Hi All,
In a nutshell, I have tried and failed miserably with stock trading for the past few years, but I have also learned a lot. In the past, I tried to invest with a measly $1k or $2k (sadly, not a typo) and I got my rear kicked since I wouldn't diversify, I didn't have enough capital, I got too greedy, I wasn't patient enough, and the list goes on. Honestly, they could make me the poster child of what not to do when starting to invest. My most recent schmuckish move was when I bought a $455 call option on AAPL expiring on May 17th at a $305 premium then AAPL missed earnings and the option dipped below $100, at which point I panicked and sold. And wouldn't you know it, now the option as of today is trading around $550. At first I got remorseful and almost had an emotional breakdown (which would have been funny as a Youtube video); but soon thereafter I said to hell with my 1/2 assed trading and investing, I'm not trading again until I can prove to myself I can make money through fantasy trading, and do it consistently. I feel this was the breaking point when I went from my previous moronic trading methods to yearning for something which would actually work.
Thus, on my path to the starting $10k, what's the best way to do it? One option is to just keep it in cash until I reach the $10,000 (which would take a while), or to buy good stocks every $2k or something. If I kept it all in cash until I hit the amount, I would be missing out on potential gains. I also have started using covered calls, which are another way to increase cash income from stocks and know what your profits will be down the road. I know I got a good eye for historically buying good stocks when they're cheap (JPM at $32, SPF at $4, CSX at $20, FDX at $80, etc), but since my past investing methods were flawed, I never made much money off each position. I know on the surface I should consider giving up since I lost money each year, but I also know it's possible to make money investing, and I don't want to be a quitter. I have no problem changing to more of a Buffetonian (not sure if that's a real adjective) buy & hold method and eschew active trading, but I am ready to change my game plans.
Sorry, I got on a tear and talked too much (if only I could find a job to bill to speak by the hour), but I was hoping for advice on how to make money long-term and the best way to handle my portfolio on the path to $10,000! (Hedge fund managers, watch out!)
(I am traveling around now, so I may not respond right away to this post, but I will read the posts) Thanks!
In a nutshell, I have tried and failed miserably with stock trading for the past few years, but I have also learned a lot. In the past, I tried to invest with a measly $1k or $2k (sadly, not a typo) and I got my rear kicked since I wouldn't diversify, I didn't have enough capital, I got too greedy, I wasn't patient enough, and the list goes on. Honestly, they could make me the poster child of what not to do when starting to invest. My most recent schmuckish move was when I bought a $455 call option on AAPL expiring on May 17th at a $305 premium then AAPL missed earnings and the option dipped below $100, at which point I panicked and sold. And wouldn't you know it, now the option as of today is trading around $550. At first I got remorseful and almost had an emotional breakdown (which would have been funny as a Youtube video); but soon thereafter I said to hell with my 1/2 assed trading and investing, I'm not trading again until I can prove to myself I can make money through fantasy trading, and do it consistently. I feel this was the breaking point when I went from my previous moronic trading methods to yearning for something which would actually work.
Thus, on my path to the starting $10k, what's the best way to do it? One option is to just keep it in cash until I reach the $10,000 (which would take a while), or to buy good stocks every $2k or something. If I kept it all in cash until I hit the amount, I would be missing out on potential gains. I also have started using covered calls, which are another way to increase cash income from stocks and know what your profits will be down the road. I know I got a good eye for historically buying good stocks when they're cheap (JPM at $32, SPF at $4, CSX at $20, FDX at $80, etc), but since my past investing methods were flawed, I never made much money off each position. I know on the surface I should consider giving up since I lost money each year, but I also know it's possible to make money investing, and I don't want to be a quitter. I have no problem changing to more of a Buffetonian (not sure if that's a real adjective) buy & hold method and eschew active trading, but I am ready to change my game plans.
Sorry, I got on a tear and talked too much (if only I could find a job to bill to speak by the hour), but I was hoping for advice on how to make money long-term and the best way to handle my portfolio on the path to $10,000! (Hedge fund managers, watch out!)
(I am traveling around now, so I may not respond right away to this post, but I will read the posts) Thanks!
. I never stopped to think about the volatility crunch; at first I was excited that the stock went up, then I looked online and saw the option chain's value had plummeted, I was like, wtf?? Very nice, that would be a good return!