If you had $500 to spend...

[lv2xlr8]

As straightforward as the title is, if you had $500 to invest in a stock or stocks which would you pick?

I'm sure you're wondering why the price is so low but it makes it that much more difficult (also will be a useful technical exercise for myself.)

The stock should have the biggest return in a 6 month period (relative to your initial investment), can be very volatile (which it essentially will be) and preferably in the US Market.

[CSSVT]

Right now I'd probably go with Sybase (SY). The section of the industry that they're in is currently growing pretty rapidly within the US. Other than that I have no reason other than it seems like they're pretty well managed.

[retardude48]

I would get Intrepid Potash (ipi). Looks like they are at its bottom. Expecting 47-52 within the next 2 weeks. Looks like a report tom. concerning surplus of corn which will drive this stock lower and earnings coming out on the 13th may send it soaring to around my expected price range.

[lv2xlr8]

Right now I'd probably go with Sybase (SY). The section of the industry that they're in is currently growing pretty rapidly within the US. Other than that I have no reason other than it seems like they're pretty well managed.

I would get Intrepid Potash (ipi). Looks like they are at its bottom. Expecting 47-52 within the next 2 weeks. Looks like a report tom. concerning surplus of corn which will drive this stock lower and earnings coming out on the 13th may send it soaring to around my expected price range.

Those stocks seem a bit high priced. I meant a total of $500 as the whole investment goes. With those stocks you'd only be able to buy minimal shares unless you think that's still the way to go.

[zozozo333]

Those stocks seem a bit high priced. I meant a total of $500 as the whole investment goes. With those stocks you'd only be able to buy minimal shares unless you think that's still the way to go.

Well the percentage gain is all that really matters, right?

[benchrn]

CCMJ = at 0.0018 - will double in the next 10 days

[ZaNoob]

Look for a good quality stock that is currently undervalued due to market conditions and make that a home for your $500. Sure you may not make money as fast but a positive gain is a positive gain. Beware of penny stocks. They are easily manipulated, most have low liquidity, and you can lose your investment in no time. If someone says you could have doubled your money then think that you could have easily halved your money. Most important, if possible, is to check the track record of the person hyping stocks. Even if someone has a positive track record do your own research. To day there is only one person I would trust in my trades without question and that person is a member of this forum.

[aiki14]

I don't think $500 is a large enough amount to take a position in anything and you should put it in the bank until you have a larger amount to invest.

[cramerica1972]

I don't think $500 is a large enough amount to take a position in anything and you should put it in the bank until you have a larger amount to invest.aiki,as you know i am with mystockfund,and i invest $100/month in mostly dividend stocks...sure it isnt much,but it is better than spending $100/month on videogames LOL.i am building 5 positions,it will take time but i am young so.......:turtle: snail pace for me .

[pa-sale]

With only 500 to invest it would be hard to be diversified. I personally would wait until you have more capital and then invest in a broad mutual fund. Then you can trickle little amounts into it monthly or whenever you have the cash. Do some research, some mutual funds have very low minimums. Props to you starting off, you are already ahead of the game.

[Imperator]

if you have a $10 broker fee... it would be $20 to buy and then sell it.

you would need 20/500= a 4% gain just to cover the transaction.


BEAV would be a good choice though.

[MaryKay1965]

First, I would sign up with a discount broker, such as Zecco.com. They have a $50 minimum and each trade is only $4.50. So, from the start, you are saving from higher priced brokerage firms. Granted, Zecco is a bare boned brokerage, but your trades will get executed, without a problem and in a timely manner. I have used them for about a year without any problems. (If you can build up your cash/equities up to $2500 or more, you will be entitled to 10 free trades/month and then each additional trade is only $4.50/trade.)

