Talking to my guy at edward jones today. I’m 21 years old, and have around 1500 I’d like to put into either a mutual fund or a single company’s shares. At jones my guy who I trust will be charging 50$ for comission where as most companies that do day trading like scott trade and schwab will be charging 7$. What do you guys think about a young kid like me day trading. I’ve always wanted to do something with stocks and I’m excited to try it.
Anyone day trade the indice futures? I’ve been trading the ES and NQ for the past 2 years. It’s great if you’ve got a set plan and are not under capitalized. I’ve blown a couple accounts in the beginning trying to hit a homerun every other day but I think it’s made me a better trader from it and now just take it nice and easy. I’ve been thinking of getting into options too.
[quote]JC529 wrote:
Talking to my guy at edward jones today. I’m 21 years old, and have around 1500 I’d like to put into either a mutual fund or a single company’s shares. At jones my guy who I trust will be charging 50$ for comission where as most companies that do day trading like scott trade and schwab will be charging 7$. What do you guys think about a young kid like me day trading. I’ve always wanted to do something with stocks and I’m excited to try it.[/quote]
Instead of day trading how about this; buy 1500 dollars worth of BP and sit on it for ten years. Dividends reinvested. BP pays a dividend that is currently yielding over 5%. Energy stocks are likely to do well if we enter an inflationary era in a few years. They should do well due to increasing world wide demand for energy. BP is undervalued due to the oil spill thus they are more likely to outperform relative to their piers as the dark cloud slowly lifts from their reputation.
While BP is snow balling due to the reinvested dividends, save like crazy to come up with cash to purchase your next sure fire winner. (hint look at NHI)
[quote]on edge wrote:
BP is undervalued due to the oil spill thus they are more likely to outperform relative to their piers as the dark cloud slowly lifts from their reputation.
[/quote]
It’s been 3 years - hasn’t this already happened?
Man, I would love to get into this kind of stuff. Currently buried in a decent amount of debt but once I free myself of those chains just reading this stuff is exciting albeit way over my head…
[quote]coolnatedawg wrote:
Man, I would love to get into this kind of stuff. Currently buried in a decent amount of debt but once I free myself of those chains just reading this stuff is exciting albeit way over my head…[/quote]
Even socking away a little at a time helps, although my M.O. is not in the higher stakes trading.
My general rule of thumb to accumulate money is to not invest or use any more than me and the wife would spend in a few weeks/1 month of Saturday date nights.
Eventually, this will be my sons college fund. (he’s 9 mos. old)
Several years ago I was making a little money trading. I wouldn’t call it “day trading” because I would buy stuff based on it’s 12 month S&P target price and try to sell it when it hit close to that price. Some times I would sit on a stock for 10-12 months or more before I sold. Sometimes it was a week or two. I started my account with the minimum $500 and got it up to over $4,000 in a couple of years. One of the stocks that I regularly bought and sold was SIRI which moved around on a daily basis like a crack head. I would buy at around $4 or $5 and sell it at $6 or $7. About 5 or 6 years ago I liquidated all of the other stock I owned in that account and bought up all of the shares of SIRI I could at $5 per share. At that time the 12 month S&P target was $8.50. I was going to pay off a car loan and part of my mortgage when I sold it. Long story but the bottom line is that I am still holding on to that stock because the price started dropping after I bought it and has not gotten higher than $3 something a share since then. I think at one point it got down to below 20 cents per share. Out of my pocket, that is really only $500 so it isn’t hurting me, but you an get yourself into trouble in a hurry if it is money that you can’t afford to lose.
[quote]SkyzykS wrote:
[quote]coolnatedawg wrote:
Man, I would love to get into this kind of stuff. Currently buried in a decent amount of debt but once I free myself of those chains just reading this stuff is exciting albeit way over my head…[/quote]
Even socking away a little at a time helps, although my M.O. is not in the higher stakes trading.
