Introduction to Forex Trading - NerdWallet

I'm a 30 year old Teacher with 8k savings, I'm looking to invest some of it somewhere, and start a new career. Teaching is fun but it's draining and doesn't pay enough.

Hi everyone! I have low-income, 35k-50k depending on if I work 2 jobs. My expenses are less than 1k a month, I don't pay rent yet, I have a 750 credit, low utilization on credit cards, no 401k or IRA. I have some precious gemstones and pokemon cards as assets lol Some people were saying learning day trading can be good long term, or getting into wholesaling real estate. I don't know though. I live in the North-east of USA. I can maybe move down south where my money might stretch more. I'd be nice to turn 5k into 10k through investments and find a new job that pays more than 60k so I have more buffer money but I'm not sure if that's possible. It took me so long to save this little bit amount and don't want to lose it
I appreciate any advice or opinions
Thanks all for responding. I will definitely implement the advice given! Sorry for the lack of details in the post, my first time posting here. I'm not a traditional teacher. I'm a Bachelors's level ABA Therapist, I work with people who have autism and it pays 35k before taxes. I'm also a live-in aid to an adult who has autism (hence no rent) that pays 12k after taxes. I haven't worked as an ABA Therapist for a year because I was learning Digital Marketing. I ended up not liking it. I live in NJ, very close to NY. I will go back to get an ABA Job soon so I can save. My cousin flips properties in NJ and Florida so he's the one who told me about wholesaling real estate. He just started day trading Forex and said he's made money on some trades. That's where I got that idea from. I have a Robinhood account with 100 in there that jumped to 119, and I have 300 in bitcoin that I haven't checked in a while. For reference, The little financial advice I've got is from my dad who grew up dirt poor. He's not poor anymore from working hard and saving but he's not much of a sharer. I used to track my monthly spending and I have an excel sheet with my checking, saving, bill dates, and monthly and yearly slots to add numbers and see how the numbers change. But yeah I don't know much and I want to learn...I guess also worth noting I've made a lot of unwise impulse purchases. Vacations, clothes, video games, events, restaurants, shoes, books, alcohol, electronics.
submitted by spacedragonn to povertyfinance [link] [comments]

I'm a 30 year old Teacher with 8k savings, I'm looking to invest some of it somewhere, and start a new career. Teaching is fun but it's draining and doesn't pay enough.

Hi everyone! I have low-income, 35k-50k depending on if I work 2 jobs. My expenses are less than 1k a month, I don't pay rent yet, I have a 750 credit, low utilization on credit cards, no 401k or IRA. I have some precious gemstones and pokemon cards as assets lol Some people were saying learning day trading can be good long term, or getting into wholesaling real estate. I don't know though. I live in the North-east of USA. I can maybe move down south where my money might stretch more. I'd be nice to turn 5k into 10k through investments and find a new job that pays more than 60k so I have more buffer money but I'm not sure if that's possible. It took me so long to save this little bit amount and don't want to lose it
I appreciate any advice or opinions

Thanks all for responding. I will definitely implement the advice given! Sorry for the lack of details in the post, my first time posting here. I'm not a traditional teacher. I'm a Bachelors's level ABA Therapist, I work with people who have autism and it pays 35k before taxes. I'm also a live-in aid to an adult who has autism (hence no rent) that pays 12k after taxes. I haven't worked as an ABA Therapist for a year because I was learning Digital Marketing. I ended up not liking it. I live in NJ, very close to NY. I will go back to get an ABA Job soon so I can save. My cousin flips properties in NJ and Florida so he's the one who told me about wholesaling real estate. He just started day trading Forex and said he's made money on some trades. That's where I got that idea from. I have a Robinhood account with 100 in there that jumped to 119, and I have 300 in bitcoin that I haven't checked in a while. For reference, The little financial advice I've got is from my dad who grew up dirt poor. He's not poor anymore from working hard and saving but he's not much of a sharer. I used to track my monthly spending and I have an excel sheet with my checking, saving, bill dates, and monthly and yearly slots to add numbers and see how the numbers change. But yeah I don't know much and I want to learn...I guess also worth noting I've made a lot of unwise impulse purchases. Vacations, clothes, video games, events, restaurants, shoes, books, alcohol, electronics.
submitted by spacedragonn to personalfinance [link] [comments]

Forex trading to day trading.

For a while now, probably close to a year I’ve had a demo account that I’ve practiced with at work. I’ve done pretty well, nothing to brag about but quite a bit better than my old 401k did in the same span. I’m lucky enough that I have a job where I have plenty of free time to practice forex at work. The issue is I work midnights and that doesn’t allow me to practice day trading. My eventual goal is not to become a full time day trade, but to take an old 401k that I have that around $40k and invest it myself. As far as I’ve found I can’t use a 401k to trade in forex as I can in the stock markets. How well do forex trading skills translate to trading in stock exchange. I’m not a scalper and my trades usually last a couple days. Thanks.
submitted by Adam_1775 to Forex [link] [comments]

I did it.

