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Posted by on January 16, 2007, 11:52 am
Have opened an account with Scottrade. Already have a Target
Retirement 2045 Roth with Vanguard. Looking to play around with $1K.
New to stock trading. Any suggestions for the upcoming year?
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Posted by Ignoramus16071 on January 16, 2007, 12:41 pm
On Tue, 16 Jan 2007 10:52:54 -0600, daniel.yaocheng.lee@gmail.com
> Have opened an account with Scottrade. Already have a Target
> Retirement 2045 Roth with Vanguard. Looking to play around with $1K.
> New to stock trading. Any suggestions for the upcoming year?
>
It is relatively expensive to actively trade with $1,000. Assuming
that commissions are 9.99 per trade, just buying and selling a stock
costs 2% of the amount. I would buy only one stock or one mutual fund
and would not try to "diversify" that $1,000. When you save another
$1,000, you can buy something else.
i
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Posted by zxcvbob on January 16, 2007, 1:28 pm
daniel.yaocheng.lee@gmail.com wrote:
> Have opened an account with Scottrade. Already have a Target
> Retirement 2045 Roth with Vanguard. Looking to play around with $1K.
> New to stock trading. Any suggestions for the upcoming year?
>
You've said both "invest" and "trading", and the two are not the same
thing at all.
If you really mean investing, buy DIA or SPY or QQQQ and leave it alone.
Or do lots of research and pick just one stock that you like and buy
it and leave it alone. Buying an exchange traded index fund (DIA, SPY,
QQQQ, etc) gives you diversification. Buying just one stock gives you
volatility, which can be good or bad depending on which way it goes for you.
If you want to trade (gamble), pick a highly volatile stock that goes up
and down several percent per day for no apparent reason (like maybe
China Life Insurance, NYSE:LFC) and try to predict (guess) the ups and
downs. IMO, if you are not overly compulsive there is nothing wrong
with gambling, just be honest with yourself about what you are doing,
stay away from buying on margin, and try to learn some lessons along the
way. Even if you guess right, you will find that $7 per transaction
eats up a lot of your winnings on a $1000 stake, but that's not a bad
lesson to learn. Good luck!
Best regards,
Bob
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Posted by Sgt.Sausage on January 16, 2007, 1:53 pm
> Have opened an account with Scottrade. Already have a Target
> Retirement 2045 Roth with Vanguard. Looking to play around with $1K.
> New to stock trading. Any suggestions for the upcoming year?
Put it in a low cost "index fund" of your choice and ...
....
....
....
Forget about it for the next 40 years.
The folks who " play around " tend to be a lot worse off after a
few decades than the folks who buy, hold, and forget about it.
.
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Posted by woessner@gmail.com on January 16, 2007, 2:21 pm
daniel.yaocheng.lee@gmail.com wrote:
> Have opened an account with Scottrade. Already have a Target
> Retirement 2045 Roth with Vanguard. Looking to play around with $1K.
> New to stock trading. Any suggestions for the upcoming year?
I'm going to assume this is what Kramer calls "mad money". That's
money that's left over after you've paid all your bills and set aside
money for retirement. If not, I highly suggest you put this money to
use elsewhere. That being said...
I've been eyeing Motorola (MOT) lately. They've just gone through a 3
month slide down 30%. Whether they've hit rock bottom is anybody's
guess. But I think that Motorola is a solid company and firmly believe
that they'll recover from this. This could be a good opportunity to
buy some Motorola stock on the cheap.
I don't think this would be a stock to "play around" with, though. I
would look at this more as a buy-and-hold stock. Motorola isn't going
to double your money overnight. Chances are very slim it will double
your money this year. But I think it's a good buy for the long haul.
Speaking of Kramer, I think he just badmouthed Motorola. Even more
reason to buy it. :-)
--Bill
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