Successful Tradings Blog

FlowAlgo IS The Future of Trading

Allow me to introduce you to FlowAlgo  and How it will revolutionize (your) Trading. In the world of investing and Online Options trading, newsletters are abundant. Therefore, it is very difficult for beginners to determine what to follow. I will show you how the Big Money Traders (we call them the Sharks) find their ways to get to the Top. FlowAlgo is a new online service that gives retail traders access to which stocks and options the Sharks are trading. …

Read More

Options Trading Excel Template – Free Downloads

Looking for free Options Trading Excel Templates, you have come to the right places.

You will be able to easily download our proven Excel Template to help you with your options Trading.

Options Trading Excel Template #1 : ATR Excel

One of the most common question I get from traders I coach in my discord room is the following:

How To Calculate The Strike Price of an Option ?

ATR Template To Calculate The Strike Price Of an Option

If you happen to be looking for the Answer to this question, then I have an easy method for you.

It involves using the Average True Range (ATR) of the stock or instrument you are trading.

This step by step short video will guide you through this process.

To follow along, please download the Option Trading Excel Template featured in the above video.

Options Trading Excel Template # 2: Trading Journal Download

If you are serious about trading or investing, a trading Journal is the ultimate way to measure your result.

What I like to do is to do quarterly comparison of the different options strategies we trade in our 10-Baggers Trading System.

If like me, you want to know which strategies perform the best so that you can invest more into those, then this automated options trading Excel Template is right for you.

Download My Options Trading Journal Excel Spreadsheet below.

Can You Paper Trade Options On Webull in 2022

Paper Trading Options is a great Way to build confidence in your strategies.

Either you are a beginner options trader or a veteran who is testing to validate a brand new trading strategy,

you will need options paper trading before going Live.

In this discussion, we will show you the best place to paper trade Options as an alternative to Webull.

Paper Trading Options on Webull

The first time I opened my Webull Trading account and saw that there was a $1 Million for paper trading, my eyes opened quite bright.

I do not know about you but the thought to see my account grow to higher amount even if it is not really money was enough to get me super motivated in using Webull paper trading.

Is Webull Paper Trading Worth It ?

However, that enthusiasm was quickly dampened by the lack of Paper trading Options on Webull.

Can You Paper Trade Options on Webull - Webull US Stocks Paper Trading Account with over 1.027 Million
How I have been able to Grow My US Stock Paper Trading Account

I knew then and there that my days on Webull paper trading options will be very short.

Instead, I focus on other options Trading platforms that provide paper trading for options.

Why Is Paper Trading Options So Important

The first reason for paper trading for veteran traders is to test and validate brand new trading system.

With the goal to see how effective a specific trading methodology is – traders can avoid loss of time and time while pursuing a new way to make money trading options.

The sometimes forgotten reason is for beginners traders to build their confidence even on already proven options strategies.

Recently, n new trader joined our Discord room and started learning about out our 10-Baggers trading System.

My advice to her was to spend a few weeks at least getting familiar with the ordering process and the nuances of trading options.

We agreed that she would be doing so without risking really money.

Trader in Our Discord Room made over $400 Day Trading BABA Options after Paper Account Trading Boost

Therefore, she started Paper trading options with Successultradings 10-Baggers Trading system.

She traded #AFRM options on her paper account for so much profit that the next day, she decided to trade with really money.

Great confidence in the strategy led this trader to make over $500 the very next day on BABA and #AFRM on her live account

Just like this trader, you can easily emulate our successful trading strategies first on Paper trading account which Webull does not provide for options but from the alternatives to Webull Options Paper Trading below.

Alternative # 1 To Paper Trading Options On Webull

The easiest options Trading Paper account you can start today is E*Trade.

It comes with $100000 for Paper trading Options and stocks.

You will be able to reset it anytime for an unlimited funding so that you can practice and refine your options trading strategies.

Here is my Full tutorials on how to Trade Options on Etrade from your Paper account.

To View the Full Watch List on How TO Trade Options on E*TRADE, click here

Alternative #2 to Webull Options Paper Trading

I was undecided on which options trading platform to recommend as number 2 for paper trading.

But after a few second, I opted for the newcomer FUTU MOOMOO App.

This one is as progressive as Webull but It offer $1 Million dollars for Options Paper trading.

Can you Paper Trade Options On Webull - Futu Moomoo account comes with $1Million for Options Paper Trading
Futu MooMoo $1Million Options Paper Trading Account

Wait until I tell you that this amount is separate from the Stocks Trading paper account which coems with its own $1 Million.

Futu MooMoo App is gaining popularity in a great of countries around the globe as described in our Futu MooMoo Review.

FINAL THOUGHTS On Paper Trading On Webull

We have proven strategies that we have tested 1000 times on Paper trading and Live account.

May I suggest you consider leveraging them with hands on 1 vs 1 Coaching while we teach you how you can build your own consistent strategies.

Join our 10-Baggers Trading System for a Successful 2022 Trading year.

How To Read Level 2 Market Data on Webull

Webull Level 2 Market data provides an intuitive view of the battle between buyers and sellers.

In this tutorial, you will learn how to leverage Level 2 data from Webull to take your trading to the next level.

What Is Level 2 Data On Webull ?

Level 2 market data in trading is a view of buyers and sellers intend through their respective orders.

It provides the depth of how many shares traders are buying and selling as well as their corresponding prices.

This means that if you are able to correctly read Level data, then you can infer the direction of the trade on any stock, commodity or instrument you are trading.

Therefore, you can turn this Webull Level 2 market data into an edge since it provides you an advice view of price levels.

How To Get Webull Level 2 Market Data

Webull Level2 market data features Level2 Advance, a premium data feed from Nasdaq Total View.

The easiest way to get the Webull Level 2 Subscription is to go to “Help Center”.

  1. Then you click on “Subscribe to Level” as shown on the Screen below.
How To UseLEvel2 Market data on Webull - Hubsciption to Level 2 from The Help Center
How To Subscribe to Webull Level 2 From the Help Center

2. The following screen shows up and you can Choose Level 2 Subscription at the bottom of the page

How To Use Level 2 Market Data on Webull - Features of Level 1 vs Level 2 Market Data on Webull
Difference between Level 1 and Level 2 Market Data on Webull

Level 2 market data from Webull provides further in-depth view of orders.

Up to 30 bid and ask prices are used to generate orders distribution chart we will be dissecting in the next section.

How Much Does Webull Level 2 Cost ?

If you are a new trader on Webull, there is a 3-month free access to Level 2 Advanced market data.

After which, your monthly cost will be $2.95.

I really think this extra cost is worth the price for traders who want to get an edge in their trading.

What To Look For In Webull Level 2 Data

Webull representation of Level data is meant to further help traders compared to other providers.

Let’s break down the different insights you need to look for when studying Webull Level 2 market data.

Buyers vs Sellers Orders Volume on Webull Level 2

The originality of Webull Level 2 Advance market data is from the Top chart of the orders Level.

It looks as shown in the image below.

How To Use Level 2 MArket Data on Webull - Sellers Orders volume vs Buyers Orders volume
QQQ Level 2 Market Data on Webull | October 6 2021 Pre-Market

On the right hand side in red, the sellers orders (30 orders are used to summaries this view) volume is what is represented on the vertical axis.

The horizontal axis describes the price of the stock, in this case, QQQ was trading at $352.06.

The left hand side column captures the volume of all buying orders.

In the above view, the red shaded area (volume of selling orders) is much higher than the left green area.

This means that there is more selling volume that buying volume.

Therefore, the current momentum in bearish.

Price for QQQ is then expected to slide lower to the left should the bearish momentum continues.

This graphical representation of Level 2 Market data on Webull is dynamic as buyers and sellers orders come in.

As an example, later on, I capture this similar view when buyers took control and the price moved up from $352 to $353.6.

How To Use Level 2 MArket Data on Webull - View of QQQ Level 2 data when Bulls orders volume is greater than Sellers
Buyers in Control on QQQ Level 2 Market Data from Webull

Dynamic of Level 2 Market Data on Webull

Unlike Level 1 where you can only see the best Bid and Ask prices and the corresponding shares, Level 2 Advance on Webull provides a deeper view of the market.

What I like to pay attention is the dynamic movement of the orders.

Typically, when there is a strong momentum on either side (buying pressure or selling pressure),

the chart updates very quickly.

This is a sign for traders to know that the stock or instrument they are trading is attracting a great deal of traders.

Thus, we can expect bigger moves compared to a stock where the movement of the orders is not as rapid.

Here is short video depicting this phenomenon on QQQ towards the closing.

How Many Orders Can You See on Webull Level 2 Market Data

We know that Webull Level 2 Advance orders are ranked 1 through 30.

How many a trader need to display is a matter of personal preference.

I personally prefer to to show only the first 10 orders on the view below as you saw in the video.

Webull Level 2 gives you the choice to decide how much depth of the order book to display.

How To Use Level 2 Market Data On Webull - How to change the numbers of Orders Displayed on Webull Level 2 Advance
How To Change The Number of Orders displayed on Webull Level 2

Here is how you can modify how many orders on both sides as depicted on the above image.

  1. Click on the blue number to the right of shares – current numbers of orders
  2. A Small window popup that offers multiple choices menu: 1, 3, 5, 10, 20 and 30
  3. Select one of the 6 choices above – I Always Use 10

How To Spot a Bullish Momentum on Webull Level 2

Whenever I am analyzing Webull Level 2 Advance market data on a stock I would Like to trade on the bullish side, my focus is on the bottom right hand side.

So a bullish momentum with great strength is confirmed when order number 9 and 10 start flashing higher and higher prices.

This means that the Ask prices are getting accepted and the stock is likely to sustain a great buying pressure.

In this scenario, the left hand slope (green line volume) needs to be higher than the red line slope as depicted on the second image above for QQQ.

How to Recognize Bearish Momentum On Webull Level 2

For the bearish momentum or selling pressure, the slope of the red line must be above the slope of the green line.

Such is the case on the first image.

Now, using the same technique as above, I am looking at orders 9 and 10 and need to see lower prices flashing in there.

Then we can anticipate that the price is likely to reach those lower prices should the selling pressure continue.

How To Use Level 2 Market data on Webull - Importance of Orders # 9 and 10 at the bottom
Orders 9 and 10 Help Anticipate Future Price Levels

It also must be noted that the higher the size of the shares at this lower prices the more conviction is in the bearish momentum.

Last but not least, in both the bullish and bearish momentum, the range difference between Order # 1 and the bottom orders 9 and 10 is also forthtelling of the amplitude of the move.

How To Use Webull Level 2 Market Data In Options Trading

Since I mostly trade options through our proven 10-Baggers Trading System, I usually find myself scrutinizing Level 2 to help determine of I need to scale into a position further.

Let’s say I am trading Calls/Puts on QQQ or SPY in the middle of the Expiration day , Level 2 market data on Webull can quickly help me confirm whether I should buy more contracts in that winning direction.

Alternatives to Webull Level 2 Data

I have seen other level 2 market data with as few as five market orders depth view.

Such most prominent example is Power Etrade.

As a trader, you are basically left to guess what may be coming price wise.

I do not know about you but that makes me feel very vulnerable if I can not see the full depth of the market I am trading.

========> Related Video: Webull vs ETrade Review

Final Thoughts

Webull calls its Level 2 market Data Level 2 Advanced and deserves this appellation.

You will be able to get great insights in tot he depth of the orders for any instrument you are trading.

This feature is of a great help in opening a position or providing a confirmation to further scale into an already existing position.

2022 SPY vs QQQ – Which Is Best For Options Traders

I have been trading SPY Options for more than 7 years.

Then in May of 2021, something happened to QQQ Options that changed my mind from that point forward.

Today I will be sharing my experience trading SPY vs QQQ Options so that you can learn from it in order to Take your Options Trading to the Next Level.

SPY vs QQQ – The Popularity Contest

If you have been trading US stocks or options for awhile, chances are you have come to learn about SPY ETF (Exchange Traded Fund).

If not, you can certainly add to the popularity of this instrument over its tech peer QQQ.

According to Google trends, SPY is 10 times more popular in searches than QQQ with their respective score 62 (SPY in blue) vs 4 (QQQ).

The above view represents a comparative live worldwide view of SPY vs QQQ.

For non traders, this popularity contest presents QQQ as secondary trading instrument compared to ins counterpart SPY.

However, you and and I know than this could not be further away from the truth.

Therefore, one can really wonder what’s going on here ?

Let’s try to get you some answers below.

Who Trades SPY and QQQ

Let’s try to find out if Google Trends data may be skewed by the fact that the word

SPY can appear in searches not related to trading ( yeah there are movies about SPY – singular).

In order to do so, I researched data from two popular trading medium.

One is the social media of stock market known as Stocktwits.

The other is none other than the high profile growing trading platform Webull.

Both have this common trending indicator on how many traders are watching each specific stock.

2022 SPT vs QQQ - Which is Best For Options Traders - Numbers of Traders for SPY vs QQQ according to Stocktwits and Webull
SPY vs QQQ Traders in Stocktwits and Webull Platforms

Instead of just pure searches from Google, I now can present you the real attractiveness of SPY vs QQQ using real traders from Stocktwits and Webull trading platform.

Which one HAs the Edge SPY or QQQ ?

The “traders” numbers may not be as one sided in favor of SPY as Google Trends data but nonetheless, SPY is still clearly leading QQQ ETF.

Just in case you may be wondering what is the big deal about this data on which one of these two ETFs is more popular than the other, please allow me to remind you of the context.

Should you find out that one instrument you are interested in trading can provide more value than a similar counterpart, well you would have discovered an edge that you can take advantage of.

As you may know by now, having an edge is what trading is all about and my goal from this point on is to show you that one of these two has an edge over the other one.

Google Trends62415:1
StockTwits Traders363K112K3:1
Webull Traders160K81K2:1
SPY Vs QQQ Popularity by Medium | Google Trends vs Stocktwits vs Webull Platform

Once I establish that edge from data and my actual trading, all you will have left to do will be to emulate my Trading System to start making money consistently day trading one of these two ETFs.

First, let me show you some similarities between SPY and QQQ.

Similarities Between SPY and QQQ

Aside from the obvious fact that SPY and QQQ are both Exchange Traded Funds (ETF), they have a big common characteristic that you and I need to explore.

As ETFs, SPY and QQQ are tobe seen as a basket of selected stocks in which each stock has a weighting.

Think of this as ya basket of fruits where some of the fruits have a higher representations.

Such baskets can have 3 apples, 2 pears, one papaya, one orange , one pineapple 🙂

In this case, the fruits are stocks.

Therefore as the importance of some stocks grow higher so will the direction of the ETF be dictated by those stocks.

Now, what if I tell you that even though SPY represents 500 of the USA most powerful stocks, only a handful actually influence the direction of this ETF.

Furthermore, these very few stocks are the same ones that have the highest weighting on the Techs ETF QQQ.

In the Table below, I am summarizing the Top10 Holdings for SPY and QQQ with their respective weighting (importance) in each eTF.

RankStockQQQ Weighting (%)SPY Weighting(%)
8FaceBook (FB)3.7%2.3%
9PayPal (PYPL)2.3%N/A
10Adobe Inc2.1%N/A
Top 8 Holdings of QQQ are also Top 8 of SPY

SPY vs QQQ Top Holdings Review

The first glance at this data reveals that the Top 8 stocks in terms of weight (importance) on both SPY and QQQ are identical.

Let’s spell these technologies stocks out so that it is crystal clear for all that trading (or investing for that matter) SPY or QQQ is basically trading technology stocks.

Apple | Microsoft | Amazon | Tesla | Alphabet | NVDA | Google | Facebook are the most important stocks inside the QQQ ETF.

These only 8 stocks accounts for 49% of the total ETF.

Yes, you are reading this correctly. This same group weights 26% inside of SPY.

Given that SPY has 500 stocks, I do not know about you but seeing that less than 2% of the stocks in SPY ETF account for more than a quarter (26%) of its price is a big eye opener.

In Summary, we have 8 stocks that drive QQQ each and every day while being of great importance in the broader market index SPY.

Hence, once could infer that SPY mostly derives its price from QQQ given that the latter is one of 11 sectors of SPY yet 8 of its stocks have a combined contribution of 26%.

Historical Returns of SPY vs QQQ

In my goal to prove that despite having similar Top 8 holdings, QQQ and SPY differ in their benefits for day traders, I would like to offer you Exhibit # 1 in the form of the the last 10 years returns for each ETFs.

QQQ vs SPY Chart Over Last 10 years

In the view below, I trended both QQQ and SPY from April 2011 to October 2021.

The top line is QQQ while the bottom line is SPY.

The results is very clear.

2022 SPY vs QQQ -Which ETFs is best for Options Traders - 10 year Growth Rate of QQQ vs SPYs how 130% edge to QQQ
QQQ vs SPY 10 Year Growth Rate | Advantage to QQQ

QQQ grew 527% over this timeframe vs 225% for SPY.

Which means that as an investor, you would have made 1.3 times more money investing in QQQ than in SPY.

From this data alone, QQQ offers a 134% edge over SPY.

Now, you may be thinking over 10 years is a long time and more importantly, how does this edge translate into day trading SPY vs QQQ.

Because after all, the main objective is to find an edge that is actionable in the immediate future.

QQQ vs SPY Charts Since 2020 | Best Era For Day Traders

In the above 10 year chart comparison of QQQ vs SPY, one detail that was not lost to my eyes is the acceleration of the growth starting in 2020.

We know that the pandemic brought a record number of new traders into the stock market in th e spring of 2020.

Is this the reason for the sudden spike in volatility ?

I am not so sure but regardless of the reason, I have data to show that the last 18 months have provided more opportunities for day traders to make money trading QQQ and SPY options.

More Volatility in QQQ and SPY since 2020

In my research for this article, I gathered daily price actions (Open, High, Low and Close) for QQQ and SPY from 2018 to now.

With this information, I was able to determine the average move (also know as the ATR or Average True Range) for each eTF.

The great insight I can provide is that I further broke these daily moves for QQ and SPY into bullish and bearish studies.

This means that I am able to tell by how much the average daily moves are on bullish days vs bearish days.

Average Daily Bullish Move (QQQ)Average Daily Bearish Move (QQQ)
QQQ Average Daily Moves Spiked in 2020

In comparison to 2018 and 2019, 2020 average daily volatility spike above 1.06% and -1.08%for bullish and bearish days respectively.

This means that options traders made more money day trading QQQ in both market conditions because the moves were bigger.

2018-2019 vs 2020-2021 Volatility

Though that trend subsided a little bit in early 2021, the recent numbers are still higher than 2018 and 2019 averages by at least 17% .

For the bullish days (+0.76% vs 0.65% in 2018-2019) and 26% for the bearish days (-0.92% in 2021 vs. 0.73% in 2018-2019).

Now, if I was able to provide similar data for SPY, we will really be able to determine which one of the two ETFs has an edge over the other one for day trading of options.

Lord behold, I have that data as well.

Here it is.

Average Daily Bullish Move (QQQ)Average Daily Bearish Move (SPY)
SPY Average Daily Moves Spiked in 2020

What does the SPY Daily Average moves study from 2018 to 2021 tell us ?

A great deal.

SPY Volatility Spike in 2020

First of all, the same spike in 2020 we described on QQQ is also true in SPY when comparing volatility in 2018-2019 vs 2020-21.

So yeah SPY options traders have been makin more money recently over the last 18 months.

However, the meat of the data is the fact that QQQ daily moves even prior to 2020 are far higher than SPY average daily variations.

This is true for both the bullish and bearish days when we read the QQQ table and SPY table over the same year.

How much of an Edge does QQQ offer to Options Day traders ?

Here is the Summary view below year after year in each market condition.

QQQ ATR better than SPY ATR by(%)2018201920202021
Bullish Days38%31%16%40%
Bearish Days44%24%37%76%
QQQ Average Daily Moves Compared to SPY by year by Market Condition (Bullish and Bearish)

The above table is the main take away I want to give you today on why day trading QQQ options over SPY Options is better for you as a trader.

On bullish days, QQQ options will give you in average 40% more profit compared to your fellow SPY traders.

In bearish days in 2021, that edge grows to 76% !

I do not know about you but that is all I need to make QQQ my favorite ETF to day trade Options with in 2021, 2022 and beyond.

There is just one major fact I need to reveal to you to fully close this tutorial.

What Makes SPY and QQQ Attractive for Options Day Traders

The main reason I trade SPY more than any other stock is the availability of mid week options.

Meaning that we do not have have to wait until Friday for Expiration.

Why does that matter ?

Because with closer Expiration date on Mondays, Wednesdays and Fridays, the cost of options is small.

Which menas that you do not need thousand of dollars to trade otpions.

Better yet, you may not even need hundreds of dollars to do so as illustrated in the short video below showcasing how I am able to trade very cheap options as low as with $1 !

How To Trade SPY Options for Profit

In case you are new to this blog, may I suggest you read this expose on how to trade SPY options for profit that I have been using to consistently get great results.

It is a very simple and effective technique that leverage the volatility of weekly options.

As supporting evidence, there are the many videos I shared on my YouTube channel about this very methodology on weekly SPY Options.

WHY IS QQQ Options Trading More Lucrative Than SPY Since MAy 2021

Since 2018, SPY has been the only ETF to provide mid-week expiration for options.

Until May of 2021 when Market Makers finally decided to to introduce Mondays | Wednesdays | Fridays Expiration for QQQ options.

This is a big game changer for this options trader.

Why ?

Remember how I spent the majority of this discussion explaining that QQQ daily move are higher than SPY ones ?

Consequently, with the introduction of mid-week options on QQQ, this means that QQQ traders will make more money day trading QQQ options on expiration days in lieu of SPY.

2022 SPY vs QQQ Options - Which is Best for Traders - Payout per date inside Successful  Tradings Discord Channel
QQQ Options Payout in Our Discord Since Introduction of Mid-Week Expiration

QQQ vs SPY Story Inside My Discord Room

That is exactly what I have been doing since the first week of May 2021.

Even though I still keep an eye on SPY, 99% of my day trade on Mondays, Wednesdays and Fridays expiration have been on QQQ.

Do not get me wrong, there is still money to be made on SPY Options on expiration day

However, since the research data I provided earlier shows that there is even more money to be made day trading QQQ options on Expiration days, why not focus exclusively on this technology ETF.

