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Purchase mortgage rates climbed 55 basis points, reflecting surging inflation and the Federal Reserve‘s (The Fed) tightening monetary policy.

According to the latest Freddie Mac PMMS, purchase mortgage rates this week averaged 5.78%, compared to 5.23% the week prior. A year ago at this time, 30-year fixed rate purchase rates were at 2.93%.

“Mortgage rates surged as the 30-year fixed-rate mortgage moved up more than half a percentage point, marking the largest one-week increase in our survey since 1987,” said Sam Khater, Freddie Mac’s chief economist, according to a statement.

The government-sponsored enterprise index accounts solely for purchase mortgages reported by lenders during the past three days. Another index showed rates greater than 6% this week.

Black Knight’s Optimal Blue OBMMI pricing engine, which includes some refinancing data — but excludes cash-out refis to avoid skewing averages – measured the 30-year conforming mortgage rate at 6.03% Wednesday, up from 5.5% the previous week. 

The 30-year fixed-rate jumbo was at 5.46% Wednesday, up from 4.99% the week prior, according to the Black Knight index. 

Creating a path to success in today’s purchase market

Meeting the needs of a new generation of homebuyers while managing the ebbs and flows of a volatile housing market is a major endeavor for any mortgage lender. So, what should lenders be doing to thrive in the face of a post-pandemic housing market rife with new hurdles?

Presented by: Calyx

Higher rates usually reduce borrowers’ demand for mortgage loans. But, this week, mortgage application volume rose 6.6% from the past week as potential borrowers wanted to guarantee a lower rate: Refi applications increased 4% and purchase apps ticked up 8%, according to the Mortgage Bankers Association.

Overall, mortgage rates are following the Fed’s inflation-fighting monetary policy. Wednesday, the Fed raised the federal funds rate by 75 basis points, to 1.50-1.75%, a hike not seen since 1994. Friday, the inflation price index showed 8.6% increase in May.

And more rates hikes are expected to come out of the Fed meeting in July. During a news conference following the Fed’s committee meeting, Chairman Jerome Powell said: “Either a 50 bps or a 75 bps increase seems most likely at our next meeting.”

However, Powell said the central bank will react to incoming data.

“Any guidance that we give is always going to be subject to things working out about as we expect,” he said. “I like to think though that our guidance is still credible, but it’s always going to be conditional on what happens.”

The Fed’s actions are intended to restore greater balance to supply and demand in the housing market, which now faces inventory problems and rising housing prices.

“Higher mortgage rates will lead to moderation from the blistering pace of housing activity that we have experienced coming out of the pandemic, ultimately resulting in a more balanced housing market,” Khater said.  

According to Freddie Mac, the 15-year fixed-rate purchase mortgage averaged 4.81% with an average of 0.9 point, up from last week’s 4.38%. The 15-year fixed-rate mortgage averaged 2.24% a year ago.

The 5-year ARM averaged 4.33%, with buyers on average paying for 0.3 point, up from 4.12% the week prior. The product averaged 2.52% a year ago. 

Source: housingwire.com

Apache is functioning normally

One of the newest mortgage lenders out there goes by the name “Wesley Mortgage,” an ode to the founder of the Methodist Church, John Wesley.

Despite being basically brand new, they are already the “Official Mortgage Provider of the Tennessee Titans” football team.

They also claim to be one of America’s top 500 fastest growing companies, which aligns with their mission to speed up the home loan process using the latest technology.

The company also happens to be located across town from Churchill Mortgage, which is Dave Ramsey’s preferred mortgage lender.

Let’s discover more about this newcomer to see if they can shake things up in the mortgage industry.

Wesley Mortgage Fast Facts

  • A direct-to-consumer mortgage lender
  • Offers home purchase loans and mortgage refinances
  • Founded in 2021, headquartered in Franklin, Tennessee
  • Currently licensed in four states: AL, KY, SC, and TN
  • Official mortgage provider of the Tennessee Titans

Wesley Mortgage is a new direct-to-consumer mortgage lender based out of Franklin, Tennessee that will operate under the “Wesley” umbrella.

Nashville-based entrepreneur Chuck McDowell also runs several other businesses under the name, including Wesley Financial Group and Wesley Insurance, LLC.

Interestingly, his main business is timeshare exits, and they’ve apparently eliminated more than $250 million in so-called timeshare mortgage debt.

If they can do that, there’s a good chance they can get you a mortgage too, as I’d say the former is probably one of the trickier things to wrangle out of.

Anyway, despite launching back in September, they’re already growing fast and headed by mortgage veteran Ed Wallace.

They’re currently licensed in four states, including Alabama, Kentucky, South Carolina, and Tennessee.

However, they have plans to be in all 50 states within 18 to 24 months, with licenses already submitted in Florida, Georgia, North Carolina, Texas, and Virginia.

How to Apply with Wesley Mortgage

To get started, you can either call them up or visit their website. If you go online, there’s what amounts to a lead form that you can fill out.

Once submitted, a loan officer will contact you to discuss your goals, eligibility, and loan pricing.

If you like what you hear, you can apply for a mortgage online using some of the newest technology available.

Their digital mortgage application is powered by Wipro Gallagher. It allows borrowers to complete the form with minimal data entry and auto-populate things like credit, asset, and income information.

You can upload documents, e-Sign disclosures, compare products and rates, and monitor the progress of your loan as it makes its way through underwriting.

Additionally, Wesley Mortgage customers get a single point-of-contact to walk them through every step of the loan process.

This differs from other lenders that hand off the borrower to a processor, an underwriter, a closer, and so on.

In a recent press release, Wallace referred to this as “white glove” treatment. Aside from allowing for better communication, it could simplify things for the borrower and speed up the process.

Along with that, Wesley Mortgage has pushed underwriting to the front of the process to generate approvals quicker and hit turn times faster than traditional lenders.

All of this should make the home loan process a little less painful, and perhaps cheaper as well if they can leverage the latest tech.

Loan Programs Offered by Wesley Mortgage

  • Home purchase loans
  • Mortgage refinances: rate and term and cash out
  • Conforming loans backed by Fannie Mae and Freddie Mac
  • Jumbo loans
  • Non-QM loans

Wesley Mortgage offers both home purchase loans and refinance loans, including cash out refinances if you wish to tap your home equity.

They say you can get up to $1 million in home equity, which certainly puts them in the jumbo loan realm.

Borrowers with cheaper properties and/or smaller loan amounts can also take out a conforming mortgage backed by Fannie Mae or Freddie Mac.

The company also expects to gain FHA and VA approval soon (if it hasn’t already), meaning you’ll be able to obtain an FHA loan or VA loan.

And those who have situations outside the norm might be able to take advantage of a non-QM loan, which are typically reserved for those with unique loan scenarios.

The only major loan type they appear to be missing at the moment is the USDA loan, geared toward those in rural areas of the country.

My assumption is both fixed-rate and adjustable-rate mortgages are available in a variety of different loan terms.

Wesley Mortgage Rates

At the moment, Wesley Mortgage does not openly publicize its mortgage rates online. In order to get today’s pricing, you’ll need to get in contact with a licensed loan officer.

The same goes for lender fees – they don’t mention them on their website, so be sure to ask about any application fee, loan origination fee, and so on.

While convenience and technology are great, so is a low-priced mortgage that you can keep for the next 30 years.

Hopefully they’ll provide more pricing information online in the near future as they continue to expand nationally.

Wesley Mortgage Reviews

Because they’re basically a few months old, their customer reviews are few and far between.

However, they’ve got a 4.94/5-star rating on Zillow from about 20 reviews, many of which say the interest rate obtained was lower than expected.

It’s obviously not a lot to go on, but at least it’s a good start. I will update this page when more reviews come in.

While they aren’t yet on the Better Business Bureau (BBB) website, their sister company Wesley Financial has a solid 4.85/5 customer rating from about 800 reviews.

And the company has an ‘A+’ rating based on complaint history. So hopefully the mortgage venture follows suit.

To sum things up, Wesley Mortgage appears to be an ambitious young mortgage lender with its sights set on becoming a household name, especially in Tennessee.

Their focus on customer service coupled with the latest technology could make them a good choice, whether you’re buying your first home or refinancing an existing mortgage.

