Armat Posted January 12, 2004 Report Share Posted January 12, 2004 Since we all wasted good valuable time chattering nonsense here I thought it would be great for someone with investing background to teach us few basics mainly What is an option trading?What is an option? Anyone using software tools such as wisetrade, options made easy or 4x made easy. I seriously consider investing on Wall Street as a career. Thanks in advance Quote Link to comment Share on other sites More sharing options...
Azat Posted January 12, 2004 Report Share Posted January 12, 2004 Armat, you know how to have a million dollar portfolio in option trading? Yes you got it: start with 3 million dollar portfolio. I actually have played a bit with options trading and will give my understanding of what they are later on this evening when I get home, but in general I myself try to stay away from them as they are fairly risky. I also think we should put our favorite stocks and stuff here maybe not as advice for others to invest but to show why we bought them or why we are selling them and the good and bad that we have done. It may be fun. I love investment talk. Quote Link to comment Share on other sites More sharing options...
ED Posted January 12, 2004 Report Share Posted January 12, 2004 Armat, you know how to have a million dollar portfolio in option trading? Yes you got it: start with 3 million dollar portfolio. I actually have played a bit with options trading and will give my understanding of what they are later on this evening when I get home, but in general I myself try to stay away from them as they are fairly risky. I also think we should put our favorite stocks and stuff here maybe not as advice for others to invest but to show why we bought them or why we are selling them and the good and bad that we have done. It may be fun. I love investment talk. Buy telecom and airline stocks NOW! American, Hawaiian, delta etc.. those stocks are way down, its a high risk investment but those companies are cut down to the bone, this year I expect telecom (which is already taking affect) to skyrocket, names like LU, NT, AGRA do a little homework and have a balanced portfolio, you can start a small 1000$ portfolio if you do your homework right there is a tremendous opportunity out in wall street this and coming years to be made, take a look some of those names I mentioned (symbols) and see where they were and where are they now, look at this is a mid term-to high term investments, also cattle (beef) stocks are down like 20% because of this mad cow scare, cattle industry is on the public confidante campaign to win back the losses, this mad cow thing will go away eventually, what is important is where they are now. Its going to be a BULL market this year and those who do there homework will benefit. anyways its a long subject to talk about, we shall talk some more about this, questions and answers, yes Azat I agree let others benefit from our experiences, but its VERY IMPORTANT to know what they are getting into! Quote Link to comment Share on other sites More sharing options...
ED Posted January 12, 2004 Report Share Posted January 12, 2004 (edited) for those who want to get into wall street and investments are recomend for starters to pick up a book by Peter Lynch he was (is) one of the most respected wise ppl in this field check it out here http://library.thinkquest.org/3096/41pick1.htm?tqskip1=1 Edited January 12, 2004 by Edward Quote Link to comment Share on other sites More sharing options...
Sasun Posted January 12, 2004 Report Share Posted January 12, 2004 Ask me any questions about how to lose 95% of your investments in a short period of time Quote Link to comment Share on other sites More sharing options...
ED Posted January 12, 2004 Report Share Posted January 12, 2004 Sasun you want some if not all back? and more? I lost 99% got most of it back in six monts, ask me how or fallow what I wroth Quote Link to comment Share on other sites More sharing options...
Armat Posted January 12, 2004 Author Report Share Posted January 12, 2004 I just came back from a currency market workshop.It is the largest market out there over trillion currency being exchanged daily.Up to 1998 it was not available to US public but now it is.I am very impressed and have much homework to do.I am extremely determined to succeed here.I will keep it posted. Azat, Ed thanks for your tips. Quote Link to comment Share on other sites More sharing options...
Sasun Posted January 12, 2004 Report Share Posted January 12, 2004 Armat jan I don't mean to break your enthusiasm or anything, but are you sure you want to do it? There is so much risk involved as you know well... to make it a daytime job and invest vital savings could lead to a disaster (unless you are investing somebody else's money? ) If I had to do it I would start from really small amounts (like $1000 suggested by Ed) and gain experience first and grow slowly. But frankly I don't know anything about currency market (other than recent news of about 50 currency traders on wall street getting busted by the FBI, so there seems to be a few vacancies ) Parhaps it is less risky than stock market. Edward jan, I will follow yours and other advices here. Actually a while ago I made some money on Lucent which I lost later due to greed and stupidity. Quote Link to comment Share on other sites More sharing options...
Armat Posted January 12, 2004 Author Report Share Posted January 12, 2004 Sasun jan, thanks for the advise.Actually I have no savings to lose but the curency market is very real.Becouse you can make substetial amout of money by exchanging curency basically on a slight inflactuation of the market.You can start as little as 300.00 dollars and no broker fees.I am still a student and need to know lot more . Quote Link to comment Share on other sites More sharing options...
