What do you think of my individual stocks list? (calls, dividend, invested)

[Texas User]

I don't know what to do with BAC. Should I dump it ASAP? So I made almost $1,500 so far. Its not a lot of money considering the investment I have put in so far but its for long-term. You are a day trader right and do this for a living?

Tradeking is $4.95 per transaction for buy and sell.
I don't know anything about Options. Should I learn this as a long term investor?

I buy shares in $1,000 increments.

Originally Posted by howard555

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You can send personal messages to people you want to communicate with.

You have not told how long you will wait for BAC to go up $5.00 so you can sell. How long will you wait?

Bonds, mutual funds are harder than options. There are 1000's mutual funds.

For trading I use Charles Schwab Street Smart Pro and Street Smart Edge.
Online commissions are $8.95. What do you pay?

You have made 14%. But 14% of what?
You plan to wait for BAC to go to $18.00 so you can sell. You could sell now, and invest the $187 in a Jan. 2013 $15 call option. It lets you CONTROL 100 shares of BAC. That is 100 shares. Another way to control 100 shares is to pay $1346.00 for the stock. The option giving you almost two years for performance is $187.00.

[Texas User]

I put in new money every month.

Originally Posted by howard555

It is going to be hard for you to own 20-30 stocks with $10,000.

The list above are similar to what you have.

If you are willing to take on more risk, you can try technology.

You should never buy a stock for a dividend.

I own alot of Cisco. They just announced, recently, a 6 cent dividend. This is $180 for me. I'd rather have the management figure out how to make the stock go up $1 a year than such a dividend.

The list of industries above are similar to what you have, long term holds, which may or may not work.

There are excellent stocks in technology as well as retail takeovers.
You have to decide how much risk AND reward you want.

I've traded Potash and JP Morgan so I have traded some stocks in those industries.

When you decide to make changes to your account, get together with someone who shares your views and your goals, and communicate with them. I can give guarantees with my recommendations. I'll verify that the same position recommended to you, is also in my own account. I can not offer better help than that.

[nitroae23]

Originally Posted by Teak

Now *that's* HOT!

Yeah,shes all that!!!!

[eskercurve]

I would sell all your equities and put them into a four by 25% ratio like mathjak suggested. Being diversified by economic conditions and sector are important. But you need both, not just equities. With the 25% made of stocks, just get an index fund for the S&P or get a managed fund that seeks to beat it. Let the pros do the trading for you with the weight of thousands just like you - successful and well meaning folks who don't have the time to do it on their own. That 1 grand a month will add up quick in a managed fund ... rotate the 1000 bucks from gold/metals to the equities, then to cash, then to ...

The reason I say this is because you came onto an internet forum for advice. That alone screams you're desperate. At least some of the advice we've been giving you is sound.

It just seems like you're unwilling to listen. You want us to tell you what to do but fight back when we suggest the prudent thing. That tells me that you aren't thinking logically about this.

If you ignore our advice it must mean that you're desperate and not thinking logically and want us to reassure you of the moves you already have in your mind and halfway made up.

There's no surer method of wealth destruction than the mental state you're in now. It's questionable you should have any money left for you to manage.

And it's meaningless for us to suggest anything any further. Good luck. Get over yourself, and listen, then make your own decisions. I wish you luck in whatever you decide to do.

Remember, just because you get lucky in the market doesn't mean you're smart. Gamblers make the same mistake.

[coffee86]

I think it has a lot to do in what you believe in.
Personally, I believe that the crude oil price will go up a lot higher than it is right now, probably to around 200$ before the bubble bursts, so a few months ago I bought some (about $ 8,000) call options.
Todays value over $ 12,000

Why diversify? With such "little" money and at a young age, you can start all over if it fails, but if it works, the rewards will be great! So I'd sell everything and just "bet" on something (with options) where your leverage is better (e.g. in my "bet" it will double every time the crude oil price goes up about 20%)

This might sound nuts to some people who would rather "buy & hold", but do you know what sounds nut to me? Gaining a few % per year and the inflation eats up all of it or even more, so you're technically loosing money, even if the numbers on the paper become more

[mathjak107]

its okay to speculate with some of your money but dont confuse speculating in something with investing. they are very different . i hold about 10% of my money outside my portfolio's for speculating. sometimes im right and sometimes im wrong but basically that money i speculate with is money i can afford to loose without catastrophy.

my speculating track record long term is far below my investment track record. looking back long term i can honestly say my efforts in speculating were really just for the fun and excitement of it . the gains were no where near the long term gains of my investments.

for those of you who wonder what my difference is between the two this is it.

when i invest im basically willing to take the same return everyone else gets for investing in the markets without trying to be smarter then anyone else and beat those market returns. i cover well chosen asset classes and let that money stay invested in them good or bad. the markets never follow what i think so outsmarting them time and time again is impossible for me.

but when i think im smarter then everyone else and that i know whats going up next or down and for how long thats speculating. be it the next stock, the next sector or the next asset class.

if im right i make above market gains but if i loose i get less then market gains.

most eventual long term track records for speculators end up lagging . its like vegas odds. your hot when hot but boy do markets play games with your logic eventually.