The only question mark is their pricing, and it will take time to see how they deliver on their promise to fix the complex mortgage process.

See other top Tennessee mortgage lenders to consider in your home loan search.

Wesley Mortgage Pros and Cons

The Pros

  • Offer a digital mortgage application that is mostly paperless
  • Can apply for a home loan online using the latest technology
  • Home buyers can get pre-qualified in just 15 minutes
  • Customers get one point of contact for the entire loan process
  • Offer a good variety of loan programs including jumbos and non-QM options
  • Parent company is well-liked and has lots of excellent reviews

The Cons

  • Only licensed in four states currently
  • No physical branch locations
  • Do not publicize mortgage rates or lender fees
  • May not service your loan after closing

(photo: Mike Burton)

Source: thetruthaboutmortgage.com

Apache is functioning normally

This year’s down market has shifted what mortgage lenders are seeking from their technology partners, because the spare dollars for nice-to-haves are no longer around. The booming housing market the past few years brought with it a surge in mortgage tech adoption, and while this movement towards innovation has been welcomed by mortgage parties, now more than ever lenders are looking at the data behind these mortgage tech claims. Return on investment and cost savings around must-haves are now the focus in a lot of tech partnerships. 

To learn more about this shift in mortgage tech needs and the changing dynamic in vendor-lender partnerships, HousingWire interviewed John Hedlund, California Mortgage Bankers Association (CMBA) chairman and chief operating officer at AmeriHome Mortgage Company and Wes Iseley, CMBA board president of residential and senior managing director of Carrington Holding Company.

California is home to some of the largest lenders which allows the association to keep a very strong pulse on the needs and trends in housing. The associations’ annual Mortgage Innovators Conference in Anaheim, California in June is designed to explore the revolutionary world of mortgage technology and helps attendees gain valuable insights from experienced industry professionals. 

“The Mortgage Innovators Conference is unique in our space because there’s more of a conversation and interaction with lenders and technology companies, or innovators. It was part of our goal to not just have a bunch of booths where people are pushing products and instead where they’re solving problems that lenders have today,” said Hedlund.

“The beauty of the Mortgage Innovators Conference, and what we’re trying to build there, is really more of that two-way dialogue. The companies that are coming are listening and trying to enhance, improve and develop their products, and will reposition what they’ve already built or are in the process of building,” he said.

This collaborative mindset is what will define the lenders and tech providers that grow. In the following Q&A, Hedlund and Iseley discuss what innovation looks like today, the current table stakes in mortgage tech, what tech companies should keep in mind when talking to lenders and more. 

HousingWire: What are some of the biggest areas that lenders are looking at technology to solve?

John Hedlund: In 2021, business was crazy good, and lenders had more money. You had a lot of vendors and startups selling, for lack of a better term, bells and whistles. They were, in my opinion, nice-to-haves and didn’t really move the needle. You’d have an LO come over to your company, saying that they need a certain software because they’re comfortable with it, so lenders would buy it because they could afford it. We’re in a different world now. Most lenders lost money last year.

So when I think of technology today, I talk to our providers about how they need to show their economic value add more than ever. How do you take costs out of my business? How have you proven that, factually?

When I talk to clients and ourselves, I focus on “what do we really need that moves the needle?” And, “What is just nice to have?” I’m getting rid of the nice-to-haves, and we’re finding other vendors that want to come in.

For most of the guys today, it’s all bottom-line driven. They need to be liquid, and they don’t know what’s next with rates.

Wes Iseley: There are some real issues that are still out there with speed to close. The first thing with speed to close, anything we can do to income verifications, which we have come a long way in bringing that in. There are different models out there trying to bring in income verification quickly.

The second one would be from a compliance standpoint — wire fraud. Everybody has to have that compliance and quality in place because that will drive costs up. 

So the whole time we’re speeding things up, and at the same time, we need to have our protections in place so we don’t have surprise losses. There’s a lot of work going on the front and the back end from a compliance perspective.

HW: What are the new table stakes when it comes to technology?

JH: There’s always way more ideas than are actually going to ever catch on. It’s hard to carve out a new niche where there’s really a value add, but ultimately, that’s where I would start. What is my value proposition? And, it has to be somewhat hard today; it can’t be soft. By soft, I mean that it’s a nice-to-have. I think of an economic value-add. If followed all the way through the process, does it move the needle somewhere? 

WI: Right now, if you can’t make it easy for the customer, that customer is going to get frustrated and go away. It’s tough out there right now. This includes the ease of use for the customer and the communication in keeping all people involved in that transaction informed as it goes along. Especially in a purchase money close, you can’t mess up the close when the moving truck is outside. Keeping everybody informed as the process goes is a must.

HW: What should mortgage tech companies keep in mind when talking to lenders?

JH: There’s a lot of value in talking to a variety of different lenders in different markets, and testing, tweaking and revising your business model when it needs change. If you want to have something that isn’t a niche product, it has to ring true with the masses. 

When we started AmeriHome, our mindset wasn’t to chase shiny objects. From the start, our goal was to be a top-five correspondent lender, and so we built the company with scale in mind and our value prop very simplistically became, “How are we going to add value to our clients?” 

I see a lot of tech vendors that have great ideas in isolation that aren’t ever going to necessarily be at scale because it’s a niche-type model. In most cases, I wonder if they’ve vetted that and spent, not an hour, but weeks or months finding out what their clients really need and solving a problem versus creating a product to try and find a problem.

HW: What does housing innovation look like in today’s market?

WI: The big issue out there is affordable housing. While there are modular homes, manufactured homes and factory-built homes, there are so many restrictions. In California for example, there’s a fee to transport the manufactured house, which adds $25,000 to $30,000.

You need to get down state by state and say what are the restrictions? I think factory-built housing and the precision of the building itself is of a higher quality and that’s a way to solve for affordable housing. You’re not going to affect land price, so it’s the build. This is a big solution that everybody should be working on.

Source: housingwire.com

Apache is functioning normally

Home Decor Market in the U.S Set to Surpass $158,929.1 million ;

According to a new report published by Allied Market Research, titled, “U.S. Home Decor Market by Product Type, Income Group, Price, Distribution Channel & Category: Opportunity Analysis and Industry Forecast, 2020-2027,” The U.S. home decor market size was valued at $125,813.0 million in 2019, and is estimated to reach $158,929.1 million by 2027, registering a CAGR of 8.0% from 2020 to 2027. In 2019, the floor covering segment accounted for significant contribution in the U.S. home decor market share, and is expected to grow at a CAGR of 8.4% throughout the forecast period.
The U.S. home decor market has witnessed significant growth over the years, and is expected to grow at a steady pace during the forecast period. This is attributed to the fact that market players are focusing on developing eco-friendly products, owing to rise in environment awareness. The floor covering segment occupied the largest share in the overall home decor market in 2019, and is expected to maintain its leading position throughout the forecast period, owing to the wide adoption of floor coverings,

The home decor market in U.S. is driven by surge in disposable income and improvement in living standards. Moreover, the rise in affinity of consumers toward consumer-friendly home décor products are anticipated to boost the demand for home decor products. However, availability of low-quality and counterfeit products and fluctuations in the prices of raw materials used to manufacture these products restrain the market growth. Conversely, surge in demand for trendy and unique furniture is anticipated to provide lucrative opportunities for the U.S. home decor market growth.

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The U.S. home decor market is segmented based on product type, distribution channel, price, income group and category. Depending on product type, the market is divided into furniture, home textile, and floor covering. By distribution channel, it is fragmented into supermarkets & hypermarkets, specialty stores, e-commerce, and others. Based on the price, the market is segmented into premium and mass. Based on the income group, the market is segmented into lower-middle income, upper-middle income, and higher income. Based on category, the market is segmented into eco-friendly and conventional.

According to the U.S. home decor market analysis the floor covering segment generated the highest revenue in 2019, and is expected to remain dominant throughout the forecast period. The flooring segment is also expected to witness the highest growth rate of 8.4% from 2020-2027.

According to the U.S. Home Decor market forecast based on distribution channel, the specialty stores segment was the highest contributor to the U.S. market in 2019 and is expected to remain dominant through 2020-2027. However, the E-commerce segment is expected to grow at a higher growth rate through the forecast period.

