Modern Midas- The Quest to Turn 2000 Into 10K!

Alright so I've decided to take 2k and buy some stock and see how much I can make it grow.

Since the whole go to school, then get job, and all that jazz is lackluster and my hopes at the highest will be to have a mid-level management job in a cubicle surrounded by people that aren't really doing anything...including myself...

I've decided to try my hand at the modern version of the Midas touch.

I have a regular 401k and all that jazz but I haven't really ever messed with actively playing with stocks...with my own money.

So at my age it isn't uncommon for people to gamble or destroy all their money buying stupid things(or wait...that was five years ago...).

Either way, there are some considerations to make if you are to gamble your money in this way:

1. If you hold the stock for more than a year, any capital gain on the stock is at a 15% tax rate.
2. You have to take into account whatever amount you're being charged to make a trade. Right now, mine is pegged at 10.00 a trade(I might try and find a better company but honestly this one is slightly secure).
3. Avoid a company that pays out dividends as those are nice but if they do it in the middle of a year and you haven't been holding the stock long you could get taxed at a higher rate.
4. Decide on a price to sell and regardless of what is happening, sell at that price and don't be greedy(this is how people lose money)

I'm sure I'm forgetting something, but this is my first time...and well...who knows how it will turn out.

So far I have bought what I will call company A. and in a three month period it's given me a gain of about 8%. For this particular stock I am speculating it will have a gain of about 33% by this time next year.

So WISH ME LUCK!

a reply to: OrphanApology

Good luck, you're doing something I've been wanting to do for a while so I guess for now I'll live vicariously through your experience lol

Good luck from me too, I think you may need it and hope you can afford to loose the lot if it goes wrong.

I have never been a big fan of share trading as I think that unless you have some insider knoledge then it's like a trip to the casino and theres only one real winner.

If I had 2grand spare I would definatley be buying and selling but would look at real material items but thats just me.

Again good luck!

a reply to: nonspecific

No I agree!

I'm definitely viewing this as gambling.

I do though actually have a "strategy", won't say what it is in case it works

If it doesn't work I'll let everyone know what it was.

a reply to: OrphanApology

I did it years ago with someone elses money the problem I had was that in order to not loose the lot you have to spread your bets as it were, by doing so any profit was often offset by the losses.

I got lucky as I read an article about a small company that made computer chips bieng a possible contender for building the graphics chip for the up and coming dream cast and bought a load of shares on the offchance thinking that if they failed to get the contract it would not affect the value too much.

They got the contract and the shares increased by a huge margin as soon as it was announced and I sold the same day.

I think I made about 600% profit in one day for the guy!

a reply to: nonspecific
double

a reply to: nonspecific

Yeah the diversity thing is important, honestly what I'm doing is for gamblers.

If people just want to put their money in something that will grow in the long term then they should always buy an index fund.

A cfo that I spoke to once told me that the group they had that always lost the most money was young, unmarried men because they thought they could "beat" the stock market so they didn't invest in smarter avenues and went the stock trading route.

I've dabbled a bit in the market and have found that the local Indian Casino daily holdem tourneys are much more lucrative and you get a free lunch. Gambling is Gambling...

However take a look at this one....

www.forbes.com...

Doing well for me....especially coupled with support systems.

a reply to: olaru12

I wonder though how the change in federal asset forfeiture law will effect the sale of military "Security" equipment to local police now that there are changes in how they can profit on their stolen goods.

originally posted by: OrphanApology
a reply to: olaru12

I wonder though how the change in federal asset forfeiture law will effect the sale of military "Security" equipment to local police now that there are changes in how they can profit on their stolen goods.

Talk about synchronicity...

Just saw this, thanks TonyS!!

Another good set of stocks to buy are the Government shadow stocks like AT&T, Facebook and Union Pacific Railroad. (Government "shadow" stocks are companies that have a peculiar contract relationship with the federal government, i.e., they are national security type stocks and as such are granted a protected monopoly market preference type status).

Middle managers who don't do anything can hang on in middle management for years.

Meanwhile...the ones who are productive with their time, innovative with their solutions, and smart with their interactions can do fairly well.

Yeah...not nearly as glamorous as spinning the wheel on Wall St.....but slow and steady typically wins the race.

a reply to: bigfatfurrytexan

I've been doing slow and steady for 12 years and it's resulted in getting farther and farther behind in most areas.

New tactic.

Might not work, but neither has the status quo so why not?

a reply to: OrphanApology

I do wish you luck.

I would suggest that it is far better to choose smaller assured returns than to risk your investment capital.

It's all about balance and patience.

originally posted by: OrphanApology
a reply to: bigfatfurrytexan

I've been doing slow and steady for 12 years and it's resulted in getting farther and farther behind in most areas.

New tactic.

Might not work, but neither has the status quo so why not?

Then there's that.

I am not much of a gambler. I may take risks, but they tend to be risks that I can still exert control over.

A good way to get ahead in management is to job hunt. Lateral moves are for chumps....but often once you get a higher tiered job you immediately become more attractive to others. The role I currently have...i never did anything like it. And i spent the first year just trying to get the basics. Nevertheless...i have been having headhunters contact me ceaselessly. If they only knew how terrible I am at the role I currently fill.....

a reply to: bigfatfurrytexan

No I already left the office environment.

I had to, I was at a point where I wasn't moving anywhere and there was nowhere to move to. Couldn't get out of the said company due to a blip on credit from when I had lost some close relatives and had expenses. So it becomes something where there's no way up, no way sideways, and so you either have to take a huge leap or continue to fall behind.

So I am doing a bunch of leaps.

Thankfully, I am at an age where I can handle bigger risks financially(and therefore bigger chances at gains). No kids and pretty good health.

So while 2k isn't that much, I am going to see what I can do with it.

a reply to: OrphanApology

I've got 50 % stocks and 50% real estate. I did a gain of 2000 in one quarter years

a reply to: OrphanApology

Update:

700 bucks so far.

Not 10k yet, but bear with me folks.