ElectronicMoney:


What's this about?

Good morning Sir, they used the link on my signature to register and we both got FREE shares.

Remember

- All trading systems will have slow periods.

- All systems will have a loosing streak.

- All systems go through a drawdown.

This doesn’t mean you slack off or go searching for the “holy grail”

You simply practice patients & work on your edge!

Stay sharp

Looking beyond dividend yield:
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Inexperienced investors make the mistake of falling for “yield traps”, meaning they invest in stocks that have abnormally high dividend yields.
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Unusually high dividend yields usually mean that either the stock price has tanked or the company is paying dividends at a rate that is not sustainable
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That’s where the dividend payout ratio comes in handy. It measures the % of a company’s profits that get paid out to owners as dividends
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Keep in mind, different industries have different standards/averages for dividends, so you want to compare apples to apples.
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But in general, a very high payout ratio is not a good sign because it means most of the company’s earnings are being paid out as dividends.
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If the ratio is 1 or higher it means the company is paying 100% or more of its profits in the form of dividends, which is not sustainable.
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As always, make sure you review all of the other financials/fundamentals and make sure you understand the investment before putting your money at risk.

Why bonds go DOWN when yields go UP
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Bonds are an “IOU” investment. When you invest in a bond, you’re basically acting like a bank and loaning your money to a corporation, government, etc
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The main way that you make money through bonds is through interest, just like banks make money off of you by charging you interest on a mortgage, etc
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Every day, new bonds are coming, with new yields (interest rates) compared to the yields of the bonds that came out before them
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Just like stocks fluctuate in value, bonds do too. The main reason that bonds go up or down in value is changes in interest rates.
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If “new” bonds come out with higher yields, the “old” bonds are seen as less valuable by the market because they pay you less in interest than the “new bonds”. Because they are seen as less valuable, the “old” bonds fall in value due to supply & demand.
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And vice-versa.
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Even if you don’t own them in your portfolio, you should understand what bonds are, how they work and how changes in yields can affect your portfolio and the economy (like we’re seeing now)
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As a reminder, PLEASE do not forget to use the link on my signature to register on Trove we both get FREEEEEEEEEEEEEE shares

Breaking down limit orders:
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In order to buy or sell an investment, you need to place an order to buy or sell.
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There are a handful of order types out there that you can use, including limit orders.
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With a limit order, you specify a target price (limit price) that you want to buy or sell the shares at
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The order only goes through if you receive the limit price you stated or better and there weren’t too many people ahead of you that placed the same exact order.
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So if you place a limit order to buy, the order will only go through if you receive the limit price or lower.
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If you place a limit order to sell, the order only goes through if you sell at the limit price or higher.
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Limit orders can be placed as day orders or Good-til-cancelled (GTC) orders.
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If you place one of these orders, you need to be comfortable with the fact that there is no guarantee the order will be filled.

Update:

Stocks Moving Pre-Market

$ASRT $CERC $KXIN $NNVC $SOS
$NNVC NHOD 9.40

Remember to Plan Your Entry/Exit, Verify Momentum First, Secure Profits and Cut Losses Quickly.

Do something different today, tomorrow, or this week, but do something for someone else and with the happiness shine from them. It will absolutely do something for you as well.

The world is a sh!t show right now, change it up, pay it forward, be the reason for someone to have hope in us today. And you don’t need to tell the world about it either. It is for you and them. Period.

Time in the market, beats timing the market.

If the market is booming, you are scared of getting in at the top; if it is depressed you are scared that you would be investing into a downward trend.

Good-quality companies with real businesses – and sustainable earnings and dividends – will never fail to recover from their lows.
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It’s time to take charge of your life!

$CCNC
Code Chain Announces LOI to Acquire Cryptocurrency Mining Center

The Market:
Futures down as of now, towards end of day yesterday the market had a slight pullback and SPY bounced right off key support at $389. If doesn’t open over $389, there’s a chance we could see SPY consolidate between $389 and $385 until one breaks, choosing direction. Short term most important resistance level is getting back over $389, and has short term support at $385 and ~$383

Right now since market can still be really volatile, I’m not being too aggressive buying-wise since I bought so heavy during the dip. If market continues to go up this week will look take profits on a good amount of positions. Volatility will continue imo  
Swing Plays for Today:
*Reminder: my buy/sell alerts is just what I’m doing and should just be used for ideas. Not every entry/exit will be perfect timing.