Sip Posted January 12, 2004 Report Share Posted January 12, 2004 Armat, I am certainly in no position to give any advice ... so take this from someone whose cockyness got the best of him during the late 90's BOOM and learned his real life lesson ... Do not treat the markets as a game. There is a lot of money to be made but also a lot of money to be lost. If you do that, it will become like gambling. No one really knows how the markets will behave in the short term. The best strategy is to invest wisely. Do some homework ... start to follow trends ... understand what is happening. Look for the longer terms. And whatever you do, don't start "investing" on borrowed money unless you are absolutely sure what you are doing. Fortunately this is one route I didn't take but I know a few people that did and got burned BIG times. We live in volatile times. A small incident can wreak havoc on all markets. The markets and the dollar could plunge in a matter of hours for the short term so the key is thinking long term. But having said all this, I do think it may be 'fun' experimenting with shorter term "investements" such as day trading, currency exchanges, and the likes. Just don't bet the farm on it and leave yourself a way out (i.e. don't go in debt). In the end of the day, money must be earned and the only way to earn it is to add value to something ... to produce something real ... to accomplish things worth something. If it looks too good to be true or if it looks "phoney", or too easy, then it probably is!!!! Stay away from it or risk the burn ... Quote Link to comment Share on other sites More sharing options...
Accelerated Posted January 13, 2004 Report Share Posted January 13, 2004 Armat, My second major in uni is Finance, I am an average student and have almost finished it, but I would still NOT invest large amounts of money in the stockmarket, unless it was my daytime job - ie. I could keep an eye on a very regular basis. No one really knows how the markets will behave in the short term. Same goes for long term, its all one big gamble. Sips advise is spot on otherwise. Quote Link to comment Share on other sites More sharing options...
vava Posted January 13, 2004 Report Share Posted January 13, 2004 Investing is not for neophytes - a few years ago, everybody and their mother was throwing money into the stockmarkets. Well, a lot of people got burned (including me). Furthermore, public confidence has been shattered in the wake of 'crooks' like Kenneth Lay, and debacles like Enron, Worldcom, Adelphia and now Parmalat is not going to help the markets short-term. That said, I do believe that balancing your investment strategies with a combination of long-term guaranteed investments & more volatile choices like stocks and bonds, is a solid way to invest. Just make sure you do your research and invest in companies with good fundamentals. Quote Link to comment Share on other sites More sharing options...
Accelerated Posted January 13, 2004 Report Share Posted January 13, 2004 whats happened to the guys from Enron? There hasnt been anything on the news since their arrest... Quote Link to comment Share on other sites More sharing options...
DominO Posted January 13, 2004 Report Share Posted January 13, 2004 Investing is not for neophytes - a few years ago, everybody and their mother was throwing money into the stockmarkets. Well, a lot of people got burned (including me). Furthermore, public confidence has been shattered in the wake of 'crooks' like Kenneth Lay, and debacles like Enron, Worldcom, Adelphia and now Parmalat is not going to help the markets short-term. That said, I do believe that balancing your investment strategies with a combination of long-term guaranteed investments & more volatile choices like stocks and bonds, is a solid way to invest. Just make sure you do your research and invest in companies with good fundamentals. If you were not dumb like me and were to invest on Nortel when the share was few cents... you'de be a millionaire by now. Quote Link to comment Share on other sites More sharing options...
Armat Posted January 13, 2004 Author Report Share Posted January 13, 2004 (edited) My eyes are red from reading lot of material on line.I found a great site which gives a free demo account which you can trade currency life but not real money.No risk but a crucial learning step. I don't expect to do this for real untill I master the principles of Money management number one requirment in trading and overalls of A-to Z. Vava, Sasun,Sip guys thanks for the tips. Edited January 13, 2004 by Armat Quote Link to comment Share on other sites More sharing options...
ED Posted January 13, 2004 Report Share Posted January 13, 2004 If you were not dumb like me and were to invest on Nortel when the share was few cents... you'de be a millionaire by now. see? when I was (by the way for does who don’t know its a Canadian corp.) in Montreal I was telling that to my classmates who were new into it, then I believe everyone had lost (and I don’t blame them because most were amateurs driven by the greed) money on Nortel and in telecom in general, well surprised, what does NT worth now? No comments http://finance.yahoo.com/q/bc?s=NT&t=1y&l=on&z=m&q=l&c= do some homework and then spend 1 hour on this thing, research and get some knowledge, there is some money to be made, just not for everyone unless you are willing to educate your self before you get in!!!!! Sure your going to loose some, but in a long run tech stocks are the future, they are tremendous amounts stocks like LU, NT AGRA, LOOK, CMGI, etc…… look into it and thank me later Quote Link to comment Share on other sites More sharing options...