My general rule of thumb to accumulate money is to not invest or use any more than me and the wife would spend in a few weeks/1 month of Saturday date nights.
Eventually, this will be my sons college fund. (he’s 9 mos. old)
[/quote]
Yea, the day care costs started to pile up (mine is 1.5yr old) so I got buried as I wasn’t managing my money appropriately. I like that idea tho. I like to read a lot of Dave Ramsey’s stuff in regards to debt recovery/wealth building. It’s not really anything difficult and it makes sense. I almost started a thread about that kind of stuff actually but decided against it. For now it’s just downsizing until I am free and then I can start to dabble in things…
[quote]OldOgre wrote:
Several years ago I was making a little money trading. I wouldn’t call it “day trading” because I would buy stuff based on it’s 12 month S&P target price and try to sell it when it hit close to that price. Some times I would sit on a stock for 10-12 months or more before I sold. Sometimes it was a week or two. I started my account with the minimum $500 and got it up to over $4,000 in a couple of years. One of the stocks that I regularly bought and sold was SIRI which moved around on a daily basis like a crack head. I would buy at around $4 or $5 and sell it at $6 or $7. About 5 or 6 years ago I liquidated all of the other stock I owned in that account and bought up all of the shares of SIRI I could at $5 per share. At that time the 12 month S&P target was $8.50. I was going to pay off a car loan and part of my mortgage when I sold it. Long story but the bottom line is that I am still holding on to that stock because the price started dropping after I bought it and has not gotten higher than $3 something a share since then. I think at one point it got down to below 20 cents per share. Out of my pocket, that is really only $500 so it isn’t hurting me, but you an get yourself into trouble in a hurry if it is money that you can’t afford to lose. [/quote]
I can relate to that in some regards. I jumped into FMCC just buying on the rise and a little bit of decent news. Then it plummeted, so I’m down about $50.00.
I guess my next move if I really wanted to would be to keep buying more to cut my cost basis down a little.
I don’t think it’s a whole lot to worry about though in the long term.
[quote]LankyMofo wrote:
[quote]on edge wrote:
BP is undervalued due to the oil spill thus they are more likely to outperform relative to their piers as the dark cloud slowly lifts from their reputation.
[/quote]
It’s been 3 years - hasn’t this already happened? [/quote]
It’s actually more than a dark cloud over their reputation, there are still law suits pending. I think the law suits are likely to be favorable to BP since the damages haven’t been as bad as everyone initially believed it would be. Also the public outrage has died down so that negative sentiment won’t influence the judgements as much as they would have a couple of years ago.
By the way, if the BP dividend gets back to where it was before the spill it will be over 8% at the current share price.
For disclosure, I bought BP a few months ago in my son’s edu fund and I bought it yesterday in a couple of personal accounts.
[quote]on edge wrote:
[quote]LankyMofo wrote:
[quote]on edge wrote:
BP is undervalued due to the oil spill thus they are more likely to outperform relative to their piers as the dark cloud slowly lifts from their reputation.
[/quote]
It’s been 3 years - hasn’t this already happened? [/quote]
It’s actually more than a dark cloud over their reputation, there are still law suits pending. I think the law suits are likely to be favorable to BP since the damages haven’t been as bad as everyone initially believed it would be. Also the public outrage has died down so that negative sentiment won’t influence the judgements as much as they would have a couple of years ago.
By the way, if the BP dividend gets back to where it was before the spill it will be over 8% at the current share price.
For disclosure, I bought BP a few months ago in my son’s edu fund and I bought it yesterday in a couple of personal accounts.[/quote]
I wanted to buy it when the spill was happening because it dipped below $30/share but didn’t have the spare cash.
What are their dividends currently?
[quote]LankyMofo wrote:
[quote]on edge wrote:
[quote]LankyMofo wrote:
[quote]on edge wrote:
BP is undervalued due to the oil spill thus they are more likely to outperform relative to their piers as the dark cloud slowly lifts from their reputation.
