LemonAden

Ive been so freekin busy i have not had time to post in a few weeks (legal shit been dealin with) so i hope everyone is well and cool, etc.

Someone in my family got a large sum of money for an injury that happened to them. They told me that they are fucking around with penny stocks, etc.. I freeked out and said no no no, but this person will not listen to me.

I know Jon told me once that hedge funds are the way to go, but he did not get that much money..

So basically i want to help him not waste his money. He wants to invest it and make some money back and hes going to do the penny stocks shit no matter what i tell him.

So my question is, do you guys do forex or penny stock shit, and if you do, which programs do you use for it.

Forex and penny stocks is what he is interested in and i dont want to see him lose his money so all suggestions (real ones) will be kik ass. Thanks much!

A

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engaged

this is gambling and the $ is going to be gone. plain and simple that is what will happen.

also, you won't be investing in any good hedge funds unless you have tens and tens of millions, even then you probably won't be able to get in on a good hedge fund, no matter what.

Bofu2U

Forex is a VERY LIQUID market. I put $40 in one day and took out $300 a few hours later, but this was PURE LUCK!

Stock markets.. tell him to try IPO's and use www.IPOHome.com - you'll find some good money makers. I recall one that I did that nearly took 800% up that I picked (my dumb ass didn't put the money up, though).

Hope the link helps, IPOHome alone has made my friends a lot of money.


Edit: Why not just put in a high yield savings account? www.FNBODirect.com - 6% FDIC-Insured savings account with a 1 million dollar limit per account. Hello!

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ck256

There's no get rich methods in the stock, hedge fund, penny stock, etc market that aren't about the same odds as gambling the money.

If they don't know what they are doing, find a low cost index mutual fund, put the money in there and forget about it until they do know what's going on.

Or join an investment club and gain experience that way.

good luck

dsm56

I'd recommend options trading, although I havnt really tried it myself, still waiting on my reg info.

With options you can do "straddles", where you are betting that the stock will move. You don't even have to say up or down, just bet on it moving. And its pretty cheap, and the returns you can make are massive. If a stock moves a lot, you can turn $100s worth of options into tens of thousands of dollars.

Im really annoyed i didnt buy some options before the blackstone ipo, could have made a lot of money.

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krazyjosh5

Um. Doesnt forex move money in the >$10,000 range? You cant just put a few bucks in forex and take it out..

LemonAden

Good info guys..

Right now he is buying penny stocks.. I dont know what will happen but i told him to do forex because its easier i thougth.

Isnt there a website that lets you trade forex,etc? Tells you what to do and when to do it?

i want to get him away from the stocks because it is a gamble and i dont want to see him lose his $$

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Bofu2U

The minimum to open an account is like $250, that's what I did.

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LemonAden

where did you open your forex accounts? How do you track it all?

I know there is software for it, ive seen it on infomercials, etc.

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BetaGamma

we're all experts aren't we?

Bofu2U

I signed up for a Forex.com practice account, and they give you the software for trades for free. Not too bad of software, auto buy & auto sell at certain prices, etc. Helps with not taking massive losses.

Tracking is within the software, keeps track of open orders, previous orders, etc.

PS - If you want me to refer you to my account rep he can get you/your friend started, let me know.

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blackthought286

The person in your family is taking a huge risk right now in the market. Especially in penny stocks. That is a highly specialize area that you can make money off of luck but if you don't know what you are doing you will crash. Most penny stocks are otc (over the counter) so they don't have to report their earnings and business state as thorough as other companies. There are web sites that follow them pretty regularly but nothing like a big exchange keeping tabs for me.

If they really want to take a risk but in a less violatile area than penny stocks why don't they do small caps. At least it's still cheap but the information is still reliable.

If they really want to do penny stocks they can do the spam trick but again that is also highly risky and unless practiced can still lose them money. I read a lot about Forex but have not actually traded in it. So I can't really give you a personal viewpoint on it.

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robertdotcom

OFFTOPIC: Happy Bday LEMONADEN! I Wish you the best gay relationship you can have. Cheers!

