Quote:
Originally Posted by silviasandbeer
so I've been seriously considering getting my feet wet in the stock market and playing around to make some money on the side
chipotle and takatas stock have taken a tremendous hit (for obvious reasons)
chipotle is at 487 or so and takata is 13.3
so would it be wise to buy shares of each company while its very cheap and sell once their stock goes back up?? to make a profit
or am i totally misunderstanding how the market works lol
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^You totally get it. Slowly work your way in and build your portfolio. For example, if you want to start with $5k buy 5 different stocks and invest $1k in each stock. Its a lot of fun and addicting! Buy companies you know and understand and if they happen to be "on sale" and due to your research you believe the company is worth more and will continue to grow then jump on them! Chipotle is a good example, you know the company is good and their products are desirable, there was just a mishap that caused the stock to fall. Everyone will forgot about it in about a month and the stock will soar again. My only problem is their stock is too expensive. Your timing will never be perfect so don't sweat it if it keeps going down. I've been averaging in to oil for a while now, my average cost basis keeps getting lower and lower but I know we will be in demand for oil for a while to come and it will eventually be back therefore I have never lost sleep over it.
There is some misinformation in this thread but investing is like building a car. There are many different ways of doing, not all of them are necessarily right or wrong it all depends on the persons style and how much risk they want to take on. I am still learning new stuff every day too so always keep an open mind.
Penny stocks are not my thing and I would never advise to put your eggs in that basket. There is a reason why they are cheap. I see penny stocks as a casino, the house always wins and its super risky.