SPY vs QQQ | Change of Discord Room Name

Let me share this cute story from last week regarding SPY vs QQQ options trading.

One of the Room in My Discord channel is was named “The SPY that Pays Us” when I first created the channel.

Recently, given the slew of QQQ options trades we have been enjoying ( see videos on YouTube here ), Nick a new trader simply asked me: “Why are we still calling this channel the SPY that Pays US ?

2022 SPY vs QQQ - Which one is best for Optiosn traders - Discord Room named The QQQ That PAys Us
Recent Name Change of former SPY Discord Room to ” The QQQ That Pays Us”

I did not even think about it twice and said: yeah, I agree.

We needed a name change and so we did.

The new room where I post the strategies related solely to QQQ is called ” The QQQ that Pays US” 🙂

Statistics of Numbers of Trades SPY vs QQQ

Just from may Discord channel using the Data posted in the newly renamed “The QQQ that Pays US” room, I have gathered all the outstanding trade on QQQ since early May.

The data features 30 trades on QQQ with average profit of 760% !

Our strategy consist of entering trade on Gaps in the morning .

We setup strangle with strike price about $3 away from current price in each directions.

Then at the close, we can do a similar technique in the last hour or simply follow the closing momentum.

This second part has its best results on expiration days Mondays , Wednesdays and Fridays.

The beginning of the Day technique can works on Tuesday and Thursdays.

Such was the case today , yeah as I am finishing this SPY vs QQQ debate.

I trade the SEpt29 365 Puts that went from 48 cents yesterday at close to almost $6.

For a Day trade entry, you would have most likely ended up with 500% to 600% profit.


I provided multi year research that showed that QQQ options traders are better off with this ETF rather than SPY.

Hopefully this settle the proverbial question you may have had prior to learning about SPY vs QQQ for 2022.

I also introduced my methodology on how I like making money trading QQQ Options.

Should you want to learn more, I strongly invite you to join our 10-baggers Trading System.

I will help you Master The Insights into Making a Living Trading QQQ options in 2022 and beyond.

Is it worth Trading on Margin? – Easy Step by Step Guide

Is it worth Trading on Margin?

Trading stocks on margin entails borrowing money from a broker in order to make a transaction. But is it worth trading on Margin? Let’s find out. 

A margin account improves purchasing power while also allowing investors to utilize someone else’s money to raise financial leverage by borrowing money from other investors. 

Margin trading has a higher profit potential than regular trading, but it also carries a higher level of risk.

Is It Worth Trading On Margin | What is Margin Trading?

Buying stock on margin implies borrowing money from a broker in order to make a transaction. As a result, you might consider it a loan from your brokerage. 

Margin trading permits you to purchase more stocks than you would ordinarily be able to do. A margin account is required in order to trade on margin. 

This differs from a traditional cash account, in which you trade with the money that is now in the account. To create a margin account, your broker will acquire your signature. 

The margin account may be included in your normal account opening agreement, or it may be a completely different arrangement from your standard account opening deal. 

A minimum initial investment of $2,000 is necessary to open a margin account, however certain brokerages may ask for a higher amount. The minimum margin is the amount of money that you put down as a deposit.

How Does Margin Trading works?

Observing how margin trading could play out in the real world is the most effective approach to learn about its complexities.

Consider the following scenario: Jerry has $5,000 in cash on hand, and he wants to purchase a stock that is worth $100 a share. He proceeds to purchase 50 shares of the stock.  

One year later, the stock price has increased to $120 a share, and Jerry chooses to sell all of his remaining shares for a total of $6,000. 

Is it worth Trading on Margin? - How Margin Trading Works?
How Margin Trading Works?

Jerry generated a $1,000 profit on his initial investment, resulting in a $1,000 profit. Generally speaking, this is how the stock market operates.

But first, let’s go back to the beginning of the narrative. Following margin regulations, Jerry could put down $5,000 and then borrow an additional $5,000 to purchase 100 shares of the stock he was interested in buying. 

Jerry would gain $12,000 if he performed that leverage trade and then sold all of his shares a year later at the same $120-per-share price, resulting from that margin trade. 

Jerry would wind up with a little less than $2,000 in profit after he pays back the $5,000 he borrowed (plus interest) on his loan.

That sounds fantastic, doesn’t it? Not so fast, my friend! Keep in mind that while your winnings are larger, your losses are also larger—this is the downside of margin trading.

A decline in Stock Price

What if the stock price dropped to $80 per share after a year and Jerry decided to sell and take his losses? 

Even if Jerry was able to sell all 100 of his shares for $8,000, he would still be required to repay the $5,000 he borrowed (again, plus interest). 

After subtracting this amount from his initial investment, Jerry is left with less than $3,000, which indicates he has taken a $2,000 loss. Yikes. If he had just continued to invest his $5,000 in 50 shares, he would have only suffered a loss of $1,000.

Buying on Margin

Purchasing stocks on margin is similar to borrowing money from your broker in order to purchase shares. 

The use of margin increases your prospective returns, both for good and for worse, and it is critical for investors to grasp the implications and potential ramifications of doing so.

First and foremost, borrowing money on margin entails paying interest to your broker on the money you’ve borrowed. 

For example, at Fidelity, the interest rate on margin balances up to $24,999 is 8.325 percent. With the maximum rate being $24,999. Consider the difference between that rate and the possible yearly return of 9 % to 10 % on stocks. 

You’ll quickly see that you’re taking on the risk, but the broker is reaping the profits to a significant extent. 

In order to take advantage of margin, you must be concerned about your net profit margin. Which is the amount of money left over after paying interest. And which will be less than the amount of money gained through investing.

Investors should also be aware that brokerage firms have initial margin requirements, also known as minimum margin requirements. It requires the investor to deposit a certain amount of money into their account before they may borrow money. 

To utilize margin at Fidelity, you must first deposit $2,000 into your account. The margin requirement for purchasing an individual stock is 50 percent. Which means that if you wish to purchase stock worth $10,000, you must put up an additional $5,000 in equity. 

In addition, there are maintenance margin requirements of at least 25 % equity. Which would apply when account values decrease. And that rate may be modified based on how the account performs and overall market volatility, among other factors.

Margin Call

When you have a margin loan that is still owing, your broker may issue what is known as margin call. Which is particularly useful if the market swings in your favor. 

When you receive a margin call, your broker may require you to either provide additional funds or sell positions that you presently hold in order to meet the call. If you are unable to cover the call. Your broker will sell your positions in order to make up the difference.

However, if your broker begins to sell off your positions, that broker isn’t concerned with your tax status, your assessment of the company’s long-term prospects, or anything else other than meeting the call. 

If the market turns against you in a significant way. For example, if the business whose stock you purchased on leverage went bankrupt and the shares became worthless. You’ll still responsible for the money you borrowed.

What are the Benefits of Margin Trading?

The following are some of the benefits of Margin Trading:

The opportunity to leverage assets

In order to enhance the amount of your investment, you may buy stocks on margin and use the value of the assets you currently own to leverage the size of your purchase. 

If the value of your investment grows, you will be able to potentially increase your returns as a result of this strategy.

The ability to profit from share price declines

Short selling is a complex investment technique in which an investor attempts to profit from a decreasing stock price by selling shares at a loss. 

You must first borrow shares of stock from a brokerage business in order to sell a stock short. This requires that you have a margin account approved by the brokerage firm.

Is it worth Trading on Margin? - Win - Win Situation
Win-Win Situation

After borrowing shares, you sell them and then repurchase them at a later period at a cheaper price. Assuming that the price has dropped. 

Your profit would be equal to the difference between the proceeds of the initial sale and the amount necessary to purchase back the shares.

The capacity to diversify a portfolio

If your portfolio contains a significant block of stock from a single company. Such as a current or previous employer, you may be placing too many eggs in one basket and risk losing your investment. 

The use of your shares as collateral for a margin loan. On the other hand, maybe possible through the use of a margin account. 

Once you get the loan funds, you can invest them in other investments. Rather than selling the stocks that you originally purchased with them. 

A significant unrealized capital gain and the desire to maintain it that way might make this method particularly advantageous.

A flexible line of credit

A margin loan can be taken out at any time once your account has been approved for margin borrowing. You will not be required to submit any extra paperwork or applications. 

It may be advantageous to have immediate access to cash in a variety of situations, such as when you are jobless, when you have an unexpected medical cost, or when you require a rapid means to access cash for any other reason. 

If your brokerage account includes a checking account, you may simply write a check to cover the transaction.

Interest rates are at historic lows

With a margin loan, you will be subject to interest charges in the same way that you would with any other loan. 

As a result, because margin loan rates tie to the federal funds target rate. Your interest rate may be lower than what you would pay for a credit card cash advance or a loan. Particularly if you have a big amount. 

It is possible that margin rates are competitive with rates on home equity loans. But without the hassle of paperwork and application costs.

Flexibility in terms of repayment

As long as your debt does not exceed your margin maintenance requirement. You are free to choose your own repayment plan for your loan.

Interest that is tax-deductible

The interest that accrues in the account may use to reduce taxable income in the future. For further information about your specific tax position, consult with your tax expert.

Participation in advance option strategies

Being approved for both a margin account and options trading gives you the ability to make sophisticated options orders on stocks, ETFs, and indexes, such as spreads, butterflies, and uncovered options on these instruments.

What are the Risks Associated with Margin Trading?

The concept of putting lipstick on a pig isn’t something we’re going to do here; margin trading is a pretty bad idea. This is a terrible concept. Debt is already a bad investment in and of itself—but attempting to invest with debt? That takes dumb to an entirely new level.

One of the most widespread misconceptions is that billionaires gained their fortunes by taking large financial risks with their money. 

When Trading On Margin Goes Wrong

Wrong! While it is true that virtually all investments include some level of risk, millionaires keep their risk-to-reward ratios in line by sticking with tried-and-true assets that have a proven track record over a lengthy period of time.

A large portion of the millionaires in the world owe their fortunes to their plain old 401(k) and IRA accounts! The affluent individuals we know do not rely on debt—or, pardon us, “leverage”—to achieve their financial success.

Here’s the deal: every time you put yourself into debt in order to invest. You are putting yourself at risk of financial ruin, and it is just not worth it. 

When it comes to margin trading, a few bad decisions might result in the loss of your whole portfolio. 

Interests on Margin Accounts

Not only do you run the danger of losing your whole investment if your stocks take a plunge. But you must have to repay the margin loan you took out, plus interest if your stocks continue to decline. 

Because of the interest payments and charges you must pay in order to execute your transactions. You might potentially lose more money than you initially invested in some circumstances.

Millionaires understand that accumulating wealth takes time and that there are no shortcuts to success. They don’t take needless chances with their money, and you shouldn’t either.

Failure of Margin Trading

According to media sources, a 20-year-old student in the United States committed himself recently after discovering a $750,000 negative balance in his trading account, according to the report.

The student was trading options through the use of an app that was popular among ordinary investors in the United States.

Interest Rates on Margin Accounts

You’ll be required to pay interest on the amount of the margin loan, just as you would on any other loan you’ve obtained.

Margin interest rates are generally lower than those charged by credit cards and unsecured personal loans; nonetheless, you should conduct your own comparison.

Based on a tiered schedule that is defined by the amount of margin loan taken out, the interest rate is adjustable. If you have a large amount, you will be charged a reduced interest rate.

Debit balanceMargin interest rate
$1 million +4.000% (3.075% below base rate)
$500,000–$999,9994.250% (2.825% below base rate)
$250,000–$499,9996.575% (0.500% below base rate)
$100,000–$249,9996.825% (0.250% below base rate)
$50,000–$99,9996.875% (0.200% below base rate)
$25,000–$49,9997.825% (0.750% above base rate)
$0–$24,9998.325% (1.250% above base rate)

Ways to Avoid Margin Trading Risks

  • Consider establishing a cash buffer in your account to assist decrease the risk of receiving a margin call in the future.
  • Take steps to prepare for volatility; structure your portfolio such that it can sustain large swings in the total value of your collateral without dropping below your required minimum equity.
  • Invest in assets with high return potential; the securities you purchase on margin should, at a bare minimum, have the ability to earn more than the cost of the loan’s interest payment.
  • Decide on a personal trigger point, and have additional financial resources on hand in case your balance reaches the minimum required to maintain your margin account balance.
  • Pay down interest charges on a regular basis; interest costs post to your account on a monthly basis. So it makes sense to pay them down before they balloon to unmanageable proportions.

Alternative to Margin Accounts

A cash account is the only alternative to a margin account. A cash account is a kind of brokerage account in which the investor is required to pay the entire amount of money for the securities that are bought.

Quite simply, your money represents your purchasing power in a cash account. In order to trade, you cannot borrow money.

Keeping track of your settled funds and unsettled monies is essential while operating a cash account. Money has been collected.

Most of the cash collected from liquidation holdings over the past two days is included in the unsettled funds’ category. It becomes settled money once it has been settled.

It is not necessary to count day trades while using a cash account. With your settled money, there is no restriction on how many day transactions you may make.

Please bear in mind that trades are done in a cash account takes 2 business days for the funds to fully settle before they may be utilized to purchase and sell in the same account again. Two business days are added to the date of the trade.

When funds are used to acquire securities that have not yet settled in the account, it is considered a good-faith breach. Because of this, it is quite easy to obtain good-faith violations if you engage in day trading with a cash account and do not have sufficient settled money (GFVs).

Margin Trading – A Quick Summary

Here is a quick summary of Margin trading that will help you to decide whether it is worth it or not:

Minimum Investment$2000 (Depends on Broker too)
Benefits• Maximized potential returns
• Tax-deductible allowance
• Advance trading options
Risks• High chances of loss
• Interest Expense
• Chances of losing the initial investment
Best Margin Trading Platforms•
• Interactive Brokers
• Plus500
• Charles Schwab
• Fidelity


Margin trading entails a considerably higher level of risk than traditional investment. It is possible that you will lose even more money than you initially invested if the transaction does not go well for you. 

However successful your trading is, interest costs on money borrowed might eat away at your profits in the long run.

Assuming that you are completely aware of the dangers and expenses associated with margin trading. It has the potential to improve your earnings and return on investment. It may also make it possible for you to invest in a wider choice of assets.

Is Acorns Investing Worth It? Our 2022 Analysis

Is Acorns Investing Worth It?

Acorns is one of the most popular round-up investing applications available, and it is among the finest in the business. It’s simple to use, offers a fantastic education platform for novice investors, and has simple, upfront costs, among other things. But, Is Acorns investing worth it? Let’s find out!

Is Acorns Investing Worth It | What is Acorns Investing?

Acorns is a fintech company best known as a micro-investing platform. It allows users to set up automated investments into a portfolio through Round-Ups: Acorns rounds up a debit or credit card purchase made on a linked card to the nearest dollar and invests the change on behalf of the member.

Investments are made into one of five portfolios carrying different levels of risk. Acorns is one of many fintech companies focusing heavily on millennial investors, including Robinhood Markets, Inc. and Stash Financial, Inc.

It appeals to millennials and other people new to the world of investing, who may not have significant capital to put toward their retirement. Acorns’ goal is to enable users to invest early and often and with minimal effort. The average Acorns member invests more than $30 per month through Round-Ups, the company’s signature program.

When was Acorns Investing launched? 

Acorns is an Irvine, California-based financial technology and financial services business that specializes in micro-investing and Robo-investing. Acorns had 8.2 million clients and $3 billion in assets under management in 2020, according to Fortune’s Impact 20 list.

 It was first released in 2014 as an iOS and Android app. The portfolio choices available to users created in collaboration with Nobel Laureate and paid adviser Harry Markowitz.

Who created Acorns Investing App? 

Walter and Jeff Cruttenden, a father-and-son business partnership, established Acorns in 2014. Walter, the father, established investment banking company Roth Capital and was the founder and CEO of E-Trade’s investment banking division. 

Shlomo Benartzi, a behavioral economist, named head of an Acorns behavioral economics committee in 2018. He is working on the Money Lab project, which would perform field tests on customer spending.

CEO Noah Kerner, who formerly headed creative branding firm Noise and served as Chief Strategy & Marketing Officer at WeWork, now leads the business. Acorns intends to go public in May 2021 via a merger with Pioneer Merger Corp, a blank-check business.

How Does Acorns Work?

Acorns is a platform that allows members to invest by saving small amounts of money regularly; a method known as micro-investing to save for retirement. Essential banking services are also available on the website for a low fee.

The company’s services are divided into three areas. The first allows members to invest their spare cash in exchange-traded funds (ETFs). The second feature allows users to create and fund an IRA directly through the platform, and the third gives members access to a debit card provided by Visa, Inc.

Acorns offer five distinct Robo-related products for Invest, Later, Spend, Found Money, and Early.


A taxable investment account in which you may invest in exchange-traded funds (ETFs) based on your risk tolerance and financial objectives. 

Round-ups and dollar-cost averaging are two methods to keep the account funded indefinitely. You may set up regular donations to your account for as little as $5 with the latter. As previously stated, the former invests “spare change” from a connected account.

Is Acorns Investing Worth It? - Acorns Mobile App
Acorns Mobile App


Retirement is referred to as “later” by Acorns. You’re meant to invest for the long term, and selling your assets too often may be expensive. 

Perhaps Acorns should assume that their client base understands what “retirement” entails. In any event, “Later” is just a method to deposit funds into an IRA, which is a requirement for any Robo-service.


A checking account that includes a debit card and waives several fees, including one for maintaining minimum balances. 

Some ATM costs are also reimbursed. Smart Deposit is another tool that enables you to automatically drain money from a direct deposit in your Spend account into other accounts, such as Invest. 

Found Money

A website that gives you a tiny percentage back on purchases made at hundreds of big stores, including Walmart. The money you save when you purchase on Found Money goes into your Invest account.


Acorns’ most costly tier offers access to a UTMA/UGMA account, enabling parents to open up accounts for their children without dealing with complicated paperwork.

What are the features of Acorns investing?

You can set up regular payments of larger amounts, receive referral incentives, and earn additional cash to invest by shopping via Found Money, the main Acorns app’s rewards program, to increase your Acorns balance, but these features aren’t as well promoted as the ability to invest your change. The features of acorns include: 

  • Diversified portfolios.
  • Automatic rebalancing.
  • Access to Acorns Earns partners to earn while you shop.
  • On-the-go accessibility through our mobile and web app.
  • Investment support from our dedicated support team.
  • Access to Acorns Later, an easy way to save for retirement.
  • Access to Acorns Checking, the only debit card that saves, invests and earns for you.

How Can You Benefit From Acorns?

“The ideal moment to start investing was ten years ago. Today is the second-best time”. This is a saying you’ve probably heard before, and it couldn’t be more accurate. 

Compound interest has more time to act to your advantage the sooner you start investing.

For a student, is Acorns investing worth it? Acorns offer a great deal. It may be a fantastic method for students with large debt loads or modest salaries to start creating money for their long-term future.

Acorns are well-known for its ability to invest your extra cash, and for a good reason. It’s a fantastic concept, and Acorns makes it simple. 

Is Acorns Investing Worth It? - Acorns Mobile App
Acorns Mobile App

The majority of individuals are unaware that investing isn’t limited to spare cash. You have the option of making more significant donations, which may be done automatically.

You may set up an account to automatically invest a modest but regular amount of money each month. You’ll have a far more significant effect if you combine automatic contributions with round-up investments.

Keep in mind that you’ll have to pay a monthly charge to utilize Acorns. To make the entire thing worthwhile, you’ll want your investments to be more than your charge.

Rounds Up Method

Acorns is well-known for its “Round-Ups” method, which allows you to invest your spare change anytime you use a connection card. Let’s suppose you spend $9.45 on lunch at your favorite restaurant. You may use Acorns to round up to $10 and invest the additional 55 cents in your Acorns account.

Acorns has taken Round-Ups to the next level. You may choose to increase your “spare change” amount by up to 10 times. As a result, instead of spending 55 cents, you may invest up to $5.50 in that one transaction. This is a great habit to develop if you want to save more money every day.

In this instance, “Acorns Earn” refers to one of the Acorns’ most incredible and most potentially effective features, rather than any dimes or pennies you may discover on the pavement.

The way it works is that every time you use your Acorns-linked debit or credit card at a participating shop, that retailer will contribute to your Acorns investing account.

We’re not even talking about off-brands here. These are presumably companies where you already spend money.

Checking Account

Acorns also provide an Acorns Spend checking account. With their Smart Deposit service, you may have a part of your paycheck automatically deposited into your checking, investment, or retirement account. It’s a way to put money into yourself without even thinking about it.

Acorns Spend also includes a Visa debit card, which you may use to make purchases and deposit round-ups into your investing account. You also get access to 55,000 fee-free Allpoint ATMs throughout the United States.

Plus, if you sign up for direct deposit into your Acorns Spend account and get two installments, you can earn $75 right now. That’s an additional $75 you may put toward your investment account, retirement account, or have some extra spending money.

You’re well on your way to getting the most out of the Acorns app if you’ve signed up for Round-Ups and automatic contributions. You may get a bit more out of it if you connect your credit cards.

We aren’t usually lovers of utilizing credit cards. After all, getting out of needless consumer debt is a key to financial success.

Rewards Program

Credit cards with substantial rewards programs, on the other hand, may increase your Acorns advantages if you avoid keeping a revolving amount.

Let’s suppose you go to Starbucks and spend $2.95 on a large coffee. Acorns will round up to the nearest 5 cents and deposit the difference in your account. 

However, if you have a Round-Up booster set, you may round that number up to $5 and save even more money in your account.

If you pay using your Starbucks credit card, the money will be credited to your rewards account as well. 

You’re working your way toward complimentary drinks on top of the additional $2.05 you’ve placed in your Acorns savings account. If you do this every day, it will mount up over time, both in terms of your Starbucks addiction and your money.

Of course, depending on your credit card program, you may utilize this method to earn frequent flyer points and perhaps cashback.

There’s no better way to invest your extra cash and receive the odd store reward than Acorns, mainly since it provides IRA accounts. Acorns’ automated roundups simplify saving and investing, and most investors will be astonished at how fast their pennies add up.

What are the other users saying about Acorns Investing?

Is acorns investing worth it or not can be known by looking at the figure that the business has received about $100 million in venture capital financing since its inception.

