Is it true that you can't take money out of the market using only risk management?

I suspect what you mean by "take money out of the market" is obtaining returns above the market average, i.e., "beating the market". Indeed, your intuition is correct that unless you can statistically predict stock returns better than the "random walk" model, you ca

what's the trader term for return of 3x, 4x, 5x etc

From Investopedia - Tenbagger:A tenbagger is an investment that appreciates to 10 times its ini

Is it always bad to purchase a business you don't understand?

You should see "Restaurant Impossible" on TV, shows exactly how you'll end up if you take this direction. Bottom line - yes, it is usually bad. There's a race condition there in the hiding: you either learn the ropes as you go, or you run out of money and g

UK - Borrowing house deposit from parents

If you receive a loan from your parents, it is treated legally just as a loan fom a bank, or from any private person with spare money. You don't pay tax on a loan that you get from your bank (or your parents), and the bank (or your parents) don't pay tax when you re

Am I hurting my credit in the long run by not using my card?

It sounds like you are not crazy about the idea about increasing your credit card usage, which is perfectly fine. If you don't want to use credit cards then don't use them. It may not be worth the extra few percent of benefits that you might

Is money invested in a company owned by the company?

If X initially has full ownership and control of the company, then it is X's choice what is done with the company's stock and assets. There may be tax and accounting rules and consequences, but fundamentally X is allowed to move personal funds into the company (inve

Is it possible to sell voting rights?

I don't know if you can sell them but there is a way to give your voting rights away by designating your proxy to vote as you direct. For a annual meeting vote, most shareholders don't attend. Instead shareholders are given a mechanism to inform the corpor

What causes market-wide trends?

The psychology of the market participants does in both situations.A general market trend can cause participants in individual companies to follow the general market trend, even if the company's health is opposite to the general market trend. A general marke

Why isn't the retained earnings of a public company always distributed back to the shareholders?

As a shareholder in a public company, you typically want your investment to grow. Companies retain their earnings when they want, or need, to reinvest into their business. New products, acquisitions, market expansion, etc all require money so it typically makes se

What's the upside of having a heavy credit card?

Small things like cards can feel light, flimsy and fragile - cheap, disposable. Making the card heavier gives it a better hand feel - makes it feel heavy, durable, resilient, luxurious, valuable. Basically, it's the same reason resumes and invitations are printed on

Reasons for not taking loans with negative interest rate

At the moment, there are a handful of countries that are selling bonds with slightly negative interest rates. Institutional investors are willing, in effect, to pay those countries to hold their money. In many cases, those investors hold those bonds not as investm

What price will a stock sell at when there's a "negative" spread between buy and sell orders?

As stated by others, $99.90 is the last price not the current price.Your question assumes that there are no existing orders on the order book for this stock. That is never the case with major US stock exchanges. As I wrote in my answer in your l

How best to invest high income if looking to eventually maximize charitable donations?

To add a bit to what Charles Fox has written:Lend the money to yourself for your retirement.In other words put the money into whatever vehicles you would normally use to save for your own retirement. Keep a note of how much of it y

Copying the S&P 400 by buying individual stocks

Nothing stops an individual or a fund manager from buying and holding all and only those shares which comprise a given index. Consider that many professionally managed funds are closet index trackers in practice so they are essentially "mimicking" the index.

Facebook buying WhatsApp for 19 Billion. How are existing shareholders affected?

It's a dilution of the ownership; the public used to own x% of Facebook and now they own less than x% of the bigger Facebook that incorporates Whatsapp (assuming that Whatsapp was completely private before).Logically, the $15 billion is allocated p

How to take advantage of home appreciation

Assuming "take advantage" means continue to build wealth, as opposed to blow it all on a fancy holiday... Downgrade As you already note, you could downgrade/downsize. This could happen via moving to a smaller house in the

After Market Price change, how can I get it at that price?

If the price used to be 2.50 but by the time you get in an order it's 2.80, you're going to have to pay 2.80. You can't say, "I want to buy it at the price from an hour ago". If you could, everybody would wait for the price to go up, then buy at the old price and ha

What is the difference between IRA account to buy ETF and using a taxable brokerage acct to buy ETF?

Taxation.Gains and dividends in an individual investment account are taxable; additionally the money you use to invest is taxed. IRA and Roth IRA receive preferred taxation of gains dividends, and in the case of a Traditional IRA your contributions are tax

Is it possible to start/buy a business without risk to personal finances?

I think it is very possible to start, own, and operate a business without risk to one's personal finances. There are two keys to this: cash only, and sufficient structure/liability coverage.Despite what some social media personalities claim, it is not rea

How do I record my spouse's payment in shared credit card account?

