Let me be up front in saying something before I proceed. I am not looking for "hot stock tips" or to get rich in 3 days. I am posting this here, because I have seen alot of people with some really great knowledge post up in other threads. Maybe I can learn something from those of you who have invested in stocks individually vice mutual funds, if you are willing to share that knowledge.

The Background: I am currently military with 3 different mutual funds that I invest in. I max out my Roth IRA each year which is set on a long term growth type plan (a tad bit aggressive), I have a medium risk mutual fund and of course, an ever so trusty (kind of) S&P 500 Index fund.

My current income allows for me to contribute to savings and to invest in these mutual funds without causing financial stress. However, I am about to leave the Corps and have been approached by a few contractors offering very "nice" salaries, which would allow more investment and a little more tolerance for risk. I want to risk more and select my own stocks as well.

I previously bought stocks in Oracle and a few other tech companies after the tech bubble burst (2001'ish). I was quite saddened to see that if I would have kept my Oracle stock I would have more than doubled my money from then to now. I have more patience now and a little bit more a of a "let it ride" type attitude which I think will pay dividends should I invest smartly.


The Plan:
20K to start and monthly contributions of 1,000.00 (this is on top of Mutual fund investments)

The Stocks:
- Financials (BofA, Wells Fargo, Citi Group, etc.) - I feel they are low now but will make steady recovery in the future (2-5 years). My bet is that they are so large that it is impossible for them to fail. However, this has a double edged sword with government intervention and other factors that may either stall or prevent a recovery. I may be wrong about this but I think it is a smart bet.
- Oil/Energy - With technology increasing so does power demand. With more and more eco friendly low power consumption items comes more items to be used (just my thought process). However, Bog Oil does nto appear to be something that I could use for "Aggressive Growth"
- Tech/Defense - I would like to put some money into bigger defense contractors that are bidding for new contracts for weapons development, communications systems, training applications and so on.

The Questions:
- Do you think I am on the right track?

- What kinds of research do you do before purchasing a stock?

- How do you go about fishing stocks you may be interested in out of the sea of them out there?

- Should I get online at E-Trade or something similar and go for it, or should I put my money with an investment firm of some sort? And how do you select a proper firm?, they all look good on paper because they are selling themselves, but "resume's" often inflate fact in my experience.


I know income is a touchy subject on this board, and I definitely do not want to intrude into your personal lives, so I would like to keep this objective and analytical in nature should you decide to post.

Please refrain from the following specifics:
- How much does one person have invested total?
- Income Information (how much does one make from stocks/investing and salary information should be avoided).
- No soliciting for investments

I am starting to research futures as well, is buying on margin a smart move, or should you shoot to cover the entire purchase price yourself?

****Note, I tried to go back and spell "Current" correctly in the title but it would not let me. Mods can I get an assist on that?

I'm not going too get specific, but it sounds like you've got a pretty sound strategy. I think if one spreads the risk between financials, tech, energy, industrials, and utilities they'll be OK over the long run, although a buy and hold strategy is not looking good if you started 10 years ago, I still favor investing over trading.

Thanks Raymondo, I am researching my butt off right now and as I edge further towards a solid strategy, I am thinking that Investing in stocks is the way to go. I just don't have the time to do futures the right way and come out on top. Especially when the math and timing put together, confuses me a little bit as well the fact that "overseas" jobs are all in war/conflict zones.


Thanks for the title fix as well.

Raymondos advice is solid as is your strategy. However, I will tell you that my investments have never been diversified and I have done very well with that strategy. Timing is everything though and you either have a knack for it (and a little luck) or you don't. I had all my money tied up in real estate (mostly raw land) until 2004 and then I sold everything and kept my money in REITs up until a couple of months ago. My losses were only about 15% at a time when most people took between a 30 and 40% hit. My strategy for now is to park everything where I am assured of no losses, so I am in annuties earning 4.5% at the moment. I have no money in the market right now -- not a dime. Great wealth will come out of the current economic turmoil if you put your money in the right place. For now, I am just observing.

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04 G, Pearl Yellow, Clear Engine Bonnet, eGear (sold)

I have shares in a lot of different companies in Ireland and the UK...Most of them are in things I like...EG Tottenham Hotspur Football Club....All are well below the price I paid for them sadly.

I am currently buying up a shares in companies that are low but I feel will increase again in the next few years.

The ones I am buying are in companies that supply things we will always need.

Eg Food companies...we gotta eat !!!

I am also watching the markets as a killing will be made in 12 - 18 months when things will improve

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http://www.supercar-owner.info

Most would call it crazy, and most wouldn't admit it, but I haven't flinched through all this. I am still fully invested including multiple hedge funds. I always felt it was too late to sell, so I'll have to wait it out, I expect 5 years at least, but am not too confidant in that.

Philosophy wise, I was never comfortable in betting on the next hot investment. I believe that everything gets it's turn in time. Money moves in waves from one thing to the next, this is where diversification can be effective but you have to have the time.

Right now any strategy is laughable, except to not have any exposure at all, and there's nothing wrong with that.

most importand suggestion is to cost average down if possible. expecially if you are entering into stocks now here at these prices. People are still expecting lower prices in the market near term, buy a bit here and add to your position if the market pulls back.... use buy limit and sell limit...