Want to be rich?

[Pulsar36]

Buy the following stocks Monday morning and your dream will come true in a few months to year's time:

YHOO- Down 15+% in last few months- Was approached for a buyout in the past, and will happen again b/c of the cheap valuation
GOOG- Hit overreactively by the missed earnings estimates- WIll rebound and continue to make acquisitions, innovate and swallow up market share
INTC- Lower margins caused Wall Street worry, but the company is still the industry leader and will get back on track

NYX- Hit hard b/c of a rumored expensive acquisition of a commodities exchange- Buy while its still cheap
LEH- Hit hard by subprime fears. These are investment pros. They know how to minimize the damage. Buy an investment bank on the cheap.
BSC- Hit as hard as a bank can get hit with the killing of its specialist business and the collapse of its hedge funds with the subprime disaster. Buy this while it stays at this cheap valuation.

CAT- Stock is on its way to 120. With the recovery in the housing market expected in the medium term future, its prospects can only get better. One time profit miss will not have an impact in long run. Buy while this hot company stays on the sidelines for the short term.

DJ- 60 dollars a share offer. Stock is at 55. What else do you need? Almost no chance of this failing now, and no alternatives exist right now that consist of a lower per share price. Resignation of anti-Murdoch director this week only confirms that the inevitable will not be postponed for much longer- News Corp will snag The Journal



SHORT:

AAPL- Overvalued b/c of generous Iphone estimates. The Iphone will do well, but valuation standards are totally out of line with the industry impact and real net asset worth. Stock is worth 205 according to Piper Jaffray? Let's just call them PUMPER Jaffrey and short this one all the way to the bank.

 

[Handoyo]

Hey Puls, what do you work as over there man?

I want to play with the stock market but I'm clueless on where to set an account man. Can you give me some ideas? I just need the simplest type of accounts that only long/short stocks and trade some options. Thanks man.

 

[snake]

Hey Puls, what do you work as over there man?

I want to play with the stock market but I'm clueless on where to set an account man. Can you give me some ideas? I just need the simplest type of accounts that only long/short stocks and trade some options. Thanks man.

Yeah man, im with Han man.

 

[Pulsar36]

Here's a good site with a 2007 comparison of online brokers:

http://www.smartmoney.com/brokers/index.cfm?story=august2007

It is all what you want to do really. Do you value research? Do you value advisors helping you out? You pay more obviously.

Or do you value the simple ability to trade- cheaply?

You choose appropriately.

Personally, I know enough about the markets to throw away a lot of the BS that these Wall Street Middlemen, aka Brokers like to flash. I go for cheapest commissions without the loss of proper trading execution.

That said, I don't have any money in the stock market in stocks/options. I would stay away from options altogether- they are too risky and you are really speculating. No joke. It is one thing to bet for or against a good company with an unlimited time span, but a completely other thing to bet for or against a stock with a LIMITED time span and a targeted price range.

Wall Street uses options in hedging strategies and are careful not to overspeculate, and even if they do, they have the capital to withstand pressures. A personal investor does not.

An example? An easy GOOG.GK.X 550 Call Option would have been worth 11 bucks on Thursday close. Friday morning, it would be worth 5 cents. The stock went down 7%. The option went down 98.3%. A complete loss of investment. Not worth it IMO.

Back to the stocks issue, I'm only in mutual funds so I can't offer you advice on which broker is the best. The reason being I'm not allowed to really trade certain stocks I would like to, and also I have to report all my trades and go through all this other paperwork BS with my employer so I just avoid it all. However, I would go with TD Ameritrade, Scottrade, or ETrade.

And if you are thinking about mutual funds, that is the best long term option. But go for an indexed one, don't succumb to Wall Street's other crooks- active mutual fund expenses and loads.

 

[lonewolf19]

Hey I am very interested in mutual funds too
any suggestion? Thanks for your help
i was looking into Vanguard and perhaps going to buy their Index fun as
long term investment.

 

[Handoyo]

Thanks a lot Pulsar. Yeah, I just want to trade cheaply. And, I forgot to mention something, but I'd want to trade overseas stocks as well.

As for options, thanks for the advice. I know how risky option is, but of course, sometimes the payout is too good to resist.

As for mutual funds, not really interested in those. Thanks for telling me about them though.

 

[Pulsar36]

Hey I am very interested in mutual funds too
any suggestion? Thanks for your help
i was looking into Vanguard and perhaps going to buy their Index fun as
long term investment.

Index funds with low expenses like many of Vanguard's offerings have consistently beaten actively managed mutual funds with higher expenses and loads over the long term- it is proven. More so, it is interesting to note that the highest performing actively managed funds one year are often out of the top tier completely the next year.

That said, I would definitely choose Vanguard as my mutual fund company b/c they have a proven track record, are the original creators of the index fund, and have the lowest expenses consistently.

There are a few options to choose from:

VFINX- The most popular one, the Vanguard 500 Index Fund which matches the S&P 500 index, large capitalization stocks. Expense ratio around 0.18% for small time investors.

VTSMX- Vanguard Total Stock Market Index. Great index to capture the entire US Stock market, from small cap thru large cap. Many asset allocation experts believe that if you had a limited amount of money to invest in, and wanted a true representation of the US market without investing in two funds, this is the one to choose over the Vanguard 500 Idnex. But I warn you- small caps have been outperforming in the last five years and more, and mid caps have also had their run, even currently. Large caps will probably outperform in the short term, although long long term this might be a better option than the VFINX.

