Hello!
I will beat Chris to this and welcome you to the "Stock Attack" thread. Your statement about the investment approach you are taking considering your experience says allot about you. I mean nothing personal here, but consider my feedback as simply reflecting back what I see coming from you and how you presented to me your interest in the stock market. If you have followed this thread for some time, I think you understand me to be an outspoken sort of individual.
First off, you are not an investor, and you are not a trader. You are definitely a speculator. Second, the current market is not for "newbies". If you still want to pursue profits in the stock market, look at S&P 500 type stocks that are considered a "blue chip" type of quality in terms of security. Third, if I were you, I would get a basic book on investing and perhaps a book on technical analysis and read through the books, come back to SI and ask questions, and paper trade for a period of time before making your first comittment of money to the market. Expect your learning curve to take at least a couple years of focused effort before sinking significant monies like on the order of $200,000 into an approach to the market or system that you have developed for yourself and that you have already proven to be successful.
Lastly, I suspect you have been attracted to speculative action of the stock market since your initial interest is the penny stocks. Speculators that are new to the market do not want to hear that it takes allot of effort and time to learn how to manage the risk in the market and pursue an approach that make profits consistently. They somehow feel this will be for them "easy" to learn or that they have some natural hidden talent waiting to come out and show itself in easy money to be made by them in the market. Either way, they think they are that special someone that can defy the odds and ignore the risks that are there and still be successful in the stock market. Matter of fact, this type of speculator likely has no real idea as to the risk that they are assuming with their participation in the market even though they may understand risks to be there. They do not want to realize that they will be going through a learning curve that can potentially lead them to losses, even great losses. Penny stocks are above the capability of a newbie in order to generate anything that can be remotely considered as consistent profits. Matter of fact, I do not know anyone personally who have tried that has generated consostent profits from penny stocks, even though I am sure there are some that have succeeded. This is what comes to my mind in the classic way you want to initiate yourself to the stock market.
Do yourself a favor. Book a ticket to Las Vegas and enjoy yourself in a casino there. At least you will not be there on the self-made illusion of pursuing an investment. You will be there to gamble, which is what I think your real motivation is all about. Heck, at least the drinks are free there. I think a very careful assessment on what you are about in relationship to money and the pursuit of money is in order here. Only then will you be able to reflect on the risks involved with your pursuit of profits in the stock market, or anything other method you choose to chase the dollar. I simply feel you have no idea as to what you are getting yourself into. Still, we are all here to help on the specifics of what you need to learn.
Bob Graham
PS: I strongly recommend to stay away from those penny stock newsletters. Look to a mutual fund. |
