Advice for new kid in town, please

Discussion in 'Professional Trading' started by Random.Nick, May 7, 2007.

  1. Hi,

    In the past 10 years I did some conservative stock trading on a retirement account, mostly with bank stocks. It was not really trading, it was long term investment with a few trades. I can't complain about the return, but I was mostly just lucky.

    I have now 40K to invest in a more active way. I have become more interested in investing and now low trading charges are available, making buying/selling on a regular basis a viable option.

    I am willing to put great deal of effort and time educating myself.

    I am more comfortable with large caps, not too keen on penny stocks.

    Is there any market segment, which is more suitable for beginners than others?

    Should I focus on one or two specific resources (gold, uranium, etc.) or sector, in order to be able to more focused and better educated, informed on that particular narrow segment?

    Is it realistic goal to try to achive an average $200-400 gain per week with 40K startup capital?

    How much can 40K be diversified?
    Would I be better off to invest in 1-2-4 or 8 items?

    How important would be to "play" with a practice account and what would be the best place to keep the money before starting up for real?

    I know that all these questions are either quite broad or trivial for seasoned investors, but I can't help asking them.

    Your advice, opinion is highly appreciated.