Investing – Side Hustle

September 20, 2022September 20, 2022

How To Start Day Trading Side Hustle

DayTrading as a side hustle could be a lucrative way to make extra cash. While a lot of day traders spend hours on computer trading during trading hours, you could start spending about 30 minutes to an hr everyday trading.

Day Trading As A Side Hustle

What Is Day Trading?

A day trader is an individual who buys and sells securities—such as stocks, options, futures, or foreign currencies—within the same trading day. A day trader often closes out all positions at the end of each trading day and begins anew the next trading day.

There are two types of day traders:

1. Retail day traders:

Retail day traders are individuals who trade for their own personal gain. They are not affiliated with a particular financial institution or broker-dealer and often use online trading platforms to execute their trades.

2. Professional day traders:

Professional day traders are individuals who trade for the institutions they are affiliated with, such as banks, hedge funds, or prop trading firms. Professional day traders generally have more capital to trade with and access to more information and resources than retail day traders.

How To Become A Day Trader?

Becoming a day trader is not an easy task. It requires a lot of dedication, hard work and most importantly, knowledge about the market. Day trading is not a get rich quick scheme and it takes years of experience and practice to become a successful day trader.

Learn How Market Operates: You need to have a basic understanding of how the stock market works and how to trade stocks. There are many books and online resources that can help you learn about the stock market.

Open Brokerage Account: You need to open a brokerage account. A brokerage account is an account with a broker that allows you to buy and sell stocks.

The next step is to find a day trading system that you are comfortable with. There are many different day trading systems available and it is important that you find one that you are comfortable with. You can find many different day trading systems online.

The last step to becoming a day trader is to practice. You need to practice your day.

Books Recommended For Learning Day Trading

Interactive Day Trading: Ultimate Trading Guide: This book is an easy-to-read book for anyone wanting to learn day trading from the basics. It includes a video course as well.

Chart Patterns: Trading-Desk Booklet : This is a book that has all the popular chart patters that could help you make a better prediction when trading.

How much does the average day trader make a day?

There is not really an exact answer, because it depends on the individual trader’s level of experience, skills, and luck. Some day traders may make only a few dollars a day, while others may make thousands, but most day traders who start day trading without any experience lose money.

Can you day trade as a hobby?

Yes you can but you need to actually make money or you are just going to lose money and stress yourself out. DayTrading is not usually a hobby, you could paper trade with fake money but no day trader just trades for the fun of it because it’s very risky.

September 6, 2022September 13, 2022

Guide On How To Start A Tax Lien Business

A tax lien business can be a profitable way to earn income while helping others improve their financial situations. By becoming a tax lien investor, you can purchase properties with delinquent taxes for a fraction of their value and then work with the owners to help them pay off the debt and keep the property. While there is some risk involved, tax lien investing can be a great way to make money and make a difference in your community.

Tax Lien Side Hustle

Tax lien investing could be a great side hustle because you don’t need to give it constant hours rather than you can find some time after work or during weekends to do most of the research and outreach!

Requirements

The only requirement is that you must have some cash ready to invest on the tax lien certificates. This might be a good side hustle to start with a few of your friends, each of you could put some money in to make it affordable!

Tax Lien investment could be a great side hustle because it doesn’t require you to put daily hours, instead, you can properly spend few hours a weekend and get it done.

In this Guide, we will learn everything you need to know about starting and investing in a tax lien business.

What Is A Tax Lien?

A tax lien is a legal claim the government can make on your property if you owe back taxes. The lien gives the government the right to take your property in order to satisfy the debt.

As the owner of the lien, you are then entitled to collect the unpaid taxes, plus interest and penalties.

This happens when someone cannot pay their property tax, but the government wants their revenue from anywhere possible. This is when you come in and pay the tax and take over the lien, so the property owner is obligated to pay you within 60-90 days, depending on the state with some sort of interest in full.

Steps To Starting Tax Lien Business

Research Tax Lien Laws

Each state has different laws governing tax liens, so you’ll need to be familiar with the rules in your state. You will need to get familiar with these laws so that you are not breaking the or worse case harassing the property owners in a way that’s not allowed, which could lead you into more trouble because they could file lawsuit against you.

Some common Tax Lien Laws are:

Send all communication via Trackable Mail
Refrain from using Foul Language
Be Respectful to the property owner
Get Everything Documented

Find Properties With Unpaid Taxes

You can search your county’s public records to find properties with unpaid taxes. Most of the time, if you google ” [County Name] Tax Lien” you will be able to find properties with unpaid taxes.

This is probably the “hardest” part about tax lien business because you will need to find these properties, and in many cases, you won’t be able to get a penny out of the property owner after doing some research, so its all about being able to hunt down the right “deal”.

Bid On Tax Liens

When you find a property with unpaid taxes, you can then place a bid on the lien. This is often done online where you will place a bid amount compared to the amount owed.

Make sure that you are not bidding the whole amount owed because you might not have enough margins to make it worthwhile. You should aim to bid about .20-.30 Cents per dollar on low-end properties and and up to .75 cents on better high end properties.

