How to Invest

October 23, 2025Named after President Donald Trump, Trump Accounts were established under the One Big Beautiful Bill Act to help families build long-term savings for their children. Parents and guardians can contribute up to $5,000 each year for every child under 18, with the limit set to rise alongside inflation starting in 2028. Children born between Jan.… read more…

September 4, 2025Although sometimes confused as the same, there are different strategies, risks and benefits involved with scalping vs. day trading. Active traders often look for opportunities to profit from short-term price movements, but not all strategies are created equal. These two approaches, scalping and day trading, share the goal of capitalizing on intraday volatility. However, they… read more…

July 9, 2025Day trading has captured the interest of many aspiring investors, drawn by the promise of quick profits and the excitement of fast-paced market action. But before diving in, one of the most important questions to consider is: how much money do I need to start day trading? The answer isn’t one-size-fits-all, as it depends on… read more…

May 8, 2025Stocks and options are two types of investment vehicles that offer unique advantages but come with different levels of complexity and risk. Stocks represent ownership in a company, providing a straightforward way to build wealth through potential appreciation and dividends. Options, on the other hand, give investors the right to buy or sell assets at… read more…

April 21, 2025Inverse or short gold ETFs are investment vehicles designed to profit when the price of gold declines. Unlike traditional gold ETFs, which track the price of gold and increase in value when gold prices rise, inverse gold ETFs move in the opposite direction. These funds are popular among traders and investors who want to hedge… read more…

April 17, 2025Emerging market debt offers an opportunity to tap into the growth potential of developing economies. This asset class consists of bonds issued by governments and corporations in countries with emerging financial markets. While they can offer higher yields than traditional U.S. or developed market bonds, they also come with greater risk. A financial advisor can… read more…

March 25, 2025Accredited investor 501(d) status is defined under Rule 501 of Regulation D. It outlines the financial criteria that individuals and entities must meet to participate in certain private securities offerings. Generally, individuals qualify with a net worth exceeding $1 million excluding their primary residence or an annual income of at least $200,000 ($300,000 for joint… read more…

March 11, 2025Purchasing power parity (PPP) is an economic concept that compares the relative value of currencies by examining the cost of identical goods and services across different countries. It helps determine whether exchange rates accurately reflect differences in price levels, offering a way to assess a currency’s true buying power. PPP is often used to compare… read more…

February 27, 2025Perpetual bonds have no maturity date, allowing them to pay interest indefinitely, making them appealing for long-term income. They come in different types, such as government and corporate bonds, each with varying risks and interest rates. To understand potential returns, investors should know how to calculate yield, which is found by dividing the annual interest… read more…

February 27, 2025Short covering is a stock trading phenomenon that occurs when traders who have previously sold a stock short buy it back to close their position. This process can drive up the stock’s price, especially if multiple traders rush to cover their positions at the same time. Short covering often happens when unexpected news or price… read more…

February 25, 2025Accredited investors must meet financial criteria set by the SEC, allowing them to invest in private offerings such as hedge funds and private equity. A sophisticated investor, on the other hand, does not need to meet these financial requirements but must demonstrate sufficient knowledge and experience to evaluate investment risks. When comparing the key differences… read more…

February 25, 2025An accredited investor letter is a document that verifies an individual or entity meets the financial criteria required to qualify as an accredited investor under U.S. Securities and Exchange Commission (SEC) regulations. Investors can obtain an accredited investor letter by providing financial statements, tax returns or brokerage account details to a verifying professional. Many private… read more…

February 25, 2025A non-accredited investor is an individual or entity that does not meet the financial requirements set by the Securities and Exchange Commission (SEC) for accredited investor status. This typically means having a net worth below $1 million (excluding a primary residence) or an annual income under $200,000 for individuals, or $300,000 for joint filers. Non-accredited… read more…

February 25, 2025An accredited investor is an individual or entity that meets specific financial criteria giving them access to private investment opportunities not registered with the U.S. Securities and Exchange Commission (SEC). Typically, individuals qualify as accredited investors by having a net worth exceeding $1 million, excluding their primary residence, or an annual income of at least… read more…

February 14, 2025Baby bonds are fixed-income securities issued by government entities and corporations, offering regular interest payments and a predictable return backed by the issuing authority. Often available in denominations under $1,000, these bonds are accessible to a wider range of investors. In the U.S., the term “baby bonds” sometimes also refers to publicly funded savings accounts… read more…

February 13, 2025A bull put spread is an options strategy where you sell a put option at a higher price and buy one at a lower price for the same asset and expiration date. This helps generate income and limits losses, making it good for traders expecting small price increases or stable prices. The most you can… read more…

February 13, 2025A buy limit order is a stock market order where investors set a maximum price for buying a security. This method lets investors control their purchase price and avoid paying too much in volatile markets. Unlike market orders that execute at the current best price, buy limit orders only fill if the stock’s price reaches… read more…

February 13, 2025A bear call spread is an options strategy where you sell a call option at one strike price and buy another at a higher strike price for the same stock and expiration. This approach caps both potential profit and loss, and provides upfront credit. Traders use this method when they expect the stock price to… read more…

February 13, 2025A trust indenture is a legal agreement between a bond issuer and a trustee, such as a bank, that outlines the terms of a bond issue. It details the issuer’s responsibilities, the rights of the bondholders and how the trustee monitors the issuer’s compliance. This document helps maintain transparency and protect investors from potential defaults.… read more…

February 12, 2025A bull call spread is an options strategy used to profit from moderate increases in the underlying asset’s price while limiting risk. It involves buying a call option at a lower strike price and selling another at a higher strike price, both expiring on the same date. The cost to enter this trade is the… read more…

February 11, 2025Sovereign bonds are debt securities issued by national governments and are typically seen as safe investments, especially those from economically stable countries. They provide fixed income returns, making them attractive for conservative investors looking to diversify their portfolios. If you’re considering sovereign bonds, a financial advisor can help you choose options that align with your… read more…

February 11, 2025A retracement in investing refers to a temporary reversal in the direction of an asset’s price that occurs within a larger trend. It represents a short-term dip or pullback before the asset resumes its previous trajectory. Traders use retracements to identify potential entry points, often relying on technical analysis tools like Fibonacci retracement levels to… read more…

February 6, 2025Investors can evaluate economies of scale to determine if a company can increase profitability and stay competitive as it grows. This happens when a company reduces production costs by producing more units, which can spread fixed costs or enhance operational efficiencies. Understanding how companies scale operations helps investors assess their growth potential and competitive position.… read more…

February 5, 2025Autocorrelation, a statistical measure that evaluates the relationship between a variable’s past and present values, can provide insights into patterns and guide investment decisions. By analyzing how a financial instrument’s returns correlate with its previous performance, investors can identify potential trends or repetitive behaviors that might otherwise have gone unnoticed. This technique is often used… read more…

January 30, 2025Most individual investors cannot invest in private companies that have issued shares of stock without registering the shares with the Securities and Exchange Commission. The exception is someone who meets the income, net worth or financial sophistication requirements to be an accredited investor. Many financial advisors qualify as accredited investors because of their professional training,… read more…