Building Wealth Early is Important

You hear all the time that you don't have to worry about anything but partying  in your 20's but I couldn't disagree more. Being in my 20's I'm obviously not speaking from experience but rather observation. The one thing I've heard more times then anything else is the phrase "If I could go back in time.."
Time is the most important thing we have yet we waste it constantly. That doesn't make much sense now does it?

So why wait? Start now. Save your money and invest your money. Go for a big paying career or find business/freelance field that works for you. In your 20's you have youth and energy so use it! Instead of partying with your friends, take up hobbies, even consider learning a skill.

 Starting out you should consider these 3 steps. Make sure you make enough money each month, get your bills in check (make your monthly budget affordable) and make sure you're saving enough each month.

Once you have enough saved up I'd recommend learning as much as you can about stocks or real estate (if you're going to school for economics or finance you'll learn quite a bit about stocks) don't make the mistake most of us young folks make which is moving without thinking and then paying the price. It's easy to lose money in any one of these investments if you don't know what you're doing so put in the time to do you're homework and the profits will come.

  All too often I see people my age wasting money on ridiculous things to the point where they're putting themselves in debt for thousands of dollars. No matter how you want to slice it that's ridiculous. So be a contrarian, and build your wealth rather then waste it and start as early as possible.

 There's a reason why there's a 1% and a 99% . Most people do things the same way and others do things their own way. You tell me which side you would rather be.

Opportunity in Commodities

Just a word of advice, but I would start watching commodities. I don't think anything drastic will happen at the moment, but obviously when prices are this low they'll eventually go this low. Right now I'd probably avoid putting my money into commodities as they could still be a falling knife for awhile. But what I would be doing is setting up a plan for what to do with commodities in the future.

Oil - Look for companies with little debt, as many companies have overburdened themselves with bad debt. These companies will go under and the companies with a good cash management strategy will go on and up. 

If you want to keep things simple, look into oil ETFs. These represent a variety of oil stocks rather then just one.  Oil could in fact be hovering at its bottom so I would keep my eye on it. What makes oil so unpredictable is that damn dollar which brings me to...

Gold - BUY GOLD NOW! Just Kidding. I almost feel like gold is more unpredictable then oil. With a dollar that's on steroids right now there's no telling how low gold can go. Because of this I would not invest in gold right now. However while watching gold I would also watch the dollar. Once you see a downtrend in the dollar I would jump on gold.

Copper - Another popular beaten down commodity. We all remember the "copper rush" that took place a few years ago. Copper is trading at its lowest level in years but has since come off its January low. Look into companies involved with copper as they too should be falling right now. Once you see support develop I'd look at investing here.

Natural Gas - another beaten down, widely used commodity I'd keep my eyes on. 

Stock Market Strategy 2015

Contrary to popular belief the U.S. is far from the best market to invest so far in 2015.

Two better options thus far?

Germany and India.

Going back to December, the analysts were telling people that the global markets would be lagging behind the U.S. however this is simply not the case. Due to Europe's 2015 QE campaign their stock market is on fire and will continue to be. Remember, QE is what has gotten the U.S. market where it is today. India has always just surpassed China for the world's fastest growing economy. I strongly suggest looking into European (particularly German) and India ETFs for a good place to put your money.

I think the U.S. market is only starting it's volatile ride so far in 2015. I wouldn't invest in this market right now even if you think a stock is trading for a good price. In my opinion I think almost all stocks have more room to fall for two reasons..
1) Stocks aren't AS overvalued as they were, but they're still not cheap enough either. Considering the dreaded correction has not yet come (it will come when the big institutions are finished unloading their shares) I think this market has plenty of room to fall more. If you think stocks are a good deal now just wait. They'll probably be cheaper soon enough.
2) No more QE. It doesn't take a genius to see how different the markets perform with and without QE. This is why valuations have gotten so out of whack because all of the "funny money" the fed has continued to pump into the market. Without QE these stock prices will not hold.

When it comes to investing we tend to make it much more difficult then it needs to be. One of my main strategies is to see what all the big banks/financial institutions are buying. Why? Because the way to work the market is to see where it's going and ride it and where ever the big boys are buying the market is going.
Guess where all the money is going right now? Europe and Asia.

