Hi,
As my RL e-biz is doing quite well, I think its time I start to look into investing.
I have bought several books. Idiots Guide to Stocks, Dummies Guide to trading.. etc..
I have $10,000 to invest (actually $30k in a TD-Ameritrade account, $28k of that may be freed up if VMWare doesnt start going back up).
I was wondering, whats a decent starting capital?
What websites do you guys use for information and such?
Do you follow a lot of posts from respected guys on forums??
New Investor - $10,000 to invest.. in what??
If you are as new to investing as you claim... let me give you a FACT! The usual person that shows up and wants to invest... will lose half of his investment so quickly it isn't funny! Most will literally get scammed right out of that first half before they even realize how ... ummm... errrr... ok... I will just say it in plain English.... before they realize how crooked the GAME is. Then on top of that... that same investor will then proceed to lose the other half of his stake. I know you think I am kidding you! But I am not! I lost half of mine very quick... didn't have much to start with, but I don't think it matters... we tend to play with what we have.
You have to answer for yourself ... a few questions... and be honest with yourself, don't try to fool yourself.... Ask yourself "what level of risk am I willing to take?" That is one of the main questions... There is RISK in any type of investment.... the more risk, the more reward that is available... but nerves of Steel aren't the only thing involved! No matter where you decide to put your money...Ask yourself "how will my life be affected if I lose all of this investment?" It is always a possibility! Never play with more than you can afford to lose! "How will people in your life be affected if that money is lost?"
It is fine to read post on boards, but then do your own DD (research)... Many of us play pretty much pure Technical Plays, but until you know what you are doing... I don't suggest you blindly follow anyone else's plays.
Almost everyone here on this board are "good people" I don't know of anyone that isn't... but I wanted to leave an out just in case one shows up here... I don't think any of the regulars here would intentionally lead you down the wrong path..... but you also have to consider that every time someone sells a stock because he honestly believes it has gone as high as it will go (for that time period) he has to depend on finding someone that is just as convinced that the stock is going to go up from that point.
We all have different ideas on how a stock is going to act... we all have different levels of risk we are comfortable with.... we all have different methods to play this game.... so we don't all play the same way.
Playing stocks is a very emotion packed event for most people that attempt to play the game.... But always remember.... Emotions must be taken totally out of the game for you to succeed! Do your research, know the price or situation you want before entering into a position, and know where you want to exit it, both if it gains or if it losses, before you ever enter it. If you sell at a profit and that stock continues to gain.... smile and wave bye to it.... be happy with your profit... there is no such thing as a bad profit... because the next tic could be the beginning of a fall so fast you can't get a sell order filled!
Are you sure you want to do this? It is not for the mild... nor for the other end of the spectrum... it is a tough game.
Ok I will quit now and let someone else chime in here.....
Good Luck.... here is hoping you win more than you lose! You will do both if you play so go ahead and prepare yourself for that to happen.
__________________
a signature will be here again one day
On top of all that good advice, I would suggest that you break-up your starting capital into portions or % of starting capital. Make up a game plan that you will never risk more them say 5% or 10% of your investment capital on any one stock.NOT MATTER WHERE THE ADVICE COMES FROM and stick to it. Good luck
I would say, ask your self do you want to invest or trade? You can do both. I would rather invest, but I will trade if I think I can make a few bucks. The chart readers are the traders.
Like frog said dont put all your money in one place, I would not break it down to %5 bites but I would use maybe the 20-25% but thats something you have to decide your self.
As one who is still learning, I can honestly say that half of the money I started with is gone (or in the makings of being gone because I haven't cashed in out of hopelessness yet). And I only started in July Most of my losses are in the stocks I'm holding deep in the red while waiting for an eventual turnaround, but who knows how long that could be. SRSR is finall,y turning around for me (innocent plug!), which made my week! But that's only one stock and I consider myself lucky with that
After learning all I did here, I wish I had all that money ($25K) to start over with, because I knew I'd be making much better plays now than I did back then and wouldn't be left deep in the red on various loser stocks. Needless to say, it's money that I can afford to lose, and playing the stock market is so much fun! Been to Vegas and the rush is just that much better...LOL
Take the time to do LOTS of research and understand how stocks play and be able to read the charts. Do your due dilligence on the companies before investing in them. If anything looks suspect to being legit, back off if you intend to actually invest. If you're into playing the momo game, then look for those good entry and exit points, and plan your strategies out before jumping in. If needed, play on paper for awhile until you get the feel for "the game". Missing out on one huge play today won't hurt your portfolio tomorrow. There's always going to be another big play to get in on around the corner. Don't chase anything, let it come to you, at your price.