I just made my first trade (ever!) in the stock market. Well, I actually only put in a limit order to buy that didn’t execute today. It was hovering just above my limit all day. Arghhh!
Do I let it ride? Should I really be dabbling in the stock market? Am I crazy? What have I done?
I’ve been telling my hubby that I want to do this for a long time, but I’m relatively clueless. I justified it by saying that I’m only playing with a small amount, it doesn’t matter if I lose it. He says he’s fine with it as long as I pay the capital gains from my own money. Ever the optimist, isn’t he? He should be saying that at least we can use my losses as a tax deduction.
I don’t plan on holding onto anything long term (at least until I have enough money to do so), so I guess my focus is on the more volatile tech stocks. I imagine that I’ll hold something if I can’t sell it at a profit (certainly don’t want to sell at a loss!) I’m not doing any margin trading, so I’m not worried about any trouble there.
I’m very conservative money-wise. Maybe that is why this whole thing is traumatizing to me. Of course, it could also be the C- I got in Econ. 101. :o
Does anyone have any tips (not on stocks, just general trading tips) for a inept, wanna-be trader?
My kids brighten up our home. They never turn the lights off. -A Wallyism
Look for the long term. Don’t try the day trading sh*t, you will lose out in that. Day to Day fluctuations are unimportant, look more towards the long view, and the company.
>>Nomex underwear is optional for dragons. <<
—The dragon observes
Investing is actually kind of fun. Just a few things to remember…
Don’t bet the rent. You have to be able to wait out (possibly long term) market dips. A lot of investing losses come because you need to liquidate at a bad time.
Know the company that you’re investing in. You should know their fundamentals and have some idea of their business plan. You should be familiar enough with the business to know if the plan makes sense or not. Invest in what you know.
Look out for shills. The computer bulletin boards are filled with people shilling for their various stocks. Stocks tips are worth exactly what you pay for them.
Do your research.
Lurk for a while. It’s like bulletin boards. Follow some stocks for a while and see if your instincts are sound. Start small. Don’t put all your eggs in one basket.
Forget this “new economy” stuff. The last few years of the stock market have been an anomaly. Stocks can and do go down as well as up. (We’re seeing this now ).
If you buy stocks in some hot new IPO with no revenues, that’s speculation. If you buy a company with good fundamentals and a good business plan, that’s investing. You can make money doing both, but the first is a lot riskier.
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