investing advice

OmgUrMom · 10-02-10, 09:57 AM

about sums it up

what stock do you own?

Boner_18 · 10-02-10, 09:59 AM

It will effect your total returns for each position on a percentage of capital invested basis. This is called averaging in (though it is usually used on the downside).

If you are young and have the liquid capital I say go for it. Or if you can, fully fund a rothIRA and hold the same positions you like in your brokerage account.

20% is an unreasonably high number though. What you should be aiming for is to beat the Indexes by a small margin. This will, baring some catastrophic market event, grow your portfolio at a sustainable rate over a long period of time.

fightingwarrior · 10-02-10, 09:59 AM

i own 8 stocks

ibm
ko
slv
mcd
ge
f
wen
microsoft

not a lot of money i just do it weekly and it has been building up.

i get 4.00 trades to buy i havent really sold any yet.just keep investing until it gets to a nice amount.

SlickFazzer · 10-02-10, 09:59 AM

I try to stick with high quality stocks that have good dividends and strong outlook for the future.

And then I continue to buy on the dips. Good companies get sold down when the market is bad.

In those bad times you want to be BUYING, you are able to get more shares at a cheaper price.

A simple example could be something like CAT (Caterpillar) This company will be here forever, but
they followed the market in the tank.

If you would have started buying in July 2008...and kept buying every month or quarter during the tough
times...good companies come back when the market comes back....you would have a nice gain over the past
2 years.

basically stick with solid companies....and when others are selling you should be buying!

fightingwarrior · 10-02-10, 10:01 AM

i do got a ira i dont max it out though i dont even invest in it i just put money on there.got about 500 invested in my ira nothing much.im looking to start investing more though.

SlickFazzer · 10-02-10, 10:02 AM

Max out the IRA if possible...you will be happy come retirement day...

fightingwarrior · 10-02-10, 10:02 AM

thx guys

dmtrader · 10-02-10, 10:03 AM

Originally posted by SlickFazzer

I try to stick with high quality stocks that have good dividends and strong outlook for the future.

And then I continue to buy on the dips. Good companies get sold down when the market is bad.

In those bad times you want to be BUYING, you are able to get more shares at a cheaper price.

A simple example could be something like CAT (Caterpillar) This company will be here forever, but
they followed the market in the tank.

If you would have started buying in July 2008...and kept buying every month or quarter during the tough
times...good companies come back when the market comes back....you would have a nice gain over the past
2 years.

basically stick with solid companies....and when others are selling you should be buying!

very sharp post

fightingwarrior · 10-02-10, 10:07 AM

yeah it helped me a lot.i will start adding more to my ira since it is very low.ill start investing more as well in my stocks and just watch them.i love my 12 percent gains i just wish i could of had 100k or so on it.

100k =12,000 profit

would be so damm nice but it wont be happening for a while unless i get some monster gains.

floridagolfer · 10-02-10, 10:33 AM

One-third in stocks (quality, not stuff you want to take a flyer on.)
One-third in bonds.
One-third in cash.

But I wouldn't argue with a 40-40-20 ratio since cash is returning only about one-tenth of 1 percent. Until we get a better handle on where the economy is headed, this is no time for excessive risk.

doublej95 · 10-02-10, 10:49 AM

Roth Ira us the way to go, tax free when you take the money out at age 59.5

Justin7 · 10-02-10, 11:29 AM

For the last 100 years, the Dow Jones has averaged a 5% gain a year. If you are going to do better than 5%, you have to gamble and get lucky, or have incredible inside information.

Boner_18 · 10-02-10, 11:46 AM

Originally posted by Justin7

you have to gamble and get lucky, or have incredible inside information.

I disagree. However, we might disagree with what constitutes incredible inside information.

Sawyer · 10-02-10, 06:11 PM

Try sports betting. You can get much better %.

jjgold · 10-02-10, 07:26 PM

Warrior try currency trading, its quick cash and exciting

Holding stocks is fukkin boring

IrishTim · 10-04-10, 02:14 AM

Originally posted by Justin7

For the last 100 years, the Dow Jones has averaged a 5% gain a year. If you are going to do better than 5%, you have to gamble and get lucky, or have incredible inside information.

J7, did you ever find a good source for this? Or have to do it yourself by hand?

SBR_John · 10-04-10, 07:23 AM

Depends on your time frame.

If you have 20 years I would say keep buying but mix in some income investments like preferred stock funds and medium quality bonds. Those are yielding about 8-9% right now. A good balance is 2/3 stocks and 1/3 income.