I would consider investing in foreign markets and trading the volatile U.S. markets..

The Importance of Income Diversification

 You want to know something? When it comes to investing or making money there's very few things that are promised. No one can truly protect your money but you and this is done by diversifying your income.

Whether you're on a mission to get rich or just be comfortable you never put all your eggs in one basket. When you look at wealthy people such as Bill Gates or Warren Buffet and see how how they manage their wealth you notice that they have multiple investments. Bill Gates isn't just Windows and Warren Buffet isn't just the stock market. This is why these two men are so rich and continue to get richer.

So lets talk about the middle class person. What can this person do? Here's a few things.
A lot of people are taking up the idea of being a Business Owner these days which is good as long as you do it right. But if you have a decent job I'd suggest keeping it with your business/hustle. All business's big and small go through good and bad times. So for a small business owner it's good to have that income coming in from a job on the side.

Lets talk about Passive Income. How  does one do this you ask? There's different ways. You can invest in the stock market, real estate(the most expensive way to start) or you could invest in some one's business. The whole point of passive income is having money come in continuously without having to do anything. One simple mistake I think people make when it comes to passive income is greed. How so you ask? Many people think an investment should pay ten fold from the beginning. Real investors know that investments build up over time. So think about this...If you're just starting out and you're the average person just trying to pay their bills and live you're telling me having an extra $3-400 from the start wouldn't help? Of course it would, as you could put it towards a number of things. After a while a few hundred grows to a few thousand and then you're making more money sitting on your couch then other people make working all day.

This is how the rich get richer and the middle class become rich. Income Diversification builds wealth and keeps cash flowing. So do your research and start building your financial stronghold.

Putting Your Money To Work

"The impression was gaining ground with me that it was a good thing to let the money be my slave and not make myself a slave to money." -  John D. Rockefeller

Ask yourself, what is my money doing? 
Is it sitting in a bank account collecting 0% interest? Is it stuffed away in a safe or mattress losing value every few years? Chances are, you're saying yes to one of these questions. I'm not blaming you, you just need to be educated.

My friends, let me tell you something. If you think the key to being well off is working for someone else and saving your precious pennies you're just plain wrong. The key is to save, but once saved up put your money to work. I don't suggest savings accounts, Cd's, etc, unless you have a fat amount saved up (100K or more) I suggest investing in something that you know. It could be stocks, real estate, a business, etc. Whatever it is you need your money to multiply.

Why you ask? Why can't I just play it safe and put my money away? Because inflation along with the cost of living will continue to rise. If you want to retire and live well doing so you need your money to accumulate. I suggest you do your own research before just going to your bank and talking to an advisor or broker. Why do I say this? Because all too often they're looking to make money off of you, not for you. I suggest doing you're own homework for your own good.

I also suggest diversification. There's never such a thing as a safe investment. Income can be disrupted at anytime. To protect yourself against this you need money coming in from different places. 

Knowing how to make and save money is the key to getting ahead. Follow this blog and I will show you how

Getting Control Of Your Finances

Whether you're a millennial or a boomer you realize times are tough.

Rents high, foods more expensive then ever, our now cheap gas is going back up, etc.

So how does one survive this financial jungle? I'm going to share some of my own advice and show you some ways you can save money without sacrificing quality of life


Many people think networking is only for a business man. That's just not true as anyone could benefit from networking. For instance, food is so expensive these days that even being single is no longer cheap. So how can you eat for cheap without eating beans in a can every night? Create a "food plan" with your friend. You and a friend can split a food bill. The trick here is buying food in bulk. If you go to your nearest food store you wont get much bang for your buck. However if you and a friend go to a bulk food supplier and split the bill, you can lower your food bill and get more food then you normally would for almost half the price.
Internet-share wifi with a neighbor
Gas - Share a vehicle with you and your neighbor while splitting the gas bill

Roommates are a good option to, especially if you're single. I realize the wrong roommate can be a nightmare so be smart when picking your roomie out. By doing this your bills are cut in half, and you can finally move out of your parents basement!

Utilities such as the A/C will cost you the most. Turn it off or up whenever you're not home. To help keep your home cool use dark, thick curtains. Go for tile over carpet as it keeps the house cooler.

So we've went over some home habits, what about you're daily habits?

