Investing 102

[slow4dr]

Originally Posted by GregWeld

For the AVERAGE INVESTOR -- that is buying a relatively small number of shares at a time... I wouldn't worry about trying to figure out exactly when the market is low... Rather, I'd just buy at regular intervals and it should average out over time. The key is to be invested - and to stay invested.

It always seems like you're speaking directly to me. I moved funds to my just opened Roth IRA this week. I've been watching every single one of my stock picks go down each day this week so I've been hesitant to pull the trigger. These are going to be long term holdings and I chose them specifically with that intent so I just need to sack up and jump in.

[Vortech404]

To get your stocks to 5% your either going to have to increase
Your cash or buy more stocks in different company's.

John

[GregWeld]

Originally Posted by slow4dr

It always seems like you're speaking directly to me. I moved funds to my just opened Roth IRA this week. I've been watching every single one of my stock picks go down each day this week so I've been hesitant to pull the trigger. These are going to be long term holdings and I chose them specifically with that intent so I just need to sack up and jump in.

Without divulging how much you have to invest -- remember that you don't need to buy an entire position all at once... and you don't need to invest 100% of the funds you have all at once. If you have $4,000 ---- try to identify what it is you want to buy - and how many shares total - and then just invest $1,000 and wait - see where we're going - up or down - and put some more to work. Or if you want to own 20 shares of X -- just buy 10 now - and wait and so on.

[slow4dr]

Originally Posted by GregWeld

Without divulging how much you have to invest -- remember that you don't need to buy an entire position all at once... and you don't need to invest 100% of the funds you have all at once. If you have $4,000 ---- try to identify what it is you want to buy - and how many shares total - and then just invest $1,000 and wait - see where we're going - up or down - and put some more to work. Or if you want to own 20 shares of X -- just buy 10 now - and wait and so on.

Like you've said before....."Scale in" ........

That actually brings up a question. The law says I have until Tax day 2016 for the 2015 IRA investment year. Do the funds just have to be placed into the account before Tax day to count for 2015? Or do I have to actually invest said funds before Tax day?

[SSLance]

Originally Posted by slow4dr

Like you've said before....."Scale in" ........

That actually brings up a question. The law says I have until Tax day 2016 for the 2015 IRA investment year. Do the funds just have to be placed into the account before Tax day to count for 2015? Or do I have to actually invest said funds before Tax day?

You just have to have the funds into the account... It can sit there in cash all it wants too...

[GregWeld]

Originally Posted by slow4dr

Like you've said before....."Scale in" ........

That actually brings up a question. The law says I have until Tax day 2016 for the 2015 IRA investment year. Do the funds just have to be placed into the account before Tax day to count for 2015? Or do I have to actually invest said funds before Tax day?

Just funded. Nothing says you can't hold cash in an account. So you're good to go.

[Vince@Meanstreets]

Thats why I love to stash in KO.... that stock just sits flat no matter what is going on with the market. And its a divi stock. win win

[GregWeld]

Originally Posted by Vince@MSperfab

Thats why I love to stash in KO.... that stock just sits flat no matter what is going on with the market. And its a divi stock. win win

All accounts NEED "steady Eddies". People get upset when the market is going up and their steady eddies just kinda plod along. They think they're "losing out" on all the big gains. But man are they happy owning them when the market is crappy and the old steady eddy is holding up their entire account.

That's the thing about investing - and everything we've discussed for the last half a zillion pages....

Don't get greedy
own some steady eddies
own dividend stocks - so you're earning while things are flat or down
own the best of the best - so you feel good about what you own
be patient
buy when things are "on sale"
don't load the boat with too much of any one thing - the 5% rule
scale in
scale out
watch for fundamental changes - they can go either way

[GregWeld]

Boy is this market poopie....

I remember discussing many of the Wall Street darlings - IPO's of late - late being within the last couple years.... since there were so many big ones that came to market.

Just noticed GoPro (GPRO) which many of us use to capture our track events etc.... has just absolutely tanked since hitting it's euphoric high of $65... They just announced layoffs (they coat it in PC speak of realigning with the needs of the company. LOL)... and it's now trading at $14.61

JUST OUCH -- even if you managed to buy on the first day.

I have some "oil and related" that are just as bad. Not picking on GoPro.... just saying - sometimes these IPO's don't pan out with the hype they come on the market with.