I had promised that I was going to start my own thread regarding stock investments and the markets. So many things have happened since last time I was here and I really do not feel like sharing my knowledge. But a promise is a promise and there have been few people that have emailed me and supported me.

This thread will deal with investing in the stock markets. I will not discuss individual stocks but discuss ETFs like SPY, DIA, IWM and QQQQ. The one good thing about trading ETFs compared to individual stocks is the the ETFs provide instant diversification among similar companies within the same sector.

I will post more as we go along, regarding entry-price, profit-target and stop-losses. I do not think that any ETF is good or bad. It is good only if I'm making money and bad if I'm losig money.

If you have not been in the market so far, please read this as an information piece only rather than my recommendations. There is risk involved and you should know how much risk to take on any position.

Any suggestations, comments and criticisms are welcome as long as it is market related. If this thread gets out of hand and we start discussing off-topics, I'll stop posting.

Have a happy new year!!!! May 2007 bring you and your family lots of joys and riches.

Emini,

What is the approximate minimum amount you have to have to trade on Interactive? I assume it's huge. What approximate amount per transaction it comes out to there?

I am thinking about 6/12 months turnover time, so any thoughts on minimizing transaction costs by any of you guys would be heartly appreciated.

Thanks

Kina Kina,

If you have a minimum balance of $25,000 including CDs, saving and ckecking, the bank of america gives free trading up to 30 trades per month. Good Luck.

Do you have to hold that money in the account or you can trade using that money? Do the Bank of Amrican has online trading platform?

Thanks,

Kina Kina,

You do have to hold the minimum balance of $25,000 on your account and they do offer online trading.

Thanks Much Palu for providing that info. Albeit, I am wondering why one would have 25k static in account while trying to take advantage of commission free trades? kasso?

Investing is about taking calculated risk said wise one!

Hey guys,
Since I am not an expert but still likes to make money from investments, I started online stock trading from this May. Till date, with investment of small fund, I have made around some $$$ in profit.
I usually sell the stocks when it crosses 10% profit margin and has never held anything past 15% (I have regretted in few cases for doing that).

Emini wrote that tax is high for short time investments. It would be great if someone can enlighten me on how investment incomes are taxed?
Are they taxed as normal income after summing up all incomes for that fiscal year?
Taxes are imposed on proceedings or net Profit/Loss?

Thanx
NewTrader

Emini:
so what do ya think of the market after yesterday's bullish run?

New Trader:
like Emini has been saying time and again, hold it long. Day trading ultimately yields nothing. Also target based investing like you mentioned, to me, is not that wise. Let the profit flow. Stop order explore garee pani besss hola, kasoo?

Only thing you can control is loss. Leave the rest to GOD and the MARKET.

I quit my job. So now I have more fee time. Thinking about heading Europe. Hmmm?

Best!
-B

This market looks strong. Nothing to do but sit tight.

Here are some of my value picks.

GLBL @ 29---Target: 51
RNO @ 5.50---Target 10.50
VCP @ 27---Target 88.

I have rounded the prices. These stocks are considered value plays. They have decent revenue and earnings growth and are trading at a discount to their peers. This is a long-term play. You'll need to hold these for 3-5 years or until it gets to the target price. I have set the target price as 80% of the intrinsic price.

NewTrader: I think short-term tax is closer to 40% and long-term is significantly lower. You might want to google it for more info or consult a tax advisor.

Bri: What are your going to be doiing since you quit your job? Anyway, Good Luck to you on your future endevours.

The above mentioned stocks should be bought when the price gets to/below the 50d MA.

Emini,
nice picks... let me do my DD on it.

I am holding CDE and MRVC for long-term. Target for me is at least three folds.

New Trader ji,
it is 35 percent I believe for short-term or thereabouts... and 15 percent for long-term ie over a year period of time.

Re: what next?
God knows. I do not see working on W-2 for anyone. My wife says Thursday is a good day to register a company. Hmm?

Best!

-B

Getting out of my QQQQ long here. Will get back in if the market manages break to new highs. I think a pullback is coming.

Pullback is imminent. WHEN though is the Q?

once the IPO market starts showing decline in investor's confidence, we can look forward to that I guess. The bear market is bound to crash. Market is riding nowhere given the numbers and indexe's signals.

Best!

-B

Buy STEC.

Target 9 dollars and plus.

I got in at 5.90 - 2 months back.

Best!

-B

.I think it doesn't make much difference if I am in lower tax bracket according to this site

It says

"Short-term capital gains are taxed according to your income tax bracket and long-term gains are taxed at 20% if you are in the 28% or higher tax bracket, and only 10% if you are in the 15% bracket.".

As I don't have expertise to predict market and also don't have huge sum to invest and wait, making quick money with short-term stocks and then re-investing that into newer stocks is beneficial for me.

For person like me with very small investment, keeping the money moving can worth more.

As I am totally a technical person with very small knowledge of economics and business, I am looking forward to hearing some constructive criticism from knowledgeable friends here.

Please drop few words for me

i got out of QQQQ this morning with a small profit. A correction is near. My targets to the downside are 1440 and 1380 in S&P.

Emini,
qqqq exit was well-timed... Great insight. I am impressed.

So now the travel south is starting. Let us see how we fare here.

I am out of tech stocks.
Sold STEC and OPXT at 40plus and 30plus percent respectively after the bell rung today.

Time for Gold and Silver. CDE is there on me, looks like RNO mite be of some interest.

3Com aka COMS under watchglass is a good idea. Strictly intra-day trading if it gets bought over.

Best!


NewTrader ji, follow the thread started by Emini right from the start. Read the books suggested. Do the due diligence- and then help yourself.

here is the joke of the day for me. Yahoo messenger board discussion between two parties on MRVC. Hilarious it is.... I thought you mite enzoi this. I am cracking here, man!



Jan 08 and 09 calls are down today! Time to stock up.

---Here’s how I play the game---

Buy a hundred 2008 $5.00 calls at 0.30 on Wednesday am. Total spent = $3,104 including my brokers commissions.
Set a good till canceled sell price of 0.35. By Friday it will have sold.

Pick up a case of Johnny Walker Black on my way home from work Friday, go golfing.

Reply to this:

very interesting approach buy options then sell options then buy scotch, and play golf. I no ever think of this approach, but does have merit. for me scotch give big hang over and I no be able to play gold, so maybe I buy the grey goose, and do same same. or not. I thinking it better to buy stock for long term or buying the leaps for 2009 for to hold. I thinking this stock to go up very very much over next 2-5 years. then you buy the beach house and the porsche and many cases of the black label stock.

Emini ji,

is this what we called True Selling?

What do you advise next for the current market? Gold, Silver, PM? or some ETFs, or something else?

Best!

-B

Bri: If we close at or below where we are right now, this would be considered true selling day, but we have been seeing this type of distribution for the last 2-3 weeks. I sold my QQQQ last week and I think I posted that here.

You should have been in cash last week. We have already had few true selling days in the last 2 weeks.

Right now I'll just stay in cash. In the next month or two the market should provide us better opportunities to buy.

We are still in a long-term bull market, this market will go higher but we need these types of sell-offs every once in a while, helps to get rid of the bad blood (stole that line from Godfather).

Emini ji,
thanks for your kind suggestions.

I lost quite a bit yesterday and today. ARTG tanked even after pretty good earnings. Guidance was not that great says market.

CDE, MRVC and SIGA also lost me quite a bit.

Am in all cash as you advised.

Best!

-B