What is the best way for a newbie to invest 50K and get a good return with minimum risk? Is a 10% profit a month reasonable without the penny stock risk/return?
post #1 of 40
4/11/08 at 11:41pm
Wow, some terrible advice up to now.
Don't put your money in options unless you know what you're doing and stay away from pennies. Putting your money in a mattress is what losers and people with no character do.
10% profit is NOT a reasonable at all, it's a fantasy at best. That would mean you would turn your 50K into 156K after 1 year and 1.55M after 3. You would probably be amongst the best(if not the best) money managers in history if you did that.
Read books like the Intelligent investor, read investopedia, open up a paper account.
If you really want to buy stocks, appraise the business like you would if it was a private business. That means, determine how much cash you could reasonably get from the company's remaining life and try to get that cash at a big discount(margin of safety).
The best way to lose your money btw is listening to recommendations from people here and on most message boards. This is something you should do for yourself.
And one last thing, trading and penny stocks have nothing to do with investing.