Saturday, October 17, 2009
My Investment Approach ( A place to start for Beginners) 3 ways to make money!
So I am starting to invest in stocks. I been at this for like 3 months now. I have learned so much. I want to first start out by saying how I learned to trade. Then I will talk about my strategies on how I am going to grow my account with a low funded account, which is a problem if your looking for growth.
The book I keep pointing people to is:http://www.amazon.com/Market-Guys-Points-Trading-Success/dp/0470138971
I went up to ATL to see these guys. AJ Monte and Rick Swoope. They work with E-Trade as the head education people for people just getting started. I'm so glad I choose E-Trade!
They are so dedicated to your education and it only makes sense. People who make smart trades are bound to stick around more and place more trades. So anyone reading this and don't know which brokerage firm to pick I 100% recommend E-Trade.
You will need like a week to get use to the interface, which took me a while to figure out. I also have a TD Ameritrade account and I like E-Trades much better. They have live webinars all the time and there such a great thing to learn from.
So threw these 2 things, the book and just singing up for a E-Trade account you should be a pro once you go threw all the education on E-Trade and read that book.
Also on a side note E-Trade has a promotion, when you sign up your first 100 trades are free, or 1 month free. If you start with a low funded account they will charge you 12.99 a trade. If you place more then 30 trades a quarter it goes down to 9.99 a trade and you get power E-Trade Pro, which is great software for charts and everything else.
When I went up to ATL they let me try that software for free just cause I asked to try it out. SO call them up and ask. Also its makes your trades go down to 9.99 when you have it on your account.
The thing I learned is when you start with 1-3k you can't do what they say "diversify"
Think about it. If your allocating 100 or 200 or even 500 per stock unless its a penny stock your growth is going to be so slow its not even going to be worth it. If you only have 1k and you spread it out to diversify your gains are going to be small and your commission prices will eat up your account.
So I present to you 3 strategies.
#1 I know penny stocks may sometimes get a bad rap but where else can you make 100-500% gains in a day? They are risky yes, but don't think like that. Think about getting your account up to 7-10k and then stop investing in them and go to a more longer term/ swing style meaning investment in companys that have been around longer and are safer.
I want to pass along a great website for helping you pick winning penny stocks.
http://pennystockchaser.com/ These guys will alert you to something they think is going to go big. Then you take that info and go do your research on Power E-Trade Pro and look at the charts. You will learn how to read them very well with that book I mentioned. I mean these guys are good, they have had some great picks. With penny stocks as you will find out they can be a very good thing for making money fast.
#2 If you want to avoid penny stocks make one move at a time. What do I mean? I mean that you enter one trade at a time. Allocate all of your money in your trading account into one position at a time. This way you will avoid paying a lot for commission with a lot of trades and you will receive more gains than you would with your 100 or 500 or whatever invested in different stocks at the same time. So make one more at a time.
#3 Options: Options are your key to playing with the big boys with low capital. In short options give you options. You can own stock for a fraction of the cost compared to just buying them normally. But here is the kicker, options are like learning a new language. Once you learn them you will wonder why you never used them to begin with and the reason not to many people use them is cause people don't take the time to learn them cause they are complicated. But every second you spend learning them wil be worth its weight in gold.
Summary: When you first start you will notice that when you place a trade and then sell it you have to wait 3 days for your money to return to your account. So if you enter a trade then sell the same day you have to wait for your funds to come back, so your just waiting around till then. Study during that time. Use penny stocks to get your account up to 10k, if your lucky you may be in one that moves up 2000% percent which I see all the time and then your 1k turned into $20,000. Study and read that book before you start. Sign up for E-Trade and take advantage of there educational products that are all free. Enter 1 trade at a time. This is key at first. As we know now diversification is not the way to go with a low funded account. Before you know it you will be making a living being an investor. Then you will be an options expert and have the skill to start at 0 then build your wealth back up with whats in your head.
The book I keep pointing people to is:http://www.amazon.com/Market-Guys-Points-Trading-Success/dp/0470138971
I went up to ATL to see these guys. AJ Monte and Rick Swoope. They work with E-Trade as the head education people for people just getting started. I'm so glad I choose E-Trade!
They are so dedicated to your education and it only makes sense. People who make smart trades are bound to stick around more and place more trades. So anyone reading this and don't know which brokerage firm to pick I 100% recommend E-Trade.
You will need like a week to get use to the interface, which took me a while to figure out. I also have a TD Ameritrade account and I like E-Trades much better. They have live webinars all the time and there such a great thing to learn from.
So threw these 2 things, the book and just singing up for a E-Trade account you should be a pro once you go threw all the education on E-Trade and read that book.
Also on a side note E-Trade has a promotion, when you sign up your first 100 trades are free, or 1 month free. If you start with a low funded account they will charge you 12.99 a trade. If you place more then 30 trades a quarter it goes down to 9.99 a trade and you get power E-Trade Pro, which is great software for charts and everything else.
When I went up to ATL they let me try that software for free just cause I asked to try it out. SO call them up and ask. Also its makes your trades go down to 9.99 when you have it on your account.
