Finelo Blog

Learn investing and trading, one article at a time. Practical guides, beginner-friendly explainers, and learning tips from the Finelo team.

Chart Analysis

The Shooting Star Candlestick Pattern: What It Is and How to Trade It

A shooting star candlestick pattern is a potential bearish reversal signal that appears after an upward price move. It has a small real body near the candle’s low, a long upper shadow, and little or no lower shadow…

Finelo Team
Investing

Qualified vs Ordinary Dividends: What You Need to Know

The difference between qualified and ordinary dividends is their federal tax treatment. Ordinary dividends are included in ordinary income, while qualified dividends meet requirements that allow them to be taxed at…

Finelo Team
Investing

Ponzi Schemes vs. Pyramid Schemes: Understanding the Differences

A Ponzi scheme presents itself as an investment and uses money from newer investors to pay supposed returns to earlier investors. A pyramid scheme is built around recruitment: participants bring in more people, whose…

Finelo Team
Financial Literacy

Pension vs 401(k): A Comprehensive Comparison

The central difference between a pension and a 401(k) is what the plan promises. A traditional pension generally promises a retirement benefit defined by the plan, while a 401(k) builds an individual account whose…

Finelo Team
Trading

Options Trading for Beginners: Your Complete Guide

Options trading means buying or selling contracts tied to an underlying asset. A contract can give its buyer the right to buy or sell that asset at a fixed price by a specified date. For beginners, the sensible…

Finelo Team
Financial Literacy

Monetary Policy vs Fiscal Policy: Understanding the Differences

Monetary policy and fiscal policy both influence the economy, but different institutions control them. Monetary policy is a central bank’s use of financial and monetary tools. Fiscal policy is a government’s use of…

Finelo Team
Financial Literacy

HSA vs FSA: A Detailed Comparison

The short answer in the HSA vs FSA decision is that eligibility comes first, then expected health expenses and the specific rules of the accounts available to you. An HSA is only an option when you satisfy federal…

Finelo Team
Investing

How to Open a Brokerage Account: A Complete Guide

To open a brokerage account, choose a brokerage firm and select an account type. Then complete the application, verify your identity, connect a funding source, and decide how to invest the money. Before you apply…

Finelo Team
Investing

How Does the Stock Market Work?

The stock market connects companies that want to raise money with investors who want to own part of a business. Investors place buy or sell orders through brokers, those orders are routed to trading venues, and a…

Finelo Team
Investing

How Are Dividends Taxed?

Dividends are taxed based mainly on their classification and the account in which they are held. In a taxable account, ordinary dividends are included in ordinary income, while qualified dividends are eligible for…

Finelo Team
Investing

Depreciation vs Amortization: An Investor’s Guide to D&A

Depreciation and amortization both spread an asset’s cost across periods, but they generally apply to different assets. Depreciation is associated with tangible assets such as machinery, vehicles, and buildings…

Finelo Team
Financial Literacy

Defined Benefit vs Defined Contribution Plans: Key Differences and Insights

The central difference is what the plan defines. A defined benefit plan sets a retirement benefit in advance, while a defined contribution plan sets up an individual account funded by employee or employer…

Finelo Team