A Trader’s Self-Evaluation Checklist
Brett N. Steenbarger, Ph.D.
What is the quality of your self-talk while trading? Is it angry and frustrated; negative and defeated? How much of your self-talk is market strategy focused, and how much is self-focused? Is your self-talk constructive, and would you want others to be talking with you that way while you’re trading?
What work do you do on yourself and your trading while the market is closed? Do you actively identify what you’re doing right and wrong in your trading each day—with specific steps to address both—or does your trading business lack quality control? Markets are ever changing; how are you changing with them?
How would your trading profit/loss profile change if you eliminated a few days where you lacked proper risk control? Do you have and strictly follow risk management parameters?
Does the size of your positions reflect the opportunity you see in the market, or do you fail to capitalize on opportunity or try to create opportunities when they’re not there?
Are trading losses often followed by further trading losses? Do you end up losing money in “revenge trading” just to regain money lost? Do you finish trading prematurely when you’re up money, failing to exploit a good day?
Do you cut winning trades short because, deep inside, you don’t think you’ll be able to make large profits? Do you become stubborn in positions, turning small losers into large ones?
Is trading making you happy, proud, fulfilled, and content, or does it more often leave you feeling unhappy, guilty, frustrated, and dissatisfied? Are you having fun trading even when it’s hard work?
Are you making trades because the market is giving you opportunity, or are you placing trades to fulfill needs—for excitement, self-esteem, recognition, etc.—that are not being met in the rest of your life?
Are you seeking trading success as a part-time trader? Would you be seeking success as a surgeon, professional basketball player, or musician by pursuing your work part-time?
Can you identify the specific edges you possess over the many other motivated, interested traders that fail to achieve success in the markets? Do you really have an edge, and—if so—what are you doing to maintain it?
Brett N. Steenbarger, Ph.D. is Director of Trader Development for Kingstree Trading, LLC in Chicago and Clinical Associate Professor of Psychiatry and Behavioral Sciences at SUNY Upstate Medical University in Syracuse, NY. He is also an active trader and writes occasional feature articles on market psychology for a variety of publications. The author of The Psychology of Trading (Wiley; January, 2003), Dr. Steenbarger has published over 50 peer-reviewed articles and book chapters on short-term approaches to behavioral change. His new, co-edited book The Art and Science of Brief Therapy is a core curricular text in psychiatry training programs. Many of Dr. Steenbarger’s articles and trading strategies are archived on his website, www.brettsteenbarger.com
Friday, May 12, 2006
Thursday, May 11, 2006
JSDA - Jones Soda Co.
Man oh man! Sometimes you know the feeling. I should have bought this one. I can remember doing stock screens several years ago looking that this one JSDA. I also have to admit I am a big fan of the not only the niche drinks, the designs, but I love the pictures on every bottle and can! It's just a cool, great idea, and I really sort of became a fan of Jones Soda! Not to mention that they just taste flat out the best!
But, moving on into the investing world. Let's take a close look at this one. Some are saying it's to high, others are saying it's a strong buy!
JSDA did break out of the handle with a nice long volume bar on 4/28. It then traveled sideways with some uncertainties through earnings. Today signifies AMAZING strenght in the breakout and I predict JSDA to keep a VERY VERY strong uptrend in order. If any sort of good news gets released we blow past $15 in no time. Personally I would say it's a strong buy even at 10.22... I AIN'T SCARED! But like always do your own research on this one, and let us know what what you think or decide!
Another note is that JSDA is expensive. Companies that have the potential to grow exponentially are always expensive. For every one of these stocks that end up justifying the most bullish predictions, there are 4 or 5 that completely disappoint the bulls. But, speculators will pay up for the chance at a home run. Last time I looked, JSDA didn't do any bottling for themselves; they contract it out. Likewise the frozen supermarket treats. That means there are virtually NO LIMITS to JSDA as it ramps up. They have a powerful brand and image which they are leveraging in all kinds of creative ways. They have lots of cash. No debt. And most of all the people at the top of the corporation seem to really be having a GOOD TIME!!!! That is priceless.
Will JSDA defy the odds and hit a home run? Will it be the one out of five?
So long as Jsda grows revenues 20%+ and the beverage industry is considered sexy and ripe for consolidation with examples of Snapple and Sobe among others in investors' minds and Hans going parabolic, JSDA -- with successful niches, great DTR accounts, a good balance sheet and exploitable patents, will likely remain hot.
But, moving on into the investing world. Let's take a close look at this one. Some are saying it's to high, others are saying it's a strong buy!
JSDA did break out of the handle with a nice long volume bar on 4/28. It then traveled sideways with some uncertainties through earnings. Today signifies AMAZING strenght in the breakout and I predict JSDA to keep a VERY VERY strong uptrend in order. If any sort of good news gets released we blow past $15 in no time. Personally I would say it's a strong buy even at 10.22... I AIN'T SCARED! But like always do your own research on this one, and let us know what what you think or decide!
Another note is that JSDA is expensive. Companies that have the potential to grow exponentially are always expensive. For every one of these stocks that end up justifying the most bullish predictions, there are 4 or 5 that completely disappoint the bulls. But, speculators will pay up for the chance at a home run. Last time I looked, JSDA didn't do any bottling for themselves; they contract it out. Likewise the frozen supermarket treats. That means there are virtually NO LIMITS to JSDA as it ramps up. They have a powerful brand and image which they are leveraging in all kinds of creative ways. They have lots of cash. No debt. And most of all the people at the top of the corporation seem to really be having a GOOD TIME!!!! That is priceless.
Will JSDA defy the odds and hit a home run? Will it be the one out of five?
So long as Jsda grows revenues 20%+ and the beverage industry is considered sexy and ripe for consolidation with examples of Snapple and Sobe among others in investors' minds and Hans going parabolic, JSDA -- with successful niches, great DTR accounts, a good balance sheet and exploitable patents, will likely remain hot.
Saturday, May 06, 2006
C - A - N - S - L - I - M
one with 10 million shares, with all other factors equal, the smaller one will usually be the bigger mover. Stocks that have a large percentage owned by top management are generally better prospects. Again referencing O'Neil's 38 year study, more than 95% of the companies had less than 25 million shares outstanding when they had their greatest period of earnings improvement and stock price performance.
Foolish stock splits can hurt a stock's performance. Watch out for companies that split their stock 2 or 3 times in just a year or two. The splitting creates a larger supply and may make a company's stock performance more lethargic, like many "big cap" companies. Large holders who thinking of selling are often inclined to sell their 100,000 share positions before a 3-for-1 split would have them looking to sell 300,000. Smart short sellers (an infinitesimal group) pick on stocks beginning to falter after enormous price runups and splits, realizing that the potential number of shares for sale (particularly by funds) has dramatically been increased.
