Margin Account Defined

"DEFINITION of 'Margin Account'
A brokerage account in which the broker lends the customer cash to purchase securities. The loan in the account is collateralized by the securities and cash. If the value of the stock drops sufficiently, the account holder will be required to deposit more cash or sell a portion of the stock.

BREAKING DOWN 'Margin Account'
In a margin account, you are investing with your broker's money. By using leverage in such a way, you magnify both gains and losses."


( http://www.investopedia.com/terms/m/marginaccount.asp#ixzz3kOnJUMOF )

The Paper Trade Part 1

Approximately $10,000 (half the money) is split between 5 stocks for now. Be it a Paper Trade (not my actual account(s) and I do not buy on margin )  I did the same with the VOO (vanguard s&p500) and VTI (vanguard total market) for comparison purposes between individual stock picking and a broad index fund. If I do not outpace the broad indicies at some point, which is the bench mark for fund managers (and retail investors alike) it will be a failure.

I bought positions with half the money yesterday....and I will put in the second half of the money once China stabilizes, crude stabilizes, more news from the federal reserve, if political unrest pops up etc. I'm not sure about the bottom of this recent correction (bear market for some individual stocks) as China is making noise and the fed is making noise. I suppose that I will put the other half on the money to work sometime next month when factors of this recent market decline seem to be resolved.

Granted, I may have missed the bottom of the correction (bear market for some individual stocks) the other day when apple hit a 52-week low of $92 intraday.



anyways, until part 2....GET MONEY!!!

Pull back, Correction, Bear...Oh My!

Pull Back: A stock, bond, commodity or index that is no more than 10% under it's 52-week high

Correction: A stock, bond, commodity, or index that is 10%- 20% under it's 52-week high

Bear Market: A stock, bond, commodity or index that is more than 20% under it's 52-week high

Yeah bruh....ain't Dry Powder that Michael Jackson biopic?

Naaaaw man!!! It's Cash on the sidelines for equity investments...and real estate! As in literally cash, money market accounts, savings accounts, and/or checking accounts with funds ready for buying stocks (real estate too). Also, dry powder can be any assets that can be liquidated quickly and with little effort...even if a financial penalty or value loss occurs.

And from a business perspective dry powder can be used to pay future obligations or to purchase assets at a favorable price.

What is Monetary Policy?

"DEFINITION of 'Monetary Policy'
The actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates. Monetary policy is maintained through actions such as increasing the interest rate, or changing the amount of money banks need to keep in the vault (bank reserves).


INVESTOPEDIA EXPLAINS 'Monetary Policy'
In the United States, the Federal Reserve is in charge of monetary policy. Monetary policy is one of the ways that the U.S. government attempts to control the economy. If the money supply grows too fast, the rate of inflation will increase; if the growth of the money supply is slowed too much, then economic growth may also slow. In general, the U.S. sets inflation targets that are meant to maintain a steady inflation of 2% to 3%."



( http://www.investopedia.com/terms/m/monetarypolicy.asp#ixzz3jAbplBB8 )