On this blog I write about [tag]investing into stocks[/tag] for beginners. However, it is dedicated to those [tag]investors[/tag] who want to actively invest into [tag]stocks[/tag] instead of putting [tag]money[/tag] into [tag]Mutual funds[/tag], CDs, [tag]savings accounts[/tag], [tag]ETF[/tag]s or any other investing vehicles. This blog is about a small portion of the entire investing [tag]portfolio[/tag] every investor should build. So, I assume you already have your investments diversified.

What if you are at the beginning

If you are a new investor at the beginning of your investing career, start investing into stocks, bonds or [tag]commodities[/tag] may be very dangerous. In my Investor’s checklist series I wrote how a small investor should start, however I was looking at it from the angle that the new investor is new into stock investing, but not new to investing at all. All the money I have available for investing into stocks is just a small portion of my entire investment [tag]budget[/tag]. So take a quick review of what vehicles I posses or plan to have:

1. Short term savings account – this is my [tag]emergency account[/tag] on which I keep up to 2,000 dollars to cover all expenses, which may exceed my regular paycheck expenses. It is used whenever for example a mortgage payment is due prior my paycheck or any other similar, large expenses. After I use money from this account and the balance drops below the limit, I start contributing back as much as possible to rise it back up to the limit. After the limit balance is met I redirect my contributions to another accounts.
2. Long term savings account – this account is a classical emergency account, on which I plan to keep $30,000. I do not have this account fully funded yet (my mortgage down-payment reduced the balance significantly), so I am contributing to this account aggressively. All tax benefits, deductions, bonuses and money earned on top of my regular paycheck goes onto this account.
3. 401k – managed by my employer’s agent, prior my mortgage I contributed 15% every paycheck, after the mortgage I had to reduce contributions to 3% only. It’s growing and I do not touch this account at all.
4. ROTH IRA – once I decided to compete with the guys managing my 401k to see who is better in funds picking. Now they are winning. Well on this account I am planning contributing some portion of my surplus money. My intention is to create a steady income which can be reinvested, so the account will contribute to itself. So mostly I will invest into dividends stocks and funds, bonds, CDs and other vehicles generating income which can be reinvested.
5. Investing savings account – I opened this account to save money for investing into vehicles where the initial investment is larger than I can afford. Brokers usually do not offer any interest rate or very low one, so I am saving money on this high yield account first and than transfer the money to my broker. For example CDs, bonds and some Mutual funds require the initial investment as high as 2,000 – 5,000 dollars. If you do not have such a lump sum, you need to save it first and why saving it on an account with no interest, right?
6. Investing account – this is the account which should become my money making machine and about which this blog is. I am still learning about investing into stocks, but I want to reach a knowledge, strategy and discipline which may bring high revenue. My goal is to handle stocks (long positions, short positions, and penny stocks trading), then options trading (I have a friend who claimed he had a steady income of 200 of dollars a day when he was trading stock options so my goal is to get to that level) and commodities. My goal is to make 20 – 50% or higher revenue every year in the stock market.

If you are at the very beginning of your investing career, though, start with savings and diversify your investments prior you jump into stocks or options.

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