roth IRA income limits. In 2021, the income limit for singles is $140,000, and for married couples, the limit is $208,000. Moreover, the contribution limit is $6,000 a year unless you are age 50 or older—in which case, you can deposit up to $7,000. Note that Roth IRA income limits are indexed to inflation and change annually, meaning that the higher the inflation rate, the more likely you are to see limits will go up. On the whole, your Modified Adjusted Gross Income (MAGI) must be less than the annual limit set by the IRS.

Okay, now let’s get back to our main question, What Is a Backdoor Roth IRA?

If your income is too high for a Roth IRA, you can get to a Roth through the “back door,” called Backdoor Roth IRA alternatively. Backdoor Roth IRAs are traditional IRA or 401(K) accounts that have been converted to Roth IRAs. Say differently Backdoor Roth IRA provides an option for higher-income investors who ordinarily couldn’t contribute to a Roth. Interesting ha? Okay, let’s see how we can set up a Backdoor Roth IRA?

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How Does It work?

In this part, we will explain how to create a Backdoor Roth IRA. Actually, you can do that in different ways.

  1. You can create a traditional IRA account and then roll over the fund to a Roth IRA account. Do this account conversion as soon as possible. If you delay your conversion, everything will become too complicated. So keep life simple and stay out of trouble.
  2. You can create a 401(k) account and then roll it over to Roth IRA.

Is Backdoor Roth IRA Right for You? What You Need to Know?

  1. You have to know that this conversion to a Roth IRA account is not a tax dodge. Suppose you have $7,000 in your traditional 401(k) or IRA account and then convert your account to Roth IRA account. In this case, you still owe taxes on $7,000.
  2.  Be aware that income limits do not apply to Roth IRA Backdoor conversions.
  3. Aside from getting around the limits, Backdoor Roth IRA will have significant tax savings over the decades for you; because Roth IRAs, unlike traditional IRAs, are not taxable when you withdraw the money at your retirement. In general, it is the most advantageous point of Roth accounts, whether Roth IRA or Roth 401(k), that you pay taxes upfront on your contributions and everything after that is tax-free, and all accumulated money in the fund belongs to you at retirement. It will be a very beneficial option for your retirement savings; because tax rates will go up in the future, and your taxable income will be higher after you retire than it is now. So if your employer offers you a Roth plan, never refuse it.
  4. The Backdoor Roth IRA is not a good idea for those who think that will need to withdraw the money they are contributing in the next five years. In this case, you will have to pay a penalty when you withdraw it.

5. Ask a financial or tax advisor for help to carry out this conversion process correctly and avoid costly tax errors. There are very subtle points in this process that if you do not know them very well, they may incur costs chargeable to you. For example, suppose you’ve rolled a 401(k) balance from an old employer into an IRA this year. In this case, if you also do a Backdoor Roth, you will wrap up owing taxes.

Conclusion

Backdoor Roth IRA allows high earners to have Roth IRA accounts indirectly. This situation illustrates a significant tax loophole. High-income taxpayers can not open Roth IRA accounts directly because of Roth IRA income limits. But, traditional IRA doesn’t have such limits and does not prevent people with higher incomes from contributing.

The Backdoor Roth IRA takes advantage of this fact and helps you maximize your retirement savings. Keep in mind that it is not a simple and straightforward process, but it is very complicated and twisty. For help in fulfilling your Backdoor Roth IRA correctly and avoiding costly mistakes, please consult a financial planner or tax advisor.

“If you have any feedback about what is a backdoor Roth IRA that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”

NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.

ETF

What Is An ETF And How ETFs Works?

An ETF, or Exchange-traded fund, is a type of mutual fund that consists of a variety of assets whose units are traded on the market during the day as stocks and have a structure similar to mutual funds; This means that you can buy or sell one or more units of an ETF fund during the hours and days when the stock market is open. By buying ETF units, you invest your money in a fund that uses a professional management team to try to make a profit by building a portfolio of stocks and securities.

As mentioned, these funds have a structure similar to mutual funds, but unlike mutual funds, which can only be traded at the end of the day and after the NAV calculation, investors can trade ETFs as stocks during the day and take advantage of Benefit from its faster liquidity than a mutual fund. Also, the advantage of potential tax exemption for investing in these funds and somehow being less costly are other features of this investment model in the capital market.

