Anyone in the Market?

[SVXMAN2001]

Hey guys/gals, is anyone in the stock market here? I've been doing a lot of research as of late and am starting to become more and more interested. I am new to it so i am a bit hesitant to take the initial step of putting my money down. Was just wondering what strategies you all use, what companies you prefer. I've found investpedia.com to be very beneficial and signed up for a one month free trial with www.fool.com (interesting web name). I am very interested to hear people's comments.

-chris

[Red SVX 92]

Start with Scottrade. They have the cheapest commission for trades (at least the basic ones that most people get started out with). $7 flat rate. They require $500 minimum to set up an account. To be honest, it's really not worth trading $500 at a time. It's better to trade at least $1000 (and preferably more) each time so that the commission is only 0.7% ($7/$1000) to buy or sell rather than 1.4% @ $500 ($7/$500). Basically, at $1000, you would need a 1.4% gain just to break even, and 2.8% at $500 to do the same.

To be honest, I do trade $500 at a time, but I've been picking VERY risky stocks, so I either make more than 20% or lose more than 20%, and that's the only way I can justify such low trades.

I've noticed that most people want to trade often when they first get started, assuming that they can make small gaisn with each trade and make money. I'm in that mode right now. A better approach is to buy and hold a stronger stock, rather than trying to beat the market on its ups and downs.

How much are you planning to invest? I'm assuming not that much, and I don't recommend much when you start out, but Ameritrade has a promo where you can get a free Treo 650 and 25 free trades if you put in $25,000. Not for most folks.

If you want to sign up with Scottrade, PM me. Scottrade has a referral program that gives both parties three free trades. I always feel like I'm soliciting when I mention referral stuff, so if anyone else has a Scottrade account, post up here, and you can just take your pick from someone in the SVX family. I don't really mind getting the referral as long as someone in the family gets it.

EDIT: The Motley Fool has some very entertaining articles, but they cross-promote their products heavily, which irks me. Not to mention that a lot of their stocks they recommend as "hidden gems" and the like have obviously already been discovered, so they might not be the best values. I personally like to buy stocks that have taken a huge tumble for some reason or another, i.e., FDA rejection of a pharmaceutical company's drug, bankruptcy filings, etc. I personally don't recommend it to anyone, because the risk/reward ratio is extremely high, but it's made me money (and given me heartburn for a while as well).

[Electrophil]

I invested in packing peanuts. Picked up 12 pounds at $43 per.

It's kind of in the way, but it's went up almost 18 cents over the last 3 quarters.

Let me know if you need any pointers.

[subi-crosser]

Originally Posted by Red SVX 92

Start with Scottrade. They have the cheapest commission for trades (at least the basic ones that most people get started out with). $7 flat rate. They require $500 minimum to set up an account. To be honest, it's really not worth trading $500 at a time. It's better to trade at least $1000 (and preferably more) each time so that the commission is only 0.7% ($7/$1000) to buy or sell rather than 1.4% @ $500 ($7/$500). Basically, at $1000, you would need a 1.4% gain just to break even, and 2.8% at $500 to do the same.

To be honest, I do trade $500 at a time, but I've been picking VERY risky stocks, so I either make more than 20% or lose more than 20%, and that's the only way I can justify such low trades.

I've noticed that most people want to trade often when they first get started, assuming that they can make small gaisn with each trade and make money. I'm in that mode right now. A better approach is to buy and hold a stronger stock, rather than trying to beat the market on its ups and downs.

How much are you planning to invest? I'm assuming not that much, and I don't recommend much when you start out, but Ameritrade has a promo where you can get a free Treo 650 and 25 free trades if you put in $25,000. Not for most folks.

If you want to sign up with Scottrade, PM me. Scottrade has a referral program that gives both parties three free trades. I always feel like I'm soliciting when I mention referral stuff, so if anyone else has a Scottrade account, post up here, and you can just take your pick from someone in the SVX family. I don't really mind getting the referral as long as someone in the family gets it.

EDIT: The Motley Fool has some very entertaining articles, but they cross-promote their products heavily, which irks me. Not to mention that a lot of their stocks they recommend as "hidden gems" and the like have obviously already been discovered, so they might not be the best values. I personally like to buy stocks that have taken a huge tumble for some reason or another, i.e., FDA rejection of a pharmaceutical company's drug, bankruptcy filings, etc. I personally don't recommend it to anyone, because the risk/reward ratio is extremely high, but it's made me money (and given me heartburn for a while as well).

When Cellular one got in some legal trouble 2 years ago, I picked up 100 @ $1.50 ea, today, they are at $7.40. Wish I would have gotten 1000.!! (buy when everyone is selling, Sell when everyone is buying)

A broker talked me out of Martha Stewart @ $12.50 a year and a half ago... She went to $35. in 6 WEEKS!!!

