Good Investments?

Question

Even with the economy in the crapper what are some good sound investments i can make on my behalf- keep in my i have NO idea how stocks or the investment game works

Answer 1

Contrary to popular media commentary, stocks are NOT on sale, as many in the media, etc. suggest. Stock investing is not like buying a shirt, just because it is cheaper doesn't make it better. Stock history tells us that stocks with superior earnings, profitability, etc. will be priced higher, and PE actually has very little to do with stock price action.

And gold looks like it is in a flat to down trending pattern and would avoid any recommendations you hear on the radio.

Having said that, in the current market, taking long positions in the market is not advised. Sure, the market could bounce higher, but there is currently no leadership and all the indexes are trading well below their 200day moving average and who knows where the bottom is. I don't think the concern should be a little more downside, look at the prices of many of the socalled 'bargain' stocks. Have they dropped a little in the last few weeks? No. They have dropped 10-20-40% in a few weeks, when the market has dropped 5% or so. Therefore, a little downside risk is not the concern, a major downside risk is.

Therefore, in this market, if you are experienced, shorting is one option. Option 2, at least minimized major downside risk buy buying an index ETF, such as QQQQ(nasdaq), SPY(S&P500), or DIA (DOW), if you feel strongly that a bottom is in and you are a quote 'long term' investor. Whatever that means, which frankly to me means, you're just want to take a buy and hope approach to investing. True, over the long term the market does rise, but that doesn't mean you won't suffer thru some major 20-40% declines in your portfolio. Are you read for that? Most people aren't.

So, if you want to go long, wait for the market to show some signs of stock leadership, wait for the indexes to at least recover to their 200 day moving average, which is a major point of support in EVERY bull market.

1 week ago

Answer 2

There are various investment opportunities available online. You can make money even when the economy is not doing well. Why share market is going down? It is because bears as they are called are selling their shares and making money. Even in forex market you can make money selling your currencies  when they are not doing well. You have to learn the tricks of short selling to be more efficient in these markets. Commodity market and futures trading in gold offers a great investment opportunities.

Answer 3

I´ve been investing for more than 20 years and trading for almost 14, and I can tell you that if you want to make BIG and FAST profits, I recommend you trading rather than investing, trading can help you to go from rags to rich.

If you are investing, you must have already achieved some degree of financial success, long term stock investing and FOREX can help you to diversify your money and become much richer than you are today.

My experiences as a Nasdaq Market Maker, Head trader of several brokerage firms, and currently as a professional trader and private hedge fund manager, I can suggest you that:

We trade because we want quick, short term profits on a consistent basis. We want to cash flow the market. Milk it like a cow.

Make consistent, small, short term gains rather than trying to hit a home run on every trade. Don't ever forget that.

Don't marry a stock, marry the idea of making money trading stocks. That's the only way to do it.

For me "All stocks are equally worthless”

I don't hold on to any illusion that the stock market will continue to go up and provide a nice retirement for me.

I could care less which way the market goes. It's irrelevant to me if the market goes higher, crashes or moves sideways for the next 50 years. I really could care less. Stocks are just four letters with two prices next to them that I use to make a living trading.

Trade ONLY when you have a clear, easy and identifiable advantage, because without a CLEAR EDGE your odds of success are NO better than a flip of a coin… That´s why so many new traders (and investors) lose money.

Take a look at any daily chart of any index or stock and you'll probably see the most volatility and the biggest opportunity for profit during the first Hour of the stock market's opening.

The popular thinking and conventional wisdom is that you should wait about an hour before you start trading.

But if you do, you'll miss the big, fast moves that stocks make as all the amateurs let their emotions out through their online accounts, usually right after they read some news headline or hear Maria Bartiromo go off about a stock on CNBC.

It's easy to see why trading the open is the market's prime time for profiting from other online traders.

The market's open is very volatile - that is the perfect environment for LARGE, FAST profits.

