Buy the rumor, sell the
news
Here we are, 2016.
Politics are wild, maybe more so than
usual.
Economics are more hidden than ever.
“Seems like,” feels like something major is near at hand. Looking
at commodity prices, especially oil, our live seem chaotic.
To say some major adjustments are in
the wind is being cautious.
So, what to do?
Put money in a bank/credit union? Naw,
interest rates are too low. Get in the market. Small cap (small
companies) and penny stocks until you feel comfortable. Look to pull
6-8% and you will be doing OK. Don't buy into the thousands of “sure
things” out there. All they want is your money.
If you're under 75 learn options. Don't
have to be an expert, just have a good grasp of them. Sad that most
bankers can't understand them.
Pop a few hundred into a brokerage
account that offers low trade fees and options. You don't have to
trade options, just be sure they are available. More on the “why”
later.
A good starting point is CBOT/CME
Training, training, training. Even has
a dummy account to practice in.
When I started out, options scared every one. The banker I dealt with had the license yet no understanding. I left him the beggining guide book and a book on “futions”- options and futures. His wife said he never read more than a few pages. I took the books back. Found another banker.
WHY- having an account that limits you to stocks and bonds cuts you out of currencies, metal, livestock and the rest. All those affect stock prices. Also, the news related to transport such a ice in the Mississippi is important to know- could affect prices of things from fruit, vegetable, appliances and more, Depending on what you invest in this news will have some importance.
Many companies end up being affected by events seemingly unconnected.
