Very new at this, just looking for advice!

[AugustusNe]

I have just started out, investing small amounts every two weeks using Sharebuilder. I am looking towards a 5-20 year investment as I am in my mid-twenties. I am looking to build a small portfolio, as I already have a pension plan and a Supplemental 457 plan.

My first two stocks were a Large-Cap Natural Gas producer, and a Small-Cap Natural Gas pipeline company, as I am thinking Natural Gas will be used more and more as time goes on.

My main question is where should I head next? I was looking at XOM, or maybe DO. Is this wise, or should I head to an entirely different sector such as ANPI? Or Honda Motor Co?

I am looking at maybe a five to six stock portfolio, adding one every two weeks, then buying more and more as time goes on.

Any advice? I watch Cramer every night but am reluctant to follow his advice because I am not in it for quick trading, mainly buying and holding.

[Aureliomaive]

First of all, its nice to see someone from raleigh on the board. http://onlinetradersforum.com/styles/default/xenforo/clear.png Fellow resident of the capital city right here!! Concerning your stock portfolio, I would recommend that you diversify into sectors other than energy. If you are going to have just 5 or 6 stocks and 2 of them oil/natural gas, know that your portfolio is highly leveraged to oil/natural gas prices. Not a bad idea for long term, but just something to think about. I would split your remaining portfolio holdings into healthcare,tech, and financial stocks.

[Augustnez]

I prefer the oil services (like DO, RIG or OII) to oil or nat gas stocks whose profits depend on the going price for the commodity, which can fluctuate wildly, and those three companies have high growth, strong demand, expensive rates to rake in profits with, and very little competition.

In general, I would look for growth stocks who beat analysts' expectations in their last quarterly earnings reports, so check those out for more ideas. http://onlinetradersforum.com/styles/default/xenforo/clear.png

[AudraClutt]

I agree and don't think this is the right time to jump in, anyway. I usually buy those on dips and sell on highs. They have a tendency to go up and down a lot, although up is the general direction. Oil services are not the same as natural gas, though, but it's good to have something going besides energy. http://onlinetradersforum.com/styles/default/xenforo/clear.png

I do like some of the restaurant stocks who are expanding, although they have had big run ups lately. I'm waiting for some good sell off action that isn't coming from bad news from one of the companies, then plan to buy in. Get most of my bright ideas from earnings reports and looking at future growth, demand, all that.

Health insurance companies like UNH worry me long term, because many of them depend on increased rates for increased profits and it's putting this country out of business and individuals in the poor house. Something has to give, but when it's going to happen, who knows?