Category: Money

One of the common mistakes that investors make when it comes to the stock market is selling their favorite stock too soon. Based on studies, it shows that investors more likely sell stocks when it has profits and less likely to sell a stock when they got it at a loss.

Even if it might seem counterintuitive, it falls in line with the studies on how investors in the stock market make decisions. People are more likely to take small known profits instead of selling at a loss that confirms the mistake of the investor and closes the door on possible rebound.

There are some good reasons to sell at profit, but there is seldom a good reason for you to hold on to confirmed losing stock. A lot of investors have strong fear of turning paper loss to real loss. If you are wondering when to sell your favorite stock, others would counsel not to sell it. There are also some who will caution you that selling must be a deliberate process like buying.

Below are some of the things to consider when planning to sell your favorite stock:

• Stock Hits the Target Price

Lots of investors set a floor on the price of the stock. So, if it falls below a particular level, then sell. You may also set your preferred upper limit that triggers your sale.

• Fundamentals Start Failing

If the fundamentals of the company including cash flow, sales, and debt start showing signs of stress, it means that something has changed and it will affect the price of the stock negatively. Never wait for the market to panic on the decline in revenues or another crucial fundamental. You must be ready to unload the stock while you have a healthy profit.

• Eliminated or Cut Dividends

When businesses begin eliminating or cutting dividends, it’s time to consider selling the stock. The dividend cut of the company is serious and it shows financial problems that investors must pay attention to.

• Be Aware of Excessive Trading

While you often want to maximize your investment, never eat into your profits through running up a huge bill at your stockbroker in the commissions through frequent trading. Some smart trades will beat a mediocre one any day.

• Selling Strategies

Some selling strategies include thoughtful consideration of the events that are moving against your stock, which can cause the need to act.

If your stock becomes the focus of the media and gets attention, it might be time for you to look at taking profits. These attract inexperienced investors who bid up the prices to have the market collapse once hype dies. If you will not be careful, you may watch the price fall down easily right past your profits.

Make sure to look at some stocks that can give you a better opportunity with lesser risks than your holding. Just because you have good stock with nice profits, it does not mean you must not stop looking for better deals.

 

The trade war between China and US is an ongoing economic conflict. In 2018, US President Donald Trump started setting tariffs and some trade barriers on China with a goal to force it to make some changes to what US says unfair trade practices. Among such trade practices as well as their effects include the growing trade deficit, forced transfer of the American technology to China, and theft of intellectual property.

Since 1980s, Trump advocated tariffs to reduce US trade deficit as well as promote domestic manufacturing, which states that the country was being torn down by the trading partners. It results to imposing tariffs that became a huge plank of his campaign as a president. Even if other politicians and economists argue that the persistent trade deficit of US is problematic, a lot of economists argue that it isn’t a problem and some advocate tariffs as solution that cites historical evidence, which escalate tariff conflicts that result in no winners.

In the US, the trade war brought struggles for manufacturers and farmers and high prices for the consumers. In some countries, it has caused economic damage even if other countries have benefited from increased manufacturing just to fill every gap. It also led to the instability of the stock market. The governments of some countries like US and China have taken some steps in addressing the damage. The trade war was criticized globally. In the US, agricultural organizations and businesses have been critical. But, most farmers continue supporting Trump. In terms of the US politicians, the response is mixed.

What’s the Latest about the Trade Tensions in China?

In China, there’s a perception that US tries to control its rise. Still, the negotiations are ongoing. However, it is getting tougher as time passed. The 2 sides remain far apart on the issues like how to roll back the tariffs and enforce deals. The uncertainties are hurting businesses and weighing on the economy worldwide.

The tariffs policy of US President Trump aims to encourage the consumers to purchase American products through making the imported goods costlier. The US imposed the tariffs on more than $360 billion of Chinese goods. China has retaliated with the tariffs on more than $110 billion of the US products.