C - A - N - S - L - I - M
L = Leader
People often buy stocks they're comfortable and familiar with, like an old pair of shoes. Usually these are draggy slow-pokes rather than leaping leaders. It is really important to look at how your stock is performing in relation to the overall market. The 500 best performing stocks from 1953 to 1990 averaged a relative price strength of 87 (scale of 1-99) just before they began their major advances in price. Avoid laggard stocks and look for genuine leaders.
C - A - N - S - L - I - M
I = Institutional Sponsorship
It takes big demand to move a stock significantly higher in price. Institutional buyers are the most powerful source. You don't need a large number of institutional owners, but should have at least a few. No institutional sponsorship in a stock is a bad sign because odds are that many institutional investors looked at the stock and passed it over. The things we are looking for with C-A-N-S-L-I-M are really signs that the bigger money (mutual funds, banks, insurance companies, pension funds, etc.) is coming into the stock. See that there is a better-than-average performance record by at least a few of the institutional owners.
Another good thing about some institutional sponsorship is that it provides buying support for the stock. Beware of stocks that become "overowned". By the time performance is so obvious that almost all institutions own it, it is probably too late. Pay attention to whether the number of institutional owners is increasing or decreasing.
C - A - N - S - L - I - M
M = Market Direction
You can be right on everything else, but if you are wrong about the direction of the broad market you are still likely to lose money. The best way to analyze the overall market is to follow and understand every day what the general averages are doing. The difficult to recognize, but meaningful changes in the behavior of the market averages at important turning points is the best indicator of the condition of the whole market.
What signs should you look for to detect a market top? On one of the days in the uptrend, the total volume for the market will increase over the preceding day's high volume, but the Dow's closing average will show stalling action, or substantially less upward movement, than on prior days.
The spread between the daily high and low of the market index will likely be a bit larger than on the earlier days. Normal market liquidation near the market peak will only occur on one or two days, which are part of the uptrend. The market comes under distribution while it is advancing! This is one of the reasons so few people know how to recognize distribution (selling).
Immediately following the first selling near the top, a vacuum exists where volume may subside and the market averages will sell off for four days or so. The second, and probably the last early chance to recognize a top reversal is when the market attempts it's first rally, which it will always do after a number of days down from it's highest point. If this first attempt to bounce back follows through on the third, fourth, or fifth rally day either on decreased volume from the day before, or if the market average recovers less than half of the initial drop from it's former peak to the low, the comeback is feeble and sputtering when it should be getting strong. Frequently the first attempt at a rally during the beginning of a downtrend will fail abruptly. Possibly after a one day resurgence, the second day will open up strong, only to sell off toward the end of the day and suddenly close down.
After an advance in stocks for a couple of years, the majority of the original price leaders will top, and you can be fairly sure the overall market is going to get into trouble. It is very important to pay attention to the way the leading stocks are acting.
C - A - N - S - L - I - M
Foolish stock splits can hurt a stock's performance. Watch out for companies that split their stock 2 or 3 times in just a year or two. The splitting creates a larger supply and may make a company's stock performance more lethargic, like many "big cap" companies. Large holders who thinking of selling are often inclined to sell their 100,000 share positions before a 3-for-1 split would have them looking to sell 300,000. Smart short sellers (an infinitesimal group) pick on stocks beginning to falter after enormous price runups and splits, realizing that the potential number of shares for sale (particularly by funds) has dramatically been increased.
C - A - N - S - L - I - M
L = Leader
People often buy stocks they're comfortable and familiar with, like an old pair of shoes. Usually these are draggy slow-pokes rather than leaping leaders. It is really important to look at how your stock is performing in relation to the overall market. The 500 best performing stocks from 1953 to 1990 averaged a relative price strength of 87 (scale of 1-99) just before they began their major advances in price. Avoid laggard stocks and look for genuine leaders.
C - A - N - S - L - I - M
I = Institutional Sponsorship
It takes big demand to move a stock significantly higher in price. Institutional buyers are the most powerful source. You don't need a large number of institutional owners, but should have at least a few. No institutional sponsorship in a stock is a bad sign because odds are that many institutional investors looked at the stock and passed it over. The things we are looking for with C-A-N-S-L-I-M are really signs that the bigger money (mutual funds, banks, insurance companies, pension funds, etc.) is coming into the stock. See that there is a better-than-average performance record by at least a few of the institutional owners.
Another good thing about some institutional sponsorship is that it provides buying support for the stock. Beware of stocks that become "overowned". By the time performance is so obvious that almost all institutions own it, it is probably too late. Pay attention to whether the number of institutional owners is increasing or decreasing.
C - A - N - S - L - I - M
M = Market Direction
You can be right on everything else, but if you are wrong about the direction of the broad market you are still likely to lose money. The best way to analyze the overall market is to follow and understand every day what the general averages are doing. The difficult to recognize, but meaningful changes in the behavior of the market averages at important turning points is the best indicator of the condition of the whole market.
What signs should you look for to detect a market top? On one of the days in the uptrend, the total volume for the market will increase over the preceding day's high volume, but the Dow's closing average will show stalling action, or substantially less upward movement, than on prior days.
The spread between the daily high and low of the market index will likely be a bit larger than on the earlier days. Normal market liquidation near the market peak will only occur on one or two days, which are part of the uptrend. The market comes under distribution while it is advancing! This is one of the reasons so few people know how to recognize distribution (selling).
Immediately following the first selling near the top, a vacuum exists where volume may subside and the market averages will sell off for four days or so. The second, and probably the last early chance to recognize a top reversal is when the market attempts it's first rally, which it will always do after a number of days down from it's highest point. If this first attempt to bounce back follows through on the third, fourth, or fifth rally day either on decreased volume from the day before, or if the market average recovers less than half of the initial drop from it's former peak to the low, the comeback is feeble and sputtering when it should be getting strong. Frequently the first attempt at a rally during the beginning of a downtrend will fail abruptly. Possibly after a one day resurgence, the second day will open up strong, only to sell off toward the end of the day and suddenly close down.
After an advance in stocks for a couple of years, the majority of the original price leaders will top, and you can be fairly sure the overall market is going to get into trouble. It is very important to pay attention to the way the leading stocks are acting.
C - A - N - S - L - I - M
Thursday, May 04, 2006
Did you know about your 401K?
Roth 401K accounts are going to be available as of 2006. The limits as to what you can deposit into a 401K are much higher than what you can put into an IRA; I think the limit this year was $4500 for an IRA and something like $12,500 for a 401K. The deposit limits for a Roth 401K for 2006 will be $15,000. So you would have to earn enough to max it out, but imagine putting $15,000 per year into an account that can grow tax free until retirement.
Even if you're just able to put in $10,000 a year into a 401K making just 5%, in twenty years you would have $330,660 to withdraw tax free. $200,000 of that is deposits, the remainder is earned interest, so you got $130,660 in returns tax free. That's at 5%. If you increase that to 10% the numbers jump to $572,750. And that is interest paid yearly. If you deposit $1,000 per month ($12,000 per year) and earn 10% interest compounded monthly the number grows to $759,368.84. Shocked Even at 5% compounded monthly with $1,000 monthly deposits and 5% return you would have $411,033.67 after 20 years.
