daughter asks for advice

Discussion in 'Stocks' started by oldtime, Mar 14, 2013.

  1. Sold half my oxy at 90.91 towards the close to book the 17% gain
     
    #81     May 3, 2013
  2. Wrog thread obviously, sorry about that on my phone
     
    #82     May 3, 2013
  3. masonde99

    masonde99

    I would recommend honestly not to use this site for information or advice, 99 percent of the people here don't work in the investment industry as proven investors. The majority have a desire to be stock investors or work for "prop firms" which are for low-key investors that can't get hired in traditional firms where the potential for income is far higher.

    I would recommend she read the intelligent investor, securties analysis and Common Stocks and Uncommon Profits. Also textbooks on finance, textbooks on accounting and textbooks on economics. Also I would recommend she have a level focus, most of naive investors want to invest in blue-chips or penny stocks or simply follow trends like investing in apple. The stock market is enormous and you need to have the skills and analytic capabilties to analyze stocks ad-hoc. You can't follow frivolous advice from forums, the last point of information, the news or from newsletter or stock picker sites like from jim cramer or zacks.

    She'll need to find a focus, be it macro or micro investing, growth or value or some combination that focuses on areas of competence she can build on and improve upon. People on this site say "99 percent of investors don't make it", 99 percent of investors in their contigent don't make it when they make filmsy analysis that largely focuses on major stocks,who think a stock is a good pick simply because it's cheap, on simply logic, who think investing is some quick-rich scheme, who want to mimic warren buffet and think value investing is a golden pathway to making money.

    I would recommend that she interns and not at a small firm but either a hedge fund(there are over 13,000), a private equity firm or for a reputable bank or insurance company. I recommend she start contacting her professors and others who can provide advice and that if it's something she wants to do, to put a full effort into it. Just know that realistically the best she can do is beat the s&p 500 and that means depending on the year an average of 10-20 percent returns. There is no way she is going to become rich for you or her investing her own capital and that focus along with low capital will most likely diminsh any money she has.

    Anyway I wish your daughter the the best of luck.
     
    #83     May 15, 2013
  4. like the man said, "On et, just assume everyone you are talking to is a loser."

    I put it to her and laid out a plan

    she said, "I just want to make $250 a week extra"

    never talk to her about trading anymore

    we talk about cooking and gardening

    too bad, because she has everything it takes to be a good trader
     
    #84     May 15, 2013
  5. back when there was something called an SF Stock Exchange, one of the brokers in our office got a job out there as a clerk.

    Back then my three daughters were just teenagers or pre teenagers, but I had to get into how girls were different than boys.

    She knew I was heavy into long cattle

    and at just the right time she flew back to Indiana and asked if I would bankroll her at 25k, 50/50

    that was a very good decision, because the next year cattle weren't doing shit and the stock market was

    In less than 3 years she bought me out

    hard to know about those girls
     
    #85     May 15, 2013
  6. the only advice I gave her was, "Whatever you do, don't try to be smart like me, just do what everybody else is doing."
     
    #86     May 15, 2013