I have a lot of my in a fund earning about 5.5% a year. I just got approval from the company I work for to invest with another B/D, so I was thinking of taking the out and putting it into a trading account with mostly ETFs.

It seems like the market has been rallying lately so I’m afraid of coming in at the top. Am I better off waiting for a down day? I know that if you lose a large % when you first invest it can be devastating for a portfolio.

 

  • brian-the-brain 9:02 am on August 25, 2010

    If you are worried about timing then dollar cost average in. This means you buy over time instead of all at once, something like 8% of your money each month for the next year.

    The thing about the market now is that it is making record new highs. It is either going to go up or down from here. Don’t wait and then buy two months from now when it has gone another 20% up. Either buy now or wait for a low. Don’t wait for it to go up more, feel the intense pain that you missed it, and then get in. The sooner you get in on a move the more likely you get to participate in it.

  • mmmkay_us 9:02 am on August 25, 2010

    if you are going to gamble go to Vegas you will a least have fun while you lose your money

    at 7.2% your money double every 10 years so at your current rate you will double your money in about 13 years

    with out any worry or decissions to make

    or get a tax free bonds and reinvest the income and in 20 years you have all that money with out Taxes

  • Mary T 9:02 am on August 25, 2010

    It is never a bad time to invest in the stock market if you’re open to the idea of options.

    First, do some research by reading a book such as Options Made Easy: Your Guide to Profitable Trading (2nd Edition) by Guy Cohen (Jul 18, 2005)
    ISBN 0131871358

    Second, open an account somewhere that you can get very low fees, such as http://www.optionshouse.com and practice with virtual funds until you know you have the trading strategy down.

    Third switch some of the trades to real money while continuing to use the virtual account until you understand how the two differ in trade executions (virtual trading usually is not 100% accurate).

    Fourth, keep on top of your trading and try new strategies only when you have learned the one you are using.

    My favorite strategy is the "strangle" as it provides profit when the market moves up OR down so it can always be used. The only time it has ever let me down is when the market just stayed in the same place for a very extended time and even then there was opportunity to not lose any money.

  • Marky Mark 9:02 am on August 25, 2010

    become a daytime commodity trader.
    I’ve heard people with 5000 to start making 100,000 their first year.

  • Frank Castle 9:02 am on August 25, 2010

    No.

  • dannyman00793 9:02 am on August 25, 2010

    hey man I just started 4 months ago, and it’s going great for me. I am not an expert but I think the markets are good right now. what companies have you invested in?

    dannyman00793@yahoo.com

  • bizzbagg 9:02 am on August 25, 2010

    i would wait to jump in untill the stocks making 52 week lows out number the stocks making 52 week highs on all 3 exchanges (nasdq,amex,nyse). this when i go on a buying spree myself.

    BIZBAG SECURITY ANALYSIS
    Frank J Kelly Jr
    analysts
    fjkellyjr@bellsouth.net

  • piet lul 9:02 am on August 25, 2010

    if it is long term, the time is always good.

  • Uncle Mike 9:02 am on August 25, 2010

    We are at lofty levels, come check out my site, I would diversify at least and put the money to work slowly. We have trading plans that mechanically trade stocks on the long and short side http://www.teachtalktrade.com

    I would not put the entire amount in the Make at once, you are right a down period if you are long could devastate your portfolio. One other thing you did not mention is your time frame to have this money at work?

    Uncle Mike

  • Char 1 9:02 am on August 25, 2010

    First of all, you don’t invest in the "stock market", you invest in stocks. When the market goes down on any given day, it simply means that a higher percentage of large stocks went down than went up. If most of your money is in a 5.5% money market fund, you are obviously a conservative investor. If you are worried about what the "market" does on a short term basis,but still want to make money, I think you would be better off with a few good light to moderately aggresive mutual funds. You won’t get rich but at least you’ll be getting more than 5.5%