An Investor’s Guide To After-Hours Trading (AHT)

So you want to dive into the world of hard-core trading. One way to do it is to deal with trading. There are two trading times that you need to know and they are trading during regular hours and the other one is called after-hours trading. The business of trading usually involves major and really significant exchanges in the society and the world of finance. The after-hours market used to not be a thing until technology came to the picture. Everything has almost gone digital now, which is why trading is no longer limited during regular office hours.

This wasn’t approved before, but it all changed upon seeing a huge growth potential to all kinds of investors and its great effects in the economy in general. After-Hours Trading used to only benefit huge companies because they were the only allowed to work with it. But a lot has changed over the past decades and now, literally everyone could now practice it.

 

There are of course a lot of advantages in doing AHT like having a wider bid-ask spreads. This means that as an after hours tradinginvestor, you can bargain more on the price that you want or can afford from an offer and eventually close a deal according to your budget. This is like the version of going to an auction although instead of bidding high, you bid low until you and the other party meet an agreement that would both work for you.

 

Lower liquidity rate is also another thing to be thankful when doing AHT. This means that an asset or fund won’t be easily bought or sold. An investor can always do something with the price or the bargaining for his or her own benefit. There is probably one setback doing AHT and that is the fact that affects and investor’s position since the trading is done outside the regular hours of business.

 

You will notice that the first couple of hours after the normal trading hours have closed are when AHT is at its peak. If you’re serious about really making money here, it is best to strike while the iron is hot and that means putting your game face on during those first two hours. This form of trading is starting to be a fad and it is looking like more investors are embracing this practice. It all happened since the rise of the Internet in the late 90s. It was already introduced in 1999, but it didn’t get much attention back then since there were still a lot of skeptics about it and not a lot of people were computer savvy unlike these days. Even toddlers can now navigate computers!

 

Given this information now, I would advise that you use it to your advantage and start practicing it as well. If you’re still a bit scared on doing this on your own, get a financial adviser or someone who is more experienced to walk you through the whole process.

 

 

 

 

Help! I’m In Love With My Investment! – The Need to Diversify

I love houses.  I love the feeling of finding an old run down house, buying it dirt cheap, and then renovating it, turning it into a wonderful thing of beauty for everyone to behold!

It starts with a vision in my mind, a concept I have.  Everyone likes a good makeover story.  Before and after pics.  Stuff like that.  I like the same stuff with my properties.  I love tearing down walls and expanding the space.  Adding height to the ceiling.  Flooding everything inside with sunlight and a wonderful outdoor feel.  Designing the space inside it, filling it with furniture, arranging everything inside, rearranging again and again.
Diversify Investment
I’ve been buying houses for investment purposes.  Capital gains.  But somehow, of all the houses I’ve bought, I haven’t been able to sell a single one.  It’s not that there aren’t any buyers. I would sometimes post a “for sale” sign and actually have an asking price that becomes acceptable to a buyer. But then I’d get cold feet.  I don’t push through with the sale.  I don’t know why, but I find it so hard to let go! So right now, all my capital gains are unrealized.

Each house I buy, big or tiny as it is, it’s like my baby.  They’re all my children!  I love taking care of them, spending for them.  Renovation costs, maintenance costs, association dues, real property tax.   It all feels so worth it because I love my houses so much.  I don’t live in any of them though.  Since I can’t part with a single one of them, I just put them out for lease.  That way, I’m able to defray some of my costs for supporting my little babies.

But recently, I’ve been hearing these whispers from different places.  Speculations of a property glut.  That in 2016, rental prices in my area are expected to go down 5% to 20%.  And recently, I was just surfing the net, looking for more houses, when I landed on this article about how people bankrupt themselves.

It said that if you don’t want to get wiped out, you have to make sure you dont  put all your eggs in one basket.  It makes sense.  All my money is in my houses.  Sure, they bring me some rental income.  And it’s also amazing that the market values have held up and even gone up with almost all my property investments.  But then again, at the back of my mind, I know that too much of a good thing can be a bad thing.   I have to learn to diversify.  Since all my money is in my houses, I have to divest before I can invest in another asset outside of real property.