Based on the price, the mass segment was the highest contributor to the U.S. home decor market in 2019 and is expected to remain dominant through 2020-2027. However, the premium segment is expected to grow at a higher growth rate through the forecast period

Based on the income group, the higher income segment was the highest contributor to the U.S. home decor market in 2019 and is expected to remain dominant through 2020-2027. The upper-middle income segment is expected to grow at a notable growth rate through the forecast period.

Based on the category, the conventional segment was the highest contributor to the U.S. home decor market in 2019 and is expected to remain dominant through 2020-2027. The eco-friendly segment is expected to grow at a highest growth rate through the forecast period

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Key findings of the study

The U.S. home decor market was valued at $125,813.0 million in 2020 and is estimated to reach $158,929.1 million by 2027, growing at a CAGR of 8.0% through the forecast period.
Based on product type, the floor covering service segment would witness the fastest growth, registering a CAGR of 8.4% during the forecast period.
In 2019, based on distribution channel, the specialty stores segment held the highest share, accounting for nearly half of the U.S. home decor industry.
In 2019, based on the price, the mass segment was the most prominent segment and is expected to grow at a significant CAGR throughout the forecast period.
Conventional segment was the dominant segment in 2019, accounting for a considerable share in the U.S. market.

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✅ Scrutinize in-depth global market trends and outlook coupled with the factors driving the market, as well as those restraining the growth to a certain extent.
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Check Our Related Reports :-
Hair Salon Equipment Market https://www.alliedmarketresearch.com/hair-salon-equipment-market-A06838

Handheld Marijuana Vaporizer Market https://www.alliedmarketresearch.com/handheld-marijuana-vaporizer-market-A06857

Home Care Products Market https://www.alliedmarketresearch.com/home-care-products-market-A06832

Our Trending Research Report:-
Kitchen Appliances Market :- https://www.openpr.com/news/2299156/kitchen-appliances-market-expected-to-reach-377-70-billion

Household Vacuum Cleaners Market :- https://www.openpr.com/news/2308150/household-vacuum-cleaners-market-is-expected-to-reach-16-657

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Allied Market Research is market research, consulting, and advisory firm of Allied Analytics LLP. Founded in 2013, the firm has been instrumental in offering high-quality syndicated and customized market research reports, consulting services, and useful insights to leading market players, startups, investors, and stakeholders. Driven by the aim to eliminate sub-standard data and become a successful partner for organizations, Allied Market Research has been innovating continuously, expanding the product & service portfolio, and implementing the client-first approach since its inception. With the clientele spanning more than 7,000 organizations that also include a majority of Fortune 500 companies, AMR has a proven track record of helping and serving the global clientele and playing a major role in their success.

This release was published on openPR.

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Apache is functioning normally

NFTs or non-fungible tokens have gained a lot of momentum in the last few months. Whether it’s because of the digital art, the technology behind them, the money-making potential, or a simple case of FOMO, people can’t get enough of them.

Each day, we wake up to stories of artists and celebrities buying and selling NFTs for insane amounts. Case and point? Eminem recently shelled out 123.45 Ethereum (currently worth over $400K) for a Bored Ape NFT — and that’s not even the most expensive one in the market.

Eminape NFT; Source: The Guardian

As someone who’s crawling herself out of student debt and on a budget, paying six figures for a digital asset is simply out of the question.

But are all NFTs that expensive? Or is there a way to start small?

I talked to NFT trader investor, consultant, advisor, and founder Ish Verduzco to find out, and, to my surprise, his answers were very promising.

What’s Ahead:

Do you have to be rich to invest in NFTs?

Last March, digital artist Mike Winkelmann, better known as “Beeple,” made headlines when an NFT of his work was sold for a record-breaking $69 million.

Then, we saw Snoop Dogg and Grimes buying and selling NFTs for six and seven figures, while Paris Hilton joined forces with Bill Ackman to back a $300 million NFT Foundation.

With figures like that, it’s easy to think that NFTs are some sort of exclusive investment that only the rich can afford. However, that couldn’t be further from the truth — at least that’s what both Verduzco and the data say. Verduzco says:

“Yes, there is some level of barrier to entry at the moment. But I wouldn’t say that they’re for the ultra-rich either…I think there’s an opportunity to get in.”

What makes NFTs more expensive than your average investment is that most of them are minted through smart contracts that live in the Ethereum blockchain, which Verduzco says is one of the most expensive ones, partly due to the gas fees.

Gas fees are basically the transaction fees of the Ethereum network. These fees are non-refundable, and must be charged to cover the costs of the energy used by the computers when validating and recording each NFT transaction. Verduzco says:

“To give you a very quick overview, it can cost like $50 to a few $100 just to transact, plus the cost of the NFT itself.”

So, how much money do you need to start investing in NFTs?

A recent study by Canadian concept artist Kimberly Parker, which analyzed public API data from sales on popular NFT marketplaces, like OpenSea, Nifty Gateway, Rarible, SuperRare, and MakersPlace, found that most NFTs are actually sold for under $200.

That’s right, you don’t need six figures — not even four figures, to own an NFT.

Verduzco says that a good amount to get started would be $500, which isn’t outrageous. After all, popular investment firms, like Wealthfront and E*TRADE, require minimum deposits of that same amount for you to start investing in their automated portfolios. 

Read more: What Is An NFT? – How Nyan Cat Was Sold For $600,000

Why now may be a good time to get into NFTs

Many crypto and NFT experts — Verduzco included, think that the blockchain and smart contract technology behind NFTs will spread like wildfire across multiple industries, changing the world as we know it.

“It’s going to be integrated into almost everything we do,” Verduzco says.

“It’s not just going to be just art, it’s going to go into music, it’s going to go into film, it’s going to go into transacting things like deeds to houses, and anything that has to do with verification of ownership.”

Here’s a quick example of how this could work:

When you’re buying a house, the bank needs to make sure that the title is free and clear before closing on the loan. This process alone can take two weeks, and you’ll have to pay additional fees to the third-party company conducting the search.

But if the house was registered and sold as an NFT, for example, each transaction pertaining to that property would’ve been accounted for and recorded in the blockchain. So, clearing the title would only take a couple of hours instead of weeks, and you’d be able to get rid of the middleman and unnecessary fees.

Although the concept of NFTs is still in its early stages, Verduzco says that “​​it’s better to be ahead,” and — if possible — invest in it, so you learn the inner workings firsthand.

This will allow you “to spot more opportunities to make money, or find other people that are in this space who compliment your strengths and weaknesses in order to build projects based on needs.”

How to start investing in NFTs when you’re on a budget

As part of my convo with Verduzco, we bounced off some ideas on how you can get into the NFT game without breaking the bank. These are a few of them.

Read more: How To Create And Sell NFTs – The New Way To Sell Your Art

Explore NFT projects that use cheaper cryptocurrencies

If you visit OpenSea, which is currently the world’s largest NFT market, you’ll see that the vast majority of NFTs listed there use the Ethereum network (aka the most expensive NFT blockchain).

But just because most NFTs use this blockchain, that doesn’t mean that there aren’t other options. 

Blockchains like Solana and Polygon (which was created as an efficient solution to the Ethereum network and is compatible with it) use cryptocurrencies that are much cheaper than ether, which is Ethereum’s currency.

Here’s an example:

At the moment this article was written, one SOL, which is Solana’s cryptocurrency, was worth $0.26, while one MATIC, which is Polygon’s cryptocurrency, was worth $2.13. But, if you wanted to purchase one ether, which is Ethereum’s cryptocurrency, you’d need $3,121.93 to do so.

So, yeah, there’s a huge difference there.

These alternative blockchains are also rising in popularity. JPMorgan recently released a report in which it states that the Ethereum blockchain is losing a chunk of its market share to Solana, as the blockchain is less congested (aka faster) and cheaper to invest in than Ethereum.

If you’re interested in buying NFT projects that use the Solana network, you can check out marketplaces like Solsea and Solanart, to find them.

When it comes to projects that use Polygon, you can find them just by visiting OpenSea. To see all the NFTs you can place bids on or buy using this network, simply click on the “Chains” option on the left panel, and select “Polygon.”