[howard555]

Originally Posted by Texas User

I don't know what to do with BAC. Should I dump it ASAP? So I made almost $1,500 so far. Its not a lot of money considering the investment I have put in so far but its for long-term. You are a day trader right and do this for a living?

Tradeking is $4.95 per transaction for buy and sell.
I don't know anything about Options. Should I learn this as a long term investor?

I buy shares in $1,000 increments.

You should be trying to buy in lots of 100 shares..........

Are you willing to take one small step?

Tell me why you are worried to sell your BAC?
Because it is a loser?

27 shares of BAC will not help you retire, or get rich.
You do not know how long it will take for the stock to go back to $18, for you to get even.

If you can not risk $192, as well as cutting your losses on a loser (a big % loser of 27% though the $ amount of the loss is small), then maybe stocks are not for you.
If you are too afraid to try something, then you may be more suited for paying a brokerage 2-3-4% in fees per year, and you can just check the value of your account each month when they send you your statement.

Why can you not try this?

Sell your BAC now. It is $13.55.
Take $192 and buy 1 January 2013, $15 call option for BAC.

This is a "stock replacement" strategy.

Now, what are the consequences?

Let's analyze them, to figure out why it scares you to do this.

You sell your 27 shares and you buy the call option.
The option, by the way, lets you control "100" shares of BAC.
So, you do this and two things can happen:

1. The stock goes way up to $18, $22, $25, $30 or more, and you'll be cursing that idiot on City Data, "oh I knew I should not have sold my stock, big mistake."
WRONG!
If BAC goes to $20 before January 2013, your call option will be worth at least $500. That is a gain of >>> 61% <<<.
($500 - $192 = $308 / $500 = 61%)
Your option would have gone up 61% in value.
If the stock goes to $25 your option will be worth over $1000.00.
If it goes to $30, your option will be worth over $1500.00.

You want the stocks you own, to increase in value, by more than $27 every time the stock goes up $1.00.
So, you owning 27 shares of BAC is the same as not having any at all.

2. Lets look at the other possibility. The stock stays under $15.00 from now until January 2013. That is a whopping 20+ months and your stock just sits there and moves around a little, but never goes any where. Or it might go down. Then you will be glad you sold the stock if it is going down, or not going to go as high as you want. It would be "dead money" if the stock sits there between $10 and $15.

The most you can lose on the option is $192.00.
That is not a big investment in the scope of your account, which is worth over $10,000.
The option lets you control 100 shares of BAC.
And you have 20+ months for the stock to go higher and make your option more valuable.

Who do you trade with?
E-trade or other?

Can you buy an option?
We are talking about a simple call option.
Not puts or spreads or strangles or straddles, or butterflies, etc. just a simple call option.

If you account is worth that much, and you have a job, you should easily be approved to buy options.

So, why are you scared to sell your BAC, and HOPE you are WRONG?

If you are wrong, and you take the step of buying this option on BAC,
if you are WRONG to sell your stock, it will prove you wrong, by going WAY UP. But, your option will go up too. And FASTER because the option lets you control 100 shares not 27 shares.

Call your E-Trade or whoever it is, and ask to apply to buy options.

I'm suggesting you sell your big loser (27 shares is of no value to you in the long run) and suggesting you invest $192 in an investment instrument that can give you big returns if BAC goes up.

I can not predict what BAC will do between now and January 2013. But, I can tell you that holding 27 shares is no good, and risking $192 to keep control of 100 shares of BAC is a small risk in the overall picture.

[howard555]

Originally Posted by Texas User

I put in new money every month.

How do you do this?

Do you do this, by buying small number of shares in the stocks you have?

And this is how you have ended up with odd numbers of shares?

An analyst, Sterne Agee (a firm) started C with a buy rating and a target of $6. On BAC he rated it neutral with a target of $15. He may be right or wrong, but holding your C may be better than keeping "only" 27 shares of BAC.

Let's discuss BAC.
Why did you buy it?
Has it done what you expected it to do?
When did you buy it?
I hope you did not buy it because you have a checking account there, or your girl friend works there, or you think their logo looks nice. Wrong reasons.

So, what is your current goal on BAC?
Are you going to hold it until it goes back to $18?
That is about a $4.50 gain from here, or $122.00.
This scares me, if you are going to sit and wait all that time for $122.00?
If one of my stocks went up $4.50 I'd be sick if I only made $122.

There are easier and quicker ways to make $122 than to wait for BAC to go up to $18.
It has not been $18 since May 2010.
So, you must have bought it back then or before.

Go to Yahoo Finance and look a the 1 or 2 year chart and see what BAC looks like.

[howard555]

Originally Posted by Texas User

Market ending 4/4/11 :

ALCOA INC = 5.67%, 195 shares

Any suggestions? Should I buy more stocks?

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How long have you owned Alcoa?

Would you like to make 8.37% on Alcoa in 6 weeks?

[Texas User]

Originally Posted by howard555

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How long have you owned Alcoa?

Would you like to make 8.37% on Alcoa in 6 weeks?

Sure but I don't need this money so I am going to re-invest this elsewhere? Lets say I make the money and this also means when I buy other stocks, it will be expensive as well.