Presumably, you and your wife each have separate checking accounts. Each payment to the joint credit card would look something like Total Increase Total DecreaseMarch payment Liabilities:J

When first incorporated, I created 100,000 company shares worth $1 each. What does this mean?

There’s the notion of share capital and a separate notion of authorised share capital (which, confusingly, isn’t necessarily share capital).Share capital consists of all funds raised by a company in exchange for shares of either common or prefer

Applied for car loan and got denied: No credit history or no credit file

The reason I was given was the following: "Insufficient recent satisfactory credit history or no credit file."You're focusing on "no credit file" but ignoring the just-as-important "Insufficient

I just started a new job in D.C. and looking to buy my first home. I have a few questions, and any help I can get would be very much appreciated

It's very hard to suggest what another person should do because it's going to depend on so many factors. At a minimum, though, make sure you understand the risks you're taking so that you don't get blindsided.The reason that the conventional wisdom is not t

Buying a house vs Building one

There's not a "formula". You need to figure out what house you want to build, get a design, get a quote from a builder (including all of the options you want), add the cost of the land to that quote, and compare with buying an existing house. There are a

Downsides to a mortgage recast?

There are some comments that request clarification on specific terms of your 'recast', but it seems to me you are asking this question hypothetically for how you should plan in the future. The simple answer as to whether someone would extend the term of thei

What is an ideal number of stock positions that I should have in my portfolio?

The two biggest issues that impact your question I would say are diversification and fees.If you have $10,000 to invest and only invest it in two securities, then a 20% drop in one security can have you lose 10% of your initial investment which I would cons

Is it good idea to sacrifice some capital for higher income?

In theory, yes, it makes sense to sell your current bonds in pursuit of higher yields. In practice, there are a lot of smart people out there who own bonds, and the market is very efficient, so you won't see opportunities to trade new bonds for old bonds with better

How to calculate Annual Percentage Rate of a loan with unequal periodic payments?

As established in the quoted link How to calculate Annual Percentage Rate the summation for a loan iswhere

Transferring balance to a debit card

To answer your question as clarified in a comment: All I wanted to know what will happen if I enter my debit card number in the sixteen digit account number they offer on the application for balance transfer. That's all.

Some stock's prices don't fluctuate widely - Is it an advantages?

Oracle specifically is paying a dividend with a current yield of about 1.4% annually and has appreciated nearly 50% over the last 5 years. Granted, the past doesn't guarantee the future but the company has paid a pretty steady dividend since 2009. If you're buying

Are all ETFs index-based passive portfolios, or are there other kinds?

There are good reasons why a lot of ETFs are passive.The SEC requires active ETF publish holdings on a daily basis. By contrast, for mutual fund it's quarterly. That makes active management a lot harder since you can't keep what you are doing a s

I'm trying to setup my 401k with 5% match from my employer

Based on the numbers on the screen, it looks like your income is in the range of $9,325 to $37,950 per year. This puts you in the 15% tax bracket. I personally would recommend you move the slider all the way to the right and put your entire contribution into the 401

Why do stock prices rise when dividends increase?

A change in the dividend doesn't change a company's intrinsic value but it can affect investor valuation and investor sentiment which can then move share price.If a company raises its dividend, it may be interpreted as a positive sign and lead to buying.

Co-ownership on house

You need to talk to a lawyer.sevensevens is right. Your father owns half the house, because you signed a legal agreement that says that. He can very reasonably demand to live there. He can probably force you to sell. And he will probably ge

How risky is it financially to emigrate to a different country?

Your current assets are small compared to what you can expect to earn in a lifetime and compared to what you will need for retirement. Fortunately, you are young and have decades more to save. Many people are in something like your situation of starting out, say wit

How do I know if I'll receive the Chase Freedom Unlimited sign-up bonus offer?

I've done a half a dozen or so of these over the years and not one of them did anything more than send me the credit card once I was approved. While I can't guarantee you that you'll get the bonus, there's no reason to expect that you won't. You applied for their

Round up of advantaged retirement investment approaches in the US?

Retirement accounts have the major advantage that changing one's investments within the account (over the coming decades) does not incur capital gains tax along the way. This is a separate, underappreciated benefit from the famous benefits of retirement accounts suc

How do I choose one fund over another if "past performance does not indicate future performance"?

past performance does not indicate future performanceYes, obvious statement is obvious.Pretend for a moment that we applied this statement to Olympic gold medalists. The statement is not needed because if past performance g

How someone can hack our bank account

My full name on bank, my last four digit account number and they also know my phone number that link to my bank account. So, Will they able to hacked my account through this information.Maybe. It's hard to say how secure your bank

Is Cost of Living overstated?

New York City is high cost-of-living, and I have absolutely no clue why people live there. It's a tough place, and the taxes are oppressive. People buy a studio apartment for $150,000

Why are options created?

