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  • Bad credit loan – How to improve the financial health

    Bad credit loan – How to improve the financial health

    Bad credit loan - How to improve the financial healthIf you have no other option you’ll take a bad credit loan. But it isn’t the end of the world.

    By Guy Avtalyon

    Bad credit loan isn’t the end of the world. Here are several ways how to overcome them. I’m gonna introduce some of them.

    What is a bad credit loan?

    In the first place, let me be clear about what is a bad credit loan.

    A bad credit loan is a relief option for consumers whose low credit scores limit their borrowing options. In other words, a bad credit loan, or just another name for a personal loan, can secure you out of a financial emergency. Even if your credit score is lower than you would like it.

    The good thing is that you can get a loan with bad credit, but it’s harder to get a good deal.

    Yes, I know! Nobody likes to be judged. But when it comes to loans, creditors are going to look deep into your credit history and make a decision about whether or not to lend to you.

    They need to define how risky it would be to lend money to a borrower. And if you’ve got bad credit, you could expect to show you the exit space. But, even if you have bad credit, there may be ways to get a loan. Here’s how.

    You can get a loan from a bank, but if you’re looking for a reasonable interest rate and adjustable qualifying requirements, you better don’t even think to open that door. Even than, you have several options available. But you have to know that loans are typically more expensive.

    With low credit scores is easy to slip into expensive traps. But a bit of homework can help you avoid the problems. After you prove you’re able to repay on time, it shouldn’t be hard to rebuild credit so that it’s easier to borrow next time.

    How credit scores and credit reports can fix bad credit loan

    Keep in mind that bad credit has different meanings to different lenders. Lenders know your credit score, and you should too. So, check out your credit reports. Especially if your credit card issuer reports to the consumer credit bureaus. This is important because some of the information contained in them is necessary to calculate your credit scores.

    You’ll want to make sure there are no incorrect derogatory marks on your reports before applying for a loan. The major consumer credit bureaus aren’t perfect, so it’s important to read your credit reports carefully. If there are false negative marks, you should contact the specific credit reporting company.

    Along with correct information, the provider will remove the error.

    Your credit scores are important, too. Your credit scores, along with other factors, can affect your approval odds for a loan and the terms you qualify for. Don’t be discouraged if your scores are not what you’d like. A little bit of work could help put your scores in better shape.

    How to improve your credit status

    So, it’s time to start improving your credit status. Your scores are calculated using different credit factors and scoring models. Just be focused on the factors with the greatest influence. For example, payment history is one of them, but check out everything to improve your credit overall score.

    You can’t change the past,  but make all of your current payments for at least the minimum amount. And on time. This is key for payment history.

    Speaking about usage, keep the amount of debt you owe low compared to your total credit limit, ideally less than 30%. Maxed-out or over-the-limit lines of credit can be particularly harmful. Also, keeping old accounts open instead of closing accounts after they are paid off can help increase your credit history length.
    Mix. Frankly, you shouldn’t apply for a new type of credit to influence your scores. But it can naturally grow over time as you experience major financial events, such as buying a home, for example.

    But be careful. Applying for several new credit accounts in a short period of time can make you seem risky to lenders.
    The best bet is opening new accounts only when necessary and when you know you can handle them responsibly.

    Shop around to compare options

    Shop around for loans, and include credit unions in your search. Those institutions may work with you even if you have bad credit. Credit unions are often smaller than large banks. Also, they are focused on the community. Usually, they will review your application personally and discuss it with you. If you sit across the desk from a human being, they can understand what you need.

    So, it’s time to start shopping around for the best loan for you. Some people simply choose the first loan they’re approved for.

    But, that could be a major mistake.

    Different lenders may offer different interest rates and loan terms. Lenders have their own methods for evaluating these factors.

    There is a selection of lenders and loan facilitators who can help low-credit applicants obtain affordable financing. But not all loan features are created equally.

    For example, one lender may offer you a loan with a 19.99% annual percentage rate while another can offer you a loan with a 15.99% APR (annual percentage rate). If you don’t shop around and accept the first offer of 19.99% APR, you would be overpaying by 4 percentage points.

    Shopping around for loans is easier than ever. We have the internet. Yes, you should check into your local options, such as banks and credit unions. But you can easily view the estimated loan terms of various online lenders in one place using the internet.

    How to compare loan terms

    If you have bad credit, the loan could be approved but also will cost you more. The lenders may recognize you as risky. Since personal loans for people with bad credit can be so much more expensive, it’s especially important to compare loan terms to find the best deal. To compare loan offers, there are a few basic terms to pay attention to.

    Loan repayment period: Loan repayment period is the time frame in which you’ll have to repay the loan. Personal loans require fixed monthly payments for an established period. The longer the repayment period, the more interest you’ll pay, and the more the loan are likely to cost you.

    Monthly payments: Monthly payments are determined by the amount you borrow, your interest rate, and your loan term. Make sure the payments are achievable.

    Loan maximum and minimum: Lenders usually establish a minimum amount and maximum amount they’re willing to lend. A lender may not be well suitable for you if it won’t loan you enough money or if it requires you to borrow more than you want.

    Annual Percentage Rate (APR): APR is the total cost you pay each year to borrow the money, including interest and fees. A lower APR means the loan will cost you less. If you want to take out a personal loan with bad credit, you’ll probably have a higher APR.

    Try online lenders to fix bad credit loan

    Peer-to-peer lending services are one option for getting a loan with bad credit. Instead of borrowing from banks, you can do it from individuals. They may be more willing to take the risk, but they’re not looking to lose their money.

    These non-bank lenders have different risk tolerance and use different ways to evaluate your creditworthiness. Online loans evolve. They may approve you with lower credit scores.

    Just be sure to avoid payday loans. They are costly short-term loans and they have heavy promotions online.

    Use collateral

    It isn’t the best choice, but if you have trouble getting approved, you may need to put up collateral. If you pledge something valuable, your lender will know you’re serious. In such a case, lenders will have a better chance of collecting on the loan because they can take your collateral and sell it.

    But be extremely careful when pledging collateral. If you have a property, you can probably borrow against it. But the risks are worthy of your attention. If you can’t make all of your payments, you might be forced out of your home. Think twice to avoid making a bad situation even worse.

    Some con artists take advantage of you when you’re down. They particularly target people who are urgent to borrow. These lenders charge enormous fees, so make it almost impossible to dig yourself out of debt.

    Sometimes, you won’t even deal with a real lender: Scammers advertise loans, but you need to pay steep application fees upfront. In the end, you don’t get approval, and you don’t get your money back. This is well-known as an advance fee scam. Don’t pay upfront fees to get a personal loan. Any processing fees should come out of your loan proceeds.

    Think more than twice about a payday loan

    If you need money right away, need an amount less than what a traditional lender might be willing to give, or have been denied a personal loan because of poor credit, you may be tempted to try a payday loan.

    A payday loan is a short-term loan for a small amount — usually $100 to $500 — that you secure by giving the lender a post-dated check or electronic access to automatically withdraw your bank account. The loan is usually due on your next pay date, along with fees. Depending on the state, payday lenders can charge from $10 to $30 per $100 you borrow.

    According to research by The Pew Charitable Trusts, for example, if a payday lender charges you $15 for every $100 you borrow per two weeks, it amounts to an APR of 391%. The Pew research found that fees from online lenders can be even higher, averaging an APR of 652% as of April 2012.

    Never mind where do you live, a payday lender may not check your credit in order to approve you for a loan. Many only require you to be an adult with an active bank or prepaid card account. Also, they will ask for proof of income and valid identification. It may be easy to get a payday loan when you have bad credit, but the high cost could make it difficult to repay.

    Don’t take out a payday loans

    Some studies found that many payday loan borrowers can’t repay their loans without taking out another payday loan.
    High-cost payday lending is prohibited in some countries. Others set limits on how much payday lenders can loan.
    The regulation varies from country to country.

    If your credit scores are low and you need a loan right away, finding an online lender or some other source offering personal loans for borrowers with bad credit could be your best option.

    Just proceed with caution and be sure to compare the terms of each loan to find the most affordable lender. But, if you can’t find such an option that you can easily repay, it may be better to wait and work on your credit.

    Applying for loans, especially if done the wrong way, can further damage your credit.

     

  • Personal finance – How to Manage?

    Personal finance – How to Manage?