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BeerHat

He's going to lose all of his money if he keeps it up. Penny stocks are manipulated (ever seen those spam emails you get?)

Tell him to put it in a s&p 500 index fund and go back to work.

He could also buy a business with it, but anything is better than penny stocks.

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geekcognito

I wonder why you and everyone else hasn't just thought of the simple plan of having him bankroll your online endeavors such as affiliate marketing. Last I heard, you were doing pretty well.

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"Never confuse movement with action." ~Ernest Hemingway

"While you have lost some money, you have also gained some knowledge. So in the end you may have not lossed at all. Good luck bro." ~ Sumitdhawan09

tigertom

Best investment advice I ever read was in a book by Scott Adams, the author of Dilbert. It went something like:

• First own your own home outright,
• then save up enough to last a three months / 6 months / a year off work,
• then get health insurance,
• then pay off all outstanding debts,
• then put aside money for your children's education.

After all that you can think about investments.

Your friend sounds more like a gambler, and he's got a lot of company in this world. Greed is one of the seven deadly sins for a reason; it burns you up.

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TigerTom

maximus

Lemon,

Forex takes some knowledge to make any money. I'd stay away from it. If you had to choose between the two evils, I'd go with penny stocks because at least those are real (or usually scam) companies. If you can talk him into moving up from penny stocks into companies that are $1+ per share, that's a huge increase in quality of company over the 5 cent piece of shit, reverse merger, illiquid scam companies.

LemonAden

thanks for the bday wish.. heh

He did want to invest in my 'online endeavors' and the recording of my album, but i said no. I will not and never have accepted money from my family for anything.

I feel bad about it all. The penny stock bullshit, and some other stock in israel at some place where the geologists think there is goig to be a huge oil stike.,, so he bought 700 stocks of it cheap.

If they strike oil, he will be rich, if not, hes is out of a lot of $$, thank god the stocks are under $10 bux right now.

Forex is something i personally have always wanted to learn. If i could learn it, i could teach him.

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projectv3

i think you were thinking about forex made easy... the infomercials make it sound like its candy

if you're serious about forex read everything.. literally.. on babypips.com
i printed out a huge stack and read every single bit of it. u'l realize its not as easy as it looks, especially when you're dealing with high leverages, if it folds you're fucked just as fast as you are in luck if it rises...

Dullspace

Blackthought is absolutely correct. Pink sheets are not regulated by the SEC the same way stocks on the NYSE or NASDAQ are. This makes them ripe with fraud, spamming, and controlled prices. Penny stocks are one hundred percent gambling. You need to realize there is a big difference between being an educated investor who takes calculated risks for profit, and someone who gambles.

Also, every singles Forex strategy or program your relative has been introduced to is a scam. Just look at Forex scam - Wikipedia, the free encyclopedia . Its not like it would have a Wikipedia entry for no reason...

This is good info Lemon. There are lots of safe and popular index funds and mutual funds that would be great for this money. Sure, you may only see 7% or 8% yearly when I shoot for about 11% with stocks, but you don't have to educate yourself very much and will make vastly more profit than just a bank account. Pretty pretty please PM me if you have any more questions about ETFs. I know a lot more people in my personal life who have gotten extremely wealthy with disciplined value-based investing than anyone who chases get-rich-quick schemes.

These two on your list are dumb. One big financial advantage of owning real estate is the opportunity for leverage. Because you can borrow so much money on a house, the gains are multiplied out. I'm personally a stock market guy, and not a real estate guy, but the cheap borrowed money in RE is great. Also, there are lots of debts that aren't worth paying. Say I had a student loan at 3.7%, and I could get 5% guaranteed in my savings account, it would be wise for me to pay minimums on the loan to compound savings.

Bottom line Lemon: your relative is inexperienced with managing money. There's nothing shameful in it. It's just time to educate yourselves on responsible investing before he does something dumb that he will regret. Get the money in a savings account immediately, and take 6 months to learn how much fun and safe healthy investing can be.

greenvy

Babypips.com Great site for all your FOREX info......

