wassup guys - Forex or Stock market?

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LemonAden

LemonAden

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Jan 29, 2007
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Ive been so freekin busy i have not had time to post in a few weeks (legal shit been dealin with) so i hope everyone is well and cool, etc.

Someone in my family got a large sum of money for an injury that happened to them. They told me that they are fucking around with penny stocks, etc.. I freeked out and said no no no, but this person will not listen to me.

I know Jon told me once that hedge funds are the way to go, but he did not get that much money..

So basically i want to help him not waste his money. He wants to invest it and make some money back and hes going to do the penny stocks shit no matter what i tell him.

So my question is, do you guys do forex or penny stock shit, and if you do, which programs do you use for it.

Forex and penny stocks is what he is interested in and i dont want to see him lose his money so all suggestions (real ones) will be kik ass. Thanks much!

A
 


this is gambling and the $ is going to be gone. plain and simple that is what will happen.

also, you won't be investing in any good hedge funds unless you have tens and tens of millions, even then you probably won't be able to get in on a good hedge fund, no matter what.
 
Forex is a VERY LIQUID market. I put $40 in one day and took out $300 a few hours later, but this was PURE LUCK!

Stock markets.. tell him to try IPO's and use www.IPOHome.com - you'll find some good money makers. I recall one that I did that nearly took 800% up that I picked (my dumb ass didn't put the money up, though).

Hope the link helps, IPOHome alone has made my friends a lot of money.


Edit: Why not just put in a high yield savings account? www.FNBODirect.com - 6% FDIC-Insured savings account with a 1 million dollar limit per account. Hello! :)
 
There's no get rich methods in the stock, hedge fund, penny stock, etc market that aren't about the same odds as gambling the money.

If they don't know what they are doing, find a low cost index mutual fund, put the money in there and forget about it until they do know what's going on.

Or join an investment club and gain experience that way.

good luck
 
I'd recommend options trading, although I havnt really tried it myself, still waiting on my reg info.

With options you can do "straddles", where you are betting that the stock will move. You don't even have to say up or down, just bet on it moving. And its pretty cheap, and the returns you can make are massive. If a stock moves a lot, you can turn $100s worth of options into tens of thousands of dollars.

Im really annoyed i didnt buy some options before the blackstone ipo, could have made a lot of money.
 
Bofu2U said:
I put $40 in one day and took out $300 a few hours later, but this was PURE LUCK!
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Um. Doesnt forex move money in the >$10,000 range? You cant just put a few bucks in forex and take it out..
 
Good info guys..

Right now he is buying penny stocks.. I dont know what will happen but i told him to do forex because its easier i thougth.

Isnt there a website that lets you trade forex,etc? Tells you what to do and when to do it?

i want to get him away from the stocks because it is a gamble and i dont want to see him lose his $$
 
where did you open your forex accounts? How do you track it all?

I know there is software for it, ive seen it on infomercials, etc.
 
LemonAden said:
where did you open your forex accounts? How do you track it all?

I know there is software for it, ive seen it on infomercials, etc.
Click to expand...

I signed up for a Forex.com practice account, and they give you the software for trades for free. Not too bad of software, auto buy & auto sell at certain prices, etc. Helps with not taking massive losses.

Tracking is within the software, keeps track of open orders, previous orders, etc.

PS - If you want me to refer you to my account rep he can get you/your friend started, let me know.
 
The person in your family is taking a huge risk right now in the market. Especially in penny stocks. That is a highly specialize area that you can make money off of luck but if you don't know what you are doing you will crash. Most penny stocks are otc (over the counter) so they don't have to report their earnings and business state as thorough as other companies. There are web sites that follow them pretty regularly but nothing like a big exchange keeping tabs for me.

If they really want to take a risk but in a less violatile area than penny stocks why don't they do small caps. At least it's still cheap but the information is still reliable.

If they really want to do penny stocks they can do the spam trick but again that is also highly risky and unless practiced can still lose them money. I read a lot about Forex but have not actually traded in it. So I can't really give you a personal viewpoint on it.
 
