Trading Stock/Investing

#26      

IntenselyOrange

I
IntenselyOrange
pizzaman said:
Here's a little horror story for young investors. I have a nephew who is 39 years old now. His best friend went all in during the dot com bubble. Phil had amassed over $900,000 in investments that grew exponentially from a modest start. He was going to get out when his investments reached one million. Well, they never got there and Phil lost almost everything hanging on hoping for a rebound. He was in his 20's, single and he took a chance. He's doing fine now but he still regrets not getting out when everyone told him to cash it in.
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Not getting shell-shocked by losses is key. I've had some pretty big losses. Overall, I'm up however. It's a difficult mentality to take. Knowing you will lose loads of money in short periods of time, but gain over the long run.
 
#28      

ILLINI IN NE

ILLINI IN NE
Omaha,Ne.
ILLINI IN NE
529 plans can have another tax advantage besides tax free growth. In Nebraska you can invest $10,000 a year in a 529 and and deduct it from your state AGI for tax purposes. This saves me almost $700 a year in state income tax. Don't know the rules for Illinois.

Another thing I do is start IRAs for my kids. They all have started detassling corn at age 12 and have worked part time jobs over summers. Whatever they make in earned income I will put into a Roth IRA with my money. Their IRAs are in brokerage accounts that allow me to trade stocks for them. I have 4 kids and the youngest is a college sophmore and has 50K in his Roth and the other 3 have much more. Once the acct. gets to 50K I stop contributing. Its a great way to get a jump on their retirement savings. With pensions dissapearing most retirements will be self funded, IRA, 401K, etc..
 
#29      

DaytonIllini

D
Guest
DaytonIllini
Leonardite said:
I'm officially in the stock market
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Welcome!

ILLINI IN NE said:
529 plans can have another tax advantage besides tax free growth. In Nebraska you can invest $10,000 a year in a 529 and and deduct it from your state AGI for tax purposes. This saves me almost $700 a year in state income tax. Don't know the rules for Illinois.

Another thing I do is start IRAs for my kids. They all have started detassling corn at age 12 and have worked part time jobs over summers. Whatever they make in earned income I will put into a Roth IRA with my money. Their IRAs are in brokerage accounts that allow me to trade stocks for them. I have 4 kids and the youngest is a college sophmore and has 50K in his Roth and the other 3 have much more. Once the acct. gets to 50K I stop contributing. Its a great way to get a jump on their retirement savings. With pensions dissapearing most retirements will be self funded, IRA, 401K, etc..
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Smart.
 
#30      

Buck Turgidson

Buck Turgidson
Massachusetts
Buck Turgidson
zoggle101 said:
Talked to the wife about the 529, and the money market account.

Of course she knew already what was going to happen with this. She started the money market account with the idea that we would let it grow over the next year into 3K with our additional contributions to it over that time. When it hits 3k than we are going to put it into an IRA.

I talked to her about the savings we would have instead of the private school idea to invest more into a 529 plan. She didn't like the idea of the 529 because "what if he doesn't go to college(acted like I shot myself in the head, she laughed)". I responded with "we're not wasting money on a private school education if you feel that way". She agreed, but let me know she plans on moving us to Rochester, IL before he enrolls in Kindergarten because her best friend from work lives out there with a child a couple months young who will be our sons best friends. I guess she believes that will happen when you have no idea if these kids will like each other in 10-15 years. Women???

I told her we don't want him buying a corvette at 18 with all the money we are going to try to save/investe for him which couldn't happen with the 529 plan. She still responded with the idea that he might not go to college which if you knew her isn't even an option for this kid, but wants the money to be free for him to do as he pleases. I think we'll still start a 529 plan, but the wife said that in the IRA you can install an optioin for part of it to be for school.
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529s are a great way to go. If you have multiple kids and expect one or more to go to college, you can set up a 529 for each, BUT use any of those funds for anyone in the immediate family taking post-HS education. They're a bit more flexible than you might expect. At least this is the case in CT.

And as someone else mentioned you may get a state income tax right-off if you invest in your own states 529 (you can also invest in another state's 529 - at one point Iowa was very good).

Do a little research on them and you may find a plan that you like that has good flexibility.
 
#31      

eMitch

eMitch
Quincy, IL
eMitch
zoggle101 said:
Talked to the wife about the 529, and the money market account.

Of course she knew already what was going to happen with this. She started the money market account with the idea that we would let it grow over the next year into 3K with our additional contributions to it over that time. When it hits 3k than we are going to put it into an IRA.

