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My only current non ETF holding is LYNAS corporation,a rare earth company out of Australia,and they are the hottest thing from there since Amanda Drury! LOL.They will have a monopoly on rare earths mined in the western world for about 3-4 years.Sells for $2.50 a share,and there are 1.7 Billion shares floating,and I expect price dips from time to time as the original owners lock up period expire.Rare earths are needed for every green technology out there,as well as iphones,PC's,windshields,etc.The only other thing I own is SILVER,which I expect to go to $55 by 30 June.Just a hunch.Good Luck to everyone.
Well, Lynas, I sure messed that one up, though a nice profit in a short period of time. I bought on March 15th at $15.80 ($1.58 as I can only trade the ADR online) and sold the 22nd for $20.65. Nice $1440.00 profit but sadly the stock has kept going up. But, I could not turn down 31% in a week or so.
I'm definitely wanting to own it again if it takes another >> big << dip.
Is it ok to disclose personal info here? I don't want to get in trouble for CD nor myself.
How is it personal info? I bought X stock on Y date for Z amount, as of this date it is worth U...this is an R% gain.
At no point does it contain anything about you.
Quote:
Originally Posted by Texas User
I have C so having BAC would not diversify me.
Um, no. I don't think you understand the concept or levels of diversification. You are diversified at a company level, but not by industry or asset class.
That's very basic investing.
Quote:
Originally Posted by Texas User
I have not got into options trading yet.
Your bank account will thank you if you don't. Doubly so for naked options.
Quote:
Originally Posted by Texas User
I guess I got LOTS to learn.
I think this is an understatement. The first thing to learn is not to ask for investment advice on an anonymous blog where more then half the population are cranks, conspiracy theorists, or lunatics. I even include myself in that statement, as it is impossible to know.
So far you have received largely good advice from knowledgeable people, but it seems like you are demanding answers without really getting into the details why. The Motley Fool has a very good series of steps to educate yourself, but it requires that you actually do the work...not just skim over it.
Well with 401K you are holding it for years and years while dollar cost averaging.
When there are sell offs, I just add more shares when the market is bear.
If DOW goes to 9K, I will just buy more shares, it will just dollar cost average.
I thought 14% was better then the DOW that has return about 12% in the past 80 years?
Over the weekend you need to decide which way you want to go.
Here are your choices:
1. Keep all the stock you have and wait an undetermined number of months or years to get back to break even, or whatever profit you want from each.
2. Keep all the stocks you have, and be a buy and hold investor, and come back and check the stock prices once a year.
3. Decide if you want to sell all you have, and turn your $10,000 over to a mutual fund manager or a broker who can give advice on stocks, bonds, funds, commodities, precious metals, etc.
4. Do some buying and selling and manage your own. I have Charles Schwab but they do not give advice. They give me information if I need it. They do have online seminars so there is a degree of advice along the way. The online commissions are $8.95 but if I place an order through a broker the costs are very high.
So you can have 1 Mutual Fund in your 401K and still be well diversified based on industries like Energy, Tech, etc?
Quote:
Originally Posted by subsound
How is it personal info? I bought X stock on Y date for Z amount, as of this date it is worth U...this is an R% gain.
At no point does it contain anything about you.
Um, no. I don't think you understand the concept or levels of diversification. You are diversified at a company level, but not by industry or asset class.
That's very basic investing.
Your bank account will thank you if you don't. Doubly so for naked options.
I think this is an understatement. The first thing to learn is not to ask for investment advice on an anonymous blog where more then half the population are cranks, conspiracy theorists, or lunatics. I even include myself in that statement, as it is impossible to know.
So far you have received largely good advice from knowledgeable people, but it seems like you are demanding answers without really getting into the details why. The Motley Fool has a very good series of steps to educate yourself, but it requires that you actually do the work...not just skim over it.
Is my Financial Advisor at Edward Jones a MF Manager? All he does he buy funds from the new money I give him, he collects the load.
I am not a day trader though.
I am number 4.
Quote:
Originally Posted by howard555
Over the weekend you need to decide which way you want to go.
Here are your choices:
1. Keep all the stock you have and wait an undetermined number of months or years to get back to break even, or whatever profit you want from each.
