Tech Stocks

[MrSparkle001]

Originally Posted by Ruien [You must be logged in to view images. Log in or Register.]

I'll be a bit counter to the crowd but personally I don't invest by just "buying some tech company". The market is going to price stocks according to the known information, so even if a company is going to increase in business over time, that doesn't mean that that level of growth isn't already factored into the stock price. In other words, you can bet on a company getting more business and making more money, be right, and still lose money on the stock (or vice-versa).

I think it's okay to be bullish on an economy as a whole (I've been long Chinese Yuan since 2007) but for stocks I think long-term risk is quite high unless you really have the data and time needed to see what other professionals don't. I think there's actually less risk in shorter-term trades, and I'm a technical investor. In other words, it's not about what you trade, it's about how you trade. You don't invest in a stock, you invest in the skills required to correctly read and interpret the market. In this respect it's just like any other career, and you'll spend at least 5 years acquiring those skills.

If you're really interested, I'd recommend the following books:
* Trading with DiNapoli Levels (Joe DiNapoli)
* Dynamic Trading (Robert Miner)
* The Master Swing Trader (Alan Farley)

I have a quick introduction on my website here if you're interested. This is not intended to be spam - there's a lot of good information and trading examples there.

Investing well takes a lot of time, expect to put in over 2000 hours before you get the hang of it. Otherwise you're just taking shots in the dark.

Edit: The above might seem like a cop-out answer to your question, but it's not. For example, the right answer would not be "buy Amazon" - it would be more like "buy Amazon if the price drops into a fibonacci support confluence level on weekly bars shortly after getting a stochastic sell signal while a particular MACD indicator is still strong, and then closes up on the week with a reversal bar or reversal confirmation signal. Then place an initial protective stop loss at the weekly low and take 50% profits at the 62% retracement of that weekly move to lock in profit in the trade and reduce risk. Manage the trade with a 3-week trailing stop over the next month but be ready to take profits if the stochastic goes back into a buy or the weekly MACD goes negative".

Trading is a whole different beast and requires a minimum $25k balance (may have changed). Very good skills to learn but if you just have some extra money you're looking to invest I don't think you have to go that deep.

[Nips]

Originally Posted by MrSparkle001 [You must be logged in to view images. Log in or Register.]

Trading is a whole different beast and requires a minimum $25k balance (may have changed). Very good skills to learn but if you just have some extra money you're looking to invest I don't think you have to go that deep.

You have to go that deep (and much deeper), if you actually want to have an edge in the market... otherwise you're just gambling (which is fine too, but its important not to fool yourself)

[MrSparkle001]

Originally Posted by Nips [You must be logged in to view images. Log in or Register.]

You have to go that deep (and much deeper), if you actually want to have an edge in the market... otherwise you're just gambling (which is fine too, but its important not to fool yourself)

For long term investing? I don't mean trading.

[Nips]

Originally Posted by MrSparkle001 [You must be logged in to view images. Log in or Register.]

For long term investing? I don't mean trading.

Long term trading is easier but both are massively losing games for the average retail trader.. not to discourage [You must be logged in to view images. Log in or Register.]

[Ruien]

Originally Posted by MrSparkle001 [You must be logged in to view images. Log in or Register.]

Trading is a whole different beast and requires a minimum $25k balance (may have changed). Very good skills to learn but if you just have some extra money you're looking to invest I don't think you have to go that deep.

No, that's wrong.

Investing is a percentages game. It takes just as much work to make 20% on $10,000 as it does to make 20% on $2,000,000 . If you only have $25,000 to invest then you're not going to be motivated to put in the time required to have an edge. If you're investing $2,000,000 then you will.

I have a business partner who works as a hedge fund analyst in Hong Kong, and does purely long-term investments (not trading). He puts in just as much research and work into each investment as a good trader does. The best investments actually are a combination of these methods by a group of specialists.

If you just have $40,000, put it into a pool with other investors' money and let professionals manage it for you. Either that, or learn to use options and only buy OTM married puts with long-term options so you have a specific maximum risk (say, 15%) regardless of where the stock goes.

Originally Posted by Langrisserx [You must be logged in to view images. Log in or Register.]

ladies and gentlenoobs, i give you, the banker. world can end anytime now.

Actually I'm technically an electrical engineer and linux system administrator (remember Ruien's Guide to EQ on Linux), but investing is a passion - thanks.

[Langrisserx]

Lets just put it out there and be real.

You are playing a game that is run by cheaters. There is no winning, because it is a fixed game with insider trading and corruption.

This is a fact.

Be aspergers and know everything about the system, but realize it is a shit system made for rich people to get richer by tricking poor stupid people.

also, any hot tips? $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$

[YendorLootmonkey]

And then risk losing it all because you had your investments street name registered instead of using direct registration, the bank folds, and you realize you never really owned the stock certificates.

This is the only right answer:

If you're concerned with 10+ year investments it's all about PMs, gold is criminally low now. And I don't mean paper gold, physically holding it in your hand and then reporting it lost in a boating accident so the government can't seize it like they did in 1933.

At the current rate of spending/printing money, the USD will eventually be worthless, the world will switch to a new global currency because our inflation is destroying other countries' economies. Stock up on those pre-1965 90% silver quarters while your fiat currency is still worth something! [You must be logged in to view images. Log in or Register.]

Other than that, natural gas infrastructure ( http://online.wsj.com/news/articles/...22192910235090 ), near-field communications chipmakers for mobile phone financial transactions ( http://www.networkworld.com/news/201...fc-266138.html ), and the drone manufacturing industry after the FAA sets rules for drone use in 2015 ( http://online.wsj.com/news/articles/...14501943739028 ) might be promising over the next 5-10 years.

[Swish]

Originally Posted by YendorLootmonkey [You must be logged in to view images. Log in or Register.]

At the current rate of spending/printing money, the USD will eventually be worthless, the world will switch to a new global currency because our inflation is destroying other countries' economies. Stock up on those pre-1965 90% silver quarters while your fiat currency is still worth something! [You must be logged in to view images. Log in or Register.]

Gold/silver will be solid investments there's no doubt. But if investing make sure you get PHYSICAL gold/silver... not some piece of paper that says you own it, its well known that there isn't enough physical gold/silver in circulation to cover what people own on paper.

[Treats]

25k minimum balance only applies if you are Day Trading due to margin.

Don't think you do that though so that shouldn't apply.

One thing to consider when making the investment is the taxes you are going to have to pay. If you hold the investment for under one year and have a positive return, standard income tax rules apply (as if it were a job) depending on your tax bracket. Investments over one year have a much lower tax.

Honestly, as a few others have said here, in order to make consistent positive returns you need to be well versed in the markets or end up just just taking shots in the dark.

Figure out first what kind of time frame you are looking at holding it.

If it is a smaller amount and very very long term, I would recommend placing the money into a Roth IRA and having an investment company manage it for you. Roth IRA's are tax free. However, there is a maximum of $5 or $6k per year as long as you make that amount at your regular job.