Advice for a investment newbie...

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  1. #1
    Nemesis07r's Avatar
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    Default Advice for a investment newbie...

    Fellow 4players and investment gurus, I've been looking through the investment forum and been trying to learn as much as I can from the posts I've read. I know I'm just scratching the surface but I'd like to hear any advice or tips you may have for someone like myself which has little understanding of the category. I have been reading up on stocks through google but would very much appreciate any other help I can get from my fellow forum members. I will be trading leisurely on the side, this will not be a main source of income but I would like to have a little extra from this. I plan on holding my shares for atleast a few months, but most likely a year or two.

    Just recently I bought a few shares of NFLX @ 86.13 earlier this week and I'm seeing that it's still declining ...I'm probably going to buy some more if they hit the mid 70's but I think NFLX has the potential to go back up once they solidify their new plan and do some damage control.

    Secondly I'm 22 and I'm also thinking of investing in a mutual fund for my later years (55-60). Any good suggestions on which ones I should look at or stay away from? I'm looking at maybe Vanguard, but I still have a lot of research to do. I'm most likely going to be investing in a mutual fund that's mainly technology based.

    Thanks in advance for any help or suggestions you may have, also PM's are always welcome.

  2. #2
    schmidty's Avatar
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    The premise of your post/question is sort of general/broad..

    With respect to Vanguard, I would suggest looking towards a high risk fund, but I suppose that could depend on how much you are looking to initially invest..

  3. #3
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    Sorry Schmidty, I didn't notice it was too broad. I guess it reflects my knowledge of stocks haha. Anyways, I guess the main question should be are there any sites or blogs anyone would suggest me on reading up to expand my knowledge and give me some good tips on what to look for when investing. I know many are secretive on what stocks to get into and stay away from so I won't ask that of people. But just curious on what signs to look out for when getting into the "game". Thanks!

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    I like seeking alpha.com they have some good info. If I were you I wouldnt touch Netflix it was a momentum stock which went down faster than it went up. There are so many other good buys out there. Take a look at FIO they make flash memory that goes into apple products and other smartphones, tablet etc. Plus Steve Wozniak is their Chief Scientist which doesnt hurt.
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  6. #5
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    Thanks Rossi. I'll definitely take a look into alpha and FIO, much appreciated. We'll see about NFLX, if it really seems like it's not going to go well I'll try to break even if not, cut my losses....think of it as a tuition fee

  7. #6
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    hey bud! i started trading around your age too. Mutual funds are motly a ripoff espeically if your looking for a longterm one. AFter expenses and fee's most can barely even beat the average of the s&p for the year. I*ve got a ton of friends on wallstreet and in the hedgefund business most of them can barely make 10% in a year which for a young guy is not going to make you any money. Your better of learning, reading, and talking with other traders and finding out the ways to make 10% in a month then settling for it in a year. Unless you got a 200million trust fund then id settle for the 10%.

    HOlding stocks for a year or 2 also is less then a 50% chance of makiing any good money. 90% of stocks will have most of their upthrust in just a handful of days in the market. Learn to capture those spots of inflection where a stock explodes. Ride the meat of the move and get it. When trading with a small amt of capital its all about the most efficient use of capital. If your in dead money or a stock thats not moving then your basically losing money as you could be in a stock thats about to rip 20%

    The most important thing is to figure out what your goals are. Then find a method that suits your risk profile along with your goals and then obtain complete master of that method. That involves stock selection aka identify stocks that fit your method. Then find the optimal low risk entry point, position sizing aka how many shares to buy, risk management aka where to exit thej stock if it goes against you, target, etc.

    also one of the things ive learned in trading. best strategy when holding a stock longterm is average up...rarely down. if the stock goes down from where you bought it there is a good shot you misanalyzed it. You never double down on mistakes but always double down when correct.

    Quote Originally Posted by Nemesis07r View Post
    Fellow 4players and investment gurus, I've been looking through the investment forum and been trying to learn as much as I can from the posts I've read. I know I'm just scratching the surface but I'd like to hear any advice or tips you may have for someone like myself which has little understanding of the category. I have been reading up on stocks through google but would very much appreciate any other help I can get from my fellow forum members. I will be trading leisurely on the side, this will not be a main source of income but I would like to have a little extra from this. I plan on holding my shares for atleast a few months, but most likely a year or two.

    Just recently I bought a few shares of NFLX @ 86.13 earlier this week and I'm seeing that it's still declining ...I'm probably going to buy some more if they hit the mid 70's but I think NFLX has the potential to go back up once they solidify their new plan and do some damage control.

    Secondly I'm 22 and I'm also thinking of investing in a mutual fund for my later years (55-60). Any good suggestions on which ones I should look at or stay away from? I'm looking at maybe Vanguard, but I still have a lot of research to do. I'm most likely going to be investing in a mutual fund that's mainly technology based.

