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Author: bannh Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 36696  
Subject: Tell me if I'm crazy, Date: 6/26/2001 8:12 AM
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A little back ground first. I just retired from Avaya, after 30 years with a nice package. My retire should have started in August (so many retired at that time). Other than my severence (due Aug), everything I have is tied up in Lu/Av(401k & Schwab acc)except for a small amount of cash. Received a letter yesterday from Avaya saying I had failed to check this little box when I filled out my retirement papers. Now I'm afraid I might not get my retirement started till Sept. That's a long time.
I had planned to take $2000 of the cash to trade with but now I'm afraid to do that.
Would it be fool hearted of me to try with only $500? I was thinking I could trade the penny stock. Should I just wait? I really don't want to wait, I've waited over a year already and I'd like to get started. Tell me what you think, please.

Barbara
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Author: Jeanwa Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5858 of 36696
Subject: Re: Tell me if I'm crazy, Date: 6/26/2001 8:19 AM
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Bannh, Have you been paper trading? IMHO you should try doing that first!

Some brokers require $2000 min. Which broker were you going with? You know even tho you deposit $2000 with them you can just spend $500 or whatever you want on stock most pay interest on the cash in your acct.

The important thing is whatever stock you purchase...know

Why you are buying it...to trade or invest
Have your entry and exit points chosen
Set stops to protect your capital

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Author: stevieoh Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5859 of 36696
Subject: Re: Tell me if I'm crazy, Date: 6/26/2001 8:21 AM
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Hi barbara, Why not paper trade for a while? Its not the same as real trading but it sure saves alot of money! And the practice it gives you is always a help when you start to put your real $$$$ in the market.

I think Janny did it right - Start with a few hundred and build it up....vs what I did, start with a lot, lose a alot AND THEN build it up...........still building.

What ever you do, start as small as you can, go for the singles and not the home runs.

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Author: Janegayne Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5862 of 36696
Subject: Re: Tell me if I'm crazy, Date: 6/26/2001 8:29 AM
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Hi Barbara,

Sure you can start only with $500 It just takes a little more time!

I just want to advice against pennytrading! It's like with the options!
you can easily make a lot, but if you make a bad entry you can also very easily lose a lot!
As the others said allready...Papertrading for a while is very good.
It gives you a feeling for your strategy. And that's what you have to have.....a strategy of your own, that you're happy with and where YOU know what you're doing!

Good luck

Janny


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Author: bannh Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5867 of 36696
Subject: Re: Tell me if I'm crazy, Date: 6/26/2001 8:39 AM
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>You know even tho you deposit $2000 with them you can just spend $500 or whatever you want on stock most pay interest on the cash in your acct.<

Thanks for answering. I can put the money in an account and use it if I have to for bills? I guess I was thinking I had to maintain a 2000$ balance.
>Some brokers require $2000 min. Which broker were you going with? <
I haven't paper traded yet, I'm not sure how. Don't you have to have an account set-up first? I was thinking I'd just go with Datek, I already had their paper work here to fill out. I'd love to go with someone cheaper but knew I wanted check writing. Does any of the cheaper brokers have that?
>Why you are buying it...to trade or invest
Have your entry and exit points chosen
Set stops to protect your capital <
I've been looking at some of the stock trying to learn all I can about them. Guess that's why I want to start so bad. Some look so good.

Thanks....Barbara

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Author: bannh Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5869 of 36696
Subject: Re: Tell me if I'm crazy, Date: 6/26/2001 8:41 AM
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Thanks Steve. Guess I need to know how to paper trade. I should have ask that question first.