Of course, these types of funds also have limitations, including the fact that because they are traded like stocks, it is possible that the stocks of these funds will be traded at different prices from NAV before arbitrage disappears and the balance is restored. Investing in ETFs is very similar to investing in mutual funds, but the main difference between the structure of ETFs and other mutual funds is that they create liquidity by exploiting the potential of the stock market.

Exchange-traded funds (ETFs) are a type of mutual fund whose units are traded during the day as stocks in the market and have a structure similar to mutual funds.

In ETFs, the liquidity guarantor pillar has been removed and a new pillar as a market maker provides the liquidity of ETF investment units in the market and in cases where there is no supplier or no other buyer to sell or buy the demanded units or supply Has been undertaken. Exchange-traded funds or ETFs are divided into three categories: equity investment, mixed investment, and fixed income securities investment. The difference between these three types of funds, in addition to their trading strategy, as their name implies, is in their buying and selling fees.

ETF History:

These types of funds have been introduced to the market for more than 20 years and have experienced significant growth over the past decade. The first ETF was introduced in 1993 under the name Spider (SPDR), which is designed to follow the S & P500 index.

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Benefits of ETFs

• Tax exemption for unit transactions

• Increased liquidity of fund units despite marketing operations

• Optimal allocation of assets (diversification) by eliminating costs and spending little time

• Simplicity, ease, and speed in the transaction

• Reduction of liquidation time compared to current funds

• Buy and sell fund units online

What is the difference between ETF and other funds?

The most important differences between ETFs and mutual funds are:

• Ease of investing: ETF funds can be traded from all brokerage offices and online trading systems. So it is very easy to invest in and out of the ETF.

• Calculation of instantaneous net asset value: The net asset value of its assets is instantaneously calculated and communicated to investors. (Their NAV is calculated automatically every 2 minutes.)

• Cheaper than other funds: One of the advantages of ETFs is that they are cheaper than other mutual funds because ETF buyers trade through stockbrokers and therefore there are no marketing costs for the fund.

• Non-payment of taxes on sales: The period of activity of these funds is unlimited and there is no minimum or maximum for the investment of individuals and legal entities in these funds. In these funds, the redemption of units is possible in the short term without paying a fine. Also, the repayment payment period of the units is a maximum of 3 working days.

Assets of ETF funds

They may put different assets in one fund. An ETF may consist of several stocks, bank deposits, gold bullion, government treasury bonds, some cash, coins, currency, or a combination of all of these. What they put in the box determines the type of box.

If you buy 1% of an ETF fund, you become the owner of 1% of all these assets. This means that if the fund consists of 100 kg of gold, 10 billion deposits, 10 billion treasury bonds, and 2 billion shares, you will own 1 kg of gold, 100 million deposits, 100 million treasury bonds, and 20 million shares.

Of course, you, as a shareholder of this fund, cannot touch this combination of the fund’s assets or want to sell only 100 grams of gold to you, for example. Rather, if you buy a unit of the fund, you gain as much as your share and sell it to cash in on your assets.

It is true that your assets remain in the box and you cannot physically deliver them, but you will reap the benefits of price changes on these assets.

Important points of investing in ETF

• When choosing your fund, pay attention to its management and performance as your selection criteria.

• Invest in these funds with a medium and long-term perspective ( with a time horizon of more than 6 months to a year).

• Enter only the part of your savings that you do not need to consume immediately in the short term. The result of investing in funds requires more time (than stocks).

Conclusion

In general, having tradable mutual fund units in the portfolio creates a high degree of diversification in the portfolio and is recommended to everyone. And because of this high diversification, it is very suitable for those who do not want to bear the risk of individual stocks or do not have time to manage their portfolio.

On the other hand, it can be said that these funds, since they have the properties of investment funds, but are traded in the form of stocks, are suitable for people who prefer the stock trading process and do not want to enter the mechanism of mutual funds in exchange for diversification. Therefore, these funds can be suitable for those investors who want to be medium or long-term investors and actually intend to maintain their investment.

“If you have any feedback about what is an ETF and how ETFs works that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”

NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.

Penny stock

How To Invest In Penny Stocks?

Penny stocks are stocks with a value of less than 5 USD. They are usually used for high-profit trades. Most of these stocks belong to companies that do not have much reputation in the stock market, which means that trading in these stocks has a high risk for the investor.

