a reply to: nOraKat
Personally, I like dividends... and re-enroll them to the investment. Currently, one of my favorites is Arlington Asset Investment Corp. It hold a
current 18.66% dividend, it trades for $12 a share, and it's in the low range of the 52 week average. The stock could drop $2.00 over the year, and
you'd still earn at least something. The goal is to finish the year out with upwards of 30%.
There's a few others I like too, Toyota Motors being one, but its really about the journey of learning to save what we can now, to allow for us to buy
what we want later. Without savings, it becomes a game of it being a necessity to save all we can as we spend... moving the savings back to the 1%.
In the end, it's about learning to dance in the rain... not about trying to doge rain drops.
For me, I started with a few shares, learned that it's like learning a new language, and it's a very handy language to know as the economy operates on
derivatives. Everyone is hedging bets... but there needs to be at least a few bucks in the game to learn. The learning of it all became more
interesting than I first thought, and it naturally caused me to devote more energy and earnings towards it.
Any advice here that gets someone adding at least a dollar towards savings is good advice. Patience is the key. There's a Tony Robbins interview on
the 1st couple pages on here... explaining how a man who never made more than 14k a year, saved 20% of his earnings because someone convinced him that
we'd all make do if taxes were increased 20%... it would suck, would we would adapt. That settled in with that man enough to commit to 20% savings,
and the savings grew to $70,000,000. Just amazing what the power of compounding interest provides.
This stuff has become a hobby of mine, and I would love to hear about people stories getting into investing in their selves. A Eutopia of this
generation, in my mind, is one where poor people learn the tricks of the rich trade and match their wits and turn around and robin hood it right back
to the people.
Speaking of Robin Hood... download the Robin Hood app. I'd strongly advise to trade their if possible. They offer FREE trades, where most brokers
charge around $7 per trade. 0% fees means you can buy singles shares at a time, little by little, and not have to worry about it costing $7-15 to buy
and sell a trade.
Last week for instance, I had a penny stock that had an impulse day... it jumped up 38% in one day. I got rid of them... let the impulse wave on the
chart consolidate, and I bought back in when it settled down. The loss limits are set automatically. Say there's a 1,000 shares at $8.00 held. Say
it jumps up to $10.00 for a day. It's not going to stay there, but there was a decent jump in percentage of what it was bought for. Ok, so I would
cash that out at $10.00 and wait. When that consolidates, say it comes back down to $8.00 again. Well, I get right back in with the full $10,000.
You can then buy 1,250 shares with that $10,000, and be right where you were just days prior. The stock can then go down 20% over the next few months
when (not if), and there's still nothing to worry about. As long as the gains surpass the tax ramifications of the gain and the fees, I swing trade
like explained. There's been a few occasions where the money increased upwards of 200-300% in a single day of magic. Getting just 2 or 3 days of
trading like that change change someone's savings scenario pretty damn quickly once the language is learned. A few of those days per year also allow
for quite a number of bad guesses at certain stocks... the end goal being to not get emotional about it, and learning to be settled when things get
tense, much like race care drivers race at 200 MPH, but barely have an elevated heart rate... they are comfy in the arena is all.
I still always advise people to invest in themselves before anything else...
There's also stock market simulators and competitions that allow you to trade virtual currency against the live market like
www.wallstreetsurvivor.com. They are actually more fun than a lot of non educational games I find!
edit on 4-12-2017 by ttobban because: added comment
edit on 4-12-2017 by ttobban because: spelling