Thanks, Barbara

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Author: bannh Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5873 of 36696
Subject: Re: Tell me if I'm crazy, Date: 6/26/2001 8:50 AM
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Thanks Janny. Guess I'd better figure out how to paper trade. I ordered datak's paper work before I'd even heard about the cheaper brokers. Do any of the cheaper brokers have check writing that you know of? I could put $2000 into the acc if I had excess to it when I needed it. Looks like I'll have to start with the $500 though.
If a stock cost $3 is it still considered a penny stock?
Thanks, Barbara

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Author: Jeanwa Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5874 of 36696
Subject: Re: Tell me if I'm crazy, Date: 6/26/2001 8:51 AM
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Barbara

Paper trading is when you do it for pretend on paper at your desk without actually having an acct or using money.

Say you think zyx stock is a good by at 10. so you write down a buy on a piece of paper then you keep track of the price and where you'd sell. To see if it goes where you think it would. Looking at charts of the past where you say "Oh, if I'd bought that at 5 and now it's ten I'd have twice as much money." It's a good ideas to try it "pretend" before doing it .... looking into the future isn't as easy as looking at a stock and saying "oh I see where this is going" 'cause tommorrow some "news" could send the stock dropping like a rock!

For example

I bought HDWR at 11.76 'cause I thought it was a good buy right there.

However, it went down to 10.65, so I lost value (not money cause I haven't sold yet) but if I'd done it on paper I would have seen that I bought too soon and there was still some down side in the stock then the next time I MIGHT have a better idea of what the stock was going to do.

I don't know if you have to keep a min. you'll have to ask Datek, checks wasn't one of the things that interested me so I don't know about it.

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Author: stevieoh Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5875 of 36696
Subject: Re: Tell me if I'm crazy, Date: 6/26/2001 8:52 AM
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I've been looking at some of the stock trying to learn all I can about them. Guess that's why I want to start so bad. Some look so good.

Barb, I'm sure we all know exactly what you are going through, but let me tell you, it is not easy to make $$$$ trading - it really is very difficult - which is why paper trading for a few months is the best way to start before you ever open an account.

If you must trade with real $$$, know this, Trading is a loosing game - you will lose money, the thing that will make you money is limiting your losses/protecting your profit. Treat every trade as though it is with the last dollar you have and your chances of success at trading should improve. Above all else, the number 1 rule to live and die by is, Protect your capitol.

Its kinda long but IMHO, worth the read http://www.webtrading.com/phantom/preface.htm

Good luck


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Author: RayBH Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5876 of 36696
Subject: Re: Tell me if I'm crazy, Date: 6/26/2001 8:53 AM
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Good Morning Barbara,

I know what its like to be anxious to do something, epecially trading lets face it if you do it right and you make money....its fun...

However, as has already been said "paper trade" I hope you have been doing that already. It might be nice if you would post some of the results of your paper trades so far to encourage others to do the same.

Remember, Barbara, patience is an indispensable trait needed in trading. I would personally rank it as number one.....:0)

ray

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Author: Jeanwa Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5877 of 36696
Subject: Re: Tell me if I'm crazy, Date: 6/26/2001 8:58 AM
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If a stock cost $3 is it still considered a penny stock?

It varies from person to person. I don't really consider a stock a "penny stock" unless it trades otc (not on the amex, nyse, or nazdaq exchanges.

One thing that I have found helpful is to get other people take on the stock...It's still my decision tho'!! and my responsibility.

Like the stock ERTH...It's trading about 3.25 but I don't consider it a "penny stock" and didn't when it was at 2 something. But after talking with others about it here I began to understand how it moved and probably wouldn't buy it now without some kind of news or something.


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Author: phjjr Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5883 of 36696
Subject: Re: Tell me if I'm crazy, Date: 6/26/2001 9:21 AM
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Barbara
You can set up a "paper portfolio' her on TMF.
That is what I'm doing now following some of the advice of the people on this and other boards but looking into their reasoning & learning a system of my own.
The best advice I have heard hear is to protect your profits and it comes from several posters. Know why you are investing (shorting) a stock and set stops in case the market sees it differently.
Don't fall in love with a stock ar a position even though you "know" you are right.
phjjr

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Author: Jeanwa Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5884 of 36696
Subject: Re: Tell me if I'm crazy, Date: 6/26/2001 9:25 AM
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Phijjr.....

