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March 7th, 2005


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11:33 pm - Stocks and Investing
Our stock rose $3.91 today. Today was a big rally for the market (except for tech). If it does that I'll be able to sell in a couple of days. I've decided, as a stategy to sell when I get 21-22% increase in price, even if the stock does this in a couple of weeks, which would mean that it could do even more. I'm thinking that getting 20% profit in a shorter time period is better than waiting for a longer time period and perhaps getting more, maybe not. I can make more in the long run by having 12 different 20% stocks than 6 30% stocks. So, get in at the right time, take my 21-22% and getting out. Investor's Business Daily is invaluable in picking good stocks. You want to find companies that have solid fundamentals and are good strong companies. Then it's just a matter of looking at the charts to find good timing to buy. Don't buy junk.

The Royal Bank of Scotland stock is my experiment in long term stock. Of the $1000 we got at Christmas, half went to the Royal Bank and the other half was invested in stocks. Royal Bank of Scotland has huge dividends (8%) which would make it good for the long term. Stock prices historically are generally up. I set it up to re-invest the dividends. The first dividend should be on March 31.

As of now our porfolio has more than what we started with, even with the few early mistakes I made. I would recommend that people start investing as soon as you can. I like Scottrade and it only takes $500 to get started with $7 trade prices. If the social security changes that are being talked about happens, being comfortable with investments will be good. Investing is a good way to make money without too much effort. There is also Firsttrade which has no minimum for opening an account (which is nice) and just under $7 per trade. Or Choice Trade, which I'm looking at going with for my personal investing. It has $5 trades, no minimum to open an account and no inactivity fees. You don't want inactivity fees and low trade prices are good, especially if you are not starting out with much. I was on ShareBuilder, which has only $4 trades, but you could only trade on Tuesdays and got hit with a $16 fee for selling. I could have actually made money on the Sirius stock if I could have bought when I wanted to. But you want to start with enough money so you are not forced to buy very low priced stocks or get stuck with 1 share in something. Then the price has to go up unrealistically high in order for you to get your money back.

Plus they have some pretty funny commercials on the business shows. A woman is in a bank and says she wants to trade on margin. "You want to trade...butter?" "No, trade on margin." "Oh, I thought you said... wait a moment. Hey, Bloated Fees (large guy eating), what's the current margin rate?" "Well, Useless Overhead, it's 8 and a half. No, nine." "Oooh, nine." Woman: "But that's as high as a credit card!" "Yeah, isn't it great!"
Current Mood: goodgood
Current Music: "The Closing Bell" that I taped earlier

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