    Thanks in advance for any help or suggestions you may have, also PM's are always welcome.
    Kunal Desai
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  8. #7
    kunal00@bullsonws's Avatar
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    hey bud! i started trading around your age too. Mutual funds are motly a ripoff espeically if your looking for a longterm one. AFter expenses and fee's most can barely even beat the average of the s&p for the year. I*ve got a ton of friends on wallstreet and in the hedgefund business most of them can barely make 10% in a year which for a young guy is not going to make you any money. Your better of learning, reading, and talking with other traders and finding out the ways to make 10% in a month then settling for it in a year. Unless you got a 200million trust fund then id settle for the 10%.

    HOlding stocks for a year or 2 also is less then a 50% chance of makiing any good money. 90% of stocks will have most of their upthrust in just a handful of days in the market. Learn to capture those spots of inflection where a stock explodes. Ride the meat of the move and get it. When trading with a small amt of capital its all about the most efficient use of capital. If your in dead money or a stock thats not moving then your basically losing money as you could be in a stock thats about to rip 20%

    The most important thing is to figure out what your goals are. Then find a method that suits your risk profile along with your goals and then obtain complete master of that method. That involves stock selection aka identify stocks that fit your method. Then find the optimal low risk entry point, position sizing aka how many shares to buy, risk management aka where to exit thej stock if it goes against you, target, etc.

    also one of the things ive learned in trading. best strategy when holding a stock longterm is average up...rarely down. if the stock goes down from where you bought it there is a good shot you misanalyzed it. You never double down on mistakes but always double down when correct.

    Quote Originally Posted by Nemesis07r View Post
    Fellow 4players and investment gurus, I've been looking through the investment forum and been trying to learn as much as I can from the posts I've read. I know I'm just scratching the surface but I'd like to hear any advice or tips you may have for someone like myself which has little understanding of the category. I have been reading up on stocks through google but would very much appreciate any other help I can get from my fellow forum members. I will be trading leisurely on the side, this will not be a main source of income but I would like to have a little extra from this. I plan on holding my shares for atleast a few months, but most likely a year or two.

    Just recently I bought a few shares of NFLX @ 86.13 earlier this week and I'm seeing that it's still declining ...I'm probably going to buy some more if they hit the mid 70's but I think NFLX has the potential to go back up once they solidify their new plan and do some damage control.

    Secondly I'm 22 and I'm also thinking of investing in a mutual fund for my later years (55-60). Any good suggestions on which ones I should look at or stay away from? I'm looking at maybe Vanguard, but I still have a lot of research to do. I'm most likely going to be investing in a mutual fund that's mainly technology based.

    Thanks in advance for any help or suggestions you may have, also PM's are always welcome.
    Kunal Desai
    Hidden Content

  9. #8
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    great words^

    one thought i can give you off the bat, i personally i think a couple shares of one stock at $85 a pop isnt going to mean much if it jumps up a few cents or even a dollar; id run a much smaller amount around say the 25-50 dollar mark (fi you can afford it) and when you learn more, jump into higher amount of shares
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  10. #9
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    1. Get out of any debt you have
    2. Make sure you max out all retirement funds
    3. Invest in stocks/mutual funds/real estate depending on your goals

    Buying and selling short term stocks are a good way to make a quick buck. Also a good way to lose your money. IMO its not a great retirement strategy.

  11. #10
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    Thanks a bunch for all of your input guys. There's so much more for me to learn and I'm going to try to absorb all that I can.

    Bullsonwallstreet, thanks for putting in your time and effort on explaining some of the things you've mentioned. Definitely worth thinking over. I've actually seen your videos on your website and I'm slowly starting to understand what the charts are representing . Your second and fourth paragraphs are very insightful and great advice. I'm just trying to feel out when's a good time to buy and what not.

    Ddigangi, yes, I've been trying to look for some companies which are around that price range but I guess I haven't done enough research yet on the companies to "predict" which ones are promising in the near future and that may jump up that Bullsonwallstreet has mentioned. But what you said is very true and I will continue my search.

    Donblackie, thank you for your 2 cents as well. Currently I have no debt and I'm still looking at these stocks on the side. Secondly, what do you mean by "maxing out all my retirement funds"? Sorry for the silly question but I just want to stay on the same page. Thirdly, I heard from another trader which I've met through work that; if I were to invest into a mutual fund, save atleast 20-30 dollars a week and put it into that fund religiously that the moeny in the fund will be worth a good amount of money by the time I'm 60-65 which I could use for retirement. This of course seeing that the market is doing well and not in a trough. Is this true? Also I understand that may not be the wisest and least risky way to save for retirement but like I've mentioned, I've still have a lot to learn and a lot more research to do.

    Also, seeing that many members seem to be on the same boat of which trading evey few days vs a year a or two, would you recommend me staying with scottrade? They charge a 7 dollar fee per trade and I can only imagine the money I'd be throwing away if I were to stay with them assuming I start trading regularly more frequently. Are there any other services you would reccomend? Thanks again for all your support and help 4players. It's much appreciated!

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