General Thoughts
  • Get started NOW!
    • Practice by staring to watch different markets.  Mark prices and dates pretending to have purchased.
    • Some investment need a minimum amount, but start saving in a piggy bank or a separate savings account.
    • Investments that have a low initial investment minimums are cryptocurrencies, CDs and stocks.
    • High interest loans/credit cards should be payed off first. It is a sure liability generally higher than any sure asset.
  • Find the right account(s) and/or advisor(s)
    • Do your homework, investments and advisors are not all the same. Once chosen, test to make sure they are what you expected. Do not settle for ones you do not like.
    • Online brokers have the lowest fees for self mangaged and advisor managed.
    • Multiple accounts may be needed for different types of investments.
  • Put safe guards on account(s)
    • Always choose a very strong password. And of course do not share this password with anyone!
    • Put limits on investments.
  • Diversify
    • Overall diversity would be between major categories like bonds, cash, cryptocurrency, precious metals, stocks, etc.
    • Also diversify within each category
  • Use your head and heart
    • Use your head by checking news, charts, statistics, etc.
    • Let your heart play a smaller part in your decisions.
  • Never let your investments go unmonitored
    • Review them often if simply to keep up with their current status.
    • It is good to do a yearly rebalancing.
    • If you do not want to manage your investments, then go ahead and find a good advisor.
  • Always keep taxes in mind
    • IRA accounts can be used for day trading. There will be fees, but not taxable events until withdrawing for retirement.
    • Any investment is considered a short term investment when held less than a year. This means higher taxes!
    • $3000 worth of investment losses can be written off each year.
  • Growth vs Income
    • Younger investors can be agressive and lean toward growth investments.
    • Older investors usually lean toward income for security.
    • Different stocks can cover any mix needed.
      • Stocks with no dividend are usually growth stocks.
      • Stocks with dividend are usually income stocks.
      • Some stocks have good growth and have pay a dividend.
    • Cryptocurrencies and precious metals are generally considered growth investments.
    • Bonds, CDs and mutual funds would be income investments.
  • Watch for cycles
    • Precious metal are usually inverse to other investments like stocks.
    • When quality stocks have a large drop...research and consider buying. Some are quick and some are long drops. So, judgement is definitely needed.
      • WMT: All of 2015
      • RHT: 2016/12/21
      • GE: All of 2017
      • COST: June 2017
      • DE: August 2017
    • Industries have cycles.
      • SIX: Always dips though Summer...then earning come in!
      • DIS: After a big movie...earning can give the stock a jump.
      • SCI: The baby boomer are getting older.
      • Industries and raw material suffer more than consumer goods in a poor economy.
    • Is a stock a hot trend? You can ride the wave, but be ready to unload when the trend is over.
      • TSLA: Has had a good run, but are having issues with facotory equipment and competitors.
      • NFLX: Too many competitor and P/E is way too high.
  • Opportunity cost(s)
    • If an investment is not performing as expected...consider unloading for something different.
    • Choice of invest or buying luxury items.
    • High interest loans/credit cards should be payed off first. (same as above)
    • Participate in ESPP
    • Participate in 401K