Sporadic (spastic) update number two: Stocks

[tcepsa]

I don't think stocks are what I originally planned on posting about here, but I've been meaning to write something about them for a few days now so this is as good a time as any.

I recently completed the second (and arguably more important) step in getting my IRA up and running--I bought stocks. I now own small fractions of four different companies. So far, they are doing well. I can see why day-trading holds the appeal that it does; the temptation to sell now, while I am ahead, is very strong. If I can set aside enough money to do so, I may consider opening an account with someplace like E-Trade (which has smaller transaction fees) and doing something like that just to see whether I can make it work. That's something more for the future, though, once I have a better understanding of what's going on.

It's really kind of a weird feeling. I may get deeper into some of the psychological aspects of it for me later, but right now... it's just... different and unusual, in an exciting kind of way. I own small bits of companies. And the amount that I can get paid for those bits of companies can (and usually does) go up or down, sometimes drastically, over the course of any given day. And then I can offer them up for sale at whatever price I want (as far as I can tell) and if someone else in the market wants to buy them, then I get that money back. It's almost kind of like I'm running my own business, in a way, that buys and sells bits of other businesses. It's wild. Especially the part where I haven't been plunged into abject poverty.

Peripheral epiphany: Even though I don't keep as strict or tight a budget as some folks, maybe the way I handle my money can still work for me. Maybe it's another one of those "no one right way" sorts of things...

(also, current uptime is now 33 minutes. Things ain't looking so good for Windows...)

Comments

[tcepsa.livejournal.com]

*nods* It seems to be the case that many of the mutual fund managers, whose job it is to essentially be top-notch traders, often still have a lot of difficulty picking stocks that will beat the market. Which is why, if I do end up trying it, it will be with money that I would have spent on luxury stuff (e.g. flashy video card, new PS3, etc. ;) and not on rent or food (and it will probably go towards the same if it ends up growing ^_^)

On the off chance that you're curious, where I began is books. I've been reading about/"researching" this sort of thing for probably over a year now, and I just now am feeling comfortable enough with the ideas and the risks to get started. Part of that was a lack of knowledge, and part of it was building up my finances to a point where I felt comfortable that even if I did lose everything that I put in, I would be able to handle it physically, mentally, and emotionally.

[kiss-kass.livejournal.com]

I kind of like to watch, but I don't have money to play. For my 401(k), I took the advice of an advisor years ago and split it between high, medium and safe stocks. The biggest chunk is in high right now (50%), then medium(30%) and a small bit in the safe stuff (20%). As I get older in increments of 10 years, I move more in the safe direction. As to which funds I pick, I look at their past 10 year earnings and go with the ones with the best returns.

Not very sophisticated as far as philosophy goes, but it has made money 90% of the time and is fairly fuss free.