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HIGH RISK STOCKS

Don't invest more in them than you can afford to lose, that's about all I can tell you.

High-beta stocks are OK in a portfolio or in a long-term situation where you can ride out the lows. If you're not going to diversify or if you're looking for short-term gains, you're better looking at lower-beta securities.

ZV
 
High risk stocks == Vegas Casino Gambling

I have a few shares in assorted Biotech stocks, but most of my investments are in mid and large cap growth funds.
 
Finova group probably falls into that category.. fnvg.ob. My neighbor who uses my computer to access his online brokerage account, follows it and buys some for his grand-daughter from time to time.. it's only $0.73. I know nothing about it execpt that its stock price climbed when Warren Buffett showed interest in it.. now it's back down to reality. Anyone know anything about this stock?
 
Well see me and a friend are total noobs to stocks. Me and my buddy are 24 years old and really want to become very aggressive in the stock market. We want to make some serious money and take some risks as well. Where do we begin and whats a good plan of action. For starts we have 500 bucks to invest by feb 1st.
 
Originally posted by: ajpa123
Finova group probably falls into that category.. fnvg.ob. My neighbor who uses my computer to access his online brokerage account, follows it and buys some for his grand-daughter from time to time.. it's only $0.73. I know nothing about it execpt that its stock price climbed when Warren Buffett showed interest in it.. now it's back down to reality. Anyone know anything about this stock?
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Well, it's not generating cash. Never good to have a negative amount of cash flow from operations. Then again, they are new.

ZV
 
Originally posted by: Zenmervolt
Originally posted by: ajpa123
Finova group probably falls into that category.. fnvg.ob. My neighbor who uses my computer to access his online brokerage account, follows it and buys some for his grand-daughter from time to time.. it's only $0.73. I know nothing about it execpt that its stock price climbed when Warren Buffett showed interest in it.. now it's back down to reality. Anyone know anything about this stock?
Click to expand...
Well, it's not generating cash. Never good to have a negative amount of cash flow from operations. Then again, they are new.

ZV
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did you get my pm?
 
If you want to make money from the stock market and you have $500 to start, there are a few things I recommend:

1) Think investing, not gambling. Big scores are about as rare as getting 777 at vegas and you don't get free drinks while you're waiting

2) $500 = mutual fund or DRIP investing

You can research mutual funds yourself. You can find DRIPs (Dividend reinvestment Plans) on the web.

Equiserve DRIP list is a site where you can find a list of plans you can join even if you do not own any stock.

If you think about what you'll have 10 years from now instead of next week, you'll do much better.

Michael
 
Originally posted by: Darkstar757
Originally posted by: Zenmervolt
Originally posted by: ajpa123
Finova group probably falls into that category.. fnvg.ob. My neighbor who uses my computer to access his online brokerage account, follows it and buys some for his grand-daughter from time to time.. it's only $0.73. I know nothing about it execpt that its stock price climbed when Warren Buffett showed interest in it.. now it's back down to reality. Anyone know anything about this stock?
Click to expand...
Well, it's not generating cash. Never good to have a negative amount of cash flow from operations. Then again, they are new.

ZV
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did you get my pm?
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Yup, just responded. Lemme know if you got it.

ZV
 
Damnit. I clicked reply _once_, gave me a 404 and when I checked the thread again it had me replying three times. That's it. Back to Mozilla, CrazyBrowser's fvcked up twice today.

ZV
 
$500 is too little to play with, $2000 is the min to get into some of the less risky stocks, $500 will limit yourself to penny stocks, those are very very risky.
 
Originally posted by: richardycc
$500 is too little to play with, $2000 is the min to get into some of the less risky stocks, $500 will limit yourself to penny stocks, those are very very risky.
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thats nonsense. As suggested before, buy some mutual funds. You can definitely do that with $500 and you won't be limited to penny stocks.
 
Originally posted by: Darkstar757
So would everyone agree vandguard is the best to go with
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if you wanna play it "safe" with broad mutual funds, VFINX or a S&P 500 or russell 1000 fund is nice (these will give you exposure to a "broad" set of large cap funds).

If you are still looking for some risk and want to "beat the market", try looking at some leveraged funds. These funds strive to give you 200% (or some other multiple) of the return of a benchmark. For instance, check out rydex funds like this one that aims to get 2 times the return of the S&P 500 (in essence, their beta is 2). If you check out their year to date performance, you'll see they are up 6.7% while the market (the S&P 500) is up 3.21% over the same period. Likewise, they have funds that will give you -100% or -200% exposure to the market.

