I failed!

Okay, it's not that I lost any money. I made money. But I did not have the discipline to keep the money in investments. The family desperately needed a new vehicle, so I withdrew my stock investments, all except for GE, and used it as part of the down payment. I look back, and I see that was quite a mistake on all counts. What's sad is that I knew this was going to happen!

My only remaining stock is GE, which is, as of right now, $18.35 a share. My 30.629 shares of GE stock has a total value of $562.04. I am thinking about cashing that in as well, since I just made another major purchase.

Sigh. It's a winning market, but I can't seem to hang with it. I guess I better stick with my 401k.

As of right now, I've made $567.55 profit from my purchases. That is roughly a 22% profit. Of course, we've had a bit of a bull run the last couple of weeks, so I can't really take credit. Although I was at least responsible for looking at the histories of the stock prices. For example, the price that I bought Microsoft for hasn't been seen since 1997... so I'd like to think I know a good deal when I see one. :)

I finished an audiobook by Peter Lynch called A Beginner's Guide to the Basics of Investing last week. The reviews on Amazon agreed it was "basic." Boy, that's the word. The most advanced thing he covered was defining the p/e ratio, and 99% of the material wasn't that technical. If it was too basic for me, it is probably too basic for just about anyone.

So my question is now... do I sell my current stocks and keep my nice $550 profit and invest in something new, or stay with them for the long haul? The truth is, I think I can't go wrong with these long term, but I want to make more money now and I have pretty much nothing left to invest.

Update: Just a few days in

Okay, so far my $2500 investment looks like this:

Name                # Shares   Price Each    Total Paid
Corning (GLW)             70       $11.83       $828.10
General Electric (GE)     30        $9.50       $285.00
Microsoft (MSFT)         100       $16.95      $1695.00
Cash left in account                             $18.45
-------------------------------------------------------
TOTAL                                          $2826.55

I'm fairly happy. My only regrets so far is that I didn't put more into GE and Corning, but that is life I suppose. I only have so many funds to go around.

I read about and think I understand the term "p/e" now.

I learned what a "drip" is, and set it up with my broker. Since GE is currently still providing really nice dividends, it makes sense to me.

I'm in it for the long haul with these stocks. I don't expect to make any real money without A) a more substantial investment, and B) probably 5+ years of investment time.

After I save up more money to invest, I will be putting more into these and possible lower priced stocks. It seems to me the real money is finding that low-priced stock where you can afford hundreds or thousands of shares. (I won't use the term "penny stock" because from my reading, that has an incredibly negative connotation, and I am not looking for a thirty-cent stock that'll make me rich by next week.)

My starting stock picks

Okay, I invested $2500 this morning. Here are my picks:

Name                # Shares   Price Each    Total Paid
Corning (GLW)             70       $10.09       $706.30
General Electric (GE)     30        $6.66       $199.80
Microsoft (MSFT)         100       $15.27      $1527.00
-------------------------------------------------------
TOTAL                                          $2432.60

I can’t sound like a pro, so I won’t even try. :)

I wish I could afford more.

I picked Corning because I think it’s like Proctor & Gamble in the way that it’s integrated throughout our lives. I picked GE because I’ve read it’s a sound company and in no danger of disappearing anytime soon. Microsoft was a more personal decision based on the fact that I am a C# software developer. (C# is a Microsoft product.) Being a software developer of 17 years, I’ve seen everything the big companies have to offer and actually had my hands in it. I’ve used products by Sun, Oracle, and Microsoft, as well as many other small companies like Borland, and Microsoft not only makes a fantastic product, but they’ve got a huge share of the desktop scene. Yes, I know Linux is making ground, but there is no way Linux is going to replace Microsoft anytime soon on granny’s desktop.

So those are my picks. I feel like these are all safe bets for the long term. I think I am going to take a gamble with some cheaper, riskier stocks. I’ll post those soon as well.

Welcome to the start of an experiment

I actually started this blog yesterday on WordPress, but the interface blew, so here I am on Blogger. The actual date of the entry below is March 5, 3:34 PM.

I know almost nothing about the stock market, but I do know with the right knowledge and a little luck, you could make a killing. Opportunity is knocking for the right people. Unfortunately, because I am a computer geek and not a stock guy, I'm not the "right people." But I'm forcing the issue anyway. :)

This blog was created to document my story. I am going to take a risk. Starting with a total investment of $2000, I plan to invest in the stock market. I admit freely that I know almost nothing about stocks, but I plan on learning all I can. This blog will document my adventure.

Coming Soon: I announce which stocks I will have bought, and why I chose them.