The road to investing

How do you start investing? I don't know, but I plan to find out. This is the story of my adventures in investing. I am a complete beginner with no prior experiance, and I want to share my thoughts and problems with you!

Friday, October 20, 2006

Alright, some more time with Cramer today, he has a lot to say and I have so little time to read it.

Alright, let's see... I need to decide which of these stocks is a 'trade' and which is an 'investment.'

Ok.

Now, I need to decide what my catalyst is for my trades and sell as soon as the catalyst leaves. Hrm... Nvidia's catalyst: Windows Vista
When will the catalyst leave? Probably about a week after Vista comes out. I expect a big rush to buy video cards and motherboards when people learn they can't run Vista because of their slow computer (Of course they'll learn only AFTER they purchase)
Why am I not investing in Microsoft then? Well, In my humble opinion, Microsoft is a trap for failures. They are constantly in trouble with the law over their monopolies and they are just a money monger. Not worth the trouble (or the risk of them getting caught with something bad up their sleeves before Vista comes out, like say, breaking privacy laws with their 'genuine advantage update.') Ok, Microsoft is planning on split releases, one in November to business and one in January to consumers. That means the Christmas rush is out for Nvidia to consumers, and businesses don't get presents.

Most everything else is an investment, I'm in for the long term on these guys.

Ok, next up let's check out some other people let's try the motley fool they have a list of 13 rules to get you started... I've read through the first 3 so far. They've got a book in there somewhere, that's a lot of reading. Ok, so...
Step 1: Know what it is to be foolish... Check
Step 2: Pay off credit card debt... I don't own credit cards--Check
Step 3: Set reasonable expectations... Well I know I won't become a millionaire, and I'm only in this to see if I can actually do it (hence why I'm not putting hundreds of dollars in the fund) so... Check.
Step 4: invest in an index fund... Ok... No check there. I'll have to look into that some more.

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