12 years of disciplined boring investing almost all in SPY and later VOO and I am a millionaire in my late thirties.
900k from index funds and 200k from real estate.
Started with zero. No inheritance. Separate money from my wife (not counting her assets or contributions). Made mid five to low six figures income the whole time. One kid... now two.
edit 1
I actually did not thing anyone would respond to this but a lot of people did. Some asked for proof. Here it is. Omitting real estate holdings. https://imgur.com/a/zI9UWJa
Also including credit report - no debt outside a used car loan because I will not pay cash when I get money at 3.49%.
Edit 2
People asked for more details.
At a high level I have been investing / studying markets since I was very young. I tried everything (internet stocks, FOREX, Options, Futures, small caps etc) coupled with fundamental and technical analysis. Did OK, even won second place in a trading contest but never got what I wanted.
Like many people I made bad decisions and had divorce, job loss, etc. Even had to close out an IRA in my twenties.
Ended up turning to a disciplined index fund strategy about 12 years ago.
Strategy was to max out 401k and live below my means (old car, no cable tv, make my own food, etc). At the end of each month swept all my pennies into an after tax fund since my 401k was maxed. That is it. Make your own coffee and buy VOO or SPY ideally in a tax advantaged account.
I road this through the 2008/2009 crash - kept my investments and bought more.
I also have small (like 5% of my money) in Bitcoin, Tesla and Pot stocks. This is purely for fun.
A couple people mentioned this was just luck. I think it is important to understand the market will move up, retrace, consolidate and then move higher. The timing of this is somewhat luck. The strategy part is live below your means, buy and accumulate positions for years so when a bull market hits you are in. I guess you can call each runup "luck" except people keep living in debt no matter what their income. I would much prefer people take away an investment strategy that does work if you are a disciplined from someone not born rich and who tried a lot of different strategies.
The takeaway really is with education and discipline you can reach a level of financial independence even after many screwups. I can publish this simple system and honestly few will follow it... There are no ads, systems to buy or affiliate links. I make zero dollars sharing this. I make my own coffee and watch netflix. I invest the rest in index funds. Take a trip or buy something if it really is important to me. That is it.
Edit 3
People asked what is next. Teach my six year old and newborn savings and investing. Opening a ROTH* for the 6 year old and custodial brokerage account for the new addition. They will have millions as a safety net at retirement. They will now know about this money and will need to find their own path in life.
Staying in the market, if it crashes I will buy more.
Stating in until I reach 5-10 million. Don't need the money for a long time...
submitted by ControlPlusZ to investing [link] [comments]

Wish someone told me this early on.

Sound advice: 1. If you have a 401k and you’re young, choose a 75/25 stocks/bonds split and leave it alone. Don’t even look at it again until you’re 5 years from retirement. Let the pros handle that 2. If you are actively trading in the market, do exactly that. Be active. Now is a great time to buy stocks. Yes the market may take another dip. That’s what stop limit orders are for. Again, be active and watch the market. 3. Buy the dip, but know about the company you’re buying. Ask yourself, “Could the company go out of business? Or will it recover?” Good example is companies that were already doing well, with stocks that went down because they just bought another company. 4. Follow the trends. In the current market, do you really think folks are going to stop going places and buying stuff after this pandemic is over? No they aren’t. So look at anything involving travel. 5. Be prepared for volatility. All stocks fluctuate. If you’re trying to make fast money, do not waste your time with investments. 6. If you’re looking to day trade, try options or forex, and be prepared to lose whatever you bet immediately. It is exactly that. A bet. When you lose it’s gone. Unlike stocks that still hold value during a dip. 7. RESEARCH!!! Some folks want stocks to go up. Others want them to go down. There are articles that present an argument for both sides. Make sure to look at a companies SEC filings (available on their websites under investors/investment).
submitted by swurllife to RobinHoodPennyStocks [link] [comments]

If you’re thinking about picking up trading from a place of financial desperation, stop.

Hopefully this will reach at least one person, a lot of folks have seen their 401ks nuked or just had their income cut close to zero. You look online for ways to make money at home and stumble across forex trading, an endeavor where 95% of traders fail in the long term and the liquidity of newbies is exploited to fill the orders of the more experienced. If you ever go in to trading with the mindset that you NEED to win the next few trades to pay off that next bill, consider the money already lost. A massive part of being successful in trading is mindset, as soon as desperation kicks in you force yourself to close your winners early and think letting your losing trades run is a good idea.
When trading from desperation as a complete beginner, you typically follow the Dunning Krueger curve to the letter
https://onlinepethealth-info.com/wp-content/uploads/2019/12/Dunning-Kruger.jpg
You have your euphoric high at the peak of mount stupid, and will quickly feel the crippling suffocation at the valley of despair. “You drank deep and you paid the price.”
Then it’s time for you to climb the slope of enlightenment. However, the only tool in your toolset is your shovel that you use to get to the bottom of the pit of despair. If you insist on using what you only know as a beginner, that shovel will dig deeper than you were. I swear to god if you keep trading before you take the time to learn you’ll lose everything.
It’s a slow climb, you aren’t ever going to get that high of paying your bills through your incredible, home brewed strategy and wits alone anytime in the next year unless you insist on degenerate gambling. You are not the outlier. Sit back, complete the entire babypips course, and don’t use any tool without being able to answer “what is the fundamental paradigm driving the efficacy of this tool?”
Your desire for trading should stem from a passion for the art of the execution, not the desire for short term gains. You don’t buy a guitar and go street performing the first week. If you bought the guitar to make money, sure, you can once you master it. But if you head out your first week, you’re going to embarrass yourself find yourself in debt.
Good luck! 95% of traders fail because they insist they have nothing left to learn no matter where they are on the Dunning Krueger Curve, which is a poor choice in a fluid and evolving market condition. A true master is an eternal student, you can do it, just don’t plan for profitability any time in the next year. Never trade with money you CAN’T AFFORD TO LOSE. THAT MEANS THE MONEY FOR NEXT MONTH’S BILLS. Go forth! Your 401k will be worth more five years from now than it was at the peak a few months ago. If you don’t have a genuine passion for trading, just wait it out!
submitted by FallacyDog to stocks [link] [comments]

If you’re thinking about starting trading from a place of financial desperation, stop.

