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recxjake
07-17-2008, 12:40 PM
1

Redrum_69
07-17-2008, 12:44 PM
I got some stock to sell you.

Forward me $10,000....

Stewie
07-17-2008, 12:47 PM
Be careful of the "pump and dump." Penny stocks are notorious for being touted (pumped) and then when the price gets right the pumpers dump. And you'll wonder what happened. I'm not saying this will happen to your stock, but be careful.

Nightfyre
07-17-2008, 12:51 PM
Monday I invested in 105 shares at $1.68 of this this stock... China 3G Group... I read about it on MSN money where they have a section that investors/brokers/anyone can rate stocks. This stock was highly rated and they said this will go up.. some are even saying it will go to $8.80 due to the P/E Ratio. I'm young, have extra cash each month. I'm putting 200 into a Roth IRA, 200 into savings, and then I'm playing around with a little bit in the stock market. My question is... is it really this easy? If I had put 10,000 into this stock on Monday I would have already made $1,500 in just a matter of days.

http://finance.yahoo.com/q?s=CHCG.OB

http://msncaps.fool.com/Stats.aspx
ARe you really this stupid?

A) don't invest on your own, the costs of trading will kill you and this is not a buy and hold market.
B) Three rules of investing: Diversify Diversify Diversify. Thank you warren buffet.
C) Invest in what you know. Thank you peter lynch.


Based on what you said, you should probably let a professional do the work for you.

DaKCMan AP
07-17-2008, 12:54 PM
I wouldn't put a penny in any stock recxjake likes. Everything he touches turns to garbage.

Nightfyre
07-17-2008, 12:57 PM
I wouldn't put a penny in any stock recxjake likes. Everything he touches turns to garbage.

That is predicated on the assumption it wasn't garbage before he touched it. Let's review recent history.

A) GM - Was garbage
B) Giuliani (aka 9/11) - Was garbage
C) McCain - Was garbage

Odds are, this stock is already garbage. Just saying.

DaKCMan AP
07-17-2008, 12:58 PM
That is predicated on the assumption it wasn't garbage before he touched it. Let's review recent history.

A) GM - Was garbage
B) Giuliani (aka 9/11) - Was garbage
C) McCain - Was garbage

Odds are, this stock is already garbage. Just saying.

Excellent point.

Nightfyre
07-17-2008, 12:58 PM
C. I shold have dumped a bunch of money into GM on Monday... it's up 20% in the last few days.

You're already breaking one of the biggest trading rules. Shoulda/woulda/couldas will kill you psychologically.

eazyb81
07-17-2008, 01:03 PM
ARe you really this stupid?

A) don't invest on your own, the costs of trading will kill you and this is not a buy and hold market.
B) Three rules of investing: Diversify Diversify Diversify. Thank you warren buffet.
C) Invest in what you know. Thank you peter lynch.


Based on what you said, you should probably let a professional do the work for you.

I don't disagree with any of these points for novice investors, but Buffett is hardly a drum beater of diversification. He's been quoted as saying diversification makes little sense for those who know what they're doing.

eazyb81
07-17-2008, 01:06 PM
Be careful of the "pump and dump." Penny stocks are notorious for being touted (pumped) and then when the price gets right the pumpers dump. And you'll wonder what happened. I'm not saying this will happen to your stock, but be careful.

Great point.

As long as you're continue to sock away money in your 401K, I don't see any problem with using some extra cash to dip your feet in your market. However, you really want to do your research and understand the fundamentals, or you could get burned.

There's a lot of info out there, you just have to filter out the poor opinions from the intelligent ones.

Nightfyre
07-17-2008, 01:06 PM
I don't disagree with any of these points for novice investors, but Buffett is hardly a drum beater of diversification. He's been quoted as saying diversification makes little sense for those who know what they're doing.

Eh, diversify diversify diversify is what we pumped in my high level finance courses. Thats the only one i even know. That and buffet got burned pretty bad pretty recently by not being diversified most recently, I think.

DaKCMan AP
07-17-2008, 01:07 PM
I don't disagree with any of these points for novice investors, but Buffett is hardly a drum beater of diversification. He's been quoted as saying diversification makes little sense for those who know what they're doing.

Which category to you think little recxjake falls into?

eazyb81
07-17-2008, 01:09 PM
Which category to you think little recxjake falls into?

Of course, but the point still stands. Recxjake should certainly stay as diversified as possible with the large majority of his retirement money.

Fairplay
07-17-2008, 01:33 PM
Which category to you think little recxjake falls into?



I agree. But buying stocks, you have to start somewhere. 401K's and Mutual Funds are nice. But stock picking can be fun but challenging. You will still get burned here and there.

And starting out with a small investment to play with i think is good.

I'm not a fan of penny stocks though.

beavis
07-17-2008, 01:42 PM
How about you give me your money, I'll kick you in the nuts, and we'll call it a day.

Swanman
07-17-2008, 01:48 PM
Picking stocks, done over time, unless you are very skilled, will not make you the same return as just investing your money into different index funds. A very high percentage (over 80%) of mutual funds underperform vs. their benchmark index over the long term, and these mutual funds hire people perceived to be great at picking stocks. Lately, I've been just buying a basket of diversified index funds (S&P, International, Emerging Markets, Russell 2000, bonds, commodities). My performance lately has sucked, but so has everyone's for the most part.

Nightfyre
07-17-2008, 01:56 PM
Picking stocks, done over time, unless you are very skilled, will not make you the same return as just investing your money into different index funds. A very high percentage (over 80%) of mutual funds underperform vs. their benchmark index over the long term, and these mutual funds hire people perceived to be great at picking stocks. Lately, I've been just buying a basket of diversified index funds (S&P, International, Emerging Markets, Russell 2000, bonds, commodities). My performance lately has sucked, but so has everyone's for the most part.