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ImagesAndWords

Here's another investment tip, although not related to stocks:

Buy one or two high-profile, .com domain names with great type-in value in the 5 or 6-figure price range (depending on funds available for this). Any super-valuable domain name is not gonna lose its value anytime soon. In fact, value will only go up and there will always be eager buyers who will want it for a higher price than what was paid for. In the meantime, he will enjoy a nice trickle of ppc revenue from the type-in traffic with parking at a place like Sedo.

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LemonAden

i would rather help him get into forex than doing penny stock shit.

Good sites and good info.

I am thinkign about opening a forex.com account myself and trying to learn it, but realistically, how much $$ do you need to put in to actually make a profit from it??

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yast

Aden,
first,dont "help him to get into forex" if you self dont know what you doing,dont want to sound bad,buts that just stupid.
Trading Forex isnt easy,dont believe what you see on the commercials.
its like everything in life,if you want do it good(earn money),learn your ropes.
First of,forex is VERY speculatively and volatile,coming in part from the no-regulation status(there is no exchange,no fixed prices,trading 24/5,OTC style,no rules on selling/buying like ie in the future market etc) and on the other hand from the big guys wich realy DOMINATE and PLAY the market.dont underestimate this,if you observe the charts long enough,you will start to notice the games they play,its just insane.
If you are serious about forex trading,give yourself time and learn the basics,
get a demo account(like you did) and trade virtual until you feel comfort and sure ,knowing what you doing and not just gambling.Learn about the big players(ie how central bank statements affect the market),observe how economic data releases affect(there are plenty important every day mostly) and what they actually mean,get your head around currency correlations and how they can help you in your strategy,how to do a fundamental and technical analysis,about the market opening times and the usual pattern they develope,how to setup a trading plan risk management,how stock and bond markets correlate with currencys,the same goes for commodities.
Whats about your broker? to trade successfully you have to understand actually how the system works,what are the differences between a market maker(ie forex.com) and a ECN,and the true interbank system.
I could go on with the list,but i guess you got the point
So if you are serious,invest the time,observe the market few hours a day,learn to read the economic data releases,read books and forums etc
and when you fell prepared,jump in SLOWLY.
Have in mind,if you trade stocks,you analyze corps.If you trade forex,you
analyze countrys,so everything economic related is your preferred lecture from now on
some starting points:

Forex Forum, Forex Calendar, Forex News @ Forex Factory - very good economic calendar and forum
Forex Street. The Foreign Exchange Market - good info resource
Investopedia.com: Forex Articles and Insight -get your basics up
Trade2Win Boards - goo trading board in general
Foreign exchange market - Wikipedia, the free encyclopedia - worth a read
Bloomberg.com - of course !

almost forgot,you will need also a live news service,very good one to start out is Trade The News - Live Audio Breaking News Analysis and Futures Calls sign up at fxcm.com for a mini account just to get the news plugin wich is provided by Thomson IFR one of the top names for live economic data.Also have in mind that you maybe need a charting software,depends on your broker,more research to do ;
And for last,a book i recommend to anyone who wants to dabbling forex:
Amazon.com: Day Trading the Currency Market: Technical and Fundamental Strategies To Profit from Market Swings (Wiley Trading): Books: Kathy Lien

if you need a few pdfs,you know who to pm
last word,be carefully with forex.com,they are a market maker and love to widen spreads,specially in volatile times,do a good research on brokers before you go with one,a good broker is the half way.
good luck on your mission




l

bartimus

The retail forex markets and the penny stock markets are a ripoff for the uninformed and uneducated.

The best money is in index options. Stock options can be manipulated if their volumes and open interest are thin.

My advice would be for your family member to not consider investing any money without several months of education on the subject. All brokers earn a living by commission and their best clients are those with "extra" money looking to make more. They will trade you into and out of everything under the sun. You might make some money on the trades. They will earn a commission on each trade every time until the money is gone.

