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Monday, August 6, 2012

15% Return Made Easy.

This post I am planning to start getting my routine a whole lot more focused and good. The thing is, right now I am planning to make my schedule so that it would be best for me and the readers, so everyone would be happy.

But first, I have to show you guys my portfolio on Investopedia, maybe show you guys what is going on.
Kablam! I got myself a nice nifty 15% Return on Investment, at least that is what is projected, I honestly have no idea and it could tank. I'm pretty happy, because of the fact that I have all of my money invested in stocks, which actually a pretty bad idea. The reason why it is a bad idea is because of the fact that stocks are volatile, and the risk level of stocks is high. 
Luckily, the profitability could be higher than some other ways of investing, and because this is a simulator and I am doing pretty well on it after all, who cares? I'll lose it all.

Now, here is the real deal. After all, I recently told you guys that I have started an actual stock investing account with E-Trade, (Actually my dad set it up a long time ago but it hasn't really done much, meaning it hasn't been invested into anything at all.)

As you know, I have less than $200 to invest. But luckily, I have had some good things happen to me with even such a low investment amount, I have gotten 5% return in less than 1 month. That is absolutely crazy. I am pretty happy about what has been going on and I recently decided to see if my investment choices and character were good for this portfolio. (By the way, I invested in DEM, a commission-free ETF that was offered by E-Trade, it is all International Emerging Markets and what I noticed, just makes the effects of the S&P 500 really blow). Meaning, if the S&P 500 were to go up a point, then this DEM ETF would go up 1.5 Points. If S&P 500 Drops one Point, then the DEM ETF would drop 1.5 Points.

I was hoping to ride the market's lows and sell on the market's highs.

Back to the Subject, E-Trade offered a free analysis of what kind of investor you are and then told you what kind of allocation you should have. My allocation was for a moderate risk investor, and this is the huge difference I had in diversification.

Check this out. It turns out that my allocation was basically 2/3rds in International holdings, and 1/3rds in just cash. I don't really think that was good, and E-Trade thought so too. They wanted me to get stocks, mostly large cap stocks for safety and small cap stocks for volatility. I was pretty much ready to apply this, until I realized one thing:

COMMISSIONS. They would eat me alive, because having just under $200 is not enough to apply this kind of portfolio. I needed a lot more money just to handle commissions as I would probably execute more than 7 Trades (4 of them Stocks) to apply an extremely well-diversified portfolio, meaning I would have roughly $36 in commission alone, more than one-fifth of my investment fund alone just sent to e-trade in commissions alone, so I was like, "nah." 

I knew this was the right way to go, but I couldn't just switch to that kind of portfolio immediately. I needed more funds, and I was thinking of racking up some cash online to deposit in this account. (I have a ton of online businesses running.)

So I'll just stick to riding the market right now, I can't just switch because I also have to think about how I was going to be screwed by commissions and people have to understand that some large cap stocks are selling for more than my entire fund combined!

I'm pretty disappointed, but I'll get enough funds one day. Trust me.

LASTLY, I was talking about a new schedule, which will be implemented as soon as possible. I've decided to start writing blog posts every Monday at 4-5 pm, I might not do it later on as school starts again, but who knows? Because I have soccer doesn't mean I can't work on my blog.

Lastly, I have a comment question for the readers: Do you guys have investment portfolios of your own? If so, tell me how much risk you are taking. 



Thursday, August 2, 2012

Ive been busy.

Sorry if I just haven't talked to you guys enough, I was busy doing some things that I can't wait to tell you about. All I can tell you is that I was once writing a guest post on another blog. You can go check it out here:

So pretty much, that was all and I was just lazy. I'll tell you guys more about some things I have done.

Examples: I started an actual etrade account, I started domain flipping. I was going around the city, and I'll tell you guys about some stock tips.

Since I'm doing this blog post on my iPod touch I don't have the tags so you guys can share with your friends. Please do so, it would mean a lot to me.

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