Jennifer Lopez, Alex Rodriguez, Bono, Ashton Kutcher, and Kevin Durant were among the prominent investors in Acorns as of August 2019. PayPal, BlackRock, and NBCUniversal are among the company’s investors.

How to buy a subscription of Acorns?

For your financial requirements, Acorns provides three distinct subscription levels.

Acorns Lite costs $1 each month- Are you ready to get started? With a simple, automatic investing account, you can invest spare change, set up recurring investments, and more.

Personal Acorns – $3/month- Your financial health system, complete with all-in-one investment, retirement, and checking accounts, as well as a metal debit card, financial counseling, and more!

Acorns Family- $5/month- There are investment accounts for an infinite number of children per family! Also included are a personal investment, retirement, checking accounts, bonus investments, financial counseling, and more!

While those costs seem to be reasonable, they’re very costly when calculated on an annual % basis, as many other investing apps and Robo-advisors do. 

Is Acorns Investing Worth It? - Pricing
Acorns Pricing

Younger employees just starting—the kinds of investors Acorns aims to attract—will pay more than rival robos.

Assume you have $100 to put in a new investing account. Your yearly fee would be $0.25 if you utilized Betterment, which charges an annual percentage rate of 0.25 percent for its essential Betterment Digital product. The cost of that $100 investment over a year would be $12 if you established an Acorns Lite account.

Consider a $10,000 investment in an Acorns Personal account, which would cost you $36 per year, or 0.36 percent, making it more costly than Betterment.

Naturally, when you invest more, the fees become a lower and smaller percentage of your total amount, but this may take time. 

Expenditure Ratio

The expenditure ratios for investment expenses vary from 0.03 percent (VOO) to 0.25 percent (two ESG funds). If you invest in Early, Invest, or Later, you will pay this amount.

A brief word on Spend: While Acorns’ checking account is technically free, the fact that you must spend $36 per year to get access to it is less than ideal, primarily because other robos, like Betterment, provide access without such restrictions.

Even so, you could see the checking account as a bonus to get into the $3 tier, in which case the cost is less important.

How to cancel the subscription of Acorns? 

If due to any reason, a question arises in your mind that “is acorns investing worth it or not?” and you like to cancel your subscription. Follow these steps while operating from your phone: 

  • Tap the menu (avatar) in the top left corner of the screen after signing in to your account.
  • Tap “Settings,” then “My Subscription,” then “Manage.”
  • Follow the steps to liquidate and cancel accounts by tapping “Cancel subscription.”

And if you are operating through the web and the same question hit your mind that “is acorns investing worth it or not?” and you want to cancel your subscription. Follow these steps to cancel your subscription of acorns:

  • After signing in to your account, go to the top right corner of the screen and select the menu (avatar).
  • Select “Profile & Settings” from the drop-down menu.
  • Select “My Subscription” from the drop-down menu.
  • Scroll down to “Manage” and click it.
  • Select “Cancel Subscription” from the drop-down menu.

To liquidate and cancel accounts, follow the instructions.

How to reach customer care of Acorns if having any inquiry?

If you have any queries, feel free to contact the Acorns Support team:

Phone: (855) 739-2859.


What are the alternatives to Acorns? 

Is acorns investing worth it alone, or do an investor have any other option too? The answer to this question comes up with several alternative options. 

There are several alternative applications, which are operating on the principle of acorns. Some of them are Betterment, Wealthfront, and wealth simple. Let’s discuss a few details of these apps. 

Betterment simply levies a fee. It charges a flat cost of 25% per year for its lowest pricing tier, which works out to only pennies a month while you build up your portfolio.

What about Wealthfront, another Robo-advisor? You will require a $500 minimum balance. They do, however, provide free account management for the first $10,000 of each account. Wealthsimple, a Canadian Robo-advisor, charges up to.50 percent in fees but also provides a personal touch.

But an alarm beeps in the mind that is acorns investing worth it more than the others? The answer is, the five investment portfolios Acorns offers to maximize your profits while minimizing your risk.

Moreover, Acorns does not operate on commission. Therefore there are no account minimums. Acorns aims to provide you with the resources you need to take the best possible care of your finances.

We believe that everyone should have access to financial health, so we make it simple to invest in yourself. You can start investing early and frequently with Acorns without making major lifestyle adjustments. You may get start with as little as $5.

Pros of Acorns App

The answer to the question “Is Acorns investing worth it?” has two aspects. One is that the best investing approach is to get started right away—Acorns strives to make this as simple as possible. 

With no account minimum, you can start making regular contributions right away. You can also round up your purchases on connected accounts to contribute even if you do not consider yourself an investor.

However, setting up your savings is straightforward, thanks to an intuitive interface, and you won’t be overwhelmed with a confusing variety of ETFs. 

You’ll spend relatively little in fees if you stick to a primary account without ESG funds. If you need a little push to get start, Acorns’ automated service makes a lot of sense.

Cons of Acorns App

The other aspect of the answer to the question “Is Acorns investing worth it?” is that Acorns has a handful of significant flaws. 

The first is the tiered charge structure, which is prohibitively expensive for individuals who are just getting started with modest balances. It’s a terrible bargain to pay $36 a year to access an IRA when you have a few hundred dollars invested. 

While many Robo-advisors have a $500 or $1,000 account minimum, Betterment offers a no-minimum, lower-fee option.

It’s a difficult pill to take that you have to pay $3 to gain access to your bank account, and there’s no way to speak to a real-life financial adviser.

Meanwhile, although some parents may prefer a UTMA/UGMA account, anybody saving for college may wish 529 accounts were available. 

Furthermore, there are no tax-loss harvesting tools, which will be helpful if you have more money in your account and need to balance the tax consequences of selling winners.

Is Acorns Investing Worth It? – Quick Summary

We have reviewed the Acorns Investing thoroughly above, but does it really worth it? We have devised a quick guide to help you focus on the major factors that will help you decide if you really should use it or not.

Account minimum$0 to open account; $5 required to start investing.
Investment expense ratios0.03% to 0.18%.
Automatic rebalancingFree on all accounts.
Tax strategyNot available.
Portfolio mixThe portfolio mix is generally well-diversified but lacks significant exposure to international bonds.
A sustainable portfolio is available for free.
Account fees (annual, transfer, closing)$50 per ETF to have them transferred to another broker when you close your taxable Acorns account; no charge to sell your investments and have the resulting cash transferred.


The only way to fight inflation and make your money generate more money is to invest. Even though the markets are turbulent, you are more likely to earn money if you concentrate on long-term investment. 

Unfortunately, investment is often seen as a problematic and challenging concept to grasp, or at the very least, a time-consuming process to begin. This is why, before risking your real money, it’s a good idea to practice investing with paper trading.

Acorns is generally not a suitable match for people who are well into their careers unless they need to play significant catch-up with investing. 

If you’re in your 40s or later and haven’t begun saving for retirement, you should look into other ways to invest. Acorns are an excellent method to begin increasing your taxable assets, which are an essential component of every retiree’s portfolio.

Overall, Acorns is an excellent method to start investing and developing a portfolio without dealing with the headaches that come with HR. Using these methods to optimize your app use after you’ve gotten started, and you’ll notice your money start to increase quickly.

Investing vs Trading in 2021 – Which is Best For You ?

Investing vs Trading in 2021

Investing vs trading in 2021 are two very distinct ways of trying to profit in the financial markets. Both investors and traders seek gains via market involvement. 

In general, investors seek higher returns over a longer time via purchasing and holding. Traders, by contrast, take advantage of both rising and falling markets to join and exit positions within a shorter time period, reaping smaller, more frequent gains.

Differences Between Investing and Trading

The following are the 5 key differences between investing and trading:

Basic Difference

Trading usually carried out by individuals who engage in intraday trading and are always on the lookout for growth investment opportunities, in which case technical analysis techniques are used. 

They are able to anticipate whether the movement will be greater or lower. On the other hand, an investor is seeking a good return on his or her investment. Moreover, he or she is willing to hold onto their investment for an extended period of time.


Because there is no hedge against this kind of transaction, the risk associated with this technique is very high, and the amount of money at stake is extremely large due to the lack of downside protection. 

On the other hand, an investor may have a suitable portfolio in which the downside of one item will offset by the upside of other assets in order to hedge against the losses.

Market Change

The movement of the market and the indexes is usually due to high quantities of trading activity, and traders. As opposed to investors, have a significant role in changing the market values in this situation.


Traders have a preconceived notion of what is going to happen on the upside or the downside. They trade in accordance with this; they have many kinds of trading strategies like the Butterfly, Short sell, Long Straddle, Strangle, and many more. 

While an investor has a straightforward and vanilla approach to hold the asset while investing: keep the asset.


Because buying and selling transactions take place on a daily basis, returns in trading are both unpredictable and rapid. As a result, an investor must wait a long time before seeing a significant return.

Investing vs Trading in 2021 | Trading Time Horizon 

Investing vs Trading in 2021 - A clock illustration of Trading vs Investing Time Horizon
Time Horizon

Day trading requires a daily commitment of at least two hours, which is customary. 

The first hour after the United States’ stock markets are formally opened for business is usually considered to be one of the greatest periods to profit from big price movements. 

As New York’s lunchtime approaches, the stock market’s activity tends to slow down.

When trading full-time, your overall time commitment should be about 15 hours per week on the low end. And up to 40 hours per week on the high end (if you’re trading the most of the day). 

The busiest period for stocks, currencies, and futures in the United States market is around the time of the market’s opening each morning. 

Alternatively, global markets (particularly currencies and European equities) tend to be active in the hours leading up to the European open.

What Type of Investors should consider trading?

If you want to opt to trade, you’re far more concerned with the short term and less concerned with the company as an enterprise. You will almost certainly perform any or all of the following activities, for example:

  • You’re less concerned with whether or not the underlying company will succeed and more concerned with whether or not the stock will generate profits for you.
  • You want to know what other people think about a transaction because you aren’t just betting on a stock or a mutual fund; and you are also betting on the other individuals at the table.
  • You may look at short-term price fluctuations, even monitoring the charts by the minute. In order to forecast the optimum moment to buy or sell.
  • Share price movements influence your decisions rather than the fundamentals of a company.

Age retirement?

In order to be successful in early retirement, you must keep your costs as low as possible while still employed. 

After retirement, you may save a few thousand dollars on your season ticket and you won’t have to purchase another custom suit any time soon, but it’s unreasonable to expect to save a lot of money on energy costs.

If you are willing to take chances and trade on your own account, your money will go further. 

To be successful in trading, however, you must be realistic about your prospects of making a profit: can your approach truly survive outside the environment of a hedge fund or without the flow of orders that you see on the buy-side, for example? 

You might wind yourself duplicating all of the pressures of your day job for a lesser income; this is one of the reasons why my own trade is completely computer-controlled.

Investing Time Horizon

It is possible to invest for the long term (as well as do the study necessary for it) at any time, even if you work long hours in an office job. 

When you’re ready to invest in stocks, you may anticipate spending a few hours each month searching for companies that are consistent with your investment plan. 

Finding or developing an investing plan will require more time in the early stages of the process.

Some individuals prefer to be more active, devoting a few hours each week to research and other activities (especially if they have lots of capital and are looking for multiple opportunities).

Every few months, or maybe just when they are ready to make another purchase, an investor who prefers to “set and forget” may need to do some research or check on their assets.

What type of Investors is Investing Suited For?

Your concern about investing may stem from a lack of understanding of the market or from the intimidating nature of the first investment choices available in many mutual funds. 

If you want to start investing as soon as possible, it’s best to do so as soon as possible. However, there are a few things you should consider before you begin developing your investment portfolio.

The following people should start investing:

  • You are financially stable
  • You know where to invest wisely
  • Investment options are available to you
  • You are patient enough to adopt the “Invest and forget” strategy

What Are the type of Investments they can consider?

Following a year of decreased spending and a handful of stimulus cheques from the federal government, many Americans are sitting on a large pile of cash in their bank accounts. 

Moreover, although the reopening of the economy may result in increased spending on postponed holidays and other pastimes, many people will be searching for ways to put their newly discovered excess to work.

The stock market, as well as almost every other asset class, is flourishing right now, and it may be daunting to dip your toes into the investment waters if you haven’t done so before.

High-yield savings accounts

This may be one of the most straightforward methods to increase the return on your money above and above what you would receive from a traditional checking account. 

Customer access to their money is maintained through high-yield savings accounts, which are frequently opened through an online bank. 

High-yield savings accounts, which are often opened through an online bank, tend to pay higher interest rates on average than standard savings accounts, while still allowing customers regular access to their money.

The money you’re saving for purchase in the next couple of years, or money you’re simply hanging on to in case of an emergency, maybe put to good use in this account.

Certificates of deposit (CDs)

CDs are another option for earning extra interest in your savings. But they will need you to keep your money in the account for a longer period of time than a high-yield saving account. 

When purchasing a CD, you may choose from a variety of terms such as six months, one year, or even five years. However, you will usually be unable to retrieve your money before the CD expires without incurring a penalty.

If you buy one via a federally insured bank, you will be protected up to $250,000 per depositor, per ownership category, if you purchase one through a federally insured bank.

401(k) or another workplace retirement plan

This may be one of the most straightforward methods to get started in investing, and it comes with a number of significant benefits that might be beneficial to you both now and in the future. 

In most cases, your company will match a part of the amount you agree to set aside for retirement from your regular salary. If your company provides a match and you do not join in the plan, you are essentially turning away free money from your employer.

Contributions to a conventional 401(k) are made before being taxed. And the funds grow tax-free until the participant reaches retirement age. 

Some companies offer Roth 401(k) plans, which enable employees to make contributions after they have paid their taxes. If you choose this option, you will not be required to pay taxes on withdrawals made during your retirement.

Employee pension plans are excellent savings vehicles since they are automated after you have completed the necessary setup steps and enable you to make regular investments throughout your career. 

Target-date mutual funds, which manage their portfolios in accordance with a particular retirement date, are another option for you to consider. 

As you move closer to the goal date, the fund’s allocation will shift away from riskier assets to account for the fact that you will be investing for a shorter period of time in the future.

Mutual funds

Mutual funds provide investors with the option to participate in a diversified portfolio of stocks, bonds, and other assets that they may not be able to put together on their own otherwise.

Among the most popular mutual funds are those that follow indexes such as the S& P 500, which is made up of about 500 of the biggest corporations in the United States. 

Index funds often charge extremely low or no fees to the funds’ investors, and in certain cases, no costs are charged at all. 

Due to these low expenses, investors are able to retain a larger portion of the funds’ profits for themselves, which may be a fantastic method to accumulate wealth over time.


Unlike mutual funds, exchange-traded funds (ETFs) maintain a diversified portfolio of assets and are traded on a stock exchange throughout the day, much like a stock would. 

ETFs do not have the same minimum investment requirements as mutual funds, which are usually in the range of a few thousand dollars to several hundred thousand dollars. 

Investing in exchange-traded funds (ETFs) may be done for as little as the cost of one share plus any costs or charges connected with the transaction, but you can get started with even less if your broker enables you to buy in fractional shares.

Both exchange-traded funds (ETFs) and mutual funds (MFs) are excellent assets to own in tax-advantaged accounts such as 401(k)s and IRAs.

Individual stocks

Investing in individual businesses’ stock is the riskiest of the investing options mentioned here. But it may also be one of the most lucrative. 

Nonetheless, before you begin trading, you should evaluate if purchasing a stock is a good investment for you. 

Consider if you are investing for the long-term, which is usually at least five years. And whether you are familiar with the company in which you are making the investment. 

Stocks are valued every second of the trading day, and as a result, individuals who own individual stocks are often tempted to adopt a short-term trading mindset when they invest in them.

However, since a stock represents a portion of ownership in a genuine company. Your wealth will grow in tandem with the fortune of the underlying company in which you invested. 

If you don’t think you have the knowledge or the stomach to ride out a bear market with individual equities. You may want to explore the more diversified strategy provided by mutual funds or exchange-traded funds (ETFs).

Options Trading Excel Template – Free Downloads

Looking for free Options Trading Excel Templates, you have come to the right places. You will be able to easily download our proven Excel Template to help you with your options Trading. Options Trading Excel Template #1 : ATR Excel One of the most common question I get from traders I coach in my discord room is the following: How To Calculate The Strike Price of an Option ? ATR Template To Calculate The Strike Price Of an Option If …

Read More

Can You Paper Trade Options On Webull in 2022

Paper Trading Options is a great Way to build confidence in your strategies. Either you are a beginner options trader or a veteran who is testing to validate a brand new trading strategy, you will need options paper trading before going Live. In this discussion, we will show you the best place to paper trade Options as an alternative to Webull. Table of Contents Paper Trading Options on WebullIs Webull Paper Trading Worth It ?Why Is Paper Trading Options So …

Read More

How To Read Level 2 Market Data on Webull

Webull Level 2 Market data provides an intuitive view of the battle between buyers and sellers. In this tutorial, you will learn how to leverage Level 2 data from Webull to take your trading to the next level. Table of Contents What Is Level 2 Data On Webull ?How To Get Webull Level 2 Market DataHow Much Does Webull Level 2 Cost ?What To Look For In Webull Level 2 DataBuyers vs Sellers Orders Volume on Webull Level 2 Dynamic …

Read More

2022 SPY vs QQQ – Which Is Best For Options Traders

I have been trading SPY Options for more than 7 years. Then in May of 2021, something happened to QQQ Options that changed my mind from that point forward. Today I will be sharing my experience trading SPY vs QQQ Options so that you can learn from it in order to Take your Options Trading to the Next Level. Table of Contents SPY vs QQQ – The Popularity ContestWho Trades SPY and QQQWhich one HAs the Edge SPY or QQQ …

Read More

Is it worth Trading on Margin?

Is it worth Trading on Margin? – Easy Step by Step Guide

Trading stocks on margin entails borrowing money from a broker in order to make a transaction. But is it worth trading on Margin? Let’s find out.  A margin account improves purchasing power while also allowing investors to utilize someone else’s money to raise financial leverage by borrowing money from other investors.  Margin trading has a higher profit potential than regular trading, but it also carries a higher level of risk. Table of Contents Is It Worth Trading On Margin | …

Read More

Risks And Return

Investing vs Trading in 2021 - Which is best for you ? Trading or Investing ?
Investing vs Trading in 2021

When it comes to trading and investing, there is always a risk. The trick is to understand how much money you can earn in comparison to how much money you can lose.


You may be able to earn anything from 0.5 percent to 3 percent each day (on the high end). Even while this may not seem like much, it may amount to anywhere between 10 percent and 60 percent in profit each month.

When dealing with smaller accounts, higher return percentages may be achievable; nevertheless, as your account size rises, the likelihood of receiving a return of less than 10 percent each month increases.

If you engage in day trading, you will see your profits multiply fast. Suppose you start with $30,000 and earn 10% each month. 

At the end of the month, you will have $33,000 to start the following month. If you earn 10% again, you’ll have $36,300 in your account. If you earn 10 percent each month for a year, you will have almost $95,000 in your bank account.

Even if you have seven days of losses followed by seven days of wins. You may still end up with a loss overall.

How Much Do You Need TO Gain ?

However, if you’re losing 1 percent or 2 percent of your money each day. Your day trading account may begin to deteriorate very quickly. 

For example, if you lose 1 percent each day over the course of seven trading days. Your account might drop from $30,000 to $27,961.96—a loss of about 7 percent of your initial investment.

You would end up with $28,955,43 if you were to start gaining at a rate of.5 percent per day for the next seven trading days after that losing run. 

However, you would still be in the red. You’d need another seven days of profits of 1 percent or more to make up for your losses and generate further gains.

Stocks vs Options vs Crypto?

When it comes to trading, selecting between stocks, options and crypto is a hard call. So, here is what each of these choices is all about:


The long-term potential for growth (capital appreciation) in stocks is the highest among all investment options available. 

Strong, positive returns have often been earned by investors who are willing to hold onto their investments for extended periods of time, such as 15 years or more.

Stock prices, on the other hand, may go down as well as up. As a result, there is no assurance that the business whose stock you own will expand and prosper. And thus there is a risk of losing money if you invest in stocks.


It may be difficult to trade stock options, which can be even more difficult than stock trading. 

When you buy a stock, all you have to do is determine how many shares you want to purchase, and your broker will complete the order at the current market price or a limit price you have established for yourself. 

Options trading requires a thorough knowledge of sophisticated techniques and the process of establishing an options trading account. It entails a few more steps than the process of opening a traditional investing account.

The main reason why you must learn how to trade options even if it is not your primary source of investing is the very low barrier to entry.

US stocks are becoming more and more expensive.

However, through options trading, you do not need thousands of dollars to become an investors albeit a short term investor.

Check out Our recent return trading very cheap options for as low as $1.


In recent years, cryptocurrency has developed as an asset class that offers investors the opportunity to make significant returns on their investments. 

These assets, despite the fact that they are not back by the government, have gained enormous appeal in recent years. 

The prospect of making large profits in a short period of time has prompted investors to get on the cryptocurrency bandwagon in droves.


The long-term investor has always come out on top when the market has seen a fall in value. For longer periods of time, the Dow Jones Industrial Average spends more time rising than falling. Allowing for more gains than losses on an annual basis.

When it comes to investing, extensive time frames are necessary. And failure to hold an asset during a prolonged slump may result in losses. 

Anyone year may see results that are much greater or lower than 10%. (with negative returns occurring about one out of every four years). Some stocks may never be worth what you paid for them when you bought them.

What are some of the Tools to Start Investing?  [Is Automatic Investing an opportunity for you?

Even the most successful investors had to start out someplace, and that was at the beginning. 

Knowing where to begin and which route to follow, on the other hand, maybe difficult to discern. 

We’ve compiled a list of 3 tools to make the investing process a bit less difficult for individuals who are just getting started.

Personal Capital

Personal Capital is an excellent place to begin your research. The company provides a complete financial dashboard to assist you in evaluating your portfolio’s asset allocation. 

It also consolidates your bank accounts, credit cards, and loans into a single location. It allows you to manage everything from a single location.


Betterment is one of a growing number of algorithm-based “Robo-advisors” that make investing simple and affordable. 