A Roth IRA limited to $5,000 per year deposits in twenty years at 10% annually is worth $286,375. A Roth 401K with the larger contribution limits would be very cool. Cool
Even if you're just able to put in $10,000 a year into a 401K making just 5%, in twenty years you would have $330,660 to withdraw tax free. $200,000 of that is deposits, the remainder is earned interest, so you got $130,660 in returns tax free. That's at 5%. If you increase that to 10% the numbers jump to $572,750. And that is interest paid yearly. If you deposit $1,000 per month ($12,000 per year) and earn 10% interest compounded monthly the number grows to $759,368.84. Shocked Even at 5% compounded monthly with $1,000 monthly deposits and 5% return you would have $411,033.67 after 20 years.
A Roth IRA limited to $5,000 per year deposits in twenty years at 10% annually is worth $286,375. A Roth 401K with the larger contribution limits would be very cool. Cool
Warren Buffet has his own cartoon!
That's right Warren Buffet hasa new kids series while Buffet gets animated. This new kids' series, “The Secret Millionaire’s Club,” will feature the words, voice and likeness of Warren Buffett.
Billionaire Warren Buffett, the master mind of investments through ages and through the worldwide. He is staring in a DVD series as a cartoon version of himself, dispensing advice to children ages five to 12.
The series, will feature the words, voice and likeness animations of Buffett, who is known as the investment guru investor and runs the company Berkshire Hathaway.
Check out the full story here at msnbc
Billionaire Warren Buffett, the master mind of investments through ages and through the worldwide. He is staring in a DVD series as a cartoon version of himself, dispensing advice to children ages five to 12.
The series, will feature the words, voice and likeness animations of Buffett, who is known as the investment guru investor and runs the company Berkshire Hathaway.
Check out the full story here at msnbc
Wednesday, May 03, 2006
Mark-to-Market Election
If you are a full time trader, you can make a "Mark-to-Market"
election with the IRS, which changes your accounting method. There are
benefits and drawbacks which each individual needs to determine what's
best for them and their circumstances.
With mark-to-market, you're not limited to a $3,000 capital loss each
year, all your losses can be used. This can be helpful if you have
other sources of income it could offset. There are also expense
benefits. But all income is ordinary, and you give up the long term
15% gain benefit.
Another benefit is not having to mess with keeping track of wash
sales, however, I use software that takes care of all that, and
generates a sch. D, so it's completely painless (except for the cost
of the software that is). I just import all my trades, usually weekly,
sometimes more or less often, and I can see exactly where I stand for
the year. It generates graphs of all sorts, and detail and summary
reports to help you see what you're doing right or wrong. I don't have
a lot of expenses, or losses (knock on wood), so the mark-to-market
election isn't right for me.
Save More Taxes With a Mark-to-Market Election
As a trader, you can also make the special "mark-to-market" election.
If you do, two very important tax benefits come your way.
First, you don't have to worry about the wash sale rule, which defers
the tax loss when you buy the same stock within 30 days before or
after a loss sale. If you make lots of trades, this can happen all the
time. The disallowed wash sale loss gets added to the basis of the
shares that caused the problem. In other words, with the
mark-to-market election you won't have to spend as much time on
bookkeeping as you do researching and trading stocks.
You are also exempt from the $3,000 annual limit on net capital
losses. Why? Because as a mark-to-market trader, all your trading
gains and losses are considered "ordinary," just like garden-variety
business income and expenses. If you have a biblically awful year, you
can deduct your trading losses when you would otherwise be limited to
a mere $3,000 writeoff. The tax savings should ease your pain.
Naturally, there's a price for these goodies. On the last trading day
of the year, you as a mark-to-market trader must pretend to sell your
entire trading portfolio at market and book all the resulting gains
and losses on your return. You then pretend to buy everything back at
the same price. So your stocks start off the new year with basis equal
to market value and no unrealized gains or losses.
Also, you can't take advantage of the 15% long-term capital gains rate
for stocks in your trading portfolio. However, this really isn't a
problem because you shouldn't have anything but short-timers in your
trading stable anyway.
election with the IRS, which changes your accounting method. There are
benefits and drawbacks which each individual needs to determine what's
best for them and their circumstances.
With mark-to-market, you're not limited to a $3,000 capital loss each
year, all your losses can be used. This can be helpful if you have
other sources of income it could offset. There are also expense
benefits. But all income is ordinary, and you give up the long term
15% gain benefit.
Another benefit is not having to mess with keeping track of wash
sales, however, I use software that takes care of all that, and
generates a sch. D, so it's completely painless (except for the cost
of the software that is). I just import all my trades, usually weekly,
sometimes more or less often, and I can see exactly where I stand for
the year. It generates graphs of all sorts, and detail and summary
reports to help you see what you're doing right or wrong. I don't have
a lot of expenses, or losses (knock on wood), so the mark-to-market
election isn't right for me.
Save More Taxes With a Mark-to-Market Election
As a trader, you can also make the special "mark-to-market" election.
If you do, two very important tax benefits come your way.
First, you don't have to worry about the wash sale rule, which defers
the tax loss when you buy the same stock within 30 days before or
after a loss sale. If you make lots of trades, this can happen all the
time. The disallowed wash sale loss gets added to the basis of the
shares that caused the problem. In other words, with the
mark-to-market election you won't have to spend as much time on
bookkeeping as you do researching and trading stocks.
You are also exempt from the $3,000 annual limit on net capital
losses. Why? Because as a mark-to-market trader, all your trading
gains and losses are considered "ordinary," just like garden-variety
business income and expenses. If you have a biblically awful year, you
can deduct your trading losses when you would otherwise be limited to
a mere $3,000 writeoff. The tax savings should ease your pain.
Naturally, there's a price for these goodies. On the last trading day
of the year, you as a mark-to-market trader must pretend to sell your
entire trading portfolio at market and book all the resulting gains
and losses on your return. You then pretend to buy everything back at
the same price. So your stocks start off the new year with basis equal
to market value and no unrealized gains or losses.
Also, you can't take advantage of the 15% long-term capital gains rate
for stocks in your trading portfolio. However, this really isn't a
problem because you shouldn't have anything but short-timers in your
trading stable anyway.
Tuesday, May 02, 2006
Simple as supply and demand just like economics in high school
Supply and Demand just like economics in high school
It's really not rocket sciences. Just like what you learned in High School in that basic economics class, when stocks are in demand the price usually the key word being USUALLY should be going up. The way to check the supply and demand is by simply watching the daily trading volume of the stock. The stocks raising price should be followed or coincide with volume. This which in fact should show a good buying power move for the stock. The same should go with the other end, say if the stock is less in demand or when the price falls so come the volume of the daily trading volume. It's really something to be aware of, and check in for yourself.
