[ale] OT: Stock Traders?

[Zyman, Andy]

Good input Douglas.

Plus you have to pay at least 30% to Uncle Sam..
So i would join the idea of cashing 150 and going to spend it in casino..

> -----Original Message-----
> From: Douglas Bridges [mailto:ale at politicalpurpose.com]
> Sent: Thursday, April 24, 2003 3:18 PM
> To: ale at ale.org
> Subject: Re: [ale] OT: Stock Traders?
> 
> 
> No offense, but $150 is not really enough to do any investing 
> with if you 
> expect to make any money.  Assume that you put it all in one 
> stock, and you 
> pay a commission of $15 to purchase that stock.  Then you 
> will need to get a 
> 12% gain on the stock to get back to even.  That is a type of 
> gain that would 
> take about two years on a lower risk stock, and probably one 
> year on a high 
> risk stock.  But, then you still also have to cover the 
> commission to sell 
> your stock. Thus (assuming a $15 commission to sell stock) 
> you would need to 
> take your stock from $135 to $165 to be able to break even 
> when you liquidate 
> your stock.  
> 
> I would also like to suggest that you stay away from day 
> trading.  First, you 
> have to invest enormous amounts of money in it to minimize the above 
> mentioned commission problems. Second, day trading is really 
> just gambling.  
> You are putting money into a stock hoping that it will do 
> better quickly.  If 
> there were a way to determine that a stock is going to do 
> well quickly, 
> everyone else would have already invested in the stock.  If 
> you just want to 
> have fun, take the $150 dollars to the Silver Star Casino in 
> Philidelphia, 
> MS, and have fun at the poker table.
> 
> However, I do not want it to sound like investing in stock in 
> a bad thing.  I 
> highly recommend it.  But, you should investigate stocks for 
> long term 
> potential gains, and then invest your money and keep it in 
> them.  If you need 
> general advice in how to manage money, including investing, 
> insurance, and 
> all of those other things, I highly recommend getting the 
> book, Personal 
> Finance for Dummies by Eric Tyson.  The author does not 
> promote any crazy 
> schemes or wierd strategies.  He just shows how to minimize 
> transactions 
> costs, and make your money grow faster than inflation.
> 
> Sorry for the rant,
> 
> Doug Bridges
> 
> On Thursday 24 April 2003 02:52 pm, Robert L. Harris wrote:
> > Anyone here do any day trading as a hoby/investment?  I've 
> got a little
> > ($150) I can play with in stock and thinking of just 
> messing with it.
> > Looking for some tips, good news sites, etc.
> >
> > Robert
> >
> > :wq!
> >
> > 
> --------------------------------------------------------------
> -------------
> > Robert L. Harris                     | PGP Key ID: E344DA3B
> >                                          @ x-hkp://pgp.mit.edu
> > DISCLAIMER:
> >       These are MY OPINIONS ALONE.  I speak for no-one else.
> >
> > Diagnosis: witzelsucht
> >
> > IPv6 = robert at ipv6.rdlg.net	http://ipv6.rdlg.net
> > IPv4 = robert at mail.rdlg.net	http://www.rdlg.net
> 
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