Dad is giving me $1000 to put in the Stock Market

[stuman19]

Originally posted by: snowdogg187
Is this for short term? Long term? Retirement?

All these questions matter.

Short term while in college. Occasionally I need to ask him for money to get me through the year. Rather than just give it to me outright he says I can try to earn it by having his 1k grow in the short term and he'll let me have a percentage of the return.

 

[Slew Foot]

I wouldn't put money into stocks long for now. Its a pretty good time to go short on housing/mortgage/disposable income related industries. Actually it was a great time about 4 months ago, my biggest gain, 1300% KBH put Oct 06 55, went from 1-->13, as the stock dropped from 60 to 42.

 

[vi edit]

Originally posted by: newParadigm
penny stocks is where its at till u get like 20k. I got a friend who has 80k after 6mos in the stock market, and he started with as much as you, $1000. I should put you in touchwith him.

Pennies aren't really any different than walking into a casino and betting it all on black at the routlette tables. They are good fun money, but for 99% of the investors out there, you will not win that game.

 

[stuman19]

Originally posted by: Slew Foot
I wouldn't put money into stocks long for now. Its a pretty good time to go short on housing/mortgage/disposable income related industries. Actually it was a great time about 4 months ago, my biggest gain, 1300% KBH put Oct 06 55, went from 1-->13, as the stock dropped from 60 to 42.

Good advise and great gain.

 

[dmcowen674]

Originally posted by: vi_edit

Originally posted by: dmcowen674

Originally posted by: vi_edit

Originally posted by: dmcowen674

Originally posted by: stuman19
Sounds like nobody has faith in me to get some decent return in stocks. I understand.

I hope he is prepared to spend thousands to bail you out of the market.

Rich boys club only... ad a few more zeros and then play.

What the hell are you talking about?

If he goes a cash account, the most he can be out IS a thousand dollars. NOT thousands.

If we were talking shorting a stock or running naked options, then yes. But for a simple cash account you can only get into as much trouble as you plop down. It's not an open line of credit.

Fees, Fees and more fees will eat that $1,000 up in a heart beat.

Crap crap and more crap is all that you are spewing.

www.tdameritrade.com

You pay $9.99 to buy your initial shares and there are ZERO maintenance fees on accounts. You don't have to cary any minimum balances or do a certain number trades a month.

If your stock drops down to $0.00 you can keep that account open indefinitely, or you can sweet talk the broker nicely and they'll flaten it for you for at the web rate. You pay another $9.99 and you are out.

The most you lose is $9.99 to buy, the cost of your investment, and $9.99 to get out.

Well things certainly changed since 2004 then because it cost me $3,000 to get out of the market when stocks like Lucent, AMD, Ericsson etc tanked to a couple of bucks and I was getting socked with hundreds of dollars in fees a month.

 

[vi edit]

Originally posted by: Slew Foot
I wouldn't put money into stocks long for now. Its a pretty good time to go short on housing/mortgage/disposable income related industries. Actually it was a great time about 4 months ago, my biggest gain, 1300% KBH put Oct 06 55, went from 1-->13, as the stock dropped from 60 to 42.

Shorting is where people with just enough knowledge to be dangerous are given just enough rope to hang themselves. Plus you have to have margin account privledges and to do that, you need certain equity requirements. Plus have enough equity on hand to cover your ass if you ever get into a call.

 

[CaptainKahuna]

If you're really into low fees, you can hit TradeKing.com - all trades are $4.99, they're who I use.

I also own mutual funds through Vanguard, mostly their STAR fund (the lowest minimum fund that they offer, with a $1000 minimum) the symbol for it is VGSTX

 

[spidey07]

Originally posted by: dmcowen674
Well things certainly changed since 2004 then because it cost me $3,000 to get out of the market when stocks like Lucent, AMD, Ericsson etc tanked to a couple of bucks and I was getting socked with hundreds of dollars in fees a month.

your dumbarse decisions are your fault you leech on society. Get a job. work you laxy SOB.

 

[dmcowen674]

Originally posted by: spidey07

Originally posted by: dmcowen674
Well things certainly changed since 2004 then because it cost me $3,000 to get out of the market when stocks like Lucent, AMD, Ericsson etc tanked to a couple of bucks and I was getting socked with hundreds of dollars in fees a month.

your dumbarse decisions are your fault you leech on society. Get a job. work you laxy SOB.

Getting stocks was a dumbarse decision? Then why are you encouraging the OP to do just that?

What makes you think I am not working my arse off?

 

[Skeeedunt]

URGETN STOCK TPI

Buyy KCNKLAI most undervalued. Good for future.


Man walks across rocks in forest. What? To say is the best.

