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I buy lottery tickets, anywhere from 5-10 a week. It's just for the hell of it, and I have yet to win anything above what, 67 bucks?
One guy 5 minutes from me won 50 million, but hey it wasn't me!

Anyway, every time I go to buy a ticket, a friend gives me hell about it and tells me to just flush my money down the toilet or rip the ticket up before the draw anyways.

He told me if i wanted to take a risk, invest in penny stocks in the stock market.
I figure the money I lose is entertainment money anyways, right now I could throw, say $100 a month into the market. Is it worth it, to see what happens?
I'd have to get an "E-trader" account and all that jazz.

Anyway your input is appreciated. With this money I don't need it to be "safe" and am willing to risk that amount.
 

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I won't tell you where to put your money, as that is not my profession. Personally, I would be skeptical of anyone who does (that isn't a financial advisor).

That being said...I would check out some books by John Bogle---learn his philosophy. You won't be a millionaire overnight, but will be successful over time.


best of luck to you.
 

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$100 a month earning 4% average annual return would be worth over $36,000 in 20 years.

Over the last 30 years, the Dow Jones Industrial Average has returned better than 10%. That doesn't guarantee you'll do the same. But, its a safer bet than a lottery ticket.

More than likely, you could open a self directed IRA with no minimum deposit and start investing right away. First investment I'd recommend is a book on investing for beginners.
 
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Just put your money in a bank account that earns interest or CDs you can't lose.
 

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plenty of advice I've listened to - none of it any better than any other, so far. My (infrequently played) lottery winnings have been about as lucrative as my stock market investments - which is not very.
 

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$100 a month earning 4% average annual return would be worth over $36,000 in 20 years.

Over the last 30 years, the Dow Jones Industrial Average has returned better than 10%. That doesn't guarantee you'll do the same. But, its a safer bet than a lottery ticket.

More than likely, you could open a self directed IRA with no minimum deposit and start investing right away. First investment I'd recommend is a book on investing for beginners.
No it won't. That requires 4% compounded interest. Don't confuse it with average annual return.

Point is still valid.
 

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plenty of advice I've listened to - none of it any better than any other, so far. My (infrequently played) lottery winnings have been about as lucrative as my stock market investments - which is not very.
That's a plan!
 

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I buy lottery tickets, anywhere from 5-10 a week. It's just for the hell of it, and I have yet to win anything above what, 67 bucks?
One guy 5 minutes from me won 50 million, but hey it wasn't me!

Anyway, every time I go to buy a ticket, a friend gives me hell about it and tells me to just flush my money down the toilet or rip the ticket up before the draw anyways.

He told me if i wanted to take a risk, invest in penny stocks in the stock market.
I figure the money I lose is entertainment money anyways, right now I could throw, say $100 a month into the market. Is it worth it, to see what happens?
I'd have to get an "E-trader" account and all that jazz.

Anyway your input is appreciated. With this money I don't need it to be "safe" and am willing to risk that amount.
Better than my work group has done.

anywhere from 18-25 of us a week...$2 a person...3 full years in..do the math its over $5600

...when people tell me all I lose is "entertainment money" that strikes me as odd...losing $100 is losing $100.

My only piece of advice: still buy a single ticket a week-no reason in dreaming if you have no chance of winning
 

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plenty of advice I've listened to - none of it any better than any other, so far. My (infrequently played) lottery winnings have been about as lucrative as my stock market investments - which is not very.

Thats only because you haven't followed the most important part of the advice given. If investing were easy, everyone would be rich.
 

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I won't tell you where to put your money, as that is not my profession. Personally, I would be skeptical of anyone who does (that isn't a financial advisor).

That being said...I would check out some books by John Bogle---learn his philosophy. You won't be a millionaire overnight, but will be successful over time.


best of luck to you.
+1 for the Bogle books...the guy founded Vanguard if you weren't sure of his credentials.
 

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I won't tell you where to put your money, as that is not my profession. Personally, I would be skeptical of anyone who does (that isn't a financial advisor).
Good luck getting a financial advisor (who has any sense) to give you penny stock advice.

I am one...and know you won't find me doing that. I won't even put in self-directed pink sheet orders...but that's just me (and the guys/gals that work for me).

There is a big difference in the service a good financial advisor provides (long term planning and investment direction), and someone who's goal is aggressive market speculation.

That said in my play money/entertainment/screwing around account I've made a killing in the last 2 years cycling a few leveraged ETFs and have a few stocks that have massive short term gains.... it can be done in this market...
 

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View attachment 212864

$100/mo compounded annually @4% for 20 years. This is what I meant by average annual return. You define it differently?
yeah. But its not me.

that's compound interest. The number isn't the same when you get a negative return one year, 5% the next, 1% the year after that, negative return, etc, etc....averaging out to 4% over the term.

Compounding interest is golden.

Like I said, the point is the same about the time value of money. But folks often get wow'd by unrealistic numbers when CI and avg return are interchanged.
 

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If you are going to manage your own portfolio, you'll need to get an account with an online trading company. E-trade and the like have different rate plans and sometimes require minimum deposits to open an account. If you're going to play in the Busch league, you'll need to get an account that has no minimum. They may charge a higher trade rate, but there are always off sets to an advantage. Remember there is a big difference between trading and investing. Your trades turnover fast and your'll need to cover your entry and exit costs before you make any money. At 9.95 per trade, you'll be looking at a 20% increase on a 100$ trade before you make money. Pennystocks often carry a .007% surcharge per share on each trade where the value is below $1.00.


The best advice I can give is to steer wide and clear of online chat rooms where stocks are discussed. You can learn what not to do in a hurry. Beware of the Pump and Dumps and Biotechs. Go buy books that explain investing, technical analysis, candlestick charting, and other market tools. Do you own research and make decisions based upon a risk/reward plan and stick to the plan. Don't get greedy.
 

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yeah. But its not me.

that's compound interest. The number isn't the same when you get a negative return one year, 5% the next, 1% the year after that, negative return, etc, etc....averaging out to 4% over the term.

Compounding interest is golden.

Like I said, the point is the same about the time value of money. But folks often get wow'd by unrealistic numbers when CI and avg return are interchanged.
I see what you're saying. I guess I was using the wrong terminology strictly speaking. But, if you get that wrapped around the axle, you might as well just say YMMV! You could end up with any number from millions to zero. Or, you could get hit by a bus tommorow with that 1st $100 safely in your pocket.
 

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I see what you're saying. I guess I was using the wrong terminology strictly speaking. But, if you get that wrapped around the axle, you might as well just say YMMV! You could end up with any number from millions to zero. Or, you could get hit by a bus tommorow with that 1st $100 safely in your pocket.
No kidding! I could be wrong too. It has happened once before. :supergrin:

This point was driven home to me when I was a young man and first started working and investing, before broadband internet. I took the average 30 year return of the total stock market and set up my own excel spreadsheet with monthly investment contributions COMPOUNDING at like 10%. It didn't take long to see how I was going to have tens of millions of dollars in my late 50's to early 60's and obscene wealth to leave to my heirs. :supergrin: It was so easy!

Then when we sat down with our first CFP as a young married couple, the error of my projections was brought to my attention. :supergrin: The monte carlo simulation I was then shown scared the bejeezus outta me. But that's another story.

I don't mean to split hairs with ya. Just to point out that some of the whiz-bang one liners thrown out there about what $1000 is worth in 30 years often isn't as it appears. Give me 8% compounded monthly for 30 years and I'll mostly keep my mouth shut and outta trouble.
 
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