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  #21  
Old 12-20-2005, 10:46 PM
wickedgoodtrader wickedgoodtrader is offline
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Default Re: What to do with a little money?

[ QUOTE ]


And to think that my parents almost talked me out of opening a margin account, thanks 2+2

[/ QUOTE ]

LoL.. i had the same predicament with my parents. Imagine telling you parents your taking out a home equity loan and will be trading it on margin! They loved that one.. however they can't say much as I am 23 years old and own my own home and business. I MUST know what I am doing!

I've almost got my dad convinced to drop 25k of his own money in my account and I'll just manage it right along with mine.
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  #22  
Old 12-20-2005, 11:46 PM
steaknshake925 steaknshake925 is offline
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Default Re: What to do with a little money?

why not keep playing poker? Do you think you're not capable of handling poker and school at the same time?

4.9% of 10k is 490...you can make that in a week playing 5/10

investing is good and all but your return will be so much higher with poker, especially with only 10k
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  #23  
Old 12-21-2005, 12:05 AM
DWarrior DWarrior is offline
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Default Re: What to do with a little money?

I have enough to play poker, this is the money I saved that I want to save for tuition.
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  #24  
Old 12-28-2005, 02:13 PM
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Default Re: What to do with a little money?

wfmi split today and is up 3-4% with the announcement that they will be a part of the s&p 500
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  #25  
Old 12-28-2005, 03:24 PM
Ray Zee Ray Zee is offline
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Default Re: What to do with a little money?

pay off all debts with any rate higher than say 6%. consider being totally debt free in life. it makes your decisions about living to the fullest easier.

put what you have left into an acount that you can feel safe about and get to your money quickly if needed. have enough for unexpected things.

whats left that you wont need for a few years look into alternative investments that you know alot about and inveswt wisely and very causiously. if you amass alot more than you need than speculate if so inclined.

if you are on these boards you are a gambler. gamble your money at your gambling specialty and invest your profits conservatively.
you will become very rich one day as opposed to the risky way where you may become very rich or may become not.
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  #26  
Old 12-29-2005, 05:19 AM
Maulik Maulik is offline
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Default Re: What to do with a little money?

[ QUOTE ]
pay off all debts with any rate higher than say 6%. consider being totally debt free in life. it makes your decisions about living to the fullest easier.

put what you have left into an acount that you can feel safe about and get to your money quickly if needed. have enough for unexpected things.

whats left that you wont need for a few years look into alternative investments that you know alot about and inveswt wisely and very causiously. if you amass alot more than you need than speculate if so inclined.

if you are on these boards you are a gambler. gamble your money at your gambling specialty and invest your profits conservatively.
you will become very rich one day as opposed to the risky way where you may become very rich or may become not.

[/ QUOTE ]

This is good advice.
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  #27  
Old 12-29-2005, 01:03 PM
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Default Re: What to do with a little money?

I highly recommend the book "trend following" by michael covel be on your investment book reading list.

A trend following newsletter which I use is http://www.investment-models.com/

That guy has a 34 year record of success, the fee is $250 annual subscription, which is very reasonable. and you can utilize his recommendations with either buying dia (dow stock index) or qqqq's (nasdaq stock index) or options on those instruments for higher leverage. Or just buy mutual funds which mimic an index of the dow or nasdaq.

That being said, you indicate that your 10k is primarily for school costs and should not be put into the stock market.

Your best option is interest bearing accounts such as cd's or high interest savings, until you can allocate the funds for more than one year.

Profitable investing in markets is not a short term (less than one year) enterprise unless you are very knowledgable. Trading, like poker, is a zero sum game, and there are more sharks trolling for fish in the markets than at any poker site.
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  #28  
Old 12-29-2005, 01:24 PM
buffett buffett is offline
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Default Re: What to do with a little money?

And Covel's 34-year CAGR is ....?
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  #29  
Old 12-29-2005, 06:23 PM
Sniper Sniper is offline
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Default Re: What to do with a little money?

[ QUOTE ]
And Covel's 34-year CAGR is ....?

[/ QUOTE ]

Based on the info on the site (which I had to put sunglasses on to read)...

It appears that he's recommended using 2 different mutual funds and a timing model..

PA Mutual +21.5% annual compounded over 34 years (10K -> 6.9 mil)
Nicholas +16.2% annual compounded over 34 years (10K -> 1.5 mil)
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