Azat Posted January 14, 2004 Report Share Posted January 14, 2004 I love investing in the stock market. It is one of my most favorite things to do. And when I was having hard time finding a job it was investments that I had made years back that allowed me to maintain the lifestyle that I had. Here are some basic strategies that i follow.(granted I may be older than most on this site thus may earn enough to allow me to play the market a bit) 1. Put the max in an IRA(this year it is 3500). If you earl sub 100,000 per year invest in a Roth IRA. I believe you keep all the money at the end. In an regular IRA you have to pay taxes on the gained portion. 2. Invest the max you can in a 401K plan.(or 403B) Not only is this investment tax deductible, but it is possible that your employer may match part of your contribution. I believe the max you can contribute this year is 12000. After you have contributed to your retirement(and no playing the markets with your retirement money) you should consider investment in stocks, mutual funds, and bonds. The rule that I have use for that division is the 105 rule. you take 105-(your age)=Stock Percentage. that number is the percentage that you should put in stocks. the rest should be divided between mutual funds and bonds. Of the "Stock Percentage" I use 20% for play and 80% I invest in stocks that are very stable with great fundamentals. Read everything you can get your hands on before investing in a company. Don't gamble with your hard earned money. One easy way to start investing in the markets is to start with dollar coast averaging. You can setup an amount that you are willing to invest each month and on a specific date your brokerage house can purchase those stocks for you. The commission on these types of accounts is very low. I pay 10 each month and auto invest 1000 in 4 stocks with my brokerage house. What makes it also cool is that only the first month you really notice that XXX dollars missing. We as humans adjust really fast and after that our budget starts to meet our take home amount. Armat jan, on my next post I will give a bit more info on options and will list few of the stocks that I own that kept me afloat even the huge downturn of the last few years. In the mean time I am going to my friends house for an "old" New Year celebration. So Happy New Year all. :0 Quote Link to comment Share on other sites More sharing options...
Armen Posted January 14, 2004 Report Share Posted January 14, 2004 1. Put the max in an IRA (this year it is 3500). If you earl sub 100,000 per year invest in a Roth IRA. I believe you keep all the money at the end. In an regular IRA you have to pay taxes on the gained portion. IRA, sounds scary. Azat, can you please explain more what it means (taking into account that I know nothing about stocks). Quote Link to comment Share on other sites More sharing options...
Sip Posted January 14, 2004 Report Share Posted January 14, 2004 IRA stands for Independent Retirement Account. You can pretty much have a lot of flexibility and control over your IRA's and there are several tax advantages. A ROTH IRA is a special type of IRA where you pay no tax (there are details of course). You can find a ton of info about Roth IRA's here: http://www.fairmark.com/rothira/ Quote Link to comment Share on other sites More sharing options...
Armen Posted January 14, 2004 Report Share Posted January 14, 2004 Thanks, Sip. Quote Link to comment Share on other sites More sharing options...
ED Posted January 15, 2004 Report Share Posted January 15, 2004 Sasun, Armat it is still is a good idea to buy some of this stock NOW take a look http://finance.yahoo.com/q?s=lu Quote Link to comment Share on other sites More sharing options...
Sasun Posted January 15, 2004 Report Share Posted January 15, 2004 Edo, I have had my eye on it last few days, I wish I had bought it then Maybe I will buy soon rather than later. Too bad I didn't listen to my friend when it was less than a dollar, then less than 2 dollars, then less than 3 dollars. So many missed opportunities Quote Link to comment Share on other sites More sharing options...
MosJan Posted January 15, 2004 Report Share Posted January 15, 2004 http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_6.gif Change -13.10 -3.11% Quote Link to comment Share on other sites More sharing options...
