I Am Not a Hype Investor

I am not a hype investor.  I’ve seen it many times over the years.  People get hyped about a stock because of a media buzz or worse…a social media buzz, and get taken advantage of after they put all this money in the stock.  Whether it’s a penny stock or one on the major exchanges, there are folks who are going to inflate the value of a company in order to jack up the stock price and then cash out off of everyone else’s expense who have put money in believing the hype.  I’ve been there, I caught the hype bug over a penny stock and it did go up for a day or so off of the buzz, then it tanked and I lost some money.  One of my friends lost more than I did.  Thankfully I didn’t jump in with any large amounts.  

Take your time and study the value of a company over time.  If there is no information about the company on the web, then I wouldn’t invest in it.  Let the big spenders and cowboys have the wild west.  I’m investing to build wealth for myself and my family.  I look for bargains when prices of stocks go down and get in on the upswing.  I also focus on dividends for monthly income and overtime the value of my investments has grown.  Have a long term plan not a short term get rich quick scheme.  This will help you continue to add value to your investment portfolio. 

Rich Dividend Investors Getting Out of Dividend Stocks

According to an article in Yahoo Finance, high income investors and dumping dividend stocks because of their fear of higher taxes on dividends with the re-election of President Obama.  This is a perfect buying opportunity for those of us that are not making over $250,000 a year.  The price of these stocks are coming down and will make them more affordable to buy larger quantities making the dividend yield more attractive. 

 

Here’s a link to the article:

http://finance.yahoo.com/news/why-investors-dumping-dividend-stocks-175502252.html

Market update 11-12-12

Now that the market is selling off like crazy and even met the 200 period moving average I will say again what I said before… now is not the time to "play" the market.  There is entirely too much volatility and no one knows what the market will do on any given day.  The best bet is to buy up secure (and I mean secure) dividend stocks whose price fluctuations are not too large, and collect your monthly and quarterly payments.

Dividend stocks under $10 to watch:

AINV

BLC

DCT

HIMX

CIM

Binary Options

A buddy of mine turned me on to binary options recently.  It looks like an interesting way to play the market.  My basic understanding of it is that the time frame of expiration is reduced down to days or minutes and you have to decide whether the price will go up or down in that time frame.  The amount is not important, just the fact that the price went above or below your predicted price makes you money. 

To trade these without making it seem like gambling, you should watch the stock or currency to see what it does on a “normal” day to get a feel for the stocks tendencies.  I would definitely use all the regular techniques of moving averages, stochastics, MACD, Bollinger bands and volume to plan your entry and exits as well.

One company he checked out to handle the trades was Cedar Finance.  There are others out there that trade binary options.  He was focused on Forex and he made $200 the first few days trading around $50 at a time.  He lost all his gains however the following few days which should give you an indication of the volatility involved.  To be fair he is not a full time trader so I guess someone who watched the market more regularly could possibly make larger sustained gains from binary options.

Here's the website: 

http://www.cedarfinance.com/FAQ