Stock investment

[ClaraD]

Well, my son has convinced me to dabble in the stock market, even if it is just a little. I am looking over a few stocks. Do any of you invest in under 5-dollar stocks? Why or why not? Penny stocks?

I have been looking at 3...one is over 5 the other 2 under 5. AMC, SNDL and KRBP. I have thought about some others, but not sure if I should stick to a few or buy small in several different ones

 

[Integrityrespec]

Well, my son has convinced me to dabble in the stock market, even if it is just a little. I am looking over a few stocks. Do any of you invest in under 5-dollar stocks? Why or why not? Penny stocks?

I have been looking at 3...one is over 5 the other 2 under 5. AMC, SNDL and KRBP. I have thought about some others, but not sure if I should stick to a few or buy small in several different ones

My advice.
1. Don't invest money you cannot afford to loose.
2. Realize the market fluctuates often, plan on long term gains, short term loss. Range 5 years.
3. High priced stocks mean you probably will not own many shares and unless they make huge changes in value, you will not make much. Lower priced stocks allow you to won more and make more if you invest in the right ones. Do your homework.
4. Old saying. Buy low, sell high. Study the stocks history.

 

[ttwtt78640]

You might be better off using a no load mutual fund than trying to guess which individual stocks are ‘best buys’.

https://money.usnews.com/investing/funds/slideshows/best-no-load-mutual-funds

Kiplinger | Personal Finance News, Investing Advice, Business Forecasts

Leader in personal finance news and business forecasting. Get trusted advice on investing, retirement, taxes, saving, real estate, cars, college, insurance.

www.kiplinger.com

Top 5 No-Load Mutual Fund Companies for DIY Investors

Which are the best no-load mutual fund families? Find out where, why, and how to find simple, low-cost, and high-quality funds, all in one place.

www.thebalance.com

 

[Lutherf]

Is there a reason that you're looking at individual equities instead of mutual funds?

I'm not all that familiar with two of the three stocks you mentioned and both of those seem to be rather new to the market. AMC has been around for a few years but doesn't have a great track record of gains. There was a spike earlier this year (probably due to optimism about theaters re-opening) but it down 50% from that spike while also being $5 over the pre-spike trend so, based on that, I wouldn't be optimistic about much in the way of gains there.

If your goal is to dump a grand into some equity and turn it into $50k then you're not being realistic. That being said, if you're more about the game than you are about the win then knock yourself out. If, on the other hand, you're more about putting something aside to help out in retirement or for the kids then I HIGHLY recommend products that are less speculative. Personally, I keep my money in funds with a long track record of gains and/or dividend payouts. When it comes to individual equities I tend to look at industries that are likely to maintain and grow over the years as opposed to industries that appear to be spurred by "fads" (see late 1990s). I'm a "plant it and let it grow" guy rather than a "Hail Mary and spike the touchdown" guy.

 

[PirateMk1]

Well, my son has convinced me to dabble in the stock market, even if it is just a little. I am looking over a few stocks. Do any of you invest in under 5-dollar stocks? Why or why not? Penny stocks?

I have been looking at 3...one is over 5 the other 2 under 5. AMC, SNDL and KRBP. I have thought about some others, but not sure if I should stick to a few or buy small in several different ones

Before you put your money ANYWHERE I would humbly suggest doing some homework first. Most people get in trouble in the markets and pay a confiscatory stupid tax because they did not do enough homework BEFORE and during their trading. That stupid tax tends to put a lot of people out of business. First thing you do is learn to read financial instrument charts if you don't know already. Here are a couple of tomes to have on hand.(https://www.goodreads.com/book/show/188194.Come_Into_My_Trading_Room) (https://books.google.com/books/about/Technical_Analysis_of_the_Financial_Mark.html?id=5zhXEqdr_IcC ) also a reference with all the terminology you need. (https://www.goodreads.com/book/show/1953581.Financial_Lexicon)The trading world has its own language that you should know, they make new terms to keep their world obscure and to get girls, they are like doctors in that regard. Once you speak their language you will be able to tell if you are being bullshitted much easier. There are a lot of bullshitters in that world. Also if your son uses a trading education website you may want to as well, hell you may want to if he doesn't. I started with paper charts a looonnngggg time ago so I don't really know of any that I can vouch for.

I would also pick your sons brain. Drive him nuts with your questions and make him stretch his brain to answer yours and show you how he does what he is doing. It will benefit you both greatly. You by getting answers you trust more than most, and him by requiring him to think of how and why he does things.