The thing I learned is when you start with 1-3k you can't do what they say "diversify"
Think about it. If your allocating 100 or 200 or even 500 per stock unless its a penny stock your growth is going to be so slow its not even going to be worth it. If you only have 1k and you spread it out to diversify your gains are going to be small and your commission prices will eat up your account.
So I present to you 3 strategies.
#1 I know penny stocks may sometimes get a bad rap but where else can you make 100-500% gains in a day? They are risky yes, but don't think like that. Think about getting your account up to 7-10k and then stop investing in them and go to a more longer term/ swing style meaning investment in companys that have been around longer and are safer.
I want to pass along a great website for helping you pick winning penny stocks.
http://pennystockchaser.com/ These guys will alert you to something they think is going to go big. Then you take that info and go do your research on Power E-Trade Pro and look at the charts. You will learn how to read them very well with that book I mentioned. I mean these guys are good, they have had some great picks. With penny stocks as you will find out they can be a very good thing for making money fast.
#2 If you want to avoid penny stocks make one move at a time. What do I mean? I mean that you enter one trade at a time. Allocate all of your money in your trading account into one position at a time. This way you will avoid paying a lot for commission with a lot of trades and you will receive more gains than you would with your 100 or 500 or whatever invested in different stocks at the same time. So make one more at a time.
#3 Options: Options are your key to playing with the big boys with low capital. In short options give you options. You can own stock for a fraction of the cost compared to just buying them normally. But here is the kicker, options are like learning a new language. Once you learn them you will wonder why you never used them to begin with and the reason not to many people use them is cause people don't take the time to learn them cause they are complicated. But every second you spend learning them wil be worth its weight in gold.
Summary: When you first start you will notice that when you place a trade and then sell it you have to wait 3 days for your money to return to your account. So if you enter a trade then sell the same day you have to wait for your funds to come back, so your just waiting around till then. Study during that time. Use penny stocks to get your account up to 10k, if your lucky you may be in one that moves up 2000% percent which I see all the time and then your 1k turned into $20,000. Study and read that book before you start. Sign up for E-Trade and take advantage of there educational products that are all free. Enter 1 trade at a time. This is key at first. As we know now diversification is not the way to go with a low funded account. Before you know it you will be making a living being an investor. Then you will be an options expert and have the skill to start at 0 then build your wealth back up with whats in your head.
Working towrds my Spirituality Part1
Hey everyone, I imagine I'm writing to myself now. I hope one day this can become a place where we can get together and talk about how were doing it.
So growing up I was raised Christian and although that's how I was raised I always had a thing for Hindu I guess you would call religions.
I liked Buddha cause he was fat and seemed happy and I didn't think he was surrounded by much falsehood. I believe I always had a connection with God and It confused me very young why God says "thou shall have no other God before me" and for a while I just thought that these 2 religions don't seem to go together since Hinduism has so many Gods like Shiva, Rama, Vishnu, Lakshmi and others.
So really I still don't know the answer to that question. We are all one. But where only aloud one God. In Hindu they have many Gods and you call on them for different needs.
The thing I do know is a connection with something that is greater than you I believe is good. I think I have a more of a connection with God aka Jesus Christ then any Hindu God.
I have experimented with them though. I can tell you in meditation I have chanted om namah shivaya in meditation a lot, but not so much recently.
I think that works for calming you down. But I didn't see anything amazing happen in my life
Can Hindu and Christianity work together? Why the separation to begin with. I have heard that Vishnu is the Jesus Christ of the Hindu religion. Maybe he was both, and it happened at the same time.
I'm not saying that I'm torn between selecting one. I consider myself to be a spiritual person. One who chooses his own path that is not effected by karma that you may of got prior to this lifetime which the Hindus are so big on. I believe we all decided and that there are laws to this universe and we attract everything by our powerful mind.
Some things to think about. What religion do you consider yourself? Do you walk a certain path. Be open minded. Do you think everything happens for a reason?
So growing up I was raised Christian and although that's how I was raised I always had a thing for Hindu I guess you would call religions.
I liked Buddha cause he was fat and seemed happy and I didn't think he was surrounded by much falsehood. I believe I always had a connection with God and It confused me very young why God says "thou shall have no other God before me" and for a while I just thought that these 2 religions don't seem to go together since Hinduism has so many Gods like Shiva, Rama, Vishnu, Lakshmi and others.
So really I still don't know the answer to that question. We are all one. But where only aloud one God. In Hindu they have many Gods and you call on them for different needs.
The thing I do know is a connection with something that is greater than you I believe is good. I think I have a more of a connection with God aka Jesus Christ then any Hindu God.
I have experimented with them though. I can tell you in meditation I have chanted om namah shivaya in meditation a lot, but not so much recently.
I think that works for calming you down. But I didn't see anything amazing happen in my life
Can Hindu and Christianity work together? Why the separation to begin with. I have heard that Vishnu is the Jesus Christ of the Hindu religion. Maybe he was both, and it happened at the same time.
I'm not saying that I'm torn between selecting one. I consider myself to be a spiritual person. One who chooses his own path that is not effected by karma that you may of got prior to this lifetime which the Hindus are so big on. I believe we all decided and that there are laws to this universe and we attract everything by our powerful mind.
Some things to think about. What religion do you consider yourself? Do you walk a certain path. Be open minded. Do you think everything happens for a reason?
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