You can set up a "paper portfolio' here on TMF.

Duh, Thanks, forgot all about cyber paper! Thanks for reminding me. That is a wonderful idea. Barbara, You just have to click on the my portfolio at the top of the page to start your "paper portfolio"

Phijjr, how you doing with the paper...making great trades?

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Author: phjjr Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5891 of 36696
Subject: Re: Tell me if I'm crazy, Date: 6/26/2001 10:07 AM
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Jeana
Some great some not so good but overall am up about 25% in 2 months.
Took the biggest hit from GRMN when I shorted it near the lockout period & just "knew" it would go down(80%insider owned) stoped out at 15% and haven't looked back. Will look into it again for a possible LT investment as it is a good thing IMO.
I guess you may say I have been short term trading as I have been in and out of several stocks.
I set my stops in the transaction notes and if they are reached I sell or cover after hours allowing a couple of cents depending on the volitivity(SP).
phjjr

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Author: Jeanwa Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5894 of 36696
Subject: Re: Tell me if I'm crazy, Date: 6/26/2001 10:23 AM
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overall am up about 25% in 2 months

phjjr
Good going. You're going to have to share some of those buys with us. Sounds like your doing better on paper than I am for real lately. 'course I haven't ever shorted a stock.
:)

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Author: Calabogie Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5975 of 36696
Subject: Re: Tell me if I'm crazy, Date: 6/26/2001 3:12 PM
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Barbara,

Excellent questions!

A little back ground first. I just retired from Avaya, after 30 years with a nice package. My retire should have started in August (so many retired at that time). Other than my severence (due Aug), everything I have is tied up in Lu/Av(401k & Schwab acc)except for a small amount of cash. Received a letter yesterday from Avaya saying I had failed to check this little box when I filled out my retirement papers. Now I'm afraid I might not get my retirement started till Sept. That's a long time.

Believe it or not this is not uncommon. Most retirement programs have those little "gotchas" so they can hold on to your money a little longer. They make it work for them.

I had planned to take $2000 of the cash to trade with but now I'm afraid to do that.
Would it be fool hearted of me to try with only $500? I was thinking I could trade the penny stock. Should I just wait? I really don't want to wait, I've waited over a year already and I'd like to get started. Tell me what you think, please.


I wouldn't say no to the $500.00 but if it's money you even THINK you might need, don't do it. Also, if you decide to use that money, don't play penny stocks until you know exactly what you are doing. Penny stocks can be dangerous, especially the OTC:BB kind which are often well under a dollar.

I know you're anxious to get started and I can understand that. My suggestion would be to "paper-trade" until you get the full settlement. That will give you an idea of how you will do and you won't be risking any capital. ESPECIALLY if you plan on playing penny stocks. Paper-trading is tough because you know there's no actual money involved but you should trade exactly as you would if you were using real money. One thing you might try is to post your planned entry point on here, how long you plan to hold, and when you plan to exit (sell) that stock. That way you'll see what happens and you'll also get info from everyone who posts here. It's a great way to learn and it doesn't throw money away.

The biggest problem I see with starting with $500.00 and playing penny stocks is that if you lose the $500.00 it will be SOOOOoo tempting to put more money in because you just KNOW that you'll be able to do better. It usually doesn't work that way and you're better off making sure you're on the right track first.

It's tough waiting but posting and reading in here can help pass the time until you're really ready to go.

I hope this helps and we'll be behind you all the way!


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Author: Calabogie Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5976 of 36696
Subject: Re: Tell me if I'm crazy, Date: 6/26/2001 3:13 PM
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Jean,

The important thing is whatever stock you purchase...know

Why you are buying it...to trade or invest
Have your entry and exit points chosen
Set stops to protect your capital


I'm proud of ya girl!! LOL

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Author: Calabogie Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5979 of 36696
Subject: Re: Tell me if I'm crazy, Date: 6/26/2001 3:17 PM
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Stevie,

Barb, I'm sure we all know exactly what you are going through, but let me tell you, it is not easy to make $$$$ trading - it really is very difficult - which is why paper trading for a few months is the best way to start before you ever open an account.