Washington delivered 3 rounds of tariffs in previous year and the fourth one was in September. The latest targeted Chinese imports from musical instruments to meat with a 15 percent duty. Beijing hits back with the tariffs that range from 5 percent to 25 percent on the US goods. In the latest tariff, it includes a 5 percent levy on the US crude oil, which is the first time fuel was targeted in the trade war.

Both sides have threatened that they will take more action with the new hikes and tariffs to the existing duties. The US plans to raise the existing 25 percent tariff on other Chinese products to 30 percent. Washington plans to deliver a wave of the new tariffs on the Chinese goods, which range from telephones to footwear.

If it happens, all of the Chinese goods that will be imported to the US are effectively subject to tariffs. Also, China plans to hit another 3000 American products with the tariffs before the year ends.

Fake it til you make it is the advice that most people tossed around. It sounds harmless but you can’t use it in your career always.

There are only situations where it is applicable and there are times that you should not fake it til you make it.

Fake It Til You Make It When It is a Matter of Confidence

In each professional role you are in, you will be tasked with the responsibilities that would push out of your comfort zone. For instance, you are asked to give training presentations to new hires, to speak up in front of the panel executives when you have ideas to lead weekly meetings with your employees.

While you might well know the ways to do such things in theory, you might not feel confident doing them. You might be familiar with the materials for presentations, for example, but do not love the idea of speaking in front of people.

Such are situations in which you have permission to fake it until you make it. You have the knowledge you need, so feigning a bit courage will not do you any harm. Having a brave face won’t just help you get through it, this will provide you genuine confidence the next time you are in this situation.

Do Not Fake It Until You Make It When It is a Matter of Knowledge

You will be given responsibilities that you do not know the ways to handle. In some situations in which you do not know how to do something, in terms of basic knowledge of a responsibility or task, feigning expertise will not help you. As a matter of fact, it will hurt you.

Having a confident face while you are doing an unfamiliar task will not give you the ability to complete the task. Somebody will catch the fact that you do not know what you are doing and call you out about it. You’ll just waste everybody’s time because of starting from scratch.

If your employees, co-workers find out that you are doing something wrong and pretending that you are knowledgeable how to do it, they will be less likely to trust you in the long run that would limit your chances to lead and advance in the team.

Mistake You Should be Aware of

Faking it until you make it works only once you have determined something that’s holding you back within yourself. Behaving like the one you want to be revolves around changing the way you think and you feel. If your motive is to prove your worth to some people, your efforts will not be successful.

Ways to Fake It the Right Way

Acting as if does not mean being inauthentic or phony. It is about changing the behavior first and trusting the feelings will follow. If motivation is in proper place, faking everything until you make it may make your goals a reality. Just ensure that you are interested in changing yourself on the inside and not just trying to change some people’s perceptions about you.

The key to reducing your spending is cutting back a bit in each area. Begin with making your life simple. Others fool themselves by not thinking about the total yearly costs of the things they spend their hard-earned money. Spending a hundred dollars for your cellphone service might not much in a monthly basis, but it is huge once you calculate it in a year.

If you want to spend less money, you have to consider the following tips:

Pay Using Cash Only

Retailers are aware of the statistics that prove that you’ll spend at least thirty percent more if you’re in a store with a debit card, checkbook or a credit card than you would with cash. Customers who carry cash is the last thing they like to see coming because they know how non-impulsive and cautious cash buyers are.

Stop Any Unnecessary Shopping

Window shopping, surfing online stores, and strolling through the mall without anything particular in mind can be a dangerous thing to do. It doesn’t mean that you must not buy anything. Your spending must be a planned act, buying services and goods you need, not impulsive spending.

Keep a Weekly and Daily Spending Record

If you see where your cash goes, you will surely regret it. Having a record for the money you have spent makes you think of your spending habits. This will give you proof of progress and challenges. In addition to that, keeping a weekly and daily spending record is the first step to establishing your budget monthly.

