Note
Disclaimer The following outlines the tools I use for my own research and education. I’m sharing this for educational purposes only. It’s not financial, investment, legal, or tax advice, nor a recommendation to buy or sell anything. Always double-check any information yourself, as it might not be accurate. Past results don’t guarantee future ones, and investing involves risks. For advice tailored to your situation, consult a licensed financial or tax professional.
- Start at the top and work your way down.
- Keep learning over time - investing is a lifelong skill.
- Use tools like ChatGPT to ask questions, but always double-check with reliable sources.
This guide is meant to help you move beyond default retirement plans (like target date funds) and make more confident investing choices on your own.
Before investing, take care of your financial foundation:
| Goal | What to Do | Resource |
|---|---|---|
| Emergency Fund | Save 3–6 months of living expenses in a high-yield savings account. | N/A |
| Cut High-Interest Debt | Avoid credit card interest by paying in full monthly. Switch mortgage payments to bi-weekly to save on interest. | Mortgage Calculator |
| Use Tax-Efficient Accounts | Max out 401(k) and HSA contributions. HSAs offer triple tax advantages. Only tap into them for medical needs if absolutely necessary. | 401(k) Limits HSA Info |
Skipping these steps makes investing riskier and less effective.
ETFs (Exchange-Traded Funds) are collections of stocks bundled into one investment.
| Focus | ETF | Description |
|---|---|---|
| U.S. Small Companies | IWM | Tracks the Russell 2000 Index |
| U.S. Large Companies | SPY, VOO | Follows the S&P 500 |
| Tech-Oriented Growth | QQQ | Tracks top 100 non-financial tech stocks |
| Semiconductors & AI | SMH, AIQ | Focuses on chipmakers and AI companies |
| Market Volatility | VXX | Moves with short-term market fear (VIX futures) |
Think of ETFs like investing in a full basket of stocks instead of picking one apple.
Understanding these basics will make you a smarter investor.
| Term | Meaning | Why It Matters |
|---|---|---|
| Expense Ratio | Annual fund fee taken from your investment | Lower is better - it eats into returns |
| NAV | Price per ETF share based on total fund value | Helps assess fair value |
| Bid / Ask / Spread | Bid: buyer's offer; Ask: seller's price; Spread: difference | Smaller spread = lower trading costs |
| Market Order | Executes immediately at the best available price | Fast but less control |
| Limit Order | Sets your max buy/min sell price | Adds control, avoids surprises |
| Slippage | Trade executes at worse price than expected | Common in fast markets - use limit orders |
| Stop / Stop-Limit Orders | Sells when a price drops to (or below) a threshold | Useful for managing losses |
| Trailing Stop | Adjusts upward as the price rises | Helps protect gains |
| GTC / Market Close / Open | Controls timing of order execution | Useful for precise strategy |
| Cash vs. Margin Accounts | Margin lets you borrow; cash only uses your funds | Margin adds risk - be cautious |
| Position Sizing | How much money you put into a single trade | Prevents oversized losses |
| Risk/Reward Ratio | Balance of potential gain vs. risk taken | Aim for favorable ratios |
| Support & Resistance | Price points where stocks tend to pause or reverse | Helps set entry/exit levels |
| Liquidity | How easily you can buy/sell an asset | More liquidity = smoother trades |
| Volume & Spread | Validates movement strength | Avoid thin, volatile stocks |
| Holding Periods | Day = same day; Swing = days/weeks; Investing = long-term | Strategy affects taxes, risk |
| Commissions & Fees | What brokers charge per trade | Always check costs before trading |
| Diversification | Spread money across different assets | Reduces the impact of a single bad pick |
| Dollar-Cost Averaging | Investing a set amount on a schedule | Helps avoid market timing and smooths volatility |
| Rebalancing | Resetting your portfolio back to target allocations | Maintains your intended risk level over time |
| 60/40 Tax Treatment | A special tax rule under IRS Section 1256 where 60% of gains are taxed as long-term and 40% as short-term, regardless of holding period | Even short-term trades can get a lower blended tax rate, potentially saving money for active traders |
| Section 1256 Contracts | Includes certain futures, index options, and ETFs that hold these instruments (e.g., VXX, UVXY, PDBC) | Gains/losses are automatically marked-to-market each year and taxed using the 60/40 split |
| Blended Tax Rate | Combines long-term (max 20%) and short-term (ordinary income, up to 37%) tax rates | Reduces your overall tax burden compared to normal short-term trading, which is fully taxed as income |
| Mark-to-Market | End-of-year valuation where gains/losses are taxed whether or not the asset was sold | You may owe taxes on unrealized gains at year-end — plan cash flow accordingly |