Mint a project

When you mint a project, you’re basically investing in it before it actually goes live. So, you could think of it as the Kickstarter of an NFT project. Verduzco says:

“The initial mint is usually like 0.05 Ethereum, which is a relatively small amount. If you happen to make it in that initial mint, then you pay only 0.05 Ethereum, versus if the project goes up in value, and then it costs 0.7, or much higher.”

One good example of an NFT project that is currently in its minting phase, and that I happen to like a lot is the Lucky Goat. You can currently mint this project for 0.0777 Ethereum ($243.43). 

Source: luckygoat.org

What has me rooting for the Lucky Goat (besides the art, of course) is that they donate some of their profits to Heifer International, which is a nonprofit whose mission is to help eradicate hunger and poverty.

So, how do you find projects to mint?

  • Twitter. If you enter “#mint” or “#NFT” on Twitter’s search bar, you’ll find countless threads of founders and artists sharing their upcoming NFT projects.
  • Discord. In case you don’t know what Discord is, it is a group-chatting app, where users join servers (aka private groups) to chat about a specific topic. Many NFT founders use this app to talk about their upcoming NFT projects, to get both support and feedback from users.
  • rarity.tools. Although this website is mostly used by NFT traders to vet projects and find rankings based on their rarity or unique traits, it also has an Upcoming NFT Sales section, where you can check projects to mint. 
  • OpenSea’s homepage. They often share new mints, and you can easily browse through their huge NFT market.

But be careful…

Before minting a project, Verduzo says it’s super important to ensure its legitimacy, so you don’t get rugged (NFT lingo for “scammed”). Sadly, just like in any space, there are always bad players that are just there to do a quick cash grab and disappear.

To avoid this, make sure you research the project thoroughly by finding out all you can about its community, founders, and mission, as well as how long they’ve been around in this space. 

Why?

If the project disappears into the mist, your NFT most likely will lose all its value, unless someone else decides to take over the project.

Time your purchase

Unlike the stock market, which is open for transactions Monday through Friday, from 9:30 a.m. to 4:00 p.m. ET, the NFT market is a global market that is open 24/7.

“So, it’s not just you and everybody else in the United States that you’re transacting with, it’s everybody in the entire world who has access to the Internet,” Verduzco says.

And, the more people that are trying to conduct transactions on the Ethereum network, the more congested it will be, which automatically translates to higher gas fees. This will hopefully be improved once Ethereum 2.0 (also known as the consensus layer) is fully rolled out.

One way to spend less money when buying NFTs is to ensure you conduct your transactions during the time of the day when the network is less congested.

Verduzco says that 11:00 a.m. to 1:00 p.m. PST is probably the worst time of the day to buy NFTs because that’s when most people around the world are awake. He suggests timing your transactions to random hours when most people are sleeping, like 2:00 a.m. or 5:00 a.m. PST. Though not always practical, it can help save a good amount of money.

You can also track gas prices by visiting the ETH Gas Station.

Become an NFT expert

Since NFTs are still an emerging concept, Verduzco says that one way you can make money in this space, without being an investor, is by learning all you can about them.

“It doesn’t always have to be investing in an NFT collection, in order to get a return,” Verduzco says.

“Understanding everything about the NFT space and becoming very good on one specific skill set, whether it’s social media marketing, community management, creating Discords, branding, or content creation, is going to provide value because, all of a sudden, you open yourself up to many job opportunities.”

In other words, you’ll be able to profit from your NFT knowledge as this technology becomes more widespread, and companies start searching for people who know their way around this space.

Before investing in NFTs…

Make sure your finances are in order

Investing in NFTs represents a higher risk than investing in traditional stocks or bonds, as their value is determined by speculation, so it fluctuates more than with your average investment. 

Besides that, once you purchase an NFT, the transaction is final, and flipping them or reselling them could take a while. That’s why it’s so important you only invest money you have to spare, and not money you’re going to need short-term, as this could result in a financial disaster.

Learn as much as you can

“I would suggest investing your time and energy on learning before putting your money up,” Verduzco says.

“Find really cool projects that you like, and then join the Discords, listen to conversations, ask questions, watch a bunch of videos, read a bunch of blogs before you even think about putting Ethereum in your wallet to spend.”

Learning as much as you can about NFTs will give you a realistic idea of what to expect, plus determine whether you’re ready to take the plunge, or if you should wait a little longer before investing in this space.

If you’re curious about learning, you can check out podcasts, like a16z, which has extensive information on this topic, as well as reading books, like The NFT Handbook: How to Create, Sell and Buy Non-Fungible Token, to get started.

Additionally, Verduzco’s Twitter account is like a gold mine of NFT info, as he frequently shares projects, articles, and tips to help people learn more about this space.

Summary

You don’t have to be a millionaire to invest in NFTs, however, there’s a learning curve to be successful in this space.

The most important thing is to learn as much as you can about it, vet projects carefully, understand the risks associated with investing in such a volatile space, and make sure you don’t use money you’re gonna need. This will allow you to make the most out of your experience.

Featured image: mundissima/Shutterstock.com

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Source: moneyunder30.com

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If you have been trading for a while, then there is a good chance that you have made some trading mistakes along the way.

Unfortunately, it is part of learning how to trade.

After all, trading is a skill that takes time to learn.

Trading mistakes are part of the learning process. I know that sucks to hear, but it is the truth.

The outcome goal is to learn from those trading mistakes.

Then, you can realize what you did wrong so you do not repeat those same mistakes.

However, more than not, it is more common to repeat the same mistake over and over again.

If you are ready to recognize trading errors and learn how to overcome them, then keep digging in. Take notes and adjust your trading plan accordingly.

We will cover emotional trading mistakes, technical trading errors, and option trading mistakes.

Learn how to avoid common trading mistakes. These common mistakes in stock trading can have you lose more than planned. Learn how to improve trades and achieve a higher profitability.

What Are Trading Mistakes?

Trading mistakes are errors made by traders when you enter trades, either to purchase stocks or options.

More than likely, you will see the same type of trading error happening over and over again.

Trading mistakes are very common, but they do not have to lead to complete panic.

In order to minimize the chances of making a costly mistake, traders should adhere to their trading strategy. Additionally, traders should always trade with a clear head and stay disciplined.

There are plenty of trading mistakes you can avoid by being smart and adjusting your trading plan where needed.

Why Understanding Trading Mistakes Is Important for Long-term Success

Trading mistakes are the result of traders taking losing trades, which can result in poor overall performance.

Mistakes that occur during trading often include not paying attention to the market, not understanding risk, not having a well-thought out trading strategy, and being bad at managing the trade.

Whatever the reason, trading errors occur and it is how we react to them that matters.

Long-term success in trading is not a goal that can be accomplished overnight.

Achieving long-term success with active trading requires patience, discipline, and practice.

It is easy to get caught up in day-to-day successes and forget to commit to a long-term plan. As traders, it is important to be able to recognize our mistakes so that we can learn from them and move forward.

Top 5 Trading Mistakes

A picture of crumbled paper to show the top trading mistakes.

As you will see, we compiled a long list of trading mistakes. Each trader will see some of those trading errors in themselves. Some are small trading mistakes while others are detrimental.

First, we are going to focus on the top five trading mistakes first. This will make or break your success as a trader.

The following are five common trading mistakes that traders make and how to avoid them.

#1 – No Trading Plan

Trading without a plan means you enter a trade without knowing your next step.

No trading plan means that traders are not able to set clear goals, establish risk-reward ratios, and avoid common pitfalls that can occur during a trade. This makes it difficult for traders to know when they should be buying, selling, or holding.

Trading without a plan is risky because it can lead to losses that are much higher than they need to be.

When starting out in trading, it is important to remember that we can only focus on what we can control. This means that we should not worry about things we cannot change, such as the past or the behavior of other traders. Instead, we should form a trading plan and stick to it so that we can succeed in the long run.

Creating your trading plan will happen with many revisions. The goal of the trading plan is to set your overall strategy for trading.

Also, you need to have a specific trading strategy for each trade you enter.

Avoid by: Spending time to develop a trading plan. Revise as needed. Stick to it.

#2 – Risk Management Plan is Missing

A picture showing how important a risk management plan is.