Hopefully this will reach at least one person, a lot of folks have seen their 401ks nuked or just had their income cut close to zero. You look online for ways to make money at home and stumble across forex trading, an endeavor where 95% of traders fail in the long term and the liquidity of newbies is exploited to fill the orders of the more experienced. If you ever go in to trading with the mindset that you NEED to win the next few trades to pay off that next bill, consider the money already lost. A massive part of being successful in trading is mindset, as soon as desperation kicks in you force yourself to close your winners early and think letting your losing trades run is a good idea.
When trading from desperation as a complete beginner, you typically follow the Dunning Krueger curve to the letter
https://onlinepethealth-info.com/wp-content/uploads/2019/12/Dunning-Kruger.jpg
You have your euphoric high at the peak of mount stupid, and will quickly feel the crippling suffocation at the valley of despair. “You drank deep and you paid the price.”
Then it’s time for you to climb the slope of enlightenment. However, the only tool in your toolset is your shovel that you use to get to the bottom of the pit of despair. If you insist on using what you only know as a beginner, that shovel will dig deeper than you were. I swear to god if you keep trading before you take the time to learn you’ll lose everything.
It’s a slow climb, you aren’t ever going to get that high of paying your bills through your incredible, home brewed strategy and wits alone anytime in the next year unless you insist on degenerate gambling. You are not the outlier. Sit back, complete the entire babypips course, and don’t use any tool without being able to answer “what is the fundamental paradigm driving the efficacy of this tool?”
Your desire for trading should stem from a passion for the art of the execution, not the desire for short term gains. You don’t buy a guitar and go street performing the first week. If you bought the guitar to make money, sure, you can once you master it. But if you head out your first week, you’re going to embarrass yourself find yourself in debt.
Good luck! 95% of traders fail because they insist they have nothing left to learn no matter where they are on the Dunning Krueger Curve, which is a poor choice in a fluid and evolving market condition. A true master is an eternal student, you can do it, just don’t plan for profitability any time in the next year. Never trade with money you CAN’T AFFORD TO LOSE. THAT MEANS THE MONEY FOR NEXT MONTH’S BILLS. Go forth!
submitted by FallacyDog to Forex [link] [comments]

Profitable traders where do you invest earnings

TL:DR Where do people who make consistent profits invest your money or do you just keep scaling

I've been trading for about a year now, and I've had awesome success (about 19%) at least to me anyway. My account is currently about $6300 USD. I have a good paying full time job that I really enjoy and have zero thoughts on leaving it to ever become a full time trader (well who knows, maybe someday). My question is this. I plan to take my account to around $10k over the next couple years and then start withdrawing any earning out at the end of each year. I effectively want forex trading to be a boost to my retirement income over the next 25 years until retirement. Perhaps if my success continues I will scale up my trading, but the mental aspect of the draw-downs with accounts 10x mine seem just brutal. I currently max my 401k and the wife and my Roth for the year, but that's where i meet my income limitation currently for investing.
To the point where do you successful trader invest your income from trading, or do you just keep scaling because you're able to return consistent profits much higher than market averages?
submitted by Adam_1775 to Forex [link] [comments]

Rolled Over 401k to IRA with Trust Company, Started LLC, got IRA funds distributed to LLC

It's my money. I'll do what I want with it. But how to do this without making Uncle Sam mad and not taking a penalty for early withdraw? Found this avenue on accident when looking for a Forex broker.
Found a local trust company, explained to them I wanted to trade Forex (and possibly invest in more rental properties when that market takes a crap) and wanted to know how I could use my old 401k (403b) to accomplish this.
Here are the steps in crude form:
You CANNOT distribute any of this money to yourself (legally). Any brokerage accounts or real estate would have to be purchased under the LLC. Waiting on the distribution from the Trust to the LLC bank account as I type this.
You can also keep contributing to that IRA and passing it through to the LLC and claim tax deductions if you're eligible.
For now I plan on doing standard long term stock investing, possibly throw some at BTC, and invest in another rental property.
submitted by pepper167 to personalfinance [link] [comments]

Mario speaks: Congress should listen up

Mario speaks: Congress should listen up submitted by AngelaMotorman to politics [link] [comments]

Anyone doing automated trading? I really need a piece of advice

Hello everyone!
At the beginning I would like to tell something about how I came here.
I'm 23 years old software developer and I have to admit, that I really like my job, at least for now. It's hard to predict what will happen in next few years, but I think that life is just too short to spend half of it in a 9-5 job living frugal and then spend most of my savings to build a house of my dreams when I'll be about 50 years old and blow my retirement (in my country there is no such thing like 401k, it looks more like a money stealing organization, so I count on myself). This is not how I want to live and it's my main motivation why I started learning to trade.
So I started learning Forex, because of it's liquidity and high leverage. I know it' not the easiest market to undestand, but who said it's going to be easy?
I learned the basics and how it works and I also learned that trading on lower time frames is harder, but it can be much more rewarding. That's what I was looking for.
At the first I was fascinated by price action trading. The concept that I need just a price chart and no indicators sounds cool. But there are some disadvantages:
- There is a really strong human factor. When looking at the chart, someone will say that he sees a buy oportunity and another one that it's clearly short. Chart can be interpreted in many ways when we trade with price action.
- Most volatile periods are when I'm at work, so it's hard for me to practice
I know that price action trading can be very profitable, but I think it just doesn't fit me.
I wondered if I could connect my programming skills with trading and started to learn about algorithmic trading, but there isn't as much resources as in manual trading.
I'm not interested in HFT (High Frequency Trending). It's probably even not possible to make a profitable HFT robot for a normal person without super fast internet and close connection to source. I would like to make a trend catcher for lower time frames that would make just a few trades a day. I learned some mql4, made my first trading robot (not very effective), wrote some indicators to notice some correlations and I'm just playing a bit right now.
But I think that it's time to pause and think about it. Now it's time for my questions (finally).
Basically, there are two main opinions:
  1. To write a profitable robot, you need to know as much as possible about how markets work, how they work together on a very deep level. Learn and read everything and maybe in a few years you will know enough to gain profit from it.
  2. Most profitable robots are as simple as possible. Just stick to technical analysis, risk management, probability etc.