    Personal finance - how to manage? 1Traders Paradise will walk you through some suggestions on how to manage money in your 20s

    By Guy Avtalyon
    Update on Feb 12, 2019 

    We received an email from our visitor Christopher Trum, Content Manager LendingTree Brands, that asked us:
    ”I was reading a recent article on Traders Paradise (traders-paradise.com/magazine/2019/01/personal-finance) and wanted to thank you for including data from our research study!”
    With his permission, here is the link with full access to the original source
    https://www.lendingtree.com/finance/places-millennials-carry-the-most-debt/

    Personal finance is something that has to be well managed no matter how old is someone.

    Who is going to take care of your own personal finance so early, for example in the 20s?
    You may not think of your 20s as the time to buckle down financially. Between beginner salaries and student loans, many young people at their 20s bearly sustain to live from paycheck to paycheck. I know that. But what I also know is that your 20s are the best time to set the base for your financially secure existence. Yes, it is the right time to take care of your personal finance. Both, now and in the future.

    Current status and future

    You’ve probably graduated from college, started your first job, and are starting to make decisions on your own. Your adult life has just begun and retirement seems years away. But this is the right time to discuss your personal finance choices, how to manage your money responsibly, and to plan your financial future.

    Personal finance exactly that: how you manage your money, your income, expenses, and savings, all of them. The truth is that you have to put an effort into managing your personal finances. In that way, you’ll better understand where your money is going. Also, you’ll better recognize if you have to make changes to meet your future financial goals.
    Managing your personal finance better is something that can literally pay off. It can help you stay on top of your bills and save thousands of dollars each year. With that extra savings, you can pay off any debts you might have. Or maybe you would like to put that money towards your pension or spend them on your holiday or new car.

    Create a budget to protect your personal finance

    I know, for many of you creating a budget is critical. But without a budget, you’ll have difficulties to track your finances. Moreover, how will you identify key savings opportunities? So, if you don’t have one yet, take a time to map out your living costs.
    Budgeting is the process of tracking your income, bills, and expenses in order to assess how much you can spend and what you can afford each month. Creating a budget and sticking to it is the foundation for personal financial success as it helps you to live within your means and avoid debt.

    You don’t need any advanced tools to create a budget. All you need is to open up a spreadsheet on your laptops or phones and add your all expenses. It’s okay to add the random ones that pop up once a year. Then compare what you’re spending on what you’re earning. If the numbers don’t align, then you’ll need to work on making some changes to ensure that you leave yourself enough space for savings.

    When creating a budget, you have to write down:

    • Your income: How much are you making per pay period?
    • Your expenses and payments: How much you spend on rent/mortgage, utilities, groceries, etc each month?
    • Debts owed: How much do you owe for student loans, credit card debt, and similar?

    Pay yourself first – Start your emergency savings

    The recommendation is to pay yourself first. That means the first bill paid each month should be some paybacks if you have any. The second is to pay for utilities, put aside money for living buyings. And everything left over at the end of the month is your extra money. Open a savings account and put it there. The biggest mistake is the young people make is not saving early enough. They tend to put off savings until their 30s. That is wrong.

    Just because you’re on the younger side doesn’t mean you’re immune to financial emergencies. Quite the contrary. Without emergency savings, you may have no choice but to get out costly loans. A better choice is to have an emergency fund. It has to be at least the amount you need for three months’ living expenses. Ideally, more like six months’ worth.

    Having emergency savings is very important. In fact, it should trump any other financial aim you may have.
    Let’s look at an example: Assuming you want to have $1 million in savings by the time you retire at age 65. This is how much you’ll need to invest each month:

    Personal finance - how to manage?

    Time is on your side when you’re young. You should save about 20% of your earnings. That should help you maintain your current lifestyle in retirement. If you want to travel more and more entertainment when retire, you should save about 30% of your earnings. That will help you have a lifestyle better than what you currently have.

    A little bit of money saved now is going to make a big difference later in your personal finance.

    Pay off present debt to secure personal finance

    According to a recent study by LendingTree, the average millennial has an average of $24,000 in debt. This can paralyze your financial, and even your physical and mental health.

    AVAILABLE FOR US residents ONLY

    Large amounts of debt can seem daunting to pay off. Hence, it’s important to make a plan. You have to start paying it off quickly. Just include it in your budget as a monthly payment. But if you have more than one debt, which to pay off first?
    You have to consolidate debt to one payment with a lower interest rate when possible.

    But you may be more driven to try the debt avalanche or debt snowball methods of repayment.
    Never focus on just one expense at a time.

    If you owe money to a friend or family member and paying that debt off is a mental relief,  pay that as first and then move on to other debts.

    It’s important to make a plan to pay off and manage your debt to avoid heavy interest fees.

    Get out of credit card debt

    Credit cards are the worst enemy in anyone’s personal finance. Anyone who runs out of cash simply turns to credit cards. But can you afford to pay the balance? Combat the urge to use your credit cards for the shopping things you can’t afford.

    The U.S. credit card debt increases every year. For example, the average household debt is nearly $16,000. So much!

    The essential part of your good account balance is to eliminate the debt from the credit card as soon as possible. Actually, you’re wasting your hard-earned money on interest costs. By doing so you’ll have a double benefit: you’ll get out of debt and you’ll improve your credit score. And that is crucial if you plan to buy a home or lease a car in the near future.

    Build credit

    Never live above your resources and use credit for money that you don’t have. Never buy things on credit if you don’t have the resources to pay it off in full at the end of the month.

    A credit report is a report that shows your credit history and is used to determine your creditworthiness. Building a strong credit history and maintaining a high credit score is essential for your financial health. In your early 20s, it’s important to build your credit by paying your credit cards and utilities on time but avoiding debt in the process. Instead, use a credit card to build credit. That could be a smart use example. Of course, if you can’t afford to pay it off by the end of the billing statement, you apparently can’t afford it.

    It is important to make sure you don’t break the terms of your agreements. So even if you want to pay down added debt, you have to pay at least the minimum on your credit cards.

    Investing your savings if you want to take care of your personal finance

    When your savings start to grow, you can add more money to your pension. It’s a great way to make sure you’ll be able to live more comfortably later in life. Or you can make an investment plan based on your goals and timeframes.

    If your savings goal is more than five years away, putting some of your cash into investments would allow you to earn more from your money and keep up with rising prices. Investments are something where you put your money to get a profit. You can choose from four main types of investment:

    Shares – you buy a stake in a company
    Cash – the savings you put in a bank or building society account
    Property – you invest in a physical building, whether commercial or residential
    Fixed interest securities  bonds) – you loan your money to a company or government

    There are other types of investments available too, including:

    Collectibles, such as art and antiques
    Commodities like oil, coffee, corn, rubber or gold
    Contracts for difference, where you bet on shares gaining or losing value

    The different assets owned by an investor are called a portfolio.

    As a general rule, spreading money among the different asset classes will lower the risk of your overall portfolio. More on this you can find HERE.

    For emergency savings, the best place for your cash is the bank. For long-term savings, investing in stocks is efficient for growing wealth. And you don’t need to take an extreme amount of risk. Sure, the stock market can be volatile, and it’s had its share of ups and downs through the years. But it’s also historically delivered a roughly 9% average annual return, which is about nine times more than what you’ll get from a savings account today.

    The good news is, you don’t need to be an expert to enter the stock market. If you’re not comfy investing in a particular company, just put your money into exchange-traded funds or ETFs. These low-cost funds simply seek to track existing indexes, like the S&P 500, and because they offer instant diversification, they’re a less risky prospect than buying up individual companies’ stock.

    Protect yourself financially

    As you enter maturity, you’ll want to make sure that you are protecting yourself and your finances with adequate insurance. Take advantage of the benefits offered at work: health insurance, life insurance, short and long-term disability insurance. You may consider some benefit packages outside of your current work offers.

    Fight for a higher salary if you want to take care of your personal finance.

    Your 20s are a time to pay your dues but that doesn’t mean you shouldn’t fight for more money along the way. In fact, the more money you receive at your current job, the more you’ll probably get at your new job. So, boosting your salary won’t just put more money in your wallet now, but also throughout your working years.

    Knowing how to manage your money and where start with financial planning can be terrifying and difficult. Especially when you’re in your 20s. Finances can be complicated, but it’s crucial to find out what is available to you. So, it’smart to start working on financial matters earlier rather than later in life.