We went over food before, but what cost people another pretty penny is their beverages. Stop going to Starbucks, waiting in the endless drive through line to buy your $5 coffee. (Even if your coffee is cheaper, anything you buy daily adds up) Be smart and make your coffee at home. Same goes for those of you sucking down your $2 energy drinks three times a day. Be smart and cut out repetitive expenses.

I'm going to give you a goal: Save at least 10% of what you make every month for the next year. That's it. Some people save more but for someone that can't seem to get it going this is a good place to start.

Now I understand this plan can't work for everyone, each person has their own unique situation. But when it comes to saving you have to be creative. Not only that but you have to be willing to sacrifice. If you want to just get up everyday and grind then continue getting by with the same habits. But if you really want to live a different lifestyle where you're in control of you're finance you must get control of yourself and your daily habits first.

Any questions? Feel free to ask and I'll answer in my comments. If you'd like to contact me personally, my email is SunshineTrading772@gmail.com

Good luck!

The Rising Rent Problem

 Let me start this out by say this is not an article compaining of any conspiracy, or hating the rich or any of the nonsense you read all over the internet. However there is a big problem going on with real estate prices and we as a country need to realize it before the inevitable happens.

 A good amount of Americans are renters since the recession and although recent job data tells you job growth is rising I don't think anyone is excited about their part time Walgreen's job. Because of this, real estate has sky rocketed much like the stock market in recent years. This is good to a certain extent. When real estate came back from the crash it was good for this country. However once the real estate boom inflates the cost of living it becomes a bad thing and that's exactly what's happening right now.

The average rental rate in America is over $1000 right now. People hear this and say buy a house. But what about the millenials moving out of their parents? It's ridiculous to force them or anyone into a 30 year mortgage just to get a reasonable rate of living. The problem is you're also stuck in a mortgage, many of which are sky high right now due to rising prices. Either way you lose when you think about it.

 I currently had my rent increased from 1100 to 1300 in my own apartment. I tried relocating to a cheaper location (I would have been saving about $100 a month from what I was previously paying) but was told I  now make too much. Keep in mind, you're told this in Florida if you make 35,000 or more a year. How does this make sense? People say this makes sense so that people with lower income can afford it. Keep in mind, I'm looking at an apartment for $1000. Why would apartments for these prices be reserved for someone with low income? When I see things like this and then most people say they don't have any savings it's no wonder why.

People have tried looking for cheaper solutions only to have zoning or construction laws get in the way. So this is where something needs to give. Obviously greed is driving up rental rates to unsustainable levels. This is inevitable and eventually the market will correct itself as it usually does. However if you have laws restricting people from cheaper options you almost force these insane rental rates or mortgages on the people. If people who make 40,000 or more a year are forced to pay over one third of their earnings on just having a space to live while not including taxes, utilities, living costs, etc. how can people ever save up?

If we keep going the same way we're going things will crash just like they did before. Lawmakers have to allow renters more flexibility. If they allow people cheaper housing options (no i'm not talking about parking a trailer in a neighborhood) rather then forcing laws on landlords the market will correct itself without government sticking its nose in business. They can keep talking about lower energy costs all they want. It means nothing when your housing costs are insane. As I said before, something needs to give here. Hopefully it wont be the economy this time.

Learning how to live with volatility

Volatility has become a popular word lately. Some love it, some hate it. While I do think the recent endless batch of volatility has been a bit much, the right amount is a beautiful thing. Why you ask? It's common sense.
To understand we go back to the basics: Buy Low, Sell High. 
When the market gets slaughtered it allows traders to move in when stocks are low and make a quick exit on good days of the market when stocks are high. Most people think you have to wait for a market crash to turn a good profit off the stock market. This is simply not true. If you want to own the stocks the media pumps up, sure you probably would have to wait for them to crash. But smart investors will realize they don't have that advantage so they move on to the next trade.
It takes time and research, but there is always a profitable company trading below its moving average and that's where you make a killing off volatility.