As for my stock recommendation, I would recommend CLNE. This is a company, out of California, that converts diesel engines to run on LNG (liquified natural gas). T. Boone Pickens owns a 40% stake in CLNE, so I feel like the company should be "safe." The stock has had an excellent run since July 1, 2008 from approx. $11/share to present at approx. $14.75/share. (35% gain)

This is also a stock, so far, that I have in my portfolio, that I don't have to "babysit" on a day to day basis. You could also add to your position as your financial situation allows you to. Make sure to do your own DD, though........Good Luck

[aiki14]

aiki,as you know i am with mystockfund,and i invest $100/month in mostly dividend stocks...sure it isnt much,but it is better than spending $100/month on videogames LOL.i am building 5 positions,it will take time but i am young so.......:turtle: snail pace for me .

You are correct, I should have said to forget trading and use this sort of strategy. Limit your commissions and put money in whenever you can. Thanks for correcting me.
I think in terms of trading and forget there are other methodologies that are appropriate for the new investor.

[lv2xlr8]

Thanks for the feedback guys. I'm already signed up on scotttrade. I've been thinking about UNDT because I like the company's make up and it allows me to purchase a lot more shares that I can hold on for a quick shot up or a long term goal.

Other companies that I have my eye on are WM, SIRI, FCEL, HYDG, USS, UAUA, DYN, CNEH. Some stocks that were mentioned were good stocks to invest in but when your capital is so low, it just really isn't worth it with only a handful of shares.

[CSSVT]

my capital is low (not much higher than yours) and I'm investing in regular stocks like the one i suggested. If you do enough research then you'll be fine. Don't follow the pack, look for tips and play your own game.

Most of my investments (well, all) are things that I've bought due to my own research and reasoning and everything that I've found myself has done reasonably well. Watch Cramer and you'll learn lots of tips. I'm just getting started but the way I'm doing things, personally, is a small long term hold and a few small/medium short term holds. If you're looking to do short term holds then set a date that you want them sold by and stick to it. NORMALLY you'll choose something short term based on current conditions (oil, dollar, foreign markets, etc) and if you turn them into long terms it'll screw everything up.

I'm sure lots of more experienced traders will crap all over my post but you really have to chart your own way of doing things and mix and match what works for you. Don't jump the gun....WM for example I've had on watch for 1.5 weeks due to this forum however if I had bought it instead of what I decided on instead I'd be way down right now instead of almost positive. WM's down 21% in the past 2 or so weeks. Keep in mind that you can lose money just as fast as you can gain it so research research research.


With all that typed, if you're still looking for suggestions this one still may be a bit on the high end of your range but it's a different sector than what is normally posted here. they have growth potential for you to build off of, just reached a 52-week high, aren't effected by oil and foreign turmoil, and have held relatively consistent growth since going public. The symbol is VNUS....research them and see if you like em, i think they're the next company I'm going to invest in...should pull back a little between now and friday then continue previous trends next week.

[aiki14]

my capital is low (not much higher than yours) and I'm investing in regular stocks like the one i suggested. If you do enough research then you'll be fine. Don't follow the pack, look for tips and play your own game.

Most of my investments (well, all) are things that I've bought due to my own research and reasoning and everything that I've found myself has done reasonably well. Watch Cramer and you'll learn lots of tips. I'm just getting started but the way I'm doing things, personally, is a small long term hold and a few small/medium short term holds. If you're looking to do short term holds then set a date that you want them sold by and stick to it. NORMALLY you'll choose something short term based on current conditions (oil, dollar, foreign markets, etc) and if you turn them into long terms it'll screw everything up.

I'm sure lots of more experienced traders will crap all over my post but you really have to chart your own way of doing things and mix and match what works for you. Don't jump the gun....WM for example I've had on watch for 1.5 weeks due to this forum however if I had bought it instead of what I decided on instead I'd be way down right now instead of almost positive. WM's down 21% in the past 2 or so weeks. Keep in mind that you can lose money just as fast as you can gain it so research research research.


Got your umbrella? Just kidding, I actually agree and disagree with your post.

I agree completely that you need to make a plan and time frame and stick to it. Do your own research as well, and play in a space you know, both good tactics. And I think you need to find your own way, that suits you to be successful.

I disagree strongly with "look for tips" if you mean that in the stock tips sense. If you're gonna rely on tips let a pro manage your money. Use strategy tips or methodology tips as you see fit, but remember most amateurs fail at this, and right now even the pro's are not looking that great on average.
Don't follow the pack? Sorry that's wrong from a trading perspective. You want to surf you need to follow the wave, and the key is to get on and off at the right time.

