There are so many news sources and they tend to influence the goings on in the markets. Fast Money with Jim Cramer swung both CVS and AAPL last week when they hit very low spots, now if you didn't make a move on them until Jim said anything you missed most of the uptick. This just shows how fickle some stocks can be. Realize that once you have heard a story you have missed it. The real key to investing is here, it is all about researching the stocks and just getting in. Most of my big hits have been surprises to me. It is always a good time to invest, and if you are waiting for the announcement of the next big thing from the company you will always be too late. If you missed out on the 4.5% increase on ATVI (one of my favorites) when it was announced they would be added to the S&P 500 that is something you will probably never make up. If you are skeptical about their growth potential just look at the titles they have coming out this fall and winter: Destiny: the Taken King, Call of Duty, StarCraft II, a recent Hearthstone expansion. Be ready for some killer earnings reports and some great new titles next year. A lot of growth still exists in video games especially with consumer sentiment shoring up.
A quick recap, don't follow the news for your investment strategy, make picks and stick with them. you will see some great surprises.
Saturday, August 29, 2015
Friday, August 21, 2015
It's on
This feels like a full market correction beginning to take place. Up until this last week we have been pretty safe from the major changes in China, but no longer. Global uncertainty has added to the uncertainty with the interest rate hike in the United States.
In the last post I said that now is the time, well it really is. Be looking for picks that you think in 5-10 years will pay off, because right now you can get good prices on the big winners. Turmoil is your friend at this point and once you see it rebound from the 2 year channel support get in and pray.
In the last post I said that now is the time, well it really is. Be looking for picks that you think in 5-10 years will pay off, because right now you can get good prices on the big winners. Turmoil is your friend at this point and once you see it rebound from the 2 year channel support get in and pray.
Thursday, August 20, 2015
Now is the Time
Steel your resolve because the market is in turmoil. It is obvious to everyone that we have quite an interesting market on our hands with the Fed and international forces almost conspiring to drop markets. United States stock markets are either in or nearing a Red level, meaning that overall stock prices have dropped.
Now you may be thinking that it is time to get out while the getting is good. You may have just enough guts to hold on, but how would you feel about getting deeper into the positions that you own? Now just might be the best time to pick 2 or three stocks you feel strongly about the lasting performance of and buying more. Stocks that got hit today include NFLX, FB, EA, AAPL, which have done wonders in my portfolios this year. Start looking for these names that have underlying strength and great support from consumers and investors and dig in.
Market volatility is a great opportunity to take advantage of prices that may not come back.
Now you may be thinking that it is time to get out while the getting is good. You may have just enough guts to hold on, but how would you feel about getting deeper into the positions that you own? Now just might be the best time to pick 2 or three stocks you feel strongly about the lasting performance of and buying more. Stocks that got hit today include NFLX, FB, EA, AAPL, which have done wonders in my portfolios this year. Start looking for these names that have underlying strength and great support from consumers and investors and dig in.
Market volatility is a great opportunity to take advantage of prices that may not come back.
Tuesday, August 18, 2015
The More You Know
How do stocks get their value?
There are several articles out there that could describe to you all the reasons, but lets just focus on a few basics.
Stocks are valued based on the dividends that the company is expected to pay you. A dividend is a certain amount of money per share that the company gives you for owning their stock. The stock you own is a little I-O-U that the company gives out when it decides to raise capital through IPO or expanding its offering. There are many companies that don't currently offer dividends (Google being a prime example) So they are valued based on total market sentiment and the valuation of the company. One day they may offer dividends, but until then celebrate the companies growing bottom line.
Dividends should be a part of your portfolio, make sure to look into stocks that offer consistent dividends with increasing returns per year. This should be a pillar of a balanced portfolio.
There are several articles out there that could describe to you all the reasons, but lets just focus on a few basics.
Stocks are valued based on the dividends that the company is expected to pay you. A dividend is a certain amount of money per share that the company gives you for owning their stock. The stock you own is a little I-O-U that the company gives out when it decides to raise capital through IPO or expanding its offering. There are many companies that don't currently offer dividends (Google being a prime example) So they are valued based on total market sentiment and the valuation of the company. One day they may offer dividends, but until then celebrate the companies growing bottom line.
Dividends should be a part of your portfolio, make sure to look into stocks that offer consistent dividends with increasing returns per year. This should be a pillar of a balanced portfolio.
Enough and to Spare
Investing relies on information. For those of us who are new to the game the information may seem hard to approach. Investopedia is there to help one understand the ins and outs of finance. Take a look there for the terms you don't understand as well as learning new techniques to invest. Markets change quite a bit so being able to watch in near real time is very important. Yahoo, Google, and many other companies provide this for free. Fidelity has a good mix of market charts and information. I have 2 accounts with Fidelity and thus I recommend them (low per order rate is also nice). I also invest with Robinhood. Robinhood offers free trades, though it lacks a lot of the information and portfolio management that Fidelity and the others offer.
As you go about opening and starting accounts either invest in an index or a well recommended stock that you personally feel comfortable with. When it comes down to it the best stock picks are companies that you believe in personally. Make sure to spend some time to study their charts and history, their product mix as well as the management team behind them. Look into any pertinent news. Also don't think that the price is just too high to get in, many times as a stock rises is the best time to get in because you see it growing. As always look to long term. Check a companies progress over several years and then use daily and monthly charts to pick a good time to invest.
As you go about opening and starting accounts either invest in an index or a well recommended stock that you personally feel comfortable with. When it comes down to it the best stock picks are companies that you believe in personally. Make sure to spend some time to study their charts and history, their product mix as well as the management team behind them. Look into any pertinent news. Also don't think that the price is just too high to get in, many times as a stock rises is the best time to get in because you see it growing. As always look to long term. Check a companies progress over several years and then use daily and monthly charts to pick a good time to invest.
