[johnnycakes78704]

Hi. I'm new to TL. I've recently become interested in the stock market again. I traded on a stock simulator a few years ago and when I worked for Apple and am almost hanging myself for not investing in them 4 years ago

Anyways, I'm looking to get back into the market. I'm not in yet and just started trading on the simulator again. I've looked at FOREX, the regular markets, and emini futures. I understand how FOREX and the regular markets work but I have not seen a thorough explanation or dedicated broker that serves emini's but I may have been looking in the wrong places.

I don't have $50K to invest with and recently moved to a new city (hence the 78704), so my startup capital is fairly low. I will begin with investing a few thousand and start from there. Disciplining myself with gains is an absolute for me. I still am learning stops, but am not sure if those are available on emini's.

I did do great on the Nuance IPO though and previously on an IPO for biotech, so I'm not totally ignorant to markets. I do like IPO's though, so I may stick in that area to build capital.

Opinions?

[MrPaul]

Originally Posted by johnnycakes78704 »

Hi. I'm new to TL. I've recently become interested in the stock market again. I traded on a stock simulator a few years ago and when I worked for Apple and am almost hanging myself for not investing in them 4 years ago

Anyways, I'm looking to get back into the market. I'm not in yet and just started trading on the simulator again. I've looked at FOREX, the regular markets, and emini futures. I understand how FOREX and the regular markets work but I have not seen a thorough explanation or dedicated broker that serves emini's but I may have been looking in the wrong places.

I don't have $50K to invest with and recently moved to a new city (hence the 78704), so my startup capital is fairly low. I will begin with investing a few thousand and start from there. Disciplining myself with gains is an absolute for me. I still am learning stops, but am not sure if those are available on emini's.

I did do great on the Nuance IPO though and previously on an IPO for biotech, so I'm not totally ignorant to markets. I do like IPO's though, so I may stick in that area to build capital.

Opinions?

Johnny,

First off welcome to the site! Secondly, emini's are typically used to hedge large stock positions or trade. Not very wise "investment" style vehicles due to the immense leverage and volatility. If you are looking to invest, Individual stocks and etf's are the way to go...

[johnnycakes78704]

Thank you!

I saw the emini idea on here, but if individuals are suggesting against it then I won't go that route.

I've been looking at individual stocks and playing with a simulator and doing quite well but admittedly am following trades of investors who have a proven track record with cheaper stocks. I'd rather buy 400 shares of a $5 stock than 20 shares of a $100 stock and work my way up from there.

[SunTrader]

Originally Posted by johnnycakes78704 »

I'd rather buy 400 shares of a $5 stock than 20 shares of a $100 stock and work my way up from there.

Why, is it the belief that a $5 stock has less far to drop? Price should have no bearing on whether to invest in it or not.

For laughs take a look at BRK.A - Class A stock of Berkshire Hathaway Warren Buffett company. Trading around $135,000 a share.

Out of range for most people to invest in. But if they had, a return of 25-50% from this time last year would have been possible depending on entry/exit.
But some who had a few 100's thousands might say, yeah but I can "only" get 3 shares.

[johnnycakes78704]

I've been watching BKR.A stock since it was ~$99,000.

And yes, it is because I think I can get more value from a stock that is $5 than is $100. You are right though, price will not have any bearing on the investment value, but the growth potential may be better although it is on a case by case basis.

[SunTrader]

Originally Posted by johnnycakes78704 »

I've been watching BKR.A stock since it was ~$99,000.

And yes, it is because I think I can get more value from a stock that is $5 than is $100. You are right though, price will not have any bearing on the investment value, but the growth potential may be better although it is on a case by case basis.

I think you understand when you say "although it is on a case by case basis" and if you consider that when looking at whatever price stock you might be considering then OK. Otherwise there is no reason using price alone a $5 stock has better growth prospects than a $100 stock.

Look at GOOG at $650 comparing to GM at $23. Which has greater growth potential. Now whether that greater growth potential turns into stock appreciation is another story.

I trade and invest only through an IRA and use very little funnymentals in my analysis but if I did the current price would be looked at after all other factors were considered. I trade short term using TA so price is the first thing I look at.