     

  • CRISIS – Analysts Have BLACK FORECAST FOR 2019

    CRISIS – Analysts Have BLACK FORECAST FOR 2019

    CRISIS - BLACK FORECAST FOR 2019Analysts have black predictions for the coming year. The crisis is knocking the door.

    By Traders-Paradise Team

    We will face the worst crisis, which is the analysts’ prediction. Here is the selection of their statements.

    “The European Union is about to implode this year.” investor Mitch Feierstein has predicted in a New Year episode of the Keiser Report. He also unveils which country will become the next Greece. The answer is surprising.

    This year will be hard for Europe not only due to Brexit. The other member states could also bring the bloc down, according to Feierstein. “Nationwide protests in France are only the first sign of looming wider unrest,” the analyst stated to Russia Today.

    “You are gonna see global unrest. I think you’ll it as a feature in Italy when the EU tries to bully them,” the British-American investor noted, citing infective “draconian austerity measures.”

    But, not only Italy but also France could follow the fate of debt-ridden Greece, Feierstein warned. He noted the low approval rating of President Emmanuel Macron, rising unemployment, and huge wealth inequality in the country.

    “Italy has got four trillion in loans they said there are not going repay… France has got a similar situation but they’ve got civil unrest with the population burning down Paris. So one of them will leave,” he predicted.

    Both countries have been breaking EU budget rules.

    After just one year of compliance in 2018, Paris announced that its budget deficit for 2019 is set to be 0.2 percent higher than the three percent threshold that the bloc’s rules allow. Brussels agreed to tolerate the breach. The same as it had been doing so for almost a decade before Macron’s presidency.

    Italy has also been at loggerheads with the 28-nation union. Last year, the EU Commission wanted to put Italy in an economic disciplinary program over a serious breach of EU regulations on debt. The standoff between Rome and Brussels was settled only in mid-December when Italy agreed to a budget deal despite domestic criticism from the opposition.

    But Mitch Feierstein is not alone.

    The economist Nouriel Roubini, also known as Dr. Doom also warns that we are in the midst of a new asset bubble that could end in a crash bigger than that in 2008.

    He made a list of 10 reasons why the world is at the threshold of a new crisis. Almost each of them begins and ends with a single name – Donald Trampa. But also insults on his account.

    As the first reason for the new crisis, Nouriel recognizes the fiscal-stimulus policies that are currently pushing the annual US growth rate above its 2% potential are unsustainable. His opinion is that by 2020, the stimulus will run out, and a modest fiscal drag will pull growth from 3% to slightly below 2%.

    Second, the US economy is now overheating, and inflation is rising above target. The US Federal Reserve will thus continue to raise the federal funds rate from its current 2% to at least 3.5% by 2020. That will likely push up short- and long-term interest rates as well as the US dollar.

    “The inflation is also increasing in other key economies, and rising oil prices are contributing to additional inflationary pressures. That means the other major central banks will follow the Fed toward monetary-policy normalization, which will reduce global liquidity and put upward pressure on interest rates.” – wrote Nouriel for The Guardian in September last year.

    In his explanation he wrote further:“… once a correction occurs, the risk of illiquidity and fire sales/undershooting will become more severe. There are reduced market-making and warehousing activities by broker-dealers. Excessive high-frequency/algorithmic trading will raise the likelihood of “flash crashes.” And fixed-income instruments have become more concentrated in open-ended exchange-traded and dedicated credit funds.”

    A new recession wave is coming

    Joze Mencinger,  Slovenian lawyer, economist, and politician, believes that the world is waiting for a new wave of economic instability. He is also called the architect of the Slovenian transition.  

    “Lately most of the crisis has been due to a lack of demand, because, mankind has no problem on the supply side, we have a problem on the demand side. We can simply say that the production of a car is cheaper than its sale,” Mencinger believes.

    If there is just one question in this test: is the world awaiting a new crisis? It is frightening, but these economists would complete a positive answer.

    There are many indications that growth will slow down. And this is in a way accepted today by IMF and World Bank officials in projections for next years.

    Contrary to these catastrophic forecasts, we have to notice. In order to make a recession, employment usually falls, and growth becomes negative, industrial production falls. All of these indicators are still strong and do not indicate that we are entering a recession. Of course, there are some events that can lead to it and this should be followed.

    The American stock market killed by a strong word

    December events on the US stock market are, of course, something to be watched.

    It all began before the Catholic Christmas when American brokers had the worst Christmas Day ever. The stock indices seemed to have been riding on the roller-cruiser because they returned to the highest level since 2009 the next day. Blumberg described this situation as bizarre.

    The financial sector overlooks the real sector. Because in the real sector there are no such swings.

    And it looks that the term ”bizarre” is just fine.

    It seems that in December last year the US stock market killed a too strong word. The market did not come as a result of the fact that the US Federal Reserve Administration raised interest rates. From the tightening of the monetary policy, the much worse exchange was a “verbal delict”.

    The market is always sensitive to what the officials of powerful states declare.

    And perhaps officials today are not completely aware of this, but their word affects the markets. This is not a new phenomenon. This is well known and therefore traditionally central bankers give very careful statements. The fact is that their word is analyzed and evaluated by the investment public. It can affect the movement of prices in the financial market.

    The bubble pops off in one place, but the crisis arrives everywhere

    Big crises are like blowing balloons. The bubble that began to swell at the end of December soon vanished.

    And it’s just when the indexes have come close to nearly 20 percent. This is considered a border, after which what investors call “bear market”. This means that the stock market is on a descending path and that the bad days are coming. Fortunately, this time it did not happen.

    But, unlike in 2008, the governments had the policy tools needed to prevent a free fall.

    ”The policymakers who must confront the next downturn will have their hands tied while overall debt levels are higher than during the previous crisis. When it comes, the next crisis and recession could be even more severe and prolonged than the last”, pointed Nouriel Roubini.

    The truth is one if we enter the new crisis. People around the world will pay these costs, and this will guarantee profits primarily to the super-rich. After all, they own property. Whether it is a state tax, an increase in the purchase price of goods and services, or any fees for services.

    With the cut of costs, the rest of the welfare state will make this enormous debt will pay billions of the people by their work and their mostly poor income.

     

  • Leverage Trading Stocks – The More Leveraged the Better

    Leverage Trading Stocks – The More Leveraged the Better

    3 min read

    Leverage Trading Stocks - The More Leveraged the Better

    Leverage trading stocks is a concept that can enable you to multiply your exposure to a financial market without committing extra investment capital.

    However, you need to understand leverage trading to help fully immerse yourself in the stock market.
    The idea behind leverage trading stocks is to increase your potential payout on a play. However, it doesn’t always work out the way you want, and it can prove dangerous for your portfolio and trading account, especially when you’re new to the stock market.

    Leverage is the ability to trade a large position with only a small amount of trading capital. We are sure you already find the articles that suggest that trading using leverage is risky. Also, you can find that new trader should only trade cash-based markets, like individual stock markets, and avoid trading highly leveraged markets.
    Well, we disagree with this in full. Trading using leverage is no riskier than non-leveraged trading. Also, for certain types of trading, the more leverage that is used, there is the lower the risk.

    What Is Leverage Trading Stocks?

    In the stock market, leverage trading stocks are using borrowed shares from your broker to increase your position size in a play. So you can potentially make more money on the other side. Options trading, futures contracts, and buying on margin are all examples of leverage trading. But buying on margin is maybe the riskiest.

    When you buy on margin, you’re essentially financing your position in the stock.

    Actually, it’s just like buying new furniture. For example: Say you want a new kitchen and you talk the salesperson down to $25,000. You don’t have $25K in cash, so you put $2,000 down and finance $23,000 over five years. Every month, you pay the lender your furniture note. That includes the principal, which is the amount financed, and the interest, which is money paid to the lender in exchange for financing you.

    People do this every day with i.g. cars and other physical kinds of stuff.

    Well, it doesn’t sound so dangerous.

    But even a furniture purchase can leave you in financial trouble.

    Let’s say you put $2,000 down on your new kitchen and drive it off the lot. A few days later, you lost it in a fire accident. The insurance company pays the kitchen’s market value, which has already depreciated below what you paid for it. In other words, you have to keep paying off your kitchen note even though you don’t have a kitchen.
    That’s what usually goes wrong with leverage trading.

    Leverage Trading Stocks - The More Leveraged the Better 1

    How Does Leverage Trading Stocks Work?

    Leverage trading stocks work by allowing you to borrow shares in stock from your broker.