The S&P has earned 2.7% annually (or somewhere thereabouts) over the last 10 years. Another problem is that as mutual funds get bigger, they have a more and more difficult time earning above average returns. The biggest mutual funds may as well be indexes.

eazyb81
07-17-2008, 02:39 PM
I agree. But buying stocks, you have to start somewhere. 401K's and Mutual Funds are nice. But stock picking can be fun but challenging. You will still get burned here and there.

And starting out with a small investment to play with i think is good.

I'm not a fan of penny stocks though.

Agree with this. Don't cash out your 401K and start investing in individual stocks like you're running your own hedge fund, but I don't see any problem with using a portion of your discretionary cash to play around in the market.

Once I have kids, I definitely plan on giving them some cash at around 14 years old to start investing in the market. There is so much you can learn when using your own money and knowledge, rather than just sitting back and plunking down cash in an index.

Rain Man
07-17-2008, 02:45 PM
A Chinese penny stock...what could possibly go wrong?

Nightfyre
07-17-2008, 02:45 PM
A Chinese penny stock...what could possibly go wrong?

I lol'd.

CrazyPhuD
07-17-2008, 04:27 PM
LOL do you even know what this company does?

Who wants to start a pool as to when he loses his shirt in this?

General rule for penny stocks unless you really do your homework, go to vegas to invest your money, you'll lose less at the tables.

beavis
07-17-2008, 04:32 PM
I'm thinkng the olympics will help this company out...

I know you are young and think you are going to make a million overnight, but honestly, you'd be better off buying lottery tickets with your money than a penny stock. You might as well light it on fire.

Rain Man
07-17-2008, 04:47 PM
It appears that China 3C is the dominant fax machine and phone cord manufacturer in eastern China, but they're now moving into cell phones.

http://www.china3cgroup.com/C3C/product.html

http://www.china3cgroup.com/C3C/market.html

Rain Man
07-17-2008, 04:50 PM
In all seriousness, you're not investing a lot of money, so it's not like your retirement is banking on this. Traditional wisdom says that penny stocks are ultra-high-risk, so I would advise you to pull out your original investment if your stock rises 20 percent and keep only the profit at risk. That way, if it's the next Wal-Mart you still make money, and if it's the next ... Chinese penny stock disaster ... you don't lose anything.

Bottom line is that if it's up, sell it unless you're really just using purely disposable income and having fun with it.

And you should listen to me, because in 20 years of stock market investing, I think I've averaged about a 1 percent return per year (sigh).

Dave Lane
07-17-2008, 06:43 PM
Be careful of the "pump and dump." Penny stocks are notorious for being touted (pumped) and then when the price gets right the pumpers dump. And you'll wonder what happened. I'm not saying this will happen to your stock, but be careful.

Shhh don't try to teach Reject anything!

Dave

B_Ambuehl
07-18-2008, 05:33 PM
Get your hands on the book Rule #1 Investing by Phil Town. It'll save you a lot of time. If you have an extra $200 and really want to learn sign up for an investools investor education course.

Halfcan
07-18-2008, 07:39 PM
I would put it all in GM-lol

Hey best of luck-you won't make anything unless you take the chance.

petegz28
07-18-2008, 07:58 PM
Stocks trade at those prices usually for a reason. You might get the occasional grand slam but those are far and few between. If you want to invest you need to invest in companies that are making money and sell above $10 a share. Wtih few exceptions anything under $10 does not even get a look-see from me.

petegz28
07-18-2008, 08:00 PM
I bought 105 shares at 1.68 on Monday... closed on Friday at 1.93... good run...

I also bought 450 shares of this at .40 cents a share.... http://finance.yahoo.com/q?s=XOHO.OB

I have two penny stocks to play around with now... I'll see what happens... maybe learn the hard way!

You are living dangerously. Let me know how you feel when you buy 500 shares of something and it goes south on you .30 or so?

petegz28
07-18-2008, 08:04 PM
Get your hands on the book Rule #1 Investing by Phil Town. It'll save you a lot of time. If you have an extra $200 and really want to learn sign up for an investools investor education course.

Investtools is a joke. Total rip off imo. You want to buy stocks for growth I would recommend "How to make money in stocks" by William O'neil. Then learn how to read charts.

The problem with things like Investools is you as the end-user generaly have no clue why they pick what they pick.

Buy stocks that are making money at a 20% clip and you will make money. IF you buy stocks that have a reason to go up, i.e. they are making money you will be just fine.

Wall St. loves to overload you with what stock to buy "today" and give the average investor "50 stocks a day" and such.

petegz28
07-18-2008, 09:19 PM
If this was all I was investing in I would agree... but I'm putting the majority of extra money into a long range roth ira, and a money market savings.

I still think there are much better ways to speculate then penny stocks. Much better ways and safer.

petegz28
07-18-2008, 09:28 PM
Have any tips? I have another chunk to play with...

Yes, my best tip for you is to pick a style and research it an learn it. The market can either be liek gambling or educated guessing, it is up to you which you make it?

If I were you I would learn Technical Analysis and then you can go from there on whether you want to trade stocks or options. I would suggest a mix of both. The best piece of advice I can give you is to always know why you are makeing whatever trade it is you are making. Trading is a counter-intuitive game and I have watched both friends and family lose literally millions of $'s.

And what you must understand is this is serious business, this is not x-box. If you want to just throw money down and hope something goes up then throw a dart at the financial section and go with it.

If you want to be a successful trader then learn about what it is you are doing. It can be the most exciting thing you ever have done in your life as well as the most humbling. Just remember as in sports so in life...being right 1 out of 3 times is considered good.