What' your opinion about that? And more importantly, is it worth to give it a shot? Sometimes I think that I just waste my time, because I know I can make a lot of money as a software developer and I should focus to improve myself in that particular thing. But it was never about money. It's all about freedom. I want to travel, I want to drive cars most people can't afford (not to show off, I just love driving) and build a house without spending savings of my life on it.
I will appreciate any feedback :)
submitted by Eksagnem to Daytrading [link] [comments]

Looking for advice to generate some income streams through Etrade (US)

Hey Everyone, I was hoping to get some advice on how to generate some revenue streams utilizing my etrade account. Any advice would be helpful, here's some background. As far as my portfolio goes, I suppose it's pretty non existent. I have a few healthy 401k's, and some Rollover IRA's housed with Etrade and of course a savings. I also have another portfolio within my etrade that I use for investments, but it's primarily playing around with stocks that are generally long term investments. what i'd like to do is utilize my etrade account to start generating some revenue monthly. I have low expectations and i'm not looking to live off of this, but instead learn and generate a couple hundred bucks a month and eventually of course more. I'm not necessarily looking to day trade, so here's where the question comes in; is there anything i can do along the lines of buying into perhaps ETF's or mutual funds that would be liquid enough for me to net some profit from? for example, could i start with a lump sum of a couple of thousand dollars and buy into 1 or multiple ETF's or mutual funds that i could extract the daily/weekly/monthly gains and either reinvest it or withdraw it, pay the taxes and use the rest for bills etc?
is there any other advice or suggestions that would involve generating more liquid gains from a higher investment monthly? example, starting with a lump sum of a couple of thousand and every paycheck having a couple of hundred dollars withheld to add into the investment? perhaps dollar cost averaging? Forex trading? net net, how can I make my money work for me, even just a little?
submitted by SpiderCapMan to personalfinance [link] [comments]

Introduction to investing as a U.S. citizen residing in Japan

[meta: I ask for help in making sure this information is accurate and correct. Please contribute as you see fit!]
WARNING!! I am not a lawyer, accountant, or broker, nor do I have any experience or training in any of those fields. ALWAYS confirm with a professional before taking any advice you read on the internet.
Foreward
If you're old enough to pay taxes, you should start investing. The earlier, the better.
Here’s another example to illustrate the enormous benefit of getting an early start. At age 25, Eric Early invests $4,000 per year in a Roth IRA for 10 years and stops investing. His total investment is $40,000. Larry Lately makes yearly deposits of $4,000 in his Roth IRA starting at age 35 for 30 years. His total investment is $120,000. Assuming both portfolios earn an 8 percent average annual return, at age 65, Eric’s IRA will be worth $629,741, but Larry’s IRA will be worth only $489,383. By starting 10 years earlier and making one third of the investment, Eric ends up with 29 percent more.
- quote from "The Boglehead's Guide to Investing"
Target audience
This is an introduction for U.S. citizens with residency in Japan who want to do long-term investing in U.S. equity (stocks, bonds, etc.).
Disclaimer
This advice may not be accurate for citizens of countries other than the U.S. or for those U.S. citizens living in Japan who work for the military or are only temporarily living and working in Japan as affiliated with a U.S. company. This is also not advice for ForEx or day traders looking to make money. Nor is it advice for what to invest in. This is also not advice for investing in the Japanese stock market.
This is just one way to invest in U.S. equity from Japan. There are other ways.
Assumptions
  • You're a U.S. citizen
  • Your income is in JPY
  • You want to invest in U.S. equity (stock market, bond market, etc)
  • You have basic knowledge about taxes and tax-related terms
  • You have at least $10,000 USD to invest (or $3,000 USD if age 25 or younger)
Background
I am an ordinary guy living in Japan. I have disposable income and, rather than pour all of it into my local izakaya and Philipino hookers (who hang out in front of Mister Donut at night and ask if I "want the massage?" (just kidding, really!)), I wanted to invest in my future by saving for retirement. I'm an early 30's-year-old guy and spent about a month reading up on investing and then set off trying to invest as a resident of Japan.
My Story
I moved to Japan 3 years ago after working in the U.S. I have an IRA leftover from my time in the U.S., but never contributed to it since moving to Japan (thankfully - find out why in a bit). I recently saw a post from /personalfinance (seriously, go read information in that sub if you want to have more money upon retirement or just get out of debt!) and decided to read the book "The Boglehead's Guide to Investing" based on recommendations there. After that, I started looking into my options for investing from Japan.
Before I left the U.S. for Japan, I rolled over my 401k into an IRA using Vanguard (arguably the best broker available for U.S. citizens). Since moving to Japan, I had not contributed anything to my IRA. So, the first thing I wanted to do was start contributing to my IRA again, and use any remainder to invest in U.S. equity. Turns out this is not as easy as it sounds.
I found out that in order to legally contribute to my IRA, I had to pay U.S. taxes on my income used to contribute to it. Well, if you're like me and don't make an awful lot of money, you're probably filing with Foreign Tax Credit/IRS Foreign Earned Income Exclusion. This stuff basically let's you deduct all your taxes in Japan, as it on Japanese income and you already paid glorious Nippon taxes on that income. For me, this basically meant that I owed the IRS absolutely nothing every year. Great! Right? Buuuuut since I didn't pay any U.S. tax on my income, I cannot use it to contribute to my IRA! Dammit! (But actually a blessing in disguise because if I had been contributing to my IRA, I would have been breaking U.S. tax law because I didn't pay taxes on it.)
So, I started looking into other ways to invest: the U.S. stock market, bonds, etc. After reading The Boglehead's Guide, I knew I wanted to invest in Vanguard's mutual index funds. My first instinct was to open a brokerage account (which is different from your IRA account) with Vanguard. I started filling out the online form, but ran into issues. You have to specify a U.S. address. Also, you have to specify your U.S. employer. I had neither of these, so I called Vanguard (from Japan at a ridiculous call charge) and spoke with someone about doing this. They gave me the OK but said I'd have to submit a paper form through snail mail, and sent me a PDF to fill out and mail in. I mailed it (from Japan using EMS which was like $20..), and got a call about a week later. Surprise! Because I'm not working in Japan temporarily for a U.S. company or living on a U.S. military base (considered U.S. soil, I assume?), I actually can't open a brokerage account with them. Dammit again! What a waste of money calling them and mailing the form overseas.
So, I started looking into other options. I read about a few other brokers and most people agreed that I should either use Fidelity or Interactive Brokers. I had never heard of Interactive Brokers and honestly they seemed scary at first, so I decided to go with Fidelity, who I had actually heard of and is a U.S. based firm. I created an account with Fidelity, but once again ran into roadblocks when trying to open a stock trading account. I didn't have a U.S. address or employer, and actually wasn't able to link my U.S. bank account with them either (for reasons unknown). Dammit once again!
So, I started reading more about Interactive Brokers. Okay, it's still a little scary, but there are positive reports about using them online. I signed up for an account with minimal hassle, linked up my bank account, was able to transfer money over to them, and then successfully bought U.S. shares! Sweet success! Finally!