    For one example:

    Let’s say you have $2,000 to invest. This amount could be invested in 20 shares of Microsoft stock. But in order to increase leverage, you could invest the $2,000 in five options contracts. You would have 1000 shares instead of just 20.

    Instead of investing in options contracts, you can buy a certain number of shares. Leverage is always expressed as a ratio, such as 2:1. In that case, you could double your position size by borrowing twice what you actually buy.

    When you exit your position, you’re responsible for paying back the broker for the shares you borrowed. Whatever you have left is your profit, minus your own initial investment in the shares.

    2:1 leverage example

    2:1 leverage means you can borrow twice the amount of your investment from your broker.

    For example, you want to invest $50,000 in stock, but you only have $25,000 in your trading account. Using leverage, you could buy on margin at 2:1, giving you $50,000 to invest.

    It doesn’t come free, of course. You have to make an initial deposit or down payment to your broker for the privilege of buying on margin.

    But what happens to your investment?

    Let’s say you bought $50,000 worth of stock at $50 per share. The stock climbs to $55, and you sell.

    At that point, you have to return the borrowed shares or money to your broker. The brokerage firm extended $25,000, so you owe that back, plus any interest required. The rest you keep as profit.

    If the stock price drops, though, you’ll still have to pay back your broker. Plus, you’ll have to cover any losses your broker incurred during the trade. And your own, too.

    The Leverage is Incorrectly Considered Risky

    Leverage can be highly risky because it can boost the potential profit. But also the loss that trade can make. For example, you make a trade with $1,000 of trading capital but has the potential to lose $10,000 of trading capital.

    This is based on the theory that if a trader has $1,000 of trading capital, they should not be able to lose more than $1,000. Therefore should only be able to trade $1,000. Leverage allows the same $1,000 of trading capital to trade perhaps $5,000 worth of stock, which would all be at risk.

    Well, this is theoretically correct. But it is the way that an inexperienced trader looks at leverage, and it is, therefore, the wrong way.

    Leverage Is a High-Risk Strategy

    There are no secrets, investing risk increases with reward. The higher the potential payout, the higher your risk for great losses. This is especially true when you’re trading with leverage because you’re playing with the house’s money.

    Brokerage firms require margin account holders to maintain a certain minimum balance. Your cash and owned securities serve as collateral for whatever you’ve borrowed. It reduces the risk for the broker. Though, it increases your risk, because if you borrow too much on a losing position, your account can get wiped out instantly.

    The Real Truth About Leverage Trading Stocks

    Leverage is actually a very efficient use of trading capital. The professional traders value it because it allows them to trade large positions. Such as more contracts, or shares, etc. And with less trading capital. Leverage does not modify the potential profit or loss that trade can make. Contrary, it reduces the amount of trading capital that must be used, thereby releasing trading capital for other trades.

    For example, you want to buy 1000 shares of stock at $20 per share. That would require maybe $5,000 of trading capital. So, the rest of your initial leaving the remaining $15,000 available for other trades.

    This is the way that a professional trader looks at leverage. Therefore, this is the correct way.

    The bottom line

    Leverage trading can be a slippery slope.

    On the other hand, the more leverage the better. Professional traders will choose highly leveraged markets over non-leveraged markets every time. Telling new traders to avoid trading using leverage is essentially telling them to trade like an amateur instead of a professional. Every time that pros trade a stock, they always use the highest leverage they can. They would never trade a stock without using leverage.

    The next time that you are making a stock trade, consider using a leveraged market instead.
      

    risk disclosure

  • PENNY STOCKS – How much does it cost to invest in

    PENNY STOCKS – How much does it cost to invest in

    3 min read

    PENNY STOCKS - How much does it cost to invest in 1

    Penny stocks sound cheap, don’t you think?

    Yes, because they are. They are also called micro-cap stocks

    Penny stocks describe shares of a company that trades for low amounts. It is usually between $0.01 to $2.00. But some institutions count a penny stock is anything that trades for less than $5.00 per share.

    They’re not expensive, so what’s the catch?

    So why trade penny stocks?

    Everyone who entered the stock market knows that penny stocks equal a bigger risk than regular stocks.

    The reason for inflated risk is simple. The companies that hold penny stock typically have no profits and minimal operations.  

    Many of these companies are speculative because they are thinly traded, usually over the counter instead of on major exchanges like the New York Stock Exchange.

    They usually trade on the pink sheets or on FINRA’s over-the-counter bulletin board (OTCBB) and are not required to file with the Securities and Exchange Commission (SEC).

    These stocks have low liquidity due to a lack of buyers and sellers. Hence, orders may not be filled right away or even at all. Moreover, volatility tends to be high among OTC (Over-the-counter) stocks, and bid-ask spreads are frequently large.

    Investors in penny stocks should be prepared for the possibility that they may lose their whole investment.

    Plus, penny stocks are notorious for being part of so-called pump-and-dump schemes. The scammers buy up shares and then promote it as the next hot stock on blogs, message boards, and e-mails. Once the stock price is unnaturally pumped up by all the gossips, the scammers sell their stake. The investors stay with big losses.

    But…

    Where penny stocks have the advantage is the low cost.

    Also because of the simple math of penny stocks. If you buy shares for $0.40, and if the stock goes up by $0.20, then your profit is at 50 percent. That’s the pie-in-the-sky scenario.

    However, it’s just as easy for your $0.40 share to go down by $0.20 and lose 50%, instead.

    So, a $1,000 investment could lose value pretty quickly.

    Of course, not everything is so dark.

    Several years ago, CNN published a story about a young man who made his first million dollars from trading penny stocks.

    He decided to begin with his life savings of $1,500. And 3 years later his portfolio was worth more than $1 million.
    See how worth it was.

    So, how to trade penny stocks?

    We warned you but, yet you still want to trade penny stocks.

    It is possible to trade penny stocks successfully.

    If you trade penny stocks successfully, they really can offer the greatest risk-reward ratio of any investment type. But take care, the odds are not in your favor if you don’t understand what you’re doing. The must is, you have to learn. You must have the knowledge, education, in order to understand the market to successfully trade penny stocks.
    PENNY STOCKS - How much does it cost to invest in 3
    And you must stay far away from scammers. Read the fine print on any email or ad you see on social media and in emails. If you find a disclaimer at the bottom of a social media post or an email, be cautious.

    That means that someone’s getting paid to post an ad.

    YOU WOULD LIKE TO READ The awesome thing is that you can invest in stocks online for free. See HOW!

    It’s possible to profit when you understand the game, but the odds are against you when you don’t. And worse: manipulators and scammers often run the penny stock game.

    For investors who can’t afford shares of Apple, for example, the potential gains from trades like this are too good to pass up.

    So penny stock trading prospers. With a relatively small investment, you can make a nice return if the trade works out.

    So, if you spot an advertisement that promises dollars from your pennies just remember these several rules:

    Never trust the sweet stories

    You must not believe the penny stock stories that are touted in emails and on social media websites.

    And you have to say no. Let’s say, you can’t invest in penny stocks as if they were lotto tickets.

    Unfortunately, that’s what most people do, and they lose over and over. Think of penny stocks as people that you can’t trust.

    Instead, focus on the profitable penny stocks with solid earnings growth and which are making 52-week highs.

    Read the disclaimers

    Penny stocks are sold more than bought. They come as tips in emails and newsletters.

    Remember, the free penny stock newsletters are not giving you tips out of the goodness of their heart. Read the disclaimers at the bottom of the newsletters. And you will see. They are getting paid to pitch a stock because their investors want a presentation for the company. There is nothing wrong with that, but almost all penny newsletters make false promises.

    YOU WOULD LIKE TO READ Online stock brokers make investing easier than ever

    You have to know something. There is a difference between stocks making a 52-week high based on an earnings breakout and stocks making a 52-week high because three newsletters picked it. The disclaimers at the bottom of the email or newsletter, which the SEC requires,  reveals very often a conflict of interest.
    They are being paid to pump up the stock, but they rarely tell you when to sell. Usually, it’s far too late.

    Sell your penny stock quickly

    The charm of penny stocks is you can make 20% or 30% in a few days. If you make that kind of return, sell quickly.
    Never get greedy, aiming for a 1,000% return. The penny stock is getting pumped up, take any profits. And move further.

    Never trust company management

    Don’t believe what you hear from companies in this penny stock’s world.