Beginner investors are often attracted to penny stocks because they think they can make a lot of money this way. Most of them think that if their share increases from $0.10 to $0.20, my money will double, so I can make a big profit with a small investment. This is a common perception of this group of investors. But what exactly is a penny stock? We will continue to explain this and explain how we can grow in penny stocks with a realistic look.

What is a Penny Stock?

A penny stock is a stock that is worth less than $1 per share. Buying these stocks is more dangerous than buying stocks of large and reputable companies. Penny stocks include stocks of bankrupt companies, some scams, and conspiracy theories to transfer greedy novice money to other operators.

Penny stock history:

Before electronic exchanges and the creation of discount brokerage firms, penny stocks were prohibitively expensive. In the old days, you paid about $0.25 to buy and sell a stock.

This commission was a brokerage firm. Given that it was a fixed amount, it did not matter whether a stock was trading at $1 or $100. In any case, the commission accounted for a large portion of the investment in penny stocks rather than more valuable stocks.

A number of mutual funds have implemented policies to prevent shares under $5 from being traded because of cost or because of their dubious nature. Over time, people shunned penny stocks, and it was assumed that only companies in poor condition would allow their stocks to be exchanged for pennies.

Penny Stocks Today, the accepted definition of penny stocks is to some extent extended to other higher-priced stocks in OTC markets.

Should I buy penny stocks?

OTCs generally have less liquidity, so being on the list requires fewer requirements. Many of these companies do not submit financial statements even on time and are often managed by ordinary people.

In general, it is always recommended to avoid this type of stock. Of course, there are legitimate companies that have low stock prices. AMD electronics company used in laptops and mobile phones, for example, has long been traded for less than $5 per share. Or Swiss health insurance company Roche is listed on the OTC market for American investors to access.

These two are law-abiding companies and provide financial reports on time. They are clearly not illegal and have only one characteristic of most penny stocks, which is the low price per share.

Many penny stocks and over-the-counter companies are nothing more than sham companies and involve liaison with undercover companies that do not report financially once a year.

A large number (perhaps about 40%) of OTC shares are gray market shares or some kind of OTC stock that are legal but unofficial and unlicensed. Can you imagine your money being invested in a place where you do not know the income or even the business model is not clear? This is the same concern for half of the OTC stocks.

Although it may seem like a simple and quick way to make a profit, know that penny stocks are anything but a quick way to make a profit. The simple way to get rich from the stock market is to buy shares of good companies and have them for a very, very long time, maybe even a decade. I recommend penny stocks only to people who have little capital to start. If you also decide to buy penny stocks, remember the points I will make in the next section.

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How to invest in penny stocks?

As we explained in the previous sections, penny stocks are free-market companies with a stock price of less than $5 and a market capitalization of less than $200 million. They are sometimes referred to as “securities market robbers” because of the risks associated with them. However, for penny stocks, if you follow these steps, you can have a good position in an experienced and advanced investor portfolio.

• Remember that this investment is as risky as larger stocks. Therefore, have enough savings to help you earn at least three months if the capital fails.

• Understand why penny stocks are considered a risky investment. Penny stocks are one of the most volatile and manipulated types of stock exchanges. Companies do not normally have the good financial performance of the past. In addition, stocks are often manipulated by tricks.

• First, experience secondary and major stocks for at least one year. During this time, you should familiarize yourself with reading your balance sheet, income statement, and cash flow statement.

Find out about specific aspects of penny stocks that they find potentially profitable and risky for your shopping cart. Understand the mechanics of cash flow, market investment, and stock structure. Also, understand the purpose of a state-owned company that fraud and loss of investment may occur in penny stocks.

• Look for “red flags”, common features of companies that have fake goals or were created solely to make money through low capital.

• Look for companies that are constantly generating cash and increasing their free cash flow over time. Avoid companies that have a lot of debt.

• Instead of the share price, compare the price of each share with the book value per share (fixed assets minus debt).

• Buy companies with very little cash flow (ideally less than six times).

• Limit any investment in a small stock to a maximum of 5% of your portfolio.

Conclusion

I do not recommend penny stocks to everyone because it is not suitable for everyone. This investment requires that you have a certain amount of risk tolerance as well as the ability to react quickly in uncertain situations. However, if you think you have the ability to trade pennies, you need to learn how to deal with money management techniques so that you can skillfully maintain your capital and succeed in this business.

“If you have any feedback about how to invest in penny stocks that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”

NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.