Keep your own spending record. Write down everything where your money goes. Every time you spend cash, use your credit card or debit card, take note of it in your spending record. Know your total spending and make your budget monthly based on what you have spent in a month.

Go to a Grocery Store with a List

Grocery shopping lists are your game plan. The industry of food spends billions just to weaken one’s resistance to spend a lot of money with compelling and packaging displays. Make your list based on the layout of your grocery store. Only purchase the items you need.

Try to Be Flexible with the Brands

Staying loyal to a particular brand will cost you lots of money in the end. If you are willing to go with what is on sale, the brand of the store or brand where you have a coupon, you will be able to save more money. Imagine how much you can save from considering a cheaper brand with the same quality as the expensive item.

Pay Bills Online

Paying bills online through an independent bill paying website or bank will save you lots of money and time. You will not need to pay postage and you will have an electronic record of banking activities.

Use Coupons

Consider using coupons for the items you would purchase if you did not have the coupon. Purchase the smallest qualifying size when you’re using a coupon. If you’re serious with slashing your grocery bills, always look for some great deals.

 

To purchase or not to purchase cryptocurrency – this is probably the number one question running through the mind of many investors right now. Many people tend to tiptoe around the thought investing in cryptocurrencies. But, with the uncertainties that surround them as far as legality and regulations are concerned, it is only understandable for them to be cautious.

Aside from putting your money in a loose space combined with the possible risks of losing your hard earned money if you become a prey of a ponzi scheme, there are three reasons to not purchase cryptocurrency.

Bitcoin is Tremendously Volatile

Through its history that has spanned for almost a decade, bitcoin has become susceptible to alarming crashes. For instance, back in 2013, the currency went as high up as more than $1,100 only to plummet to $700 after several months. It then bottomed out to around $200 during early 2015. Of course, there is simply no reason for it not to happen again.

Whilst investors may feel tempted by $2,000 bitcoin, they should be ready to kick themselves if ever it goes back down at $2,000 or much lower after a few months. It goes double for the rest of the alt-currencies, or those digital currencies people sometimes purchase as an alternative bitcoin investment.

Core Users of Bitcoin are Sadly Fringe Figures and Criminals

For many years, several stores have accepted bitcoin as payment together with credit cards and cash. But, in spite of the promises of some believers of bitcoin being a cash replacement one day, there is still no evidence that it will happen any time soon.

The truth is that bitcoin is rather slow as compared to debit or visa cards, not to mention the rising transaction fees. These days, you can pay the fee then wait for 10 minutes before the bitcoin transaction clears, or you can just swipe your credit card for instant payment and a cash reward.

Due to these limitations, the core use of bitcoin remains what it has been for the longest time – paying for extortion fees online or worse, for drugs.

Meanwhile, ordinary consumers don’t use this as a method of payment. It doesn’t mean that it is not a valuable investment. It’s just that in the actual world, it has lesser use than gold itself.

Bitcoin Exclusively Exists on Computers

It may sound a bit obvious but as a monetary form, bitcoin might still be the most vague stuff history has ever seen. Even securities or paper money can be presented to a company or central bank with the hopes that someone is going to redeem them. This might not be possible with bitcoin. Cryptocurrency is merely a piece of code online and you cannot ask any company or country to honor it.

Cryptocurrency may seem like an enticing investment but with all the uncertainties surrounding it, there is simple no reason for you to spend your money on it. When it comes to investments, it is always stick with the tested and proven to avoid disappointments and regrets in the end.

 

With the continuous increase of gas prices, learning how to maximize gas mileage has become a crucial necessity. Through stretching a task of gas a bit further, you will be able to lower the number of times you fill up your vehicle per month. This then lets you save your budget, especially if you have a non-efficient car.

However, no matter what type of vehicle you drive, having some extra money each month is always a good thing. Cutting back on your gas expenses is also the perfect way to fatten up your bank account.