 

[everman]

How did you go about choosing these two stocks?

And I don't really see how this is supposed to provide spending money for yourself. Even if you did make 25% this year that means you get some portion of $250, not much for "spending money".

And another point on transaction costs: For every $10 that's 1% of your entire investment. You could on the other hand invest in a couple mutual funds with low initial investment requirements, no load, and low management fees. Even a 2% management fee (that's on the high end) will probably be less than your transaction costs. I suggest sticking to one fund family, that will make it easy to switch between different funds at little to no cost. It sounds like you think mutual fund means safe and low return, however there are plenty that can offer high returns, look at iShares or profunds for example which offers some funds that use a lot of leverage. IE: ultra profunds, such as ultra small/midcap.

I think I've written enough for now...

 

[RedArmy]

Originally posted by: YOyoYOhowsDAjello

Originally posted by: RedArmy
Blow $750 of it on online gambling.

Don't you mean commodity futures?

Or that, whichever. It's all the same.

 

[stuman19]

Originally posted by: everman
How did you go about choosing these two stocks?

And I don't really see how this is supposed to provide spending money for yourself. Even if you did make 25% this year that means you get some portion of $250, not much for "spending money".

And another point on transaction costs: For every $10 that's 1% of your entire investment. You could on the other hand invest in a couple mutual funds with low initial investment requirements, no load, and low management fees. Even a 2% management fee (that's on the high end) will probably be less than your transaction costs. I suggest sticking to one fund family, that will make it easy to switch between different funds at little to no cost. It sounds like you think mutual fund means safe and low return, however there are plenty that can offer high returns, look at iShares or profunds for example which offers some funds that use a lot of leverage. IE: ultra profunds, such as ultra small/midcap.

I think I've written enough for now...

Agreed......fine I won't have a little fun and try to earn the old man some money.

 

[axelfox]

All on black.

 

[PAB]

Janus Orion.

 

[Miramonti]

Originally posted by: stuman19
Sounds like nobody has faith in me to get some decent return in stocks. I understand.

You'll do fine. Just don't buy something that has screamed up recently because when it corrects it will scream down. Buy a good stock that's cheap or gotten relatively cheap, but not one so stable its trading range for the year(s) is narrower than a cockroaches @ss, like coke, walmart, etc. Good luck!

 

[stuman19]

Originally posted by: jjsole

Originally posted by: stuman19
Sounds like nobody has faith in me to get some decent return in stocks. I understand.

You'll do fine. Just don't buy something that has screamed up recently because when it corrects it will scream down. Buy a good stock that's cheap or gotten relatively cheap, but not one so stable its trading range for the year(s) is narrower than a cockroaches @ss, like coke, walmart, etc. Good luck!

Thank you sir. I'm new to this game and you have helped.

 

[IHateMyJob2004]

1) DO NOT TRADE!!!!
2) Buy an established company that has an annually increasing dividend. JNJ, BAC, etc.

Actually JNJ is a good deal right now and probably THE SAFEST stock out there.
http://finance.yahoo.com/q?s=jnj

I got in in the high $50s about a month ago. I waited 2 years for this stock to dip!!!

Find a used copy of "The Single Best Investment". It is by far the best introductory book to stock investing I have read. And I follow it's rules till this day.

 

[IHateMyJob2004]

Dang it's late.

PM me wtih any questions (remind me of this thread). I've basically taken a no BS approach to investing after 5 years of ivnesting. It takes time to figure things out. I fell on my face several times (ignoring PE and buying on emotion).

Now I buy boring sotcks with decent yields. I twiddle my thumbs and watch my money grow over time (years, not days or months).

 

[DukeN]

Buy couple of blue chips near 52 week lows and hang on. Don't look at the stock price, just buy $500 approx each of both.

 

[Zugzwang152]

$$$ -> Nigeria. Done.

 

[Christobevii3]

Intel last week

 

[Acanthus]

Originally posted by: Christobevii3
Intel last week

Did you see the thread where out ATOT market experts said INTC wasnt going up for long time?

 

[KK]

Originally posted by: dmcowen674

Originally posted by: spidey07

Originally posted by: dmcowen674
Well things certainly changed since 2004 then because it cost me $3,000 to get out of the market when stocks like Lucent, AMD, Ericsson etc tanked to a couple of bucks and I was getting socked with hundreds of dollars in fees a month.

your dumbarse decisions are your fault you leech on society. Get a job. work you laxy SOB.

Getting stocks was a dumbarse decision? Then why are you encouraging the OP to do just that?

What makes you think I am not working my arse off?

for you, getting stocks is a dumbass decision.

 

[thomsbrain]

PAB? is that you?