2. Keep all the stocks you have, and be a buy and hold investor, and come back and check the stock prices once a year.
3. Decide if you want to sell all you have, and turn your $10,000 over to a mutual fund manager or a broker who can give advice on stocks, bonds, funds, commodities, precious metals, etc.
4. Do some buying and selling and manage your own. I have Charles Schwab but they do not give advice. They give me information if I need it. They do have online seminars so there is a degree of advice along the way. The online commissions are $8.95 but if I place an order through a broker the costs are very high.
My only current non ETF holding is LYNAS corporation,a rare earth company out of Australia,and they are the hottest thing from there since Amanda Drury! LOL.
You can build up a diversified stock portfolio with anywhere from 7-30 if you spread them across several industries. But it won't be diversified across different asset classes. For that, you will need to own commodities, precious metals, real estate, and bamboo fly rods also.
For your stock portfolio, I would suggest the following industries be added:
Timber REIT: WY, RYN or PCL
Major oil: XOM, COP, or CVX
Pipeline: ENB or one of those Master Limited Partnerships
Agriculture: DE, ADM, POT
Regional Bank: USB, Wells Fargo (forgot the code)
Consumer Staples: PG, KMB, KFT, MO, PM
All of the above pay dividends, and grow them regularly.
Avoid mutual funds like you would avoid the black plague. Once you own 20-30 stocks, you will have your OWN mutual fund without the associated fees and inflexibility.
Been there, done that, glad I did. It takes time (several years) but well worth the effort.
You can build up a diversified stock portfolio with anywhere from 7-30 if you spread them across several industries. But it won't be diversified across different asset classes. For that, you will need to own commodities, precious metals, real estate, and bamboo fly rods also.
For your stock portfolio, I would suggest the following industries be added:
Timber REIT: WY, RYN or PCL
Major oil: XOM, COP, or CVX
Pipeline: ENB or one of those Master Limited Partnerships
Agriculture: DE, ADM, POT
Regional Bank: USB, Wells Fargo (forgot the code)
Consumer Staples: PG, KMB, KFT, MO, PM
All of the above pay dividends, and grow them regularly.
Avoid mutual funds like you would avoid the black plague. Once you own 20-30 stocks, you will have your OWN mutual fund without the associated fees and inflexibility.
Been there, done that, glad I did. It takes time (several years) but well worth the effort.
Is my Financial Advisor at Edward Jones a MF Manager? All he does he buy funds from the new money I give him, he collects the load.
I am not a day trader though.
I am number 4.
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.
The real losers were the ones who bailed out in the 2008 crash while I was excited about buying more shares at a cheaper. Buffett said it was our greatest buying opportunity of our lifetimes.
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Originally Posted by mathjak107
it means yes some people shouldnt drive.. some people dont have the skill to drive or invest in high risk areas and they SHOULD NOT be dabbling in playing with individeual issues. its also not just about stocks. there are other asset classes that shine as well. betting on 1 part of the market cycle and ruling out the rest can be a loosing game.
the last decade saw bonds shine, gold was a star. commodities did well. reits were the winners the past 3,5,10,15 year periods.
its all about owning them all and not guessing which is next to rise or fall.
just owning gold,a total market fund, long term treasuries and cash has beat the pants off most every combo. for the last 35 years doing nothing but re-balancing has had that mix returning over 9% a year cagr with only 25% in equities. it was down 3 or 4x slightly in 40 years and was up solidly in 2008 when equities fell 45%.. all with 50% less risk then the s&p 500 .
investing is not about gains... ill repeat that, investing is not about gains. its about getting the maximum return for the lowest risk you can take to get that return.
a speculator throws money into a bet on something and wins big big if they are right but loose big if they are wrong.
a skillful investor can get nice gains but balance out that risk so the losses are much smaller if your wrong and the daily volatility is at a point where you stay in the markets long term.
going 100% equities and finding out after things fall you dont have the stomach for it and bailing and loosing money serves no good to anyone . but thats what 2008 taught folks. regardless of age the pucker factor destroyed there investments as they bailed and ran instead of rebalancing or adding more money. they thought equities were the only way to invest so they never diversified .
folks like to bet only on equities because when markets are going up they think they are successful investors but then they bail and run for the hills when things drop and give those gains back.
its sooooo bad morningstar actually tracks small investor money in and out of investments. they found the small investor left to his own devices got 1/3 the gains of the actual funds because they do the wrong thing at the wrong time.
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