Monday, June 10, 2019

Investing in Stocks Via Webull

It seems like every few months I read about another no-cost broker.  Clearly, the days when ordinary people were relegated, because of fees, to investing in mutual funds only, are over.  Today, free stock trading platforms  like Webull make it economically feasible to buy and sell small quantities of stock, so that even a teen who wants to invest babysitting or grass cutting money can afford to buy stock in individual companies.

Webull recently sent me an invitation to do a sponsored  review of their app, and, since I already used it, I was glad to accept.

What is Webull?

Webull is a commission-free stock broker that operates via web apps, primarily those for your mobile device.  I have been using the Android version for about a year, and have found that it functions well.

What Makes Webull Different?

As I noted in the introduction, and as you can see perusing my archives, low commission and no commission brokers are the latest "thing" in the financial market.  What makes Webull different?  What is its claim to fame?

What makes Webull different is information.  While other low/no cost brokers may offer some information on the stocks you are considering, or that you own, I haven't found any that offer the amount of information Webull does.  Webull offers information on Canadian and U.S. Stocks, on Crypto Currencies and more. 

Let's say I was considering Disney stock.  What information does Webull have?

It starts with the basic price per share, open and close for the day, high and low for the year and so on, but it goes much deeper.  You can see order in-flow and out-flow.  You can see analysts' ratings, and their target price.  EPS, p/e ratio, and the support and resistance line are but some of the metrics shown.  

What?  You don't know what all that means?  Webull has that covered in its extensive learning center that covers such topics as "Looking Up a Suitable Stock" and "Comprehending Stock Charts".  

How Much Money Do I Need to Get Started with Webull?

Investing in the stock market used to be a rich person's game when trade commissions came to dollars per trade and made purchasing less than a hundred shares economically unfeasible.  Today, you can start investing with Webull for no money at all--sort of.  Webull offers a paper trading account (an account where you only pretend to own the stocks) and a competition where you can pit your stock picking prowess against that of other investors.  They even offer periodic contests and prizes.  Further, there is a forum where you can interact with other "investors". 

If you open an account with Webull you will get a free share of stock.  My experience has been that you have a much higher chance of winning a $5.00 stock than on worth substantially more,  but you have to start somewhere.  

Unlike some companies, Webull does not sell fractional shares, however, since there are no sales commissions, purchasing one share of a company is rarely a problem.  You can also buy ETFs on Webull. 

Opening an Account

Opening an account on Webull is easy.  Simply use this link to download the app and follow the prompts.  Link your bank account and it won't be long until the confirming micro deposits and withdrawals are made.  Confirm them and  you are ready to roll.  Transfer via ACH at no cost and after about a week, the money will be in your Webull account, ready to trade.  Your free share of stock will be in your account even sooner.

While the data provided on Webull can be searched and sorted to provide a list of stocks to buy, be sure to follow some of the provided links to the websites of the companies you are considering to review their products and services as well as their annual reports.  High dividends won't make up for plunging share prices. 

The money you deposit in Webull is protected by the SIPC.  That doesn't mean that your stock can't lose value, but it does mean that if Webull becomes insolvent, you will be protected against losing the stocks and cash you have invested.  

Webull on the Web


While a Windows app recently became available, it is still in Beta.  Once it fully launches, I'll review it.   If you prefer using a desktop or laptop computer to using a mobile device, you may want to give it a try, but I'm not able to comment on how well it works at this time.

Conclusion

Webull has something for both the investing novice and those who want technical information in real time.  Its educational section and paper trading accounts are a great place to learn what you are doing before jumping in with real money, and all the information that is available should satisfy the sophisticated investor.  Use this link to open your account and take Webull for a test drive.  Who knows, maybe you will be the lucky one who gets one of those $300 shares.  

Wednesday, January 2, 2019

Sale! 8% OFF with a Free Bonus!

If you walked into your favorite store and were told, that on average, you could save 8% on all your purchases, purchases you had planned to make anyway, what would you do?  What if they handed you a $25 gift card as you walked in the door?  

Would you say "Hmm, I don't like the fact that the price has come down, I think I'll wait until the sale is over" or would you say "Wow, every time I've come in here lately, the prices of the things I want have gone up.  Now that they are on sale, I'm going on a buying spree".

If we were discussing clothes or food or toys, most of us have no trouble saying that we'd buy while the stuff was on sale.  Yes, we might be tempted to wait, and see if the price would come down more, but especially for things we know we need/want, we'd probably go ahead and buy--I mean we were coming to the store to buy them anyway.

For some reason, stock seems to get another reaction out of people.  If the price falls, people run for the hills, rather than embracing the fact that stocks are on sale.

Like most other investors, we saw our net worth drop noticeably during December.  Like most other investors, we weren't happy.  However, now that January is here, I'm going shopping.

Some stocks dropped because the market was oversold and the company just isn't worth what it was selling for a month or two ago.  However, given that the market as a whole has dropped, now could be just the time to invest in those blue chip companies that aren't going anywhere, companies that seem to make money in good times and in bad.

Can you think of a few you have been eyeing?  M-1 Finance is an online broker which does not charge sales commissions.  M-1 Finance also allows you to invest in fractional shares of stock.  So, what does your ideal portfolio look like?  Some Exxon, a little AT&T, a dash of Realty Income, and for fun, how about some Carnival--oh, and don't forget Amazon and Alphabet!  What, you don't have enough money to invest in all of them?  No problem, M-1 Finance allows you to create "pies" or baskets of proportionately balanced stocks.  In this example (and I pulled these names out of thin air--I have not researched them an am not recommending purchasing them, or not) I could decide I want 16.6% of my money in each of those stocks, or I could decide I want half of it in Alphabet and 10% in each of the others, or any other combination I want.

Once I have designed my pie and funded my account, M-1 Finance purchases the shares or fractional shares for me, in those percentages.  As new money is added to the account, M-1 Finance invests it so as to keep your pie in the balance you chose.  If Alphabet goes through the roof and Exxon drops, next time you invest M-1 Finance, unless you tell it differently, will buy less Alphabet and more Exxon.  You can also hit the re-balance button and M-1 Finance will sell some of that Alphabet and buy Exxon, to get things back in balance.

M-1 Finance generally offers new investors a $10 bonus if they sign up with an affiliate link.  During January, 2019, M-1 Finance is offering a $25 dollar bonus to both new investors and those who refer them.  So, use this link to open and fund an account with M-1 finance (you only need $100) and you will get a $25 bonus, and  you give me money to shop with, now that stocks are on sale.

Saturday, December 15, 2018

6 Tax Myths That Even Smart People Believe

While I am not a CPA nor do I have any special expertise in taxes, I have found that there is a lot of mis-information out there about how US Income Taxes work, even among people who you expect to know better.  Let's take a look at some: