Re: Deer Investment and Stock Types
- From: "The Cheesehusker, Trade Warrior" <Iamtj4life@xxxxxxxxx>
- Date: Fri, 10 Oct 2008 10:07:03 -0700 (PDT)
On Oct 10, 12:02 pm, "The Cheesehusker, Trade Warrior"
<Iamtj4l...@xxxxxxxxx> wrote:
On Oct 10, 11:44 am, Steve <sk...@xxxxxxxxxxxxxxxxxxxxxx> wrote:
In article <e86d3f8d-affe-4674-9e4b-7cbabcb6c...@xxxxxxxxxxxxxxxxxxxxxxxxxxxx>,
The Cheesehusker, Trade Warrior <Iamtj4l...@xxxxxxxxx> wrote:
-On Oct 10, 8:55=A0am, Google Beta User <wanyik...@xxxxxxxxx> wrote:
-> (Pardon the naivety)
->
-> Are stocks and investments and real estate something to be monitored
-> daily? i.e. should one be looking at charts, indexes, etc and then
-> getting very excited then depressed....kind of emotionally all over
-> the place based on the stocks *that day*?
->
-> I'd always assumed, granted its probably oversimplified, that
-> investment is long term and diversified.
-
-I would say it really depends on what your strategy is - are you
-trading or are you long-term investing? If the former - then
-imperative. If the latter - no. What's more important with the
-latter are macro-level news items such as *any* sort of allegation of
-financial improriety or changes in management, etc.
Am I a dumbass, or is this a target-rich environment for call LEAPS?
Rapidly becoming so - with the correct securities.
Is that so obvious that I'd have to swim with the sharks and get eaten, or
would I (noob rookie wannabe) have at least a dart-thrower's chance?
Here's the way I'd approach it - you want "base" companies - ones
which actually produce things which are and will be needed in the
future - something like Johnson and Johnson, for example - med
products w/ an aging population which is sort of immune to health care
insurance risk. Stuff like this. Google and other high tech would be
a bit riskier with higher potential reward - but yes, there will be
some tremendous opportunities to buy shares in good, solid, well run
companies at bargain prices - and by using LEAPs (long term equitys
anticipation products - long term options) you can participate at a
lower cost and diversify more broadly.
Also - I'd look very strongly at some of the more speciality index
funds. If you want to be a real contrarian, buying the financial
sector funds will absolutely pay off, for example. Just not yet.
But yeah - time to begin doing your homework and seeing what companies
you like and why. Tip - avoid, for now, any financial credit company
like GE - at least until they spin that unit off.- Hide quoted text -
- Show quoted text -
Quick caveat here that I forgot to put in the last post - do your
homework!!!!!! Know where the strike prices are and look at the
longer term charts to see how long stock X, realistically, will take
to reach that sort of rise. Since you're dealing with an option here,
the math is going to be a bit different than with regular equities -
you have a declining time value and the leap won't reach 50% delta
until it reach the underlying strike price.... If you feel at all
comfortable with this - then by all means Leaps are worth looking at.
.
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