ED Posted January 20, 2004 Report Share Posted January 20, 2004 Stocks to watch Tuesday January 17, 2004 03:27:00 (ET) German-based memory-chip maker Infineon (IFX, Trade) leads off the week's reports on Monday. Tuesday brings reports from AMD (AMD, Trade) and Motorola (MOT, Trade). General Motors (GM, Trade) is also in the loop Tuesday, followed by auto rival Ford (F, Trade) on Thursday. In telecom, equipment maker Lucent (LU, Trade) phones it in Wednesday, followed by ex-parent AT&T (T, Trade) and a cousin, BellSouth (BLS, Trade), both on Thursday. Other big companies reporting Tuesday include Citigroup (C, Trade), United Technologies (UTX, Trade), Johnson & Johnson (JNJ, Trade) and 3M (MMM, Trade). Atrix Laboratories (ATRX, Trade), which makes drug delivery systems, said late Friday that it filed to sell up to $150 million in stock or debt securities. BioDelivery Sciences International (BDSI, Trade), which develops biotechnology medical products, said late Friday that after discussions with the Securities and Exchange Commission, it is changing how it distributes about 3.5 million Class B shares of its subsidiary Boral Nutrient Delivery, which conducts biotech research on food and personal care products. Instead of a "spinoff," the shares will be distributed as a registered offering. Cellegy Pharmaceuticals (CLGY, Trade), a biotech drugmaker, said late Friday that it lined up $15 million in financing from Kingsbridge Capital Limited. Kingsbridge will purchase up to 3.74 million shares at prices that are 8 to 12 percent below the market price when exercised, with the larger discount applying to higher stock prices. Sales of the stock will be at Cellegy's discretion once the shares are registered. Kingsbridge also received warrants for 260,000 shares with an exercise price of $5.27 a share. Cytrx (CYTR, Trade), a biotech drug developer, said late Friday that it will stop financing genomic research companies to focus on larger potential therapies. Most affected will be Blizzard Genomics and Psynomics, in which Cytrx holds stakes via its GGC Pharmaceuticals subsidiary. Cytrx said its investment and losses from Blizzard totaled about 3 cents a share for the first nine months of 2003 and will not recur in its 2004 first quarter. Elmer's Restaurants (ELMS, Trade), a West Coast chain, said late Friday that it bought back 204,205 shares, about 10 percent of shares outstanding, at $6.43 apiece. Total cost was about $1.3 million. Shares closed Friday at $6.40. First National Bankshares (FLB, Trade), a Florida-based financial services company reported fourth-quarter net income late Friday of 9 cents a share and 68 cents for full-year 2003. Its outlook for 2004 is a range of 20 to 22 cents in the first quarter and 92 cents to 96 cents for the full year. Analysts reporting to Thomson One Analytics expect 96 cents for the year, on average. First Niagara Financial Group (FNFG, Trade), a financial services company centered in northern New York state, said late Friday that it completed the purchase of Troy Financial for about $353 million, with $35.50 a share in compensation for Troy stockholders. First Niagara said the total payment was 57 percent stock, totaling 13.3 million common shares, and 43 percent cash, or $151.9 million. Halliburton (HAL, Trade), the oil services company already under scrutiny for an oil-supply contract in Iraq, won a contract worth up to $1.2 billion late Friday for its Kellogg, Brown & Root subsidiary to help rebuild oil fields in southern Iraq. The Army Corps of Engineers said the competitively bid contract replaces a no-bid Healthe Tech (HETCD, Trade), which sells medical monitoring devices and software, said late Friday that Steve Webb resigned as chief financial officer and was replaced on an interim basis by Sandy MacPherson, the president and chief operating officer. The company said a recent downsizing led Webb and Chairman James Dennis to conclude that the company "did not require a financial officer of Steve's caliber and experience." Hollinger International (HLR, Trade), the international publisher whose top executive recently stepped down, said it consented to a Securities and Exchange Commission order to preserve assets in case there's a change in control. Manpower (MAN, Trade), which provides temporary workers for clients, said late Friday that its purchase of Right Management Consultants (RHT, Trade) will exchange 0.3874 of a Manpower share for each Right share when the merger is effective Wednesday. The exchange rate was calculated by dividing the 10-day average Manpower price into the Right share price's 10-day average. Novartis (NVS, Trade), the Switzerland-based medical products maker, said late Friday that a New Jersey jury decided an over-the-counter decongestant was not to blame for a plaintiff's stroke suffered in 1998. Novartis said the case was the first to test liability for phenylpropanolamine, known as PPA. Products containing PPA were taken off the market in November 2000 after a request from the U.S. Food and Drug Administration. Solutia (SOLUQ, Trade), a chemical company that was spun off from the former Monsanto, said late Friday that a bankruptcy court gave final approval to $525 million of debtor-in-possession financing from Citicorp (C, Trade). United Rentals (URI, Trade), which leases industrial equipment, said late Friday that it will be restructuring more than $2 billion of its debt soon to cut its debt costs and extend maturities. Whole Foods Market (WFMI, Trade), a chain of organic food stores, said late Friday that it is expanding to the U.K. as it agreed to buy Fresh & Wild Holdings for $38 million in stock. Whole Food said it does not expect an effect on its full-year 2004 earnings estimate of $1.88 to $1.96 a share. The purchase is expected to close by the end of February. Fresh & Wild owns six markets in London. Quote Link to comment Share on other sites More sharing options...
ED Posted January 20, 2004 Report Share Posted January 20, 2004 Related Quotes Sym. Price Chg. LU Trade News 4.75 0.14 RESEARCH ALERT-Wachovia ups Lucent rating January 20, 2004 12:00:26 (ET) NEW YORK, Jan 20 (Reuters) - Wachovia Securities said on Tuesday it raised its rating on Lucent Technologies Inc. (LU,Trade) to "outperform" from "underperform". Quote Link to comment Share on other sites More sharing options...
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