These are just some answers to some questions frequently asked to me.
<< <<1. do you intend to be a "trader" or "investor"?
Can I be both? Can you please explain the diffrence? I think I want to be a trader. A
trader is someone who holds onto the stock short term right? Sorry I dont know the
diffrence.
<<<< 2. what is your "time horizon" (i.e. when do you expect to need to use the
money you
are planning to buy stocks with)?
Well the money Im making now is going to be for future use in the market. I have no
particular need to purchase anything now. These $300 is all experimental so it gets me
more comfortable with the market. If I am able to put my other $1,000 in then it will be
starting to save up for college. My brother is going to college next year and my parents
aren't financially ready so they are investing in the market.
3. what is your "risk tolerance"? are you looking for excitement (works both ways) or
safety?
Well same as before. Whether I get to put another thousand in or not. If its only $300
im willing to go for the risk, but if its with my thousand it will need to be a safe
investment.
4. how much time do you have to follow your investments? (how many hours per week
are you prepared to devote to keeping up with companies you are interested in?)
I have been keeping track of stocks for quite awhile. I have around 2-5 hours per night
of internet access. With during that time I make webpages and follow stocks.
5. have you ruled out a mutual fund instead of wanting to pick your own stocks, and if
so, what is your reason?
I ruled out Mutual funds because with $300 the earning will be very little I think. I will
probably put my other $3,000 into mutual funds because my Dad thinks that they are
pretty secure to invest all my money in them.
6. will you have additional $ coming along to buy stocks with besides what you
currently have in cd's?
I make $50 a week on a good week(From webpage making). Sometimes more and
sometimes less. I will probably put $35 of it into stocks but I am not going to send it to
ETRADE until it all accumulates up to a few hundred.
7. what annual growth rate (vs the 6%/year on your cd's) do you want to achieve, on
average, over time?
Well using stocks I plan to make hopefully %200/yr. I know this might sound like alot
but not the way im looking at it. Because if I buy a penny stock that is very low and I
get 1,000 shares and it goes up .04 I still make some money. Then I sell and invest in
another stock that is low. Wait till that goes up .04, then sell that. I wont make alot off
of these because I will also have top cover $40 commision(buying/selling) But I will
make around $10-$20. After a few times of doing that I will make around $100. This
letting me buy more shares, and making more money off every trade. Around $15-$25
and I will move up slowly.
8. which industries or companies are you most interested in? least interested?
I started off following medical companies, such as QGLY, and PLC. Then I moved to
technology and Telecommunication. Those are my two favorite kinds. The kinds I
dislike the most I think are mining. I watched a stock in that go up alot, but I didn't
understand much of what it was talking about.
Thank you alot. I started a subject: $5 and under. Called make just $300 into much
more! check it out, and thanks. |
