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Well chit happens. just on Friday I sold my stake in SNTS for 1.98 and bought CTIC for 1.26. Days close for both SNTS=2.12 ctic=1.19
I bought SNTS for 1.72. And chances are SNTS was going to keep on rising whereas CTIC well I am screwed. SNTS is a strong company and keeps on getting stronger.
Hello. Over the past 3 months I have taken my first plunge into the stockmarket. I have thought about investing for years and finally opened a Scottrade account. I got some bonus money so have been investing about 700 every 2 weeks in the market. I sold my first stock last week. I made about 300 on Boeing. I am not even sure why I sold it. I am not sure if I am investing right, if there is such a thing. I bought Jet Blue, Microsoft, Ford, GE and 4 ETFS (VTI is one, QQQQ) and some others. Not everyone has the time or knowledge of the market but i figured why not get in on this. i am 37 and trying to save and invest. Otherwise my money would be sitting in a CD at 2 percent interest. If i lost all this money tomorrow (about 6000) i would not be destitute. Any opinion or advice is appreciated. I plan to invest another 2000 over the next 2 months so also any advice as to where to put this.
This is a great market for guys like me! Especially when I have insider information while the laymen like you try to figure out the bezzle. It aint easy investing in a Ponzi Scheme so be very very careful.
I have 3 words of advice for you: GREED IS GOOD!!!!!
The last few months have been quite profitable for many. 1Q09 was a low point for the market in recent years, and the last two months have seen good gains. Things to keep in mind when trading over the short term...as of now you are taxed at your normal tax rate (say 28%) for stocks held less than a year. Those held longer than a year are taxed at 15%, unless Obama raises this. If you are trading smaller amounts then trading fees add up.
Make sure you have a rainy day fund set aside from your trading money. Never know when you car will have an electrical problem.
You need to understand the difference between "investing" and "trading". IMHO, investing is not flipping stocks every two weeks, that's trading. Be sure you understand the difference.
I agree with Traderx reference beginner's luck. Thinking you are good is a sure way to become broke.
You indicate you have about $6k in the market and is scattered across 8 equities. I would think that is too many. You can't make money dealing in small blocks. If you are dealing in blocks of 100 shares and it rises by $1, you have make $100, If you had a 1000 shares, you made $1,000. 50 shares of a stock that increases by $8 is only $400. Trade in larger blocks. Don't overlook trading costs. For your $300 win, you paid about 4.66% in fees. That's higher than an ATM machine.
I also like to keep money in reserve. With $6k, I would use $3k to purchase 1 or 2 ETFs and keep the balance in reserve. With the market, deals abound everyday. If the original purchases decline, consider buying more. You lower the cost/share, increase the # of shares and thus the portential profit when it rises. A technique.
I avoided Ford. Its an $8 stock trading at $5.50. Not a lot of short term upside. Huntington (HBAN) (I have this) in contrast is a $20 stock trading at 4.63. A much higher potential upside. Look for an ETF or stock that is trading below its 200 day avg and trading at around 25% of it 2 year price mean. The potential upside is much higher. Easy to find in this market. Again, my opinion.
I also like to trade on volatility. The higher the better. I was only trading the long side, but after thinking about it, I realized I was missing half the fun. So I now trade both sides. My favorites are FAS and FAZ thanks to Oildog. A mild day for these is +/- 10%. Normal is around +/- 20% and a great day is +/- 30%. A person could almost retire and live well just trading these two ETFs.
I also use programmed trades. I have a price I am willing to pay and I put in a limit order. When/if it hits, I put in predetermined buy/sell limit orders good until the end of the month and go about my business. Scottrade emails me if anything hits. Many active traders will sell calls or puts on their shares. I don't currently do this. But another opportunity you may look into.
That's my thoughts. Good luck, have fun but grasp the difference between trading and investing. My 2ct worth.
For the record I have not traded FAS or FAZ. I do trade in the ETFs for oil and water though.
Faz and Fas are for people with alot of trading experience. Newbies should stay as far away from them as possible. SKF is a little more forgiving. As far as the original question, you caught the market at the right time, whn it was going up. A month from now we might be able to watch you say "Damn I lost all my gains and then some". Unless you have a lot of time to put into your trading get the CD or a mutual fund. It's much safer. And trust me on that. I stopped giving investment advice years ago, one minute I am there best friend and the next I am the a**hole that lost them money.
Thanks for all of your replies. Just a few notes. I do have a small emergency fund in an online bank (about 5000). I am also putting money into this to build it up. I paid off a student loan this year and a car, so no debt besides my mortgage. I also have a cd with about 20,000 in it so I am saving in other ways. However, i really wanted to put some money in stocks something which i never did. I also contribute to a retirement plan. Well now i am sort of confused as to what to do with the investments I have with Scottrade. anymore advice appreciated.
I would only hold index funds/ETFs in major indices (Dow, Nasdaq, S&P 500, etc.), such as the DIA, QQQQ, and SPY, and stocks in major companies that you can follow everyday without too much effort. The question unresolved is whether you are the type of trader whose performance isn't hindered by constant monitoring of your holdings.
You need to have a long term approach to investing. If I'm not going to leave it alone for at least 5 years, I will keep it out of the stock market. I invest only in mutual funds with a long track record. Single stocks are too risky for me.
Any of you who are long in the market right now are STUPID. Shift to cash and/or go short.
GREED IS GOOD!!!
What is your reasoning, oh wise one?
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