Investing 101

[TySnyder]

For the next year or so I am planning on investing about 75% of my income(~$2000) a month. I would like to keep it medium to low-risk, but get the highest return rate possible. My time frame is somewhat short term. EI. No bonds longer than 1 year.

I would also like to learn as much as I can about investing while doing this to see how I would like it as a possible career.

What do you recomment I invest in and what kind of returns should I expect. Your assistance would be greatly appreciated.

PS. Yes I have been reading up online but would like to see what ATOT'ers have to say. I know some of you are daytraders.

 

[minendo]

Invest it all in penny stocks.

 

[BigJ]

Originally posted by: minendo
Invest it all in penny stocks.

100% Guaranteed.

 

[TySnyder]

Originally posted by: minendo
Invest it all in penny stocks.

lol, I actually looked into that and I think I could do better at the 2/4 tables in vegas. I did say med-low risk

 

[BigJ]

Originally posted by: TySnyder

Originally posted by: minendo
Invest it all in penny stocks.

lol, I actually looked into that and I think I could do better at the 2/4 tables in vegas. I did say med-low risk

I consider medium risk lighting money on fire and seeing if it burns.

 

[vi edit]

There's really no *great* choice if you want low risk, high returns, and liquidity.

Your best bet would be short term (6-12 month) CD's or possibly T-Bills. Interest rate is pretty crappy though.

You could look at a money market acct as well...but yields in those aren't any better than an ING account.

 

[iversonyin]

low risk, high return....impossible

everything that comes with higher return require risk

example: robbing a bank is very risky....but you get high return.....

I recommand How to Make Money in Stocks by Oneil as a starter. And start reading Yahoo Finance and WSJ to familiarize yourself with the environment.

 

[UncleWai]

I would just go through all the saving account hooplas and get their signing bonus and then put there for a year to get the 4.x%.

 

[Syringer]

http://www.magicformulainvesting.com/

Read about it in Smart Money magazine..they had nothing but good to say about it.

 

[TySnyder]

Originally posted by: vi_edit
There's really no *great* choice if you want low risk, high returns, and liquidity.

Your best bet would be short term (6-12 month) CD's or possibly T-Bills. Interest rate is pretty crappy though.

You could look at a money market acct as well...but yields in those aren't any better than an ING account.

So what about day trading? What is my minimum capital needed so I can handle the market volatility?

 

[BigJ]

Originally posted by: TySnyder

Originally posted by: vi_edit
There's really no *great* choice if you want low risk, high returns, and liquidity.

Your best bet would be short term (6-12 month) CD's or possibly T-Bills. Interest rate is pretty crappy though.

You could look at a money market acct as well...but yields in those aren't any better than an ING account.

So what about day trading? What is my minimum capital needed so I can handle the market volatility?

Medium to low risk and you want to day trade?

 

[vi edit]

Originally posted by: TySnyder

Originally posted by: vi_edit
There's really no *great* choice if you want low risk, high returns, and liquidity.

Your best bet would be short term (6-12 month) CD's or possibly T-Bills. Interest rate is pretty crappy though.

You could look at a money market acct as well...but yields in those aren't any better than an ING account.

So what about day trading? What is my minimum capital needed so I can handle the market volatility?

LOL.

If you are a *true* day trader, you need to have some serious cash/equity laying around. If you get flagged as a pattern day trader, some Brokers require you to have a minimum of $25,000 in equity in your acct.

Day trading is the absolute inverse of low risk.

 

[TySnyder]

Originally posted by: BigJ

Originally posted by: TySnyder

Originally posted by: vi_edit
There's really no *great* choice if you want low risk, high returns, and liquidity.

Your best bet would be short term (6-12 month) CD's or possibly T-Bills. Interest rate is pretty crappy though.

You could look at a money market acct as well...but yields in those aren't any better than an ING account.

So what about day trading? What is my minimum capital needed so I can handle the market volatility?

Medium to low risk and you want to day trade?

I am used to making a living playing poker...I know about high risk...

I have an addictive personality that I am trying to work on.

I am exploring my options though. As I said I am considering a career in finance, but I don't want to jump out of a building as a broker one day...

 

[upsciLLion]

Invest in cocaine. Middleman profits = :thumbsup::thumbsup::thumbsup:

 

[BigJ]

Originally posted by: TySnyder

Originally posted by: BigJ

Originally posted by: TySnyder

Originally posted by: vi_edit
There's really no *great* choice if you want low risk, high returns, and liquidity.