LemonAden

jeez.. so much info and really appreciated. Thank you very much

I dont think he would be able to learn all of this so i guess he is going to do with his $$ what he wants to do.

I told him to just open a business with it.. like i am doing.

This affiliate marketing shit is great, but i got my music, and my cooking.. so in the next few months i am going to go .inc (jeremy helped me a lot with this info on how to do it).. Then im buying a little restaraunt (already have the menu). Im going to let Ami my roommate run it with my boyfriend derek and a few other friends, all while doing aff marketing, etc.

Then from there, gotta buy the house. SO much to do, so little time to do it

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Reefer420

If your relative is serious enough to put in many hours learning forex, i would choose that over penny stocks any day of the week. Due to its huge size, the forex market is the most efficient in the world, and lends itself well to technical analysis techniques - you can go to elitetrader.com or other trading sites, buy a ton of books about the subject, and do some serious studying.

try things out with some practice accounts, buy metastock or neuroshell, or tradestation, work on his strategies, and play around until he feels confident to put in enough money and play for real.

This is not an easy thing to do, and it is a FULL time job - trading is one of the hardest skills to master and if he isn't going to put his ass to work learning it then he might as well go to vegas and bet on black.

If he wants to learn without risking a ton of his cash, he can apply to be a proprietary trader at any number of firms (most deal w/ equities though). I did this for a while, and made some good returns (I put 5k down, spent months learning at a desk, traded 250k, ended up making 40k that year...though I didn't do well enough to keep at it too long)- but I also worked my ass off and viewed it as a job, not a casino.

It is very possible to make large returns as a trader - but not if you aren't willing to put in the work... then you are just flushing money down the drain.

If he's not, he should just build a well diversified and balanced fund - how much $$$$ did he get? After taking into consideration inflation, fees, etc - you should be able to take out 4% a year for life and have the portfolio keep its same relative value over time. For every 1M you have, that's an extra 40k you can take out a year...

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Dullspace

Lemon,

Forex trading is for very seasoned investors who know what they are doing and make extremely big plays on high leverage. I can't fathom why you would want to anyone, either yourself or your relative, to try and "learn" this as a first method of investing. Out of the 30 posts in this thread so far, only a couple of the guys are being rational. Foreign exchange is not the kind of thing where you read a forum for a couple weeks and then start raking in bucks.

I'm begging you pretty pretty please start with Investopedia.com Tutorials: Building Blocks and the Basics of Investing and learn from there. If you must have the excitement of high volatility, there are plenty of crazy plays you can make in stocks, so don't think its somehow pussy investing. Really, when you sit down and think about the worlds most famous and successful investors, they were all disciplined and in stocks. Warren Buffet, Peter Lynch, Benjamin Graham, all stocks.

I know everyone wants to have some end-all get rich quick scheme but I'm sure half the people in this thread have never invested in their lives. Forex is just their plan to turn their first $1mm into $100mm or something like that. Please be responsible and put this money in a high yield savings account until you are comfortable enough with index funds and mutual funds.

Right now ING Direct is offering 4.50% APY and HSBC Direct is offering 5.05% APY. Insanely good for liquid accounts that are FDIC Insured.

Savings Account Information Page

HSBC Direct Online Savings Account

engaged

i don't know how much $ your friend has, but I park my cash in a Vanguard Admiral Treasury Money Market. 5% yield or so, no state tax since it's treasuries and 100% liquid. There is a 100K min. for this one, but there are some other great Vanguard products out there with 3k and 10k minimums, with slightly higher fees. Good place to leave some $ when you don't know shit.

illkity

Mutual funds. It's not sexy but pretty damned reliable. Should be able to squeak out 10% a year at least over the long haul. Just be sure to mix it up. I have money in international, gold, oil and domestic funds.

StarkReality

Exactly, there maybe more money in forex or penny stocks, but swimming with the sharks isn't really a good idea if you don't know very well what you are doing.

Those who earn huge money are so successful because there is a constant flow of newbies like your friend who are looking for a quick buck and end up with all money lost.

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