Learn to trade as a professional Market Maker, not as an emotionally driven amateur trader or investor with few thousand dollars in an account at Etrade.

There isn't any other time during the day or any stock you can invest in, that can make you 1, 2, 3, 5, 7 or more points in minutes OTHER than during the first hour the stock market is open, that means: if you are buying or selling short a 1000 shares per transaction, you´ll make $1000,$2000,$3000,$5000 or $7000 Usd "IN MINUTES !!!" not in a day, not in a week, not in a month or in a year, in less than 60 minutes... That's why I love trading the open so much.

I trade only when I have an edge and that means "only the first hour the market is open".

If you are a beginning trader, you can give yourself an unfair advantage in the market trading this way.

I can carry on for hours on how to make money trading online, but if you ask me:

"What is your best advise?

I will say:

Give yourself a BIG favor and go to this "Top Secret" site and learn how to get by yourself the BEST stocks that will make the largest and fastest day trading profits you´ve ever seen.

www.onehourtrading.com

After you review this site you won´t need any system, strategy, book, software, guru or mentor to tell you what to do, you will be able to profit HUGE every day.

Besides, you´ll learn:

• The right amount of money to start trading…

• The best Online broker out there…

• Learn how to enter and exit a trade in seconds making Huge profits…

• Make more money than most day traders simply by trading one hour a day!!!

• How to reduce stress, limit risk and stay disciplined like a Pro.

• The 4 basic rules you should know, that every successful trader know, and amateurs don´t even imagine.

• How to trade against the amateurs and avoid like the plague doing it against the professionals , and why this will put you ONE STEP AHEAD of all traders.

• What causes more devastating trading loses than any other factor... and... How to avoid this pitfall! (Even savvy traders often fall victim to this! )

• Not to spend most of your day in front of a computer dealing with complex charts, software or technical analysis.

• Learn how to read the market´s open to make a huge profit just a few minutes after the opening bell.

All this and a lot more…

Good luck and good trading,

John Fontaine

Answer 4

Standard investment advice is that you should invest in a diversified mix of stocks, bonds, and money market funds.  If you are like most people you will invest part of your money aggressively in stocks, and part conservatively in money market funds and bond funds.  However, some young people will go all stocks, and some very conservative people will go all money markets.  The links below have on-line questionnaires which will give you an idea of how to do "Asset Allocation," determining how much to put in each type of investment.



You want to buy a diversified portfolio of stocks as individual stocks are too risky. Highly knowledgeable people can buy a properly balanced portfolio, but most folks have a difficult time balancing things on their own. They will misbalance their portfolio by buying all small stocks or all growth stocks, or some other misbalanced assortment of stocks.  Back in 2000, Some people bought all internet stocks; they got burnt when they all crashed together.   You have to diversify across industries.  Unless you know what you are doing, it is best to buy mutual funds.  Buy no-load, low cost funds.  Mutual funds should have expense ratios of less than 0.5%.

If your company offers a 401K plan at work, try to invest the most you can. The money grows tax free, and some companies will match your contribution. Investing in a mutual fund IRA is also a good idea. If you have children, you may want to consider a 529 plan or other college savings plan that grows tax free.

I like index funds. Because of their broad diversification, you are less likely to have a dramatic drop in value. They also have the lowest expenses. For stock funds, I would suggest putting ~70-80% of your money in the Vanguard Total Stock Market Index Fund. and ~20-30% in a foreign stock index fund. However, there are many different opinions out there on what the best mutual funds are. Read the links below and form your own opinion.

Buying a house instead of renting will save you a lot of money in the long run. You don't have to pay rent and you build equity in your house instead. Buying rental property can also be a good investment. However, being a landlord can be hard work, and many people are not good at it. If you don't know how to handle deadbeat renters, you can have trouble.

If you have high-interest debt, like credit cards, it is best to pay this off first before trying most of the investment ideas above. You should also have 3-6 months of salary saved up as an emergency fund in a bank or money market fund before trying more risky investments.

Believing advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however.