Monday, August 17, 2015
21 Things That Should or Shouldn't Worry You in Stocks
Shouldn't
1. Then end of the month sell off, its natural, get used to it, in 10 years you won't have cared about all of those sell offs.
2. Russia invading Crimea, US Senators, brinkmanship, Greek debt...
3. One poor earnings call.
4. Getting in on an IPO.
5. Missing out on the next big stock.
6. Everyone being against the stock you see potential in.
7. What Aunt Lucy or Uncle Jerry said about the feeling they have that the world will collapse. (even if they have credentials)
8. The death of an industry.
9. Having a only a few stocks (because paying extra to be "diversified" usually isn't worth it.)
10. Owning FANG (FB, APPL, NFLX, GOOG(L))
Should
1. Tax evasion.
2. Several missed earnings and sales reports
3. Bad governance.
4. Shifts in market sentiment
5. Running up debt outside of investing so as to require you to pull out your investments
6. Illegal activity or cooked books
7. China
8. Energy and Commodities
9. Only owning FANG (FB, APPL, NFLX, GOOG(L))
10. Disruptive technologies
11. Holding too much cash in the beginning of the month.
Comment with what you would add or change.
1. Then end of the month sell off, its natural, get used to it, in 10 years you won't have cared about all of those sell offs.
2. Russia invading Crimea, US Senators, brinkmanship, Greek debt...
3. One poor earnings call.
4. Getting in on an IPO.
5. Missing out on the next big stock.
6. Everyone being against the stock you see potential in.
7. What Aunt Lucy or Uncle Jerry said about the feeling they have that the world will collapse. (even if they have credentials)
8. The death of an industry.
9. Having a only a few stocks (because paying extra to be "diversified" usually isn't worth it.)
10. Owning FANG (FB, APPL, NFLX, GOOG(L))
Should
1. Tax evasion.
2. Several missed earnings and sales reports
3. Bad governance.
4. Shifts in market sentiment
5. Running up debt outside of investing so as to require you to pull out your investments
6. Illegal activity or cooked books
7. China
8. Energy and Commodities
9. Only owning FANG (FB, APPL, NFLX, GOOG(L))
10. Disruptive technologies
11. Holding too much cash in the beginning of the month.
Comment with what you would add or change.
Have Money, Will Invest
Hello and welcome, lets start off with the tips that I have given people when they ask me how I invest.
First, its always a good time to get in the market. Ten years down the road you will have more than you started with as long as you stay involved and win just a few times. If you don't trust your self or financial advisory get into an Index fund, make your 12% and be happy. Just do it now, while you have funds set aside, because it is so easy to spend that money.
Second, you don't need to put a huge amount of money into your investments to start, the real trick is putting money in continuously, interest is what makes money. I started my first personal account with $500. I managed my first large account with only $300,000. Both accounts have since grown through both well timed investments and continuous in-flow of cash.
Third, the market is crazy. If you measure your progress day to day you will be scared by what is happening, but if you step back and look over a month, 6 months, a year...you will see that it is trending up. Don't get scared of the drops.
Fourth, look at investing as a purchase, just like milk or bread or clothing. The money is spent. This is why investing and saving are a part of any good budget, pay yourself, take a percentage out so that later on you can use that money.
Fifth, you do not need an specialized training to be good at investing. Having education is nice, a specialty in anything can add to your ability to pick and evaluate stocks. My best picks didn't come from complex equations or an in-depth analysis of market factors, but simply seeing the growth of a hobby and industry that I love.
Sixth, be patient. Don't expect millions in returns tomorrow if you are starting with hundreds today.
First, its always a good time to get in the market. Ten years down the road you will have more than you started with as long as you stay involved and win just a few times. If you don't trust your self or financial advisory get into an Index fund, make your 12% and be happy. Just do it now, while you have funds set aside, because it is so easy to spend that money.
Second, you don't need to put a huge amount of money into your investments to start, the real trick is putting money in continuously, interest is what makes money. I started my first personal account with $500. I managed my first large account with only $300,000. Both accounts have since grown through both well timed investments and continuous in-flow of cash.
Third, the market is crazy. If you measure your progress day to day you will be scared by what is happening, but if you step back and look over a month, 6 months, a year...you will see that it is trending up. Don't get scared of the drops.
Fourth, look at investing as a purchase, just like milk or bread or clothing. The money is spent. This is why investing and saving are a part of any good budget, pay yourself, take a percentage out so that later on you can use that money.
Fifth, you do not need an specialized training to be good at investing. Having education is nice, a specialty in anything can add to your ability to pick and evaluate stocks. My best picks didn't come from complex equations or an in-depth analysis of market factors, but simply seeing the growth of a hobby and industry that I love.
Sixth, be patient. Don't expect millions in returns tomorrow if you are starting with hundreds today.
returns come slowly, but as you keep growing and investing the returns grow so much that they could be something you live off in the future. Every $1000 you save and invest now is $100 per year afterwards.
Seventh, any market movement is an opportunity.
Eighth, don't follow the crowd (they tend to be wrong). When everyone is getting out of stocks or taking profits many people are getting in. It is hard to see the value of a stock when everyone else doesn't.
Ninth, don't only invest in the Penny stocks, with greater principal comes greater returns.
Tenth, you are your own worst enemy. Don't spend the money before you can save or invest it if you can help it. Don't panic and pull out when you think it is going to rock bottom.
There are many more tips I could give you. Just remember that investment is rough, its risky, but you can do it.
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