A risk management plan is essential for traders and it should be included in any trading plan.

Without a risk management plan, traders are more likely to make emotional decisions that can lead to costly mistakes. For many traders, this is the hardest thing for them to manage.

It is possible to create a risk management plan as your overall trading plan.

In your risk management plan, you must decide (in advance) how much money you are willing to lose based on the amount of profit you perceive to make. For instance, you are willing to risk $300 in order to make $1000.

Many day traders focus on a 2:1 reward-to-risk ratio. Personally, I look for stronger reward-to-risk ratios greater than 3:1.

Avoid by: Understand how risk is a part of making a profit. Set your risk tolerance and do not deviate from it.

#3 – Not Keeping a Trading Journal

One of the most important aspects of successful trading is keeping a journal.

This not only helps you keep track of your trades and performance, but it can also help you remember what worked and what did not. Journaling is so helpful and such an overlooked task.

Your trading journal is the perfect place to take notes, keep track of your wins and losses, and record market movements so that you can learn from past mistakes.

At the end of every trading session, you should take some time to analyze your trades.

  • What went well?
  • What didn’t go well?
  • Why did you make that particular trade?
  • What was your entry strategy?
  • What was your exit strategy?
  • Where was the overall market momentum?
  • Did you control your emotions?
  • What grade would you give yourself?

This analysis is important so that you can learn from your mistakes and improve your trading skills. Stay motivated to continue learning about trading and keep more profit.

Avoid by: Start journaling. Spend time after exiting a trade and the market day to understand what happen and why you did a certain trade.

#4 – Watching Too Many Stocks

Picture of a busy stock chart.

Watching too many stocks can lead to a decrease in returns and overall confusion on what is happening with your watchlist.

As a result, it is important to be selective.

The same can be said of stock scanners. If you are watching too many variables and possibilities, you can quickly become overwhelmed.

When you develop your trading plan, you need to decide how you find stocks.

Personally, I prefer to focus on a handful of stocks and a few key metrics. Then, watch them closely and trade accordingly.

As a new trader, I would pick about 5-10 stocks to analyze.

Avoid by: Revise your watchlist to half what you are currently watching.

#5 – Actually Exiting Trade as Planned

Above we talked about creating a trading plan and having a trading strategy for each trade taken.

But, the trading mistake happens when you do not exit the trade as planned.

This could be because of “hopemium” that the stock price will recover and you will get back your loss.

Our “hopemium” is that the stock price keeps rising and you will make more money.

Either one can be damaging to your trading account.

You created a plan. As a disciplined trader, you must follow your plan either to maximize your current profit or protect your risk against further losses.

Avoid by: Exiting at your set targets. Period.

12 Typical Emotional Trading Errors

Trading is 80% mental and 20% execution. Okay, I am not sure that there is an official study to back it up. But, I do know as a trader that emotions play heavily into your overall profit.

The typical emotional trading errors that traders make when they are in a trade are overconfidence, jumping into trades before the proper analysis is completed, and inability to take losses.

This is where most of the trading mistakes are made.

When first starting out in trading, it is easy to get caught up in the prospect of making a lot of money quickly. However, most traders find that trading is not easy to do and make common emotional trading errors.

Let’s dig into these emotional mistakes first and then we will follow up on the technical trading mistakes.

1. Letting emotions impair decision making

Emotions are an important part of decision-making, but it can be dangerous to allow them to influence our decisions. We should also take into account that emotions can often lead us astray.

It is clear that emotional trading can lead to bad decision making and, ultimately, financial losses.

When investors let their emotions take over, they are not thinking logically and may make impulsive decisions. For example, they may sell stocks when the market is down in order to avoid further losses, even though the stock may rebound soon after.

In order to be successful traders, it is important to stay calm and rational when making decisions.

Overcome by: Stick to your trading plan and take emotion out of the equation.

2. Unrealistic Profit Expectations

You go into every single trade expecting a home run! Enough money to achieve your dreams overnight!

These types of profit expectations will have you throwing your risk management plan out of the window and set you up for failure with greed, overconfidence, and impatience.

Be realistic about your expectations with trading activity.

Overcome by: Go for base hits. Small consistent wins.

3. Greed

Picture of someone grabbing a wad of cash in greed.

Greed is a deep-seated need for more profit without regard to the chart or market conditions.

The common rationale is hopefully the stock will go up. Typically, you hold your position too long and end up losing some of your gains.

Greed can manifest in many different ways, and people with greed often neglect their own needs in order to attain more.

Overcome by: Set an OCO bracket to exit the trade at your specified level. Take you out of the equation.

4. Fear of Missing Out (FOMO)

You fear that you missed out on a trade, so you decide to jump in. As a result, you are risking more than you should.

This trading mistake is common, especially with online trading communities.

As a result, you may buy at the high and watch the stock reverse.

Overcome by: Realize that there will be missed opportunities. That is part of the game. There will always be another chance.

5. Fear

In many cases, fear is a reaction to why or why not we enter a trade.

For any trader, they may become frozen unable able to make a decision as their mind is wrapped in fear. At the same time, they are either missing out on potential profits or unable to exit a trade due to mounting losses.

Overcome by: This is a real emotion that you must overcome. Take the time and read resources to help you overcome being paralyzed by fear.

6. Overconfidence after a profitable trade

Picture of a guy throwing money after a profitable trade.

The overconfidence that comes with success can lead to a loss of profits.

When a trader has a winning position, they may become overconfident and make bad decisions because of the previously profitable trade.

For example, they may not take their profits off the table when there is an opportunity to do so or increase their position size when they should be taking profits. This could lead to them losing all of their winnings and more.

Overcome by: Take a break from trading for a few days or a week after a big win.

7. Entering a Trade Based on Your Gut

The process of entering a trade based on your gut is, essentially, following your “gut feeling” and buying or selling shares after the market opens. This is seen as a more risky and less profitable strategy than following a more traditional market timing approach.

Trading is all about making calculated decisions and sticking to a plan.

Trading based on your gut feeling or emotions will only lead to costly mistakes.

Overcome by: Before entering into any trade, make sure you have a solid strategy in place and know all the rules. Only then should you start trading.

8. Not reviewing trades

Picture of a notebook to journal trades.

Not reviewing trades is a common problem for many traders. Traders who don’t review their trades tend to be more likely to make mistakes in their trading and over-trade, which can result in losses.

You will make the same mistake over and over again until you realize the root of the problem.

This is how you move from a losing average to a winning percentage.

Overcome by: Let your journal be your friend. Document everything including your emotions.

9. Following the Herd

Many people enjoy following the herd with stock trading, especially online platforms on Reddit, Discord, or Twitter.

You may decide to follow a certain group of people in order to be fed stock picks or updates.

This can be risky because there is no sound foundation to base your trade upon.

Overcome by: Trade your style and let that fit you.

10. The Danger of Over-Confidence

The “beginner’s luck” experienced by some novice traders may lead them to believe that trading is the proverbial road to quick riches.

Over-confidence is the belief that one’s abilities, knowledge, or qualities are better than average.

This over-confidence is a risk factor for certain types of mistakes and other negative outcomes as it leads to complacency, a lack of preparation, and an overestimation of one’s abilities.

Overcome by: Realize your limitations and watch for overconfidence to appear.

11. The Importance of Accepting Losses

Losses are always a part of trading life, but they can be overwhelming when they occur.

It is important to recognize that losses are in fact an inevitable part of growth and development as a trader.

Overcome by: Journal all of your losses. Look for patterns to appear. Adjust your trading strategy as appropriate.

12. Quit Your Job Too Fast

Quitting your job too fast is not a good idea, as it will force you to place trades that may not be the best set-ups.

Day trading can be a very risky venture, and it is possible to lose everything you have invested.

It is important to be aware of the risks before getting started. More importantly, do not quit your job too fast. This can lead to losses in your investments and could potentially put you in a worse financial situation than you were before.

Overcome by: Keep trading as a side hustle. Hone your trading skills and build up a reserve fund that will cover your monthly expenses. You will know when you are prepared to leave your 9-5.

Common Mistakes in Stock Trading

Picture of a guy realizing his common mistakes in stock trading.