Collect Payment

Once you’ve won the bid, you’ll need to collect the unpaid taxes, plus interest and penalties, from the property owner.

This could be very easy if the owner simply forgot or if the property is high end and if the owner simply doesn’t have the means then you might want to workout a payment plan with the owner to help them out.

Frequently Asked Questions

How do tax liens work in Colorado?

A tax lien is a legal claim that a government entity makes against a property owner’s real or personal property when the owner fails to pay their taxes. The lien gives the entity the right to collect the unpaid taxes, plus interest and penalties, from the property owner. If the property owner does not pay the taxes owed, the government entity can foreclose on the property and sell it to recoup the taxes owed.

What is the best state to buy tax lien certificates?

Florida is the best state to buy tax liens because the maximum interest that you can charge is almost 18%, while Arizona has 16%.

How do I find tax-delinquent properties in my area?

There are several ways to find tax delinquent properties, One way is to contact your local tax assessor’s office and ask if they have a list of properties that are behind on their taxes. Another way is to search your county’s public records for tax liens. Finally, you can search for tax delinquent properties online using a service like PropertyShark.

Tax Lien Investing Pros And Cons

There are a number of pros and cons to tax lien investing. Some of the pros include the potential for high returns, the fact that tax liens are a relatively safe investment, and the fact that they can be a good source of passive income. Some of the cons include the fact that tax lien investing can be a bit of a hassle, and that you may not always be able to find good deals on tax liens.

July 18, 2022July 18, 2022

How To Buy Fractional Shares

Investing in the stock market could get really expensive, but what if you could just buy a small fraction or part of a single stock, that would allow you to invest in any company where you cannot buy a single full share. This levels the playing field for people who are on investing budget.

In this article, we will learn how to buy fractional shares.

The rise in interest in fractional shares over the past 10 years has aided in the emergence of a new investing trend. In fact, a record number of beginner, first-time investors were able to enter the market in 2020 because of fractional shares and the expansion of commission-free trading.

Do you want to learn more about investing and trading stocks? We have created the best articles, guides, & resources for you here.

What is a fractional share?

Fractional shares are pretty much fractions or small pieces of a full share or a stock.

When you buy a fractional share, you are buying a part of a stock.

These are great because they help investors with a small amount of money start investing in stocks that cost a huge amount.

For investors, the ability to buy and sell fractional shares is relatively new, but the concept of fractional shares has been around for quite some time. For instance, if you make a contribution to a dividend reinvestment plan (DRIP), you end up owning a portion of the stock.

Similarly, if you buy an Exchange-traded fund (ETF), you are also owning many small fractions of stocks from many different companies.

How do fractional shares work?

Fractional shares work exactly the same as normal full shares.

Many brokerages let you buy and sell fractional shares just like any other shares.

With fractional shares, you get to make profits and losses just like normal shares but of course at a fraction. If a company pays dividends, you will receive a fraction of that too.

Some companies also allow investors with fractional shares to hold voting rights just like normal shareholders.

Example of how fractional shares work

Assume the fictional company ‘XYZ’ is trading for $100 per share. You pick to invest just $50, creating you the satisfied holder of ½ share of ‘XYZ’ stock. If ‘XYZ’ proclaims a $1 disbursement, you would be given $0.50. If the ‘XYZ’ company’s share value rises by 10% from $100 per share to $110 per share, you will get 10% from $50 to $55.

Spending our imaginative price of $100 per share, if company ‘XYZ’ does a 2:1 stock split, you will now own one total share at $50, and the complete share owner would have two claims at $50. This does not adjust the sweeping expanse invested as the fractional share investors still have $50, and the entire share investor has a total of $100 financed.

In most cases, you can buy and sell fractional shares with ease as whole shares — but there can be a few difficulties that you should be conscious of, which we’ll cover in the next section.

Are fractional shares worth it?

Yes, it is. There is a misconception that you must desire to own one complete share in order to receive the full benefits of stock ownership, but this is untrue.

It doesn’t matter how many shares you hold, if the price of a stock increases by 10%, you will receive a 10% return on your investment. Additionally, fractional shares can enable investors to diversify their portfolios across dozens of stocks at a significantly lower cost than maintaining complete shares.

How To Invest In Fractional Shares?

Now the exact process may vary slightly depending on your brokers but it should be very similar to the following steps:

1. Open a brokerage account with a company that allows fractional shares. Some of the companies that allow this are Ameritrade and, Fidelity.

2. Deposit funds in your brokerage. You can deposit as much or as little as you want.

3. Select a company’s stock that you want to invest in. Please remember that although some brokerage firms may permit you to buy fractional shares, it might not include all the companies you want to invest in.

4. You are set! Buy, sell, hold. Now it is time for you to make money.

The financial takeaway

An excellent approach to enter the stock market gradually and on your terms is through fractional shares. You can now buy stocks with little money that you probably couldn’t earlier. You can diversify your portfolio and begin investing right away with fractional shares without having to spend a lot of money.