Betterment’s website is simple to use, and it employs straightforward asset allocation strategies to distribute your money across a variety of low-cost exchange-traded funds (EFTs).


Wealthfront, like Betterment, is a Robo-advisor that simplifies and makes investing more accessible for individuals. 

It requires a $500 minimum deposit to establish an account, does not sell US government bonds, and provides its customers with access to a unique tax-loss harvesting tool known as the Wealthfront 500, among other things.

How to Limit Exposure to volatility?

When it comes to the markets, volatility often elicits a high level of caution. In fact, market volatility may be visible in both a good and a bad light depending on your perspective.

Low volatility indicates a more stable market (and, therefore, a more stable investment); nevertheless, it also indicates a longer period of time until the financial benefit realized. This is often the case when it comes to the stock market.

Large trading volumes help to improve the stability of the stock market and make it less susceptible to the moves of ‘big fish’ investors. 

Nonetheless, because of its ties to governments and businesses all around the world. The stock market is often influenced by geopolitical developments.

In contrast, cryptocurrency exchanges are more volatile than traditional stock markets. Given that this market is still in its infancy, its highs and lows are particularly prominent, making the cryptocurrency marketplace particularly susceptible to the trading moves of ‘whale’ traders. 

Whale traders are those who have a huge quantity of bitcoin in their possession. As a result, the whole market may be susceptible to the trading choices of individuals who have a significant amount of money involved. 

For example, when news broke that influential investor Elon Musk had invested $1.5 billion in Bitcoin in January 2021. The price of bitcoin surged by 17 percent to a new all-time high, setting a new record.

On the contrary, cryptocurrencies are independent of governments and other global institutions. They are – at least in part – immune to political influence.

What Should You DO: Trading or Investing

Investing vs Trading in 2021
Investing vs Trading in 2021

The discussion is usually clear that investing is a strategy that is more effective for the vast majority of individuals than other options. 

Is it possible for certain individuals to regularly outperform the market? Without a doubt, there is no question. However, for the majority of individuals, being an investor is preferable to being a trader. And it may require less time and effort as well.

Warren Buffett, the legendary investor, advises that investors routinely invest in index funds. Like an S&P 500 fund, and then hang on to those investments for decades. 

This strategy embodies the essence of being an investor. Which is to adopt a long-term perspective while allowing the companies to create profits for you.

Comparative Table

Although we have discussed everything above about the trading vs investing in 2021. However, to summarize all that discussion, here is a table based on capital gains, risks, investment period, and much more:

IntroductionRefers to buy and sell as per the price movementsRefers to buying and holding the securities for a certain period of time
Investment PeriodGenerally, in this type of activity, the investment is short-term, and there are quick entries and exits.While here, investment is for a long term and exit if far off from the entry point
Capital GainsThere are short-term capital gains and only associated with the upside in the security price.Long-term capital gains can be earned not only with the upside but also in the form of dividends and bonuses periodically.
Risk and methodologyThe risk is very high since it is a short-term investment.Risk is lower comparatively as the investment duration is long.
Types of securitiesOnly securities or stocks can be traded since there is quick entry and exit.Different types of assets can be invested in a portfolio like stocks, bonds, notes.
The intention of the investmentThe motive is to earn profits and exit the position.Value investment is made on the company’s functionality, banking on the company’s fundamentals.
Comparative Criteria of Investing vs. Trading


Trading may be a lucrative method to earn money on the stock market provided you have the necessary starting cash. As well as the time each day to execute the trades you want. 

There are certain prerequisites, though, including a strong desire to earn money on trades and an effective risk management plan.

Investing, like trading, has varying degrees of risk, although, for retail and novice investors. It is often less risky than day trading in general. 

If you have limited starting money and do not want to trade on a daily basis. Investing may be a better option for you than trading.

Top 7 Best Apps To Trade Stocks – 2021 Easy Review

Top 7 Best Apps To Trade Stocks

In this modern age, trading stocks is much easier than ever because of many different trading apps. To help you find the best one, we are going to review the top 7 best apps to trade stocks.

Go through all of the features including the fee and commission to select the best one according to your needs.


Top 7 Best Apps To Trade Stocks - WeBull Mobile App
Webull Mobile Application

Webull provides a one-of-a-kind community experience and simple-to-use trading tools that will appeal to the majority of youthful investors. It, however, lacks the trading instruments and functionality to compete with leaders of the market, which also provide $0 in stocks and ETF trades.

Who’s Webull for?

Webull is a self-directed investment and trading platform that appeals to intermediate and expert investors and traders. 

Short-term and active traders who want to save money on fees may take advantage of its commission-free structure, which is much less expensive than charges charged by other online brokers.

Despite the fact that the Webull platform’s intuitive features and style may look sophisticated for beginner traders, the platform is nevertheless easily understood. It also provides fractional shares to its clients, allowing even the smallest accounts to participate in the most expensive equities.


Desktop Platform Overview

The desktop platform Webull is the same as the online version. The flexible layout is easy to use due to its widget boxes drag and drop. You can modify it easily. 

It contains preset lists like Hot ETFs and important screener and screener capabilities. The fact that novice traders looking to get into the market could simulate a trading strategy using Webull’s online, desktop, and mobile applications. 

Web platform charting

Webull provides a standard line of charts comprising many different kinds of graphs, suitable drawing instruments, 50 technical indicators, capacity to add hotkeys, and grid designs, for comparing numerous charts. 

On the online platform, we found the charting to be clear and simple to use, and the desktop version was virtually similar.

Market replay

Users may watch time-lapse video replays of stock charts, which is a feature that is exclusive to Webull. 

A replay of the previous day’s price movement, although more instructive, provides traders with a unique viewpoint that cannot be obtained from any other broker.

Webull’s Commissions and Fees

Webull, like its major rivals, does not charge a commission on stock transactions in the United States, nor does it charge a fee to establish or maintain an account. 

Nonetheless, fees levied by the SEC and the FINRA are applicable.

SEC fees.

There is a $13 fee for a net of $1,000,000 in principal on stock transactions alone, with the $0.01 minimum charge per share.

FINRA fees

On only stock sales, the trading activity fee (TAF) of $0.000119 for each share will be chargable, with a minimum charge of $0.01 and a maximum charge of $5.95.


Top 7 Best Apps To Trade Stocks - E*Trade Mobile App
E*Trade Mobile App

E*TRADE was founded in 1982 and was one of the earliest online brokerages in the United States. Some of the company’s features include $0 transactions, two outstanding mobile applications, and the Power E*TRADE platform, which is ideal for newbies, active traders, along options trading.

Who E*TRADE Is For?

For more than a decade, E*TRADE has focused on engaged, active investors as well as high-net-worth individuals with a minimum investment of $100,000. Despite being a top 5 broker in several areas last year, especially in options and trading, E*TRADE’s standing among more active investors has been strengthened as a result of the fee reduction. 

The Power E*TRADE platforms are available on both desktop and mobile devices, providing the customers with powerful options analysis as well as strategy-building capabilities. 

E*TRADE has maintained a high ranking among the top online brokerages for beginners, owing to its extensive resources and user-friendly interface. E*TRADE, like other major online brokerage firms, offers plenty to offer investors of all experience levels.


Options trading

Power E*TRADE is a great choice for casual and active options traders since it provides the ideal combination of convenience, superior tools (screening through StrategySEEK, scanning through LiveAction), and smooth position management.

E*TRADE has done a great job of bringing new investors into the game by designing Power E*TRADE, which allows you to master options trading without breaking the bank. 


Power E*TRADE’s charting engine is provided by Chart IQ, a third-party supplier of HTML 5 charts highly rated by users. 

Panning and zooming are very fluid, and there include an inbuilt Trading Central (Recognia) technical analysis tool as well as 114 extra technical indicators and 32 sketching tools to choose from. 

Futures Trading

As with options trading, Power E*TRADE offers a fantastic experience when it comes to trading futures contracts. 

Multiple futures ladders may be run at the same time, orders can be sent out quickly and easily due to the Quick Trade widget, and maintaining positions is as simple as it is with options.


In order to participate in the $0-commission revolution, E*TRADE now charges no commission to trade stocks, ETFs, and the majority of mutual funds. 

Options contracts are priced at $0.65 per contract, which is the industry norm, but the price lowers to $0.50 per contract if you make more than 30 transactions each quarter. 

Futures contracts are priced at $1.50 per side, which is less expensive than TD Ameritrade, E*TRADE’s largest rival. Although E*TRADE offers lower margin rates than TD Ameritrade, they are still quite costly compared to Vanguard’s rates.


Top 7 Best Apps To Trade Stocks - eOption Mobile App
eOption Mobile App

eOption is quite clear about who it wants as a client and how it plans to fulfill their needs: options traders who know what they’re doing want to switch to their platform and save money on options transactions.

Long-term investors and novices will be turned off by this deep discount strategy, while active options traders will benefit from cheap fees and quick executions.

Who eOption Is For?

eOption is aimed at options and stock traders that participate in the markets on a regular basis and who are confident in implementing their options strategies, according to the company. 

The firm’s options costs are competitively priced, which appeals to traders who trade in large volumes. Just to put it another way, eOption doesn’t have many bells and whistles, although it will let you trade a large number of options for a cheap cost.


Paper trading

For investors who are new to trading (and particularly options trading), eOption offers an appealing feature: a free paper trading tool that is accessible to everyone, including those who are not customers of the company. 

This provides investors with $100,000 in virtual cash to utilize while they study and assess trading ideas, test methods, actively monitor the performance of a simulated portfolio, and establish a watch list – all without putting any real money at risk.

Low options contract fee

Many brokers no longer charge a basic commission on options transactions, requiring traders to pay just a per-contract fee, which is typically about $0.65 per contract on most exchanges. 

When you trade options with eOption, the cost is $1.99 plus a 10 cent per-contract charge. In other words, investors who regularly trade four or more contracts in a single transaction will come out on top when they do business with eOption.

Margin rates

Take notice, margin traders: eOption offers some of the most competitive margin rates accessible. At the end of 2020, account balances were based at 7.75% at a base of less than $25,000. If you have a balance of $250,000 or more, you may get as little as 4.75 percent interest.

eOption Commission Fees

  • Prices for options are $3.00 plus $0.10 per option. 
  • Listed stocks: $3.00 per share for market.
  • Stocks (foreign): $39 per share
  • Extended-hours stocks: $25.00 (plus $0.003 per share for each additional 5,000 shares).
  • Mutual funds are priced at $14.95 per share.
  • Bonds: $5.00 each bond for the first 25 bonds, $3.00 per bond for each subsequent bond
  • Orders placed with the assistance of a broker will be charged an extra $6.00.


Top 7 Best Apps To Trade Stocks - Robinhood Mobile App
Robinhood Mobile App

Despite the fact that all online brokers now provide $0 stock and ETF transactions, Robinhood’s lack of trading tools as well as research puts it at a disadvantage in comparison to the rest of the market.

Who Robinhood Is For?

Robinhood is best suited for first-time investors who want to trade in tiny amounts, such as fractional shares and cryptocurrencies, and who don’t want to spend much time doing research beyond looking at what other people are doing with their money. 

The general simplicity of Robinhood’s app and the website makes it incredibly simple to use, and the fact that it charges zero fees appeals to investors who are very cost-conscious and trade in tiny amounts. 

Having said that, the offers are very rare in terms of research and analysis, and there are significant concerns regarding the quality of the trade executions themselves.


Trading tools

Trading tools and features are limited compared to category leaders on Robinhood’s website. For instance, charts are essential, with just four accessible technical indications. 

In the meanwhile, TD Ameritrade provides more than 400, and TradeStation offers over 300. TD Ameritrade and Charles Schwab provide their own live broadcast with in-house specialists throughout the day.

Fractional shares

The greatest power of Robinhood found in its simplicity. For instance, its recurring investing feature allows you to invest a set dollar amount on a regular basis, such as once a week. 

Similarly, Robinhood will automatically reinvest any earned dividends on stocks or ETFs when you activate Dividend Reinvestment (DRIP) in your account, provided that its associated symbols promote a fractional share trade.

Commissions and Fees

How Robinhood makes money

It’s a free service for Facebook (FB). In order to avoid charging a membership charge, money is generated through gathering your user information and selling advertisements. In the case of Robinhood, it is also a free service. 

However, Robinhood will sell your order flow (the right to complete your transaction) to wholesale market makers instead of selling advertising. Robinhood is thus not really free. In the world of $0 trading today, almost all brokers except Fidelity have the same practice of taking money for order flows (PFOF).

Robinhood Gold

Robinhood Gold was a bad bargain in our tests. It costs $5 per month to receive Morningstar reports, streaming quotations for Level II, and margin trading (which charges 5 percent annual interest). 

Competent TD Ameritrade, E*TRADE, and Charles Schwab charge greater margin rates but provide much superior inventory research, commercial tools, client support, etc., for the same $0 per inventory market pricing.

Futu Moomoo

Top 7 Best Apps To Trade Stocks - Futu Moomoo Mobile App
Futu Moomoo Mobile App

Moomoo is another excellent Robinhood option. This is an excellent trading platform if you’re looking for clever trading in depth. It provides both novice and experienced traders outstanding trade tools and possibilities, including sophisticated charting, pre-and post-market trading, worldwide business, research and analysis tools, and most popular free Level 2 quotations.

Who is MooMoo for?

Moomoo has been developed as a smart trading platform, and investors may also benefit from cheap costs.

This mobile trading platform has effectively structured its sophisticated features in 1 app. For novices and seasoned traders, it is free and simple to use. A range of research tools may help you make intelligent investments. 

There is also a paper trading function with real-time data if the investing experience is to be simulated before all things are done.

When it’s convenient for you, Moomoo enables you to invest. You can start trading whether you travel or go home by synchronizing personalized settings on various devices. Moreover, no minimum deposit is available to establish an account.


Advanced charting

Moomoo offers personalized amazing graphical capabilities, including basic graphics like bars, hollow candles, full candles, lines, mountains, and sophisticated multigraphs with more than 50 technical indicators, including the VWAP that can even please day traders. All-time periods are available from 1 min, 5 min, to 1 year.

Smart orders

It offers access to advanced stock orders for pre and post-market trade, including stop-limit orderings and trailing stop-loss orders and up to 40 transactions simultaneously.

Longer trading hours

Moomoo does have the longest time to trade with rivals. You may hop back and forth once the news releases from 4 AM until 8 PM EST.

Commission Fees

Moomoo commission rates for your US, Singapore, and Hong Kong businesses are among the most competitive prices available. Moomoo charges, for example, just 0.03 percent of the transaction value for SGX equities and US$0.0049 for US stocks.

At a minimal commission charge of €0.99 for US inventory, HK$3 for HK inventory, and €0.99 for SG inventory, even lower than those of Tiger Brokers and Interactive Brokers (IBKR). 

A minimum price of US$1.99 for US stocks is charged for Tiger Brokers, whereas the IBKR charges at least US$1 for U.S. stocks and US$2.50 for Singapore stocks.

SoFi Automated Investing

Top 7 Best Apps To Trade Stocks - SoFi Mobile App
SoFi Mobile App

In terms of stock market brokerages, SoFi Invest is one of the top options for first-time investors. 

Even though SoFi’s app is less feature-rich than some of its larger competitors, this also makes it easier to browse and comprehend if you don’t have a lot of prior expertise in the financial markets.

Who is SoFi Automated Investing for?

SoFi Invest is the ideal option for first-time investors. Who are seeking a straightforward method to get start in the world of investing. 

SoFi does not need a minimum deposit to establish an account. So, even if you don’t have a lot of money to invest, you may get start with SoFi.

If you already have other SoFi accounts, SoFi Invest is a fantastic alternative to consider. This is due to the fact that SoFi makes it quite simple to transfer money between SoFi Money and SoFi Invest accounts.


Broad range of low-cost investments

SoFi clients can choose from ten different portfolios based on their risk tolerance and investment objectives. 

Each portfolio comes with a diversified selection of low-cost exchange-traded funds (ETFs). That provide exposure to U.S. stocks, developed international stocks, emerging markets, high-yield bonds, and Treasury bonds.

Budgeting and financial planning

SoFi is a standout in this category. All clients get unrestricted access to the financial advisors employed by the firm at no additional cost. 

A fiduciary standard, which requires them to act in their best interests, applies to these advisers. Who are Certified Financial Planners (CFPs) with the Series 65 certification (or comparable qualification). 

They are also noncommissioned advisers, which means that they do not get any compensation for recommending certain trades or activities.

Savings with a high rate of return

SoFi provides a high-interest savings account, similar to those offered by competitors Wealthfront and Betterment. 

SoFi Money is a checking and savings account that pays 0.25 percent interest yearly and is insured up to $1.5 million by the Federal Deposit Insurance Corporation (FDIC), which is six times more insurance than the average bank account. 

It also has no account fees and provides an unlimited refund for ATM costs each month, which is a rare find these days.

Fee and Commission

SoFi Invest makes much of the fact that it charges no yearly management fee. On the surface, this appears to be a highly attractive alternative to its competitors. 

In comparison, Vanguard Digital Advisor, a fully automated Robo, charges about 0.15 percent of assets under management. While the cheapest level of service on Ellevest is $12 per year, according to their website. 

In addition, those rivals either do not provide access to financial advisors or charge a premium for that service if they do.


Top 7 Best Apps To Trade Stocks - Fidelity Mobile App
Fidelity Mobile App

Fidelity Investments continues to grow and develop as a key player in the online brokerage industry. 

For the second year in a row, Fidelity’s brokerage service earned the top overall ranking in Best Online Brokers Awards. As the company has continued to improve important components of its platform. While simultaneously committed to decreasing the total cost of investing for clients.

Who is Fidelity for?

Fidelity, being one of the largest brokerage firms in the United States, geared to cater to the needs of the great majority of individual investors. 

When it comes to the ordinary buy-and-hold investor, Fidelity’s fully-rounded platform provides a large variety of tools. Moreover, research resources, and other resources, as well as a simple order entry process. 

Fidelity provides Active Trader Pro, a downloadable application that includes streaming real-time data. Moreover, a customized trading interface for more active investors and full-time traders. 

Despite the fact that Fidelity has comprehensively covered these two main areas. It is crucial to highlight that the company does not presently provide commodities or futures options.


Mutual Fund Evaluator

The Mutual Fund Evaluator investigates each fund’s features in great detail. Although it has a tendency to direct users to Fidelity funds, this is not surprising given the platform’s design.

Options Screeners

The scanners powered by LiveVol include some built-in scans. As well as the possibility to make a custom scan if that is what you like. 

If you use Active Trader Pro, you’ll have 26 predefined filters to discover options trading opportunities based on volume. Moreover, open interest, option contract volume (including volatility differentials), earnings (including dividends), and other factors. 

A total of about 200 different criteria used to construct bespoke displays for you.

Fixed Income Screeners

Using the bond screener, fixed-income investors may weed out the approximately 120,000 secondary market securities. Those are now accessible based on a number of criteria, and they can then construct a bond ladder. 

The yield table updates every 15 minutes and is based on real-time information. Although this scanner is versatile, the interface is not at all user-friendly.

Tools and Calculators

Fidelity provides a variety of tools and calculators to help you with anything from budgeting to evaluating your investing plan. 

The Tools and Calculators page displays them all at once. They allow you to choose from a lengthy list of around 40 options. 

One of the most important tools is a hypothetical trade tool. It illustrates the impact on your portfolio of a hypothetical buy or sells in the future.

Fee and Commission

In addition to zero trading charges and a variety of more than 3,400 no-transaction-fee mutual funds. 

Fidelity also provides superior research tools and a cutting-edge trading platform. The fact that it offers zero-fee index funds and has a stellar reputation for customer service is just frosting on the cake.

Top 7 Best Apps To Trade Stocks – Quick Summary

Knowing the best apps for trading stocks is not enough. We have reviewed each and every best trading app in detail above. However, to quickly summarize the main points of every trading app we have devised a table.

Please keep in mind that it is possible not every app allows you to trade in crypto. Moreover, the same goes for the stocks and options. So, here is a quick summary of our review and you can easily make your decision based on it.

NameCan Tade stocksCan Trade OptionsCan Trade CryptoCost per Option Contract
eOptionYesYesNo$1.99 + $0.10 per contract
Futu MoomooYesYesNo$0.65
SoFi InvestYesNoYesNo Options Traded
FidelityYesYesOnly Bitcoin$0.65
Summary of Best Trading Apps in 2021

The Bottom Line

Beginner investors should seek online trading Apps that are simple to use, have extensive instructional resources, and have top-notch customer service. Moreover, charge minimal fees, and require small minimum account balances, among other characteristics. 

In our Best Trading Apps for stocks review, we select E*Trade as the winner because of its user-friendly interface. Moreover, emphasis on online education, and comprehensive trading simulation capabilities.

How To Use Binance Trailing Stop?

If you are new to Binance trading App, the Binance Trailing Stop will help you protect gains to maximize your profits.

In this step by step tutorial, you will learn how to easily take advantage of this feature to help grow your trading account.

What is Binance Trailing Stop?

When the market swings, a trailing stop order enables traders to put a pre-determined order at a certain percentage distant from the current price.

Trading using trailing stop orders enables traders to place an order at a predetermined percentage away from the market price when the market moves in their favor. 

It assists traders in limiting their losses and preserving their profits when a transaction does not go in the direction that traders deem unfavorable at the time of the deal.

When the price advances in a favorable direction, the trailing stop moves by a predetermined percentage (called the Callback rate). 

By allowing a transaction to stay open and profitable for the duration of time that the price is going in the direction that traders want, it locks in profits. 

The following stop does not reverse direction and does not go backward. Whenever the market price changes in the other direction by a preset percentage (Callback rate), the trailing stop will close/exit the position at the current market price.

How To Use Binance Trailing Stop?

In reality, the trailing stop order feature is only available in the Futures part of the Binance platform.

Furthermore, you must take advantage of the updated version of the Website. However, trailing stop orders only supported by the most recent version of the trading interface.

If you are now seeing the Old Version, you must click on the icon labeled “New Website,” as shown in the illustration below.

How To Use Binance Trailing Stop - Binance Trading USer Interface
Binance Interface

How to Enable Trailing Stop Order?

As soon as you get to the New Website, you must place your cursor over the triangle next to “Stop Limit” and choose “Trailing Stop.”

