Investing 102

[sik68]

I was flipping radio stations last night on my commute home, looking for the MNF game. I couldn't believe I heard an ad for obtaining a home equity line of credit. "Bay Area housing prices are up an incredible 20% recently, call us to see if you qualify to borrow against your home to get money in your pocket!"


I'm also happy to report I have a friend who I have HOOKED on THINKING about money and investing. He's turned the corner in a matter of a few short weeks and I know it will positively affect him for the rest of his life. Feels good to spread the knowledge!

[ErikLS2]

Another good, although kind of dull, read

http://www.amazon.com/Millionaire-Mi...aire+next+door

[Vegas69]

Originally Posted by glassman

And Todd, since you see this everyday in your job, is living within your means....

That is one major change I've seen over the last few years. People are more likely to buy economically today. Many have learned a few lessons or were conservative from the start. I still get the calls once in a while from someone with three nickels that thinks they should buy a home.

Originally Posted by sik68

I was flipping radio stations last night on my commute home, looking for the MNF game. I couldn't believe I heard an ad for obtaining a home equity line of credit. "Bay Area housing prices are up an incredible 20% recently, call us to see if you qualify to borrow against your home to get money in your pocket!"


I'm also happy to report I have a friend who I have HOOKED on THINKING about money and investing. He's turned the corner in a matter of a few short weeks and I know it will positively affect him for the rest of his life. Feels good to spread the knowledge!

History always repeats itself. I've already seen some noise of sub prime loans. There is always a hare waiting in the wings.

[GregWeld]

So here's why LIMIT ORDERS don't always work the way you think/want them to.


This morning I thought I'd add 3000 shares of British Petroleum Prudhoe Bay (BPT) to the 5000 shares I already own... I entered a limit order at $86.70 against an ASK of $86.96 --- last trade was showing as $86.75..... so I'm a nickel under the last trade and .26 under the ask price.

By the time I checked my order status - the shares were trading at $86.95

So had I just entered a "Market order" I might have scooped up some shares... as it was --- SO far I'm going begging and my limit order is sitting with only 100 of the shares being "filled" (bought at my limit price).

So here's my point --- there were shares trading at $86.75 (the last print) and I chose to bid under that --- and while trying to be "cute" -- the shares ran another .20

I canceled the order. Why? Because I don't buy on UP days. I'll wait.


I do this stuff EVERY DAY -- ALL DAY.... It's my first love and a hobby. I've been doing this all day every day for years... MY POINT?? You guys DON'T... and I'm buying larger amounts of shares -- you are not.... is it really worth your time to babysit the market for .20 on 100 shares (a whopping $20). And by the way -- I just showed that messing around probably cost me that $20 because the stock ran away from me.

Now --- I'll stay on top of it and I will get my shares eventually -- and before the next X date. But would you?? Or would you get busy and forget all about it -- miss the X date (thus missing a $2.00 a share dividend). This is where you need to learn about YOURSELF and how you invest.

If you're the type that would have got busy and forgot all about the shares --- thus the buy -- and you'd put in a "cute" limit order -- and now you just missed out on "A") the run and "B") the $200 dividend payment for the quarter.... was the $20 "savings" you were trying to get worth it?


Just sayin'