    The companies are trying to get their stock up so they can raise money and stay in business. That’s okay, but there is no reliable business model or accurate data. So, most penny stocks are scams that are created to enrich insiders.

    There are large circles of the same people run promotions using different press releases and companies.

    Never sell short

    Don’t do it.

    Penny stocks are too volatile. If you’re on the wrong side of the trade, you could lose 50% or more on a short squeeze. Another problem is that it’s difficult to find shares of the penny stock to short. Leave shorting penny stocks to the pros.

    Focus on penny stocks with high volume

    Stay with stocks that trade at least 100,000 shares a day. It could be difficult to get out of your position if you trade stocks with low volume.

    Traders Paradise suggests that you trade penny stocks that are priced at more than 50 cents a share. Penny stocks that are trading less than 100,000 shares a day and are under 50 cents a share are not liquid enough to be in play.

    Don’t trade large positions

    You really need to be careful with position sizing. Never learn the hard way not to trade big. Famous traders rule is not to trade more than 10% of the stock’s daily volume.

    The limitation of position size will provide you to get out of the stock faster.

    The bottom line

    If you want to invest in penny stocks you have to learn.

    By the way, learn from Timothy Sykes, who is famous for turning his Bar Mitzvah gift money of about $12,000 into millions by day-trading penny stocks while in college. For the past years, Sykes has been teaching his strategies through the sale of instructional newsletters and video lessons. You can find his lessons very easy.

  • Mass exodus if May allows no-deal Brexit?

    Mass exodus if May allows no-deal Brexit?

    3 min read

    Brexit deal, is it to be or not to be? 7
    More and more of British companies have already triggered emergency plans to manage with a no-deal Brexit. If the UK crashes out of the EU. Many of them will move operations abroad, claim the British Chambers of Commerce.

    It said that in recent days alone, it had been told that 35 firms had activated plans to move operations out of the UK, or were stockpiling goods to combat the worst effects of Brexit.

    It looks that many companies had acted to protect themselves since May’s Brexit deal was decisively rejected by MPs in the Commons earlier this month.

    The worst effects of a no-deal Brexit

    Actually, it has seen a sharp increase in companies taking actions to try and protect themselves from the worst effects of a no-deal Brexit. No deal has gone from being one of several possible scenarios to a firm date in the diary.

    Last week the Airbus, Europe’s largest aerospace manufacturer, which employs 14,000 people in the UK and supports another 110,000 through supply chains, warned of potentially disastrous effects of no deal on its UK activities.

    Tom Enders, the boss of Airbus, said: “Please don’t listen to the Brexiters’ madness, which asserts that because we have huge plants here we will not move and we will always be here. They are wrong.”

    UK exporters need access to the EU’s customs union

    Ever since the vote to leave the EU in 2016, business groups including the BCC and the Confederation of British Industry have lobbied ministers, arguing that UK exporters need access to the EU’s customs union. Because it allows goods to be imported tariff-free.

    The CEO of Airbus, the global leader in aviation, clearly warned that Brexit threatens to destroy the developmental life in the UK. He urged the British to “not listen to the madness of Brexit’s supporters,” who argue that Airbus will remain forever in the UK because there are huge factories in that country.

    Airbus has more than 14,000 employees in the UK. Another 110,000 people work in related activities.

    Britain should leave the EU on March 29th.

    The Dutch authorities have announced that they are in contact with more than 250 foreign companies planning to move to the Netherlands due to the UK leaving the European Union.

    “It is not so easy to move huge factories to other parts of the world, but the Airplane Industry is a long-term business. We will redirect investments quickly in case there is no agreement on Brexit with the European Union. Do not be misled, because a lot of countries are barely waiting to be opened factories of Airbus parts there”, said CEO of Airbus Tom Enders.

    But the prime minister May has insisted that the UK must leave both the customs union and EU single market. And that the referendum result of 2016 is to be fully respected.

    YOU WOULD LIKE TO READ Brexit deal, is it to be or not to be?

    Political debates about no-deal Brexit

    Labour MP Yvette Cooper has revealed to the Observer that two major employers in her West Yorkshire constituency had written to her. They are warning of the damaging effects of no deal on their UK operations. Burberry, the luxury goods manufacturer, employs 750 people in Castleford and Haribo, the confectioner, 700 across her constituency.

    Cooper is pushing for a Commons amendment that would pave the way for Brexit to be delayed until the end of this year. It looks that MPs may need to work longer and lose their February half-term break if Brexit is to be delivered on time.

    The extra hours will be needed to get its legislation onto the statute book before the planned 29 March exit.

    Theresa May will seek backing for her deal in another Commons vote on Tuesday.

    Commons leader Andrea Leadsom described bids by MPs to prevent a no deal as a “thinly veiled attempt to stop Brexit”.

    Writing in the Sunday Times, she said this would be an act of “constitutional self-harm”.

    The UK is due to leave the EU at 23:00 GMT on 29 March and the prime minister has faced repeated calls to rule out the prospect of leaving without a deal if no agreement can be reached.

    There is a grave concern about a bill, proposed by Labour MP Yvette Cooper. It could extend Article 50 – which triggers the UK’s withdrawal from the EU by nine months. That means the prime minister has to secure a deal by the end of February.

    The Queen does not show any political views but…

    The British Queen has called on citizens to find “common language” and respect “different points of view”.

    Commentators say the remarks are considered the debate about the Brexit, while deputies will have to vote again next week on an agreement to leave the European Union.

    BBC journalist who follows the royal family, Nicholas Bichel, believes that there is no doubt that the queen “sends a message”.
    The Queen, as head of state, remains neutral in political matters and usually does not express her views on the controversial issues.

    However, speaking at the event marking the 100th anniversary of the Sandringham Women’s Institute in Norfolk, the queen said: “The continued emphasis on patience, friendship, a strong community-focus and considering the needs of others are as important today as they were when the group was founded all those years ago.

    Of course, every generation faces fresh challenges and opportunities. As we look for new answers in the modern age, I for one prefer the tried and tested recipes, like speaking well of each other and respecting different points of view; coming together to seek out the common ground, and never losing sight of the bigger picture. To me, these approaches are timeless, and I commend them to everyone.”

    The queen’s call touched the same questions as her Christmas message, in which she invited people to treat others with respect, “even when there are deepest differences.”

    The Brexit rises tensions on the once-bloodiest border in Europe

    Thousands of people travel every day for over an hour and a half across the Irish Sea to the United Kingdom. This is not only an important commercial line but an important cultural connection for many in Northern Ireland, which now directly depends on the parliamentary majority Theresa May.

    The city Larne shows its loyalty to London. The roads through the nearby villages are painted in the colors of the crown. Local Unionists the Irish, angry opponents of Catholic Irish, have their MP, Sammy Wilson.

    “We have strong historical ties with the rest of the United Kingdom for hundreds of years. It’s a common faith, a common language, and we will not give up on that,” he said.

    Unionists, who support the government Theresa May, refuse to support her proposal for Brexit if their relationship with the rest of Britain become more difficult. And the prime minister has not given them a satisfactory proposal so far.

    The main concern of the Unionists is whether the peace agreement for Northern Ireland which has ended decades of bloodshed will be respected.

    May is facing the problem that Wilson is not ready for a compromise.

    Their interests would be satisfied if they would leave the EU without an agreement. Then, they could say that this item has been removed from the agenda.

    Wilson argues that the Union’s insistence on the status of the border is a violation of the terms of the peace agreement.

    “This would mean that our laws are written in Brussels, not London. In other words, we would be constitutionally separate from the rest of the United Kingdom, which is a breach of the Belfast agreement,” said Wilson.

    The MPs also proposed a number of amendments with alternative proposals, which include postponing the deadline for abandoning the EU on March 29, in order to avoid issuance prior to reaching an agreement.

    Many MPs fear that leaving the EU without a formal withdrawal agreement would cause chaos in ports and business disturbances, although some supporters of Brexit support this option, and believe that this view is excessive.

    YOU WOULD LIKE TO READ The Brexit deal that risks “letting the British people down”

    Another amendment concerns the escape and ensuring that the border between Northern Ireland and the Republic of Ireland will not be returned.

    Both the UK and the EU believe that restitution of border controls could jeopardize the peace process, but Brexit’s advocates are afraid that the safeguard mechanism could connect Britain with EU rules for an indefinite period without any declaration of them.

    Risk Disclosure (read carefully!)