How to Invest

Part I: Contributing to your IRA
If you do not have an IRA, you probably should, as they are your basic investment option and tax-friendly to boot. However, good luck setting one up as a resident in Japan! Vanguard will happily babysit an IRA you opened prior to leaving the U.S., but they will not let you open a new one with a foreign address. I don't know about other brokers such as Fidelity or Schwabb, but it's probably the same story there.
If you are like me and happen to have an IRA leftover in the U.S., you CAN contribute to it, but in order to do so you must not deduct your Japanese tax on your IRS 1040 or file Form 1116, "Foreign Tax Credit". In other words, you must pay U.S. taxes on any income used to contribute to the IRA.
Refer to your broker for how to actually get the money to them from Japan.
Part II: Investing in U.S. Equity from Japan
Using Interactive Brokers
First, let me tell you a little bit about Interactive Brokers (IB). They are a service mostly used by regulaprofessional traders. The fees are very low and reasonable. However, they have a service charge of $10/month if your commission is equal to or less than $10 USD in that month. This is probably not a problem for people over 25 years old investing with $10,000+ USD, but for people 25 and under with an initial investment of $3000, it's possible you might not make the minimum commission per month. Beware of this fee.
IB lets you fund the account from many different currencies, regardless of what market you are buying (this needs confirmation, but seems to be accurate). So, whether you have a U.S. bank account or a Japanese bank account, you can fund the IB account. You can even fund from both.
IB does not let you invest in U.S. mutual funds. This sounds like a deal-breaker, but it's actually not. You can still invest in U.S. ETFs. This includes Vanguard's total stock market index ETF, total bond market index ETF, etc.
IB has an iPhone app that is pretty good and probably an Android app too. Although, as someone doing long-term investing for retirement, you probably don't need this and don't want to be checking your account too much (refer to /personalfinance as to why).
IB has multiple account types. You will probably see IBLLC and IBSJ. The differences are two-fold: First: an IBSJ is only used to trade Japan domestic equity. You don't want this because you want to trade U.S. equity. Instead, IBLLC is used to trade overseas (U.S. equity). Second: as of 2016, IBJS requires your My Number information, but IBLLC does not. Again, you don't want IBJS, so don't worry about the My Number information.
Open a "Japan Resident Individual Account for IBLLC" account online. This is a lengthy process. Make sure you have the required information.
  • You will need to send info about your current address in Japan, your 在留カード (zairyuu/"gaijin" card), job information, bank account information, and so on. I got confused and sent my My Number card information as well, but this only caused a hiccup in their process and I was told to remove it. Don't submit your My Number information.
  • You need to choose your base currency. Your base currency determines what currency you trade in and receive dividends/money from selling in. I think you need to specify USD here, but not sure. I chose USD because U.S. stocks are in USD and I used my U.S. bank account to intially fund my account. It may not matter, but this needs confirmation.
  • You need to specify that you have trading experience. I forget the actual numbers you need to put into the form, but make sure you put enough experience that allows you to trade ETFs overseas. You can fiddle with the numbers right there in the form, and options open up as you change the numbers. Play with it until it's just right. This part is hazy, and just seems to be some safeguards for IB so that new investors can't sue/blame IB for their own trading stupidity when they lose all their money. If you really don't have any experience trading, IB offers virtual "fake" accounts you can use to play around with trading. I suggest you try it.
After about a week you should have your new account. The next step is funding it, or you may have selected to fund it up front when you created the account so it may already be done. Anyway, the easiest way is to have IB request the wire transfer from your bank. I did this. It was really annoying, but it took about another week or so to go through. Beware that you probably can't start buying right away and need to wait for the transfer to clear.
Congratulations! You're ready to start buying now. Refer to /personalfinance in what to invest in. Remember that you are limited to buying ETFs and a few other things, and not mutual funds (but you can get their ETF equivalents).
Using
TBD... (anyone want to fill this out?)
Part III: Taxes
You need to declare and pay taxes on your dividends and any capital gains you make. Beware.
TBD... (this is arguably the most important part, but I just don't have time to go into it now. Someone feel free to help!)
TL;DR: Open an account with Interactive Brokers online and buy ETFs.
submitted by crab_balls to japanlife [link] [comments]