He's going to lose all of his money if he keeps it up. Penny stocks are manipulated (ever seen those spam emails you get?)

Tell him to put it in a s&p 500 index fund and go back to work.

He could also buy a business with it, but anything is better than penny stocks.
 
I wonder why you and everyone else hasn't just thought of the simple plan of having him bankroll your online endeavors such as affiliate marketing. Last I heard, you were doing pretty well.
 
Best investment advice I ever read was in a book by Scott Adams, the author of Dilbert. It went something like:

  • First own your own home outright,
  • then save up enough to last a three months / 6 months / a year off work,
  • then get health insurance,
  • then pay off all outstanding debts,
  • then put aside money for your children's education.
After all that you can think about investments.

Your friend sounds more like a gambler, and he's got a lot of company in this world. Greed is one of the seven deadly sins for a reason; it burns you up.
 
Lemon,

Forex takes some knowledge to make any money. I'd stay away from it. If you had to choose between the two evils, I'd go with penny stocks because at least those are real (or usually scam) companies. If you can talk him into moving up from penny stocks into companies that are $1+ per share, that's a huge increase in quality of company over the 5 cent piece of shit, reverse merger, illiquid scam companies.
 
thanks for the bday wish.. heh

He did want to invest in my 'online endeavors' and the recording of my album, but i said no. I will not and never have accepted money from my family for anything.

I feel bad about it all. The penny stock bullshit, and some other stock in israel at some place where the geologists think there is goig to be a huge oil stike.,, so he bought 700 stocks of it cheap.

If they strike oil, he will be rich, if not, hes is out of a lot of $$, thank god the stocks are under $10 bux right now.

Forex is something i personally have always wanted to learn. If i could learn it, i could teach him.
 
i think you were thinking about forex made easy... the infomercials make it sound like its candy

if you're serious about forex read everything.. literally.. on babypips.com
i printed out a huge stack and read every single bit of it. u'l realize its not as easy as it looks, especially when you're dealing with high leverages, if it folds you're fucked just as fast as you are in luck if it rises...
 
blackthought286 said:
Most penny stocks are otc (over the counter) so they don't have to report their earnings and business state as thorough as other companies.
Click to expand...

Blackthought is absolutely correct. Pink sheets are not regulated by the SEC the same way stocks on the NYSE or NASDAQ are. This makes them ripe with fraud, spamming, and controlled prices. Penny stocks are one hundred percent gambling. You need to realize there is a big difference between being an educated investor who takes calculated risks for profit, and someone who gambles.

Also, every singles Forex strategy or program your relative has been introduced to is a scam. Just look at Forex scam - Wikipedia, the free encyclopedia . Its not like it would have a Wikipedia entry for no reason...

BeerHat said:
Tell him to put it in a s&p 500 index fund and go back to work.
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This is good info Lemon. There are lots of safe and popular index funds and mutual funds that would be great for this money. Sure, you may only see 7% or 8% yearly when I shoot for about 11% with stocks, but you don't have to educate yourself very much and will make vastly more profit than just a bank account. Pretty pretty please PM me if you have any more questions about ETFs. I know a lot more people in my personal life who have gotten extremely wealthy with disciplined value-based investing than anyone who chases get-rich-quick schemes.

tigertom said:
  • First own your own home outright,
  • then pay off all outstanding debts,
After all that you can think about investments.
Click to expand...

These two on your list are dumb. One big financial advantage of owning real estate is the opportunity for leverage. Because you can borrow so much money on a house, the gains are multiplied out. I'm personally a stock market guy, and not a real estate guy, but the cheap borrowed money in RE is great. Also, there are lots of debts that aren't worth paying. Say I had a student loan at 3.7%, and I could get 5% guaranteed in my savings account, it would be wise for me to pay minimums on the loan to compound savings.

Bottom line Lemon: your relative is inexperienced with managing money. There's nothing shameful in it. It's just time to educate yourselves on responsible investing before he does something dumb that he will regret. Get the money in a savings account immediately, and take 6 months to learn how much fun and safe healthy investing can be.
 
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