Penny stocks are where you can show the biggest gain in the shortest time.

Jerry

[SVXMAN2001]

I've considered penny stocks but i think given my level of knowledge i'll probably stick to strong stocks. Mostly looking at strong companies and looking into investing over the long term. I am really discouraged from "day trading" due to the capital gain tax rate of 15%!! I've also begun taking into consideration of dividend yields. I really think the wireless technology is going to take off in the upcoming years and have research NASDAQ: IDCC which has a lot of promise but no dividend yield. I had an interesting conversation the subject of dividend yields and they felt that organizations that do not offer dividend yields generally attract investors who are looking to cash out, that idea kinda scares me. On that note i began looking at GM and they're offering a $1.00 dividend trading around $22. Now we all know that GM is experiencing a whole lot of troubling issues but over the long term i think they will improve.

Oh and Scottrade I guess you can't buy pennystocks. Do others here use Ameritrade? Other than the cost what are the advantages/disadvantages of each?

haha i am just thinking of the stuff we've posted...who would have thought we would be talking about this in a car forum!!!

[Red SVX 92]

I forgot to mention dividend stocks. I strongly recommend the blue chips like Bank of America (BAC) or Altria (MO), because their dividends are strong. I'm waiting for BAC to drop below $46, preferably $45.50 or less, before buying. Merck might be another good blue-chip choice, although I don't know their dividend. Energy stocks are a good place to be in right now (not at this moment, since they've been topping out, but just watch it). I bought Valero (VLO) at $50.95 and sold at $55.50 for a quick small gain in 3 weeks. If I'd held it, I'd have gotten ~15% on it up til now, since it just broke $60. I can't complain though, because that money went to a penny stock that netted me a 40% gain in less than 2 weeks.

I would not pick up GM for its dividends. In fact, their dividend used to be $2/share, and they cut it in half. They are a risky stock to play right now, what with their problems with GMAC and Delphi. Their stock got hit just today because of Delphi. I've set a limit buy of 18.5 on GM; I don't think it's worth taking the risk at the current price, and just a week or two ago they were at $19.xx, so I think it will drop back down a little bit.

With Scottrade, you can buy penny stocks, but there's a 1/2% commission on the total order. That's why I only buy ~$500-1000 in penny stocks. I think it helps keep my penny stock trading in check, so that I'm not tempted to risk $10k on a penny stock.

I was watching RFID technology, but I still haven't decided to risk investing in those companies yet.

I've heard that Ameritrade can sometimes get a little better price (by a penny or two) for market orders than Scottrade could, but such a benefit would only really come into play when you're moving lots of money consistently,i.e. $10k at a time. Besides that, I haven't heard much about Ameritrade, except that they cost more.

I like bringing up stocks and picking other people's brains, because it can give me a few more stocks to keep an eye on.

[subi-crosser]

Originally Posted by SVXMAN2001

I've considered penny stocks but i think given my level of knowledge i'll probably stick to strong stocks. Mostly looking at strong companies and looking into investing over the long term. I am really discouraged from "day trading" due to the capital gain tax rate of 15%!! I've also begun taking into consideration of dividend yields. I really think the wireless technology is going to take off in the upcoming years and have research NASDAQ: IDCC which has a lot of promise but no dividend yield. I had an interesting conversation the subject of dividend yields and they felt that organizations that do not offer dividend yields generally attract investors who are looking to cash out, that idea kinda scares me. On that note i began looking at GM and they're offering a $1.00 dividend trading around $22. Now we all know that GM is experiencing a whole lot of troubling issues but over the long term i think they will improve.

Oh and Scottrade I guess you can't buy pennystocks. Do others here use Ameritrade? Other than the cost what are the advantages/disadvantages of each?

haha i am just thinking of the stuff we've posted...who would have thought we would be talking about this in a car forum!!!

We have been here before when a member asked what we would do with new found wealth. I use a broker, I read the fine print on the cheap trade co's, and get a lot of value for the dollar using a broker that isn't greedy!!

Well, cell one hit my 'price' today, so I no longer have any!! I have the 'other' stuff too, but enjoy playing with a couple grand on the pennies!!!

I have actually done better on the pennies than I have anywhere else. I set a price on a stock I am watching, and have an automated 'buy order' in place. And I set a 'sell' price on the stuff I have.. I don't have to go past my e-mail to see if I bought or sold..

I'm up over 700% on one, and only had to hold it for 1 1/2 year!!
The only stock I have ever lost on was FORD, but I only lost $20., and it was a wild ride!!
I only do about 5 trades per year. so I have to make them count!!

Jerry

[SSSVX]

Originally Posted by SVXMAN2001

I am really discouraged from "day trading" due to the capital gain tax rate of 15%!!