How To Use Binance Trailing Stop - Select Trailing Stop on the Trading App
Select Trailing Stop

As you can see in the screenshot below, things have changed.

How To Use Binance Trailing Stop - Select Trailing Stop
After Selecting Trailing Stop

How Does Binance Trailing Stop Works?

Traders may put a trailing stop order when initiating a trade for the first time, but this is not the usual practice. 

The trailing stop order may also put as a reduce-only order with the goal of decreasing or closing an open position, as well as other things.

In the case of a LONG trade, a sell trailing stop order you should place the order above the point of entry into the trade. The trailing stop price rises by a trailing percentage point each time the trailing percentage point reached (Callback rate).

When the price begins to rise, a new trailing stop price will establish. When the price falls, the trailing stop becomes immobile and does not move anymore.

I show You how To Make Huge Profits In A Short Time With Cryptos!

If the price travels more than the preset callback rate from its peak price and hits the trailing stop price, a sell order will issue. The transaction will complete with the execution of the sell order at the current market price.

A “buy” trailing stop order is the inverse of a “sell” trailing stop order in terms of functionality.

In the case of a SHORT trade, a purchase trailing stop order will placed below the entry point of the transaction. The trailing stop price decreases by a percentage of the trailing percentage (Callback rate).

When the price begins to drop, a new following stop price will establish.

When the price rises, the trailing stop becomes inactive and stops moving.

If the price advances more than a specified callback rate from its lowest price and reaches the trailing stop price, a purchase order will issue. It will be necessary to close this transaction with a purchase order at market price.

How To Use Binance trailing Stop - A sell trailing stop order for a long trade
A sell trailing stop order for a long trade

Callback Rate

The extent to which a trailing stop price will lag the price is determined by the callback rate. The “Callback Rate” box allows you to manually enter a rate in the range of 0.1 percent to 5 percent. The rate range is accessible from 0.1 percent to 5 percent. 

Alternatively, fast choices such as “1 percent” and “2 percent” are accessible for choosing in a short amount of time.

Activation Price

Market participants have the option of filling in the price level that activates the trailing stop. 

If no activation price is available, the market price will use as the default activation price (which may be either the “Last Price” or the “Mark Price” depending on the trigger type selected).

For a purchase trailing stop order (SHORT POSITION) to be successful, it must be placed with an activation price that is less than the current market price.

In order to satisfy the requirement, the market’s lowest price must hit the activation price at the same time. Unless the price falls below the Activation Price, the Trailing stop order will not activate and will not function.

I show You how To Make Huge Profits In A Short Time With Cryptos!

In contrast (LONG POSITION), in order to place a sell trailing order, the activation price must be greater than the current market price at the time of the order.

In order to satisfy the requirement, the highest price on the market must be more than the activation price. If the price does not rise over the Activation Price. The Trailing stop order will not activate and will remain inactive.

It is necessary to utilize the activation price in order to begin trailing stop loss/take profit only when a price condition is reliable.

In order to safeguard your trade in the event that the trailing stop loss does not satisfy your Activation price condition. If you place an Activation price order, you will almost certainly need to put a Stop loss order as well.

Reduce only-trigger

It is usually self-evident that the trailing stop loss happens to reduce or close your trade. Rather than to create a new position when you utilize it. As a result, in the Advanced section, you must enable the flag “decrease only-trigger.”

In my opinion, it might be helpful as a default flag, but in reality, it is not!

Advanced features include the reduce-only trigger flag as well as the kind of trigger (Last Price and Mark Price)

How To Use Binance Trailing Stop - Advanced: reduce-only trigger flag and type of trigger (Last Price and Mark Price)
Advanced: reduce-only trigger flag and type of trigger (Last Price and Mark Price)

The type of trigger

For the trigger, traders may choose between the “Last Price” (the default) or the “Mark Price” option. 

If traders choose “Mark Price” as a trigger, the trailing stop will triggered when the Mark Price reaches or exceeds the activation price. Even if the Last Price does not reach the activation price at that time.

Please keep in mind that Binance utilizes the Mark Price as a trigger for liquidation. As well as a metric for calculating unrealized profit and loss. 

The Mark Price is usually just a few cents more than the Last Price at the time of purchase. During periods of severe price fluctuation, the Last Price. On the other hand, may vary substantially and significantly from the Mark Price. 

As a result, please keep an eye on the price difference between the Last Price and the Mark Price. If you would want to alter the Trigger from Mark Price to Last Price or vice versa. You may always cancel the order you have made and make a new order to replace it.

Conditions Associated with Trailing Stop

Please keep in mind that there are two criteria for the activation of the trailing stop order. Which are the activation price and the callback rate. 

Both of these conditions must meet in order for the trailing stop order to activated and issued as a market order to close or exit the position.

A sell trailing stop order (LONG TRADE) will be placed if the conditions are met as follows:

  • Activation Price <= Highest Price and
  • Rebound Rate >= Callback Rate

A buy trailing stop order (SHORT TRADE) will be placed if the conditions are met as follows:

  • Activation Price >= Lowest Price and
  • Rebound Rate >= Callback Rate

How Trailing Stop Differs From Trailing Loss Order?

Using a stop-loss order to assist minimize losses, while using a trailing stop order to lock in profits while also limiting losses is beneficial.

However, unlike trailing stop orders, which are more flexible and follow the direction of the market automatically. Stop-loss orders are fixed and must be manually adjusted.

How to Use Binance Trailing Stop – Pro-Tip

Calculating the optimum callback rate and activation price may be challenging.

To be successful, a trailing stop should have a callback rate that is neither too low nor too high and an activation price that is neither too near nor too far away from the current price. 

I show You how To Make Huge Profits In A Short Time With Cryptos!

When the callback rate is set too low or the activation price is set too near to the entry price. The trailing stop gets too close to the entry price and easily trigger by typical daily market fluctuations. 

There is no space for a transaction to swing in a trader’s favor prior to any significant price movement. The transaction will close/exit at a time when the market has had a brief drop. And subsequently rebounded, resulting in a loss.

So, this was all about how to use Binance Trailing Stop. If you have anything in mind relating to Binance Trailing Stop, feel free to share with all of us.

Is Betterment Investing Worth It in 2021 ?

What Is Betterment Investing

Wondering about what is Betterment Investing? You have come to the perfect place.

Betterment is one of the pioneer Robot advisors, having begun in 2008 with an aim to make investing less expensive and difficult for everyone. 

Betterment has been one of the most popular robot-advisor platforms for more than a decade, competing directly with Wealthfront, one of a rising number of automated investment alternatives.

Betterment Investing – Quick Summary

Betterment being one of the best Robot-advisors has a lot of benefits, and features. Let’s take a look at some of the distinguishing aspects of Betterment in the table below:

Minimum Investment$0
FeesDigital – 0.25%/year; Premium – 0.40%/year
Accounts• Taxable
• Joint
• Traditional IRA
• Roth IRA
• Rollover IRA
• Trusts
• Non-Profit
• 401(k) Guidance
401(k) Assistance
Tax Loss Harvesting
Portfolio Rebalancing
Automatic Deposits✔ Weekly, Biweekly and Monthly
AdviceHuman Assisted
Socially Responsible
Fractional Shares
Customer ServiceMonday to Friday from 9:00 am-6:00 pm (ET)
Betterment Investing Features and Amenities

Who Should Use Betterment?

If you want to start serious about saving for anything substantial, such as a home down payment, student fund, or your own retirement, Betterment is an excellent choice of the automated investment adviser. 

A portfolio of low-cost exchange-traded funds (ETFs) and mutual funds is designed by Betterment’s algorithms to fit your risk tolerance and particular objectives. 

Betterment, in contrast to Wealthfront, does not need a minimum initial investment to get start with the platform.

There are two levels of Betterment service accessible to clients with balances greater than $100,000: Betterment Digital and Betterment Premium, both of which offered as an option for consumers with balances greater than $100,000. 

Annual management fees charged by Betterment Digital and Betterment Premium are 0.25 percent and 0.40 percent, respectively. Betterment’s team of financial advisors will provide you with limitless, complimentary services if you choose to upgrade to a higher service tier.

In addition to selecting the appropriate investment portfolio for each of your goals, setting up an account is quite easy. Improve your investment performance with financial advice from a financial professional. 

Betterment Digital users may purchase a 45-minute coaching session with a financial professional for $199, while Betterment Premium customers receive financial advice at no additional cost.

How Does Betterment Work?

Who should use betterment investing - What Is Betterment Investing
Betterment Investing App

You begin by providing Betterment with some basic personal information, such as your age, salary, and Social Security number. 

Then you choose one or more financial objectives, such as putting money aside for an emergency fund, long-term investing in a taxable account, or saving for retirement in an IRA (IRA). Traditional IRAs, Roth IRAs, and SEP IRAs are all options for you.

After linking your external bank account to the platform, you may fund your account by setting up one-time or regular deposits.

Betterment offers you a menu of tailored investment portfolios for each aim once you have entered your personal information and selected your objectives. 

Improvement Portfolio” is the name to the default portfolio, which consists of exchange-traded funds (ETFs) representing around a dozen asset types.

Investing in socially responsible investments is available in six different portfolios (SRI). According to the type of objective you are saving for, the composition of each fund will vary. 

If you’re seeking to save for retirement, Betterment will typically recommend that you invest in more equities. Bonds would make up the majority of your portfolio if your objective is to invest your emergency money.

Betterment’s Approach to Investing Your Money

How Betterment Invest your money - What Is Betterment Investing
Betterment Dashboard

As part of its investment portfolio diversification strategy, Betterment utilizes a plethora of low-cost exchange-traded funds (ETFs) that track established indexes. 

However, depending on your profile and objectives, you may allocate to as many as 12 asset classes, depending on your situation.

According to your objectives, the exact asset allocation you receive, or the percentage of your portfolio that goes into each fund, defined by your assets allocation. 

In the case of an emergency fund portfolio, which contains money that needed in the event of unexpected financial troubles, equities account for around 15% of the portfolio and bonds account for 85%. 

For a 35-year-old investor, a general investing fund comprises 90 percent equities. This is money that will not be needed for a long time.

The risk tolerance of some rival Robo-advisors is determined by a series of questions you answer. Betterment creates the basic Betterment Portfolio, which is the default pick for the average investor based on your age, income, and investment objectives. 

The majority of their money will direct toward equities, with the allocation divided across asset classes such as large-cap U.S. stocks, large foreign companies, and so on, for that 35-year-old.

In addition to the Betterment Portfolio, the platform distinguishes itself from other Robo-advisors by providing you with a variety of bespoke portfolio alternatives to pick from:

Socially Responsible Investing

Environmental, social, and governance (ESG) aspects are screened out of companies when investing in Betterment’s SRI option, which invests in ETFs using benchmarks that screen out companies that are not ESG.

Goldman Sachs Smart Beta

To aim to achieve outsized returns while keeping expenses down, this portfolio employs various diversification methods in an attempt to do so.

BlackRock Target Income

A well-diversified bond fund for investors who wish to produce a consistent source of income over the long term.

Flexible Portfolio

The asset class weightings given to you in the default Betterment Portfolio can be customized using this option.

While the Betterment Portfolio is mostly comprised of low-cost Vanguard and BlackRock iShare offerings, the Socially Responsible, Smart Beta, and Target Income portfolios all employ ETFs with greater expense ratios than the default Betterment Portfolio.

In addition, you may link additional accounts, such as your 401(k) or outside IRA, and Betterment will estimate how close you are to meeting your retirement objectives.

Key terms of Betterment You Need to Know


Betterment is a Robo-advisor, referred to as an automated investment service or an online adviser in some circles. 

Robo-advisors, who utilize computer algorithms and smart software to design and manage your investment portfolio, is far less expensive than hiring a human, are a financial advisor to meet with you in person.

Fractional Share

Investors can acquire stock or other assets based on a dollar amount they choose rather than the price of a complete share when they purchase fractional shares of stock or other investments. 

This may be especially helpful for investors who are dealing with a small amount of money. But who want to construct a portfolio that is highly diversified. Betterment purchases fractional shares, ensuring that there is no cash available in your portfolio.

Tax-loss Harvesting

Investing in tax-loss harvesting is a technique that can help you minimize your capital gains taxes considerably. 

It is common practice in taxable accounts to sell failing assets in order to offset the profits from winning investments. 

Betterment offers tax-loss harvesting, but it does not offer stock-level tax-loss harvesting (also known as direct indexing), offered at Wealthfront and Personal Capital, among others. 

Some investors may be able to save even more money on taxes by using direct indexing.

Expense ratio

An expense ratio is a fee imposed by mutual funds, index funds, and exchange-traded funds (ETFs) that is calculated as a percentage of your investment in the fund. 

For example, if you invest in a mutual fund with a 1 percent cost ratio. You will have to pay the fund $10 each year for every $1,000 you have invested. 

These costs, if they are excessive, can have a substantial impact on the performance of your portfolio. But the expense ratios of the funds utilized in Betterment portfolios are modest.

The expense percentages are payable in addition to the management fee that Betterment charges.

Fees and Expenses Associated with Betterment

Customers who simply use digital services pay 0.25 percent in management fees per year. With the price increasing to 0.40 percent per year if they subscribe to the premium plan. 

The digital charge for Betterment assets above $2 million may reduce to 0.15 percent per year. Specifically, on the part of the balance that exceeds $2 million. 

You will have to pay 0.30 percent of the sum over $2 million if you choose the premium plan. The underlying ETFs are subject to annual management fees ranging from 0.07 percent to 0.15 percent.

Even though you may use Betterment’s financial planning and account consolidation features without paying a fee. You can shift a portion of your funds into an investment account on a regular basis.

There are no costs relating to canceling an account, sending a cheque, or sending a transfer.

  • The Monthly cost to manage a $5,000 portfolio: $1.04 ($1.67 for Premium)
  • Monthly cost to manage a $25,000 portfolio: $5.21 ($8.33 for Premium)
  • Monthly cost to manage a $100,000 portfolio: $20.83 ($33.33 for Premium)

How to Cancel Betterment Subscription?

In order to close your Betterment account, follow these instructions:

  • Log in from a web browser
  • Select “Settings”
  • Tap on “Accounts”
  • Click on the three dots to the right of the specific investment account(s) you wish to close.


  • Account creation is quick and simple.
  • Portfolios are completely transparent before funded.
  • It is possible to link external accounts to individual goals.
  • You may create a new goal at any moment and keep track of your progress with relative simplicity.
  • Change the risk level of your portfolio or move to a different type of portfolio with relative ease.
  • A two-way sweep is available through the checking and cash reserve functions.


  • Planners are continually persuaded to finance a Betterment account.
  • The basic package charges $199–299 for financial planning.
  • Socially responsible portfolios use ETFs (ETFs).
  • No margin lending, secured loans, or portfolio borrowing alternatives.


It is possible to utilize Betterment in a variety of ways. You may sync all of your financial accounts to obtain an overall view of your assets without investing. You can invest in one of their portfolios, or you can construct a Flexible Portfolio. Based on some of your own criteria. 

When it comes to taxable accounts, the goal is to optimize after-tax returns through the use of tax-loss harvesting. Moreover, portfolios may rebalance as needed. 

Betterment is primarily a goal-oriented platform. Moreover, users have access to a wide range of planning tools as well as a plethora of knowledge and guidance.

10 Best Cheap SPACs to Buy in 2021 – Easy Guide


Many investors have shied away from SPACs in the past, believing them to be excessively risky. To explain the risk, benefits, and reliability of SPACs, we will discuss the 10 Best Cheap SPACs to Buy in 2021.

Moving forward, first, we’ll take a look at what is SPACs, and how they can be beneficial for investors.

What is SPAC?

A special purpose acquisition company (SPAC) is a corporation with no commercial activities, created only for the purpose of raising funds through an initial public offering (IPO) for the purpose of purchasing an existing corporation. 

SPACs, often known as “blank check companies,” have been in existence for several decades. 

In recent years, they’ve gained in popularity, drawing high-profile underwriters and investors, and raising a record amount of money through initial public offerings (IPOs) in 2019. 

Over 50 SPACs established in the United States so far in 2020, with a total raised of $21.5 billion as of the beginning of August.

What Makes SPAC Popular?

SPACs are often created by investors or sponsors that have specific knowledge or experience in a certain industry or business sector, with the goal of pursuing transactions in that industry or business sector. 

If the founders of a SPAC have at least one acquisition target in mind when forming the company, they may choose not to disclose that target throughout the IPO process in order to avoid lengthy disclosures during the process. 

(This is why they referred to as “blank check businesses,” because IPO investors have no clue which firm they will be investing in at the end of the process.) Before issuing shares to the general public, SPACs look for underwriters and institutional investors.

The money that SPACs raise through an initial public offering (IPO) is deposited in an interest-bearing trust account. These funds may use to complete an acquisition or to refund the money to investors if the SPAC gets liquid. 

They cannot be used for any other purpose. A SPAC typically has two years to execute a transaction or else it will be forced to liquidate.

In some circumstances, a portion of the interest produced by the trust might be utilized to supplement the operating capital of the SPAC. The stock of a SPAC is typically listed on one of the main stock markets following the purchase of the company.

How Do SPACs are Beneficial for Investors?

10 Best Cheap SPACS to Buy in 2021 - How Do SPACs are Beneficial for Investors?
Benefits of SPACs
  • Produces greater results than the typical initial public offering (IPO)
  • It comes with a predetermined time limit attached to it.
  • It allows for a more favorable pricing structure inactive structures, allowing the target company’s sponsors to raise funds on more favorable terms, distinguishing itself from standard initial public offerings (IPOs).
  • When a company goes public, it expedites the process of becoming publicly traded.
  • To raise valuations and funds.
  • It allows you greater control over the terms of the transaction.
  • SPAC is subject to less regulatory monitoring.
  • SPAC makes it possible for high leverage companies to go public, which would otherwise be impossible with an IPO.

Downsides of SPACs

It is found that the target coup’s value has been considerably reduced since the SPAC structure is less hazardous for the business trying to go public, which makes it riskier for SPAC itself because they are paid with larger discounts than they should be.

According to the definition of a blank check company, the investors are simply providing funds with no knowledge of which company would be the target for the money they have invested in.

If the company attempts not to meet the expectations of the investors and as a result, the investors decide to withdraw their money, there may be a conflict of interest.

The fees and charges included in SPAC entail underwriter’s fees as well as additional costs, which may be more than the amount paid to investment bankers in an initial public offering. 

The target company’s operations are subject to less scrutiny than they would otherwise be.

Risks Associated with SPACs

Those that combine with SPAC and go public expose to less scrutiny than companies that go through the standard initial public offering (IPO) procedure. 

When it comes to attracting investors and raising cash, there is always the potential of misrepresenting investment opportunities.

Sponsors of special purpose acquisition companies (SPACs) might profit from an acquisition even if the investors are unsuccessful in their endeavors. 

Conflicts of interest and fraud are major risks in this situation, which can arise from the misappropriation of funds as a result of misrepresentation or omission of the company’s prospects.

SPACs are subject to market fluctuations, which can be dangerous because investors do not view these fluctuations as a benefit to the investment

For example, a unit of the SPAC with a price of 10$ may fluctuate, and investors may be hesitant to purchase at a higher price if the price of the unit rises.

10 Best Cheap SPACs to Buy in 2021

The following are the 10 best cheap SPACs you can buy in 2021:

SPACsDate of IPOPrice
Altitude Acquisition CorporationDecember 2020$9.79
RedBall Acquisition CorporationAugust 2020$9.78
Lefteris Acquisition CorporationOctober 2020$9.79
Dune Acquisition CorporationDecember 2020$9.77
Burgundy Technology Acquisition CorporationOctober 2020$9.89
Soaring Eagle Acquisition UnitsMarch 2020$9.97
Rush Street Interactive (RSI)December 2020$14.88
Canoo Inc. (GOEV)August 2020$7.21
Clever Leaves CLVRDecember 2020$9.26
Rodgers Silicon Valley Acquisition (RSVA)December 2020$15.67
Top 10 Cheap SPACs in 2021

Altitude Acquisition Corporation (NASDAQ: ALTU)

Altitude Acquisition Corp. (NASDAQ: ALTU) is a special purpose acquisition company based in Georgia that conducts business internationally. 

The company went public in December 2020, and it was able to generate over $300 million in its first public offering, according to the company. 

It focuses on mergers and acquisitions with companies in the tourism and technology industries. Gary Teplis serves as the company’s chief executive officer.

NASDAQ: ALTU) has a market value of more than $366 million, making it the largest company in the world. The stock’s 52-week price range is $9.6 to $14.4, with a midpoint of $9.6. The company is still on the lookout for a merger opportunity.

RedBall Acquisition Corporation (NYSE: RBAC)

RedBall Acquisition Corp. (NYSE: RBAC) is a special purpose acquisition company located in New York with a focus on acquisitions of businesses.T

his year, the corporation went public in August, earning more than $575 million in its first public offering. 

The business primarily focuses on mergers and acquisitions involving firms in the sports, media, and data analytics industries in the United States of America.

RedBall Acquisition Corp. (NYSE: RBAC) is a publicly-traded company with a market value of more than $704 million. Alec Scheiner is the company’s chief executive officer. 

The price range of the company’s shares over the past 52 weeks has been between $9.7 and $12.4. The stock has an average daily trading volume of 220,868 shares. The special purpose company is still looking for a contract to combine with another company.

Lefteris Acquisition Corporation (NASDAQ: LFTR)

Lefteris Acquisition Corp. (NASDAQ: LFTR) is a special purpose acquisition company based in Boston that acquires businesses for a variety of purposes. 

In addition to initial public offerings in the financial technology industry, the business also provides advisory services. 

It went public in October 2020 and raised more than $207 million in the first public offering of the company. Karl Roessner is the company’s chief executive officer.

Lefteris Acquisition Corp. (NASDAQ: LFTR) is continuing on the lookout for a suitable merger partner. The stock’s price has fluctuated between $9.6 and $12.4 during the past 52 weeks. 

The stock has an average daily trading volume of 66,452. Morgan Stanley has the left-hand position on the special purpose company. The firm has a market value of $252 million, according to the latest available data.

