My Plan for $10k

Discussion in 'Strategy Development' started by Absolute, Mar 2, 2006.

  1. Absolute


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

    Pick 10 stocks on and buy $1,000 of each
    Always have 10 stocks in my portfolio
    100% Fundamental trading

    RULE: Each stock is assigned one slot in my 10 slot portfolio... each slot can be changed only once per month (should I make 2 months?)... this means I can buy and sell for a maximum of 20 trades per month

    service: using FolioFN for $200 a year that gives me 200 trades a month

    background: Created a 1 year buy and hold fund in 2003 that's returned to date 25% per year (only 14% so far this year)

    Run a similarly ruled 10 stock fund on marketocracy for last 4 months getting me 30% a year


    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?
  2. How much experience do you have trading stocks in this manner?
  3. WD40


  4. 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.
  5. 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
  6. RXIS


    it would depend on how competent of a stock picker you are. I've been picking(learning) stocks for almost a decade and I got real lucky with my picks within the past couple of years. hell if i had just invested i'd have more than doubled my money. Too bad I blew it trying to day trade for a living.
  7. Star


    Since you asked what do you guys think and not what do us girls think :( I will answer you anyway and tell you to put your $10k in the highest interest bearing CD you can find.

    The stock market is so close to crashing it isn't funny.
  8. rcj


    Hey...c'mon .....

    "guys" = boys and girl-ladies. Gender neutral, no?

    So, why a crash?? Maybe a big correction??
  9. Put it into Canadian Oil and Coal Trust and Mineral Trust(All yield near 10% or more with monthly Div. Payments)


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

    When Sh#t hits the fan in the middle east (It's coming) IRAN, SYRIA, IRAQ, NIGERIA, VENEZUELA to name a few oil producing nations in turmoil...

    Canada will be the only energy supplier who you don't have to worry about..

    Been Dripping FDG, PTF, PWI for 2 years now with a 150+% return in the 3...

    Just added DMLP (Minerals Trust), HTE (75% oil, 25%gas), in the past Month....

    If you really want your 10K to go up consider this strongly...Example is a 9 yr return not 5 year..forgot to change it
  10. Absolute


    I apologize.... I meant you guys and gals :D
    #10     Mar 3, 2006