Financial Tips For The New Investor

The new year is only a few days away. Get a jump start on financial success and claim what’s yours!

  • Getting 2019 started right concentrating on three key steps.

  • Results may vary depending on your investing style.

The new year is on its way and you are ready to get serious about investing in the stock market! Now you can either jump right in and invest, or you can take necessary precautions and plan for success.

It took me some time to really get a grasp of how the stock market works and what investing style worked best for me. I look back and wish I wouldn’t have rushed the process at first, and because I did it cost me hundreds of dollars. So learn from my mistakes and check out these financial tips before you dive right in this year.

Minimize your expenses and relinquish your debt.

Be Aware Of Your Spending Habits

This is the most challenging part of all, but if you are afraid to check your personal bank account on a daily basis, don’t invest in the market. Learn to manage your personal finances, minimize your expenses and relinquish your debt. Being responsible for your spending habits is a must if you want success with your investments.

Life catches us by surprise often…

Emergency Savings

I was told by a wealthy businessman to always have at least $1,000 emergency fund on the side of your investing endeavors. And once you have started with that, build it to $2,000 (and so on). If you have a family, your emergency fund may need to be $3,000 – $10,000. But, if your main source of income stopped today, how long could you survive from your current savings?


Life catches us by surprise often, so it’s best to have a side savings fund to be prepared- sudden surprises such as car repair, house repair, etc. It’s not recommended to have all of your savings placed in the stock market. If you placed it all in a brokerage and suddenly needed the money, it could take several business days to complete the transactions (fees could be involved). You may also consider holding your securities long-term for tax purposes.

Concentrating on these two tips will help you to become a better investor in 2019. Be patient and learn from others. It’s very common for investors to have come excited, but have a strong game plan and keep your eyes open to new opportunities.

Please see About Me & Disclaimer for additional information about Black Tea.
Closing Disclaimer:

I am not a certified professional, nor responsible for any of your gains or loses. I’m simply a passionate stock investor who loves to share my experience with other women/men who want to learn general information about the market. May I encourage you to study and evaluate before you make any purchase or sale in the stock market. We are a participant in the Amazon Affiliate Services LLC program, an affiliate advertising program designed to provide means for us to earn fees by linking to and affiliated sites.


Nexstar Media Groups (NXST) Takes Action

NXST (Nexstar Media Group, $75.35) is one of the nation’s largest media broadcasting company based in Irving, TX. With a market cap. of 3.40 billion dollars, NXST is particularly loved by buy-and-hold investors.

NXST operates over 171 television stations across the United States and made a recent acquisition in 2017 of LKQD technologies for $90 million– a leading independent advertising infrastructure corporation. LKQD is a top performer in video advertising and reaches million of people through mobile phone advertising, tv advertising, etc.

Screenshot from Robinhood

With a fair GPR (gross profit margin) of 57% and a consistent dividend history, some investors believe NXST has more to grow from their low p/e ratio 6.936. Their projected stock price in one year is $95.00.

Neuberger Berman Genisis is the largest mutual fund holder of NXST and analyst are claiming this is a great time to buy if the investor is looking to have holdings in the consumer cyclical sector.

Please see About Me & Disclaimer for additional information about Black Tea.


The Rise of ETFs

ETFs are very popular and some investors use them for day trading. And ETF is abbreviated for Exchange Traded Fund. Similar to Index funds, it’s a diversified collection of assets that trade on an exchange (like a common stock). ETFs were made to simplify investing- giving the option to invest in a fund instead of choosing multiple common stocks. There are managers behind the scenes doing the trading for you. These funds are great for investors. They are tax-efficient, low cost, and have high volatility.

A Wolf in Sheep’s Clothing

But comparing ETFs from TIFs (traditional index funds), ETFs have given the name for “a wolf in sheep’s clothing” due to the aggressive volatility. They were made to hold, not trade (short-term for 5 years, unlike TIFs for 10+ years). However, there are many kinds of flexible ETFs and it’s up to the investor to make her/his decision on what is right for their portfolio. They are heavily diversified, affordable and an if used wisely, an appropriate investment for the novice investor.

Stock Talk: Wal-Mart’s Money Moves

WMT (Wal-Mart) has been on the radar lately and they are making money moves in order to keep up with the AMZN (Amazon) giant. So far this year, WMT has spent over $34 million in employee bonuses, expecting to go over $200 million in new store constructions and renovations, and the rebranding of their exclusive fashion lines- George, Time and Tru, Terra & Sky and Wondernation. Senior Vice President, Deanah Baker said in recent shareholder meeting,

“We listened to our customers and are proud to deliver apparel choices that meet at the intersection of everything they desire: on-trend styles, comfort, and quality, all at unbeatable prices.”

Fighing AMZN, WMT still holds the championship of operating the largest clothing retailer in the U.S., accounting for at least 8% of the country.

Though it seems that WMT is on a winning streak, investors were startled by the recent earning report of their decrease in online sales. WMT is expecting improvements for their two-day shipping and store pick-up features.

Many investors believe they still have a long way to go if they want to keep up- including their total debt takedown from $50 million to $46 million from 2016. However, long-term shareholders believe there is still hope and WMT’s money moves will reap the rewards.

App Review: Stash

Let’s talk about one of the newest innovative investing apps, Stash.

Stash is a great micro-savings app that let’s you start investing will as little as $5. With visual categories, it gives you a vivid selection of sectors you may want or like to invest in- ETFs named with “roll with buffett” or “small and mighty”.

Stash encourages the new investor to save their money into the account by promoting an option for weekly or monthly deposits. Stash will charge 0.25% to the account for those who have balances over $5,000. For accounts under $5,000, there is a $1 charge ($2 for retirement accounts).

I would reccomend Stash for the new investor- college student, single mom or anyone who wants to start but dosen’t have the time to learn about the market. Stash is very simple and easy to use, try it for yourself.

Stash is avalible to download and Apple and Android devices.

Stock Talk: Panic Selling

With the recent tariff troubles between U.S, China, and the typical New Year lows, it can be difficult to try not to panic sell. “Mrs. Market” is quick to tell you about the newest stocks to add to your retirement and the major sell-off in the month of February and March may have hurt your stock portfolio.

It is said that the average Bear market may descend to 28% and the average Bull market may ascend 130%. However, I cannot stress enough to you about how crucial it is to have your own set of rules.

I am apart of many investing groups and the difference between the common speculator and the seasoned investor is the seasoned investor is not quick to sell her/his securities. The seasoned investor is very patient, willing to wait until it is absolutely necessary to sell. In many cases, she/he will have a written strategy of the exact percentage that is customized to their portfolio.

Though I feel the market is still undergoing a correction (and it may be that way for quite some time), it’s very easy to lose money right now. Hold on tight and sell when absolutely have to.