What do you mean? Where did you find out from this?

How much you're looking at to take out in this Market?

[SSSVX]

Originally Posted by Red SVX 92

buy penny stocks

What are the good 'penny stocks' here worth to look at?

Do you have a Margin Account? Does your total capital gain in a year get more than 100%? What kind of strategies you're using? Fundamental or Technical?

[SVXMAN2001]

sssvx, when i was talking about the tax on stocks i was referring to when you buy stocks and sell them within a year they are taxed at 15% vs. holding it a year or more where the rate is 5%. I am pretty sure this is accurate, if not please let me know!

[SVXMAN2001]

its been asked a few times, but i am only in the beginning stages of investing and have only a few thousand to play around with. I think investing in blue chips with decent dividend yields would be my best bet at this point. Thoughts? Should i touch upon penny stocks? Where are they traded? From what i've heard its all paper based.

[Red SVX 92]

Originally Posted by SSSVX

What are the good 'penny stocks' here worth to look at?

Do you have a Margin Account? Does your total capital gain in a year get more than 100%? What kind of strategies you're using? Fundamental or Technical?

Don't ask me, I just lost my shirt on one of them over the last week.

I bought Delphi (DPHIQ) high, and it's been dropping. Just bad, stupid timing. However, I believe it's got a decent chance of paying off in the long-term, because I can't see them going bankrupt, just mad that I didn't get it at a lower price.

I bought Dana (DCNAQ) after they filed Chapter 11. Got in halfway, puckered up when my stocks lost half their value in a day, then sold near the current high for a ~40% gain. I'd hedged my bets and bought a bit more stock, now that the wild ride seems to be over, just in case they break out in the long-term, but it seems to be fluctuating again, in a bad way.

I'm watching Vaxgen (VXGN) like a hawk. I missed out on a 25% gain over the last month because I was playing a couple other safer stocks, and they recently got in the news again, sending their stock price tumbling back down. I'm thinking of getting in this time, because I see this company as currently undervalued. I'm just waiting to sell another one of my stocks so I can push it in there.

In penny stocks, I look for volume and volatility. Not for everyone, but I want a stock that I can make a quick buck on, and that I can sell easily. Many of the penny stocks have such low volume that it's hard to sell them for the price you want, when you want. I want the volatility so that I don't have to wait a week for a point increase.

I don't have a margin account. I'm not that confident with my trading yet, and the risks I take with the stocks I'm trading right now would mean I could easily hit forced selloff positions if (and when) the stock swings too wildly. Plus, you can't use margin for penny stocks.

EDIT: I just noticed that a Motley Fool recommendation, Intuitive Surgical (ISRG), hit 120 today. When it was at 90, they were saying it would easily bounce back to 110+. And whaddya know, it hit 120 in less than three weeks. I'm pretty impressed with that prediction, because I personally assumed that stock had nowhere to go but down, and that 90 was its proper value. Keep an eye out on that stock.

[Red SVX 92]

Originally Posted by SVXMAN2001

its been asked a few times, but i am only in the beginning stages of investing and have only a few thousand to play around with. I think investing in blue chips with decent dividend yields would be my best bet at this point. Thoughts? Should i touch upon penny stocks? Where are they traded? From what i've heard its all paper based.

The main boards I know of are Pink Sheets and Bulletin board (?). You can trade them at most brokers, I thought. Two of my current stocks are Pink Sheets, and I got them through Scottrade.

[SSSVX]

Originally Posted by SVXMAN2001

sssvx, when i was talking about the tax on stocks i was referring to when you buy stocks and sell them within a year they are taxed at 15% vs. holding it a year or more where the rate is 5%. I am pretty sure this is accurate, if not please let me know!

I was with a local bank broker for 8 mths. I was doing pretty good...I converted my capital to 300% in 3 mths' speculation. I have been with Scottrade almost 3 yrs... No, I ain't sure about this tax thing on what you said. Do you have any link I can read? Could it be different state has different rule? I thought it's like depending on if your capital gain or loss in the end...when you gonna file your taxes... I just left the work for the tax preparer ...

[SSSVX]

Originally Posted by Red SVX 92

Don't ask me, I just lost my shirt on one of them over the last week.

Thanks for your sharings man. No one is gonna to win every time, period.

I used to day tradings alot!! I daytraded few hundred thousands value of stocks a day. I think that was crazy. I was using alot of leverages in my margin account...it's risky. Perhaps I was/am a brave guy. Leverage can seriously kill you!!! Or it can be your friend as well. I was killed by few times badly. Recently I don't touch stocks a lot....I find stocks are boring to me. I look for something more exciting....maybe more exciting = more profits = more risk involved ...are they always equal?

I think that some people they do well in stocks is they have better patience and good principles.... etc