The main reason is that you move from the linear payoff structure to a non-linear one. This is called convexity in finance.With options you can design a payoff structure in almost any way to

How can I take advantage of credit card cash back programs?

Generally a "cash back" option at the time a purchase is made is only available to purchasers using a DEBIT card. Debit cards usually have no rewards.Assuming you are able to have a retailer charge you $100 for a $5 purchase you should earn rewards on the t

Do retailers ever stock goods just to make other goods sell better?

There's a concept in retail called a "loss leader", and essentially it means that a store will sell an item intentionally at a loss as a way of bringing in business in the hope that while consumers are in the store taking advantage of the discounted item, they'll ma

Which stock has split more than once in the past five years?

Here are the companies on the S&P 500 that split more than once in the last five years:Under Armour (3 splits)AFLAC (2 splits)Brown-Forman (2 splits)Fiserv (2 splits)Johnson Controls International (2 splits)Nike (2 splits)Smith (A O) (2 s

How does buying a call option make more money than simply buying stock?

buying a call option on a stock when you believe it will go up will never yield as much profit as simply buying the stock outright.Suppose Apple stock is trading at $100 and you think it will go up. You have $10,000 to invest.

Advice on loan to friend

As you have surely realized 10% amounts to less income as the principal remaining on the loan is paid back reducing the lender's overall income. But, you must keep in mind that non-payment is a possibility. Notwithstanding your friend's reliability this friend may

Finding the Index where a stock is listed and its impact on a stock's price

I think you may be misunderstanding what an index is. An index is just a mathematical calculation based on the values of certain stocks. An index goes up when the stocks in the index go up, and down when they go down. An index is volatile when the stocks in it are v

Why do some banks charge a fee for a low account balance?

Banks are businesses. The bottom-line goal of any business is to generate profits for shareholders/owners.Banks generate revenue through various means, but largely from making loans to other bank customers and charging interest on top of the loan am

Is is possible to dispute IRS underpayment penalties?

When you say "set aside," you mean you saved to pay the tax due in April? That's underpaying. It's a rare exception the IRS makes for this penalty, hopefully it wasn't too large, and you now know how much to withhold through payroll deductions. Problem is,

Should I get a credit card if I already have a debit card?

Debit cards can be riskier than credit cards. That's why I personally avoid debit cards unless I have a very good reason to go that direction (e.g. HSA accounts). To explain the risk, consider what happens if someone steals the card or number and starts usi

Why should a company go public?

You go public to raise money, to invest in the business and/or pay off the existing shareholders. It's really as simple as that. The advantage of being public is that your shares can easily be bought and sold, and so you can issue and sell new ones and your existing

What happens if I break lease while landlord does not have my SSN?

There are cases in which some Lease agreements will allow you to exit them without charge, but you cannot simply vacate a location without paying.Cases that would allow you to leave the lease, if they are stated within the lease, are usually for reasons lik

Investing in Stocks vs CFD in safe Mode

Nothing gives a reliable 20-30% annually, especially not stocks.This is why people use margin, leverage, crypto and lose.Try to enjoy yourself! In the medium term, you should consider low risk investments. Stocks are too

Buying a brand new luxury car

By having already read multiple "I want to buy an expensive car" questions, and still asking a bunch of people with the resputation of saying, "NO, buy something cheap!!" whether or not you should "(buy) a brand new luxury car" or "

Short term life insurance between jobs?

You didn’t say your location which could matter for the insurance laws and policies available. Realistically you won’t get an issued policy in 6 days so you’d be relying on provisional coverage anyway. That is if that’s typically part of policies where you’

How to save money on bathroom overheads?

I love the bidet idea. Other than that you've got an array of tissue quality options that can impact price significantly.You could try to go for the truckstop/restaurant quality giant rolls, might save you a bit, but standard sized rolls frequently go on sa

Why do rich people prefer shares with dividend over bonds?

I don't think rich people will prefer shares(stocks) with dividend or even bonds. Because in both these cases they will need to pay taxes.I think rich people will prefer non dividend paying , high growth stocks with high beta.For middle class shoul

Are there companies who you can invest in that invest for you?

That thing is called a mutual fund. They are readily available, either as a mutual fund proper, which has rules for investing and withdrawing, or as an exchange-traded fund, which trades in real time just like a stock.

Why do people prefer to buy gold when stock market moves downward?

For the purposes of this question, let's stipulate that there is a negative correlation between stocks and gold (at least on some timeframe). The real question seems to be why it would make sense to buy gold when it has already gone up.There is a p

28 yr old male. Dropout Self-Taught Programmer. Earning $20k a month. Should I go back to college?

What do you want to do?All personal finance is based upon helping people achieve their goals. So far, you've not established any major goals... so it's going to be hard to provide any useful advice.Where do you want to live? What d