I don't claim to be a market expert like everyone on Twitter, but by now I've learned a thing or two in my time on the Stock Market. The one thing that has become crystal clear to me is avoiding the noise. You see when traders watch CNBC and hear them pump up over inflated, non profitable stocks like Twitter and Tesla and then drool as they listen to analysts declare sky high price targets, justifying it with this weak statistic or chart analysis things start to get ugly and investors lose money. Why? Because now traders are making fundamental mistakes.
#1 They're buying the stock when its high, hoping that the stock will get them that shiny $30 dollar price gain. Good luck with that one. Warren Buffet would be ashamed.
#2 They're doing this based off inflated fundamentals. Looking at strictly revenue or annual EPS growth does not tell a stock's full story. This now sets the investor up for huge losses when the stocks misses analyst estimates or doesn't live up to the hype.

Even traders with the intention of making a quick trade lose out when following these guide lines. I remember something I read when I first got into stocks from Warren Buffet, "If you wouldn't own a stock for ten years don't own it for ten minutes"
Technical traders would argue that's not always true and they have a point as you can profit from using chart analysis, assuming you're good enough. however sometimes numbers/charts DO lie and that's where the fundamentals come in. Sure it's nice to buy a stock below its 200 day moving average. But is it profitable? Can it make it back up? Why are investors dumping the stock? Looking at the fundamentals along with the chart will tell you what you need to know.
Inside information is illegal, and depending on your broker or the media to help you make the right moves is a recipe for disaster. The greatest defense you have is your knowledge of the markets.

Speaking of defense, You hear people say buy gold, buy bonds, etc. to protect yourself in stocks. If that's your strategy your better off putting your money in a savings account as you'll get about the same rate of return without the hassle.
In my opinion the only real way to defend yourself is by buying high and selling low. For most of the big name stocks you constantly hear about, this is almost impossible to get a stock for good value because they're so over inflated. So you have to ignore the noise and go hunting for true value deals.
To illustrate this for you, say I buy stock X at 17.00 the following year it rises to 67! woohoo! but wait, now it just fell down to 27 from a sudden, devastating move to investors. So while all the sheep that bought the stock when it was trading more then 10 times book value get slaughtered while the hunters who bought it when it was low and hidden away from the hype are still standing with a profit.
Is this a perfect scenario? Of course not, but it shows you how in the event of the stock crashing you can not only prevent losses but also still turn a profit. This is due from buying the stock at the right time.

We as human beings tend to complicate things, and the stock market is a fine example of that. While it's not easy, it's more difficult then it appears because people make it more complicated then it needs to be. My suggestion? stick to the fundamentals and rules of analysis.

I hope you're enjoying this cheap oil...

Hey, did you hear? That oil stuff has gotten pretty cheap these days!

I hope you've enjoyed it, because it looks like we may be coming to a close. Why? I've been doing a bit of research and this is what I've found...

The dollar is testing all time high levels right now. Looking at the dollar chart, this is where we are...

Since the 9th, the dollar has started to slide downwards. At this same time, gold has started to trade upwards. When you add in the fact that everyone from the television analyst to your grandmother is bullish on the US Dollar it gets pretty obvious where this one is going.

Right now GDXJ (Gold) and Dollar Short ETFs look promising. Remember, it's about jumping in before the masses do, that way you buy low but sell high. As you have probably heard the markets are going through rough waters right now. A big part of this is oil and a stronger dollar. You see, a stronger dollar makes US exports more expensive for foreign countries. This is bad for Wall Street when over 30% of their profits come from the foreign market. Not only that, the #1 employment sector in the country which would be energy is cutting jobs left and right. Not only will the rich get hit if things don't slow down but so will the working class. Even though they say they're ending QE it wont surprise me to see the fed keep interest rates down as they realize economic growth is not yet where it needs to be. Inflation is BELOW where the fed wants it to be, so common sense would tell you they'll do what needs to be done to raise it.

Last but not least, Oil is literally about a dollar above one of its lows. Oil could end up shocking the market and end up coming back around $43.  I'll be watching commodities as a whole and keep my readers updated. 

Finding value

Doing a little bit more research, I'm interested in luxury retail stocks Coach (COH) and KORS.

Both have potential for growth but potential for decline as well. Both companies are expanding more internationally, which is a good sign. Kors has been doing well in 2014. However investors might want to watch their earnings. They were giving out heavy discounts over the holiday season which could bring a disappointing report this quarter. I do like how coach is cutting back on overhead costs and expanding their brands not just internationally but to men along with women. They also just bought a luxury footwear brand that should bring an immediate boost to earnings.

