Financial Investor forums?

[snoopdan 5,000+ posts]

Cool, cool...
1) Do you want something you "fool with" everyday/hour/minute or something set it and forget it, just glance at it quarterly.

2) Suppose you didn't make it that long, what are your final wishes with the monies?

3) What are you interested in (besides car audio) do you have any social causes you enjoy, religious causes, interest in certain countries, industries? Not from an investor point of view, but from a person. (Once you adopt an investors point of view, you cannot see the world from a regular person's point of view...only the few greatest investors could marry the two perspectives)

1) something I can fool with daily

2) no idea what to do with money if I croak. I have no family, no kids...I barely have a dog.

3) No social or religious interests...as far as industries im sort of a physics & semiconductor geek and understand the technolgies fairly well. Id expect this would be helpful in picking tech / biotech stocks.

 

[Flipx99 5,000+ posts]

1) something I can fool with daily2) no idea what to do with money if I croak. I have no family, no kids...I barely have a dog.

3) No social or religious interests...as far as industries im sort of a physics & semiconductor geek and understand the technolgies fairly well. Id expect this would be helpful in picking tech / biotech stocks.

I would divide it into 3 parts

1/3 goes to the etf vti

1/3 to the managed fund (well etrade is now blocked, will provide more info later) that specializes in worldwide technology stocks.

1/3 to options trading or penny stocks.

Since the money is basically throw-away in your opinion, you can trade the 1/3, 1/3 will be in something you are interested in, and 1/3

I personally like to trade options. It is high risk, yet fun. If you aren't religious, you will become religious. //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif

If you are interested in trading options, let me know.

 

[snoopdan 5,000+ posts]

I would divide it into 3 parts
1/3 goes to the etf vti

1/3 to the managed fund (well etrade is now blocked, will provide more info later) that specializes in worldwide technology stocks.

1/3 to options trading or penny stocks.

Since the money is basically throw-away in your opinion, you can trade the 1/3, 1/3 will be in something you are interested in, and 1/3

I personally like to trade options. It is high risk, yet fun. If you aren't religious, you will become religious. //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif

If you are interested in trading options, let me know.

yeah im sorta leaning towards trading options. I get bored at work, so gotta keep my mind and my money doing something. And no, im not religious....but im considering writing a bible //content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif

id love to get started in something, even if its n00bish and low level at the moment. Gotta work up to something, right?

 

[Flipx99 5,000+ posts]

yeah im sorta leaning towards trading options. I get bored at work, so gotta keep my mind and my money doing something. And no, im not religious....but im considering writing a bible //content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif
id love to get started in something, even if its n00bish and low level at the moment. Gotta work up to something, right?

The options trading is a great way to use your time. I am pretty sure you are steeped enough in the calculus unless you want to trade by the gut.

If you sell puts and the stock drops, you will pray. And pray hard you don't get execrised.

Do you know anything at all about trading options? There are many excellent books that give you the basics, but they only help with the jargon and hows and whys. You don't really learn anything until you start doing it and develop a strategy that works for you. The best piece of advice I can give you is to not pay too much for risk.

 

[snoopdan 5,000+ posts]

The options trading is a great way to use your time. I am pretty sure you are steeped enough in the calculus unless you want to trade by the gut.
If you sell puts and the stock drops, you will pray. And pray hard you don't get execrised.

Do you know anything at all about trading options? There are many excellent books that give you the basics, but they only help with the jargon and hows and whys. You don't really learn anything until you start doing it and develop a strategy that works for you. The best piece of advice I can give you is to not pay too much for risk.

nope, i know nothing of trading options.

 

[Flipx99 5,000+ posts]

nope, i know nothing of trading options.

It's pretty simple.

An option is a contract for the right, but not the obligation, to buy a specific amount of shares for a certain price before expiration

Here is some definiftions:

expiry: The expiration date of the option. For practical purposes its the 3rd Friday of every month.

call: The right to buy

put: the right to sell

strike price: the price at which the contract becomes in the money

Simple Stategy

If you think the price will go up:

Buy a call

sell a put

ot both

If you think the price will go down

sell a call

buy a put

or both

If you think the price will stay the same

sell a call

sell a put

or both

Here is an example:

Lowe's stock price is currently 30.51 and I think the real price should be $33.00

What I can do is buy a Jul 30.00 call.

Currently, thje option priced at 55.

This price comes from here:

51 cents of intrinsic value, 4 cents of time value/risk premium.

The price of this option will never be less than the value between the current stock price and the strike price. In this example, the price of the option wouldn't be .40.

So you think that .55 is a fair price because you have the price of the stock at $33.00.

So you buy a call. They come in 100 lots. YOU HAVE TO BUY 100 at a time

So you buy 100@.55, thus you are in $55. This option will expire 20 July.

Here's what can happen BEFORE EXPIRATION:

***The price increases to 33.00, as you calculated. The option is now worth 3.00. ( The distance from the current price less the strike price)

3.00 * 100 = $300. Your $55 investment is now worth $300 in less than 8 days.

***The price goes to 30.75

.75 your investment is now worth $75, or $20 in profit.

***The price stays right around 30.55. You sell at a loss due to transaction costs

***The price drops below 30.55. You sell at a loss due to worthless security.

If you understand this, I can go into puts. But they work exactly opposit.

 

[snoopdan 5,000+ posts]

If you understand this, I can go into puts. But they work exactly opposit.

i dig //content.invisioncic.com/y282845/emoticons/fro.gif.c695f1f814b01c4ad99fe7f8cccadd29.gif

 

[Flipx99 5,000+ posts]

In effect, it is not wise to buy deep out of the money options hoping for a miracle. If you get that miracle you can make some very significant returns. But more often than not, you will be selling at a loss

 

[Flipx99 5,000+ posts]

Sharebuilder.com is a great place because they do not have high requirements.

Places like e-trade have too many requirements and it takes nearly a week to tranfer funds. sharebuilder is overnight

 

[snoopdan 5,000+ posts]

ok, gotcha.. Ive been nosing around pink sheets, have ya played with those much?

 

[Flipx99 5,000+ posts]

ok, gotcha.. Ive been nosing around pink sheets, have ya played with those much?

No. I am not a big fan of tech (using the technicals of stock pricing, not technologu/innovation) trading with them. Plus there is a liquidity issue. Options have guarenteed liquidity through a clearing house that monitors and enforces spreads "The difference between bid and ask" I don't think they do.

In low quantity trading in thin markets, the spread + transaction costs = death

 

[Flipx99 5,000+ posts]

Or you can invest 1/2 in vti

set up an account on sharebuilder...I will help get you started with a few small (1-300) transactions

 

[snoopdan 5,000+ posts]

Or you can invest 1/2 in vti
set up an account on sharebuilder...I will help get you started with a few small (1-300) transactions

ok i'll head that way now. Im not doing much at work today anyways //content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif

 

[Flipx99 5,000+ posts]

Let me know what you decide...

I

If you got the time (in years), you can make a killing if the market corrects