How Should I Use My Money to Make More Money?

I've spent so much time (~10 months) just researching different methods of generating additional income, that the opportunity cost alone was doing damage. I'm 27, have a stable income with a 401k (~$600/mo), recently started a Roth IRA ($200/mo), and a taxable account ($200/mo). My risk tolerance is 9/10.
It seems every time I'm about to jump into an "investment" I come across a few threads with 20+ people bashing the idea.
I nearly pulled the trigger on a couple non-local investment properties but was outbid multiple times by cash buyers. I am currently renting but live in the Bay Area so owning a home just isn't very affordable or worth the risk IMO.
I've had a touch of experience FOREX trading and wouldn't mind using the demo account for several months until I can generate an income on a somewhat consistent basis. But I get lost in all of the pros/cons, advice, regrets, etc.
I've also looked into: day-trading stocks, starting an online business for Amazon FBA, mutual funds, rental properties, real estate funding, peer-to-peer lending, etc.
I'm willing to put in plenty of work and not looking for a get-rich-quick scheme or to quit my day job. I could invest $3k to $40k depending on the approach, generating passive income would be most preferable but willing to put an hour or two each day as well.
What are your thoughts?
submitted by rossim22 to personalfinance [link] [comments]

New job or trading?

Hello all!
I'm a 23 year old male who has been in the workforce since HS, most of that time being in my father's convenience store so little to nothing to show for that.
I've known that I want to branch into the territory of self-management and self-reliance for quite some time now but I'm stuck in a bit of a rut. I currently work for a temp agency as a shipping clerk for a 3PL. The pay definitely isn't bad for my age/position/experience (~$15/40hrs), but I find, regardless of anything, I kinda dread going into work everyday. I usually find this irritability to fade by the time I've been there for a few hours, but it's def. not something I look forward to in the mornings. That and my hours usually mean I'm getting off in the dead of the night; a lifestyle that I've lived for quite some time and am not at all a fan of. I find it to be really bad for social life, general sleep pattern, and overall sense of wellbeing. The other shipping clerks aren't really in a position to work these hours with their schedules.
For a long time now, I've been reading up on plenty of PF material; investing, business building, and the like. Especially trading. I've adjusted my PF habits a lot. Whereas I used to get $1.6k untaxed from pops' store and spend nearly all of it, now I save nearly everything I can. I have a Wealthfront account that I deposit a few hundred into every month. I'll soon get my 401k and, potentially, a Roth IRA. Have an excel sheet I update with all expenses and capital. It's been a big improvement, at the least, to me. I have very few expenses (live with rents) and only really tend to spend on eating out (which I'm curbing bit by bit with mealprep), gas, and necessities such as toothpaste/shampoo/deodorant/etc.
What I want to ask is, should I utilize a networking/job searching course I have that retails for a few k, or should I continue to study and slowly branch out into trading? FOREX is what I'd like to do and I study it very, very much. I don't want to dive into trading trading until I feel like I have a really solid base level by which to leap from. The general concepts of chart analysis and risk management are very appealing to me, but I don't know if I should really use that as a rationale by which to dive into such a new and foreign system.
What are your thoughts? Am I better off sticking with and riding out my position? Despite my nearly every never-being-on-time issue (which I'm no longer going to let happen), my supervisor has noticed my general speed (i.e. hoards of Windows shortcuts) and novice PC expertise to locate things within our IMS and find information for truck loads. When we get heavy loads from a big account, I update the manager of the facility via email with entry/exit times, etc. - He sent me a personal email (on work email) telling me that he's happy to have a mind as sharp as mine and is always open to direct communication about ways to improve efficiency. That gets me excited and makes me want to dive 200% into learning everything about this business and seeing where I can offer suggestion; but I'm still technically a temp, not even part of the company.
submitted by yesim2sp00ky4u to Entrepreneur [link] [comments]

Over the last several years I have been self-employed with my own job and have slowly but surely been saving up money. Now... I don't know what to do with it.