However, Coach is not without its flaws either. It had a brutal 2014 and is struggling in North America. Re-gaining footing in the American market will be important for this company. Both stocks are trading well off their highs so the potential for big profits is there. Again, I advise you to do your own research different people have different reactions to certain reports about stocks.

Also watching: QCOM, DLPH, CS

Buying Some Promising Stocks On The Dip

Buy Low, Sell High...

MU Micron Tech

NSRGY Nestle

TSCDY Tesco

MU only dropped due to investors typical emotional response. I bet it not only comes back (I'm already in the green from buying @ 33..I bet it has good growth too)

NSRGY Nestle`, like all processed food brands has been getting spanked. But make no mistake, this is still a company with a strong reach. More then anything, they announced a share buyback in August. Most of the time, this will lead to a decent profit for investors. Buy it now while it's still under 72 before it goes above 73 when it comes back. After that I expect the buyback to kick in and boost the price a bit..We shall see.

Also..AAPL is a bargain right now, and earnings should be solid this quarter. You have a potential price target of 120+.

I also REALLY like Alibaba at this price. Another stock that I think will pop to 120+ potentially comes earnings

Gold Might Be Shining Again

Is gold ready for a comeback?

Struggling world economy, political tension throughout the world that's not cooling off, falling stock prices...

Gold is a very, very risky pay as anyone can tell you. But profiting off the stock market is heavily related to timing the opportunity right. Right now could be the time for gold. If oil continues to fall, the US economy will sputter with it. More jobs will be lost then gained, hurting main street. Falling oil tends to beat down the stock market, hurting wall street. At times like this demand for gold increases, the now cheaper gold supply suddenly decreases.

Now, it's not that simple either. See, if the markets crash gold will go down as well. If the market correct itself (which I think is more likely) then you're in a good market for gold. I'm going to do quite a bit more research on this, but I would strongly suggest watching gold right now.

EDIT- As I've looked at the chart, the dollar peaks around 96 and gold's next low is in the 800-900 range. It might be worth it to hold off on Gold, while waiting for the dollar to hit its peak then start to decline. Just sayin'..I'd rather buy gold at 900 an ounce then 1200.

Building Wealth Slowly

You know, in the last year I can honestly say I've done a lot of research on Business and Finance that I never thought I'd have the patience to do.
To be honest when I started I was like a bull seeing red looking to charge in only one direction: The Road To Riches. In my pursuit I've leaned new ways to go about building your wealth that I'd like to share with you. I'm not a millionaire (yet) so I'm not going to talk to you like one. Instead, I'm just going to give you some guidance that has helped me.

Rule #1: Live Within Your Means
"If you buy things you don't need, soon you'll have to sell things you'll need" - Warren Buffet
This is rule #1 because it's the first one we all break. It's human nature to have a desire for more then we need. Not being able to control this will leave you broke. Always make sure you're making more then you're spending each month. If you operate a business or have a job you want to make sure you're making a profit each month. What do you do with that profit? Stack it up and invest in something when you have enough money to do so. Do NOT spend it on material things.
Buy a used car, get a roommate, shop at walmart (you gotta do what you gotta do) just focus on reducing costs while increasing cash flow. Limit your bills and your spending habits and suddenly you'll enjoy looking at your bank account rather then dreading it.

Rule #2: Avoid Credit Cards
This is a big one. First off, yes you should build credit. However having a monthly budget with interest on top of it every month is a no-no. If you need to build your credit, put half of your monthly gas budget on it for a few months, and pay it off in full each month. Make sure you do not carry a balance. Once your credit is established, stop using the credit cards and save your credit for quick flip investment opportunities. Credit is also bad because it develops bad habits such as people spending more then they make and not managing their money. If you enjoy the convenience of a card over cash, use debit.

Rule #3: Invest Your Money
If you think stuffing money away in a piggy bank, mattress or savings account is going to help you build wealth you're wrong. While you want to save your money, eventually you need to put it to use. You need to be very careful before investing in anything regardless if it's a business or stocks. Research what ever it is you're interested in until your eyes bleed. I cannot stress this enough. You don't fear risk, but you damn sure better respect it.