Below are some basic tips on how to maximize gas mileage for you to save a few bucks every chance you get:

Inflate Your Tires Properly

You can have your tires inflated if they look low. However, even if they are just a bit low and almost unnoticeable to the eye, inflating them can lower your mileage. Under-inflated tires only make your engine use up more gas for moving the car.

See to it that your tires have been inflated according to the pressure stated in the owner’s manual to achieve the perfect balance between traction and gas mileage. It translates to more savings since being under-inflated by 10 PSI for each tire easily costs you 5 MPG or even more.

Cut Down on Excess Weight

You will be surprised to know the weight of all the junk you’ve got stored and discarded in the trunk of your car. If your vehicle got front-wheel drive, having additional weight on the rear axle only means that the front wheels don’t get a good grip as expected of them. This can reduce your mileage. Any extra weight also means that your car’s engine need to work a bit harder just to move it, and again, this can reduce gas mileage. If there are lots of weights in your car, it is best to lighten it up for you to get an additional one to two miles more per gallon.

Stick with the Suggested Motor Oil

Never assume that you can just use any kind of motor oil for your vehicle. Remember that its engine has been specifically designed to work at its best with a particular type of motor oil. If the oil you are using is heavier than recommended, it will only create excessive friction, causing your engine to burn more fuel and work much harder. Check the owner’s manual to know the recommended motor oil for your car and stick to it.

Replace Spark Plugs and Air Filter

Replacing the spark plugs and air filter during routine checkup will not just make your car last much longer as this helps your engine efficiently burn gas. For majority of cars, it is simple task that will just cost you less than $50 if you prefer to go for the DIY route.

Learning how to maximize gas mileage can go a long way in helping you enjoy great savings. This also helps your car run better while increasing its overall life span.

 

Various sources have numerous recommendations for buying stocks, with the most prevalent ones coming from stockbrokers, analysts, investment managers, and investment newsletters. But, there is very limited advice on when to sell your stock. If you need a quick guide on the best time for selling your stock, here are a few tips you can keep in mind.

Deterioration in Fundamentals

Together with tracking the stock price of a firm after a price target is established, it is important to monitor how the underlying business performs. One good reason for selling is once you notice a decline in business fundamentals. In a perfect word, the investor will realize deterioration in profit margins, sales, cash flow or other primary operating fundamentals prior to the decline of the stock price. Analysts who have more experience may read deeper into financial statements, including filing footnotes other investors might overlook.

Fraud is among the more serious flaws in fundamentals. Investors who managed to spot financial fraud early on from the likes of Tyco, Enron, and WorldCom saved significant sums as these firms’ share prices went downhill.

Your Price Target is Hit

During the initial purchase of a stock, more astute investors often establish their price target or they have a range as to when they will consider selling their stock. Every purchase of stock must include the analysis of the stock’s worth, with the current price at substantial discount to the estimated value. For example, it would be worthy goal to sell out of the stock once its price is doubled and it is an implication that the investor assumes that it has been undervalued by 50 percent.

Even seasoned investors might find it hard to reach one price target. A range is much more realistic instead just like option to sell the position off while it rises to help lock in the gains.

A Better Opportunity Arrives

Opportunity cost is one advantage that you can obtain through going with a good alternative. Prior to owning any stock, you need to compare this with potential gains you can obtain when you own another stock. When the alternative is much better, it will make sense to sell the existing position and purchase the other.

It is can be very hard to accurately identify  opportunity cost but it can include putting an investment in a  competitor when its growth prospects is equally compelling and trades at much lower valuation.

After a Merger

In general, the average takeover premium or the price for buying out a company ranges from 20% to 40%. If luck is with the investor enough for owning a stock that gets acquired for a substantial premium, selling it would be the most ideal course of action. Choosing to continue to own the stick even following a merger could have some merits, like when the combined companies’ competitive position has significantly improved.

But, mergers have somewhat lousy success track records. In addition, the deal may take several months before it gets completed. Thus, from the perspective of opportunity cost, it makes sense to look for an alternative opportunity for investment with a better upside potential.