Investing Help,Business or Stocks?

[Jason G]

Hello everyone, I hope you all have had a wonderful Christmas and as well as the New Year. Let me start off by saying I’m new to this website, so for give me if I ask any stupid questions. I’m seeing guidance towards my future. I’m twenty-two years for age and attending school part-time while working a full time as a test assistant engineer. I make great money at the moment, but looking to boost my capital gains. To my knowledge I seem to be well diversified. I have an IRA account that I max out each year as well I have two mutual funds that I put $1,000 per fund each month.

Now I know this is a business web site, but after reading the articles posted here. It seems they’re some pretty savvy people on here. I’m just looking for some ideas on what I should invest a few thousand in to. I was considering DAY TRADING, but have no experience in it, but willing to learn. So if anyone has any suggestions on what I should do please let me know. If you need more info on my future plans I would be more than happy to inform you.




Thanks, Jason Gerke.

[akula]

Hello everyone, I hope you all have had a wonderful Christmas and as well as the New Year. Let me start off by saying I’m new to this website, so for give me if I ask any stupid questions. I’m seeing guidance towards my future. I’m twenty-two years for age and attending school part-time while working a full time as a test assistant engineer. I make great money at the moment, but looking to boost my capital gains. To my knowledge I seem to be well diversified. I have an IRA account that I max out each year as well I have two mutual funds that I put $1,000 per fund each month.

Now I know this is a business web site, but after reading the articles posted here. It seems they’re some pretty savvy people on here. I’m just looking for some ideas on what I should invest a few thousand in to. I was considering DAY TRADING, but have no experience in it, but willing to learn. So if anyone has any suggestions on what I should do please let me know. If you need more info on my future plans I would be more than happy to inform you.




Thanks, Jason Gerke.

Jason,

I do want to advise you - but that would be unethical.

What you need to do is see a certified financial planner because personal finance is more complicated than most people would imagine.

In your case, you are already starting to be afflicted by confirmation bias and survivor bias.

Survivor bias: If you ask successful gold traders what to invest in- they'll say invest in gold. If you ask successful entrepreneurs what to invest in- they'll say start a business. Even though there may be millions more entrepreneurs and gold traders who have lost money than those who have been successful - you are not going to hear their stories because people much rather prefer to write about their successes than their losses.

In other words; don't ask a person if you need a haircut. He is not the right guy to ask the question from.

Confirmation bias: By having already mentioned day trading, your brain has created a point of reference and is looking for data to re-enforce it. Basically, even though you might not realize it, you are actively searching for information that confirms your original hypothesis that day trading is good. In other words, you only want to hear good news and disregard all bad news.

For example: I can tell you with empirical precision that you will lose money on day trading, or not make as much money as you are supposed to compensate for your exposure to risk. Day trading is an inferior decision to other financial strategies, such as tax effective, leveraged, dollar cost averaging, or straight out leveraging into index funds - yet this information will be of lesser value to you than somebody going, "Yeah man, you should go into day trading. My uncle made a fortune doing it".

Anyways, the point is: See your financial planner. Any ethical, or rational financial planner is certainly not going to give you half decent advice on an internet forum - so what you'll be stuck with are postings by cranks, afflicted by their own bias, and which certainly don't take your best financial interests into consideration.




P.S. Once again, I apologise. You must be looking for some kind of a speculative investment. You have a lot of different options available, including derivative securities. Unfortunately, it would be unethical to tell you anymore because you are not a client.