Monday, February 25, 2008

Save

Following the last post about self-investing, I would like to start exploring other areas of investing probably considered more conventional.

I will be researching, writing and calculating how to invest. Assuming you are below the age of thirty (>80% of my investment funds will be in stocks), have some money to invest (meaning, you can afford to lose it) and are willing to accept more then average risk, these posts will apply to you. I have a fairly high level of risk tolerance and will invest accordingly. I understand the average investor will fail to beat the market and most are better off putting a portion of their paycheck every two weeks into an index fund, but this is not where I stand. I believe with the right system, earning quadruple what the S&P500 did this past year is not fantasy. (YTD percentage yield, as of today, the Vanguard Total Stock Index Fund (VTSMX) has lost -7.52%, so even index funds are prone to significant loss).

My plan right now is to save and start investing. I opened an e-trade savings account to help me do this, earning 4.01% interest at the present time. I have right now about $600 and will accumulate until I reach $1,000. At that point I will begin to experiment with different investment vehicles while sharing my gr0wing pains and results with this blog. I will choose stocks based mostly on my own level of confidence with that company's product, while supplementing decisions with a combination of fundamental and technical research.

I will begin investing within the next three weeks using Zecco as my preferred trading tool, chosen based upon it's reputation for free trades.

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