So I know this is an educational and instructional blog, however, I've decided I want to add more of a personal touch to it. To do this, I'm just going to keep readers up to date on things I am doing in my life that are relevant to blog posts I write about. Well, onto my blog post:
So I have decided to get involved in the stock market. Now I have been involved for quite some time, but now I am doing it just by myself, and I've chosen to do this through E*Trade Financial.
I'm starting simple with $500 and seeing where it takes me. Like I said, it is possibly one of the worst times to enter the stock market when you have the limited experience I do. Yet, isn't it a good time as well?
Companies we know are strong enough to pull through these tough times are in fact at their lowest in months if not years! As well, often these companies are so cheap, if they go under your loss is an acceptable trade-off.
Let me give you an example: Freddie Mac (FRE) is currently valued at $0.82 a share. If you buy 100 shares, thats $82. Now that may be a lot of money, and since I'm only invest $500 right now im only buying 10-30 shares this week, but let's do the math shall we:
If FRE jumps to $1.18 like it did last week, then those 100 shares will be worth $118, making you $36 in just one day. My brother bought 500 shares of FRE last week Monday for about $0.48 a share. Well, he's getting me a nice Christmas present I hope, haha.
Anyways, all I'm saying is if you have some money to spare, and you already have long term safe investments, then think about finding some cheep stocks that look like they are going to have a boost in the next six months.
In particular, look up the immediate federal investments the Obama administration plan to increase starting January 20th. The most notable ones which i am investing in are infrastructure companies such as U.S. Steal (X) and public institution construction companies. Obama plans to spend a lot of money on basic infrastructure right away. Also, I've noted Freddie Mac, although extremely volatile, because of announcements recently that FRE and FNM as government sponsored entities may be employed once again by Congress to manage bad mortgages amongst other things.
Anyways, I'm dragging on. I'm going to have my blog posts that are actually worth reading up by Friday. As well, I plan to write a review of E*Trade and if I do i fact like using it.
well, have a great day, and talk soon. E-mail me if you have any economics questions, however, if you want to know about certain stocks, ask Jim Cramer instead of me ;)
Until next time,
Kyle W. Gay
kylewgay@gmail.com
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