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KaBar

How To Make Money By Investing

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There is no time like the present to begin guaranteeing your financial future. You only have a certain number of "prime earning years" and you should be working at maximum potential during those years. Sure, you might invent Windows95 and retire young and rich, but most of you won't. You'll have to earn it the hard way.

 

Social Security is not, and was not intended to be, a retirement program. It is SUPPLEMENTAL INCOME, that you financed yourself in the form of Social Security Taxes forcibly removed from your paycheck every payday. Of course, your employer is forced to contribute as well, so in order to offset this, he pays you a lot less money.

 

"TANSTAAFL" (There is no such thing as a free lunch.)

 

COMMIT THIS TO MEMORY.

 

To play the stock market, one must be financially able to absorb the losses associated with market reversals. It's really not for the little guys.

However, Mutual Funds spread the risk out over a much broader area, making it much less risky for the small investor.

Stockbrokers and mutual funds traders both charge you a fee to buy stock or MF's and also to sell them. It costs me about $58 to buy and sell a block of stock, so I have to at least make that much to keep from going in the hole.

You can open an account with a mutual funds trader (sort of like a bank account) that will permit you to purchase mutual funds in dollar amounts instead of in blocks of 100 shares, like stocks.

Either buy single newstand copies of or subscribe to a financial newspaper called the Investor's Business Daily (IBD). It costs a few bucks, but it will teach you a TON of information about buying and selling mutual funds. THINK OF INVESTING LIKE GOING TO VEGAS. It's a risk. Sometimes you win, sometimes you don't.

 

IBD teaches that the way to make money is to identify the top 50 mutual funds in the nation. Do your research on the best 10% of them. Set a reasonable investment goal (let's say I buy it at $4.25 per share, and I want to make $2 per share.) I set an automatic sell order at $6.26. If it goes one penny over my target, it automatically sells and I get the profit, plus my money back. You set an automatic sell order for eight percent of the value of the fund. So if it falls to $3.90, it automatically sells. This way, I cannot lose more than 8% no matter what.

 

If you are a guy with nerves of steel, you can try to "time the market." You watch the price of your stock going up or down, and try to time your sale (or purchase) to take maximum advantage of the temporary rise or fall in the price.

 

"Is it really that simple?" Yup. It is. The trick is in deciding on what you believe about stocks, stockbrokers and mutual funds. Over time, people who invested made very good money in the market. The market goes up, and the market goes down, but after 20 years, you'll come out ahead.

 

When you spend money today, you are not only losing the dollar that you blew on beer, but you are also losing ALL FUTURE EARNINGS that that dollar might have earned if it had been wisely invested. That $3.85 six-pack could be costing you more like $40 viewed from this perspective, over a period of forty or fifty years.

 

There are times when it is wise to not be in the market. When the Stock Market goes down, this means that an opportunity for you to buy is "in the making." The idea is to buy when the market is falling, and sell just as it crests the top of the hill.

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Guest PAYROLL

Consider your degenerate audience, KaBar.

 

I think someone likes having his "helpful" threads stickied! This is the sound of nobody listening...........................................

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Payroll: KaBar has ten times over earned the respect of me and many other members of this site. Can you not see that he's trying to help? There are people that aren't as fortunate as to have someone tell them some of the things that Kabar has shared. It's whatever though, I only control me.

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buy a pound of weed from a grower, break it up into eighths or twomps or whatever (the more you break it down the more you make...) and flip it for 30-50% profit after you tax a little for yourself! i should be a business professor.....

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Guest PAYROLL
Originally posted by Dirty_habiT

Payroll: KaBar has ten times over earned the respect of me and many other members of this site. Can you not see that he's trying to help? There are people that aren't as fortunate as to have someone tell them some of the things that Kabar has shared. It's whatever though, I only control me.

Not questioning his credibility, but why try to talk about financial investing on the same forum where people post pictures of their pussies and talk about how to get pills and shit? It amounts to wasted time...you know this. Think, man!

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But, Payroll, YOU were listening

 

And that's who I was aiming at. If I had followed this advice when I was twenty, I'd be rich as a motherfucker now, because of the Time Value Of Money. "It works---while you sleep." If I had only invested the money that I blew on beer and dope, I'd be pretty damned well off, and a lot less scatterbrained.

