Your Questions About Money Making Stocks For 2011

Michael asks…

Whats the best way to invest my money in 2011 to make profit legally?

I got a check in the mail, and i want to invest it for profit, i was thinking stocks. But are there any other ways?

John answers:

Nobody can really answer this.

Different people have different goals. Is it for more income? For retirement? For someone’s education? Plus how old are you and how long do you want to invest? How much risk are you willing to assume?

If you don’t know, you should not invest at all.

Start with some basic books to teach you the fundamentals. Two excellent reads are The Complete Idiot’s Guide to Investing and Investing for Dummies. You can probably find them in your local library.

Ruth asks…

make money on stocks!!!!?

best growth stocks for 2011?

John answers:

Trading breakout Growth stocks was made famous, by William J. O’neil.

In his classic book How To Make Money In Stocks: A winning System In Good Times and Bad, Bill O’Neil outlines step-by-step on how to find and breakout trade the best Growth Stocks.

Sharon asks…

Best stock trades from 2000 to present (2011)?

If you had a time machine and you could travel back to 2000, knowing all you know now in 2011, what would have be the best way to make the most money in stocks for this 11 year period?
LLoyd, that pretty good, but I want to know what you would have done if you had to invest money from 2000 to now continuously. Moving the money from one thing to another and then pulling out as of 2011.

John answers:

Jazz Pharmaceuticals which I bought at $2.47 per share on 2007 and now is $31 and I expect it to go to $50-70. I expect next would be Citigroup, now is $4.45 per share. I bought at $3.19. I reckon it would reach to $25 in 3-4 years time. Banking sector is very slow moving these year until they have paid off the government.

Paul asks…

which of these cars is the best deal for the money?

http://www.autotrader.com/fyc/searchresults.jsp?engine=&fuel=&lastStartYear=1981&sort_type=priceDESC&default_sort=priceDESC&systime=&drive=&style_flag=1&body_code=0&seller_type=b&min_price=0&color=&keywords_display=&advanced=&distance=50&doors=&keywordsrep=&highlightFirstMakeModel=&awsp=false&search_lang=en&showZipError=n&rdm=1262633889652&marketZipError=false&keywordsfyc=&search_type=both&transmission=&max_price=3000&max_mileage=&end_year=2011&make=&start_year=1981&num_records=25&certified=&page_location=findacar%3A%3Aispsearchform&address=46805&pager.offset=200&first_record=201

http://www.autotrader.com/fyc/searchresults.jsp?engine=&fuel=&lastStartYear=1981&sort_type=priceDESC&systime=&default_sort=priceDESC&drive=&style_flag=1&body_code=0&seller_type=b&min_price=0&color=&keywords_display=&advanced=&distance=50&doors=&keywordsrep=&highlightFirstMakeModel=&awsp=false&search_lang=en&showZipError=n&rdm=1262633889652&marketZipError=false&keywordsfyc=&search_type=both&transmission=&max_price=3000&max_mileage=&end_year=2011&make=&start_year=1981&certified=&num_records=25&address=46805&page_location=findacar%3A%3Aispsearchform&pager.offset=225&first_record=226

$1,200
•2 Photos
Used 1995 Dodge Ram 1500 Truck 2WD Regular Cab
•193,377 miles
•Black
WE HAVE EARNED OUR REPUTATION WITH OUR CUSTOMER SATISFACTION. AUTO LIQUIDATION CENTER HAS SERVED OUR LOCAL COMMUNITY AND THE TRI-STATE AREA FOR OV… View more details
5 miles from ZIP code 46805
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Auto Liquidation Center

1-866-345-0495
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$1,195
•7 Photos
Used 1992 GMC Sonoma 2WD Extended Cab
•145,031 miles
•Red
45 miles from ZIP code 46805
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Delpha Chevrolet Buick Pontiac

1-866-665-4549
•www.delphachevy.com!
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$875
•No Photos
Used 1990 Ford Bronco II 4×4
•1 mile
•Red
cheap little 4×4
41 miles from ZIP code 46805
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Brunersburg Auto Sales

1-866-528-3458
•SMALL DEALER-SMALLEST PRICES
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$800
•5 Photos
•1 Video
Used 1992 Ford Tempo GL
•90,496 miles
•White
Low-cost transportation. LOW MILES. Good Tires. Interior in good condition. Spot rust on exterior. Brake lines are rusty and will need replaced. C… View more details
32 miles from ZIP code 46805
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Moser Motor Sales

1-866-510-1629
•**Serving You Since 1904**
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$700
•8 Photos
Used 1992 Buick Park Avenue Sedan
•232,747 miles
•Burgundy
FRESH TRADE ON A CLOSE TO NEW ALTIMA ! ! DRIVES DOWN THE ROAD PERFECT ! ! IT RUNS SMOOTH AND SHIFTS PERFRECT ! ! 232K MILES ! ! SUPER CHEAP RELIABL… View more details
48 miles from ZIP code 46805
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Platinum Auto Group Inc

1-888-326-3680
•www.platinumautogroupinc.com
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$695
•No Photos
Used 1993 Dodge Spirit ES
•94,483 miles
•Green
32 miles from ZIP code 46805
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Lee Kinstle GM Sales and Service