  • Online stock brokers for beginners

    Online stock brokers for beginners

    2 min read

    It is easier than ever to find good online stock brokers. The benefits are numerous. You can learn and invest in the comfort of your own home. The research team at Traders Paradise made some research. We tried to find the options on the market that are good for you. So, we wanted to find the best online stock brokers for beginners and super investors alike.  We had to deep into the financial world with stock experts.

    And we hope that this research will help anyone get started.

    The popularity of index fund investing and robo-advisors is rising. It may seem the trading of individual stocks is lost. But, it isn’t the truth.

    Millions of investors continue to trade individual stocks and other securities. Because online stock trading sites make investing easier it’s important to do so using the best online stock trading sites.

    Investors should know the best online stock brokers to trade with. They have the right to know. Some online stock brokers are known for their award-winning customer service. But the others are known for low-priced stock trades or powerful trading tools. Traders Paradise-Finance wants to highlight some of the best brokers available today. Actually, we want to give you some tips for choosing a broker.

    Criteria for the best online stock brokers

    The best online stock brokers offer low fees, great customer service, and smart research tools.

    Discount brokers charge as little as $4.95 for online trades. Compare that to the $100+ that many full-service brokers charge. It seems like a no-brainer choice to choose the discount broker. But, you must know how to pick the right one.

    Trading online is a self-directed practice, and you need the right broker backing you up.

    But it is a stormy time for online stock brokers.

    Between significant cuts in commissions and a few major acquisitions, the competition is fierce.

    YOU SHOULD READ Stocks Online for Free – How to Invest

    So, let’s like this, there is no one best online stock broker. But each one has different strengths and weaknesses. Our aim is to spotlight them and help you find the best one for your investing style.

    Every trader should care about cost. A few of the fees we analyzed include:

    Cost per transaction:

    Commissions are typically an investor’s biggest cost base. For example, in 2016, a usually unassisted transaction fee averaged about $8. But early 2017 brokers decrease their commission. Fidelity, E*Trade, and TD Ameritrade, also did that. Now, you can trade for as low as $4.95. No matter what the price, though, for us, transparency is key. We wanted to see affordable pricing structures.

    Account minimums:

    Seeing your wealth shrink due to a tough market or bad strategy isn’t fun. It’s worse if you’re also getting dinged by your broker’s minimum account balance requirement.

    Charges for data and tools:

    The best online stock trading sites have quality market data like real-time quotes, educational resources, and stock-screening tools built right into their platforms. But some, we have to say, like Fidelity and TD Ameritrade, stand out for also providing top-shelf resources. And it is totally free of charge.

    Extra costs:

    Executing a trade over the phone, for example, can increase an $8 commission fee to $25 or more. Some platforms offer free education on sophisticated strategies but require an upgraded platform with an annual fee. Besides cost, we valued educational material, reports and tools, and the usability of the platform itself.

    After Traders Paradise conducted this research, the following to be our top picks:

    The best for cheap trading is Ally Invest. But beginners would like E*Trade. Speaking about the platform the best has TD Ameritrade. Best research and tools have Fidelity.

    Online stock brokers for beginners 1

    Why use a discount broker

    A discount broker costs you much less money per trade. You won’t have the steep commissions that full-service brokers charge. What this means is more cash in your pocket and the opportunity to make more trades.

    The main reason is cost.
    But here we will break down who would do better with a full-service broker and who could get by with a discount broker.
    Because cheaper isn’t always better.

    Let’s see in this way.

    Do you have a large number of large investments?
    Or you not have the desire nor the know-how to handle your portfolio?
    Can you afford high commission fees?
    Maybe you not have time to manage your portfolio effectively?

    If your answers are “yes” to each of these questions, a full-service broker might be the best option for you.
    But, if you want to save money on each trade made or like to be in control of your investments, the discount broker will suites you better.

    Because you don’t want to be pressured to take other investments and you want to make frequent trades.
    The other things to consider when you have to choose your online stock brokers are:

    Minimum deposit/balance:

    Some brokers require a minimum deposit to open the account. Others don’t have a minimum. Yet others require a minimum average balance over the life of the account. Determine what you can afford to keep in the account if choosing accounts with a minimum requirement higher than $0.

    Customer service:

    Take a trial run on any broker’s website that you are considering. Check out the support they have readily available on their website. But you should also email and call them with questions. See how long it takes to get an answer.
    A discount stock broker can save you a lot of money and save your portfolio. But they aren’t for everyone. Here are a couple of other choices you may want to consider:

    Robo-Advisors: If you are familiar with a completely “hands-off” approach, robo-advisors can save you even more money. The automated system uses an algorithm to invest your money for you. After you input your risk thresholds and investment goals, the computer does the rest.

    YOU SHOULD READ Automatic Trading – What Is It

    Peer Lending: This is those who want to stay away from stocks and bonds for now. If you are one of them, consider peer-to-peer lending. You decide how much money you want to invest and what type of risk you want to take. The minimum investment is often about $25. You can break your investment up into as many loans as you want. This helps diversify your portfolio.

    Full-Service stockbroker: If you have a lot of money to invest or need that in-person advice, a full-service stockbroker is for you. You’ll find them at your larger brokerage houses, but keep in mind that their commissions are higher than discount brokers. In the most common situations, you will have to pay $100 – $200 per trade versus $4 – $7 per trade.

    The bottom line

    Using a discount broker is a great way to trade and keep your profits. Choose your broker wisely by paying attention to hidden fees and understanding account minimums. A discount broker is a great way for beginning and experienced investors alike to invest in their future.

    To find which online brokers suits you the best, you should read Traders Paradise’s WALL OF FAME.

    Risk Disclosure (read carefully!)

  • Stocks Online for Free – How to Invest

    Stocks Online for Free – How to Invest

    Stocks Online for Free - How to Invest 1Why invest in stocks online for free, where to find broker, is it really free? Read this post to the end.

    By Guy Avtalyon

    Technology is making it easier than ever to invest in stocks online for free. However, some places still are charging outrageous fees and commissions to buy stocks and ETFs online when it’s possible to invest in stocks online for free.

    Some of the firms that advertise “get started with just $5” can charge you huge fees as a percentage of what you invest. Truth is, we saw some really dishonest financial advisors charging thousands!

    We can offer this: everything held equal, the less you pay in fees, the better your returns.

    Where to find stocks online for free

    Gratefully, we live in the 21st century, and there’s never been a better time to be a small investor.

    For 95% of people, that’s fine. For those who want to buy individual stocks, there are still places that allow you to buy stocks online for free.

    You have only a few ways to buy stocks online for free.
    Thanks to developing technology investing is cheaper. More and more companies are lowering their fees and commissions.
    It is possible that they will continue with costs reducing in the coming years due to competition. So, it’s reasonable to expect the cost will drop more.

    Fees don’t have to stop you from making wise and lucrative investments.

    And now, in today’s mobile world, investing is becoming easier and cheaper than ever. Buying and selling stock investments is not as easy as watching TV series but don’t worry it is not rocket science either.

    Today you can enter your stock trades from stockbrokers websites for stock trading apps. It’s very convenient. Just read reviews of the best trading apps and you can find the best selection for you.

    Some of them you can find on Traders Paradise’s Wall of fame, like E-trade, TD Ameritrade or Fidelity.

    We can suggest you these 3 the best stock trading apps for beginners.

    • TD Ameritrade

    It is the best for ETF trades. You’ve probably discovered Exchange Traded Funds (ETFs) and you want to cut fees, but you want to maintain a well-diversified portfolio.

    ETFs maintain a tax-advantaged structure. They usually offer lower fees than comparable mutual funds. But, most brokerages charge you to buy and sell ETFs. Well, this broker, TD Ameritrade, don’t do so.

    TD Ameritrade offers over 100 commission-free ETFs from industry giants iShares, Vanguard, and even more. Because of the diversity of no-load ETF funds, TD Ameritrade is, in Traders Paradise’s opinion, top broker for the people who want to consider tax-loss harvesting on their own.

     

    Moreover, TD Ameritrade also has no minimum and no maintenance fee IRAs.

    TD Ameritrade’s mobile app also offers research, information, and portfolio analysis that makes free investing that easier.  But we have to say, TD Ameritrade charges for some ETFs, mutual funds, and equity trades. Our suggestion is, filter for no-load ETFs before you buy.

    TD Ameritrade has about 4,120 no-fee funds.

    • E-trade

    This broker offers thousands of mutual funds with no transaction costs.

