• We’re currently investigating an issue related to the forum theme and styling that is impacting page layout and visual formatting. The problem has been identified, and we are actively working on a resolution. There is no impact to user data or functionality, this is strictly a front-end display issue. We’ll post an update once the fix has been deployed. Thanks for your patience while we get this sorted.

Stock Market Investing Question

njdevilsfan87

njdevilsfan87

Platinum Member
So, for the past few months, I tried to play the stock market, and it was nothing but a disaster. I went from $10k in March, to maybe about $6k right now. Actually, it was one really bad buy in which I did put a trailing stop, however I didn't realize at the time I had a place a "good for today" as opposed to a "good until canceled" stop. (and no it wasn't Netflix, lol)

So... I'm beginning to think, should I just start dumping a lot of my extra cash now into a stock that pays a dividend? Like Microsoft for example? I figure at the age of the 24, if I start dumping money into a stock like that, as the long as the stock market doesn't crash (and I place trailing stops to protect myself), I should make out nicely in the very long run, no?

I'm thinking like something like:

50%: Into a stock that pays dividend (long term, like retirement long-term)
40%: The so called standard stocks (1-3 year holds or even shorts)
10%: High risk penny stocks (maybe I'll get lucky)

I only ask because I haven't really had an income where I wasn't living paycheck to paycheck until the past year or so, and I have extra money piling up slowly that I don't know what to do with. Thanks.
 
Last edited:
Penny stocks for the win, and do your research.

My uncle bought into a Liquefied Natural Gas company when it was a couple of dollars a share, then the stocks went to around $75 a share. He waited too long to sale, last I heard it was around $20 a share.
 
Last edited:
Texashiker said:
Penny stocks for the win, and do your research.

My uncle bought into a Liquefied Natural Gas company when it was a couple of dollars a share, then the stocks went to around $75 a share. He waited too long to sale, last I heard it was around $20 a share.
Click to expand...

Surely you know the difference between 'sale' and 'sell' right?
 
I am no professional race car driver, but you want to ensure you've got tires that will hug the ground well enough before you come out of the turn and accelerate away.
 
Macamus Prime said:
I am no professional race car driver, but you want to ensure you've got tires that will hug the ground well enough before you come out of the turn and accelerate away.
Click to expand...
Exactly.

Get yourself a good portfolio of stable mutual funds. Once that part is out of the way, THEN go after a few more risky things. Otherwise, your $6 will become $4k, then $2k, then $1k, then you get extremely lucky on a penny stock and tripple your money. You end up with $3k which is far less than what you started with. Or maybe you don't get lucky...

If I were you, I wouldn't touch single stocks (or shorts or penny stocks) until you had at least $100k invested, if not far more. Otherwise you aren't investing, you are gambling. If you want to gamble, go to Vegas. The odds of winning in Vegas are fairly random, whereas the odds of gambling in the stock market are stacked highly against low-value newcomers.
 
Thanks for the tips. I guess for now I will just begin throwing all of my savings into a bank cd (to at least cover inflation), and see where I am in 4-5 years. 🙂
 
Save yourself the trouble and heartache and learn based on history and facts. In the long run you will not outperform a nicely diversified portfolio. Also, educate yourself.

1. Max out employer match in 401k
2. Max out Roth IRA (target retirement fund with low ER, set it and forget it)
3. Max out 401k
4. Start a taxable account (Based on your age I'd recommend, 55% total stock market, 25% international, 20% Bond fund.)
5. ???
6. Profit.
 
Last edited:
njdevilsfan87 said:
Thanks for the tips. I guess for now I will just begin throwing all of my savings into a bank cd (to at least cover inflation), and see where I am in 4-5 years. 🙂
Click to expand...
There are many things in between penny stocks (gambling) and a bank CD (won't even come close to covering inflation). The others in this thread have it right. Get a mutual fund and call it good. I'd personally suggest VFINX.
 
Timing is everything and you hit the market at the wrong time. The last month has been a real down turn and would have hurt most people. If you would have jumped in about 3 years ago and had a stock like Ford you would have made big bank.

The market right now is too risky for me. I'm on the side lines watching a few stocks. I just feel we are on a slow downward turn and I will jump back in when a few stocks hit bottom. No one really knows when a stock will hit bottom and if we all know that we all would be rich.

The way I like to play the market is watch a stock that is trending down and when it starts to climb jump in on it. I also like to look at the company and see how well the company is profiting. If the stock is dropping but the company is still making a prophet then there is no reason that it should not go back up at some point.
 
Texashiker said:
Penny stocks for the win, and do your research.

My uncle bought into a Liquefied Natural Gas company when it was a couple of dollars a share, then the stocks went to around $75 a share. He waited too long to sale, last I heard it was around $20 a share.
Click to expand...

You're an idiot
 
Texashiker said:
Penny stocks for the win, and do your research.

My uncle bought into a Liquefied Natural Gas company when it was a couple of dollars a share, then the stocks went to around $75 a share. He waited too long to sale, last I heard it was around $20 a share.
Click to expand...

Yeah, when I buy penny stocks for a couple dollars, I usually wait until they are well over $75/share before I sale too...😀

Wtf was he thinking?? 😵
 
not the time for stocks, put it into this fund
http://investments.pimco.com/Aboutu...nches_Inflation_Reponse_Multi-Asset_Fund.aspx
The PIMCO Inflation Response Multi-Asset Fund uses a multi-asset approach to identify and hedge risk in the best way to protect against inflation and may even take advantage of it, by investing in a range of assets that might respond to different types of inflation, such as Treasury Inflation Protected Securities, commodities, emerging market currencies, real estate investment trusts and gold. PIMCO actively manages the asset allocation and underlying investments and incorporates tail risk hedging strategies intended to limit the impact of severe market shocks. These strategies are designed to protect against downside risk while positioning inflation-related assets to benefit from inflation dynamics. PIMCO defines tail risks as widespread, severe market declines.
Click to expand...
 
You must log in or register to reply here.

TRENDING THREADS

Back
Top