My Plan for $10k

I'd opt out and trade the "mini FX market".

You can manage risk like trading 100 shares of stock.
Not much on the capital gains side.
Great tool to learn how to trade without getting your face completely ripped off.:D

And if you loose all of your money I can lend you some more capital.:)
 
It seems to me like you are splitting up your funds for the purpose of diversification. While that isn't necessarily a bad thing with larger amounts of money, I think you'll find that commissions will kill you if you are only trading $1K or so per stock (unless you have a very, very cheap broker).

I you are concerned about diversification, why not just trade ETFs?
 
Quote from rcj:

Why not go with someone like IB?? If you make less than
30 trades a mo, then they charge 10 bucs(or less) for the TWS
platform. In your case there would be 1$ commish per trans.
You can use all the common order type w/no extra chg.
Seems to me this would allow you much more flexibilty.

... rj
More...

Absolute, I second RJ's opinion. I was going to write it myself but found his post first.

My father has an IRA account that he had with FolioFN, which is great broker for long-term investing. Great customer service, etc. But if you're trading that often, a broker like Interactive Brokers makes a lot of sense. No "inactivity fees" and commissions through the floor.
 
Quote from 2manywhiners:

go to a broker. you should ask an investment adviser what he/she thinks.

keep in mind what your risk tolerances are, and also that most advisers don't care about you unless you have a six figure account and allow them to buy and sell at will or do it often yourself.

Seriously, if you have experience yourself then why are you asking anyone on here about what you should do with a 10k investment?

If you don't care about losing 10k, why not try letting it all ride on GOOG or some other highly volatile stock? If you care about protecting your 10k, then maybe you should consider diversifying in mutual funds or ETFs.

My opinion, if one of your stock picks starts to tank (take into consideration that using only fundamental analysis as the lone entry guideline and over only a one month period is mostly considered unwise at best) don't hold the loser for several weeks. If you don't want to compound the fees, just sell it and let it sit as cash until the next month.

Best of Luck.
More...

This is terrible advice. The majority of financial advisors/brokers are clueless. I know this b/c I worked at MER and MWD and believe me, the only skill set they care about is sales ability.

And the advice to put it all in one stock like GOOG , only an idiot would do that.

Breaking $10,000 into 10 or so stocks is reasonable..but I think it really comes down to your money/risk management. Have a set of rules and risk/reward ratio and stick to it. In other words, have a plan.
 
Quote from Absolute:

I have about 10k and here's the plan (I want to know what you guys think):

Questions:

With only 10,000 to invest, will I be killed by the $200 a year from foliofn and the capital gains taxes?

Does my plan sound ok?
More...

Enjoy yourself! Get off the sidelines and enjoy your investment experiment. Take the time to study your stocks. Plan your moves to the best of your ability, choose your stocks and fire away. If nothing more than getting the experience of being self-responsible with this portfolio, you'll do fine.

I doubt very seriously you'll have to worry too much about cap gains taxes just yet. If you find that becomes an issue with your current investment capital, you've done quite well. Good Luck and good hunting! :)
 
Quote from $CostAverageMAN:

Put it into Canadian Oil and Coal Trust and Mineral Trust(All yield near 10% or more with monthly Div. Payments)

PTF, HTE, PWI, FDG, DMLP

Just these 5 needed 2K each and DRIP (Dividend Reinvestment) it for 9 yrs...
More...

Hi DCAMan,

A couple of questions after seeing your spreadsheet, as I have no experience in investing in Canadian energy trusts.

--From the calculation in your sheet, the dividend is distributed monthly?

--15% of dividend is automatically withheld to pay to Canadian tax authority and the rest is reinvested in the form of additional shares? Could you take cash payment instead of fractional shares (it is such a headache to calculate the cost basis of the shares bought when accumulated steadily over time on fractional share purchases)?

--It is good for IRA accounts as there are no tax on dividends. So in IRA accounts, is it also tax exempt from Canadian tax authority?

Thanks very much for sharing.

Opra
 
You must log in or register to reply here.
Back
Top