I talked to her about the savings we would have instead of the private school idea to invest more into a 529 plan. She didn't like the idea of the 529 because "what if he doesn't go to college(acted like I shot myself in the head, she laughed)". I responded with "we're not wasting money on a private school education if you feel that way". She agreed, but let me know she plans on moving us to Rochester, IL before he enrolls in Kindergarten because her best friend from work lives out there with a child a couple months young who will be our sons best friends. I guess she believes that will happen when you have no idea if these kids will like each other in 10-15 years. Women???

I told her we don't want him buying a corvette at 18 with all the money we are going to try to save/investe for him which couldn't happen with the 529 plan. She still responded with the idea that he might not go to college which if you knew her isn't even an option for this kid, but wants the money to be free for him to do as he pleases. I think we'll still start a 529 plan, but the wife said that in the IRA you can install an optioin for part of it to be for school.
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Check out UPromise for funding a 529 account. You can get a MasterCard and 1% of your purchases will go into a 529. Certain online vendors will get you 5 - 10%. Also check out Fidelity.com. They have an American Express card that puts 2% of your purchases into a 529.

I opened both when my now 5 yo was born and we haven't put anything into them and today we already have a little over 4,500 in them.

Also check into the Illinois 529 plan. It lets you lock into current rates for college if your kid goes to an Illinois school.
 
#32      

zoggle101

Z
zoggle101
A lot of great advice guys. I never thought about the credit card thing. I like to use cash, but if its going to accumulate into a nice savings it will be something to look into you if I decide to go with a 529.

I talked to the wife again, and she asked why I keep saying IRA. She was looking into a vanguard mutual fund/bond index where you can build in a college savings plan as well. I'm sure the 529 plan has the chance for the most growth though. It will be a process figuring this out.
 
#34      

Magoo2

M
Springfield, IL
Magoo2
zoggle101 said:
A lot of great advice guys. I never thought about the credit card thing. I like to use cash, but if its going to accumulate into a nice savings it will be something to look into you if I decide to go with a 529.

I talked to the wife again, and she asked why I keep saying IRA. She was looking into a vanguard mutual fund/bond index where you can build in a college savings plan as well. I'm sure the 529 plan has the chance for the most growth though. It will be a process figuring this out.
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Kids go to Rochester now. Pretty decent school system. Every student has a Chromebook they take back and forth to school. Pretty incredible what they have them do with them.

Fortunately, my older boys have 529's started for them from their grandfather. My youngest has IRA's opened up by his other grandfather, so the wife and I are ahead of the game and have our parents to thank for that. They are seriously too good to us and their grandkids.
 
#35      

nwebb1

N
nwebb1
jhoops99 said:
I'm currently long PHOT, TRTC, SPLI, FSPM, and ERBB. Used to be in FITX but im out. Be careful when a company sends out a fluff PR every couple days. FITX also has a lot of restricted shares becoming available starting end of this month, lots of other Canadian grow ops are working towards becoming public, and momentum is trending down. This has been a fun sector to invest/trade in, but be forewarned: lots of pumping and dumping going on. SEC is also looking for frauds: see PTOG

I'd suggest looking at SPLI and ERBB right now. SPLI has better revenue then MCIG and then compare the two's pps. ERBB is going to be placing their vending machines in CO in the next week or two which should push the price to .05+ Only invest with what you can afford to lose and use your head not your heart. @wolfofweedst and @invest420 are good follows on twitter and where I have got my best tips in the sector. Im up 120% ytd, spp 500 is down .5%. Others are up obscene amounts as well, but remember the party wont last forever. WA state will open up recreational use in June and the trend is strongly moving towards acceptance all over the country, so those are two positive, upcoming catalysts which is why I'm in that sector.

Keep in mind their are also plenty of other safer, more conservative investments out there.
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Good call on ERBB. That made me some money this week.
 
#36      

Leonardite

Leonardite
Terre Haute, IN
Leonardite
nwebb1 said:
Good call on ERBB. That made me some money this week.
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Hope you didn't sell out on ERBB. I sold out today and wish I hadn't. Still has a lot of growth potential over the next week.

I'm way in on $MINE. Kind of expecting a dip tomorrow, but long-term I think it's solid.

My portfolio is up 31% in 6 days.
 
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#37      

jhoops99

J
jhoops99
Leonardite said:
Hope you didn't sell out on ERBB. I sold out today and wish I hadn't. Still has a lot of growth potential over the next week.

I'm way in on $MINE. Kind of expecting a dip tomorrow, but long-term I think it's solid.

