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I made +$81,750 in stock!!


MoNkEyT88

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That is why my REAL buying is occuring now. Yea, you can lose half your money if your stock goes from $1 to 50cent, but the stocks I'm invested in were worth way more than a buck.

 

Besides if my market place infusion dose not work (becuse of stock bought), bend over a kiss your butt goodbye.;)

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  • 1 month later...
Honestly with a million dollars you wouldnt have to trade to make a living. Just put it in a long term account with interest. 4% is $40,000 a year.

 

I know three people who tried that with various seven and eight figure sums. None of them had enough discipline to live off just the interest and only one of them has six figures left in the bank. All three bought $50K+ plus cars, all three quit their jobs and took long vacations, and all three upgraded their homes or sold and moved up.

 

Seems that most people, when they get a million dollars, think they are millionaires and start spending as such.

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Yeah, I think most will actually go in debt after winning the lotto or getting alot of money. I figure If I was to have say a million dollars, Id spend a little to finish my car and buy a motorcycle and then use the interest to get through college. Work as an engineer making good money and having the interest pile up as spending cash or for going towards a home... but its easier said then done.

 

Right now Im just going to spend my 10 cents!

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Looking at your stocks and saying "I made $xxx.xx today or I lost $xxx.xx today is a waste of time and makes it much harder to do what is really necessary to make money in the long run, which is to leave it the hell alone, or keep adding funds to your investments regardless of what the market does. When you buy and sell you pay fees which cut into your bottom line. Index funds and bonds aren't as glamorous, but in the long run they'll do surprisingly well against the guy who buys today and sells tomorrow and has to pay the commensurate fees and taxes to a broker and the gov't. Buying what everyone else is buying inflates a stock's value to the point where it's pretty unrealistic to expect it to be able to continue to produce gains quarter after quarter, year after year, which is where bubbles come from. Selling when everyone else is selling just locks in your losses. Buying low is hard to do, you don't see people running out to buy right now do you? Selling high is even harder, didn't see those same people running out to sell 6 months ago, did you?

 

If I sound like a guy who just read The Four Pllars of Investing by Bernstein, well... guilty as charged. FWIW, the majority of my investment dollars are going to go to real estate and my entrepreneurial adventures, but I like Bernstein's ideas and found that they suited my preconceived notions of how the market works and who makes money and who loses it pretty exactly, in addition to filling in quite a few gaps in my knowledge. I'm not done reading or learning, but this was a good start, and I particularly liked the historical examples of previous bubbles and busts.

 

http://www.amazon.com/Four-Pillars-Investing-Building-Portfolio/dp/0071385290/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1228778797&sr=8-1

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