Your best bet would be short term (6-12 month) CD's or possibly T-Bills. Interest rate is pretty crappy though.

You could look at a money market acct as well...but yields in those aren't any better than an ING account.

So what about day trading? What is my minimum capital needed so I can handle the market volatility?

Medium to low risk and you want to day trade?

I am used to making a living playing poker...I know about high risk...

I have an addictive personality that I am trying to work on.

I am exploring my options though. As I said I am considering a career in finance, but I don't want to jump out of a building as a broker one day...

Do yourself a favor and stick to poker until you learn much more about the market.

 

[TySnyder]

Originally posted by: vi_edit

Originally posted by: TySnyder

Originally posted by: vi_edit
There's really no *great* choice if you want low risk, high returns, and liquidity.

Your best bet would be short term (6-12 month) CD's or possibly T-Bills. Interest rate is pretty crappy though.

You could look at a money market acct as well...but yields in those aren't any better than an ING account.

So what about day trading? What is my minimum capital needed so I can handle the market volatility?

LOL.

If you are a *true* day trader, you need to have some serious cash/equity laying around. If you get flagged as a pattern day trader, some Brokers require you to have a minimum of $25,000 in equity in your acct.

Day trading is the absolute inverse of low risk.

I have paid many expensive "lessons" in my past, so I would prefer to learn my lessons with less risk until I get a hold of things, hence the desire for low-med risk investments while I learn how the market works.

 

[vi edit]

Originally posted by: TySnyder

Originally posted by: BigJ

Originally posted by: TySnyder

Originally posted by: vi_edit
There's really no *great* choice if you want low risk, high returns, and liquidity.

Your best bet would be short term (6-12 month) CD's or possibly T-Bills. Interest rate is pretty crappy though.

You could look at a money market acct as well...but yields in those aren't any better than an ING account.

So what about day trading? What is my minimum capital needed so I can handle the market volatility?

Medium to low risk and you want to day trade?

I am used to making a living playing poker...I know about high risk...

I have an addictive personality that I am trying to work on.

I am exploring my options though. As I said I am considering a career in finance, but I don't want to jump out of a building as a broker one day...

Typically you won't do it as a broker. You'll do it as a Day Trader who gets sucker punched with a six digit margin call.

 

[iversonyin]

Originally posted by: TySnyder

Originally posted by: vi_edit
There's really no *great* choice if you want low risk, high returns, and liquidity.

Your best bet would be short term (6-12 month) CD's or possibly T-Bills. Interest rate is pretty crappy though.

You could look at a money market acct as well...but yields in those aren't any better than an ING account.

So what about day trading? What is my minimum capital needed so I can handle the market volatility?

I'm a daytrader, you can PM me. I'll let you know what you getting youself into.

Here what I recommand you doing:

25% risk free asset - 1 year U.S. Treasuries
25% International fund (Japan /Europe preferred)
25% in SPY (Tracks U.S. S&P 500- you basically invest the U.S stock market as a whole)
25% in commodity based fund (oil, gold...etc.)

50% of your asset would be expose to U.S. economy and other 50% would not be. This seem pretty optimal for your objective.

 

[TySnyder]

For those of you posting useful information so far, thank you. I'm soaking it up like a sponge :beer:

 

[JS80]

Originally posted by: iversonyin

Originally posted by: TySnyder

Originally posted by: vi_edit
There's really no *great* choice if you want low risk, high returns, and liquidity.

Your best bet would be short term (6-12 month) CD's or possibly T-Bills. Interest rate is pretty crappy though.

You could look at a money market acct as well...but yields in those aren't any better than an ING account.

So what about day trading? What is my minimum capital needed so I can handle the market volatility?

I'm a daytrader, you can PM me. I'll let you know what you getting youself into.

Here what I recommand you doing:

25% risk free asset - 1 year U.S. Treasuries
25% International fund (Japan /Europe preferred)
25% in SPY (Tracks U.S. S&P 500- you basically invest the U.S stock market as a whole)
25% in commodity based fund (oil, gold...etc.)

50% of your asset would be expose to U.S. economy and other 50% would not be. This seem pretty optimal for your objective.

