Stocks Investing MONEY : Education?!! Pinkys : OTC

Chuck33079 · 10-28-2013, 08:16 AM

Quote:

Originally Posted by raymondo510

Well from what i've been reading there are short term investments like "penny" stocks and mid to longer term investments. I was thinking of starting small so I can get a feel for things so I was thinking on smaller short term. Im not looking to make this a full time job, maybe just a way to earn a little extra income. I understand it's a bit of gamble. I have some money saved, but I'm not willing to put it all on the line, is that what you meant?

Exactly. If you're not comfortable with the idea of losing every bit of your money, stay away from penny stocks. You can have plenty of short term investments that aren't penny stocks. Figure out how much of your money you're comfortable with losing. That's going to determine what kinds of stock to buy. If you're ok with the possiblility of losing a lot of it in exchange for the potential of higher returns, buy small and mid cap growth stocks. If you don't feel comfortable with a big loss and are ok with lower returns than the more aggressive stocks, buy large cap stocks with a healthy dividend.

Meulen · 10-28-2013, 10:41 AM

ZNGA not being too cooperative after the Seeking Alpha reports....HACKS! LOL

raymondo510 · 10-28-2013, 10:48 AM

Quote:

Originally Posted by Chuck33079

Exactly. If you're not comfortable with the idea of losing every bit of your money, stay away from penny stocks. You can have plenty of short term investments that aren't penny stocks. Figure out how much of your money you're comfortable with losing. That's going to determine what kinds of stock to buy. If you're ok with the possiblility of losing a lot of it in exchange for the potential of higher returns, buy small and mid cap growth stocks. If you don't feel comfortable with a big loss and are ok with lower returns than the more aggressive stocks, buy large cap stocks with a healthy dividend.

Ok I see what your saying. I think I would be ok with lower returns at first but a higher chance at success. If i were to start off and take a big loss, that may discourage me from future investing.

Chuck33079 · 10-28-2013, 11:06 AM

Quote:

Originally Posted by raymondo510

Ok I see what your saying. I think I would be ok with lower returns at first but a higher chance at success. If i were to start off and take a big loss, that may discourage me from future investing.

Another thing to consider is how long until you need the money. What looks good for a quarter or two may not be a good performer over a five year period.

And if you plan on being an investor, eventually you'll take some losses. Some of them will be your fault, some of them will be bad timing, and some of them will be "**** happens".

raymondo510 · 10-28-2013, 11:21 AM

Quote:

Originally Posted by Chuck33079

Another thing to consider is how long until you need the money. What looks good for a quarter or two may not be a good performer over a five year period.

And if you plan on being an investor, eventually you'll take some losses. Some of them will be your fault, some of them will be bad timing, and some of them will be "**** happens".

Is there a difference between trading and investing? Could you elaborate a bit on that. I'm not exactly looking for an over night turn around. I understand it could take some time but 5 years seems more like a long term thing to me. Like I said I know its a bit of a gamble, plus being green sometimes you gotta learn the hard way.

Chuck33079 · 10-28-2013, 11:27 AM

Quote:

Originally Posted by raymondo510

Is there a difference between trading and investing? Could you elaborate a bit on that. I'm not exactly looking for an over night turn around. I understand it could take some time but 5 years seems more like a long term thing to me. Like I said I know its a bit of a gamble, plus being green sometimes you gotta learn the hard way.

Traders are looking to buy something mis-priced and sell it quickly. You can make some money that way, but it's closer to gambling than investing. If you're always trying to hit a home run, you'll strike out a lot. If you're trying to build up a portfolio, buy things and hold them. It'll take time. Honestly, five years is just starting to be considered long-term.

Just so you know, I'm a buy-and-hold guy for the most part. There's a lot of guys in this thread that fall more on the side of short term trading. There's a lot of different viewpoints on this stuff, and none of us are right all the time.

raymondo510 · 10-28-2013, 11:46 AM

Quote:

Originally Posted by Chuck33079

Traders are looking to buy something mis-priced and sell it quickly. You can make some money that way, but it's closer to gambling than investing. If you're always trying to hit a home run, you'll strike out a lot. If you're trying to build up a portfolio, buy things and hold them. It'll take time. Honestly, five years is just starting to be considered long-term.

Just so you know, I'm a buy-and-hold guy for the most part. There's a lot of guys in this thread that fall more on the side of short term trading. There's a lot of different viewpoints on this stuff, and none of us are right all the time.

Ok, well thanks for the insight, I got a lot to learn. I know there's site like e-trader and such but are there other places I could gain info maybe even professional help?

raymondo510 · 10-28-2013, 11:47 AM

Professional help made me sound like i need a shrink lol

Chuck33079 · 10-28-2013, 11:49 AM

There's plenty of professionals who will help you. It's not free, though. We're whores, not sluts.

I threw up a pretty good breakdown for a young person's portfolio in this thread. I can't recommend any individual security, but others can. If I were you, I'd go over to investopedia and read until my eyes bleed. Investopedia - Educating the world about finance

ZMan8 · 10-28-2013, 11:53 AM

Quote:

Originally Posted by Chuck33079

There's plenty of professionals who will help you. It's not free, though. We're whores, not sluts.