Unfortunately, I think their minimum investments might be quite large for you (20k I think), but you can search for other similar funds.
 
I would stop deluding yourself. Beating the market is exceptionally difficult. The average, experienced, investor cannot even beat the market - and you want to come in knowing nothing about it and kick ass and take names? Say goodbye to your $500.
 
Originally posted by: Skoorb
I would stop deluding yourself. Beating the market is exceptionally difficult. The average, experienced, investor cannot even beat the market - and you want to come in knowing nothing about it and kick ass and take names? Say goodbye to your $500.
Click to expand...

there is a big difference between beating the market and "doubling down" on the market like I was suggesting. Leveraging up on the market obviously doesn't mean you will "beat the market". You will get higher returns on the way up, but also bigger losses on the way down.

But, if you have a lot of time, are willing to take on more risk, and believe that over time, the market will go up... then taking a super high beta bet is exactly what you want to do. It is better than looking for more risk in individual stocks or micro cap funds.
 
Originally posted by: Hector13
Originally posted by: Skoorb
I would stop deluding yourself. Beating the market is exceptionally difficult. The average, experienced, investor cannot even beat the market - and you want to come in knowing nothing about it and kick ass and take names? Say goodbye to your $500.
Click to expand...

there is a big difference between beating the market and "doubling down" on the market like I was suggesting. Leveraging up on the market obviously doesn't mean you will "beat the market". You will get higher returns on the way up, but also bigger losses on the way down.

But, if you have a lot of time, are willing to take on more risk, and believe that over time, the market will go up... then taking a super high beta bet is exactly what you want to do. It is better than looking for more risk in individual stocks or micro cap funds.
Click to expand...
Well, I didn't read the thread - so any post of mine was general and not in response to anything. I'm merely reiterating, as I always do, that the average joe will stand to lose money trying to place the market in this manner when compared to the gains they'll get by a less hands-on approach, such as in index fund.
 
Originally posted by: Michael
If you think about what you'll have 10 years from now instead of next week, you'll do much better.

Michael
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Best single piece of advice I've ever read on an internet forum about stock investing.

If you're just trying to "get rich quick", you're not going to get very far. Investing is about slowly building and positioning assets. Don't think about striking it rich and retiring at 25. It would be more realistic to invest in lottery tickets. Instead, think about retiring comfortably at 40 to 50. Planned right, it can be done.
 
some mutual funds are as high as $70. You'll get no more than 7 shares if you get the fidelity manager's special. 🙂
 
Originally posted by: IBuyUFO
some mutual funds are as high as $70. You'll get no more than 7 shares if you get the fidelity manager's special. 🙂
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It still goes up by the same amount. If you buy 10 shares of something at $50 and it goes up 5% you end up with an investment worth $525.

If you buy 100 shares of something at $5 and it goes up 5% you have, gasp, an investment worth $525.

The physical number of shares is irrelevant, it's total share value that matters.

ZV
 
Originally posted by: Skoorb
Originally posted by: Hector13
Originally posted by: Skoorb
I would stop deluding yourself. Beating the market is exceptionally difficult. The average, experienced, investor cannot even beat the market - and you want to come in knowing nothing about it and kick ass and take names? Say goodbye to your $500.
Click to expand...
there is a big difference between beating the market and "doubling down" on the market like I was suggesting. Leveraging up on the market obviously doesn't mean you will "beat the market". You will get higher returns on the way up, but also bigger losses on the way down.

But, if you have a lot of time, are willing to take on more risk, and believe that over time, the market will go up... then taking a super high beta bet is exactly what you want to do. It is better than looking for more risk in individual stocks or micro cap funds.
Click to expand...
Well, I didn't read the thread - so any post of mine was general and not in response to anything. I'm merely reiterating, as I always do, that the average joe will stand to lose money trying to place the market in this manner when compared to the gains they'll get by a less hands-on approach, such as in index fund.
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You both make good points. Even with an exceptional fund manager an actively traded fund that tries to "time the market" will often no outperform the market by enough to make up for the increased amount of fees it incurs. In other words, the gross return (before fees and other frictions like bid/ask spreads) is sometimes better, but the net return (after fees and other frictions) is almost always worse than the market average.

ZV
 
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