$BFI: likely to test resistance trendline again soon and has potential for a huge breakout above. Is now up to almost a 50% short float and float of 1.7m shares so will move super fast on breakout

$TTD: filling gap up towards $840, watching $825 to hold as new support

$MPLN: at long term wedge support, if it can bounce off this level (support around $7), could see upside on bounce towards $9

$API: Bounce off support today, establishing new support at $65 and if it can break and hold above $70, has upside back towards $90

$RKT: broke wedge pattern and having short squeeze on breakout. If it can break above $26.5, should see upside towards $28-30 where i’m looking to take profits at

$PLTR: short term support at $23 and resistance at $25. Needs to break above $25 and hold that level for move back up to $28 and then $32 as targets. Good place to add would be back at $23 support or when it confirms break above $25

$XL: looking strong for reversal, bounced off $14 as support and now testing first resistance at $15.5. Could be a quick mover back to $20

$THMO: has a 35% short float and market cap of only $25m. Finding support at major moving averages and $2.70 as support level. Watching for reversal play and potential for breakout and short squeeze

$VISL: forming cup & handle pattern, has huge breakout potential on a break back over $5. Establishing support at $3

Good luck today!
-What stocks are you watching?

- (NNVC) The treatment of COVID-19 are highly effective in pre-clinical cell culture studies.

-(JCS) Announces Agreement to Merge with Pineapple Energy.

-(GEG)Acquires Advanced Medical DME.

Popular Stocks:
(GME) -3.61%
(PLTR) +0.85%
(AMC) -0.11%
(MSTR) +3.96%
(NOK) -0.99%

$VACQ Moving At The Open, Already Up, Check/Verify Continuation of Volume.

Weed tickers with some spunk this morning $TLRY $APHA $SNDL $KERN $ACB. Going to just chill until these breakout, looking for higher lows on consolidation before a move up.

An option is a contract that allows (but doesn't require) an investor to buy or sell an underlying instrument like a stock, ETF or even index at a predetermined price over a certain period of time.

Buying and selling options are done on the options market, which trades contracts based on securities. Buying an option that allows you to buy shares at a later time is called a "call option," whereas buying an option that allows you to sell shares at a later time is called a "put option."



A call option is a contract that gives the buyer the right but not the obligation to buy a specific asset at a specific price, on a specific date of expiry. The value of a call option appreciates if the asset's market price increases.

The seller, also known as the writer, has the obligation to sell the underlying asset – at the agreed upon price, called the strike price – if the option is executed by the buyer, also known as the holder. The seller is paid a premium for accepting the risks associated with the obligation to sell.

Stock Market Volatility is the range of price change stocks experiences over a given period of time. If the price stays relatively stable, the stock will be known to have low volatility. A highly volatile stock will hits new highs and lows quickly, moves erratically, and has rapid increases and dramatic falls.

Volatility is often associated with fear, which can be caused by various factors such as inflation, interest rates, company earnings, political & geopolitical events, which tends to rise during bear markets, stock market crashes, and other big downward moves. However, volatility doesn't measure the direction of the overall market. It's simply a measure of how big the price swings are. You can think of volatility as a measure of short-term uncertainty.

Volatility within the market will be looked at differently depending on whether the person is a trader or investor. Traders will thrive in highly volatile situations as they are able to quickly realise the gains by taking advantage of the price movements, whereas investor will look for stocks that have relatively low volatility & can have a steady growth for the long term.

Types of market volatilities:

1. Price volatility
2. Stock volatility
3. Historical volatility
4. Market volatility
5. Implied volatility

By understanding the different types of volatilities and how they work, you can put yourself in a better position to understand the current stock market conditions as a whole, analyze the risks involved with any particular security, and construct a stock portfolio that is a great fit for your growth objectives and risk tolerance.

Compound interest is the secret sauce for building wealth, and it’s one of the most basic principles of investing. If you want to build wealth, you have to get out of debt (paying interest) and start investing (earning interest).

How to do a Zero-Based Budget:

Start with your income.
List all your expenses.
Subtract expenses from income.
Track your expenses.
Be flexible.

Listen up! By maintaining the 4 Walls, you stabilize your situation so you can begin to find margin in your budget. These are your basic necessities:
1️⃣ Food
2️⃣ Utilities
3️⃣ Shelter
4️⃣ Transportation

Take care of the 4 Walls before you budget anything else.

How to Start Investing in 5 Steps



Step 1: Set goals for your investments.
Step 2: Save 15% of your income for retirement.
Step 3: Choose good growth stock mutual funds.
Step 4: Invest with a long-term perspective.
Step 5: Get help from an investing professional.

7 Mistakes That Could Keep You From Retiring

1. You waited too late to start saving.
2. You’re in debt.
3. You robbed your RSA.
4. You’re listening to your wants.
5. You’re not saving enough.
6. You jumped off the roller coaster.
7. You’re not playing catch-up.

365 days in a year, and you only get paid 24 times.

If you spend money every day, find a way to get paid every day.

- Trade stocks
- Invest
- Sell clothing
- Build a business

So many ways to produce income in this world.

New traders, RISK MANAGEMENT is what was separates the good and the bad traders! If you want to become a better overall trader than learn from this week! Lot's of people lost money, even experienced traders did! However, the experienced trader reduced a lot of their risk by hedging and having cash on hand! Those experienced traders went through what you did a some point in their trading career! They just learned from their failures and never gave up!

If you have no clue what RISK MANAGEMENT is, then no worries. I will make updated posts on how to manage risk!

