Posted by bayonetxwork
I'm a college student not in the business field but I've done my fair share of research and wish to start investing once I get some more money saved up...I want to get into the day trading aspect with penny stocks and what not...I know theres a lot of risk there, but oh well, we'll see how it goes haha
Posted by ncordless
I bought my first stock when I was thirteen years old. I bought ten shares of St. Paul Insurance and and twenty shares of MicroTech with my paper route money. My dad wanted to teach me about investing. I held both companies for 1 year. I lost about 20% on the St. Paul and scored huge with the MicroTech... the stock doubled in value, split, and then doubled in value again.
Recently, at the height of the recession, I began purchasing cheap banks. I am doing so with a long-term view, and plan on holding them for at least 5-10 years while they make a recovery. I got some Citigroup for dirt cheap. My hunch is that in 5-10 years the shares will be worth somewhere close to where they were in 2006-07. Who knows, maybe I will lose it. But to me buying when everyone else is scared and selling when they are acting irrationally optimistic seems like a decent strategy.
My advice in this economy is that it really is a buyer's market if you can afford to hold on to the shares for a while. Expansions last much longer than recessions and buying at the trough (low point) is a good way to ensure you will get a return.
I also suggest investing in companies you know and respect. If they make a good product, chances are they will be around for a while.
Whatever you do... don't buy a bunch of gold. There is a reason that crap gets sold on the commercials of talk radio and not at your local broker. It is a doomsday mentality kind of investment. Unless you really wanna play the hunch that the global economy is going to collapse you are better off putting your money in something else. Gold is like that box of 7.62x.39 bullets you keep in the basement "just in case". But gold is way too volatile to put anything in that you can't afford to lose.