According to a study by the U.S. Securities and Exchange Commission, technical trading mistakes are actually fairly common among individual investors.

Mistakes in technical trading can be two-fold, either due to lack of knowledge or poor execution.

The most common mistakes are buying at the top and selling at the bottom, overtrading, and not taking the time to properly understand how trading works.

Now, let’s dig into all of the common trading mistakes I see.

1. Overtrading

Let’s start by talking about overtrading. This is a mistake that I see many people make. It is also a mistake that could have been easily prevented if you had just done your research before placing the trade.

Overtrading or placing more orders than you should do is the most common mistake.

Many new traders will simply open up their platform, look at the market, and place a trade. They are often chasing after the last couple of candles or they see an opportunity to get in “on the cheap”.

The problem with this approach is that you have no idea if this is a good trade or not. You are simply taking a shot in the dark and hoping for the best.

Overcome by: Only place the A+ setups that you like. Once you have traded so many times per day or week, stop trading.

2. Buying High and Selling Low

We all have heard the saying, “buy high and sell low.” However, too many novice traders do the complete opposite.

This trend happens with one of the emotional mistakes of FOMO; we already dived into that concept earlier.

Overcome by: Follow your trading plan on when to enter and exit the trade. Practice your strategy in a simulated account and master it.

3. Lack of Trading Knowledge

The lack of trading knowledge is a problem for many traders who are not familiar with how the stock market works. This can cause them to make mistakes when buying and selling stocks, which could result in losing a lot of money.

Just because you made a profit once on one stock does not mean that is a repeatable action.

In order to be successful in trading, it is important to have a good understanding of the markets and the strategies involved.

Without proper training, you are likely to make costly mistakes that can cost you money. Trading courses and tutorials are available online and through other resources to help you gain this knowledge and become a successful trader.

Overcome by: Take an investing course. Spend money on your education and not your losses. Here is a review of my favorite day trading course.

4. Following Too Many Strategies

Following too many strategies is a common problem in the investing world, which can lead to poor performance and more costly mistakes.

There are a million and one different approaches on how to trade the stock market, which indicators to use, whose advice you should follow, so on and so forth.

And then, many traders try and couple the strategies together only to quickly learn they may cause more losses than profits.

One way to avoid following too many strategies is by using a set of rules to decide which strategies are appropriate for investing.

Overcome by: Develop your trading plan. Outline the investing strategies you will use. Test any new strategies in SIM first.

5. Do Your Research

The solution to this problem is simple: do your research!

Before you enter a trade, take the time to do some analysis on the asset you are looking at. Look at past price action, news events, and any other relevant information that you can find.

Understand why the market might move in your favor and be able to build a case for it. The more data points you have supporting your position, the better off you will be.

If you are able to build a strong case for why the asset will move in your favor, then you can enter with confidence. This is because if the market does not move in your favor, you will know that it isn’t because of a lack of research on your part.

When you enter with confidence, this will make it easier to hold through the inevitable volatility and price swings.

Overcome by: If you enter without knowing why something is likely to move in your favor, then you are setting yourself up for failure. Do your research.

6. Not Using Stop-Loss Orders

Stop orders come in several varieties and can limit losses due to adverse movement in a stock or the market as a whole.

Tight stop losses generally mean that losses are capped before they become sizeable. However, you may have your stop loss too tight and get stopped out before your stock has room to move.

A corollary to this common trading mistake is when a trader cancels a stop order on a losing trade just before it can be triggered because they believe that the price trend will reverse.

Overcome by: Plan your stop loss in advance. Stick to it as it is part of an overall risk management strategy.

7. Letting Losses Grow

Active traders can be harmed by refusing to take quick action to close a losing trade.

It is important to take small losses quickly and limit your risk in order to stay profitable.

Stop losses can help you avoid larger losses.

While the stock may come back to your buy price, you have increased your risk far beyond what you planned. If your planned loss was $300 and now you are down over $500, it will take that much longer to overcome that growing loss.

Cut your losses. Review the chart. See what a better entry point may be.

Overcome by: If the stock moves past your pre-determined stop, then exit the trade. Don’t trade on hope.

8. Chasing After Performance

Many day traders are tempted to chase stocks, which is a bad reputation in the day trading world.

This happens when they see a stock that has had a large price increase and they think that it will continue to go up. In reality, this is not usually the case, and chasing stocks can lead to big losses.

What goes up must come down, right?

Overcome by: Wait for a better time to enter the trade according to your trading plan.

9. Avoiding Your Homework

It is important to do your homework. If you avoid doing your homework, then don’t expect fast results

Many new traders often do not do their homework before making any investment decisions.

This can lead to costly mistakes that can be avoided by doing some basic research. Trading is a complex process and should not be taken lightly – make sure you are fully prepared before risking your hard-earned money.

Overcome by: If you have not enrolled in an investing course, do that. Set daily goals on how to improve your trading performance that is not based on profit or loss.

10. Trading Difficult and Unclear Patterns

It is important to stick with the patterns and indicators that are clear and unmistakable so you don’t get caught up in any ambiguous or unclear trading signals.

With a little bit of research and understanding, these market patterns can become quite clear.

By forcing a chart to fit in what you want, then you are putting your trading capital at risk.

Overcome by: If you cannot read a clear chart or pattern, then quickly move to the next stock.

11. Poor Reward to Risk ratios

The most common mistake made by traders is poor risk management. This usually means taking on too much risk in relation to the potential rewards, which can lead to heavy losses if the trade goes wrong.

It is important to always have a solid plan for how much you are willing to lose on any given trade and never deviate from it.

What is the Reward to Risk ratio you look for:

  • 1:1 Reward to Risk
  • 2:1 Reward to Risk
  • 3:1 Reward to Risk

Many beginner traders do not want to take on as much risk because their appetite for potential rewards may be lower. It is important for beginners to consider their trading strategies and risk management plans so that they can make the most informed decisions possible.

Risk-to-reward ratios are an important part of trading, and experienced traders are typically more open to risk in order to maximize their potential rewards. This means that they may be more likely to make high-risk, high-reward trades.

Overcome by: Stick to Risk to reward ratios that fit your trading plan.

12. Ignoring volatility

Volatility is the fear and unknown in the market.

The most important thing to remember about investing is that the stock market can be volatile.

A measure of volatility is from the VIX.

Overcome by: Decide how you will trade when the VIX is high and the news is negative.

13. Too Many Open Positions

Entering too many positions is one of the most common mistakes investors make. A portfolio should consist of a handful of top-performing investments that have proven to be good bets over time.

It is unwise to open too many positions in a short amount of time because it could lead to confusion.

This can be risky because if one or two of the positions go south, the entire portfolio can suffer. For this reason, it is important to carefully consider each position before opening it and make sure that all positions are contributing positively to the overall goal.

Overcome by: As an active trader, stick to under 5 open positions. As a long-term investor, look to build a portfolio of 25 stocks over time.

14. Buying With Too Much Margin

Most brokers offer 2:1 or 4:1 margin to cash. While this is tempting to use, it can also give you a margin call.

Margin can help you make more money by increasing your position size, but it can also exaggerate your losses.

Exaggerated gains and losses that accompany small movements in price can spell disaster for a new trader using margin excessively.

Overcome by: Use your cash only. Stay away from using margin.

15. Following Meme Stocks

These are the stocks made popular by many Reddit personal finance groups.

You have probably heard of Gamestop, Blackberry, AMC, or Bed Bath and Beyond as a meme stock.

While these stocks have risen to crazy highs, they have also fallen just as fast. Chasing the high may leave you with a big and painful loss.

Overcome by: Stick to your stock watchlist.

16. Buying Stocks With No Volume

Buying stocks with no volume is a risky idea that involves placing an order on a stock without knowing how much interest there will be in the shares. This can result in losing money if there are no buyers for the shares.

It is important to validate the price of a stock by looking at volume. The volume shows how much interest there is in a stock and can be indicative of future price movement.

When volume is low, it’s best to stay away from buying stocks as it could be a sign that the stock price is not stable.

Overcome by: Trade stocks with a volume of at least 500,000 or higher.

17. Ignoring Indicators

Indicators are things that tell us the market is going up or down. Examples of indicators would be the stock market at a particular point in time, a company’s performance with regards to earnings, the price of a product or service.