| K-1 Form | A tax document some of these ETFs issue instead of a standard 1099 | K-1s are more complex and can delay tax filing, but they come with the benefit of more favorable tax treatment |
| SEC 10-K Filing | An annual report that public companies must file with the SEC, detailing financial performance, risks, and operations | It's one of the most detailed sources of information about a company's business and financial health |
| SEC 8-K Filing | A report companies file to announce major events (e.g., earnings releases, leadership changes, mergers) | Gives timely insight into news that may significantly affect a company’s stock price |
| Golden Cross | Chart pattern when the short term moving average (MA) (e.g. 50-day) crosses above the long-term MA (e.g. 200 day) | This indicates a bullish breakout. |
| Death Cross | Chart pattern when the short term moving average (MA) (e.g. 50-day) crosses below the long-term MA (e.g. 200 day) | This indicates a bearish breakout. |
| Term | Strategy Meaning |
|---|---|
| Support and resistance trading | Buy near support, sell near resistance, assuming these levels will hold (or the opposite if you're trading short positions). |
| Swing trading | Hold positions for several days to capture medium-term moves, often combining elements of trend and reversal trading. |
| Multi-timeframe alignment strategy | Using larger timeframes to define the market trend and smaller timeframes to fine-tune your trade entries, which is a sound approach but can be adjusted for better balance. |
| Trend following | Trade in the direction of the overall market trend, often using moving averages or trendlines as confirmation. |
| Breakout trading | Enter when price breaks through support, resistance, or a consolidation range, expecting continuation in that direction. |
| Range / Mean reversion trading | Buy near support and sell near resistance within a defined range, assuming prices will revert to the mean. |
| Mean reversion | Assume prices will move back toward an average (like a moving average or Bollinger Band) after stretching too far. |
| Momentum trading | Enter trades when price is moving strongly with high volume or volatility, aiming to ride the surge. |
| Pullback trading | Wait for a temporary dip in an uptrend (or rally in a downtrend) before entering in the direction of the main trend. |
| Scalping | Take very short-term trades, seeking small profits on quick moves, repeated many times throughout the day. |
| Bias | What It Is | Why It Matters | Who It Affects Most |
|---|---|---|---|
| Loss Aversion | Hating losses more than enjoying gains | Can cause you to hold losers or sell winners too early | Both (universal human bias) |
| Recency Bias | Believing recent trends will continue forever | Causes poor timing decisions | Beginners (less long-term perspective) |
| Herd Mentality | Following what others are doing without analysis | Can lead to bubbles, crashes, or chasing trades | Beginners (relying on others’ signals) |
| Confirmation Bias | Only paying attention to info that supports your view | Leads to poor research and blind spots | Both, but stronger in beginners |
| Anchoring | Fixating on a reference point (like an entry price) | Makes it hard to cut losses or reassess objectively | Both, but especially beginners |
| Disposition Effect | Selling winners too early and holding losers too long | Hurts long-term portfolio growth | Beginners |
| Gambler’s Fallacy | Believing past outcomes change future odds | Leads to false expectations about “due” moves | Beginners |
| Sunk Cost Fallacy | Sticking with a bad trade because you’ve already invested | Increases losses by refusing to exit | Both, but especially beginners |
| Availability Bias | Overweighting recent news or memorable events | Skews judgment away from statistical reality | Beginners |
| Regret Aversion | Avoiding action to avoid being wrong | Leads to missed opportunities and paralysis | Beginners |
| Endowment Effect | Overvaluing what you already own | Prevents rational selling or rebalancing | Both, often long-term investors |
| Overconfidence | Thinking you’re better at this than you are | Often leads to risk-taking and avoidable losses | Experienced traders (after success streaks) |
| Self-Attribution Bias | Taking credit for wins but blaming luck for losses | Blocks honest self-assessment and improvement | Experienced traders |
| Illusion of Control | Believing you can predict or control randomness | Leads to overtrading and oversized positions | Both |
| Survivorship Bias | Focusing only on winners and ignoring failures | Creates unrealistic expectations about success rates | Both |
| Status Quo Bias | Preferring to do nothing even when change is needed | Keeps portfolios misaligned with reality | Long-term investors |
| Framing Effect | Decisions change based on how info is presented | Risky choices may look safer (or vice versa) | Both |
Tip: Keep a journal of your decisions and learn from the outcomes.