[CSSVT]

Got your umbrella? Just kidding, I actually agree and disagree with your post.

I agree completely that you need to make a plan and time frame and stick to it. Do your own research as well, and play in a space you know, both good tactics. And I think you need to find your own way, that suits you to be successful.

I disagree strongly with "look for tips" if you mean that in the stock tips sense. If you're gonna rely on tips let a pro manage your money. Use strategy tips or methodology tips as you see fit, but remember most amateurs fail at this, and right now even the pro's are not looking that great on average.
Don't follow the pack? Sorry that's wrong from a trading perspective. You want to surf you need to follow the wave, and the key is to get on and off at the right time.

I guess I should've specified better. Not sure how to explain what I mean by don't follow the pack but what I meant on look for tips was to look for tips on what works best in spotting the next big break, etc. Gotta fail or almost fail before you get good.

I guess what I meant by "don't follow the pack" is don't look at a ton of people throwing money at a stock and automatically assume it'll be right for you. Many people here day trade from what I can tell. Use the WM play for example. WM is fine if you day trade it. Get in when it drops, let it rebound a bit, get out or get out before it drops again. If you have only 500 bucks you're not day trading....short term holds on a stock like WM (and IMO financials at the moment in general) aren't going to make you enough money to be worth the time...not at this point anyway.

Take me for example: I own stock in tech, medical, and transport at the moment. The transport is a short term hold to play against oil (got screwed yesterday for the first time in 2 weeks) and the medical is a short term hold because the company has revolutionary technology and is showing strong growth (it isn't the VNUS mentioned above). My long term hold is in tech and is a strong company that doesn't fluctuate much and can make money as time goes on.

[benchrn]

On the 11th I suggested CCMJ at 0.0018 - today it spiked to 0.0035!!! you would have doubled your money. there is still some more room in it. I am looking at the charts and it will go up to 0.0045 - 0.005 range within a week.

I got in at 0.0015 and sold 50% at 0.0035.

CCMJ = at 0.0018 - will double in the next 10 days

[none9999]

I am not bashing CCMJ or anything.....heck, I know nothing about it at all....but I would like to warn the newbie that these are the kind of stocks that I lost money on early on. Since then, I have decided not to put any money on any pink sheets and rarely on OTCBB stocks. I would rather take the smaller profits than double my money in a couple of days stocks.....helps you sleep better at night :top:

But then, this just might be my opinion but I just wanted to tell you to be very careful with these kinda stocks.

Disclaimer: I have no interest whatsoever in CCMJ, and I hope for you that it really rises bench!! :beerglass:

[Homie2982]

yea i although i would recommend saving more money you could easily do options they are a cheap alternative at leveraging on a stock when i first started i had 1000 then over time made it to 10000 so i would tell you save and play carefully if you dont care for the funds go the highest risk you can like buy some 180 apple calls as i write this they are at 2.20 so if you buy 1 contact=100shares it will cost you 2.20 and if it goes about 180 you can see that contract go anywhere to 5-6ish a nice gain.

[ZaNoob]

On the 11th I suggested CCMJ at 0.0018 - today it spiked to 0.0035!!! you would have doubled your money. there is still some more room in it. I am looking at the charts and it will go up to 0.0045 - 0.005 range within a week.

I got in at 0.0015 and sold 50% at 0.0035.
Congratulations on your pick and I'm glad it doubled. That's +1 for your track record. You have to understand my pessimism about hyping the penny stocks. There are many places that hype so many penny stocks and the only history you'll ever hear from them is that of the two to three stocks that broke out and really took off. They never mention the rest that disappeared like water in the desert.

[dusouth]

remember when looking for advice on a public forum, your gonna get all prospectives. don't be quick to listen to everyone at the same time:sheep:you'll get into trouble fast.... take it slow....watch the market and put "your" money where "you" see fit. I've learned fast that you "will" lose some (maybe all) your money.:thumpdown: Your trading style (day, swing or buy and hold) will affect how you invest and sometimes you will have to use all of the styles to get ahead in this game. I too started with $500 and didn't know what to do with it. I used AAPL and a money mkt acct to earn money, now some days I lose $500 and don't think much of it....8).