Every trader has their own set of indicators they use.

If you have outlined indicators you use in your trading, make sure to follow them regardless if it is against the way you want the stock to move.

Overcome by: Stick to your trading plan for each stock individually.

18. Trading Too Large Position Sizes

Trading too large position sizes is a risk that traders may run into when they hold positions in their portfolios for extended periods of time.

Position size is the amount of money placed on a trade, and the risk is that a trader may lose more than their capital on the trade if it does not go well.

Overcome by: Base your position size on the amount you are willing to lose. Not how much you want to make.

19. Inexperienced Day Trading

In order to be successful in trading, it is important to have a good understanding of the markets and the strategies you are using. Without proper training, it is easy to make costly mistakes.

Too many day traders turn trading into an unnecessary risky game.

To be successful, a day trader must have a solid foundation in how to invest in stocks for beginners.

Overcome by: Practice in a simulated account and make all of your mistakes there before moving to live money.

20. Inconsistent trading size

Inconsistent trading size is when traders are unable to predict what their position size should be in order to meet the trader’s desired profit goal.

Trading size is one of the most crucial aspects of a trading strategy and should be considered carefully. Larger trade sizes come with an increased risk, so it’s important to be aware of your position size when making trades.

Overcome by: Don’t risk too much on one trade. Stick to your risk management plan.

21. Trading on numerous markets

Trading on numerous markets is when a trader invests in stocks, bonds, commodities, crypto, and other securities.

Every type of market moves differently and takes time to understand how to be profitable.

Overcome by: Find your niche and stick to it.

22. Over-leveraging

Leverage is a powerful tool that can be used to magnify gains and losses in a trade. It is important to be aware of the amount of leverage being used in order to effectively manage risk.

Brokers play an important role in protecting their customers by providing margin calls and other risk management tools.

Overcome by: If you feel over-leveraged, sell some positions before your broker gets involved.

23. Overexposing a position

Overexposure is a term used in the investment world to describe the risk that comes with exposing your position too much in the market. When you have overexposed your position, you are putting yourself at risk of losing money if the stock or security you are invested in falls in value.

You are taking on too much risk.

Overcome by: Stick to your risk management plan. Always have cash reverse on hand in case the market reverses.

24. Lack of time horizon

There are different time horizons for various types of trading strategies. It is important to think about the time horizon you are comfortable with before investing in any type of investment.

If you are a day trader, you plan to close your trades before the end of the trading session. As a swing trader, you typically hold trades for a couple of days maybe up to a month. As a long-term investor, you plan to hold your stocks for longer than a year.

Overcome by: Match the time horizon of that investment purchase with your investing goals.

25. Over-reliance on software

Although some trading software can be highly beneficial to traders, it is important not to over-rely on it.

Automated trading systems are becoming so advanced that they could revolutionize the markets. As a result, human traders need to be aware of the potential for these systems to make mistakes and use them in conjunction with their own judgment.

Overcome by: Set alerts before you want to enter or exit a trade. Then, review if the move still follows your trading strategy.

Top Options Trading Mistakes Beginner Traders Make

Picture of a phone and stock chart for

These options trading mistakes are specific to option trading.

Trading options is an advanced strategy. If you have losses trading stocks, wait before you start trading options.

1. Not having a Trading Plan

Every trader needs a trading plan that outlines strategies, game plans, and trade metrics.

When you are trading without a plan, you are essentially gambling and hoping for the best.

This is not a recipe for success in the world of stock trading and is especially true for options traders.

A good trading plan should include chart analysis so that you can make informed decisions about when to buy and sell stocks. If you are using HOPE instead of a trading plan, then you need to find out the right way to interpret the chart because that will give you a better idea of what is happening in the market and how likely it is that your investment will succeed.

Overcome by: Create a specific trading plan based on your option strategy.

2. Not properly Researching Option Contracts

Learning to trade options is like going to school for a whole different trade.

There are way too many technical aspects to discuss in this mistake.

Spend time learning what criteria you want from an options contract to be successful.

Overcome by: Learn how options work and practice trading options in the simulator before going live.

3. Trading without an understanding of the underlying asset

Before you start trading options, trade with stocks.

Every stock moves at its own beat. You need to learn how it moves.

Jumping into options prior to knowing the stock can cause extreme losses. Learn how the underlying asset moves first. Be successful in trading stocks before moving to options.

Overcome by: Learn to trade the stock with shares first. Then, practice in a simulator. Once familiar, then trade live with options.

4. Buying Out-of-the-Money (OTM) Call Options

Options trading is a risk-based strategy. It’s important to know which strategies are right for you and what the risks of each option type are before putting on an option trade.

One common mistake that many traders make when it comes to option trades is buying out-of-the-money (OTM) call options.

This is because OTM call options are inexpensive and have a range of around 100,000 to 1 million. To avoid this mistake, it’s important to know what the risks of buying OTM call options are and which option strategies are appropriate for you.

Overcome by: Focus on trading In-the-money (ITM) call contracts. Know your strategy.

5. Not Knowing What to Do When Assigned

When you enter into an options contract, you are essentially agreeing to buy or sell the underlying asset at a specific price on or before a certain date.

If the market moves in a way that benefits the buyer of the option (the person who contracts to buy the asset), they can choose to exercise their option and purchase the asset at the agreed-upon price. However, if the market moves in a way that benefits the seller of the option (the person who contracts to sell), then they may “assign” their contract to someone else – meaning that they no longer want to buy/sell the asset, but would like someone else to take on that responsibility.

This can be jarring if you haven’t factored it into your decision-making when trading options, so it is important to be aware of the possibility.

This is why traders need a higher trading level to sell options contracts or verticals.

Overcome by: Be okay with buying the shares if you are assigned. That is a part of your trading plan.

6. Legging Into Spreads

It is a common mistake for traders to get legged into spreads by entering positions when the market price has moved away from their position. They may have gotten caught up in the belief that they are being a “smart” trader by trying to profit from the spread.

The problem is that they are not taking into account that their cost basis must go up in order to maintain the position. If the market price of the underlying goes up, their cost basis must go up as well.

Overcome by: If you are not comfortable with this advanced strategy, then exit your options contract and place a new one.

7. Trading Illiquid Options

Trading illiquid options is a mistake because traders are taking on too much risk, with potentially disastrous consequences.

Illiquid means that the option cannot be bought or sold at the given time.

In other words, the option is not tradable. When traders trade illiquid options, they are taking a risk that their trades will not be executed because there is no liquidity in the market at that time. They have to hope that the market will become liquid again, and they can then sell their position or buy back their option at a lower price.

Overcome by: Check option volume and open interest at your strike place. Verify you have interest in moving your contract.

8. No Exit Plan

It is important to have a plan in case your trading strategy doesn’t pan out as planned.

This will give you the peace of mind that you won’t be left high and dry without an exit strategy.

With options is it more difficult to limit your risk to reward. As a result, you must decide your exit plan in advance.

Overcome by: Develop your trading strategy and include how and when you will exit the option contract.

Ready to Avoid these Trading Mistakes?

Investors are often their own worst enemy when it comes to trading.

They make emotional decisions instead of logical ones, and this leads to them making costly mistakes. Plus there are many technical errors new and seasoned traders are still making.

In order to be successful in the markets, investors must first learn to accept their losses and move on. Only then can they put that mistake behind them and focus on making profitable trades in the future.

In this post, I shared some of the more common trading mistakes that people make and how to avoid them.

Now, you have to work to avoid these trading mistakes and be profitable.

Learn how to avoid common trading mistakes. These common mistakes in stock trading can have you lose more than planned. Learn how to improve trades and achieve a higher profitability.

Know someone else that needs this, too? Then, please share!!

Source: moneybliss.org

Apache is functioning normally

For past generations, “growing up” meant getting married, buying a home and starting a family.

That’s not necessarily the typical path anymore.

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Nuclear families (those defined as a husband, wife and an average of 2.3 children) used to be the majority. These days, in many cities, living solo is common and may well be the new normal.

Read on to learn more about what it means to be in charge of your own apartment household of one!