A professional piece of advise when it comes to trading. Do NOT trade for the money. You are not making money you are managing it and that is the mindset you need. Discipline will be your new favorite word should you choose to trade. Make your plan based on your homework and stick to it. It will feel like, 3 steps forward 2 back, over and over again. Get used to it. The market is there to take your money and it does it very well, and it WILL take yours. Your job is capitalize on the mistakes of the market. Take the stress and emotions out of it. Much easier said than done. It can be done. By the way women tend to be more successful traders as a result of their natural mindsets. That said 90+% of traders who get into the game do not last in the game.
Most don't last for a variety of reasons the primary one being they are unable to take the emotions out of the equation. Remember discipline. Always discipline.

Point of fact for you. In a typical year I typically am wrong on my initial trades 60% of the time. That means I am right only 40% of the time. This is up over when I started 20 years ago when my initial trades were wrong 67% of the time. I was right 33% of the time. But remember what I said about this being a game of money management? My yearly gains are typically 200%. That is a 200% profit after all is said and done for the year. Not too shabby if, I should say so.

My teachers told me when I got out of school, I would leave homework far behind. ****ing liars, I do more now than I ever dreamt of doing in school.

 

[ClaraD]

My advice.
1. Don't invest money you cannot afford to loose.
2. Realize the market fluctuates often, plan on long term gains, short term loss. Range 5 years.
3. High priced stocks mean you probably will not own many shares and unless they make huge changes in value, you will not make much. Lower priced stocks allow you to won more and make more if you invest in the right ones. Do your homework.
4. Old saying. Buy low, sell high. Study the stocks history.

oh, I certainly won't throw money at it that I cannot. We have set it at 10% of earnings. I am learning. I know the market closed down, but some of the stocks were still up.
I agree about the higher-priced stocks being more difficult to have very many shares of.
What do you think about Cannabis stocks?

 

[ClaraD]

Is there a reason that you're looking at individual equities instead of mutual funds?

I'm not all that familiar with two of the three stocks you mentioned and both of those seem to be rather new to the market. AMC has been around for a few years but doesn't have a great track record of gains. There was a spike earlier this year (probably due to optimism about theaters re-opening) but it down 50% from that spike while also being $5 over the pre-spike trend so, based on that, I wouldn't be optimistic about much in the way of gains there.

If your goal is to dump a grand into some equity and turn it into $50k then you're not being realistic. That being said, if you're more about the game than you are about the win then knock yourself out. If, on the other hand, you're more about putting something aside to help out in retirement or for the kids then I HIGHLY recommend products that are less speculative. Personally, I keep my money in funds with a long track record of gains and/or dividend payouts. When it comes to individual equities I tend to look at industries that are likely to maintain and grow over the years as opposed to industries that appear to be spurred by "fads" (see late 1990s). I'm a "plant it and let it grow" guy rather than a "Hail Mary and spike the touchdown" guy.

I realize that 50k out of 1k investment is not realistic. If I gain 5% I would be beyond happy. I know that sounds silly, but a gain is a gain is a gain. I also don't plan on putting in thousands of dollars. I do want to use about 10%...probably about what we would spend on stupid things like soda and junk food. So, if I lose it, I lose it.
I may do mutual funds, but right now this is something I just want to do so that I gain some experience with the market. There are some companies I want to invest in because I think they are worth investing in.

 

[beefheart]

Better to put your money in funds. Ones that give you dividends that go back into more shares.

Dividends are coming in the next few weeks, always a good time.

 

[ClaraD]

Before you put your money ANYWHERE I would humbly suggest doing some homework first. Most people get in trouble in the markets and pay a confiscatory stupid tax because they did not do enough homework BEFORE and during their trading. That stupid tax tends to put a lot of people out of business. First thing you do is learn to read financial instrument charts if you don't know already. Here are a couple of tomes to have on hand.(https://www.goodreads.com/book/show/188194.Come_Into_My_Trading_Room) (https://books.google.com/books/about/Technical_Analysis_of_the_Financial_Mark.html?id=5zhXEqdr_IcC ) also a reference with all the terminology you need. (https://www.goodreads.com/book/show/1953581.Financial_Lexicon)The trading world has its own language that you should know, they make new terms to keep their world obscure and to get girls, they are like doctors in that regard. Once you speak their language you will be able to tell if you are being bullshitted much easier. There are a lot of bullshitters in that world. Also if your son uses a trading education website you may want to as well, hell you may want to if he doesn't. I started with paper charts a looonnngggg time ago so I don't really know of any that I can vouch for.