Hi PF, some questions here. Alt account to protect myself.
Total = $2100-2300 monthly expenses. This varies wildly, but the averages are pretty accurate.
I have about $40,000 in my checking account and $16,000 in my savings account with nothing to do with it.
I have no debt of any kind, credit score is ~760 and I don't have any big necessary purchases coming up like $2500 in car repairs. I'm not planning to stop renting and buy a house for 5+ years. I don't have enough for a 10-20% down payment anyway.
I have read this sub for years and have browsed most of the quick-access material on the right pane. I do not need budgeting advice, I've done perfectly fine myself for years. What I am looking for are some tips on how to properly invest and secure the savings I have acquired considering my... somewhat unique situation given that I am self-employed.
The questions I have are:
My emergency fund is large because of the seasonal nature of my job, I have $16,000 in a low-yield savings account set aside for this. Is there a way to park money that gives a higher yield than 0.01%; yet still retains the ease of access that is needed from an emergency fund? I have seen high-yield savings accounts around 1.3%. What about short-term government bonds? I have $20k+ of credit card limits and will still have thousands in my checking account, if push came to shove I would easily be able to wait for 3-6 months until a higher yield but less accessible form of invested money became liquid. This would be even more achievable if I staggered the maturity of bonds to happen at regular intervals, where every few months one would become liquid.
Should I open and start contributing to a 401k, IRA, etc, etc? Because I am self-employed I do not get matching contributions. Does this affect the priority of me adding money into these retirement funds?
How about health insurance? What are some of the features\options of healthcare plans that I should be looking for considering I'm self-employed? I am covered under my parents plan for now and have no reoccurring health issues, but that will not last forever.
Thanks
EDIT: Let me clarify since several of you have mentioned this. I do not own my own company or have one setup, nor would it work for my profession. I trade forex and indices so it was never necessary. I have worked with my accountant to structure things such that business expenses that are necessary for me to do my job (computer, internet & phone bill, etc) are structured into my taxes.
submitted by bringingbackthecorn to personalfinance [link] [comments]

Recent grad, living at home, saving 90% of my income. How to allocate? Looking for insight.

Hey guys,
Been a long time lurker on reddit, and I have learned a ton but I could use some help. I am 24, graduated last year. I have been working for a full year so far while living with my parents. I don't plan on moving out anytime soon as well. I am interested in saving as much money as possible and developing a solid base so I won't have to worry about finances (ever again?).
Anyway, hypothetically, I have $10,000 to 15,000 in a checking account while I save $2300 a month. How do I decide what I save for retirement and what I save as liquid cash? My plan is below, I am looking for feedback! With some questions in quotes.
  1. My company doesn't match my 401k contributions so I plan on putting the max $5500 into a roth IRA by next month. "If I put that money in there and lets say I invest it into a mutual fund or stocks. Can I take this money out in 4 years if I need it? I keep reading I can take money out of an IRA without penalty, but is that even with investing?"
  2. I plan on contributing a stead amount maybe 15% into my 2015 Roth IRA by month.
  3. 6 months of an emergency fund stacked away."this goes to my first question, can I save all my emergency money in a Roth IRA while investing? and if i need it somehow, can I take it out? Kinda confused.
  4. Small % saved monthly for traveling.
  5. I have been reading about forex trading, stock market and options trading. I'm debating which one to dive into, but its something I want to do, and will do. What would you guys recommend learning first? I'm fine with losing a bit before I learn as I think it will be a valuable lesson. But not sure if I go the options route or forex route. Insight?
Overall, what kind of advice do you guys have for someone in my position? I want to save, but i'd also like to turn my money into more money. I know you guys are going to say I am taking advantage of my parents, but they like and want me to live at home to save.
Anyway, look forward to some feedback. Cheers.
submitted by trojans10 to personalfinance [link] [comments]

I'm 23 and trying to solidify a FI plan, anyone so kind as to assist?

Hello FI! (throwaway account, sorry :( )
So, I'm a bit of an overachiever. Most people would consider me in excellent financial shape; I feel like I'm nowhere near where I want to be. The prospect of retiring at 60 with four weeks of vacation a year seems so bleak. I love travelling, learning. I'm a dual citizen in a european country and trilingual, though I've lived in the U.S. the majority of my life. I can think of so many things I would fill my time with if I could. Time is everything, and I dislike how much of it work sucks up.
Right now, I live in a low-cost-of-living region making ~50k annually from employment in the IT field. I purchased a foreclosure and fixed it up, and have a roommate in covering about half of my base home living expenses (mortgage/insurance/electric/utilities). If figure I ever decide to move, I'll rent the house out. To be honest, I strongly dislike the entire region I live in, but it's cheap.
I have a Bachelor's, but no student loans.
I get my travel fix via an airline credit card. I put all of my expenses on it and pay it off every month. I get free tickets and fly where I feel when I can line up a place to stay (relatives or fans...was a notable name in a competitive gaming scene in the past so people've put me up when travelling).
I decided to correct my spending about three months ago. I've been getting about 33% in savings a month since then with only minimal life changes. I'm going to try to push it to 50% next year if I can. This is after taxes/401k contributions/benefits, none of which I skimp on.
(33% == ~$1,000 a month surplus.)
I'm not really capable of going full Jason-style ERE, unfortunately. I really do enjoy my social life and am not willing to give that up- especially as I grew up as something of a geek and I'm kind of flourishing for the first time. But I am significantly cutting down my spending...not eating when I go out or having very little, for example, and no fast food ever.
I put my employer match in to my 401k. I see people saying to max the 401k, but...I can't touch this until I'm 60, right? I'm not going to leave money on the table, but I don't see why I should put extra in to the 401k when I can probably invest it elsewhere better.
Thing is, I don't know what to do with the next year's savings. I'm wary of the stock market; I don't trust that we're going to go back to the normal ~11% a year gains on average anytime soon. I could pay off my mortgage, but the interest is low enough that I could probably get better returns elsewhere.
Right now I have:
I owe <30k on my house at 5.25% interest. If I maintain the last three month's saving rate (without raising it to 50% like I hope), and pool my funds (not counting the 401k), I could pay off the house by the end of next year.
So...I don't know where to go from here. If I make consistent returns on trading, maybe I'll dump more money in to trading forex/options, but at the moment I'm dead even. I'll see how that goes. I'm working with a realtor and investigating real estate right now- I'm also thinking of buying an investment property to rent out, with a loan. I hate taking on more debt, but the math works out.
What do you guys think? Kill off the house debt? Or invest, and if so, where? I don't find stocks appealing for the next few years, but taking on debt for real estate makes me nervous.
EDIT: Where do most of you generate passive income? Stock/ETF/bond portfolios or real estate, right? I'd like to imagine I could retire in this next decade, but that's probably not realistic as I would travel a lot in retirement...sigh
submitted by semiitalian to financialindependence [link] [comments]

I know we are all about responsibility here normally, so let's talk about "play money" and what you do with it. Do you take high risk for growth, blow it on toys or what? I'll start...

