New Investor - $10,000 to invest.. in what??

[redoct2k33]

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??

[Weirdharold]

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.

[pennyfrog]

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

[Foxtrot]

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.

[Kuzami]

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.

[fireopal]

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.

very great post weirdharold :) and i will only add and say in other words >> never ever 'invest' in a penny stock b/c most all of them do not make it and they are to be played imo, which took me losing much to learn lol.... however, there are a few rare ones but not many so doing your own dd is essential b/c weirdharold is absolutely right on in that you can not trust most of what you read on stock boards b/c some of em are set up with what many newbies think are experienced traders who as it turns out are actually some folks that are pumping stocks and at the newbie's expense, which i ( and probably like many others) bought into b/f i got smart - was part of my learning curve and a very expensive lesson to learn lol....also - if you haven't already then you might wanna read a very great article written by 'GUAPO" >>> http://www.stockmarketcats.com/showthread.php?t=452

best of luck with your trading/playing :)

[Rich1]

Ditto to everything posted above.
I too have had to learn the hard way. When i first started, I bought into the hype and jumped in some stocks on their way up. It was great for a while, but then I didn't know when to get out, while most others did. Needless to say, months later I'm still waiting for those first stocks to move up, so I can get out.

I've learned lots since then, and still learning, so I'm doing better with my most recent plays. I have this forum, SMC, and its members to thank for much of my improvement. By and large, the folks here are very helpful, and I sincerely believe that none of the old timers and regulars will intentionally steer you wrong. Just keep in mind that no one is right all the time, and mistakes are made by everyone.

And, if you're really looking to invest (not just trade), find a couple of nice silver or gold mining stocks.

Good luck to you. :)

[BadThad]

Welcome to SMC! :)

Some excellent advice posted. First off, you need to define your goals....everyone is different. Some are out for a quick buck and others are thinking of retirement (me).

Since you said invest........For investment, you should look only at stable large cap stocks that pay dividends. My personal favorite, PG, is a slow but upward moving stock that pays consistent, quarterly dividends. For the long haul, I know of no stock that can beat it. You're not going to get rich from it, but you'll get a return that beats any other savings instrument. Look in the dividend forum section for stocks that pay nice dividends, those are all "investment grade". Year after year, you've going to see the value go up and collect some nice divy's. Typically, people buy these then don't look at them for years.....although some people (me) flip them to cash in on the divy.

On the riskier side, you may want to look at some mid-cap stocks, you'll see lots of recommendations in this forum. Most are fairly stable, but they involve more risk than the large caps....but higher potential for reward.

Ultra high risk, the Pink's found in the "Penny" forum section. Don't even think about these until you're an experienced trader and never invest more than you're willing to lose.....because you might just lose ALL your money. All of us on this forum have made and lost money in the Pinks, I think I'm just about even, maybe a little black, after years of playing with them. I don't like them! LOL

Good luck and I hope you enjoy the forum! :D