1-866-886-3598
•Lee Kinstle “The BIG ONE”
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$2,995
•No Photos
Used 1997 Ford Aerostar Extended Van AWD
•47,877 miles
•White
1 miles from ZIP code 46805
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Dealer
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$2,995
•No Photos
Used 1997 Mercury Villager
•159,001 miles
•Torreador Red Metallic
3 miles from ZIP code 46805
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Dealer
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$2,995
•No Photos
Used 1994 GMC Sonoma SLE
•168,769 miles
•Dark Red
3 miles from ZIP code 46805
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$2,995
•No Photos
Used 1997 Mazda 626
•139,676 miles
•Mojave Beige Pearl Met…
3 miles from ZIP code 46805
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$2,995
•No Photos
Used 1996 Ford Taurus GL Sedan
•69,130 miles
•Purple
48 miles from ZIP code 46805
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$2,995
•No Photos
Used 1998 GMC Jimmy 4×4 4 Door
•157,544 miles
•Green
59 miles from ZIP code 46805
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$2,695
•No Photos
Used 1997 Nissan Sentra
•139,355 miles
•Silver Mint Metallic
3 miles from ZIP code 46805
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$2,695
•No Photos
Used 1997 Old

John answers:

I dont know,got board of reading but im sure its all very interesting

David asks…

I have $20,000 saved up finally. Is this a smart thing to do…?

Here is the scoop. I am 25. A couple years ago (summer 2007), with the combination of working, saving, and an $8,000 inheritance, I saved up roughly $18,000. I decided to invest some in the stock market and the other 10k with some lady my dad dealt with buying and selling houses (November 2007). The lady paid my dad over a period of years consistently so I figured it was a safe investment. She was to pay me my original $10,000 back plus $6,000 after 6 months (May 2008). In the meantime I spent the rest of money and lost it in the stock market. May 2008 came along and I had been broke for a few months, hoping to get paid my $16,000 (I was strongly considering just taking the $6,000 interest and rolling the $10,000 principle for another 6 months). Anyways, May came and went and I didn’t get paid. All summer I waited and waited and waited. Finally, miraculously, I was paid $11,125 the end of August 2007. Basically a year later I was given back my principle with a little interest. By the way, every late day she was supposed to pay $50 or so interest so it should have been a huge check. Oh well, the lady was a scam artist, and I was just glad to have my money back plus a little interest.

So August/September 2008 hit and the stock market goes to hell in a hand basket. I watched Freddie Mac go from low single-digits to 35 cents in September, and then increase almost 10x in a week. I knew the stock market was for me. To make a long story, after gaining 40% in 2009 (first trade in Sept.), my account was worth about $12,000 in February 2009. March lows brought me to about $3,000 and some change. By May the rally brought my account up to about $18,000. Made some critical mistakes in June (there was another 3 or 4 week period of red days) and my account fell to about $10,000. July was very very very lucrative for me and August has been decent, I am sitting on around $22,000.

^^^The whole point of explaining this is to show how volatile and uncertain the stock market is. Especially when my strategy is to go heavy on a few stocks and when they do good, my account flies, and if they do bad, I pay dearly. Sooooooo…..(I could have started the question here, I apologize for all the extra details)….

My dad has been buying up houses (foreclosed) for under $20,000, fixing them up a bit (another few thousand) and renting them out for between $850 and $975 a month. Taxes come to about $3,000 a year on each house unless you find someone to buy on land contract, then they pay for the taxes. My dad has the formula down and I asked him if he would find me a house and he said yes, no problem, just give him the money at the time of closing.

So, I buy a home for roughly $16,000 to $19,000 and put $3,000 in to fix it up. Total cost comes to roughly $19,000 to $23,000 after repairs.

If I find a tenant on land contract I’ll collect roughly $900 per month times 12 ($10,800 per year or simply a nice $900 check a month).

If not on land contract I make the same $10,800 a year but pay $3,000 for taxes each year ($7,800 a year or $650 a month).

I know this money is not guaranteed (tenant can miss payments, stop paying, etc.) but it is much more secure and steady than the stock market.

I have actually learned a ton in the market and am much better than I was a few months ago. I believe I am on my way to consistently making good money each year in the market. But there are always those red blood bath days that really hurt and bring my account down. I figure I’ll get this house (which will just about take my account to zero) and then I’ll build up again.

Also will be accepting a $5,000 student loan which will arrive in about a month (when payments are due in 2011 they will be about $60 a month and the foreclosed home will bring in a minimum of $650 so I will accept the $5,000 loan each semester for the next 4 semesters until I finish grad school). With this money I will put it to work in the market and save for another foreclosed home, then wash, rinse, and repeat. Hopefully I’ll graduated with a masters in International Trade and Economic Development with 3 homes, over $10,000 in my Scottrade account, and a decent job.

What do you guys think about getting a foreclosed home? Should I keep it all in my Scottrade account and risk dropping a few grand over the next couple months or should I diversify and go for something secure, and tangible?

All thoughts welcome…

John answers:

The foreclosed home investment looks worth repeating. Your experience in the stock market is typical for a rookie who plays fast and loose. You always think you have learned a valuable lesson and will do much better hence forth. In truth, you will continue learning lessons for as many years as you are in the market. You will learn some things and you will make fewer mistakes after many years but the real estate bargains right now are a once in a lifetime opportunity. I would go for more of that and go light and more conservative on stocks. Using borrowed money increases your risks, of course and leaves you open to possible bankruptcy with the student loans still owed. Good luck, and slow down and think things through.

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