I threw up a pretty good breakdown for a young person's portfolio in this thread. I can't recommend any individual security, but others can. If I were you, I'd go over to investopedia and read until my eyes bleed. Investopedia - Educating the world about finance

They are pretty good source for beginners

Lots of information there to read about and also Investopedia can provide more education on risk/reward.

raymondo510 · 10-28-2013, 11:56 AM

Quote:

Originally Posted by Chuck33079

There's plenty of professionals who will help you. It's not free, though. We're whores, not sluts.

I threw up a pretty good breakdown for a young person's portfolio in this thread. I can't recommend any individual security, but others can. If I were you, I'd go over to investopedia and read until my eyes bleed. Investopedia - Educating the world about finance

Will do thanks again

birdmanx1 · 10-28-2013, 07:12 PM

Made some good money on FNMA today, I went ahead and sold all 4400 shares. I was tempted to buy AAPl, glad I didn't. Everything looks so overvalued in the market. I'll sit and wait for what makes sense to make a move next. Maybe go b*lls out if there is a decent pullback with FNMA and hold for short term. In the meanwhile, the $40k in my brokerage will just sit till there is good opportunity.

Chuck33079 · 10-28-2013, 07:14 PM

Quote:

Originally Posted by birdmanx1

Made some good money on FNMA today, I went ahead and sold all 4400 shares. I was tempted to buy AAPl, glad I didn't. Everything looks so overvalued in the market. I'll sit and wait for what makes sense to make a move next. Maybe go b*lls out if there is a decent pullback with FNMA and hold for short term. In the meanwhile, the $40k in my brokerage will just sit till there is good opportunity.

I've thought the whole market has been overvalued all year, but it keeps on creeping on up. I'd love to see a 5-10% pullback. It would make me feel better about the whole thing.

birdmanx1 · 10-28-2013, 07:17 PM

Quote:

Originally Posted by Chuck33079

I've thought the whole market has been overvalued all year, but it keeps on creeping on up. I'd love to see a 5-10% pullback. It would make me feel better about the whole thing.

Agreed. Good chance that this stretch extends as the Fed keeps pumping money further - thx to shutdown. Either ways correction is coming sooner or later.

Chuck33079 · 10-28-2013, 07:29 PM

Quote:

Originally Posted by birdmanx1

Agreed. Good chance that this stretch extends as the Fed keeps pumping money further - thx to shutdown. Either ways correction is coming sooner or later.

Yep. As long as the free money flows, nothing's gonna change. I'm more afraid of fixed income at this point than equities. I'd be exchanging any bond funds I held with shorter duration funds if I still held any.

10-28-2013, 10:41 AM	#212 (permalink)
Meulen A True Z Fanatic Join Date: Aug 2013 Location: Romeoville, IL Posts: 1,093 Drives: 2010 370z 40th Rep Power: 3390	ZNGA not being too cooperative after the Seeking Alpha reports....HACKS! LOL __________________ Follow my build thread here: Meulens Build Journal

10-28-2013, 11:47 AM	#218 (permalink)
raymondo510 Track Member Join Date: Mar 2012 Location: NORCAL Posts: 823 Drives: Like I stole It Rep Power: 14	Professional help made me sound like i need a shrink lol __________________ If you ain't first...you're last! -RICKY BOBBY

10-28-2013, 11:49 AM	#219 (permalink)
Chuck33079 A True Z Fanatic Join Date: Nov 2011 Location: Houston Posts: 12,265 Drives: 2011 370ztt Rep Power: 29539	There's plenty of professionals who will help you. It's not free, though. We're whores, not sluts. I threw up a pretty good breakdown for a young person's portfolio in this thread. I can't recommend any individual security, but others can. If I were you, I'd go over to investopedia and read until my eyes bleed. Investopedia - Educating the world about finance NickTurnon and raymondo510 like this. __________________ 2011 MB Touring-Sport-6sp-Nav/GTM TT/FI TT TDX/JTran/Kosmic/Eibach/Hotchkis/SPC/CSF/RPS/SoThatsWhereAllMyMoneyWent

10-28-2013, 07:12 PM	#222 (permalink)
birdmanx1 A True Z Fanatic Join Date: Jun 2010 Location: Baltimore, MD Age: 96 Posts: 3,175 Drives: 370z Nismo Rep Power: 24	Made some good money on FNMA today, I went ahead and sold all 4400 shares. I was tempted to buy AAPl, glad I didn't. Everything looks so overvalued in the market. I'll sit and wait for what makes sense to make a move next. Maybe go blls out if there is a decent pullback with FNMA and hold for short term. In the meanwhile, the $40k in my brokerage will just sit till there is good opportunity. __________________ 370Z NISMO #0462 \| ClearBra \| 3M tint \| Head/Taillights \| Dynamat \| Black Roof \| Tommy Kaira HB \| CF Parts \| Berk HFCs \| FI SS \| NST Pulleys \| Takeda aFe \| K&N \| H&R Spacers \| Swift Spec R \| SPC F&R \| Zuperman M370 Nismo Vid* \| Nismo Journal \| Nismo Rumble

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