I would also pick your sons brain. Drive him nuts with your questions and make him stretch his brain to answer yours and show you how he does what he is doing. It will benefit you both greatly. You by getting answers you trust more than most, and him by requiring him to think of how and why he does things.

A professional piece of advise when it comes to trading. Do NOT trade for the money. You are not making money you are managing it and that is the mindset you need. Discipline will be your new favorite word should you choose to trade. Make your plan based on your homework and stick to it. It will feel like, 3 steps forward 2 back, over and over again. Get used to it. The market is there to take your money and it does it very well, and it WILL take yours. Your job is capitalize on the mistakes of the market. Take the stress and emotions out of it. Much easier said than done. It can be done. By the way women tend to be more successful traders as a result of their natural mindsets. That said 90+% of traders who get into the game do not last in the game.
Most don't last for a variety of reasons the primary one being they are unable to take the emotions out of the equation. Remember discipline. Always discipline.

Point of fact for you. In a typical year I typically am wrong on my initial trades 60% of the time. That means I am right only 40% of the time. This is up over when I started 20 years ago when my initial trades were wrong 67% of the time. I was right 33% of the time. But remember what I said about this being a game of money management? My yearly gains are typically 200%. That is a 200% profit after all is said and done for the year. Not too shabby if, I should say so.

My teachers told me when I got out of school, I would leave homework far behind. ****ing liars, I do more now than I ever dreamt of doing in school.

thank you very much for the links. I will absolutely read them all the way through. I already am driving him bananas. He has done pretty well with the stock market. He also says not to put in what you cannot lose. We have talked about multiple stocks. SNDL is a Canadian cannabis stock so that one is one I want to invest in, because I see a positive future in the cannabis market. AMC, my son thinks is going to continue slowly upward until it hits 50 to 60s. He may be wrong, but he very well could be right. He said to avoid Motley fool because they often are very wrong.

 

[PirateMk1]

thank you very much for the links. I will absolutely read them all the way through. I already am driving him bananas. He has done pretty well with the stock market. He also says not to put in what you cannot lose. We have talked about multiple stocks. SNDL is a Canadian cannabis stock so that one is one I want to invest in, because I see a positive future in the cannabis market. AMC, my son thinks is going to continue slowly upward until it hits 50 to 60s. He may be wrong, but he very well could be right. He said to avoid Motley fool because they often are very wrong.

Good hunting.
I wish you well, and hopefully you and your son find that trading brings you more time and enjoyment together.

 

[ClaraD]

Good hunting.
I wish you well, and hopefully you and your son find that trading brings you more time and enjoyment together.

yes, I hope so. This is my kiddo that was disabled in Afghanistan. We both love art and it seems we may have some mom-son interest in stock hunting. I used to be very anti Cannabis until he needed it to control pain and PTSD related to his time there. He is fortunate that he gets about 40k a year in disability from the military. He said he wants to invest with us in flips (my husband and I are contractors) but I am holding on flipping right now as I expect they my downturn and that is when I will buy and improve, rent then hold for a flip.

 

[PirateMk1]

So

yes, I hope so. This is my kiddo that was disabled in Afghanistan. We both love art and it seems we may have some mom-son interest in stock hunting. I used to be very anti Cannabis until he needed it to control pain and PTSD related to his time there. He is fortunate that he gets about 40k a year in disability from the military. He said he wants to invest with us in flips (my husband and I are contractors) but I am holding on flipping right now as I expect they my downturn and that is when I will buy and improve, rent then hold for a flip.

A lot of the skills you have for flipping houses will translate well into stock and other instrument trading. In many ways the main differences are market liquidity and speed.

 

[reflechissez]

My advice.
1. Don't invest money you cannot afford to loose.
2. Realize the market fluctuates often, plan on long term gains, short term loss. Range 5 years.
3. High priced stocks mean you probably will not own many shares and unless they make huge changes in value, you will not make much. Lower priced stocks allow you to won more and make more if you invest in the right ones. Do your homework.
4. Old saying. Buy low, sell high. Study the stocks history.

You should not be giving investing advice. This is not true at all.

 

[reflechissez]

I realize that 50k out of 1k investment is not realistic. If I gain 5% I would be beyond happy. I know that sounds silly, but a gain is a gain is a gain. I also don't plan on putting in thousands of dollars. I do want to use about 10%...probably about what we would spend on stupid things like soda and junk food. So, if I lose it, I lose it.
I may do mutual funds, but right now this is something I just want to do so that I gain some experience with the market. There are some companies I want to invest in because I think they are worth investing in.