Here a TIP if you want it........ It's not WHAT to buy...It's WHY are you buying it?

[benchrn]

Congratulations on your pick and I'm glad it doubled. That's +1 for your track record. You have to understand my pessimism about hyping the penny stocks. There are many places that hype so many penny stocks and the only history you'll ever hear from them is that of the two to three stocks that broke out and really took off. They never mention the rest that disappeared like water in the desert.

I sold the remaining holdings today 25% at 0.0045 and 25% at 0.007

i agree its riskier but the upside is soo much greater. YOu just have to have tight stop losses adn have to be disciplined about it.

[benchrn]

I am not bashing CCMJ or anything.....heck, I know nothing about it at all....but I would like to warn the newbie that these are the kind of stocks that I lost money on early on. Since then, I have decided not to put any money on any pink sheets and rarely on OTCBB stocks. I would rather take the smaller profits than double my money in a couple of days stocks.....helps you sleep better at night :top:

But then, this just might be my opinion but I just wanted to tell you to be very careful with these kinda stocks.

Disclaimer: I have no interest whatsoever in CCMJ, and I hope for you that it really rises bench!! :beerglass:

wish you had bought some and sold today :)

[computeraces]

wish you had bought some and sold today :)

wow.... good call.... .01 now. up over 200% just today.

How did you know? Did someone recomend this one to you? Got any others?

[benchrn]

i had been following this stock for a month before I entered into the trade. I do get recommendations from people but those recommendations go into my watch list. I then apply my own models on those recommendations and enter into a trade when i feel most confident on executing. atleast if it doesn't work out i am myself to blame.

Problem with these boards is that people follow the "pumps" blindly and don't do their own analysis.

[computeraces]

i had been following this stock for a month before I entered into the trade. I do get recommendations from people but those recommendations go into my watch list. I then apply my own models on those recommendations and enter into a trade when i feel most confident on executing. atleast if it doesn't work out i am myself to blame.

Problem with these boards is that people follow the "pumps" blindly and don't do their own analysis.

Can you elaborate on how you apply your own models? Not doubting you or anything, just want to learn how you saw it so I can try to use the info on looking at my own stocks.

[wallstreetsedge]

with $500 i be going nuts and placing bets on earnings releases lol buys puts on everything :P youll win 66% of the time in this market

[nedfromsaltmarsh]

100 Siri

100 Etfc

[wallstreetsedge]

100 Siri

100 Etfc


i like the way you think, but id prefer a pullback on ABK and MBI then hop in

[wallstreetsedge]

On the 11th I suggested CCMJ at 0.0018 - today it spiked to 0.0035!!! you would have doubled your money. there is still some more room in it. I am looking at the charts and it will go up to 0.0045 - 0.005 range within a week.

I got in at 0.0015 and sold 50% at 0.0035.


which broker do you use? i know a lot of places are making it pretty useless now to trade penny stocks by charging 0.005 upto 0.01 per share on penny stocks

[benchrn]

which broker do you use? i know a lot of places are making it pretty useless now to trade penny stocks by charging 0.005 upto 0.01 per share on penny stocks


I use Scottrade. I did pay like $90 in commissions which was ok for a $5K profit

[lv2xlr8]

I use Scottrade. I did pay like $90 in commissions which was ok for a $5K profit

Did you have to call a branch location to make that trade?

[benchrn]

Did you have to call a branch location to make that trade?

No I trade online

[lv2xlr8]

No I trade online

Same here but when I tried to trade them it said I need to contact my branch location for this trade.

[benchrn]

Same here but when I tried to trade them it said I need to contact my branch location for this trade.

do you have a margin account?

[lv2xlr8]

do you have a margin account?

No, just a regular individual account.

[benchrn]

No, just a regular individual account.
you may want to change that. also sometimes when the stock is very volatile like CCMJ was the last few days you have to call in your order.