[/quote]
It’s been 3 years - hasn’t this already happened? [/quote]
It’s actually more than a dark cloud over their reputation, there are still law suits pending. I think the law suits are likely to be favorable to BP since the damages haven’t been as bad as everyone initially believed it would be. Also the public outrage has died down so that negative sentiment won’t influence the judgements as much as they would have a couple of years ago.
By the way, if the BP dividend gets back to where it was before the spill it will be over 8% at the current share price.
For disclosure, I bought BP a few months ago in my son’s edu fund and I bought it yesterday in a couple of personal accounts.[/quote]
I wanted to buy it when the spill was happening because it dipped below $30/share but didn’t have the spare cash.
What are their dividends currently? [/quote]
A little over 5% on current share price.
This site shows complete dividend info & history.
They’re at $41.30, dividend of 54 cents payable 6-21-13.
Just bought 30 shares of BP in my Roth IRA, prepared to ride out the storm. I hope you all are right!
[quote]SkyzykS wrote:
They’re at $41.30, dividend of 54 cents payable 6-21-13.
[/quote]
So there’s no confusion to anyone, they make 4 dividend payments per year.
[quote]usmccds423 wrote:
Just bought 30 shares of BP in my Roth IRA, prepared to ride out the storm. I hope you all are right! [/quote]
Me too. Remember, we’re always at the mercy of the market and unforseeable events in the individual companies we invest in… like oil spills.
So, don’t come hunting me down if it doesn’t work out.
[quote]on edge wrote:
[quote]usmccds423 wrote:
Just bought 30 shares of BP in my Roth IRA, prepared to ride out the storm. I hope you all are right! [/quote]
Me too. Remember, we’re always at the mercy of the market and unforseeable events in the individual companies we invest in… like oil spills.
So, don’t come hunting me down if it doesn’t work out.[/quote]
No deal! Nah I’m kidding. Your logic makes sense to me. The stock is way undervalued compared to the industry, S&P, and Nasdaq. If they recover from the spill & stay out of major legal struggles they’re a cheap stock in the industry investors can jump into. I don’t see why down the road the stock wouldn’t be able to recover to the point of matching the industry trend.
^It seems to me it’s a relatively cheap long term gamble. Perfect for my IRA.
Another thing to consider is, as we continue to distance ourselves from the recession folks are going to start buying more cars (SUV’s not Hybrids) and going on road trips again. This should theoretically drive up oil stocks, even BPs.
At least in my mind.
For straight buy and sell on petro stocks, I’d look at seasonal production trends like their conversion from gasoline to heating oil. I’ve always wanted to work a few of those but don’t have a big enough chunk to make a significant gain on something like that.
Some companies like Valero have a pretty distinct and predictable trend that occurs between the end of November and March.
[quote]usmccds423 wrote:
^It seems to me it’s a relatively cheap long term gamble. Perfect for my IRA.
Another thing to consider is, as we continue to distance ourselves from the recession folks are going to start buying more cars (SUV’s not Hybrids) and going on road trips again. This should theoretically drive up oil stocks, even BPs.
At least in my mind. [/quote]
Oh crap, I’m selling BP. Tesla is the wave of the future, oil consumption is going DOWN.
In all seriousness, be careful thinking we are distancing ourselves from the recession. We could easily be closer to the next recession than we are from the last one. Personally, I think when the S&P 500 hit 1600 a few months ago that marked the halfway point for the current bull market. that’s just a hopeful guess on my part though the market could come crashing down next week. Even if I’m right and we have another 3-4 years to go, we are likely to have a pretty sizable market correction sometime before then.
This is why I invest almost exclusively in dividend paying stocks. Dividends tend to support the stock price in down markets plus with the dividends reinvested you get more shares at lower prices.
I only own two non dividend paying stocks; CREE & TSLA. Tesla has the chance of being a revolutionary company and CREE is a pure play on LED lights which are being mandated by the government. I consider those compelling reasons to break from my Dividend/Profitable/Low PE rule.