If you don't have the time, the temperament AND the training, you are unlikely to do well.

 

[ClaraD]

So


A lot of the skills you have for flipping houses will translate well into stock and other instrument trading. In many ways the main differences are market liquidity and speed.

I have a knack for flipping, but I am still going to do as much studying as possible, I opened an account with Merrill Lynch

 

[ClaraD]

If you don't have the time, the temperament AND the training, you are unlikely to do well.

I have a natural ability to flip houses. I bought my first house for 1700 dollars, yes, 1700 dollars, in Rock Hill, SC. That 2/1 cottage on a mill hill sold for 98k not long ago. I invested about 18k into it. I did window replacements, stucco, flooring and paint. It was in overall good shape when I bought it in 1997. It was rented out for years and then Rock Hill properties skyrocketed.

 

[PirateMk1]

You should not be giving investing advice. This is not true at all.

He is technically correct. Is his advice for what ClaraD is doing correct? Not entirely. That said Intergrityrespec's advice is valid for what it is.

 

[reflechissez]

I have a natural ability to flip houses. I bought my first house for 1700 dollars, yes, 1700 dollars, in Rock Hill, SC. That 2/1 cottage on a mill hill sold for 98k not long ago. I invested about 18k into it. I did window replacements, stucco, flooring and paint. It was in overall good shape when I bought it in 1997. It was rented out for years and then Rock Hill properties skyrocketed.

Your point?

 

[ClaraD]

Your point?

that I am pretty good at studying gain and loss or profit and loss margins. I am not using the money I cannot afford to lose, so not sure why you think this will be bad for me.

 

[reflechissez]

that I am pretty good at studying gain and loss or profit and loss margins. I am not using the money I cannot afford to lose, so not sure why you think this will be bad for me.

You will be speculating, not investing. Good luck.

 

[ClaraD]

You will be speculating, not investing. Good luck.

all stocks by definition are an investment. Sometimes you gain, sometimes you lose. That is true whether it is a 401k or an individual stock. Many years ago, Enron was a hot stock until it wasn't. It crashed overnight, for good reason. However, it destroyed many a 401k plan.

 

[reflechissez]

all stocks by definition are an investment. Sometimes you gain, sometimes you lose. That is true whether it is a 401k or an individual stock. Many years ago, Enron was a hot stock until it wasn't. It crashed overnight, for good reason. However, it destroyed many a 401k plan.

Not accurate but I'm sure you'll do great.

 

[Cynical]

Well, my son has convinced me to dabble in the stock market, even if it is just a little. I am looking over a few stocks. Do any of you invest in under 5-dollar stocks? Why or why not? Penny stocks?

I have been looking at 3...one is over 5 the other 2 under 5. AMC, SNDL and KRBP. I have thought about some others, but not sure if I should stick to a few or buy small in several different ones

The overwhelming majority of penny stocks will either fail completely or end up doing little to much. In other words the chances of finding the next Apple or Amazon is slim to none. Do yourself a favor and stick to QQQ, SPY & DIA. I speak from experience.

 

[AConcernedCitizen]

...

Point of fact for you. In a typical year I typically am wrong on my initial trades 60% of the time. That means I am right only 40% of the time. This is up over when I started 20 years ago when my initial trades were wrong 67% of the time. I was right 33% of the time. But remember what I said about this being a game of money management? My yearly gains are typically 200%. That is a 200% profit after all is said and done for the year. Not too shabby if, I should say so.

My teachers told me when I got out of school, I would leave homework far behind. ****ing liars, I do more now than I ever dreamt of doing in school.

You know you can trust @PirateMk1's advice, because @PirateMk1 is without a doubt the richest person in the entire world.

If @PirateMk1 had started with an investment of only $100 twenty years ago, and typically made annual gains of 200%, today he should have an investment portfolio worth over $348 billion, surpassing even Elon Musk's net worth. And if you can't trust someone who made over $348 billion in the stock market, who can you trust?

 

[Cynical]

oh, I certainly won't throw money at it that I cannot. We have set it at 10% of earnings. I am learning. I know the market closed down, but some of the stocks were still up.
I agree about the higher-priced stocks being more difficult to have very many shares of.
What do you think about Cannabis stocks?

Most of the Cannabis space is very speculative and as such moves largely on momentum and not genuine fundamentals. If one plays it right these stocks can make large moves in a manner of weeks but over time will likely lose all of that and more.