     

    Mutual funds are the old-school ETF similar principle from the diversification angle. Like ETFs, they hold many individual investments. Hence, investors get some level of diversification in a single fund.

    Unlike ETFs, they are priced, they aren’t traded with a commission but with a transaction fee charged by the broker. That’s because they are bought and sold at the end of each trading day.

    That fee can be pretty big, sometimes almost $50. But many brokers have a list of no-transaction-fee funds.

    Of those that do, E-Trade put up the best showing, with about 4,440 and 4,350, respectively. This is why this broker tops our list of best mutual fund providers. That means you can buy funds on those lists with no charge. Though as with ETFs, investors in these funds will pay expense ratios.

    • Fidelity

    It is the best for Free ETF Trades & No Minimum IRA. Fidelity allows you to invest for free. This is surprising for most people because most people don’t connect Fidelity with “free”. But, Fidelity offers a range of commission-free ETFs. That allows the majority of investors to build a balanced portfolio.

    Fidelity IRAs have no minimum to open, and no account maintenance fees. Let’s say, you could deposit just $5, and invest it for free. That makes this a much better deal compared to some other companies. Furthermore, Fidelity just announced that it now has two 0.00% expense ratio funds. And yes, they are free.

     

    So, you can not only invest commission-free, but these funds don’t charge any management fees. This is truly free investing. But to make it a prime app, it has to have a great app, and Fidelity has it. Fidelity has a great app, so that makes them the top broker.

    Fidelity’s app is the easiest to use out of all of the investing apps we’ve tested. All their features work brilliantly together, and they have tones of them. Plus, they are the all-in-one option. With them, you have a full service investing broker. And that is more than just free.

    Why invest in stocks online for free

    Investing in stocks is supposed to be about building wealth. Well, paying trading commissions can slow your progress..Small fees on stock trades might not seem like a big deal. Most online brokers charge $10 or less for each transaction. But keep in mind that’s per transaction. If you are just starting out as an investor, or if you have only small amounts to invest, even a small fee can take a big bite out of your profits. 

    But now, you know how you can invest in stocks online for free.

     

  • Buying Stock Without a Broker – Ways to Do

    Buying Stock Without a Broker – Ways to Do

    Buy Stocks Without Broker - Ways to DoIs it possible to buy stocks without a broker? Why shouldn’t be? Here is how to do that.

    By Guy Avtalyon

    Buying stock without a broker offers some advantages and disadvantages. Young investors are worried about investing in the stock market.

    The financial crisis of 2008 strongly disturbed our formative professional years. We can still feel its specter lingers a decade later. Only 33% of millennials own stock, according to a 2016 Bankrate survey.

    The other survey, a 2015 Harvard University survey found that just 14 percent of millennials trust Wall Street.

    As any good stockbroker or experienced investor can tell you, you can find bad brokers more often than the good one.

    Being “bad brokers” means those who put their own interests above that of their clients. We have a list of bad reputation brokers here on Traders Paradise’s wall of shame.

    So, we must consider how to buy stock without a broker.

    However, that worst brokers do this in a perfectly legal way, by causing desire and weaknesses to their clients’.

    How do they do that?

    Here are three main practices that bad stockbrokers practice. They claim to their clients that aiming for stability rather than growth. Wrong!

    Usually, they force clients to obtain an income from two different sources, typically in an illicit way. Also, some of them are emphasizing low-risk, low-return, high-fee structured products in client accounts.

    That’s why many new investors ask how to buy stock without a broker.

    Because of the lack of confidence in brokers, many millennials don’t have the startup cash to fund an IRA or a brokerage account. That typically requires either automatic monthly payments or a minimum investment of around $1,000-2,500, plus commission fees of around $4-7 for every trade.

    For those people who want to go down this path to business ownership, one option can be to check out direct investment plans.

    But it is with varying degrees of success. Of course, there is no requirement that you have to work with a broker to invest in stocks or particularly equity funds.

    Buying stock without a broker offers some advantages and disadvantages.

    You will need to measure them based on your personal situation. But our goal is to provide you a good handle on how to invest without a broker.

    But it’s up to you to make a decision about whether such an approach is appropriate for you. You have to know your unique circumstances and preferences. Because there is no unique solution for everyone.

    Let’s say, you had a broker but you noticed that your broker sometimes uses unfamiliar words and phrases to describe investment concepts. Some of this stockbroker jargon is simply a shorthand that brokers use amongst themselves. They use them to refer to familiar situations without having to go into any detail on the underlying concept.

    Your head is going to explode hearing every time some strange words that cause suspicions.

    But investing can be simpler if you buy stock without a broker. Just by investing in shares through a company’s direct stock purchase plan.

    The first and easiest way to buy stocks without a broker

    It is when companies, often blue chips, fund a special type of program. It is called a DSPP or Direct Stock Purchase Plan.

    The main goal of these plans originally was designed as a way for businesses to let smaller investors buy ownership directly from the company. In the beginning, they were working through a transfer agent or plan administrator. They still do the same. Most plans allow investors to buy stock without a broker if they agree to either have an amount taken out of their checking or savings account every month for six months. Often $50 is the acceptable minimum. The other way is to make a one-time purchase, which will cost you $250 or $500.

    These plans are surely not as comfortable as getting a broker. You can’t just buy and sell a variety of company stocks at any time, for instance. Plus, you won’t have a diverse portfolio if you only own stock from a few companies. Moreover, with some plans, you won’t even escape fees. So, you have to be careful about what you sign up for.

    This means trades without commission

    But we have to say, direct stock plans are a good way to experiment with the stock market without putting too much money into the game.

    Ordinarily, the plan administrators use your cash to buy shares of the company. It can be on the open market or freshly issued from the business itself, on predetermined dates. The average cost of the purchases is weighed out.

    Also, they can use some other methodology to equalize the cost among investors. And the direct stock purchase plan statement arrives quarterly. All with a listing of the number of shares you own and dividends you receive.

    Some direct stock purchase plans trades without commission. Others charge small fees. Usually $1 or $2 plus a few cents per share, for each purchase. A larger fee, about $15 and a few cents more per share, for a sale. This is a lot lower than what you have to pay at a full-service broker.

    Buy stock without a broker by taking advantage of the dividend reinvestment program

    In this way, you can add additional shares to your holdings.

    This means to enroll in a stock’s dividend reinvestment program or DRIP. DRIPs provide you to take cash dividends, paid out by the company you partially own. And you may plow them back into buying more shares, charging either nominal fees or nothing at all. It depends upon the individual plan.

    Have this on your mind. For a typical stock, that’s a lot of transactions over 25 or 50 years on which you aren’t paying commissions. The typical stock may pay out a dividend four times per year. So, count! DRIPs usually come with cash investment options that resemble direct stock purchase plans.

    This opportunity means you can regularly have money withdrawn from your account, or send in one-time payments whenever you like.

    A lot of long-term investors have become skilled at building wealth through these types of accounts. Buying stock without a broker for years, even decades is a very nice way. You must be heard stories about some housekeeper who left behind $5 million opulence.

    They did it just on the way we said above.

    You can buy stock without a broker by obtaining a single share through a specialized gifting service

    Unfortunately, the financial industry’s decision is to move away from paper stock certificates.  And this has become a bit shaky.

    But, up until recently, you could use companies that allowed you to buy a single share of stock to get your name on a corporate shareholder list.

    Hundreds of companies offer these plans, but each has its own rules for eligibility. It’s normal to be careful about investing in stocks. But some estimates that the average millennial would lose about $3.3 million in retirement savings by avoiding investing completely. Direct stock plans are an easy way to learn the basics and establish a portfolio.

    All without spending money, time, and nerves on brokers. Anyway, buying a stock without a broker may be a clever move for investors.

    Learn how to trade in the financial academy.

  • The 5 best blue-chip stocks in 2019

    The 5 best blue-chip stocks in 2019

    2 min read

    Blue-Chip Stocks - Investing in them can be a profitable decision 2

    This article is about picking good stocks by using microeconomics. This means that you look at the stocks of individual companies. Traders Paradise explains how to evaluate a company’s products, services, and other factors so that you can determine whether a company is strong and healthy.

    And finally, how to pick 5 best blue-chip stocks.

    We want to drive you toward those segments of the stock market that show solid promise for the coming years. That would make your stock portfolio thrive. Putting money into solid companies in thriving industries has been the hallmark of superior stock investing throughout history. It’s no different now.  Everything is the same.