Quickly-changing times
In 1950, the majority of Americans who lived alone were male migrant workers, taking jobs in sparsely-populated rural areas like Alaska or the mid-West. For these workers, living alone represented a temporary situation — one that eventually made way for a typical married life.

Fast forward to 2011. The Census from that year showed that more than 30 million people live alone, compared to the 10 million living alone in 1950. Those 30 million people represent a whopping 28 percent of all United States households. These numbers show that traditional attitudes towards family life and its milestones are changing.

Should You Live Alone or with a Roommate?

The family of one
According to Eric Klinenberg, a professor of sociology at New York University who has written a book on the solo living trend, the appeal of living alone will continue to grow in our tech-obsessed society. Klinenberg suggests that because our smartphones and computers connect us to one another on a 24/7 basis, many people crave alone time. Solitude provides the much-needed respite that many use to recharge their internal batteries.

Census data on marriages also suggests a reason for so many “family of one” households. According to a 2010 Pew Research study, Millennials (the name for the current generation of 18 to 29 year olds) just aren’t in a hurry to get married. Only 21 percent of them are married, in fact. By comparison, 42 percent of Baby Boomers were married by that age, and 29 percent of Gen Xers. It seems, for younger Americans, that living alone is the new definition of “grown up” — an important milestone to cross before moving on to the challenges of adult life, including – perhaps — marriage.

Single Serving: Tips on Cooking Smart for One

Solo in the city
The majority of people who choose to live by themselves find urban centers. In fact, New York City and Washington, D.C., are half-populated by single households. In cities, where resources are accessible and transportation is more communal, the stage is set for individuals to carry out their lives without the same need for at-home support that used to be almost a necessity. It’s arguable, also, that the rise of the Internet has connected people in a way that mediates the need to share a home. For some, the city becomes their home.

“Living alone” and “being alone” are definitely not the same thing. Klinenberg actually found that those who live alone are more likely to be actively social than their married counterparts. He notes that living alone tends to make people seek out more social interaction, shattering the stereotype of the “lonely single guy/girl” and reinforcing that living alone can actually be liberating.

Your Roommate is Leaving You… Now What?

Photo credit: Shutterstock / Kichigan

Apache is functioning normally

Depending on which rate tracker you look at, mortgage rates decreased, moved sideways or increased on a week-over-week basis.

Since June 1, the yield on the benchmark 10-year Treasury moved up 18 basis points to close at 3.78% on Wednesday.

But the spreads remain abnormally wide, and that likely contributed to the divergent movements among different trackers that use different methodology. The normal spread between the 10-year Treasury and the 30-year fixed-rate mortgage is between 150 and 200 basis points; no matter which tracker is used, they currently are in the 300 basis point range.

Freddie Mac’s Primary Mortgage Market Survey, which takes in rates on submissions to its Loan Product Advisor automated-underwriting system, reported an 8 basis point decline in the 30-year fixed-rate mortgage to 6.71% for June 8 from 6.79% one week prior. For the same week in 2022, the 30-year FRM averaged 5.23%.

NMN060823-Freddie Mac rates.png

The 15-year FRM fell to 6.07% from 6.18% week-to-week but rose from 4.38% on a year-over-year basis.

“Mortgage rates decreased after a three-week climb,” said Sam Khater, Freddie Mac’s chief economist, in a press release. “While elevated rates and other affordability challenges remain, inventory continues to be the biggest obstacle for prospective home buyers.”

Optimal Blue, a division of Black Knight, reported the 30-year conforming mortgage at 6.746% as of June 7, based on data submitted to its product and pricing engine. That compared with 6.719% on May 31; on June 1 it fell to 6.649% before tracking higher over the following days.

Zillow’s rate tracker, based on offers, was at 6.61% on Thursday morning, unchanged from the morning of June 1, and down one basis point from the previous week’s average.

“After some mild oscillations, mortgage rates are right where they were this time last week as investors await more conclusive signs of progress on inflation and monetary policy,” said Orphe Divounguy, senior macroeconomist at Zillow Home Loans, in a statement issued Wednesday night. “Last week’s stronger-than-expected employment report caused Treasury yields — and mortgage rates that follow them — to increase.”

But the services sector slowed down in May, according to the Institute for Supply Management purchasing managers’ index report. The price component had its weakest reading in two years, which is likely to be seen in the next Consumer Price Index reading.

“Cooling inflation and a general economic slowdown would put downward pressure on long-term interest rates like the 10-year Treasury yield,” Divounguy said.

On Wednesday, the Mortgage Bankers Association reported a 10 basis point decline in the 30-year FRM to 6.81%.

“The housing market has gotten off to a slow start this summer due to higher mortgage rates, low inventory and economic uncertainty,” a Thursday morning statement from MBA President and CEO Bob Broeksmit said. “The labor market continues to be exceptionally strong, which could bring more buyers back into the market once rates move away from their recent highs.”

Divounguy forecasts that mortgage rate movement should remain muted over the next seven days, “but upward bias remains as investors await next week’s CPI inflation report and Federal Open Market Committee forward guidance.”

Source: nationalmortgagenews.com

Apache is functioning normally

Economic data is one of the most basic and reliable inputs for the bond market.  The bond market, in turn, dictates day to day interest rate movement.  In general, weaker economic data pushes rates lower and that was today in a nutshell.

Weekly Jobless Claims came in at the highest levels since 2021 and the bond market reacted immediately.  It wasn’t a huge move in the bigger picture, but enough to counteract the jump to higher rates seen on Wednesday.

Bigger volatility remains a bigger risk surrounding next week’s Consumer Price Index data on Tuesday and the Fed Announcement on Wednesday.

Source: mortgagenewsdaily.com

Apache is functioning normally

It’s important for today’s lenders to be as agile, efficient and scalable as possible to adapt to consumer preferences and fast-changing market conditions. Encompass by ICE Mortgage Technology is the industry’s most complete end-to-end solution that provides the flexibility and configurability needed to deliver a next-generation lending experience for every channel, all from a single system of record.

As the only truly digital lending platform that delivers an all-in-one workflow for omnichannel lenders, Encompass provides the unified solutions lenders need to generate more leads, close more loans and drive unparalleled ROI. By managing every loan, including home equity, refinance and new purchase, in one place, lenders are able to make better decisions, keep costs down and quickly adapt to changing market trends.

As the market shifts and consumer buying habits change, there remains healthy demand for home equity lending products. With Encompass, lenders can feel confident in knowing their LOS platform has the flexibility to support home equity lending at scale. Customers can drive applications with an array of leading point-of-sales solutions, as well as retain and build referral business through seamless integrations with sales and marketing solutions, such as Velocify. Encompass also delivers on being the most compliant LOS providing required disclosures and HMDA reporting to support home equity lending.

“The Encompass platform provides lenders the best-of-breed solutions they need to win business, lower costs and close significantly more loans with less effort. With the power of automated workflows paired with the industry’s largest partner network, Encompass enables lenders to drive efficiencies and reach unparalelled ROI,” said Nancy Alley, VP, Product Strategy at ICE Mortgage Technology.

Encompass is ready-built with powerful technology to automate any task, process or service within a matter of clicks. By automating previously manual and time-consuming tasks, lenders and investors can acquire, originate, close and sell significantly more loans in less time, all while delivering a best-in-class borrower experience. Encompass also offers a task-based workflow that enables operations managers to easily create, assign, manage and track loan tasks all within their unified, single system of record.

With Encompass eClose, Encompass customers also benefit from having a single workflow for their closing process. For wet-signed loans, to a full eClosing, and everything in between,  lenders can have one partner, one workflow, one source and one network for it all.  

Unlike other solutions, Encompass also allows mortgage lenders and investors access to the largest network of partners in the industry. The Marketplace by ICE Mortgage Technology includes thousands of leading mortgage companies that span the full gamut of technology solution categories, from mortgage servicing and title, to escrow, automated underwriting services, and many more. Through pre-built, bi-directional API integrations, customers can utilize these trusted, proven solutions to enhance and digitize their lending workflows.

With a long history as an industry leader, ICE provides a wealth of experience, compliance expertise and data-driven insights unmatched in the industry. Through best-of-breed automation and data, Encompass is helping customers reduce costs, increase revenue and deliver better customer experiences at every step of the loan lifecycle.

Source: housingwire.com