 

START EARLY--IT MAKES A BIG, BIG, BIG, BIG DIFFERENCE. The curve is pretty flat for about twelve or thirteen years and then the MOJO starts to work and your friggen investment graph takes off almost STRAIGHT UP.^^^^^^

 

Why, oh, why didn't I listen when my stupid ass rich-as-shit cousin tried to explain this to me? He's a total bitch and wealthy beyond belief. I should have LISTENED to him. He was right. I was wrong.

 

He owns Rolls Royces (no shit, this is true) and buys and sells Rolex parts just for the hell of it, and makes good bucks at it.

 

And who says you can't enjoy looking at pictures of beautiful female anatomy and still think about investing and making your fortune? In fact, looking at pics of beautiful female anatomy MOTIVATES ME to go invest and make money so I can afford to convince the owner of said anatomy to let me have a closer look. Know what I mean?

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Mr. ABC

 

No shit, true story. When I got out of the Marines in 1981, a high-school buddy of mine who was working as a programmer tried to explain CDs to me. (It was brand-new back then--nobody knew much about CD's. Cassette tapes were the big deal then.)

He invested in a company that made music CD's. He made money like a motherfucker. I didn't. I didn't make squat.

 

Soon, there will be NEW TECHNOLOGY that outstrips CD's. It will make scads of money. Be there, or be square.

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I started really early.

 

and here's the best thing....

 

(im not sure how it works in the states, but it's solid up here in the Tundra)

 

You can take money out of your RSP and put it towards a property purchase

witout having to pay tax on the interest you would have earned.

It's perfect to buy a house. All you RSP cash doesn't get cut down

at your current tax rate. yeah... new property for me !!!

 

age:23

RSP:seven grand

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Guest SMUGGLER RSH

Interesting stuff. I always wondered whether the CD technology made alot of people money back in the day. But the problem with technology now is it is to fast moving and unpredictable. War is where it is at buy up those stocks in war technologies etc. Sept 11 is a perfect example when the markts re opened the gun stocks shot up fucking high......

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Guest SMUGGLER RSH

Re: Consider your degenerate audience, KaBar.

 

Originally posted by PAYROLL

I think someone likes having his "helpful" threads stickied! This is the sound of nobody listening...........................................

 

 

You know what stupid is so called `HELPFULL` shit talking. If you don`t like 12oz and tend to bag people for using the board then don`t use it. People use it to communicate, but you seem to use it to make yourself feel better by trying to put down others with your stupid and imature comments. If you think your so `cool` and don`t need advice or want to listen then go and live your pathetic life somewhere else........

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Re: But, Payroll, YOU were listening

 

Originally posted by KaBar

And who says you can't enjoy looking at pictures of beautiful female anatomy and still think about investing and making your fortune? In fact, looking at pics of beautiful female anatomy MOTIVATES ME to go invest and make money so I can afford to convince the owner of said anatomy to let me have a closer look. Know what I mean?

 

 

 

this guy is on POINT.

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Just an interesting tidbit, there's a couple "Vought" and "Lockheed Martin" plants right, a matter of 5 minutes, down the road from me. They actually manufacture either missiles themselves, or some of the vital components right here in my neighborhood. On 9-11 you couldn't get close to those buildings, when on any normal day you could drive right down the road.... there was a police man at every single possible entrance, and in between. Wow, right? So, Lockheed has these trains.... they always have like 2-4 cars just sitting there for a long time, they're real flat and burgundy, tall, and tappered at the top, kind look like a thin house. So, me and my friends, have gone through the back entrance of Lockheed and went through this hole in the fence on the employee's recreational soft ball course. And painted the trains.

 

Is it the slightest bit odd to you that a couple of kids can sneak right into a high government security area, and just paint away? I had no idea how serious of an offense I could've been charged with, but I got away with it. I have no idea what, exactly, they are making in there now, but if you wanna invest in war technologies, look up Vought Systems. Lockheed should already be a familiar name and easy to look up a symbol on.

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buy low, sell high.

 

hell i invested all my money at the height of the stock market, when the nasdaq was at 5000+ points, now its around 1250 point. needless to say, i lost a grip of money. remember, diversify.....