Dune Acquisition Corporation (NASDAQ: DUNE)

Dune Acquisition Corporation - 10 Best Cheap SPACs to Buy in 2021
Dune Acquisition Corporation’s Logo

A special purpose acquisition business based in Florida, Dune Acquisition Corporation (NASDAQ: DUNE) is a special purpose acquisition company. 

A merger with another company in the software as a service industry is something the company is looking to do in the future. 

It went public in December 2020 and raised more than $172 million in the initial public offering (IPO) that month. Carter Glatt is the company’s chief executive officer.

A merger was sought by Dune Acquisition Corporation (NASDAQ: DUNE) in order to enable the company’s first public offering. 

The stock’s 52-week price range is between $9.5 and $10.2, and it is now trading at $9.5. It has a monthly average volume of 35,153 copies printed. 

With a market value of $131 million, the company is reliable. At Cantor Fitzgerald, the left-leaning partner is in charge.

Burgundy Technology Acquisition Corporation (NASDAQ: BTAQ)

Burgundy Technology Acquisition Corporation (NASDAQ: BTAQ) is a Cayman Islands-based special purpose acquisition corporation with headquarters in New York City. 

This year, in August 2020, the firm went public and raised more than $345 million in its first public offering (IPO). It seeks to combine with companies operating in the technology industry that headquartered in Europe, the United States, or Israel. 

It has a market value of around $436 million at the time of writing. Leo Apotheker serves as the company’s chief executive officer.

Burgundy Technology Acquisition Corporation (NASDAQ: BTAQ) is still on the lookout for a strategic partner to combine with. 

Its 52-week price range is $9.6 to $11.9, with a low of $9.6 and a high of $11.9. It has an average volume of 209,441 units each month. 

The corporation is actively watching the development of cryptocurrency companies, and it may seek to combine with one of them in the next weeks and months.

Soaring Eagle Acquisition Units (SRNGU)

Soaring Eagle Acquisition Units - 10 Best Cheap SPACs to Buy in 2021
Soaring Eagle Acquisition’s Logo

Because of its impressive track record, Soaring Eagle Acquisition Corp Units is ranked first. These units allow the bearer to one share as well as one-fifth of a warrant to purchase additional shares at $11.50 per unit. 

However, while the modest warrant ratio is less attractive than many we saw last year, this team has successfully introduced both DraftKings (DKNG). 

Report to the public through prior SPACs. Those have been two of the most successful SPACs in terms of overall performance. 

They also demonstrated a great ability to identify promising brands in the online gaming and sportsbook market. Which is likely to stay profitable for the foreseeable future. 

Given the fact that DraftKings and Skillz have both recently entered the market, it may take some time for them to identify their next acquisition, but this is one situation in which SPAC investors should exercise patience.

Rush Street Interactive (RSI)

The financial results released by Rush Street Interactive earlier this month demonstrated that this company is a legitimate contender in the online gaming industry. 

The fact that investors are concentrating their efforts on Penn National (PENN) – Get Penn National Gaming, Inc. Report and DraftKings, as well as the heritage casinos, indicates that this industry will produce several winners.

RSI reported a loss of one cent per share but given that Wall Street had expected a loss of $0.32. This is a significant improvement in the bottom line. 

The company’s revenue of $100 million is also above analyst expectations of $94.37 million. This indicates a 260 percent increase in revenue over the previous year. 

Although the company is still investing in customer acquisition, real money monthly active users (MAUs) have increased by 116 percent year over year. And by 22 percent sequentially, with RSI ranking as the number-one online casino in the United States. Based on gross gaming revenue in the most recently completed quarter. 

And, with $225 million in cash on hand, the company is well-positioned to continue advertising and promotions, which will help to develop their brand and solidify their users’ relationships. 

RSI forecast revenues of $440 million in 2021, compared to forecasts of $372 million. This represents sustained robust growth of 58 percent for the whole year, according to the company.

Canoo Inc. (GOEV)

Canoo Inc - 10 Best Cheap SPACs to Buy in 2021
Canoo Inc Logo

Canoo unveiled its all-electric pickup truck earlier this month, and although some people praised the design, others were less enthusiastic. Consider myself interested, because I believe it will attract a large number of consumers.

The company sells electric vehicles that are modular and purpose-built. It pioneered the development of the flattest and lowest-profile skateboard in the history of the sport. Because that is exactly what it is, think of it as a chassis. 

The fundamental methodology provides for a wide range of application flexibility as well as rapid time to market. Hyundai has previously entered into an agreement with Canoo to collaborate on the development of an electric vehicle platform. 

A new vehicle may get in as little as 18-24 months, rather than the traditional 3-5 years, according to the company’s website.

Canoo now earns money through the provision of engineering services. It expects revenue from this area of the business to reach $150 million in 2021, and $450 million by 2024, according to the company. 

It will launch its B2C platform in 2022, which expects to generate an additional $1.2 billion in sales by 2025, or a compound annual growth rate of 147 percent. 

Management estimates that the B2B platform will be available in the market by 2023, with revenue for this segment of the business reaching $700 million by 2025.

Clever Leaves CLVR

Clever Leaves, a vertically integrated cannabis company with operations in Colombia and, shortly, Portugal. 

The company provides low-cost GMP-certified pharma quality cannabis through its operations in Colombia and, soon, Portugal. 

Over the last several years, we’ve spoken with Village Farms (VFF – Get Village Farms International, Inc. Report management about these locations, and they’ve explicitly pointed out the difficulties that many cannabis players have had in entering into them.

Clever is not a licensed producer in Canada or a multi-state operator in the United States; rather, it is an MNO (multi-national operator). 

It has 1.8 million square feet of growing space in Colombia, and it is the only business in the region that has been certified according to Good Manufacturing Practices (GMP). As a result, it has risen to become the leading licensed producer in Latin America.

Rodgers Silicon Valley Acquisition (RSVA)

Rodgers Silicon Valley Acquisition, which included the acquisition of Enovix, may have ushered in a new era of powerful SPACs acquiring a business in a hot area. The PIPE priced at $14, despite the fact that the SPAC’s offering at $10.

Enovix is a company that designs and manufactures lithium-ion batteries. Enovix’s presentation on establishing a plan for future electric car battery manufacturing was indeed interesting. 

But it would be a mistake to ignore the computer industries that the company now serves with its patented 3D cell architecture, which it already supplies to. 

Enovix also involved in wearable technology, personal computers, augmented reality, virtual reality, and mobile communications, to name a few areas. 

As a whole, this company is much more than just electric vehicles, and investors should take heed of this.


In this comprehensive review, we had an insightful overview of the 10 best cheap SPACs to buy in 2021. Moreover, we have discussed what are the advantages and disadvantages of investing in SPACs.

Make sure you read all the risks associated with SPACs before making your investment.

Differences Between Stocks and Bonds – Which One To Choose?

Differences Between Stocks and Bonds

Are there really any differences between stocks and bonds? What is the most advantageous investment, if any? 

Those are the kinds of things that first-time investors contemplate on a regular basis. In order to better understand how these investment possibilities differ from one another, let’s take a closer look at each one individually.

When it comes to investment, stocks and bonds are frequently discussed in the same sentence. 

However, there are significant differences between them in terms of risk, reward potential, and how you get them. That is why it is so critical to conduct thorough research before putting your hard-earned money at risk.

What’s a Stock?

Stocks are “share of ownership in a company” from the standpoints of investment and financial planning. Other words that are frequently used interchangeably with the word stock are the terms “share” and “equity,” among others.

Regardless of the terminology used, holding stock indicates that you own a portion of a company, and the value of your shares increases as the company rises in importance. Actually, it isn’t quite the case, at least not technically speaking.

You are not a shareholder in the corporation itself. Instead, you become the owner of one unit’s worth of that company’s assets (earnings). So why would a corporation want to sell you shares in the first place?

The reasons why a company decides to raise cash by selling shares of ownership in their company will differ from one another. However, in general, corporations utilize stock sales as a means of raising operating money to fund their operations.

It will be your responsibility to conduct due diligence before making a decision on which stocks to acquire in order to ensure that you are comfortable contributing financing to a certain business. But, once you’ve decided which stocks to invest in, where do you go to actually purchase them?

To be sure, you can’t just walk up to Company A, knock on their door, and ask to purchase a single unit of their stock. So, where can you get your hands on some stock?

The NYSE (New York Stock Exchange), the NASDAQ (National Association of Securities Dealers Automated Quotations), and the AMEX (American Stock Exchange) are examples of public stock exchanges that you may already be acquainted with (American Stock Exchange). There are a total of 13 such stock exchanges in the United States.

Top 10 NASDAQ Stocks

One of the biggest sectors of the US economy is the tech industry.

The company that comprise the main Exchange Traded Fund (ETF) for this sector have been driving the overall market over the last 10 years at least.

As of this writing, here is the table with these leading companies.

Each with their respective weighting into the NASDAQ index.

1Apple Inc.AAPL11.3%150.09-0.31%
2Microsoft Corp.MSFT10.4%303.230.61 Inc.AMZN7.4%3,310.004.22
4Alphabet Inc.GOOG4.1%2,853.965.99
5Facebook Inc.FB3.9%365.840.33
6Alphabet Inc.GOOGL3.8%2,829.354.12
7Tesla Inc.TSLA3.8%707.32-1.17
8NVIDIA Corp.NVDA3.7%217.37-0.56
9Paypal Holdings Inc.PYPL2.2%279.930.42
10Adobe Inc.ADBE2.1%659.842.60
Nasdaq Top 10 Holdings and Their Weight

Analysis of Top 10 NASDAQ Stocks Over 10 Years

The gain and amount presented in the table below for each stock are based on the $1000 if you invested them 10 years ago.

No.StockSymbolAmount in $% Gain
1Apple Inc.AAPL$11,628.191,062.82%
2Microsoft Corp.MSFT$12,153.411,115.34% Inc.AMZN$17,957.701,695.77%
4Alphabet Inc.GOOG$9,024.40802.44%
5Facebook Inc.FB$11,122.211012.22%
6Alphabet Inc.GOOGL$11,055.161,005.52%
7Tesla Inc.TSLA$130,466.9112,946.69%
8NVIDIA Corp.NVDA$52,835.995,183.60%
9Paypal Holdings Inc.PYPL$6,481.10668.73%
10Adobe Inc.ADBE$20,120.051,912.01%
Growth of $1000 over 10 Years on Nasdaq Top 10 Stocks

Some of the growth percentages are just flat out unbelievable.

Paypal (Ticker:PYPL) has the worst gain over the last 10 years on this list.

Yet that growth is almost 700% !!

Do you know many investment can turn your money 7 folds in 10 years ?

Google’s parent company Alphabet has the second worst return from the list over the last decade and that is 800%.

All the remaining have grown 10-fold at least over the last 10 years thus making this an exceptional era for stock growth.

Therefore, these returns alone are sufficient to understand why more and more investors who have time (meaning not near their retirement age) are drawn to the stock market rather than bonds.

Why Should You Choose NASDAQ?

The Nasdaq is the world’s second-largest stock exchange. The Nasdaq is home to over 3,700 public firms with a combined market capitalization of more than $19 trillion—only slightly less than the New York Stock Exchange (NYSE), which has a total listed market capitalization of $25.5 trillion.

Nasdaq established itself as the first all-electronic exchange, and it continues to be the preferred platform for many top technology businesses.

The NASDAQ-100 Index is significant because it has a significant impact on both the local and global economies. It advises society and investors on the best non-financial companies. For businesses, it is a well-known and reputable exchange on which to list their shares.

If they include in the index, it might have a significant impact on their financial performance. Additionally, the index is suitable for incorporating companies that are at the cutting edge of innovation across all industries covered. More broadly, the Nasdaq provides a plethora of stock options.

How Fractional Shares Will Help You With Hight Stock Prices?

More often, big-name stocks come with hefty price tags. As of August 2020, one share of Alphabet, Inc., the parent company of Google, valued at more than $1,500. While one share of, Inc. valued at more than $3,000.

Fractional shares, on the other hand, allow you to purchase even the most expensive stocks and exchange-traded funds (ETFs) for as little as one dollar.

Purchasing a fractional stock is advantageous for novice investors who may not have large balances available to purchase certain stocks or ETFs. Additionally, they let you quickly diversify a smaller portfolio by investing in companies that would be out of reach otherwise.

The Advantages of Fractional Shares

Begin investing with small funds

If you’re just getting started and don’t have a sizable investment portfolio, fractional shares can make a significant impact. They enable you to enter the market instantly and begin reaping the benefits of compounding profits.

Diversify your portfolio on a shoestring budget

Diversification is a fundamental principle of portfolio development. By diversifying your holdings of equities and, more specifically, ETFs, you may minimize the risk of losing money if a single asset falls.

Because fractional investing enables you to purchase several shares for between $1 and $5. You may be able to purchase a larger range of companies than you might otherwise.

Options for improved dollar cost averaging

Dollar-cost averaging is a strategy in which you invest a certain amount of money on a consistent basis. This may allow you to pay less per share over time than you would if you purchased all of your shares at once.

Because dollar cost averaging is based on a stable dollar amount rather than a steady share portion, it works best when you can invest the entire amount. Otherwise, a portion of your funds will have to stay in a cash account. Until you have sufficient funds to purchase a complete share.

Dividend Stocks and How Do They Work?

A stock dividend is a dividend payment in shares rather than cash to shareholders. Although a stock dividend offers the advantage of paying shareholders without depleting the company’s cash reserves. It does have the disadvantage of diluting earnings per share.

Generally, these stock distributions are issued as fractions of existing shares. For instance, a company may declare a 5% stock dividend. Requiring it to issue 0.05 shares for each share held by existing shareholders. Meaning that an owner of 100 shares would get five more shares.

Exactly how does a stock dividend work?

A stock dividend also referred to as a “scrip dividend,” is a payment of stock to existing owners in place of a cash dividend. A company declares such dividends when it wants to reward its shareholders but lacks the necessary funds or wishes to conserve cash for other expenditures. 

Dividends on stocks provide an investor with a tax advantage. As with any stock, the dividend is tax-free until the investor sells it unless the company gives the choice of receiving the dividend in cash or shares. 

A stock dividend may impose a restriction on the sale of newly acquired shares for a specified length of time. This holding period generally begins the day after you buy a dividend stock. It is critical to understand the holding time for calculating eligible dividend tax treatment. 

Top 5 Websites for Stocks Market Research

Finviz is one of the greatest stock screeners for traders and investors accessible for free, as well as in a paid edition called Finviz Elite. Finviz is available in both a free and paid version.

It is a privately held firm that was established in June 2007 by Juraj Duris. Finviz is an abbreviation for “financial visualizations,” and its website receives around 18.75 million visits each month.


TradingView is a cloud-based charting and social networking program designed for active investment traders at all levels, from beginners to experts.

With a free account, you may access the most basic graphing, research, and analytical information accessible. Despite this, the majority of transactions must be executed outside of the platform due to the fact that only a limited number of brokerages are currently linked to TradingView.

Simply Wall Street

Al Bentley, the founder of Simply Wall St, established the company in Sydney, Australia, in 2014. In order to assist investors in making stock selections for their portfolios based on fundamental research, Simply Wall St has created an online resource called Simply Wall St.


Webull, which was founded in 2017, is a relative newcomer to the brokerage industry, but it looks to have taken advantage of its late arrival to achieve success.

In other aspects, the company appears to have drawn ideas from current forerunners such as Robinhood, which cater to new and casual investors who want a fantastic mobile experience as well as a clean, simple desktop interface to get started with investing.

Webull, on the other hand, is an excellent alternative for more experienced active traders, as it provides in-depth charting, hundreds of technical indicators, advanced orders, Level II market data from Nasdaq, customization, and other features.

All of this is contained within an easily navigable and aesthetically pleasing platform.


Throughout the previous decade, ETRADE, a pioneer in online brokerage, has been hampered by charges that are higher than usual. Equity and per-leg options charges were reduced to zero in October 2019, when ETRADE joined a majority of brokers in reducing commissions to $0.

There are three computer-based platforms and two fully-featured mobile apps available from E*TRADE, which will appeal to investors with a variety of investment styles and interests. The company’s primary online platform,, has been redesigned to make it easier to maneuver.

What Type of Investors Are Stocks For?

Anyone can purchase stocks on the stock exchange. Each individual has his or her own motives for purchasing a stock, and each individual has a distinct trading personality. 

Your trading personality is determined by how much risk you are prepared to take, what type of research you are willing to undertake, where you believe the economy is heading, and how much time you have on your hands to complete your trades. 

Contrary to all of this uniqueness, trading styles may be broken down into a few basic categories. Take into consideration which method sounds the most like you.


Active investors maintain track of the performance of their stocks, do extensive research, and keep up with the latest financial news on a regular basis. 

Traders do not necessarily purchase one day and sell the next, but they do pay attention to changes in patterns and buy or sell in accordance with those changes in trends. 

Despite the fact that this individual is an ardent investor who takes great care in making each investment decision, he or she does not necessarily keep an investment for the long term.

Passive investors

This type of investor does not always aim for the highest potential return on his or her investment. Instead, the passive investor accepts fair returns in exchange for a reduced level of stress and more free time on his or her hands. 

This individual may choose to invest in mutual funds in order to allow the funds’ money managers to make a purchase and sell choices. 

He may choose to purchase individual shares of stock in well-established firms and hang onto that investment for a year or more. 

Passive investors have a tendency to reduce the amount of stress they experience while making investing decisions by establishing parameters for adding new stocks to their portfolios. 

For example, if their stocks grow by 20%, they may decide to sell part of them to realize the gains.


Some investors are looking for opportunities to make money quickly. Then scour the market for stocks that are set to rise as a result of a pending transaction, and they buy them. 

In order to make money, they scan the news for announcements about mergers that may benefit a business. And then they buy shares in those companies. 

After a stock has made them some money, they tend to sell it. Because they believe that they can repeat the practice of purchasing and selling on a regular basis. So beat the market.

Retirement Investors

When it comes to investing for retirement, people tend to modify their strategies as they get closer to retirement age. 

When they are younger, they may choose a more confrontational response to conflict. This entails purchasing more risky stocks that have the potential to rise in value. 

After midlife, such an investor may decide to switch to more moderate-risk stocks. And then during retirement, they may decide to switch to dividend stocks that provide income.

Different Types of Stock

Not all stocks are equal by the executives of their respective companies, and they might be extremely different from one another in terms of performance. Let’s have a look at what the stock markets have to offer and which kind of stocks are the most suitable for you.

Preferred Stock

The term “preferred” stock is a bit of a misnomer in this context. At first glance, the preferred stock appears to be a greater type of stock than its counterpart, “common” stock. However, this is not the case.

This, on the other hand, is not correct. To simply state that preferred stock differs from ordinary stock would be far more truthful.

Common Stock

Common stock is considerably more common than preferred stock in terms of being, well, common. 

When a company decides to issue both preferred stock and common stock, the common stock issues in higher quantities than the preferred stock. 

Occasionally, a company may choose not to issue any preferred stock at all.

Stocks and Diversification in Investment Portfolio

In order to create diversification in your investment portfolio, you must weigh the risks and rewards of different investments against one another. Although this appears to be a simple concept in principle, putting it into practice is considerably more difficult.

By mixing asset types that are both riskier and less risky into a single investment portfolio, you can protect against losses while simultaneously keeping the door open to higher returns.

Preferential stock and ordinary stock are two primary forms of stock. And you have just learned about the possible advantages and limits of each of them. As a result, you now understand that some types of stocks are riskier than others.

Another interesting and little-known fact regarding the preferred stock is that some financial professionals refer to preferred stock as the “bonds of the stock market.”

Differences Between Stocks and Bonds- Pro and Cons for each investment vehicle
Differences Between Stocks and Bonds

What’s a Bond?

Similar to how a stock represents a share of ownership in a company’s assets (income). A bond represents an IOU or a written promise to provide debt financing. 

While bonds have lesser risk than stocks, this is not necessarily the case.

Company issues bonds to seek to raise cash from investors. Knowing the issuer—as well as the company’s history—is critical to understanding how to purchase bonds.

The company issuing the bonds has the ability to and does have an influence on the risk level associated with a particular bond. 

Consider the following example: a bond issued by a government body is typically less hazardous than a bond issued by a private business by its nature.

Remember how we stated earlier that some financial experts consider preferred stocks to be the “bonds of the stock market?” Well, that is still true. This is due to the fact that both assets provide a sort of fixed rate of return on investment.

Fixed dividends are paid on preferred stocks, while fixed interest is paid on bonds. However, the value of preferred stocks and bonds might vary in response to changes in the stock market.

Bonds, in principle, provide a guaranteed return even at the moment of issue of the bond. 

It is possible to argue that bonds are less risky than preferred stock because, in the event of a company’s bankruptcy, bondholders will be first in line for reimbursement before preferred stockholders.

What Type of Investors Are Bonds For?

The following are some of the most common types of Investors who buy bonds:

Who Seeks for Income

The major rationale for purchasing a bond as an investment is for the income it provides. The majority of bonds have a fixed interest rate, which means that investors will get regular semi-annual payments. 

This provides certainty in terms of both cash flow and returns. It is something that other investments, such as stocks, can not provide. 

For example, if you purchase a $1,000 bond that pays 5% interest, you will get $25 twice every year for the duration of your ownership of the bond. 

At the conclusion of the bond’s life, which is the maturity date, you will also receive your $1,000 back.

Who Plays On Safe Side

There are dangers with all investments, but bonds are typically less hazardous than stocks. Few investments, stocks included, guarantee that your money will be returned to you. Specifically, at the end of the term like bonds do. 

This repayment pledge, on the other hand, is only as good as the financial soundness of the issuer. Many bonds have letter grades by independent rating agencies to assist you in determining their relative security. 

The bonds with the highest likelihood of making their payments on time award an AAA rating on most measures.

Who Seeks Diversification

Diversification is the process of investing in a variety of various types of assets. In order to reduce the overall risk of a portfolio. 

Bonds play a significant part in most asset allocation models. Which split assets among stocks, money market funds, and other forms of investments, as well as in the stock market. 

Because bonds tend to vary in value less than stocks. They can help to smooth out the fluctuations in your portfolio. And lower your total risk by spreading out the risk. 

For the most part, asset allocation models recommend that older or more cautious investors should maintain a greater percentage of their assets in money market funds or short-term bonds rather than inequities.