Key thoughts when looking at economics in high school supply and demand of a stock:
- Beware of the daily volume of the stock. We suggest that you don't even touch a stock that has less then a daily average of 500,000 volume.
- Stocks that are really moving should show a volume increase of 100% or even more in some cases.
- When a insider buying or companies buying back their stock in the open market could be a green light that this stock is a winner.
- Watch the past 50 trading days. So if a stock is trading 1,000,000 on the average, and then it starts showing a volume increase and starts trading at 1,500,000 this is a good indication this could be a green light.
One key note to really make sure and check into is. When a stock with low volume, but the stock is still going up in price, this is a yellow if not a red flag to be looking into. This means the stock is moving probably on news strictly and not really supply and demand. So the usually the winning stocks are the ones with a strong demand and then have the price increasing to follow.
It's really not rocket sciences. Just like what you learned in High School in that basic economics class, when stocks are in demand the price usually the key word being USUALLY should be going up. The way to check the supply and demand is by simply watching the daily trading volume of the stock. The stocks raising price should be followed or coincide with volume. This which in fact should show a good buying power move for the stock. The same should go with the other end, say if the stock is less in demand or when the price falls so come the volume of the daily trading volume. It's really something to be aware of, and check in for yourself.
Key thoughts when looking at economics in high school supply and demand of a stock:
- Beware of the daily volume of the stock. We suggest that you don't even touch a stock that has less then a daily average of 500,000 volume.
- Stocks that are really moving should show a volume increase of 100% or even more in some cases.
- When a insider buying or companies buying back their stock in the open market could be a green light that this stock is a winner.
- Watch the past 50 trading days. So if a stock is trading 1,000,000 on the average, and then it starts showing a volume increase and starts trading at 1,500,000 this is a good indication this could be a green light.
One key note to really make sure and check into is. When a stock with low volume, but the stock is still going up in price, this is a yellow if not a red flag to be looking into. This means the stock is moving probably on news strictly and not really supply and demand. So the usually the winning stocks are the ones with a strong demand and then have the price increasing to follow.
Monday, May 01, 2006
The weekend in review
Mircosoft news
Well, the big news is Microsoft. That's right after falling not really off the charts so to speak, but for Microsoft. It sure did fall pretty hard and fast after it's quarter results. Some are saying it's a buy, it's low, and it's a big and yours stupid if you don't buy this one at the market. Which should be opening right around 24.20 or somewhere around there. Which is a very low price for MSFT, but others are saying wait a minute rememeber this one....Gateway Inc. (GTW)! Some are saying just be aware that believe or not even Microsoft could fall pretty low. Though, with the new Xbox or xbox 360 or whatever it's called. I don't see Microsoft falling to low, but who really knows. It's up to you and what you want to invest in!
Gold
Gold sector is still the hot. You can say it's as hot as gold or something like that! This sector is still one to be investing and has shot up like no other. Don't mark our word, but everyone elses....that's right it's still on up! Part of what's driving the prices is the strong global economy -- it's partly China and now also Japan, as well as continued growth in the U.S.
Gas prices
Gas prices are still going up as well. Though, that said, there is a one single question that everyone is still wanting answers.
If the gas prices keep going up, how is that oil companies, gas companies, and etc keep making money and going up as well!
Well, the big news is Microsoft. That's right after falling not really off the charts so to speak, but for Microsoft. It sure did fall pretty hard and fast after it's quarter results. Some are saying it's a buy, it's low, and it's a big and yours stupid if you don't buy this one at the market. Which should be opening right around 24.20 or somewhere around there. Which is a very low price for MSFT, but others are saying wait a minute rememeber this one....Gateway Inc. (GTW)! Some are saying just be aware that believe or not even Microsoft could fall pretty low. Though, with the new Xbox or xbox 360 or whatever it's called. I don't see Microsoft falling to low, but who really knows. It's up to you and what you want to invest in!
Gold
Gold sector is still the hot. You can say it's as hot as gold or something like that! This sector is still one to be investing and has shot up like no other. Don't mark our word, but everyone elses....that's right it's still on up! Part of what's driving the prices is the strong global economy -- it's partly China and now also Japan, as well as continued growth in the U.S.
Gas prices
Gas prices are still going up as well. Though, that said, there is a one single question that everyone is still wanting answers.
If the gas prices keep going up, how is that oil companies, gas companies, and etc keep making money and going up as well!
Saturday, April 29, 2006
How rich are you?
Here is something sort of humbling that we think is worth checking out. Check out today where you are global on the wealth or rich list. Check it out now at Global Rich list
Thursday, April 27, 2006
Winning stocks - have to be taking steps toward the next level!
Things to be looking for that winning stocks. One key factor that you should and can be looking for that winning stock is how or what are they doing to step up to the new or next level. Is the companies that your looking into are they taking there products to the next level, are they having new services that is taking them to the next level. Or is there managament just being stuck, or are they growing and taking it to the next level.
This idea of companies that are growing and taking there products, services, management to the next level is something really to watch! Some have researched and stated that a lot of success in stocks have this key factor in a company that turns out to be a winning stock. Meaning that this company is taking it to the next level. With this in mind, you have to keep the price in mind as well. So if a company is trying something new and trying to take the company to the next level. This might mean, a new price level as well. Meaning that the old theory of buy low and sell high might not always be the best approach. Some might be missing out on the stock's biggest success in the new stocks price highs.
Keys to be looking for in a stock:
- Management is a key success in company!
- winning stocks will mark a new price high, but will continue to climb because of the growth and taking it to the next level. Along with the volume hitting new highs.
- Also keep your ears and eyes out of companies taking the next level. Or starting new products that could be taking the company to a the next level.
- Though the new products have to be solid and worth taking the chance on taking them to the next level.
* interesting note to keep in mind...when investing. Stocks on the new high tend to go higher, and those on the new lows often continue to go lower. Though, most if not everyone invests their money at the lows. We have to ask why!?!?
This idea of companies that are growing and taking there products, services, management to the next level is something really to watch! Some have researched and stated that a lot of success in stocks have this key factor in a company that turns out to be a winning stock. Meaning that this company is taking it to the next level. With this in mind, you have to keep the price in mind as well. So if a company is trying something new and trying to take the company to the next level. This might mean, a new price level as well. Meaning that the old theory of buy low and sell high might not always be the best approach. Some might be missing out on the stock's biggest success in the new stocks price highs.
Keys to be looking for in a stock:
- Management is a key success in company!
- winning stocks will mark a new price high, but will continue to climb because of the growth and taking it to the next level. Along with the volume hitting new highs.
- Also keep your ears and eyes out of companies taking the next level. Or starting new products that could be taking the company to a the next level.
- Though the new products have to be solid and worth taking the chance on taking them to the next level.
* interesting note to keep in mind...when investing. Stocks on the new high tend to go higher, and those on the new lows often continue to go lower. Though, most if not everyone invests their money at the lows. We have to ask why!?!?