My portfolio is up 31% in 6 days.
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Im still holding ERBB, SPLI, TRTC, PHOT, FSPM and added MINE, FROZ since last post. I would agree with the MINE dip, last quarter doesnt look good at all on paper. Haven't decided about adding more MINE (currently have 125k shares). ERBB, SPLI and TRTC is what I'm trying to concentrate on long term right now. Lots of growth still to come in this sector and these appear to be the cream of the crop to me.
 
#38      

Leonardite

Leonardite
Terre Haute, IN
Leonardite
jhoops99 said:
Im still holding ERBB, SPLI, TRTC, PHOT, FSPM and added MINE, FROZ since last post. I would agree with the MINE dip, last quarter doesnt look good at all on paper. Haven't decided about adding more MINE (currently have 125k shares). ERBB, SPLI and TRTC is what I'm trying to concentrate on long term right now. Lots of growth still to come in this sector and these appear to be the cream of the crop to me.
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You're in for a treat tomorrow with ERBB. Really wishing I didn't sell out.
 
#39      

danielb927

danielb927
Orange Krush Class of 2013
Rochester, MN
danielb927
I get the appeal of short term gains, but isn't the stuff you guys are talking about already built into the price of a stock by the traders who are doing this stuff basically 24/7?
 
#40      

DaytonIllini

D
Guest
DaytonIllini
Playing penny stocks (those under a $1/share) is a sucker's bet. Almost guaranteed to lead to bankruptcy.
 
#42      

gibb52

G
gibb52
Penny stocks are what you invest in for entertainment after you've built a strong portfolio.
 
#43      

Illini In

I
Guest
Illini In
DaytonIllini said:
Playing penny stocks (those under a $1/share) is a sucker's bet. Almost guaranteed to lead to bankruptcy.
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Stock market up 140% from Q1 2009 ALL because of QE is the last place I put my money. Market levitates like Linda Blair/Exorcist while U.S. economy is in dire shape, unless you believe fedgov numbers, of course.

If you don't hold it you don't have it. Counter party risk anybody ? Bail ins anybody?

images


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http://sirratatap.com/2012/01/28/29-countries-dumping-us-dollar-in-bilateral-trades/

They don't want dollar denominated assets. And their circle enlarges. Are you gonna be the bag holder?
 
#44      

DaytonIllini

D
Guest
DaytonIllini
Telling people what you wouldn't invest in is hardly advice. Had you put your money in a mattress or in a savings account you would have lost a lot of buying power in the past 5 years.
 
#46      

DaytonIllini

D
Guest
DaytonIllini
What do you think is a good investment?
 
#50      

DaytonIllini

D
Guest
DaytonIllini
DaytonIllini said:
I invest 90% of my portfolio in ETF's. VOO, VTI, VT, PTY, GLD (for 90%) of that. The other 10% of my ETF money I invest in a sector ETF (whichever sector seems to be right at the time).

The other 10% I invest in individual stocks of companies that I have some long term confidence in. Mostly dividend stocks that have not performed well the past year (CAT, DE, MMM, T, SI) vs. the market as a whole plus a few biotech/pharma stocks that have been big for me like GILD, PCYC (painful Friday for both - I am not adding to either position at these levels).

I always keep 10-20% in cash as both a rainy day fund and as an investment pool. If I want to buy Ford but am not in a hurry I wait for something silly to happen around the world. Say a Crimean invasion. Ford drops 3%, I buy it. What does Crimea have to do with Ford after all. That fund allowed me to be buying near the lows when most people were dumping stock. Never go all in.

You probably should not invest in individual stocks until you have a largish position in the market as a whole. Once you do. Diversify!! Have a list that you want to buy and when something happens to bring the market down, buy those stocks on sale. And most of all be willing to admit you're wrong if you buy something that behaves badly. If you are down 20% ask yourself if you'd buy it at this level. If not, sell it.
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Oh baby. Love me some Gilead!

Investors were stunned Tuesday by the quarterly report from Gilead Sciences (GILD), the company whose $1,000-a-day drug has made it the toast of the biotech sector.

Investors knew that Gilead, after giving its hepatitis C drug Sovaldi such a whopping price tag, would rack up some serious sales. But the earnings report was still so surprising that after-hours trading of the stock was briefly halted Tuesday afternoon. Gilead's website showing the report was so overwhelmed that it couldn't load.

"Holy Sovaldi!" wrote one Twitter user. "That's the way to beat."
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Mama Dayton is pretty happy right about now.

http://www.cbsnews.com/news/gileads-blockbuster-sales-leave-investors-stunned/

Now, if only PCYC can come through with Ibrutinib. Baby wants a new pair of shoes.