Stocks

[Maximus]

PPs- How do people become millionares with this thing? I mean people that started with very little and became multi-millionares.

Let's say you bought 600 shares of QCom in 1993 for 5 bucks a share - cost $3000. In Feb 94 it did a 2/1 split...you then had 1200 shares. In May of 99 it did another 2/1 split...you then had 2400 shares. In Dec of 99 it did an amazing 4/1 split...you then would have had 9600 shares. In August 04 it did it's last split a 2/1....this would have given you 19,200 shares of QCOM. If you had sold nothing along the way you would have 19,200 shares at $39.50 today. So your $3000 invesment would be worth $ 758,400 right now.
Obviously stories like Qualcomm are extremely rare, but it is an example of how a lot of people became millionaires off of a small investment.

 

[Maximus]

Max - great story. But why not take some off the top @ 10 (or even at 6?). E.g. - taking 20% off the table at 10 would have covered your initial investment. Then you're playing w/ the house's money. Now you have to pull off 1/3 of your position, but you should probably do that anyway. Well, that's what I would do.

Nate, simple answer - GREED!!!!


I understand exactly what you are saying and that has always been the plan to play with "free shares". I have broken many of my personal rules with this stock - "Never fall in love with a stock", "Invest no more than 15% of my portfolio in ONE stock", "If it runs, pull out initial investment and play with free shares". I've broken them ALL.
What can I say, I fell in love.LOL I consider the technology disruptive and I think the stock will be a true rule breaker itself. Could be a massive miscue on my part, but it's a risk I can afford and am willing to make.

 

[CornerThree]

Let's say you bought 600 shares of QCom in 1993 for 5 bucks a share - cost $3000. In Feb 94 it did a 2/1 split...you then had 1200 shares. In May of 99 it did another 2/1 split...you then had 2400 shares. In Dec of 99 it did an amazing 4/1 split...you then would have had 9600 shares. In August 04 it did it's last split a 2/1....this would have given you 19,200 shares of QCOM. If you had sold nothing along the way you would have 19,200 shares at $39.50 today. So your $3000 invesment would be worth $ 758,400 right now.
Obviously stories like Qualcomm are extremely rare, but it is an example of how a lot of people became millionaires off of a small investment.

Out of college my friend hooked up with AOL like that, made something like 200k on AOL stock options over the course of a few years. With the splits and the massive run ups, he's always had quite a bit money to fall back on after he ended up getting out of that company.

 

[natedagg]

well the trick is getting out. Maximus breaking his rules wouldn't make him the first one. Look at what happened to the last internet bubble. Those were different circumstances, but still... The old rule was "buy and hold" but you are playing with fire if you don't "buy and homework" instead...
and I am just a n00b at this, and have no financial courses to my credit, so don't take my word for it, get some knowledge and hook me up!
BTW, anyone who knows anyone who has traded multiple stocks successfully and consistently for over a decade, ask them what book to read and let me know. I am thirsty for knowledge.

 

[bomber]

And Bomber, I know you bet on sports, and so do I, and I can assure you, this is just as fun, if not better.

That same rush huh? I like all the research and such involved in the process, which obviously would go for the same with stocks.

Where do you trade on?

 

[cavs_playa23]

Do you know how old you have to be to take part in the stock market? 18? 21?

 

[natedagg]

scottrade is my trading site. 7 bucks/trade. I don't know the age limits. I got nothing tonight guys, I am running on fumes.