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| NoSkill |
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Sir
Registered Member #457
Joined: Tue Oct 10 2006, 01:13PMPosts: 2628 |
Wow rusty, that's awesome investment advice. "Never sell at a loss." Well when you're gambling in pink sheets and OTCBB's you're going to take a loss. I bought one company at 1.21 and sold at .44. Guess where it's at today, 5 months later, .09. You're going to take losses in the market, it's inevitable, especially in risky stuff. But I don't care if I lose money, I'm young and make alot... the goal to not losing your shirt is put a cap on your losses. Usually a percentage, say, I'm going to dollar cost average this $5000 twice a month into this stock/fund over the next year. I'm setting a 20% stop loss on my money, so that if as you're investing at any point your net total is $4,000, then you sell it all and start over. If you're comfortable with risk, set the percentage higher, if not, set it lower. In the BB's though I'd allow 90%+ lol because the damn price fluctuates so wildly, as much as 10% a day or more in some cases! |
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| Rusty |
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FTS Server Op
Registered Member #159
Joined: Wed Mar 01 2006, 06:33PMPosts: 2682 |
Wow, way to be a fag noskill, get the stick out your ass. For investments, I would never invest enough into a company that a bankrupt will kill me, it would be stupid. And unlike you, I know money doesn't grow on trees. Grow the fuck up kid. |
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| NoSkill |
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Sir
Registered Member #457
Joined: Tue Oct 10 2006, 01:13PM Posts: 2628 |
Wtf are you talking about? No shit money doesn't grow on trees, I make it. Kid? Can you read what I write? I've been actively investing for over 5 years, passively for about 9. I've never invested more than 20% my net worth because that would be stupid in the event of catastrophic failure. That $6,000, that was over the course of 5 years and is probably a fifth of the total amount. (hard to tell with gains from other areas) Actually why the fuck am I explaining myself to you? I've forgotten more shit than you know. |
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| gLiTch |
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Anal Assassin
Registered Member #455
Joined: Mon Oct 09 2006, 04:58AMPosts: 3848 |
if you want the best investment, make best friends with Craigslist. Do what my uncle does, Craigslist is a religion to him, and he makes an estimated extra 6 grand a month just by buying and reselling classic cars. My advice to you is this. Forget CDs, worst investment. Takes too fuckin long to make anything. Learn everything about at least 12 different classic cars between the years 1965-1978. Study craigslist in your area, and learn and see what the cars go for, and in what condition. Buy a classic car in decent condition for $4k, put $800 into it to make it fresh, resell it for $6.5k 2-3 weeks later. Get it down to a science and you can do up to 3-4 cars at a time like my uncle. All you need is the money to start with, which you already have. If only i was so lucky to have money to start with, i would triple it in 4 months. |
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| gLiTch |
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Anal Assassin
Registered Member #455
Joined: Mon Oct 09 2006, 04:58AM Posts: 3848 |
BTW, my grandmother put $1k into a general stock thingy back when i graduated grammar school. 3 months later and the twin towers fell, and my 1 grand hit $200. Its up to around $600, and i havent touched it, actually i always forget its there. I want to take out that $600 and use that to start a stock investment to make myself some money. Im tired of sitting around waiting for shit to happen. Im fuckin bored. If you guys with experience can help me out, i would appreciate it. If anyone could point me in the right direction as to where i can learn to trade, i would be grateful. I can teach myself, as i know a lil bit about trading. Plus, my other uncle trades, so i can ask him for advice. Just point me somewhere. |
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| .4ngryToasters |
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you would
Registered Member #149
Joined: Sun Feb 12 2006, 01:08AMPosts: 2039 |
This is a great thread guys; always good to hear different opinions on how to make money. Although I have no fuckin clue what pink sheets and OTCBB's are, I've been keeping an eye on this company called Konarka -[link]- , They are a research company based in Massachusetts that makes solar cells (photovoltaic plastic for those of you who want to get technical) for devices such as digital cameras and cell phones. Soon they'll have the cost of one of these power plastic cells down to about the price of your morning paper. Unfortunately they are still a private company, but when they do go public I know I'm gettin a piece of the action and investing some of my money in their stock. |
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| O_Mega |
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Inconsistant Ownage Device
Registered Member #59
Joined: Sat Dec 10 2005, 06:12PMPosts: 1058 |
I know a decent amount about trading stocks if you want some tips and good websites to get you going Glitch. You guys might wanna check out Forex aswell. As for the cars, I actually had the same idea, only not classic cars, as I dont know shit about them. I was planning driving down to San Jose where its kinda shady, picking up cars, sprucing them up and reselling them. That and investing in Salmon Sperm...trust me, its gonna be golden. | ||
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| Matador |
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Registered Member #784
Joined: Mon Jul 16 2007, 03:43AMPosts: 71 |
mutual funds is a good place to keep it, maybe not the one that it is in currently, but putting it into a bank account that makes 6 percent interest is not a bad idea, for now, but what Id do with that money personaly, if you live in the states is find a primerica office, go through their course(while your money is sitting in the bank with 6 percent) then go for your securities exam, through them its the cheapest way to get it, and then manage your own funds by investing in mutual funds and making comission off your own money ontop of the returns. ETA would be aroound a month or 2 before you actually have the license to do it yourself that way. | ||
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| b4ndito |
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b4ndito
Registered Member #958
Joined: Fri Jan 04 2008, 06:59AMPosts: 3385 |
My head hurts. Please stop. | ||
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| yourdroid |
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Registered Member #36
Joined: Thu Dec 01 2005, 06:12PMPosts: 214 |