If you must trade with real $$$, know this, Trading is a loosing game - you will lose money, the thing that will make you money is limiting your losses/protecting your profit. Treat every trade as though it is with the last dollar you have and your chances of success at trading should improve. Above all else, the number 1 rule to live and die by is, Protect your capitol.


Just think, some people PAY BIG MONEY for this type of advice! LOL Excellent post man!

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Author: Calabogie Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5984 of 36696
Subject: Re: Tell me if I'm crazy, Date: 6/26/2001 3:21 PM
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Ph,

You can set up a "paper portfolio' her on TMF.
That is what I'm doing now following some of the advice of the people on this and other boards but looking into their reasoning & learning a system of my own.
The best advice I have heard hear is to protect your profits and it comes from several posters. Know why you are investing (shorting) a stock and set stops in case the market sees it differently.
Don't fall in love with a stock ar a position even though you "know" you are right.


More good advice! You guys are great at this! :)

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Author: sonar69 Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5986 of 36696
Subject: Re: Tell me if I'm crazy, Date: 6/26/2001 3:24 PM
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If you must trade with real $$$, know this, Trading is a loosing game - you will lose
money, the thing that will make you money is limiting your losses/protecting your profit.
Treat every trade as though it is with the last dollar you have and your chances of success
at trading should improve. Above all else, the number 1 rule to live and die by is, Protect
your capitol.


Protect profits and LIMIT losses...no matter what. These two rules alone would have save most of my losses in 1999 and 2000 when I followed LTBH.

I spend probably 20 hours a week reading books, message boards, and visiting other web sights. Have been for 2 years now and wish I had more time. Study, study, study.

I like stocks $5.00 to $40.00 and mostly trade QQQ. I think QQQ are an excellent way to start if you are short term. I like lower priced stocks because a $1.00 move is good money if you have 100 to 500 shares. Trading with $2000, $100.00 profit a month is 5%. 5% is huge in my book. I have averaged %8 a month since I started "trading" a few months ago. Mostly I look for strong short term trends in QQQ. Remember commissions. The lower amount you trade with, the higher % commissions are in relation to your profits. I gave up trying to hit home runs every day. Small gains each week that are higher than the bad trades are great. No one ever went broke taking profits. Winning the game is more important than hitting a home run.

In long HDWR $11.30 today. Thinking of getting out at $11.80 or so. Seems stuck here. Short HOMS $ 33.99 today. Going nowhere. I think I will be out by market close. Too iffy tomorrow.



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Author: stevieoh Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5987 of 36696
Subject: Re: Tell me if I'm crazy, Date: 6/26/2001 3:33 PM
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More good advice! You guys are great at this! :)

We all had some good teachers!!! Mainly Cal and Ray!!

Thanks for that too!!!!!!

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Author: bannh Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 6000 of 36696
Subject: Re: Tell me if I'm crazy, Date: 6/26/2001 3:53 PM
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Thank you all. It is great advice and I appreciate. I'll set up my paper account and paper trade first. Take my time about a real account.
I'll get up early tommorrow and make my choices and post them here.

Thanks everyone. I've been very upset about this and you've all made me feel alot better. Maybe the delay was in my best interest after all.

Barbara

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Author: Calabogie Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 6029 of 36696
Subject: Re: Tell me if I'm crazy, Date: 6/26/2001 4:29 PM
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Thank you all. It is great advice and I appreciate. I'll set up my paper account and paper trade first. Take my time about a real account.
I'll get up early tommorrow and make my choices and post them here.

Thanks everyone. I've been very upset about this and you've all made me feel alot better. Maybe the delay was in my best interest after all.


Great decision Barbara and you also got post number 6000!!!

Congratulations!!!!!

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