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"No Load" Investments

 

A "no load" investment is an investment that doesn't cost anything (or very little) in broker's fees. Let's say you want to invest in Mutual Funds that specialize in recreation. This means the managers of the funds have borrowed money (probably), bought up a bunch of stock in thirty or so recreational companies, formed a "fund" at their company, and are selling "shares" in the fund, which (for example) cost $5.50. So if you buy $500 worth, you get 90 shares OF THEIR MUTUAL FUND. Since the mutual fund is made up of actual stock of these thirty companies, it's unlikely that they will all do poorly at the same time, unless everybody in the U.S. suddenly stops buying skis, baseball gloves, Adidas tennis shoes, weight-lifting equipment and deer rifles ALL AT THE SAME TIME.

The idea behind a mutual fund is to reduce risk and increase your chances of making money. And, of course, the fund managers do okay too. They probably own stock in these same companies, so if you do well, so do they.

 

Since you don't own stock in the actual companies (you own shares in the mutual fund) if Adidas starts to suck, the managers SELL the bad stock, and buy Acme Baseball Bats or some other stock that is doing okay. Traditionally, Mutual Funds do well when stocks do well. But sometimes they do take a reversal. I invested money over the last two years that was going great til the stock market went down. I still own the shares, but they are now selling for $3,000 less than when I invested in them. However, if the market keeps improving, I'll start making money again. If the stock shoots up real high, I may sell my shares, and "take the profit" and re-invest it in MORE shares of mutual funds in some cheaper fund. That way, I get more shares for my money. If they do well, I may do the same thing again. Each time I do this, I am "gambling" that my mutual funds' stock will go up, rather than down. I also could take the same money and put it in my mattress. It will decrease in value, because of inflation. I could buy Treasury bonds, but the rate of interest they pay is very low, and you have to wait until the bond "matures". (A "ten-year-bond" only is redeemable for it's full value after ten years. You buy a $25 bond for $17.50, and when it matures, you can get $25 for it. The advantage is that Government Bonds are very safe, but they don't pay well.) I could buy real estate. I could invest in gold or silver, or both. (Precious metals are very safe, but their rate of return is not very good. Stocks outperformed gold by about three times, over a period of fifteen years.) I can buy stock itself, or stock options (risky), or mutual funds (much safer, fair return) or invest in art (VERY risky), diamonds, guns, etc., etc.

 

Or, I could do nothing. If I do nothing, at some point in the future, I am going to be destitute. This sounds pretty much okay when you are a kid, but the older you get, the stupider it looks.

 

If you want to be able to retire without working, and live a decent life, YOU NEED TO INVEST A BIG CHUNK OF YOUR INCOME WHEN YOU ARE YOUNG. If you invest $50 a week, EVERY WEEK, starting when you are about 20 or 21, by the time you are 65, you will be a MILLIONAIRE SEVERAL TIMES OVER.

 

"YOUR CHOICE." Is it easy? It's not too tough. If I were starting today, I'd go with an outfit like Charles Schwab or another no-load investment firm, and buy mutual funds. They are in the Yellow Pages. I would NOT buy funds that were not "no-load" until I understood a lot about the market.

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No Serious Choice

 

If I offered you a choice between a certain 4-1/2% profit every year, with absolutely no personal risk, and a possible 30% return, but a serious likelihood of being arrested and sentenced to prison for ten or fifteen years, WHO wouild be foolish enough to pick dealing dope over the legal stock market? Answer: Nobody.

 

Every single working stiff has the option to invest in mutual funds, stocks or bonds, or all three, or none. Some choose to become legally wealthy, and some choose to join the FBI's Ten Most Wanted List. And some just choose to be poor.

 

DON'T BE AN IDIOT. BE LEGAL. AND WITH LUCK AND SKILL, BE WEALTHY.

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are there any money market accounts or mutual funds you can get into without having like 2 grand up front? my plan right now is to pay off my credit card ($1600) in a couple of months and start saving up that $2k to open an IRA. if there was a way around that huge initial sum, i'd be doing this shit right now. i have 5% of my income going into my 401K which my employer matches up to 4% (so in effect 9% of every paycheck, only 5% being my money).

i'm thinking with my 401K, an IRA and one or two other big investments, i should be on "easy street" in about 30 years..

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