I usually don't respond in these advice threads. But this one is right up my alley. First thing that caught my eye is that rusty is a moron... don't listen to him. "don't sell at a loss" is the dumbest thing i have ever heard. It is not about what you want to happen, it is about what will happen. If you picked wrong, why wait around hoping it goes back to break even? Do your homework and find a solid play that will make money. Secondly. Mutual funds suck. Plain and simple. 99 of 100 aren't worth the time it takes to research them, much less the overpriced commissions. Penny stocks are a very bad bet. Most of them are there for a reason. Because the underlying companies are pieces of crap. I wouldn't invest in any stock under $5 unless you have very solid reasons to do so. I will admit that there are a handful of half decent ones. But you can still do better by yourself. If only because of the heavy limitations on mutual fund managers. Now you need to decide how much time and effort you have and are willing to put into this. If it is not much then CDs could be a good bet while you work things out. Make sure you look at the compounding on those though. The APR which is required by law to be stated to you on any interest generating investment is bs unless it says compounded annually. The real rate you get is the EAR (effective annual rate). So a cd paying 6.25% could be better than 6.3 or 6.4% depending on the compounding. If you want to invest in stocks and have little time to research and manage, then put your money in a short term CD with the best EAR you can find and use that time to do homework. Look into stocks that are going to ride out the volatility. Find the great companies that seem to have taken a beating for no good reason or for reasons that have been overblown and buy them while they are down. I'd rather have 17 grand in sears holdings (SHLD) than a mutual fund. (though i wouldn't put all the money in one place. Diversify so you don't get rocked) I know they are getting beat now, but their board chairman Ed Lampert is a genius IMO and is the closest thing to the next warren buffet. The company has taken quite a fall in the last 12 months and is at 98.48 after falling from it's 52 week high of 195.18 back in april. But this is a classic Value buy. The stock has been hit but the company, and managment, are still solid. Of course the best place to have it at all right now is in Warren buffet but i'm pretty sure none of us here can afford Berkshire Hathaway stock (currently trading around 143k per share). Though that is the A shares, they do have B shares trading just under 5k. That would be the safest bet because the high price keeps the stock unaffected by the current market conditions as it is too expensive for most traders. And it is backed by unbeatable levels of experience and performance so that you know the money is not going to just stop. But like i said, we can't afford it so i'll stop.:) If you want stocks but don't have a lot of time or effort that you can put in. Put it into CDs while you do homework to find the companies that will outlast the sub-prime mess and make you long run gains higher than what you can get from any mutual fund. Google is a decent play. I'd also look into brazilian companies. China is overplayed and overvalued in most cases. So i'd avoid many of those. Unless you can find the best of the best. If you do have time to put in, then look heavily into financial statements and find the guys that aren't being talked about and avoid the hyped buys that will flounder. For one thing, don't just think a company is doing good because their NI (net income) is growing or is higher than expected. Break down the statements and find out WHY. I can't stress that enough. NI is just a flawed number. For example: There are some CEOs who get marked as "turnaround artists" because they take struggling companies and turn them around in a few years and then leave when the company's finances look good again. Most of these guys aren't helping the company at all. They are using accounting tricks to inflate the numbers. In many cases they do it legally. One way to do it is by inflating inventory. GAAP (generally accepted accounting principles) are the standard put out by the FASB (financial accounting standards board) that helps set the standards that are used by law to report financing. These principles are heavily flawed and everyone knows it. That is why they get changed so often. (enron used the flaws to hide their illegal tidbits. which led to major changes in the last decade) GAAP requires that the cost of goods sold (CGS) on the Income statement include both variable and fixed costs. The flaw with this is that it means that the more inventory a manufacturer produces, the lower his CGS and higher NI. This happens because even if the variable costs go up (say it cost a company 5 dollars for every unit they produce) the fixed costs per unit go down with every one produced. This more than offsets the extra $5 per unit they incur from making too much product. Atleast on the income statement. So NI will look good in the short term. Unfortunately after a year or so they can't sell the extra inventory and they have to write it down and their financial statements take a huge hit. But the stock goes up while the NI looks good. Basically i'm trying to stress that just because NI, EPS, and Revenues look good doesn't mean the company is worth the paper it's stock is printed on (for the small amount actually printed that is). Hell Enron had $101 billion in revenues on their sheets in 2001. Yet they went bankrupt. Of course their fraud was pretty complicated. Most companies do it simpler like worldcom did. They just capitalized 7or 8 billion in expenses. Which is pretty simple to do and takes about 15 seconds. If your going to actively trade, or go for long term value investment, make sure you do your homework and break down the companies financial statements. DON'T IGNORE THE CASH FLOWS!!!! People always look at the balance sheet and the income statement and ignore the statement of cash flows. Even "professional" analysts. Remember that NI is a result of a lot of things. if the statement of cash flows shows them loosing cash every year in a material amount, it doesn't matter what their NI is, they will go bankrupt because they can't pay their bills. This is already way too long:). If you need any help evaluating a company let me know and i'll be happy to help. I traded on and off for 2 years until i had to close my account to pay for college and my car. (i don't qualify for a single penny of financial aid other than personal loans so i'm paying out of pocket). If you really want to make money on it though and are willing to put in the time to really look into companies, you may want to consider options. -[link]- is a good site to start to learn the ins and outs of options. They are theoretically MUCH riskier than stocks but with risk comes reward. And with a volatile and pessimistic market it could be a good time to venture into the waters. Provided you find the right company. Edited Thu Feb 21 2008, 10:24AM |
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