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| bigike365 |
 Posted: Tue Aug 11, 2009 2:28 pm Post subject: Im new but interested and hungry, need advice |
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New Poster
Joined: 11 Aug 2009
Posts: 2
This Month: 2
7676.79 e$
Net worth: 7,676.79
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| Can someone explain the best way to start. what is the first thing i should do, im an diabled iraq vet and i need to learn this to make money for my family. and i know investing benefits everyone else so i would appreciate any advice. thank you |
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| entreri28 |
| Posted: Thu Aug 13, 2009 9:19 am Post subject: |
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Investing Associate
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The first thing you need to do is decide what kind of time frame you want to use. Do you want to be an investor or a trader? I'm not sure that there is any clear cut distinction between the two. Usually I consider an investor someone who buys with the intention of holding for over a year. Any shorter I consider them a trader. I think for tax purposes holding a stock for 1 year and 1 day counts as an investment and you pay the long term capital gains tax which is much lower than the short term capital gains tax, I might be wrong about that.
I hope you have other means of supporting your family because the top traders and investors top out at 20-30% return a year. Most likely you won't be able to achieve that kind of return starting out. Unless you have a large amount of money you are ready to risk, you probably won't be able to live off of it. I don't mean to discourage you, I just wanted to make sure you knew what kind of return you could realistically expect.
I would recommend sticking to demo trading or simulators like the one on this website for at least a year. This might seem like a long time but I think it will save you money in the long run. It sure would have saved me money had I done it.
I would recommend reading "The Intelligent Investor" by Benjamin Graham for investing. I also recommend "Martin Pring on Price Patterns" by Martin Pring. It is really more about trading, but I still think everyone should read the first 5 chapters.
I have been trading for 2 years now. By the end of the year I expect to be at a net profit for the first time. Of course I made every mistake in the book.
Good luck, keep learning and don't give up. |
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| frusnak |
| Posted: Sun Aug 23, 2009 11:44 am Post subject: |
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CFO
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| entreri28 wrote: | The first thing you need to do is decide what kind of time frame you want to use. Do you want to be an investor or a trader? I'm not sure that there is any clear cut distinction between the two. Usually I consider an investor someone who buys with the intention of holding for over a year. Any shorter I consider them a trader. I think for tax purposes holding a stock for 1 year and 1 day counts as an investment and you pay the long term capital gains tax which is much lower than the short term capital gains tax, I might be wrong about that.
I hope you have other means of supporting your family because the top traders and investors top out at 20-30% return a year. Most likely you won't be able to achieve that kind of return starting out. Unless you have a large amount of money you are ready to risk, you probably won't be able to live off of it. I don't mean to discourage you, I just wanted to make sure you knew what kind of return you could realistically expect.
I would recommend sticking to demo trading or simulators like the one on this website for at least a year. This might seem like a long time but I think it will save you money in the long run. It sure would have saved me money had I done it.
I would recommend reading "The Intelligent Investor" by Benjamin Graham for investing. I also recommend "Martin Pring on Price Patterns" by Martin Pring. It is really more about trading, but I still think everyone should read the first 5 chapters.
I have been trading for 2 years now. By the end of the year I expect to be at a net profit for the first time. Of course I made every mistake in the book.
Good luck, keep learning and don't give up. |
Good advice. A trader or investor are one in the same IMHO. |
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