What other investments do you all have?
- Thread starter ltn1dr
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Um buying penny stocks is a bad idea cause you can't allocate most of your portfolio to then due to risk. Also penny stocks have a tendency of going away, leaving shareholders with nothing . Consider this: Invest 50K in a solid, quality company that goes up 5%. You make 2500 Invest 5K in a penny stock (can't invest more due to risk and illequidity) It goes up 25% make $1250 But the catch is that the penny stock has a greater chance of simply imploding 30-70% in a matter of days or weeks leaving you with a sudden large loss. Also you can't easily reinvest the gains from penny stocks into new penny stocks due to illequidity and risk.
mmmmm ... many millionaires and billionaires will disagree with you that loser focuses on stocks
what are you, 15? idiot.
jackasses like that will only lose you money. do you seriously think most company owners have 100% of their holdings in their own business? even if they are bootstrapping their biz from the ground up, any person with half a brain will still invest in their 401(k) or Roth at the minimum...
Even though I think it is a very smart thing to invest in your business if you are taking it seriously- don't put all your eggs in one basket.
you can build a pretty diversified portfolio w/ $1,000 if you want to open a Roth and want to play it easy just use a Vanguard or Trowe price retirement fund. They are automatically diversified for you, and as you age they gradually become more conservative.
Think trading will make you huge $$$ w/ anything less than $100k to play around with? Factor in commisions (I used to pay 1/3 of a cent per share- and even that adds up), taxes (you aren't getting a nice 15% capital gains tax if you aren't holding long term), and other fees and you aren't looking at an easy path to millions.
don't listen to people who say you can trade your way to xxx% returns- I used to trade for a living, and yes you can - but its a full time job and you won't be doing it quite so easily. 99.99999% of those people are morons who will lose most of their money on their next ill-infored 'trade' that they decided on from a tip from some jerk on a forum.
just as there are thousands of people saying you can make huge bux in affiliate marketing easily - you all know it is possible, but it is not quite so easy to pull off!
Notice I said FOCUS. Noone said investing in some stocks was bad, but if you're FOCUSING on that to be rich, you're on the wrong track.
I'm not saying XXX% returns are impossible. Heck, I averaged 150% return for 3 straight years. It is possible, but not if you focus on the usual mumbo jumbo strategies - buy low, sell high.. blah blah.. diversify blah blah.. no. you wanna make 100%+ return? You gotta take riskes. Screw diversifying. Try buying just a handful of stocks. It's hella risky, but it's the ONLY way you can make HUMONGOUS returns (not 15-20%! That's MEASLY).
But let's do some math.
$1000 in 40 years will turn to $45,000, but that's IF everything goes right, and the market returns 10% annually. So in reality, $1000 will just turn into $14,900. Think about that... You're 25 now. When you're 65, that $1000 will just turn into a measly $14,900. Take into account inflation, and that's peanuts. You waited 40 years.. 40 WHOLE years.. Maybe I'm greedy, but if I had to put $1000 somewhere and had to wait 40 years, I expect to recieve at least $100,000 from that!
Stocks are great for asset diversifications, but if u're focusing on that to be rich, u're on the wrong track
I'm not saying XXX% returns are impossible. Heck, I averaged 150% return for 3 straight years. It is possible, but not if you focus on the usual mumbo jumbo strategies - buy low, sell high.. blah blah.. diversify blah blah.. no. you wanna make 100%+ return? You gotta take riskes. Screw diversifying. Try buying just a handful of stocks. It's hella risky, but it's the ONLY way you can make HUMONGOUS returns (not 15-20%! That's MEASLY).
But let's do some math.
$1000 in 40 years will turn to $45,000, but that's IF everything goes right, and the market returns 10% annually. So in reality, $1000 will just turn into $14,900. Think about that... You're 25 now. When you're 65, that $1000 will just turn into a measly $14,900. Take into account inflation, and that's peanuts. You waited 40 years.. 40 WHOLE years.. Maybe I'm greedy, but if I had to put $1000 somewhere and had to wait 40 years, I expect to recieve at least $100,000 from that!
Stocks are great for asset diversifications, but if u're focusing on that to be rich, u're on the wrong track
As I do agree Real Estate is a great thing to invest in, we all need to take baby steps. I started with a Money Market and Mutual funds. The 401k and later borrowed against it for the purchase of my first house at 25. Good Luck!
oh, and the person with 2 houses and the goal of 6....good for you!
oh, and the person with 2 houses and the goal of 6....good for you!
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