    Where do you turn to find out about a company’s financial health? When you find the information, you’ll discover how to make sense of that data as well.

    We compare buying stock to picking dog. If you look at a group of dogs to choose which ones to buy, you want to make sure that you pick the healthiest ones. With stocks, you also need to pick companies that are healthy.

    This article can help you do that. To find 5 best blue-chip stocks.

    The 5 best blue-chip stocks as ranked by expected total return.

    AT&T (T) is one of the 5 best blue-chip stocks

    They are among 5 best blue-chip stocks. AT&T is a global provider of communications and digital entertainment services with 34 years of consecutive increases. They are offering internet access, wireless cellular, and TV services. The company was founded in its current form as a spin-off in 1984. Today, it creates $173 billion in annual revenue, driving a market capitalization of $234 billion. When they reported second-quarter earnings in July 2018, and investors were disappointed. Revenue was down 3% in comparison with the same quarter last year. But the new moment is that earnings-per-share increased by 15%. The company boosted its customers by nearly 4 million. Primarily from prepaid customers in the United States.

    DirecTV Now (stylized as DIRECTV NOW, also known simply as DTV Now) is a subscription streaming television service owned by AT&T. As of July 2018, the service has 1.8 million subscribers.

    Also, WarnerMedia as part of AT&T has strong growth.

    The 5 best blue-chip stocks in 2019
    The revenue expanded from $7.3 billion to $7.8 billion year-over-year. All of its segments continue to grow subscriber revenue with special strength coming from HBO.

    The WarnerMedia is a significant growth catalyst for AT&T. Second quarter results last year showed that WarnerMedia is growing much more quickly than the rest of AT&T and thus,  the acquisition has a bullish development.

    AT&T’s competitive advantage is in its enormous participation in the United States and parts of Latin America. The company uses that scale to push wireless, TV, and internet services to millions of consumers in order to expand relationships that are existing. This diversification of AT&T’s legacy businesses and the content library of WarnerMedia is a core advantage AT&T possesses over its rivals.

    The dividend is a significant draw for investors as the yield is in excess of 6%. We expect the large yield will be safe for many years to come. Moreover, we are certain that it will continue to grow as well.
    AT&T looks attractive from a value and yield perspective.

    Owens & Minor (OMI) is among the 5 best blue-chip stocks

    Another 5 best blue-chip stocks are Owens & Minor,  a healthcare logistics company specializing in contracting packages of healthcare products for hospitals. The company produces $10 billion in annual revenue from more than 200,000 customers. Besides that, the stock has a current market capitalization of just over $1 billion. They had some share price drops in 2017.
    The company reported second-quarter earnings in 2018 and results in disappointed investors once again. Revenue grew 8.5% year-over-year as the Byram Healthcare and Halyard Health acquisitions boosted the top line. Adjusted operating income rose 13% but adjusted earnings-per-share fell by 25%.
    The 5 best blue-chip stocks in 2019 1
    But the company is solving its issues in a variety of ways. That includes cost rationalization programs and acquisitions. By the way, the acute care setting provides an enormous market Owens & Minor can grow into in the coming years. This should enable the company to continue to grow revenue. Also, it should improve its margin profile over time.

    Owens & Minor’s competitive advantages include its established position with hospitals, as well as its recession-resistance.
    Owens & Minor sells necessities that are used in high volumes regardless of economic conditions.

    So, Traders Paradise sees this as a great advantage.

    The stock is yielding in excess of 6% today. We can see modest dividend growth moving forward, but the payout is reasonably well-covered by earnings. Thus, Owens & Minor should be attractive to income investors for this year.

    Owens & Minor as producing mid-20% total annual shareholder returns. It is consisting of the high current yield, high single-digit earnings-per-share growth and a double-digit tailwind from a rising valuation. We, therefore, rate Owens & Minor a strong buy for investors seeking growth, value or high current yield. So, they are 5 best blue-chip stocks for 2019.

    YOU WOULD LIKE TO READ The Benefits of Blue-Chip Stocks

    Cardinal Health (CAH)

    Cardinal Health services more than 24,000 pharmacies across the USA and nearly all of its hospitals. In addition, Cardinal is present in more than 60 countries. It employs 50,000 people. And it produces $140 billion in annual revenue. Cardinal Health has a market capitalization of $16 billion. And has 32 years of consecutive increases.

    The company’s results in 2018, were mixed. Revenue rose 7%, as did gross profit, but adjusted earnings-per-share fell 23% compared with the same period in 2017.


    Cardinal struggled with some negative margin impacts. They announced mail-order customer’s contract, investing in its IT platform. But margins in the company’s generic business continue to fall.

    Management is sitting for nothing. However, some of the initiatives it is undertaking to combat these troubles. The management is working on controlling costs as well as successfully integrating the Cordis business. The best side of everything, Cardinal remains committed to returning capital to shareholders over share repurchases and dividends. The dividend yield is 3.7% today. It makes Cardinal a strong choice for investors.

    Traders Paradise expects total annual shareholder returns in excess of 20% moving forward. We rate Cardinal as very favorable for long-term investors.

    YOU WOULD LIKE TO READ How stocks act in the period of the inflation

    Walgreens Boots Alliance (WBA)

    They have 42 years of consecutive increases.

    Walgreens is the largest retail pharmacy in the United States and Europe. The company is present in 25 countries around the globe, employing almost 400,000 people. They have a wide and deep customer base. The company is servicing more than 200,000 pharmacies, doctors and other healthcare centers annually, along with its more than 13,000 retail stores.
    The 5 best blue-chip stocks in 2019 3
    The company reported third-quarter earnings last year and results were strong. Revenue rose 14% and earnings-per-share increased by 15%. But, operating income rose just 5.5%. Walgreens announced a new $10 billion share repurchase program and boosted its dividend by 10%.

    The company is already in a dominant position in the United States and Europe, and the Rite Aid acquisition should serve to support that position. Walgreens’ business continues to grow in the developed world. So, Traders Paradise takes a stance, it should hold up well during economic downturns.

    The dividend was raised last year, and the yield is now 2.6%.

    The payout currently makes up less than one-third of total earnings. Traders Paradise expects continued growth in the dividend for many years to come. Indeed, Walgreens has at least 50 years of consecutive dividend increases.

    We forecast very strong total shareholder returns for Walgreens in the coming years to 20% annually. This stock is highly undervalued as well as high single-digit earnings-per-share growth. We rate Walgreens a buy for its combination of growth, value, current yield, and dividend growth. Yes, they are one of the 5 best blue-chip stocks.

    Altria Group (MO)

    Altria Group has long been a source of high rates of dividends for shareholders. It has boosted its payout for 48 succeeding years.

    The share price has fallen significantly in 2018 because of the company’s exposure to cigarettes. It caused some angst among investors. However, new products, such as its heated tobacco and E-Vapor products are driving new growth.

    The company’s earnings for the first half of 2018 grew by 24%. Yes, revenues were down slightly. Volume declines in the core cigarette segment continue to be an issue but Altria is busy diversifying away in an attempt to mitigate the potential damage.

    The worst year was 2017 with 9.4% of shareholders returns. But, the share price has continued to rise and today stands at 5.5%. Considering the yield has been increased for nearly 50 successive years and that the dividend is covered well by earnings, Traders Paradise sees the dividend as a primary source of total returns moving forward.
    Altria’s competitive advantage is in its Marlboro brand cigarettes. Marlboro is near the top of global cigarette sales by brand.

    Also, Altria is innovative each year.

    The best example is its heated tobacco products.
    We have to say, the cigarette volume is declining over time. More and more. So, Altria will need to continue to adapt to a market.

    The IQOS and MarkTen products are producing strong growth but they are just a small fraction of total revenue. Altria’s story is still about a cigarette/tobacco.

    Traders Paradise is forecasting those mid-teens investors have the unique chance for earnings-per-share growth. And for the mid-single digit dividend yield. We rate Altria’s blue-chip stock worth to buy. They are definitely among the 5 best blue-chip stocks.

    The bottom line

    The blue chips have the highest value in the poker game. But investing should be far removed from gambling. So, we can say that the term “blue chip” has stuck for a select group of stocks.

    Why?

    Blue-chip stocks are established, safe, dividend payers. They are often market leaders and tend to have a long history of paying rising dividends. Blue chip stocks tend to remain profitable even during recessions. Think about that!

    Risk Disclosure (read carefully!)