7 ms·

My advice to you is to have a long timeline. If you try to turn it into a million in 1 year you're going to take too many risks and fail. Diversify your inves

My advice to you is to have a long timeline. If you try to turn it into a million in 1 year you're going to take too many risks and fail. Diversify your investments. Putting $100K in 1 stock is how you lose money. Try picking 10-15 companies in different industries: technology, healthcare, finance, commodities, etc. Do your research and pick companies that have a lot of upside potential. For example, if you wanted to make a bet that the mobile space is going to be the future of computing, which seems pretty likely, start buying up suppliers of tablet computers. ARM holdings, Qlogic, etc, find all of the chip makers that make chips in an iPad and research each one of them. Finally, I would recommend you protect your earnings. My portfolio is up 35% in the past year, and I keep trailing stop limit sell orders on all of my securities to protect my winnings. The global economy is uncertain enough right now, and who knows if we're going to see a repeat of fall 2008 again (my bet is we are). I want to lock in my earnings. Consider pair trading, or hedging yourself in other ways. Definitely think long-term, protect your earnings with stop limit orders or hedging and pair trading. This is the only way to come out ahead of the market.

wagerlabs 16y ago
I think there's money to be made in trading Apple against Nokia, RIMM, etc. This just needs a LOT of research. I agree with the rest. I'm not planning to use more than 25-30K if I trade and 0.5-1% of that on every trade. Proper money management and risk controls are key.
- _delirium 16y ago
  It's not impossible, but pairs trading is something a lot of full-time analysts research, and hedge funds put a lot of money into it, so you're going to have to have either luck or some kind of unique insight to find pairs trades where there are significant unexploited arbitrage opportunities left.

wagerlabs 16y ago

I think there's money to be made in trading Apple against Nokia, RIMM, etc. This just needs a LOT of research. I agree with the rest. I'm not planning to use more than 25-30K if I trade and 0.5-1% of that on every trade. Proper money management and risk controls are key.

_delirium 16y ago
It's not impossible, but pairs trading is something a lot of full-time analysts research, and hedge funds put a lot of money into it, so you're going to have to have either luck or some kind of unique insight to find pairs trades where there are significant unexploited arbitrage opportunities left.