Your 401(K) probably sucks eggs.
Get a regular brokerage account at Ameritrade,
Fidelity, E trade, Scottrade, or Vanguard.
Forget for the sheeple news. Forget the talk and chatter of people you
have to be around. Forget salesman and
politicians.
Definitely forget salesman who get paid whether
you succeed or fail.
Remember this: buy low and sell high. If the market is high, hold off on buying. Don’t listen to people who act like all time
in the market is going to make money.
Don’t be anxious to make a trade or to force a
trade when the market is high.
New
companies can be great investments. Research recent and upcoming IPO’s. Is there a new business you heard of that
sounds interesting? Research it. Visit
the store. Look at the company’s web
site.
You have to decide if you have found the next
Netflix.
Investigate
rumors you read and hear. There’s a saying, “Buy on the rumor. Sell on
the news.” On business news channels, investment newsletters, and major online
investment sites, you will hear rumors and hypothesis for investments.
I once read in a newsletter that a small company
may land a big contract. It did, and I
made 40% in a few days. (Keep in mind there is risk.)
Some financial writers will identify major trends
and predict which stocks will prosper as a result.
You have to use your own judgment to determine
which stocks to buy. There are plenty of bad investment advisors out
there.
Throw away newsletters that come in the mail that
sell micro caps.
Value
investing works.
What major stock is down 50% or more?
You have to determine if the company is finished forever or if it can be
turned around.
You have heard of Warren Buffet, the legendary
value investor. Buffett buys shares of
excellent companies that are temporarily down on their luck. You could do the same.
Next time recession strikes, read investment newsletters,
run stock screeners, and look at your watch list and portfolio and see what the
greatest values are.
Since the 2000 recession, your enemy has floated
the idea of confiscating retirement accounts.
You may want to consider regular accounts and possibly offshore
accounts. You are on your own. One Congressman recently called retirement
accounts “our money.”
A company announcing expansion could be good. If
you read in the news that a store plans to add 50 stores this year, research
the stock. Forget the free newsletters
that come in the mail. Forget spam on the Internet.
The major trends
are your friends; at least they should be if you have them at your back. What trends do investors, workers, and
companies deal with now and see in the near future? Here in the U.S. we have the aging of the
Baby Boomers, immigration, cost cutting, outsourcing, rising higher ed
enrollment, smart phones, social media, app development, domestic spying, and
rising welfare costs. There are way
more.
If you read that a company is going to acquire another company or be acquired
by another company, you should investigate the company getting acquired.
New
management being announced is usually good for a stock
price.
If there is a political revolution in a country by a party that is
pro-capitalist, decide if you should buy the country specific ETF.
Tech
revolutions make fortunes.
How many millionaires were made by computers, software, and the
Internet? We may have to sit around a
while. I have to think we’ll see things
change. But nanotechnology,
neuroscience, alternative energy, robotics, organics, and more fields can lead
to more millionaires.
Again, throw away the free newsletters and avoid
spam. Avoid sales talk.
Last I heard, IBM has the most nanotechnology
patents.
Get rich
options could be an idea, if you can afford to lose 90%
of the time. Yes, most options expire
worthless. Go to CBOE dot org to learn
how to trade options.
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