Guys, I just cashed in on an investment and made a handsome amount.... Look to me like i am doing pretty OK in a whole lot of other areas but I want to go into day trading with a small part of my proceeds.... Have read all the books and have good knowledge of the market yet I am weak to make my first buy. I am a little afraid. How do I overcome this
Buy some bonds and do paper trades first. Think well what kind of investor you want to be: daytrader, swing trader, position trader, long term; stock picker or ETF trader; news reactor, technical, fundamental; etc. Right now the market is choppy and not recommended for a novice with a short term time frame. Altough buying now IS recommended for long term investors.
Don't be such a wimp, write some options buddy...and leave em butt naked. If you really want to impress everyone use all the margin you can...YEEEEEEEEEEHAAAAAAAAAAA
That is subjective information and is an opinion. The low P/E's everyone keeps talking about historically assumes many things. First off it assumes a never-ending rate of growth. What happens to these earnings when the consumer closes up his checkbook guys? At current stock prices the P/E's blow out and look expensive right?!? Too many variables. If you assume a GDP rate of 3.5% for the next 5 yrs then yes. If you see a slowdown in spending and a pullback in the raging excesses of emerging markets then now is NOT a good time to invest.
listen to garcia. best thing you could do is some fixed income, and watch. watch everything. set up a demo, and fade extremes, buy lows and sell highs, short highs and buy lows. with the added volatility in the market, chances are you will learn many things. pencil in when where why how, dont forget what. in a book. this way you are not throwing shit at the wall. last thing you want to do is gamble and get lucky. it is one of those times where many things will not make sense. make sure you do witness the discrepency between the bullshit they are talking on tv and what goes on real time. good luck.
do not forget that inflation has been curbed and low balled and continues to be (pulling food and energy from the cards). If we account for inflation the way we did in the 50s, we would be at 9-10%, but it is leaning towards non-volatile goods(that no one purhcases). Invest overseas, since when you do 'invest' you are looking to make profits and not immediate losses. stocks overseas trade at rediculously low multiples and fundementals make much more sense. If you take into account (take away)mortgage equity withdrawal that has been put into the economy (US), we are really at a negative production rate.
Go to Las Vegas and pull those $100 handles on special slot machines. Don't forget to ask for free drinks. It should all work out with a happy ending.
Buy an undervalued value play...PTT and a high running growth stock...CROX and put $25,000 in Tbills.
Buy high valued growth stocks for a long term play? So... in case the stock market does potentially swan dive (not saying yes or no.. in fact im out of the market right now), that way he can lose everything when high P/E's come crumbling down. Great... Or... buy an "undervalued" stock that cant grow in a bull market and "hope" for it to grow towards the end of the bull/possibly the beginning of the bear. Are you being cynical? I know I am not a bear at heart... but this seems logical to me that i'd stay away from both of these ideas.