Wednesday, April 26, 2006
Current Earnings Growth
Current Earnings Growth
Well, looking for that winning stock, it's important to check out the current earnings growth. The stocks you screen to purchase, this might be the single most important factor in purchasing the right stock. Though, when looking at the current earning growth. It's important to know what your looking for such as...what to compare it to, what's the increase, and the percentage of increase in current quarterly earnings per share.
What you should be looking for:
- looking at current earning growth that is three quarters that are winning or ahead
- some of these stocks with good current earning growth could have high P/E
- do research and make sure that there is a positive history
- don't look for the homerun hit, but looking for solid current earning growth...though looking for good high percentage in earnings.
Well, looking for that winning stock, it's important to check out the current earnings growth. The stocks you screen to purchase, this might be the single most important factor in purchasing the right stock. Though, when looking at the current earning growth. It's important to know what your looking for such as...what to compare it to, what's the increase, and the percentage of increase in current quarterly earnings per share.
What you should be looking for:
- looking at current earning growth that is three quarters that are winning or ahead
- some of these stocks with good current earning growth could have high P/E
- do research and make sure that there is a positive history
- don't look for the homerun hit, but looking for solid current earning growth...though looking for good high percentage in earnings.
Annual Earnings Growth
Annual Earnings Growth
This is a good signal to really take note of. If the annual earning growth is strong, then that's a good signal that the stock will be good one. But, at times it's just not that simple. There are some key fundamentals to consider. Also, quarterly earnings are a hugh thing to watch out for, but some will say that a big factor in picking is to have an good positive looking annual earning growth of the last five years.
Things to really be looking for:
- EPS growth of at least 20% to 25%
- the last three years having a increase in annual earning growth
- ROE (Return On Equity) needs to be at least 15% or some might say 17% or higher
This is a good signal to really take note of. If the annual earning growth is strong, then that's a good signal that the stock will be good one. But, at times it's just not that simple. There are some key fundamentals to consider. Also, quarterly earnings are a hugh thing to watch out for, but some will say that a big factor in picking is to have an good positive looking annual earning growth of the last five years.
Things to really be looking for:
- EPS growth of at least 20% to 25%
- the last three years having a increase in annual earning growth
- ROE (Return On Equity) needs to be at least 15% or some might say 17% or higher
Sunday, April 23, 2006
We did our own research
Last week IBD listed ten stocks that they thought and listed under $10 to be watching for. Here was the list along with there closing price as of Friday 21st:
MED MEDIFAST INC 10.14 +3.36%
TGB TASEKO MINES LTD 3.49 +6.08%
ARTG ART TECH GROUP 3.55 -0.28%
RNWK REALNETWORKS INC 10.39 -2.35%
WEL BOOTS&COOTS/INT WELL 2.40 -0.59%
LPSN LIVEPERSON INC 7.40 -2.25%
EZM EUROZINC MINING CORP 2.16 +3.35%
GEMS GLENAYRE TECHS 5.72 +0.18%
BDCO BLUE DOLPHIN ENER 7.29 +1.96%
HOM HOME SOLUTIONS OF AM 8.91 -0.22
Our research was to see if we were to invest from the opening bell of Monday the 17th. Right after this list came out during the last weekend.
The Winners or ahead of the game would be as followed:
MED opened at 9.15 Monday morning. Got as low as 8.62 during Monday, had a extremely low volume day of 49,900 on Tuesday. But, it ends up closing on friday at 10.14, though reached as high as 10.31.
RNWK opened at 9.83 but got has low as 9.81 and ended up closing on 10.07 monday (17th). Got has high as 10.96 on Friday, but then closed at 10.39 on Friday.
HOM - 8.01 8.05 7.80 7.87 Opened at 8.01 on Monday morning, got has high was 9.12 on Friday, but then closed at 8.91 on friday.
GEMS - opend Monday morning at 5.47 the high was 5.78 closing on Friday at 5.72
BDCO opened at 7.07 got has high was 8.60 on Tuesday, but after that went down as low as 6.91 and then closing on Friday at 7.29
TGB opend on Monday at 3.01 reached as high as 3.78. Closing on Tuesday at 3.59 and wednesday closed at 3.58 then finally on Friday closed at 3.49.
WEL opend at 2.21 high for the week was 2.50...closing on Friday at 2.40
EZM opened at 2.14 went up as high as 2.42 on Tuesday, closed on Tuesday was a high for the week at 2.31. Though ended the week dropping some and finally closed on Friday at 2.16
LPSN opend at 7.75 the high being 7.84 on Tuesday, and finally dropped and closed at 7.40 on Friday. The thing that we didnot like about this stock is the volume is pretty low for our fundamental investing. The 5 day volume average is only 241,000. We personally like at least 500,000 or higher.
ARTG opening at 3.80. Reached a high for the week of 3.81 on Monday, and then got as low as 3.46 and closed at 3.55 on Friday.
So the Research shows that 8 out of the 10 were gains...not always big gainers, but it's the first week or so.
The biggest gain were + .95 MED, +0.90 HOM, + 0.56 RNWK, + 0.39 TGB, +0.25 GEMS, +0.22 BDCO, + 0.19 WEL, + 0.02 EZM,
The two loses were - 0.34 ARTG, -0.35 LPSN
We found it was interested to do our own research and see how good IBD does of picking, and what we see after a week, 8 out of 10 with two gains over 90 cents that's not bad at all!
MED MEDIFAST INC 10.14 +3.36%
TGB TASEKO MINES LTD 3.49 +6.08%
ARTG ART TECH GROUP 3.55 -0.28%
RNWK REALNETWORKS INC 10.39 -2.35%
WEL BOOTS&COOTS/INT WELL 2.40 -0.59%
LPSN LIVEPERSON INC 7.40 -2.25%
EZM EUROZINC MINING CORP 2.16 +3.35%
GEMS GLENAYRE TECHS 5.72 +0.18%
BDCO BLUE DOLPHIN ENER 7.29 +1.96%
HOM HOME SOLUTIONS OF AM 8.91 -0.22
Our research was to see if we were to invest from the opening bell of Monday the 17th. Right after this list came out during the last weekend.
The Winners or ahead of the game would be as followed:
MED opened at 9.15 Monday morning. Got as low as 8.62 during Monday, had a extremely low volume day of 49,900 on Tuesday. But, it ends up closing on friday at 10.14, though reached as high as 10.31.
RNWK opened at 9.83 but got has low as 9.81 and ended up closing on 10.07 monday (17th). Got has high as 10.96 on Friday, but then closed at 10.39 on Friday.
HOM - 8.01 8.05 7.80 7.87 Opened at 8.01 on Monday morning, got has high was 9.12 on Friday, but then closed at 8.91 on friday.
