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Price to earnings is one way to pick stocks. (P/E). Mutual funds are limited buy their ability to get in and out of positions. ETF's give you a broad market section. Like and ETF on transportation stocks in another ETF the DOW. Or say bank stocks in the ETF (exchange traded fund) SPY is XLF. Or you could buy gold or oil using other symbols. Or even comodities. Then you could also play on the fact that if Greece does or even does not default the probability of the the EURO going down is very high. You would use EUO for that and it is leveraged two to one unlike its brother at one to one. The possibilities are endless.
The other possibility is you use options. 95% of people who use options or 1 in 20 loose money. That is not to say you will lose money only that you have to be well informed. Listen you can even buy a stock then say a put also to protect yourself if the stock were to lose a lot of value. The Put gives you the right to sell the stock at a certain price no matter what price it is trading at.
Some people just trade options by themselves.
I feel the SPY S&P 500 (Today at 120) will be at 40 by 2016. I called the last fall from 157 to 72 was my bottom and the actual bottom was 66. However I traded too much and made probably 3 times the money I invested however if I had left it alone I would be very rich. Emotions often get in the way of trading. However I dissagree that now is a good time to buy unless it is an inverse ETF like SDS.
This is not advice to bet that the market will go down. Use your own head. You can invest and be successful. Good luck to you and as complicated as I made this seem my advice is keep it simple and pick something and stick with it. Good luck!
New to Investing With Little Money
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I just opened an account with Tradeking recently with $1000 deposit from a bonus check. I feel that most stocks are on sale because of the market conditions. I decided to jump in on the action and take advantage of potential growth. I've been told to start with mutual funds if you have less than $50,000 for investing. Is this a good idea to start with? If so what tools should I use to determine the best mutual funds to buy?
I think you need to research more. Just cause somebody tells you something does not make it true. You need to do a lot of research before you trade. Make sure you understand charts at a minimal. A lot of people have been burned because somebody told them something. Good luck
Price to earnings is one way to pick stocks. (P/E). Mutual funds are limited buy their ability to get in and out of positions. ETF's give you a broad market section. Like and ETF on transportation stocks in another ETF the DOW. Or say bank stocks in the ETF (exchange traded fund) SPY is XLF. Or you could buy gold or oil using other symbols. Or even comodities. Then you could also play on the fact that if Greece does or even does not default the probability of the the EURO going down is very high. You would use EUO for that and it is leveraged two to one unlike its brother at one to one. The possibilities are endless.
The other possibility is you use options. 95% of people who use options or 1 in 20 loose money. That is not to say you will lose money only that you have to be well informed. Listen you can even buy a stock then say a put also to protect yourself if the stock were to lose a lot of value. The Put gives you the right to sell the stock at a certain price no matter what price it is trading at.
Some people just trade options by themselves.
I feel the SPY S&P 500 (Today at 120) will be at 40 by 2016. I called the last fall from 157 to 72 was my bottom and the actual bottom was 66. However I traded too much and made probably 3 times the money I invested however if I had left it alone I would be very rich. Emotions often get in the way of trading. However I dissagree that now is a good time to buy unless it is an inverse ETF like SDS.
This is not advice to bet that the market will go down. Use your own head. You can invest and be successful. Good luck to you and as complicated as I made this seem my advice is keep it simple and pick something and stick with it. Good luck!
Thanks for the advice guys. I heard that ETF's are the way to go. To me I feel like they are just another mutual fund with hidden fees. I have chosen to buy some stocks. I am have learned a little about fundamental analysis. My strategy is to buy a company with strong fundamentals and pay dividends everytime. What do you think about that?
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