VGTSX- Vanguard Total International Stock Market Index. Very low expenses and invests in a proprotion of the EUropean Index, the Pacfiic Index, and the Emerging Markets Index. Very nice. Of course you can invest in each of those indexes separately as well. So this is a fund of funds therefore.

VDMIX- Vanguard's Developed Markets Index. A copy of the EAFE index, the common MSCI benchmark. Is basically the same thing as the Total International Stock Market, except it invests in only Pacific and European Indexes, no emerging markets, hence the name. Kind of like a developed world investment strategy.

VBMFX_ Vanguard Total Bond Market Index. Great index to capture the entire bond market with one fund. Lowest expenses.

They say that if you are investing for the long term, you only need three funds (if you are a US resident)

40% Vanguard Total Stock Market
50% Vanguard Total International Stock Market
10% Vanguard Total Bond Market

Of course those percentages can be moved around to fancy your personal outlook/situation. But basically, for a guy in his 20's, the Bond market should be 5-15, the Total INternational and Total Stock Market should each have about 35-45 percent.

 

[Pulsar36]

Thanks a lot Pulsar. Yeah, I just want to trade cheaply. And, I forgot to mention something, but I'd want to trade overseas stocks as well.

As for options, thanks for the advice. I know how risky option is, but of course, sometimes the payout is too good to resist.

As for mutual funds, not really interested in those. Thanks for telling me about them though.

Well...I'm not exactly sure. I think in your situation, you would probably have to go with ETrade. There aren't a lot of platforms (on the discount broker side) that have fully expanded into international stocks yet. I know ETrade had a pilot program started in February, and that was with big markest like LSE, Deutsche Borse, Euronext, TSE.

You might either have to go to a premium broker or find a more niche discount broker online that specializes in internationals. Don't know too much about that area. But try ETrade. I am not sure how far along their international investing capabilities are yet.

 

[Handoyo]

Puls, how does it feel working in this field? I've heard that this is one of the most stressful job one can possibly get because you're responsible for millions (maybe billions, if you're the big shot) of Dollars. How long have you worked in the industry man?

 

[Pulsar36]

Ohh I have no such responsibilities for millions of billions of dollars. But I do work around people who do, and they are definitely focused as they can be every single day. Only been in the industry for over 2 years now. The thing with most of these people is that they find this field fun, so it's almost like you are not working. That's how I personally feel everyday. I have more fun on days when the market is opened, and thus I'm working, than when they are closed. :howler:

 

[Handoyo]

Yeah, I understand that.

I guess it's like betting in soccer eh? You love the sport, read the news regularly, watch so many Goddamn matches, so why not make some money out of it.

Good luck in your career and thanks for the help man. I'll be sure to check this eTrade once I got back to the States.


Handyo

 

[bennyblanco]

on Wednesday i have a horse tip that can be played through the internet

it will cost $100 for the tip so whoever wants the tip can contact me pm nd il send my bank details

*Note:the tip may not finnish first,and no refunds accepted,permit number 456739876635 Sydney Australia

 

[InterMilan31]

sell drugs = become rich

but seriously i dont really invest in the "big" companies and when investing in the small ones do your research wisely. or just get a broker to do it for you like I do now for my money

 

[brehme1989]

Tips are for amateurs

If you make money by tips it just means that you suck... The point is to make it yourself. (actually the point is just to make them, but it'll be better for you and generally better if you made it by yourself)

 

[shahz_nerazzurri]

I found out that Investing in drugs is much more profitable than stocks and whatnots.
I invested 100 bucks in to this project with a friend of mine, and now I run a very successful company in Toronto, with deliveries all across GTA, and also in Michigan. I have found American market much more profitable than the Canadian one. We have a branch office in Detroit. We are thinking about expanding further to include highly profitable markets like Montreal and New York. Our products range from many different classes of weed, from Californian to B.C., shrooms, acid, ecstasy pills. We are planning expanding our product line, and including cocaine, since we have lost quite a few customers, for not having this product with us.

We dont have a name for our company due to legal reason, and our customer list is completely confidential.

I invite people living around Ontario or Michigan to join us, in the fastest growing market in all of North America. Our membership fees is $500 non-refundable, payable through pay pal. But take my words for it, this is an investment you wont regret. Some of our members make around 5Gs in a year, basically doing nothing. If you are not interested in membership, but would like to be our customers, then still dont hesitate to contact me.

Remember, you are never to cool not to do drugs

 

[lonewolf19]

Hey Pulsar36, thanks so much for your info on mutual funds.
I just wonder u mentioned that you need to be US resident for those Vanguard mutuals. If you are not an US resident are you not allowed to purchase any of Vanguard's fund at all??

 

[Adriano@10]

Eh puls do u know do u need to be 21 to buy and Stock from the us??
Coz i wanted to buy the apple options and i coud not over my account !!
Anyway i did it over the account of my dad and made some nice cash with it

 

[brehme1989]

The best way by the way to make money but needs attention and luck, is to "toy" with the currencies... Right now I'd say that buying US Dollars is a great investment... You can sell them for Euros or whatever else in 2-3 years for like 2-3 times the value. The US Dollar just cannot continue to drop its value. It's just illogical