Throughout the week, I receive several, great questions from readers. These questions have either been emailed directly to me or left in comments. Most are answered immediately, but if I feel that others can benefit from the answers, I will share them on Friday.
I also help dozens of first-time investors and others who have been trading for years – each with their own sets of questions.
If you’re reading this and thinking to yourself, “I have several, financial questions that I’ve wanted to ask somebody”, please contact me and ask away. I love educating readers and contributing to financial literacy.
Candlestick Red/Green Chart
I’ve been using candlestick charts and I’ve seen red and green candlesticks. Recently, I noticed that some of the candlesticks are filled while others are empty. What does this mean?
That’s a good question. Most people do not notice that some candlesticks are filled and while others are empty.
The graph above is display in daily increments, so each candlestick represents one day. A solid bar means that the stock/ETF closed lower than where it opened for that specific time period. That explains why most red bars are solid and most green bars are empty.
Many analysts interpret the solid green and empty red bars as reversal indicators.
A company I own filed for chapter 11 bankruptcy. Can I still sell this stock?
Most likely, yes. Many companies trade for months after filing for bankruptcy. The symbol will change and a ‘Q’ will be added at the end (i.e., ABC = ABCQ).
Be very careful when trading bankrupt stocks though. If the company reorganizes and emerges from bankruptcy, chances are, the old shares will become worthless when new share are issues.
IRA Contribution Deadlines
If I emailed a contribution letter on April 15th, was I in time for my 2012 carryback contribution?
Good news – you can still claim your contribution for 2012. As long as the form was postmarked or received by the financial institution on time, it does not matter if it’s actually completed by the 15th. Make sure you keep a copy of the electronic communication or the letter that you sent.
How much can I contribute to my IRA for 2013?
The IRS finally raised the amount people can contribute by $500; so for 2013, you are able to contribute $5500 if you’re under 50 and $6500 if you are over. This of course depends on your MAGI (modified adjusted gross income). People that make over a certain amount may not be able to contribute as much and in some cases, not at all.