With my "play money", I let someone trade a FOREX account for me on high margin. For those that don't know, it is a VERY high risk game of currency trading that isn't for the faint of heart. Big gains and big losses will be in store. I am not a trader myself, so I pay someone a monthly fee to trade for me. I made $5,000 in a month, then lost $6,000 in about an hour. I have now switched to a much more conservative trader and took a two year climb about of that hole into a 3 grand profit so far.
However, I have no illusions: It is pure, dangerous gambling...not investing. So, I am using my "play money" to try and grow it in a really high-risk way. If it weren't for the experienced trader I am paying, there is no way I could have hope to make any money. (Yes, that is a word of caution to anyone entertaining the idea of FOREX trading for themselves without experienced help: "Don't do it!")
What about you guys? Do you do anything similar to grow your "extra" cash or do you blow your play money on hot shot toys, electronics etc? I figure since we always talk about our index funded vanguard accounts and maxing out our 401k's, a change of pace might be in order for some fun. So let's hear the stories guys and gals!!!
submitted by Feed_Me_No_Lies to personalfinance [link] [comments]

26, 100k, no debt, no investments

Hi I am new here and just turned 26. I coincidentally just crossed the $100k mark in cash and have no debt and no investments. I am a clean slate and you could say very conservative. I only take risks when the risk/reward is the best possible. I am the type who bought his car in cash, uses no credit cards and only have them to build credit as necessary (750+ credit), and i don't hold a stock longer than a day. I see my 401k ($25k) as a daytrading account and not a reliable means for retirement but as a potential cash-out for a real investment opportunity.
I've been in bitcoin, mined it, traded it, cashed out before it tanked. I've been in penny stocks, big stocks, options, futures, forex, always returning back to cash with tight stop losses. I have a problem where I can't hold a losing position for any amount of time. I have a set risk/reward before I do anything with my money. I don't believe the stock market will go up forever and refuse to go all in at all time highs, even if it was 2 years ago's ATH which means I missed this bull rally, but I daytraded about the same earnings.
I'm here because I need passive income, I need to do something with my money, and I need a plan for the next 25 years. I would like to retire early. I was hoping someone could give me some advice. Thanks in advance.
submitted by A_merman to personalfinance [link] [comments]

Non-Citizen Savings and Investments

I see a fairly large amount of advice here that goes towards retirement investments. IRAs and Roths and 401k's and whatnot. I don't think (I could be wrong here) these are applicable to a non-citizen (not even a resident alien).
I am simply here for education, and was hoping to learn a bit of personal finance while at it. I've lurked in this sub for a proper week or so, which is why I've noticed the prevalence of the 401k/IRA/Roth advice.
My approximate financial situation, from September onwards:
  1. Sufficient emergency funds for ~4 months.
  2. ~$2.1k/month pay, ~$800-1k/month rent, ~$150-200 food. I've optimized transport and everything else in a manner that I don't expect it to take more than ~$100/month, if even.
Things I've contemplated: 1. Obviously, more into savings. 2. Potentially a fair percentage into Wealthfront/Vanguard/some other robo-advisor?
From above, I expect to have ~$1-1.2k/month leftover income. Any advice on how to get started with this would be appreciated.
Assuming ~300-500 goes towards my savings, the rest will be 'free' money. I am willing to take risks with it (not gambling at Vegas tier, but hopefully gets the points across). I will not mind losing it, and I will be willing to try things that can prove to be a learning experience (finance-wise, trades, forex, what have you, as long as I learn new things).
So, any advice appreciated. Please also call me out if anyone thinks I'm being too young and naive.
submitted by Chronum to personalfinance [link] [comments]

Young with a lot of disposable income and interested in some higher risk investments, but not sure where to start.

Hey personalfinance,
I have about 3-4k a month to spare after rent and living, and I'm wondering what I should do with it. I've already paid off all my student loans and maxed out my Roth IRA. Have amazing credit. Don't have any debt. Unfortunately, my employer doesn't offer a 401k (yet!), but probably will within 6 months. I have no plans to purchase a home or car in the near future.
I'd like to play around with money a little bit, but I'm not sure where to start, so I guess I'm just looking for a few ideas to do more research into. Choosing individual stocks seems like it's generally regarded as a bad idea around here. Are there any higher variance index funds that I could be considering? What about things like forex or options? I also looked into algorithmic trading, but that seems like it would take a significantly larger time commitment than I have. What about sites like lendingclub.com?
Basically if you had a few thousand dollars that you didn't mind losing, what investments would you take a shot at?
submitted by throwawaysomemoney to personalfinance [link] [comments]

Making Money With Money Through Tradera Forex Platform The Basics Of Trading Options In Your 401k Or IRA Account [Episode 142] The Main Principles Of Forex Trading with Your Solo 401k ... Getting My Forex Trading with Your Solo 401k - IRA ... An Unbiased View of Forex Trading with Your Solo 401k ... Martiak: Wise to Day-Trade Your 401K?

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Making Money With Money Through Tradera Forex Platform

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