How would you invest... ?

If you got $100 a week to invest any way you wanted, what would you do with it?


How much do you think you could turn $100 a week into in a year?


How would you do it?

ttt

ttt

For me, it would depend largely on what the person that is investing's current financial situation is...it is hard to answer the question without context.

If they had any revolving credit debts (credit cards etc.) pay that off first.

If they were basically debt free, start a savings to compile somewhere in the range of 3-6 (maybe 6-9 if you feel your employment is not very stable) months of living expenses.

If they had that, I would say put some percentage (depending on Company's matching program and depending on how old the person was/when they envisioned needing retirement funds) in a 401K.

The rest will depend on what your long and short term money needs are and how you feel your trading skills are. For me, I am relatively young and not great at trading...so I would take most of the money and put it towards relatively steady stocks or an index fund. If I have a decent savings I am willing to wait for time to bring returns as I use dollar cost averaging to continually buy a couple of stocks or a fund.

I would leave a bit of money (maybe like 20 bucks a month even) to "practice" trading with. Try to get in tune with the market, buying more speculative stocks without risking much $.

Anyway, I know this is not the answer you were looking for, but I do feel that you need an investment approach that fits your current financial position and allows you to address long term, and short term needs.



Tower,

That is an interesting strategy. What interest rates are you getting on those covertables? What spread do you like on the leaps to convertable, like 20% capital in the leaps and 80% on the convertables? Lastly what kind (size) of income are you getting from writing the calls on the convertables? I'd like to know more about this strategies returns.

Thanks

Tower,

Thanks for the reply. The strategy does make sense. Are you currently using the strategy?If so has it been successful for you? I'd like a anecdote such as "QQQ went up 22% in four months. With this strategy I was able to capture 18% returns for the four month time period, but with much less risk." Something to that effect. I really do appreciate your response.

Thanks.

Cool thanks for the response. You are lucky (smart) to have gotten in during 2000. I was raised on the 95-2000 market. Different rules these days :)