Common Types of Bonds

There are several sorts of connections, and it is vital to understand the differences between them. 

Some bond types have a lower inherent risk than others, whilst others have a higher risk. There are four basic categories of bonds that we shall discuss, in addition to a few unique forms of bonds.

Government Bonds

Treasury bills, which are government bonds issued by the federal government, are a term that is often used incorrectly. 

The term “note” refers to federal government bonds that will mature (fall due) in less than 10 years. And the federal government issues them.

Municipal Bonds

Municipal bonds issued by state or municipal governments to raise money. 

The return on these bonds may be higher than that of other types of bonds. But only if the region in which you invest is growing and developing. Municipalities that are in decline are less likely to repay your investment.

Interest Rates on Municipal Bonds

Some municipal bonds come with great tax advantages for higher income tax payers.

As such, those municipal bonds interest rate may not tell you the whole story after the return on investment.

Here is our research on some of the best Tax exempt municipal bonds as of this writing.

Fidelity Tax Free BondFTABX
Vanguard High Yield VWALX
Vanguard Intermediate TermVWITX
Vanguard Long TermVWULX
Vanguard Limited TermVMLUX
Vanguard Short TermVWSUX
Table of Tax-Exempt Municipality Bonds

Agency Bonds

When bonds are issued by federal government agencies, these bonds are referred to as agency bonds. Fannie Mae and Freddie Mac bonds, for example, are examples of government-sponsored enterprises.

Corporate Bonds

Companies and companies may choose to issue corporate bonds in order to obtain cash for a number of different reasons. These are frequently riskier than U.S. Treasury bonds, but they may also give greater rates of return.

Bonds and Diversification in Investment Portfolio

As you can see, bonds, like stocks, have various degrees of risk associated with them. The degree of risk is determined by the issuing organization as well as the bond’s terms and conditions.

This means that just adding stocks and bonds to your investment portfolio will not be enough in terms of increasing your returns. 

Creating a properly diversified portfolio also entails picking the appropriate categories. Moreover, the types of stocks and bonds in order to achieve a healthy balance between risk and return.

An investment bond’s rating can vary from AAA to D. The danger increases according to the lower the letter. 

So-called “junk” bonds usually have the lowest ratings, which are based on the credit rating of the issuing corporation. Or the length of time the company has been in business.

Differences Between Stocks and Bonds – Final Verdict

Stocks and bonds both have a place in the investment portfolios of experienced investors who are attempting to construct a properly diversified portfolio.

Stocks, as you are now aware, are fractional ownership interests in the assets or net worth of the issuing company. 

Bonds, on the other hand, are debt instruments in their own right. With the possibility for interest income to use to reimburse the lender for the amount borrowed.

Preferential equities have a reduced risk of loss and a lower return on investment than ordinary stocks. 

Government-issued bonds have a lower level of risk and. Therefore, a potentially lower rate of return than corporate bonds and callable bonds, respectively.

Investment in funds such as ETFs (exchange-traded funds) or mutual funds is one of the most straightforward methods. In order to construct a portfolio that contains both greater and lower risk equities. As well as higher and lower risk bonds, among other things. 

These funds may consist of a mixture of stocks and bonds. Or they may entirely consist of stocks or entirely comprised of bonds.

What Are Warrants in Stocks – Easy Step by Step Guide

Warrants in stocks, also known as stock warrants, allows you to buy a company’s stock down the road at a fixed price and date. This means that even if the company’s share price is higher as at the time you are buying, it does not affect your investment. 

However, this doesn’t entirely guarantee you a profit as you can lose if the company’s shares trade lower than the strike price. So, what are warrants in stocks? How do stock warrants work? What makes them different from other financial derivatives? All these and more you’ll find answers to in this article.

How Do Stock Warrants Work ?

Financial instruments provide investment opportunities that investors can leverage to increase their portfolio and earning power.

The most common of them include bonds, options, mutual funds, amongst others. However, there is another viable alternative that many are probably yet to discover.

What Are Warrants in Stocks - Easy Step by Step Guide  - Picture of a stock warrant
Stock Warrant Example

A warrant in stock is a contract between an investor and a company that gives the investor the right to acquire a company’s stock at a specific price and date. 

Warrants are a company’s way of enticing well-to-do investors to buy the company’s shares, offering them a better stance during an uptrend in the company in the future. At other times, it can be an incentive to outstanding employees in the company.

Practically, as a warrant stockholder, you can buy the stock later on at the warrant’s “strike price” (the agreed-upon price) which may be lower than the current stock trading price. Another great benefit warrant stock offers you is the opportunity to buy newly issued stock from the company that issued the warrant. 

More so, though it comes with a fixed date (after which it expires), you enjoy the privilege of making the stock warrant purchase at a later date. However, you will have to do that through common stocks and if they decide to.

You should know that there is no smoke without a fire. Warrant stock is a strategy companies use to attract investors to purchase shares so that they can gain from the investment. Also, a warrant does not grant you ownership of the stock, rather, it’s a right to gain the company’s share in the future for a particular price. 

In addition, a stock warrant loses its value and is no longer valid when it expires. Hence, you need to use; either buy or sell before the expiry date. For more on the definition of warrant in stocks, watch this video.

What Makes Up a Stock Warrant?

Let’s point out the components of a stock warrant. Here’s what’s inside the financial instrument:

  • An Up-Front Notice: In any stock warrant contract, the recipient can tell the company when he (she) will exercise their right; purchase the underlying stock. 

The company that offered the stock warrant, on getting the purchase notice, will issue new stock shares. This is to increase the number of shares its stock will trade. And, the outcome will be an increment in the company’s total shares of stock, which can reduce the price of the stock.

  • The Pricing Process: Once a company issues a new bond offering, the next thing it does is to declare a stock warrant strike (otherwise called the exercise price).
  • The Expiration Date: Any stock warrant comes with an expiration date, which is listed on the contract.

Why Do Companies Issue Stock Warrants?

Companies issue warrants for a lot of reasons. This could be to raise capital by attracting investors, retaining employees, or offset the impending risk of huge losses.

When it’s to raise capital or counteract impending risks, the company usually publicizes its warrants in the open market to attract individual and institutional investors. Given the massive buying power of institutional investors, they influence the market with their big purchases. Therefore helping to actualize big capital revenue for the company.

Also, when it’s to retain employees, they normally put restrictions on when these warrants can be exercised. Therefore, employees have to wait out a few years before claiming their benefits. You can learn more about why companies issue stock warrants here in this video

Types of Stock Warrants

Stock warrants have diverse types, and they include:

Puttable Warrants

Here, you have a proportion of shares you can resell back to the company at a fixed price especially to obtain your accumulated profits. It has a deadline.

Callable Warrants

You can purchase a certain amount of shares from a company using a callable warrant. This is an authorized warrant that has a deadline.

Covered Warrants

Covered warrants allow you to buy or sell equity, currencies, and financial tools issued from giant financial institutions, not from individual companies. 

Naked Warrants

With naked warrants, you can exercise flexibility as a shareholder. A naked warrant entitles you to exchange your warrant for security, that is to say, you are not tied to a preferred stock or bond.

Wedded Warrants 

As the name implies, it works closely with bonds. You can’t buy and sell it independently, rather, together with bonds.  

Traditional Warrants

Just like the wedded warrant, you can also purchase a traditional warrant with bonds but you can sell them separately in the secondary market.

Examples of Stock Warrants – American vs European

What Are Warrants in Stocks - Easy Step by Step Guide - Warrant to Purchase Common Stock
SemGroup Stock Warrant

Here is an example of how a stock warrant applies in the  USA and Europe:

Say that XYZ Corp. wants to issue a series of stock warrants to new employees, It could structure its warrants as follows:

American-style of Stock Warrants

The warrant for 5,000 shares of XYZ Corp. stock is at the strike price of $30 within five years of expiration. This stock warrant offers you the right, but not the obligation, to buy up to 5,000 shares of XYZ Corp. for $30 per share. 

This is to say that even if the stock is selling for $80 per share, you can still buy it at $30 per share. The more the stock’s price surges, the more valuable this warrant becomes for you. 

And, you can exercise this right at any time within the five years duration. Beyond that, the warrant expires and becomes useless.

European-style of Stock Warrants

Warrant for 5,000 shares of XYZ stock at $100 strike price on July 1. This warrant bestows on you the right, but not the obligation, to sell up all your shares back to the corporation for $100 per share. 

This means that the company re-buys from you at the same rate they sold to you even if the stock is worth $20 per share. Hence, as the stock plummets, the more valuable this warrant becomes for you. 

Since this is a European-style warrant, you can only exercise it on July 1. Before that date, it has not yet matured, while afterward, it has expired.

Companies hardly issue puttable warrants, because when they do so, they would be trading against their own stock. Therefore, you must navigate through a lot of legal, ethical, and cultural issues during any put warrant issuance.

Whenever a company auctions stock warrants, it will also issue the warrant with a price set per share. So, for instance, a stock warrant of 1,000 shares sold at $5, equals $5 per share, or $5,000.

How Do Stock Warrants Work? 

Typically, a warrant acts as bait for companies, to attract investors to buy the company’s shares. They give you the privilege to take advantage of a rising market, where you get greater percentage gains on your shares, compared to common shares. 

Let’s consider the warrant of an imaginary company, Gladstone Energy. Each Gladstone warrant, which trades on the TSX but in U.S dollars, gives the holder the right to buy one common share at   $38.20 (U.S.) until Sep. 22, 2021. The warrants were recently sold for $25.65, and the common shares at $52.50.

Options Trading Excel Template – Free Downloads

Looking for free Options Trading Excel Templates, you have come to the right places. You will be able to easily download our proven Excel Template to help you with your options Trading. Options Trading Excel Template #1 : ATR Excel One of the most common question I get from traders I coach in my discord room is the following: How To Calculate The Strike Price of an Option ? ATR Template To Calculate The Strike Price Of an Option If …

Read More

Can You Paper Trade Options On Webull in 2022

Paper Trading Options is a great Way to build confidence in your strategies. Either you are a beginner options trader or a veteran who is testing to validate a brand new trading strategy, you will need options paper trading before going Live. In this discussion, we will show you the best place to paper trade Options as an alternative to Webull. Table of Contents Paper Trading Options on WebullIs Webull Paper Trading Worth It ?Why Is Paper Trading Options So …

Read More

How To Read Level 2 Market Data on Webull

Webull Level 2 Market data provides an intuitive view of the battle between buyers and sellers. In this tutorial, you will learn how to leverage Level 2 data from Webull to take your trading to the next level. Table of Contents What Is Level 2 Data On Webull ?How To Get Webull Level 2 Market DataHow Much Does Webull Level 2 Cost ?What To Look For In Webull Level 2 DataBuyers vs Sellers Orders Volume on Webull Level 2 Dynamic …

Read More

2022 SPY vs QQQ – Which Is Best For Options Traders

I have been trading SPY Options for more than 7 years. Then in May of 2021, something happened to QQQ Options that changed my mind from that point forward. Today I will be sharing my experience trading SPY vs QQQ Options so that you can learn from it in order to Take your Options Trading to the Next Level. Table of Contents SPY vs QQQ – The Popularity ContestWho Trades SPY and QQQWhich one HAs the Edge SPY or QQQ …

Read More

Is it worth Trading on Margin?

Is it worth Trading on Margin? – Easy Step by Step Guide

Trading stocks on margin entails borrowing money from a broker in order to make a transaction. But is it worth trading on Margin? Let’s find out.  A margin account improves purchasing power while also allowing investors to utilize someone else’s money to raise financial leverage by borrowing money from other investors.  Margin trading has a higher profit potential than regular trading, but it also carries a higher level of risk. Table of Contents Is It Worth Trading On Margin | …

Read More

Buying the warrant when you don’t foresee an increase in stock price may not be the best decision. At this point, it costs more to purchase the warrant ($25.65) and exercise it ($38.20) when compared to the current price of the stock. Though if you expect a price rise, then the warrant is valuable. 

A general rule for rating how promising a warrant is will be to evaluate its worth per share per adventure share price doubled. Assume that Gladstone doubled to $105, the warrant will skyrocket to $66.8 (the share price less than the exercise price), and that’s a lot of gains.

There’s one thing you must know though. If Gladstone trades at $38.20 or less than that at the tail end of September 2020, the warrants are as good as nothing, they expire.

How to Buy Stock Warrants

Firstly, to buy a stock warrant, you should be able to differentiate it from the common stock. Common stock and stock warrant tickers are placed side by side in the exchange platform. But, there is a way to fish it out; the extra letter ticker. 

For instance, Gladstone Energy Inc. the common stock will trade with the ticker GLDSE while the warrant will use the ticker GLDSEW or GLDSEWS. This means that stock warrants have an extra “W” or” or “WS” symbol” symbol attached to their tickers.

Taxes on Stock Warrants

Stock warrants are taxable and their tax rate is different from that of common stock or stock options. The breaks that stock options enjoy such as employees’ tax preferential treatment are not applicable to warrant stock.

Let’s say the warrant you exercised is $15 per share to buy 100 shares of XYZ, and the warrant costs you $300. Your total investment is $1,800, and If the market price on the day of exercise is $50, the shares are worth $5,000 and the difference is $3,200 which is your profit.

That amount is seen as ordinary income, not a capital gain since you didn’t own the stock before exercising the warrants. You can always consult a tax expert to make sure you understand and follow relevant tax rules

Stock Warrants vs. Stock Options

Stock warrants and stock options are very identical, they are similar in features and benefits. Yet, each has its uniqueness, hence they differ in some ways.


  • Both are investment/financial agreements that let an individual buy a particular company’s stock at a given price, within a given time. 
  • Each of them is specifically designed to offer investors the opportunity of making a profit on their investment. 
  • Both are traded widely on major financial exchanges such as the NYSE or the Nasdaq Stock Market.

Major Differences

  • Stock Warrants Are a Company’s Strategy For Raising Capital.

Unlike stock options, the major purpose companies issue stock warrants are to raise capital. On the flip side, stock options are ways investors can predict a company’s stock. Only the investors benefit from stock options.

  • Works With Different Times

For stock warrants, the investment window is wide open, it can last up to 5 years, and more in some cases. Stock options, on the other hand, can expire within days, weeks, or months. 

This is the reason investors often prefer stock options for short-term investment strategies. Stock warrants serve more for a long-term investment strategy.

  • The difference in taxation method

Tax rules for stock warrants and stock options differ. Taxation on stock warrants depends on the usage of warrants. Stock warrants often attract taxes when you exercise them.

You can learn more about stock warrants vs stock options in the video below.

Pros & Cons of Stock Warrants


  • Stock warrants possess high upside potential, offering you the opportunity to make huge profits.
  • Exercise dates are usually far, and this is beneficial to the investors. You have more chances of making a profit, unlike some alternatives like stock options which work with shorter periods.
  • Dividends can adjust strike price, and lessen it.


  • Risky due to volatility.
  • Availability of scant.
  • More complex than other similar options.


Warrants in stocks are a cost-effective trading instrument that allows you to earn a fortune. Yet, like all financial derivatives, they have elements of subtlety. Be sure to read in between lines and understand exactly how they work before you buy or sell them. 

You can contact a financial advisor to guide you through the processes involving a stock warrant. You can stay in touch at Successful Tradings to learn more about stock warrants and other such financial instruments..

How To Calculate Dividend Yield? – Easy Guide For New Investors

How To Calculate Dividend Yield

The dividend yield of a stock is an estimate of the return on a stock investment that is derived only from dividends. In this article, you will learn what it is and how to calculate dividend yield.

How To Calculate Dividend Yield | What is a Dividend ?

It is the distribution of a part of a company’s profits to shareholders. 

Dividends are paid out in addition to any increases in the value of the business’s stock, and they are intended to compensate shareholders for their investment in the company.

Companies in some industries are well-known for paying dividends, and dividends are more prevalent among established businesses that can afford to retain a portion of their profits rather than reinvesting them entirely back into the company. 

Companies may pay exceptional, one-time dividends, or they may pay dividends on a regular basis, such as once a quarter or once a year, depending on their financial situation.

One of the major advantages of preferred stock is that it pays regular dividends on a consistent basis, although common stock may also pay regular dividends on a consistent basis. 

Dividend payments, on the other hand, are not guaranteed, in contrast to bond interest payments. When the economy is in a bad state, companies may force to reduce or even discontinue dividend payments.

What is Dividend Yield?

How To Calculate Dividend Yield - What is dividend yield?
What is dividend yield?

The dividend yield of a company is the proportion of profits it pays out in dividends each year for every dollar invested. 

For example, if a company’s dividend yield is 7% and you hold $10,000 of its shares, you would receive a $700 yearly payment or $175 in quarterly installments if you held the stock for the whole year.

Companies, on the other hand, often pay dividends depending on the number of shares you hold rather than the value of the shares you own. 

As a result, dividend yields change in accordance with the current stock price of the company. Many stock research tools provide you with the most recent dividend yields, but you may also compute dividend yields manually if you want.

How To Calculate Dividend Yield?

How To Calculate Dividend Yield - Mathematical equation of Dividend Yield
How To Calculate Dividend Yield?

If a stock’s dividend yield isn’t expressed as a %, or if you’d want to determine the most recent dividend yield percentage, you can use the dividend yield formula for determining the yield percentage. 

Divide the annual dividends paid per share by the price per share to arrive at the dividend yield.

Dividend Yield = Annual Dividends Paid Per Share / Price Per Share

A dividend yield of 3.33 percent would be achieved. For example, if a company paid out $5 in dividends per share and its shares were now trading at $150 each.

There are a number of different methods for determining a company’s yearly dividend payout:

Annual Report

The yearly dividend per share is generally disclosed in the company’s most recent complete annual report.

Most Recent Dividend Distribution

To calculate the annual dividend, multiply the most recent quarterly dividend distribution by four to obtain the quarterly dividend payout for the previous year.

Trailing Dividend Method

A more detailed view of companies with fluctuating or irregular dividend payments may be possible by adding the four most recent quarterly payouts together to obtain the yearly dividend payment.

Please keep in mind that the dividend yield is rarely constant. It might vary even more depending on the technique you employ to compute it.

What Is the Importance of Dividend Yield?

One of the most important reasons to understand dividend yield is to assist you to choose which stocks will provide you with the best return on your dividend investment dollar. However, there are a few additional advantages to consider.

It is simple to compare stocks based on dividend yields

For income investors, it is important to analyze and pick stocks depending on which companies offer the greatest dividends per dollar of invested capital. 

A less useful statistic is the absolute amount of dividends you get per share. Because the stock values of different companies might fluctuate considerably.

Companies A and B, for example, both pay an annual dividend of $2 per share on their common stock. Company A’s stock, on the other hand, valued at $50 per share. But Company B’s stock valued at $100,000 per share. 

In contrast, Company B’s dividend yield is just 2 percent, implying that Company A may be a superior investment for income investors in comparison to Company B.

Increasing dividend yield indicates the company is financially healthy

Generally speaking, when a business chooses to increase its dividend—and, as a result, its dividend yield—this indicates to investors that the company is doing well because it can afford to distribute a greater portion of its revenues to shareholders.

Generally speaking, older, more mature companies in established sectors are more likely to pay regular dividends. Moreover, to offer higher dividend yields than younger, less experienced companies. 

Meanwhile, newer, faster-growing companies are more likely to reinvest their revenues for future expansion. Rather than paying out a dividend to shareholders.

Dividends increase the value of your investments

Your investment gains the benefits of compounding when you reinvest your dividends. Rather than cashing them out every year or quarter. 

Compounding effects have the potential to significantly increase your profits over time. 

According to a recent analysis from Hartford Funds, reinvesting dividends has been responsible for 78 percent of the overall gains of the S&p; P 500 from the beginning of 1970.

The Risks of Investing in Stocks with High Dividend Yields

A high dividend yield is not always a favorable indicator of a company’s health. In fact, an unusually large yield may be a warning sign that something is wrong. This might occur for a variety of causes, including:

The stock price of the company has just dropped precipitously. If the price of a company drops dramatically but the dividend did not reduce, the yield on the stock may appear to be high. 

Consider the case of a company with a stock price of $60. And a $2 yearly dividend per share paid out on each share. If the stock’s price falls below $20, the dividend yield more than doubles to almost 10% of the stock’s value. 

This yield may appear to be quite attractive at first glance. But upon closer inspection, it indicates that the company is in serious difficulty. As seen by the company’s share price’s precipitous decline. This indicates that a dividend cut or cancellation may be on the way in the near future.

Options Trading Excel Template – Free Downloads

Looking for free Options Trading Excel Templates, you have come to the right places. You will be able to easily download our proven Excel Template to help you with your options Trading. Options Trading Excel Template #1 : ATR Excel One of the most common question I get from traders I coach in my discord room is the following: How To Calculate The Strike Price of an Option ? ATR Template To Calculate The Strike Price Of an Option If …

Read More

Can You Paper Trade Options On Webull in 2022

Paper Trading Options is a great Way to build confidence in your strategies. Either you are a beginner options trader or a veteran who is testing to validate a brand new trading strategy, you will need options paper trading before going Live. In this discussion, we will show you the best place to paper trade Options as an alternative to Webull. Table of Contents Paper Trading Options on WebullIs Webull Paper Trading Worth It ?Why Is Paper Trading Options So …

Read More

How To Read Level 2 Market Data on Webull

Webull Level 2 Market data provides an intuitive view of the battle between buyers and sellers. In this tutorial, you will learn how to leverage Level 2 data from Webull to take your trading to the next level. Table of Contents What Is Level 2 Data On Webull ?How To Get Webull Level 2 Market DataHow Much Does Webull Level 2 Cost ?What To Look For In Webull Level 2 DataBuyers vs Sellers Orders Volume on Webull Level 2 Dynamic …

Read More

2022 SPY vs QQQ – Which Is Best For Options Traders

I have been trading SPY Options for more than 7 years. Then in May of 2021, something happened to QQQ Options that changed my mind from that point forward. Today I will be sharing my experience trading SPY vs QQQ Options so that you can learn from it in order to Take your Options Trading to the Next Level. Table of Contents SPY vs QQQ – The Popularity ContestWho Trades SPY and QQQWhich one HAs the Edge SPY or QQQ …

Read More

Is it worth Trading on Margin?