GEMS - opend Monday morning at 5.47 the high was 5.78 closing on Friday at 5.72
BDCO opened at 7.07 got has high was 8.60 on Tuesday, but after that went down as low as 6.91 and then closing on Friday at 7.29
TGB opend on Monday at 3.01 reached as high as 3.78. Closing on Tuesday at 3.59 and wednesday closed at 3.58 then finally on Friday closed at 3.49.
WEL opend at 2.21 high for the week was 2.50...closing on Friday at 2.40
EZM opened at 2.14 went up as high as 2.42 on Tuesday, closed on Tuesday was a high for the week at 2.31. Though ended the week dropping some and finally closed on Friday at 2.16
LPSN opend at 7.75 the high being 7.84 on Tuesday, and finally dropped and closed at 7.40 on Friday. The thing that we didnot like about this stock is the volume is pretty low for our fundamental investing. The 5 day volume average is only 241,000. We personally like at least 500,000 or higher.
ARTG opening at 3.80. Reached a high for the week of 3.81 on Monday, and then got as low as 3.46 and closed at 3.55 on Friday.
So the Research shows that 8 out of the 10 were gains...not always big gainers, but it's the first week or so.
The biggest gain were + .95 MED, +0.90 HOM, + 0.56 RNWK, + 0.39 TGB, +0.25 GEMS, +0.22 BDCO, + 0.19 WEL, + 0.02 EZM,
The two loses were - 0.34 ARTG, -0.35 LPSN
We found it was interested to do our own research and see how good IBD does of picking, and what we see after a week, 8 out of 10 with two gains over 90 cents that's not bad at all!
Summer saving for kids!
It's getting closer and closer. That's right it's almost here Summer time, and I keep hearing and seeing more and more student trying to get summer jobs. And it seems to becoming more and more for even the younger ones. Here are some simple tips to teach your kids early how to be responsible for money. Here are some simple tips.
1. Teachh them from early age while shopping with them for clothes, groceries, or even big ideas like cars and etc. Talk with them about comparing prices, quality, and even bulk prices when shopping. A great time is when shopping for school supplies, holidays, birthdays, or etc.
2. Take your kids to the bank with you. Whenever you can take them to withdrawal money from the ATM, or going to the bank to do transactions, and explain to you children of what your doing and how to do it. Share with them the interest rates of your saving accounts, where has your checking account usually don't have interest rates.
3. Talk with your kids about investments. Sharing information such as purchasing stocks with different companies of interest. Example, many young kids enjoy shopping for shoes, so why not explain with them about Nike the company, and how you can personally invest in this kind of company. Some experts say early the better to start explaing this such as elementary school age, but keep repeating and teaching through middle school to help better understand these ideas.
"Too many people have suffered losses -- by not diversifying, for example -- that could have been avoided with a little information and education," says Steve Hines, spokesman for the JumpStart Coalition for Personal Financial Literacy. "But, stocks generally outperform other forms of investment over longer periods of time, and since kids have time on their side, why not help them learn to make their money grow?"
4. Create a spending account, and provide your kids with a piggy bank.
Give your children an allowance and make sure they set aside a certain amount for savings. A piggy bank can help children watch their money grow. Let them keep a financial journal to record their financial activities.
5. Make them earn their money. Hard work pays off, the easy way out is never easy money. Teach them that you as parents had to and continue to have to work hard for the money that you earn, and that old saying "money doesn't grow on trees is really true. They can start by picking up their toys, taking out the garbage and raking the leaves.
6. Think about and teach them goals. Goal-setting can helps kids achieve their dreams. So whatever the goal is toys, car, or whatever, help them and teach them that it can be attained through hard work, proper budgeting, and saving up.
7. Show and teach the correct way to use credit cards. You ask what is the correct way to use a correct card. Well, our rule of using a credit card is you don't buy it unless you can pay it of right away. So your not buy and wait to see if we have enough money to pay it off at the end of the month. It's buy now knowing you will pay it off this month. Make sure if or when you give your kids a credit card, make sure to monitor the use of the credit card.
"A troubling trend in our society is giving credit cards too early and too easily," says Duvall, who suggests giving responsible teenagers a credit card toward the latter part of high school, along with a good heart-to-heart talk about credit.
"Know your kids individually, and don't be in a rush to help them spend," says Hines. "Don't get your kids a credit card and hope they'll learn something on their own. You wouldn't get them a car and hope they'll learn to drive it on their own, would you?"
8. Include kids in discussions on household budgeting and vacation planning.
Talk about necessities such as utilities and extras. Teach kids about the financial resources needed for the vacation such as tickets, transportation, lodging and entertainment.
9. Teach them about donating or tithing through your local church. We teach the 10-20-70. Which is tithe/donate/give 10%, save 20%, and spend 70% on monthly expensives. This is a great way to teach your children about tithing at a early age.
Hines believes volunteering is a way to "offset the consumer-driven environment by teaching kids that there is joy in something other than buying things for themselves.
"For some kids, this is a powerful lesson. Instead of just delayed gratification, it's gratification by spending on someone else. With donations, there are also opportunities to discuss how far a dollar can stretch and values."
10. This is the rule that your kids follow your guidance. You as a parent have to start leading by example, by showing them the right way to save, teaching them at an early age to develop a budgeting program. Start early on investing for the future. There are all kinds of great free resource for this kind of information all over the internet.
1. Teachh them from early age while shopping with them for clothes, groceries, or even big ideas like cars and etc. Talk with them about comparing prices, quality, and even bulk prices when shopping. A great time is when shopping for school supplies, holidays, birthdays, or etc.
2. Take your kids to the bank with you. Whenever you can take them to withdrawal money from the ATM, or going to the bank to do transactions, and explain to you children of what your doing and how to do it. Share with them the interest rates of your saving accounts, where has your checking account usually don't have interest rates.
3. Talk with your kids about investments. Sharing information such as purchasing stocks with different companies of interest. Example, many young kids enjoy shopping for shoes, so why not explain with them about Nike the company, and how you can personally invest in this kind of company. Some experts say early the better to start explaing this such as elementary school age, but keep repeating and teaching through middle school to help better understand these ideas.
"Too many people have suffered losses -- by not diversifying, for example -- that could have been avoided with a little information and education," says Steve Hines, spokesman for the JumpStart Coalition for Personal Financial Literacy. "But, stocks generally outperform other forms of investment over longer periods of time, and since kids have time on their side, why not help them learn to make their money grow?"
4. Create a spending account, and provide your kids with a piggy bank.
Give your children an allowance and make sure they set aside a certain amount for savings. A piggy bank can help children watch their money grow. Let them keep a financial journal to record their financial activities.
5. Make them earn their money. Hard work pays off, the easy way out is never easy money. Teach them that you as parents had to and continue to have to work hard for the money that you earn, and that old saying "money doesn't grow on trees is really true. They can start by picking up their toys, taking out the garbage and raking the leaves.
6. Think about and teach them goals. Goal-setting can helps kids achieve their dreams. So whatever the goal is toys, car, or whatever, help them and teach them that it can be attained through hard work, proper budgeting, and saving up.
