SRL Archive - Discussions and Debates

Has anyone here actually done any real stock exchange or long term investment in companies , and im not talking about the Grand Exchange here. If you have could you tell me some non obvious risks and laws that concern this because I am considering to invest some of my $$$ for long term :D

My suggestion is to hire someone who does this for a living and don't rely on tips you get on internet forums :p

Also, when I first read the title I expected this to be a spambot thread. Then I noticed what forum it was in and got confused for a second.

I'm going to disagree with Senrath and say sit back and WATCH the game. That's all it is :P A game.

Sit back, follow the system, read up etc etc.

Knowledge will get you VERY far in this industry :)

Do a pseudo-money system at first to get the hang of it with no risk. I am doing that currently but for a different reason.

If you have a skype or even a phone number I'd be happy to Im/Text with you about our stock picks and such.

Currently I am trying to figure out the psychology behind penny stocks, and how to profit from pump and dumps.

(Noting an agreement with the people before me, especially in relevance to the pseudo-money system, but still offering new information):

As a generic rule, stocks fit under 2 categories:
1)Low risk, low gain
2)High risk, high gain

I tend to prefer low risk gains myself because you don't need much of any experience to trust them and they are quite consistent in their profits. Particularly I stick with necessities (oil, gas, electricity, etc) as they have extremely consistent raises in their stock prices.

If you want a low risk flipping stock, for example, gas (propane, heating type gases) prices always go up during the cold seasons of the year, so you could buy the stocks in the late end of the warm season (august-september for most of us) and then sell them in the late end of the cold season (february-march for most of us). However, there are much higher tax rates on "short-term investments" (less than one year spent holding the stock) in most countries.

The option I most prefer is high dividend based stocks (I know of some that almost reach 20%). These are stocks that once every quarter or year, will give a percent of the stock's value to each stockholder as a dividend. So, even if the stock plummets by 10% (which is unlikely in low-risk fields), you are still earning money due to the high value of the dividend in the meanwhile. Typically, oil companies will slowly go up in price all year round, AND offer a dividend of some kind (6-8% typically) - and that is the type of stock I buy most often. Safe and consistent, yet still fairly profitable.

But no matter what you do, the biggest thing to remember is: "don't put all your money on one horse." No matter how "safe" a stock is, any sort of tragedy could affect it and ANY/ALL stocks may plummet. Not only do you not stick all your money in one stock (split among a few companies), but don't put all your money in stocks, period.

I hope I gave some helpful advice in there, good luck!

I would do as senrath suggested and hire someone to do this. They will take a %cut as the fee but its definitely a lot safer. I would say you will make more money doing this in the long run than if you did it yourself as your obviously going to make a few losses along the way as you learn.

I do not agree with what Senrath and The Flea have stated. Just because they know how to manipulate the market does not mean that we are any safer. Any person who believes that the Market is based on Logic is completely wrong. The market is based on Speculations. Hence, know a companies records do not determine if they will be in profit or loss. Its the news that is surrounding the company that makes it.

My 2 cents would be to find a company that you are interested in learning about. Use all the resources, such as Google News, WSJ, anything that is widely read and make your decisions based on that factor along with checking out their historical data. Make sure you understand that the combination of the two will give you a safe investment as well as more or less an insight to the companies future returns.

For Long Term Investments, find a company that you know is worth their value. Lets take Bank of America for example, with a Beta(volatility) of 2.38, make sure you diversify with a company with a lower beta. You want to get it as close to 1 as possible to ensure a safer investment. Again, as I stated before, market is based on speculations hence watching the market is a full time job.

Those are just one of the aspect you want to narrow down the company you want to invest in. Either way, try to stay away from Penny Stocks. Anything less than $5 is considered penny stocks in some peoples eyes but in my opinion it is anything less than $2. They are many resources online where you can learn more about trading.

one of the company im interested is an electric company and they are actually doing an IPO plus its a state owned asset meaning government controlled , so they are still gonna be in control with around 51% .