I know this was a different kind of post, but use this as motivation and lets get better!!

This is just the first part of our risk management series!

Let say you have a trading account of $10k trading account. Your position size should not exceed $500, the reason is because the most you can lose is 5% of your account. Let say you have a position size of $1000 or 10% of your accoun.t. Then you should set a STOP LOSS of at most $500, so that the most you loose is $500

The reason why most traders only risk 1-5% because it helps them plan for the trade they are about to take! Like in the example for a $10,000 account, you buy an option contract that cost $500. You are then willing to let it expire worthless because it fits in our risk management. Yes I know its not good to lose that $500. This is just a part of the plan for the trade at hand. Like you are not entering a trade for it to lose, this is just an example of the max position size/max loss should be 5% of the account!

Part 2 will be about risk to reward!

You may have heard the term ‘bullish’ or ‘bearish’ markets, but what does this mean?⁠
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A bullish trend is when there is high confidence in the market from investors buying assets. This is a signal for traders to ‘go long’ or open ‘buy’ positions if the upward trend is predicted to continue.⁠
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A bearish market is when a market has low investor confidence as investors sell off assets for cash. Traders capitalise on downward trends by ‘shorting’ markets or opening ‘sell’ positions.⁠

- If you don’t earn money, you won’t know it’s value.
- If you don’t plan, the money you earn will hold no value.

Avoid consumer debt at all costs!

There’s a difference between good debt and bad debt:

Good debt - debt that makes you money, e.g., a mortgage on a rental property (the return is higher than the APR)

Bad debt - debt that costs you, e.g., credit card debt (the APR is higher than the return (return is inflation - APR)

Bad debt will keep you broke - stay away from it at all costs. Stop borrowing future income and start buying future income - invest in assets that pay you instead of liabilities that cost you.

A 10% gain on a N1,000 is N100 people will tell you its not worth it
A 10% gain on a N100,000 is N1000 people ask you how you did it
The secrete is to get started.
You can’t have a N100,000 portfolio without having a N1,000!

Too many people look at other people's large portfolios and say, ‘there’s no point investing because it’ll take ages to get to $Bleep,Bleep’ - you have to start somewhere!

Start as soon as possible and let compound interest do its thing �

Share this with someone that needs to start investing ASAP!

GentlSummrbreez Wlecome

Want To Live Off Dividends?

Here’s how to work out how much you’d need invested to cover your expenses when given a div. yield:

1. Times your monthly expenses by 12
2. Divide that by the dividend yield

For example, you spend N5,000 a month, and when you times that by 12, you get N60,000.

Your portfolio has a 3% div. yield and thus N60,000 / 0.03 = N2,000,000.

More and more I see people gambling with their investments. If you’re following the herd, it’s gambling. If you haven’t done your due diligence, it’s gambling. If you’re timing the markets, it’s gambling. Speculation isn’t going to get you rich. You might as well go to the casino.

Roughly 50-75% of people are buying on impulse and don’t know what they’re buying. I get it, investing seems easy, especially when you see everything’s been going up for a long time – must be a piece of cake. Just remember, anyone can make money during a bull market. The real challenge starts when your stocks tumble. Know what you’re investing in so you’re not on the wrong side of a trade. Stocks are not lottery tickets. I know too many people who were in this game for a short minute and were wiped out the first time we hit a real bear market.

Many have asked where are the best places to research a stock. I’ll keep it simple for now - this is where I spend much of my time researching. When you’re learning about a company, you gotta do a deep dive into both the financials and the details about the business – the market, their growth plan, the risk, the team, etc. To do this, you have to spend some time reading. S

One of my favorite Seeking Alpha. When it comes to learning about the company, I find most of what I need from the company website, which is where you can hear conference calls and view the investor presentation (super valuable!). I also love reading content from Fool and Seeking Alpha, as they’re great in providing detailed articles about the company.

Investing is not a joke. Losing your money and livelihood is not a joke. When you’re investing in great companies, you will have very little to worry about. When you’re gambling and investing based on speculation, you’ll have a lot to worry about.

How you handle market corrections and crashes is everything. One issue is that many novice investors don’t understand how to handle volatility. Losses primarily come from timing the markets, panic selling, taking profits too soon, and buying bad companies. If you’re buying solid assets, you should have the confidence to hang on to them and watch them turn into winners. Patience is Profits! But having the right strategy with that is a must.

When listening to earnings, you’ll hear the terms “Top Line” and “Bottom Line” quite often. These are two of the most important items on the Income Statement. It’s also two of the more important metrics I’m looking at when researching a growth stock to invest in. I’m looking for a company who has very strong top and bottom line growth both now and expected over the next five years plus.

Top Line is a company’s gross sales (revenue). It’s the top line of the income statement. So when you hear “top line growth is at 25%”….that means revenues are growing by 25%.

Bottom Line is a company’s net profits. It’s the bottom figure of the income statement. The net profit is a company’s total income after all expenses are deducted from the revenue.