7. Show and teach the correct way to use credit cards. You ask what is the correct way to use a correct card. Well, our rule of using a credit card is you don't buy it unless you can pay it of right away. So your not buy and wait to see if we have enough money to pay it off at the end of the month. It's buy now knowing you will pay it off this month. Make sure if or when you give your kids a credit card, make sure to monitor the use of the credit card.
"A troubling trend in our society is giving credit cards too early and too easily," says Duvall, who suggests giving responsible teenagers a credit card toward the latter part of high school, along with a good heart-to-heart talk about credit.
"Know your kids individually, and don't be in a rush to help them spend," says Hines. "Don't get your kids a credit card and hope they'll learn something on their own. You wouldn't get them a car and hope they'll learn to drive it on their own, would you?"
8. Include kids in discussions on household budgeting and vacation planning.
Talk about necessities such as utilities and extras. Teach kids about the financial resources needed for the vacation such as tickets, transportation, lodging and entertainment.
9. Teach them about donating or tithing through your local church. We teach the 10-20-70. Which is tithe/donate/give 10%, save 20%, and spend 70% on monthly expensives. This is a great way to teach your children about tithing at a early age.
Hines believes volunteering is a way to "offset the consumer-driven environment by teaching kids that there is joy in something other than buying things for themselves.
"For some kids, this is a powerful lesson. Instead of just delayed gratification, it's gratification by spending on someone else. With donations, there are also opportunities to discuss how far a dollar can stretch and values."
10. This is the rule that your kids follow your guidance. You as a parent have to start leading by example, by showing them the right way to save, teaching them at an early age to develop a budgeting program. Start early on investing for the future. There are all kinds of great free resource for this kind of information all over the internet.
Friday, April 21, 2006
Earnings, expired, and excitement!
Wow, this Third friday of April has beena busy day!
First to top of the earnings, no other then Google (GOOG) jumping up to a hugh gain, and of the biggest gains in about 6 months. That's right GOOG closed on Thursday evening at 415, and then opens the day after the earnings coming out. It opens at a high gain of 450! Google is still one of the top companies out to watch for and really do your homework and makes some money on this one. Just think if you would have put in $85 for this company back in August...how nice of return would that be today's 450!
Also, Ford (F) is doing a lot of moving today, but it's in the opposite direction as Google (goog). Ford states a lot of downgrades, jobloss, and so much more! Not looking real good for the Ford company!
Also, today is the expired...for all those calls, puts, and options. Which stocks did you put in for your stock options this month?
We can not forget to mention the excitement of all this crude oil information. What's going on, and where is this one going? All I can say I am glad that it's not winter, and start looking to purchase a hybrid. Interested to see what Crude Oil closes as today!
First to top of the earnings, no other then Google (GOOG) jumping up to a hugh gain, and of the biggest gains in about 6 months. That's right GOOG closed on Thursday evening at 415, and then opens the day after the earnings coming out. It opens at a high gain of 450! Google is still one of the top companies out to watch for and really do your homework and makes some money on this one. Just think if you would have put in $85 for this company back in August...how nice of return would that be today's 450!
Also, Ford (F) is doing a lot of moving today, but it's in the opposite direction as Google (goog). Ford states a lot of downgrades, jobloss, and so much more! Not looking real good for the Ford company!
Also, today is the expired...for all those calls, puts, and options. Which stocks did you put in for your stock options this month?
We can not forget to mention the excitement of all this crude oil information. What's going on, and where is this one going? All I can say I am glad that it's not winter, and start looking to purchase a hybrid. Interested to see what Crude Oil closes as today!
Dell is a Sell
Dell for the first time since it become a public stock back in 1996! But, now it's a sell. Everyone is saying to jump of the Dell! That's right we are seeing more and more dell sell ratings. So wait out and starting putting your options or get on the short bus on this one. Dell is a strong sell!
Wednesday, April 19, 2006
HOM...looks like it could be a winner
HOM...looks like it could be a winner. Looks like it is finally ready to break towards double digits...Could be the start of a monster run...
Home Solutions of America, Inc. offers recovery, restoration,
rebuilding/remodeling, and specialty interior services to commercial
and residential properties in the United States.
In the 4th quarter the company reported an EPS increase of 233% on a
revenue increase of 184%. Furthermore the company recently reported
contract awards worth up to $40MM to perform hurricane related building
activities. The company has a tremendous backlog of business but has
not issued earnings guidance due to uncertainty about allocation of
funding for projects in New Orleans.
Home Solutions of America, Inc. offers recovery, restoration,
rebuilding/remodeling, and specialty interior services to commercial
and residential properties in the United States.
In the 4th quarter the company reported an EPS increase of 233% on a
revenue increase of 184%. Furthermore the company recently reported
contract awards worth up to $40MM to perform hurricane related building
activities. The company has a tremendous backlog of business but has
not issued earnings guidance due to uncertainty about allocation of
funding for projects in New Orleans.
Friday, April 14, 2006
This sector is interesting to look at
Corning
In March, the venerable glass and ceramics outfit said it had developed a new glass composite that doesn't include heavy metals in the manufacturing process. By reducing environmental hazards associated with the glass, commonly used on liquid crystal display televisions, the new formula enables Corning (GLW) to gain an earth-friendly edge and reduces concerns over how the glass is disposed of.
They plan to adopt the technique over the next two to three years. The new method is "clearly a differentiator for them," says C.J. Muse, an analyst at Lehman Brothers (LEH) who rates the company overweight. As attention in the glass sector turns away from size capacity to how the glass is made, Muse writes in a recent report that the new composition "support[s] the company's market share position and premium pricing over the competition."
Capstone (CPST) produces microturbines that can be used in parallel with utility power and heat or as a backup to it. Capable of running on fuels such as kerosene and natural gas, Capstone aims for its turbines to produce very clean emissions while helping clients save on the electricity bill. Capstone's turbines spin on high-pressure emissions from a fuel cell, reducing the need to use additional fuel.
Medis (MDTL) produces portable alkaline fuel cells designed to power increasingly sophisticated and power-thirsty personal gadgets. The devices, scheduled for a limited retail release in the fourth quarter, provide sustained power without the need to use up excess electricity. Though they're disposable, the fuel cells don't contain heavy metals, unlike standard alkaline batteries. Despite these advantages, CEO Robert Lifton says the device was developed primarily with practicality, not ecology, in mind. "It's a product for people that happens to be environmentally O.K.," he says.
Quantum's products include high capacity hydrogen storage tanks that can be used in fuel-cell powered cars. These tanks can store enough hydrogen to power a fuel-cell car for about 300 miles. Brion Tanous, managing director of equity research at Merriman Curhan Ford & Co. -- which makes a market for Quantum (QTWW) -- says that's about the minimum distance electric cars will need to travel before consumers will buy them, and that makes Quantum an industry leader in a field that could take off. He rates the stock a buy despite predicting that losses will continue into at least 2007.