Oh but it hurts so much!  I love my babies!  It’s like I’m about to put my very own child for adoption!  Well, not so much really. It’s just a house.  But the attachment is there.  It’s like a prized collection.  Every single one of them a realization of what I conceived.  It’s not just an investment.  It’s a passion.  It’s creation.  It’s almost a personal work of art.  But, I know, if I’m to maintain the finances I’ve worked so hard for all this time, I need to start making some decisive financial actions.

And so, I’ve come up with a plan.  I’m looking at the house with the least attractive location, the one that’s 100 meters from the faultline.  Yes, that’s the one.  I’m also looking at the one that’s subject to the highest tax and association dues.  And the one that has the least upside, that already peaked in its market value.  That’s how I’ll identify those houses which are better off sold.

Once I have a warchest from the sale proceeds, I’m planning to buy some Canadian Maple Leaf 1/10 oz gold and silver coins and maybe a Patek Phillipe Calatrava.   I’m also buying some agricultural land where I can do some organic farming and maybe run my own agriculture-related business.

I don’t think I’m going to buy stocks though.  I am just so bad at it.  I think I have bad luck with the stock market.  The first time I tried it, I bought based on some tips.  I was successful in losing 50%  of my money in just a few days.  The second time I tried it, I said to myself, I will be more prudent.  I will do more of my own research.  I watched stock prices for a month or so and managed to get whipsawed back and forth.  Buy high, sell low.  Buy high, sell low.  Which is a sure recipe for getting broke.  So I am definitely sure I am not going to buy stocks directly, on my own.  Maybe I can just put some of my cash in a mutual fund or those insurance things that pay a dividend because they’re tied up to the stock market.

Okay, so that’s my plan. Hopefully, I can successfully rebalance my portfolio.  It’s heartbreaking for me but I know I’ll have no one else to blame but myself should that day come when real estate prices come crashing down and I’m stuck, zeroed out, with a handful of them.  A fund manager from LOM once told me “You never, ever fall in love with an investment.”  So, as heartbreaking as it is, I have to say bye bye to a few of my babies.  Goodbye loves.

Investment Banking 101

InvestmentThere are a lot of things going on in the world of investment, and you would be surprised on the many departments that this industry is involved in. For some, they think that investing is just all about putting one’s hard earned money or savings to another avenue to make more money. It is actually more than that. Take investment banking for example. It is an area in investing that helps a lot with the economy, employment rate and even the rise of business in an era.

 

Investment Banking is another part of banking that is linked to creating capital for other big businesses, a country’s government and other large sectors in the industry of commerce and finance. This involves an institution called an investment bank and it has the ability to underwrite debts and equity funds for different companies or corporations, sales helps for funds like bonds and stocks and it is also used when companies plan to merge with another company or if they plan to buy another business.

investment banking

These banks also help in reorganizations, as well as broker trades for different companies that are privately owned and even institutions like the government. When it comes to giving advices and tips in stocks, investment banks are the best ones to give any investor guidance about the whole thing.

 

To make it even clearer for those who are encountering investment banking for the first time, these banks are responsible for helping big names in the banking business out there like JP Morgan Chase, Deutsche Bank and Bank of America just to name a few. Investment banks are basically the go-to people who would help in handling all the technicalities in any financial issues.

 

 

These guys know exactly what they’re talking about when it comes to knowing a company’s worth. They are also the best people to ask advice from when it comes to matters like merging and even buying another company.


Investment banks are perfect for companies who need help to have their business to go public. These people have the power to create documentation and other things that a company needs to have the approval of the Securities and Exchange Commission. They too could issue more funds or securities so their client or a company could raise enough money for their business.

 

They don’t just hire ordinary finance executives for this job, but rather specialists and are called investment bankers. These people are skillful and talented to handle their client’s needs (specifically huge corporations and even the government) in managing their big accounts, as to giving them more insights on risk management and analysis. If you’re going to enter the world of investing, it is a must that you are kind of a savant when it comes to risk management. If not you, then it is only wise to have a team who would do it for you.

 

These are some of the basics that you need to know about Investment Banking. We’ll dig deep to it on my next posts.