Is it worth Trading on Margin? – Easy Step by Step Guide

Trading stocks on margin entails borrowing money from a broker in order to make a transaction. But is it worth trading on Margin? Let’s find out.  A margin account improves purchasing power while also allowing investors to utilize someone else’s money to raise financial leverage by borrowing money from other investors.  Margin trading has a higher profit potential than regular trading, but it also carries a higher level of risk. Table of Contents Is It Worth Trading On Margin | …

Read More

The company is seeking to entice investors by offering a large dividend payout to them. Some companies attempt to raise their stock prices by raising their dividends. In order to attract new investors to their shares. 

Some investors may want to purchase shares as a result of the high dividend yield. It will cause the stock price to rise. 

However, if the company is not financially sound and cannot afford to maintain the larger dividend payments. This dividend payout—and the resulting gain in stock value—may not be sustainable.

Stocks with the Highest Dividend Yield

High dividend yields is possible in dividend aristocrats, which have continuously increased their dividend distributions over decades. As well as companies in the following industries:


Electricity and water companies, in general, payout large, steady dividends. Even natural gas companies have historically paid out dividends that were pretty large and consistent.

Consumer Staples

Companies that provide consumer staples frequently have dividend programs that have been in place for a long time. In reality, many of the dividend aristocrats are companies that manufacture basic staples.


Companies that provide telephone and internet services frequently pay out large dividends to their shareholders.


Companies that provide energy frequently offer greater dividend yields. This is due in part to the fact that many are MLPs, which require to distribute all of their income to shareholders in order to preserve their tax-favored status.

Real estate

Real estate investment trusts (REITs), like master limited partnerships (MLPs), must transfer virtually all of their income to shareholders in the form of dividends in order to maintain their tax-exempt status.


When a security’s dividend yield is measured in relation to its stock market value per share, it is known as the dividend yield (also known as the dividend payout ratio). 

The dividend yield formula, in other words, determines the proportion of a company’s market price of a share. More specifically, paid to shareholders in the form of distributions.

When analyzing stocks for investment objectives, a high dividend yield can be a useful metric to consider. However, it is not necessarily indicative of a successful business. 

Always go beyond the figure at a single point in time, and make sure to take a long-term view of the industry. And the company’s dividend yield in addition to the number. 

The fact that there is some regularity and that it is not simply a one-time fluke is important to know. 

Compounding Investment Returns – Easy Step by Step Guide

Compounding Investment and Returns

As of today, most of the economies of the world, including the American economy, are defined by compounding investment returns.

At one end of the scale, much of the U.S. retirement system currently relies on individual 401(k) accounts. Workers make many investments and reinvestments over the course of their employment. More specifically, with the goal of finally cashing out when they retire.

What are Compounding Investment Returns?

Compounding Investment returns is the ability of an asset to create earnings, which are then reinvested or remain invested with the objective of creating their own earnings, that is referred to as compounding. 

To put it another way, compounding refers to the process of creating earnings from past earnings.

Compound returns are when the value of your investment rises as a result of both the initial capital and the returns created by that investment. It is another way of describing investment returns.

How Does Compounding Investment and Returns Work?

To understand how compounding investment and returns work, consider the following scenario:

You make a $1,000 investment that returns a 10 percent yearly compound rate of interest. At the end of the first year, you would have $1,100. It included the original money you invested plus a $100 return on your investment, representing a 10 percent return.

The amount you would have at the conclusion of the second year is $1,210. You would have $1,331 at the end of the third year, $1,464 at the end of the fourth year, and $1,610 at the end of the fifth year if you kept going. 

Because the interest rate compounded annually, your account increased in value by more than $100 per year. It applied to the account’s whole value, which included both the capital and any profits or losses. 

As a result, you received 10 percent of $1,000 in your second year, 10 percent of $1,210 in your third year, and so on.

Compounding Investment and Returns - Chart of Compounding
Chart of Compounding Investment and Returns

Generally speaking, the mechanics of compound returns are rather straightforward. When you make an ordinary income-generating investment, the holder of that investment gives you a check when the investment creates money for him or her. 

For example, when a bond pays interest, the bond company may send you a check for the amount equal to the interest rate paid.

Compound Investment and Income

A compound return investment produces income as well as capital gains. However, in contrast to a traditional product, the holder of the investment retains the income generated by the investment. Moreover, adds it to the principal invested by you. 

Afterward, when it is time to compute your return on that investment, the new value of your account is used as a foundation for the computation. This procedure repeats each time the asset earns a return on its investment. 

Consequently, if you are paid quarterly, the company reinvests your money and recalculates it four times each year; if you are paid yearly, the company does it once per year; and so on.

What Is the Value of Compound Investment Returns?

Compounding Investment Returns - Compound Interest Vs Simple Interest
Compound Interest Vs Simple Interest

Compound returns are one of the most lucrative investment forms available. As well as one of the most expensive types of debt available in the whole field of finance. 

The importance of compound interest is so widely recognized that an apocryphal quotation is ascribed. Einstein describes it as “the most powerful force in the universe.”

Take, for example, our previous example. We have deposited $1,000 into a checking account that earns 10% annual interest. 

Let’s pretend it’s part of a retirement plan, and we leave it alone for the next 40 years. When we retire at 65, the money we put down in our mid-20s will have grown to more than $45,000, thanks to compound interest. 

In addition, our case is a little improbable. It is substantially more probable that this investment would multiply quarterly. Resulting in a total value that is slightly shy of $52,000.

A single impulsive investment made when we were 25 years old can now supply us with a whole year’s income. Especially, in our golden years.

That is the power of compounding.

Compound returns may provide you with some of the greatest investments available in the market if you are investing for the long term. In the near run, they are frequently not extremely valuable assets. 

Compound return investments, on the other hand, will seldom deliver the type of speculative returns that, for example, a rocket stock may bring. 

However, compound investments have the potential to generate considerable growth over time since the value of the investment grows by adding (literally compounding) upon itself.

How Do Investment Products offer Compound Returns?

In order to generate compound returns, an asset must fulfill a few fundamental requirements:

Dividends, interest, or some other kind of income stream must be paid to the asset’s owner in order for the asset to be considered a successful investment. It cannot be an asset whose worth is only appreciated when the asset is sold or otherwise transferred.

Those returns must be reinvested back into the underlying principle that was utilized to compute your gains by the investing company.

The use of financial products can do this in a variety of ways.

Interest Payments

This is the example that we’ve used throughout this post to illustrate our point. 

The investment will generate a fixed rate of return computed on the basis of the underlying principle, and any profits will add to this underlying principle in order to raise the rate of return.

Asset Holdings

In this case, the investment is based on a collection of assets, such as a stock portfolio, and it derives its value from any income provided by the assets in the collection. 

All profits reinvested in the acquisition of more assets, therefore expanding the number of holdings that are capable of generating income on a continuing basis.

Which Investment Products Provide Compound Returns?

Compound returns are available through a variety of investment options. Some of the most often encountered are as follows:

Mutual Funds

A large number of Mutual Funds offer compound interest. The most typical structure, in this case, is for the fund to invest in equities that pay dividends to investors. 

It then utilizes those dividends to purchase further shares of stock. Resulting in you receiving even more dividends during the following cycle (since you hold more shares).

Exchange Traded Funds (ETFs)

ETFs with compound returns are also widely available. They function in a similar way to mutual funds in that they generally invest in dividend-paying equities. 

In exchange for your dividends, the fund purchases additional shares of stock on your behalf. Rather than issuing you a cash check. Your dividend check grows in size the next time the stock pays its owners. Moreover, the ETF reinvests the extra money into your account.

Certificates of Deposit

A certificate of deposit (CD) is a type of investment product that banks issue you. CDs with compound interest are certificates of deposit that pay a fixed rate of interest that compound on regular basis. Moreover, they have a specified maturity date. 

It functions in the same way as our previous example. Every time an interest payment incurs on a CD, the bank immediately adds that payment to the underlying principle. When the CD matures, you get the whole amount you invest.

Zero-Coupon Bonds

A zero-coupon bond is a type of bond that pays compound interest, with the rate of interest, the repayment schedule, and the date of repayment all predetermined in advance. 

The face value of the bond represents the amount of money it will be worth when it matures. When you acquire a bond, you pay the bond’s face value today. It is equal to what the bond’s face value is worth.

Who Can Benefit From Compounding Investment Returns?

Simply defined, compound interest is beneficial to investors, although the term “investors” can refer to a wide range of people. 

In the case of financial institutions, compound interest is beneficial when they lend money and then reinvest the interest they get in the form of further loans. 

Those who have bank accounts, bonds, or other assets will also profit from compound interest. Since they will earn interest on their money over time.

In addition, while the term “compound interest” incorporates the word “interest”. It is crucial to highlight that the idea extends beyond instances in which the word “interest” commonly employed. More likely, bank accounts and loans.

Compounding Investment Returns – Final Verdict

Probably the most exciting part of the power of compounding is that your investments generate interest. On both the initial money and the interest that you already earned on your investments. 

Overall, the force of compounding allows you to develop a large foundation of profits that add to every cycle, allowing you to make more money.

To be a successful investor, you must understand that the strength of compounding comes in its capacity to reinvest the profits made on your initial investment. 

In other words, you should avoid attempting to take your profits at any point throughout the investing term prior to the end of the period.

Alternatively, you would run the danger of restricting the growth potential of your profits. It is due to the power of compounding on your investments. 

The investment plan and time period that you choose should reflect your financial objectives. As well as your capacity to invest. 

The greater the distance between you and your objective, the sooner you must begin investing. In order to have enough time to build the necessary quantity of cash.

What Is Automatic Investing? Easy Step by Step Guide

What Is Automatic Investing

Being in an investing world, everyone almost once in their lifetime comes across this question in mind, “what is automatic investing.”

Investors have a wide range of options with which to make decisions about their money, which has caused a rise in the number of automated investing tools.

What Is Automatic Investing?

Automatic investing solutions allow you to set up periodic investments to an investment account without having to do anything manually.

Automatic investment plans, often known as AIPs, may also assist investors in growing their portfolios, staying on track with their financial goals, and making use of the power of compounding.

In order to set up an automated investing plan, you must first determine the amount and frequency of contributions you want to make. 

If your time horizon, risk tolerance, or objectives change, you can quickly evaluate and alter your strategy as needed.

It is possible to have money taken from your paycheck, checking account, or savings account and then put it into your investment account, depending on the sort of automated investing plan you have set up for yourself.

Understanding the Concept of Automatic Investing

One of the most effective methods to save money is to set up an automatic investing plan. A multitude of market mechanisms has been developed to assist in the facilitation of automated investment plans. 

Employer-sponsored investment accounts allow investors to make contributions through their employer by setting up automatic withdrawals from their paychecks for investment in employer-sponsored investment accounts. 

A personal account can be set up to make automatic withdrawals from it if the individual so desires.

How Can You Start an Automatic Investment Plan?

Invest Percentage, Not A Dollar

Before you begin an automatic investing plan, make the decision to invest a percentage rather than a specific cash amount.

As your salary rises, you should raise the amount of money you put aside. A percentage will allow you to invest a sufficient amount of money without compromising your financial situation.

If you follow my advice, which means you are debt-free and have an emergency fund of three to six months’ worth of costs, you should invest 15 percent of your gross family income—not counting any matching funds you may receive from your 401(k) (k).

I show You how To Make Huge Profits In A Short Time With Cryptos!

Consider the following scenario: your household income is $60,000 per year. If you set aside 15 percent of your income for retirement, you’d set aside $9,000 a year, or $750 per month, for your retirement.

$60, 000 x 15 percent = $9,000/12 months = $700 each month for retirement savings.

However, if you receive a raise in the coming year, your monthly retirement contribution should not continue at $750. Instead, continue to invest 15 percent of your salary each month so that your monthly contribution grows in tandem with your income.

Set up A Direct Deposit

Please ask your employer to assist you in setting up direct deposit if you haven’t previously done so.

You want your contributions to your retirement accounts—IRAs, 401(k)s, and 403(b)s—to be automatically moved from your paychecks to your accounts in order to prevent the temptation to “accidentally” spend your money without a strategy.

You may set up your IRA or 401(k) to automatically remove money from your bank account if your company does not provide direct deposit for your paychecks. It is important to note that I will return to this later.

Determine Retirement Options

If your workplace offers a retirement plan, such as a standard or Roth 401(k), your employer may be able to automatically move your investment amount into your 401(k) without your knowledge (k). It will only take a few signatures on some papers for it to happen.

Once again, be certain that you have selected the proper percentage (we recommend 15 percent) as the automatic transfer amount rather than a fixed cash amount.

It is possible to put the full 15 percent of your income into a Roth 401(k) if your company offers this choice. If they provide a traditional 401(k) with a corporate match, we propose that you use a Roth IRA in addition to the regular plan.

Set Up Automatic Contributions or Withdrawals

If you plan to contribute to a Roth IRA, you will need to complete the same paperwork that an employer completes for a 401(k).

With a 401(k), you tell your company what percentage of your salary you want to contribute, and they do the rest of the calculations. 

With a Roth IRA, on the other hand, you must compute the contribution amount yourself in order to determine how much money to invest each month in the account.

When a result, it will be your responsibility to raise your contribution amount as your income increases in order to maintain the 15 percent rate.

In accordance with the options provided by your company, you will either set up automatic payroll deductions or automatic bank account withdrawals from your account.

I show You how To Make Huge Profits In A Short Time With Cryptos!

Automated Payroll Deductions

It is possible that your company will offer to have money taken from your paycheck. In order for you to contribute to your Roth IRA. 

It is possible that you may need to ask your Roth IRA contact (the custodian) for a routing number. Moreover, an account number in order to complete this process. 

As soon as you’ve obtained these documents, you may set up automatic payroll deductions to deposit a certain amount of money from each paycheck to your Roth IRA.

Automated Bank Withdrawals

Instead of setting up payroll deductions through your employer, you may request that your Roth IRA custodian set up automatic withdrawals from your bank account each week or each month. 

However, double-check that the transfer dates are scheduled after you have been paid. Otherwise, your contribution may be withheld from your account before your paycheck is received. It might result in financial difficulties with your bank.

Automatic Investment Plans for Individuals

Individuals who do not participate in employer-sponsored automatic investing plans have a plethora of choices in the financial market to select from. 

A universal feature of every accessible investing account is the ability for investors to set up automated investment schedules.

Retirement accounts and brokerage accounts are two of the most prevalent types of investment accounts where automatic investments are available. 

Some retirement accounts provide incentives to investors who want to automate their investing decisions. 

As an alternative, many investing platforms have the option of storing automatic investments in a money market account. Here the money earns interest until the money is allocated to other types of assets.

A dividend reinvestment plan is one type of AIP that you can use to assist increase assets in single stocks. 

I show You how To Make Huge Profits In A Short Time With Cryptos!

What To Know about DRIPs ?

Investing in dividend reinvestment plans (DRIPs) allows investors to automatically reinvest their cash dividends into new shares or fractional shares. In the underlying company on the day of the dividend payment. 

It can refer to any automatic reinvestment arrangement established through a brokerage or investment business. But it is most commonly associated with a formal program. This program is given directly by a publicly listed organization to its current shareholders.

Automatic Investing with Roboadvisors

Many new alternatives for automated investment, referred to as roboadvisors, are being developed in the rapidly expanding fintech industry. Moreover, it is seeing rapid growth. 

Micro-investing platforms are provided by fintech businesses, which allow investors to make automated deposits in tiny amounts over time. Acorns are a good illustration of this. 

Using a bank account connection, the site invests leftover change (round-ups) from each purchase in an investor’s chosen investment portfolio. Managed by the platform itself. 

The roboadvisor platforms Wealthfront and Betterment are both well-known names in the industry.

What Is Automatic Investing - Roboadvisors
Automatic Investing with RoboAdvisors

They are more likely to use passive investing methods guided by modern portfolio theory (MPT) to optimize asset allocation weights. In order to maximize anticipated return for given risk tolerance and then to maintain the balance of those portfolio weights.

Robo-advisors vary by their ultra-low fees and extremely low minimum investment amounts required to get start. Allowing even novice investors to build optimal portfolios with tiny initial investments. 

In many respects, they are also set-it-and-forget-it, which means that everything is completely automated.

What are the Benefits of Automatic Investing?

What Is Automatic Investing - Benefits
Benefits of Automatic Investing

Dollar-Cost Averaging

As an alternative to attempting to “timing the market,” dollar-cost averaging allows you to invest a certain amount. Regardless of how much the market is fluctuating in value. We’ve detailed some of the advantages for investors in this article.

Set it and forget it

Once you have begun to develop a portfolio, it may take some time before you are able to continue to add to it. 

For example, Hatch’s auto-investing puts your money to work for you. Whether or not you have time to log onto the platform. Investing can become completely automated if you set up an automatic payment in your online banking account!

No More Waiting

In order to increase their portfolio, many investors set away a percentage of their earnings on a weekly basis. 

If you make frequent automated transfers into investing plan, you may dollar-cost average the exchange rate over time. Rather than accumulating funds in a low-interest savings account. 

If you have money in your account, you can instantly put it to work generating dividends through the money market fund. When there is enough, you can automatically invest in the businesses and ETFs you selected. All without you having to do a thing.

I show You how To Make Huge Profits In A Short Time With Cryptos!

Develop Better Investing Habits

Investing on a regular basis allows you to gradually increase the value of your money. 

Not only does it alleviate the anxiety of making large one-time investments, but it also assists in making the process of increasing your money a regular part of your financial planning. 

Some investors have found that automating as much of their investment as they can help them keep to their regular investing routine. 

It takes little effort to develop your portfolio if you set up an automatic transfer of $100 into your account. You can also have auto-investments set up. 

It is surprising that how quickly those modest sums may pile up over a period of time! Obviously, shares are not the same as savings; their value will fluctuate, and they will not constantly increase in value.

Instills A Sense of Discipline

While it is possible for someone to save regularly at the end of each month, there are times when a scenario arises that necessitates him using his investment amount, therefore destroying his savings habit.

For example, an unexpected emergency might arise, necessitating the need for more money. Despite the fact that the emergency was a more pressing problem, it would prevent him from accumulating money. 

If the individual had already withdrawn his or her funds, his or her behavior would have remained consistent and unchanged. This would have secured his ability to arrange his financial future. 

Individuals learn to manage from the cash they have put aside for expenses as a result of auto investing at the beginning of each month, which instills discipline in them.

I show You how To Make Huge Profits In A Short Time With Cryptos!

Sort Your Expenses Into Categories

Following the completion of your monthly expenses, saving or investing is not suitable. This is due to the fact that if you spend first and save afterward, you will be unable to allocate a consistent quantity to this corpus of money. 

It should be noted that savings should always be taken from income before costs are fulfilled. It would be practical in this situation to create an expense chart at the beginning of each month.

This would assist in eliminating unnecessary expenditures from the budget planning process. Moreover, prioritizing the required costs on the crucial list. 

In addition to the investment amount, one should set aside 10 percent of one’s salary for unexpected costs. In addition to the investment amount. 

So it is advisable to list your monthly costs, including emergency money. Then invest a predetermined amount at the beginning of each month to ensure a steady stream of income.

Reduces Risk Factors

Investing in automatic mode allows you to ride out market-related risks more comfortably. When a person invests a large quantity of money in a single transaction, they face the danger of suffering a significant loss or experiencing again. 

This approach is not suitable due to the significant degree of uncertainty in the outcome. 

By making regular contributions through a Systematic Investment Plan (SIP), you can minimize the dangers associated with stock market fluctuations.

In order to keep the amount invested secure from market fluctuations, to keep it balanced. To ensure that the investment grows economically, it is good habit to fund the amount invested on a regular basis. 

You can meet your wealth-building objectives easily if you follow this strategy.


Now, you are well aware of automatic investing. Despite the fact that you are saving time by using automated investing tools, make it a frequent practice to check on your investment portfolio.

Reconsider your investing strategy and asset allocations, maybe with the assistance of a financial advisor. To ensure that your investment decisions are consistent with your financial objectives.

Options Trading Excel Template – Free Downloads

Looking for free Options Trading Excel Templates, you have come to the right places. You will be able to easily download our proven Excel Template to help you with your options Trading. Options Trading Excel Template #1 : ATR Excel One of the most common question I get from traders I coach in my discord room is the following: How To Calculate The Strike Price of an Option ? ATR Template To Calculate The Strike Price Of an Option If …

Read More

Can You Paper Trade Options On Webull in 2022

Paper Trading Options is a great Way to build confidence in your strategies. Either you are a beginner options trader or a veteran who is testing to validate a brand new trading strategy, you will need options paper trading before going Live. In this discussion, we will show you the best place to paper trade Options as an alternative to Webull. Table of Contents Paper Trading Options on WebullIs Webull Paper Trading Worth It ?Why Is Paper Trading Options So …

Read More

How To Read Level 2 Market Data on Webull

Webull Level 2 Market data provides an intuitive view of the battle between buyers and sellers. In this tutorial, you will learn how to leverage Level 2 data from Webull to take your trading to the next level. Table of Contents What Is Level 2 Data On Webull ?How To Get Webull Level 2 Market DataHow Much Does Webull Level 2 Cost ?What To Look For In Webull Level 2 DataBuyers vs Sellers Orders Volume on Webull Level 2 Dynamic …

Read More

2022 SPY vs QQQ – Which Is Best For Options Traders

I have been trading SPY Options for more than 7 years. Then in May of 2021, something happened to QQQ Options that changed my mind from that point forward. Today I will be sharing my experience trading SPY vs QQQ Options so that you can learn from it in order to Take your Options Trading to the Next Level. Table of Contents SPY vs QQQ – The Popularity ContestWho Trades SPY and QQQWhich one HAs the Edge SPY or QQQ …

Read More

Is it worth Trading on Margin?

Is it worth Trading on Margin? – Easy Step by Step Guide

Trading stocks on margin entails borrowing money from a broker in order to make a transaction. But is it worth trading on Margin? Let’s find out.  A margin account improves purchasing power while also allowing investors to utilize someone else’s money to raise financial leverage by borrowing money from other investors.  Margin trading has a higher profit potential than regular trading, but it also carries a higher level of risk. Table of Contents Is It Worth Trading On Margin | …

Read More