| Term | Meaning | Why It Matters |
|---|---|---|
| Cost Basis | Price you paid (plus fees) | Used to calculate your profit or loss for taxes |
| FIFO / LIFO / Low/High-Cost | Methods for choosing which shares get sold | Affects how much tax you pay |
| Averaging Down | Buying more after price drops | Lowers your average cost - risky if stock keeps falling |
| DRIP | Reinvesting dividends automatically | Helps compound gains over time |
| Loss Recovery Rate | The % gain needed to recover from a % loss | Shows why protecting your capital is crucial |
| % Loss | % Gain Needed | Multiplier to Break Even |
|---|---|---|
| 10% | 11.1% | 1.11× |
| 15% | 17.6% | 1.18× |
| 20% | 25.0% | 1.25× |
| 25% | 33.3% | 1.33× |
| 30% | 42.9% | 1.43× |
| 35% | 53.8% | 1.54× |
| 40% | 66.7% | 1.67× |
| 45% | 81.8% | 1.82× |
| 50% | 100.0% | 2.00× |
| 55% | 122.2% | 2.22× |
| 60% | 150.0% | 2.50× |
| 65% | 185.7% | 2.86× |
| 70% | 233.3% | 3.33× |
| 75% | 300.0% | 4.00× |
| 80% | 400.0% | 5.00× |
| 85% | 566.7% | 6.67× |
| 90% | 900.0% | 10.00× |
| 95% | 1900.0% | 20.00× |
| 99% | 9900.0% | 100.00× |
| Term | What It Means |
|---|---|
| Short-Term Capital Gains | Profits from investments held under 1 year - taxed as regular income |
| Long-Term Capital Gains | Profits on investments held over 1 year - taxed at a lower rate (0%, 15%, 20%) |
| Qualified Dividends | May qualify for lower long-term capital gains tax rate |
| Capital Losses | Can offset capital gains or up to $3,000 in regular income annually |
| Tax-Loss Harvesting | Selling losers to reduce your tax bill while staying invested |
Knowing the difference in holding periods isn't just about strategy - it affects your tax bill directly.
| Term | What It Means to Stock Markets | Additional Notes | Reporting Cycle |
|---|---|---|---|
| Nonfarm Payrolls (NFP) | Key indicator of job growth; strong numbers can boost confidence, lifting stocks. | Measures net change in total paid jobs in the month; includes hires and separations. | Monthly |
| FOMC Statements and Meeting Minutes | Provide clues on interest rates and policy; markets react to tone and guidance. | Covers Federal Open Market Committee decisions, statements, and detailed minutes. | Approximately 8 times/year (after Fed meetings) |
| Consumer Price Index (CPI) | Measures inflation; higher inflation can pressure stocks due to rate concerns. | Reflects changes in prices for a basket of goods and services. | Monthly |
| Personal Consumption Expenditures (PCE) Price Index | Fed’s preferred inflation gauge; influences monetary policy expectations. | Focuses on consumer spending patterns, considered more comprehensive than CPI. | Monthly |
| Gross Domestic Product (GDP) | Broad measure of economic growth; stronger GDP usually supports stocks. | Measures total economic output; includes consumer, business, and government spending. | Quarterly |
| Initial Jobless Claims | Weekly labor market health check; rising claims may signal economic weakness. | Counts new unemployment benefit claims; a flow measure of layoffs; does NOT sum to NFP jobs. | Weekly |
| Unemployment Rate | Shows labor market health; lower rates generally positive for stocks. | Based on a separate household survey from the NFP payroll survey. | Monthly |
| Retail Sales | Indicates consumer spending strength; higher sales generally positive. | Tracks total sales at retail stores; key driver of economic growth. | Monthly |
| ISM Manufacturing and Non-Manufacturing Indexes | Reflect business activity and sentiment; expansion supports stocks. | Surveys businesses on production, employment, and new orders in manufacturing and services. | Monthly |
| Producer Price Index (PPI) | Early sign of inflation; rising PPI can signal future consumer price increases. | Measures inflation at the wholesale level before it hits consumers. | Monthly |
Recommended Newsletters:
- Investopedia
- Morning Brew
- Money Flows Free newletter at the bottom of the page
- Capitol Trades (top right to subscribe)
- Chartr +
- Visual Capitalist
- Map Signals (scroll and you'll be prompted to enter your e-mail address)