In March, the venerable glass and ceramics outfit said it had developed a new glass composite that doesn't include heavy metals in the manufacturing process. By reducing environmental hazards associated with the glass, commonly used on liquid crystal display televisions, the new formula enables Corning (GLW) to gain an earth-friendly edge and reduces concerns over how the glass is disposed of.
They plan to adopt the technique over the next two to three years. The new method is "clearly a differentiator for them," says C.J. Muse, an analyst at Lehman Brothers (LEH) who rates the company overweight. As attention in the glass sector turns away from size capacity to how the glass is made, Muse writes in a recent report that the new composition "support[s] the company's market share position and premium pricing over the competition."
Capstone (CPST) produces microturbines that can be used in parallel with utility power and heat or as a backup to it. Capable of running on fuels such as kerosene and natural gas, Capstone aims for its turbines to produce very clean emissions while helping clients save on the electricity bill. Capstone's turbines spin on high-pressure emissions from a fuel cell, reducing the need to use additional fuel.
Medis (MDTL) produces portable alkaline fuel cells designed to power increasingly sophisticated and power-thirsty personal gadgets. The devices, scheduled for a limited retail release in the fourth quarter, provide sustained power without the need to use up excess electricity. Though they're disposable, the fuel cells don't contain heavy metals, unlike standard alkaline batteries. Despite these advantages, CEO Robert Lifton says the device was developed primarily with practicality, not ecology, in mind. "It's a product for people that happens to be environmentally O.K.," he says.
Quantum's products include high capacity hydrogen storage tanks that can be used in fuel-cell powered cars. These tanks can store enough hydrogen to power a fuel-cell car for about 300 miles. Brion Tanous, managing director of equity research at Merriman Curhan Ford & Co. -- which makes a market for Quantum (QTWW) -- says that's about the minimum distance electric cars will need to travel before consumers will buy them, and that makes Quantum an industry leader in a field that could take off. He rates the stock a buy despite predicting that losses will continue into at least 2007.
Some really bad way to pay off your taxes
Have you ever seen or read this "The IRS does have what it takes to take what you've got." Well, though it's that time to tax crunching, paying your taxes, and its about that deadline time! I love it when people like myself wait for the last second to do there taxes! Why is that...oh well that's an whole nother story!
Let's talk about not getting to caught up into paying your taxe, and make some foolish decision on how to pay them off this year. Though, the IRS can be intimidating and your want to meet that April deadline dont be fooled by doing some rash decisions.
Some really bad ways to pay off your taxes, but the sad thing is people are really doing some of these. But, it's a big no no to step into this kind of debt situation!
1. Pay off the government monthly. Unless you want to just pay them off and dig a big whole for yourself and on top of all that give the IRS complete permission to attach your bank account if you fail to pay. I don't know about you but I don't feel comfortable doing that or would I be even be able to sleep at night!
2. Dig into your retirement account.
Many 401(k) and 403(b) employer-sponsored plans have provisions that allow you to borrow your own money and pay it back to yourself without penalty. The interest rate is usually low. You can't borrow against your IRA, but you can withdraw the money and use it for 60 days without penalty as long as you redeposit it into the same or a new IRA account. If the money doesn't find its way back into an IRA account within the 60-day period, it will be subject to taxes and penalties. You can only use this 60-day provision once a year. The clock starts ticking on the date you receive the distribution. While it's easy to temporarily withdraw some retirement money, most financial experts advise against it unless it's an absolute last resort. Your retirement nest egg should be a safe haven rather than an emergency fund. Bankrate's 401(k) loan calculator can help you figure the cost of raiding your retirement account.
3. Use your home equity.
If you have a home equity line of credit, it will allow you to borrow against it usually by just writing a check. Interest rates on equity accounts are attractive and if you pay what you owe quickly, this debt will cost less than putting the same amount on your credit card. But if interest rates head up, so will equity line rates. And by using this payment method, your home is the collateral for even the relatively small amount you used to pay your tax bill.
4. Take out a personal loan.
The rates on unsecured personal loans can be ugly, but not as ugly as some other fast-cash options. If you happen to have a credit union available to you, try that first because the rate is usually at least 2 percentage points lower.
5. Pay your taxs online using there direct payment. That's just giving them even more...they are asking 2.49% or something crazy like that! Why should you have to pay more when you're already paying them so much. IRS can be frustrating sometimes!
Let's talk about not getting to caught up into paying your taxe, and make some foolish decision on how to pay them off this year. Though, the IRS can be intimidating and your want to meet that April deadline dont be fooled by doing some rash decisions.
Some really bad ways to pay off your taxes, but the sad thing is people are really doing some of these. But, it's a big no no to step into this kind of debt situation!
1. Pay off the government monthly. Unless you want to just pay them off and dig a big whole for yourself and on top of all that give the IRS complete permission to attach your bank account if you fail to pay. I don't know about you but I don't feel comfortable doing that or would I be even be able to sleep at night!
2. Dig into your retirement account.
Many 401(k) and 403(b) employer-sponsored plans have provisions that allow you to borrow your own money and pay it back to yourself without penalty. The interest rate is usually low. You can't borrow against your IRA, but you can withdraw the money and use it for 60 days without penalty as long as you redeposit it into the same or a new IRA account. If the money doesn't find its way back into an IRA account within the 60-day period, it will be subject to taxes and penalties. You can only use this 60-day provision once a year. The clock starts ticking on the date you receive the distribution. While it's easy to temporarily withdraw some retirement money, most financial experts advise against it unless it's an absolute last resort. Your retirement nest egg should be a safe haven rather than an emergency fund. Bankrate's 401(k) loan calculator can help you figure the cost of raiding your retirement account.
3. Use your home equity.
If you have a home equity line of credit, it will allow you to borrow against it usually by just writing a check. Interest rates on equity accounts are attractive and if you pay what you owe quickly, this debt will cost less than putting the same amount on your credit card. But if interest rates head up, so will equity line rates. And by using this payment method, your home is the collateral for even the relatively small amount you used to pay your tax bill.
4. Take out a personal loan.
The rates on unsecured personal loans can be ugly, but not as ugly as some other fast-cash options. If you happen to have a credit union available to you, try that first because the rate is usually at least 2 percentage points lower.
5. Pay your taxs online using there direct payment. That's just giving them even more...they are asking 2.49% or something crazy like that! Why should you have to pay more when you're already paying them so much. IRS can be frustrating sometimes!
Why do companies issue stock?
Why do companies issue stock?
A company usually issues stock because:
1. The company does not have to borrow from traditional lenders
2. Issuing stock allows the company to bypass interest payments to creditors.
3. The company is not obligated to make principal payments.
4. The company is expanding rapidly.
A company usually issues stock because:
1. The company does not have to borrow from traditional lenders
2. Issuing stock allows the company to bypass interest payments to creditors.
3. The company is not obligated to make principal payments.
4. The company is expanding rapidly.
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