US Treasuries = treasurydirect.gov
japan etf = EWJ
I would do russell 2k etf = IWM
commodity fund = DBC and GLD (DBC has 35% crude oil, 20% heating oil, 12.5% aluminum, 10% gold, and 11.25% each in corn and wheat)

Maybe you should sit out until March though. Iran might get pwned by Israel (march is "point of no return" for Iran making nukes).

 

[George P Burdell]

http://www.amazon.com/gp/product/0060555661/

 

[iversonyin]

Originally posted by: JS80

Originally posted by: iversonyin

Originally posted by: TySnyder

Originally posted by: vi_edit
There's really no *great* choice if you want low risk, high returns, and liquidity.

Your best bet would be short term (6-12 month) CD's or possibly T-Bills. Interest rate is pretty crappy though.

You could look at a money market acct as well...but yields in those aren't any better than an ING account.

So what about day trading? What is my minimum capital needed so I can handle the market volatility?

I'm a daytrader, you can PM me. I'll let you know what you getting youself into.

Here what I recommand you doing:

25% risk free asset - 1 year U.S. Treasuries
25% International fund (Japan /Europe preferred)
25% in SPY (Tracks U.S. S&P 500- you basically invest the U.S stock market as a whole)
25% in commodity based fund (oil, gold...etc.)

50% of your asset would be expose to U.S. economy and other 50% would not be. This seem pretty optimal for your objective.

US Treasuries = treasurydirect.gov
japan etf = EWJ
I would do russell 2k etf = IWM
commodity fund = DBC and GLD (DBC has 35% crude oil, 20% heating oil, 12.5% aluminum, 10% gold, and 11.25% each in corn and wheat)

Maybe you should sit out until March though. Iran might get pwned by Israel (march is "point of no return" for Iran making nukes).

I agree, spend a month or 2 to do some research and crapload of reading. The market is a little choppy right now

 

[Descartes]

Originally posted by: iversonyin

Originally posted by: JS80

Originally posted by: iversonyin

Originally posted by: TySnyder

Originally posted by: vi_edit
There's really no *great* choice if you want low risk, high returns, and liquidity.

Your best bet would be short term (6-12 month) CD's or possibly T-Bills. Interest rate is pretty crappy though.

You could look at a money market acct as well...but yields in those aren't any better than an ING account.

So what about day trading? What is my minimum capital needed so I can handle the market volatility?

I'm a daytrader, you can PM me. I'll let you know what you getting youself into.

Here what I recommand you doing:

25% risk free asset - 1 year U.S. Treasuries
25% International fund (Japan /Europe preferred)
25% in SPY (Tracks U.S. S&P 500- you basically invest the U.S stock market as a whole)
25% in commodity based fund (oil, gold...etc.)

50% of your asset would be expose to U.S. economy and other 50% would not be. This seem pretty optimal for your objective.

US Treasuries = treasurydirect.gov
japan etf = EWJ
I would do russell 2k etf = IWM
commodity fund = DBC and GLD (DBC has 35% crude oil, 20% heating oil, 12.5% aluminum, 10% gold, and 11.25% each in corn and wheat)

Maybe you should sit out until March though. Iran might get pwned by Israel (march is "point of no return" for Iran making nukes).

I agree, spend a month or 2 to do some research and crapload of reading. The market is a little choppy right now

2 months? I'd say 2 years, personally. No one is going to learn anything you can put to use in the markets in 2 months unless you're completely excluding experience.

 

[kranky]

If you want to daytrade, don't bother trying to learn anything first. Just jump right in, lose your money, and get it over with.

Do you want to invest, or do you want to gamble? They are two different things. Investing means long-term, asset allocation, mutual funds, etc. If you want excitement, you'll find it very boring.

Daytrading is certainly exciting, just like gambling. Because it IS gambling.

The reason most investors don't do well is they won't do homework. There are proven methods, but it takes time to learn. It takes time for the strategies to pay off. But that's not exciting enough for everyone, so people do stupid things and lose money.

You say you want to do your homework, and that's a great idea. But to say in the same breath you want to day trade, shows you have a lot of homework ahead.

 

[Biggerhammer]

Where does one get this homework? I know next to nothing about investing (and thus am just feeding my ING account) but I would like to learn how to invest wisely.

If it matters, I would prefer low to mid risk levels. Naturally I'd like the highest possible gain within these risk levels. I plan to invest for long term (10-20 years) with a fairly modest bit to invest ($2-3K for now). I already have a bit in an IRA and a bit in my 401K.

Where would I lok to learn more about intelligent investment skills/strategies?