- EarningWhisper
- Granite Shares
- Quiver Quantitative
- Stockcharts
- Nasdaq pre-market Review every trading day at 8:30 am EDT
Economic Calendars:
| Topic | Summary | Use Case |
|---|---|---|
| Earnings Metrics | Watch EPS, guidance, YoY changes | Trade around earnings season |
| Track Big Investors | Use 13F data to see hedge fund moves | HedgeFollow |
| Strategy | Description |
|---|---|
| Leveraged ETFs | TQQQ, SQQQ - trade short-term with care; high risk |
| Income ETFs | JEPI, QQQI - generate monthly income |
| Preferreds & Private Credit | ARCC, PBDC - yield-focused alternatives |
| HIPS ETF | Combines REITs, MLPs, BDCs, and CEFs for steady income |
| Explore HIPS Holdings |
| Indicator | What It Does | Setting |
|---|---|---|
| SuperTrend | Measures Average True Range (ATR) within a given time frame and indicates trend direction. | Factor: 21, Multiplier: 1 |
| Relative Strength Index (RSI) | Looks over 14-day period to tell if a security is overbought (over 70) / oversold (under 30) | Default |
| Stochastic Relative Strength Index (StochRSI) | Overbought (over .8) /oversold signal (under .2) that's more sensitive than RSI alone for shorter time frames. | Default |
| 50/200 Day Moving Average (50/200 MA) | Trend confirmation - Golden/Death Cross | Default |
| Heikin Ashi | Smooths candles | Default |
Think of indicators as your dashboard while driving through the market. Using any one indicator alone will often result in false positives. For the best probabilistic results, traders should factor in multiple indicators and pair it with economic news.
- Pattern Day Trader Rule (PDT): Don’t place 4+ day trades in 5 days in a margin account under $25k.
- Wash Sale Rule: Can’t deduct a loss if you buy back the same stock within 30 days. Doesn't apply to retirement accounts.
- Sunk Cost Fallacy: The idea that you've already lost too much and that staying in a bad trade is better because it will eventually reverse.
| Platform | News | Research | Charting | Trading | Screener | Free / Paid | Comment |
|---|---|---|---|---|---|---|---|
| CNBC | ✔️ | ✔️ | ✔️ | ❌ | ❌ | Both | News aggregator for global markets. Paid tier isn't worth it for most users. |
| Yahoo Finance | ✔️ | ✔️ | ✔️ | ❌ | ❌ | Both | Better live charting during market hours. Covers more instruments than CNBC. Paid tier not essential. |
| Seeking Alpha | ✔️ | ✔️ | ❌ | ❌ | ✔️ | Mostly paid | In-depth analysis, earnings transcripts, and user-generated research. Limited free articles; most content paywalled. |
| TradingView | ❌ | ❌ | ✔️ | ✔️ | ✔️ | Both | Excellent charting. Can connect to various brokers for trading. |
| Robinhood | ✔️ | ✔️ | ✔️ | ✔️ | ❌ | Free | Very simple interface. Paper trading is options-only. Some premium news within the app. |
| Webull | ✔️ | ✔️ | ✔️ | ✔️ | ❌ | Free | More features than Robinhood. Great for paper trading. Includes some premium news. |
| Zacks | ✔️ | ✔️ | ❌ | ❌ | ✔️ | Both | Sceener with easy to read buy/sell ranking. |
| FinViz | ❌ | ✔️ | ✔️ | ❌ | ✔️ | Both | Sceener with lots of ways to drill down but not very mobile friendly. Free version has lots of annoying ads but the data. |
| Market Chameleon | ❌ | ✔️ | ✔️ | ❌ | ✔️ | Both | Sceener mostly used for Options. Lots of great features for free users. |
| Portfolio123 | ❌ | ✔️ | ✔️ | ❌ | ✔️ | Paid | Sceener mostly used for Options. Lots of great features for free users. How to use P123 |
- Stock Investing for Dummies - Search for the latest version
- Common Stocks and Uncommon Profits and Other Writings by Philip A. Fisher - (Dated, but the principales still apply)
- One up on Wall Street by Peter Lynch - (Dated, but the principales still apply)
- The Psychology of Money by Morgan Housel
YouTube / Podcasts for investing
YouTube options focused channels
Total Returns
- TotalReturns.com Calculate and compare total returns with dividends
- Compounding Interest Calculator
- Unusual Whales
- Market Chameleon
- Option Strat - Paid only
- Options Play - Paid only
- Flowalgo - Paid only
- Trade Alerts by CBOE - Paid only
- [MarketPulse GPT](https://