TracySo you have $5000....great.what I would do first is to...

Tracy

So you have $5000....great.

what I would do first is to start to think like a large investor....the soooner you start this mental process the better imo.


How?

Add a few 000's to the $5000.....

now lets say you have $5 million dollars.


So now every dollar you invest, you're investing $1000...

this will make you think very carefully about what you are doing with each trade.

Ok step 2.

What to invest the $5,000,000 in?


Well lets break it up into say 3 seperate parcels.

$5000 = $5 million

$2,500,000 stock 1
$2,000,000 stock 2
$500,000 stock 3

So what you might like to do now is the following:

you need to find 3 stocks.

stock 1 - from the top 200 stocks on ASX
stock 2- 15-30c share
stock 3- .005 - 5c share.

Put $2.5 m into stock 1
Put $2.0m into stock 2
Put 500,000 into stock 3

s1 = say a BBG...why? Recenlty dropped from $3 plus back to $2.12 or so.....should rise again over the coming weeks to around $2.30-$2.50....but do your research first.

s2 = maybe a utilities company or a producer of something in the resource sector...plenty to reaserch here.

s3 = just choose a penny dreadful stcok that you have a interest in, it could be fashion, telecommunication, nano science, thermal...etc....this one can be your personalinterest stock....


So now you have a ASX top stock, a mid range and a penny dreadful and you have diverisifeid between the 3 somehwat.

First....go and research 3 and set a date when you will enter them.

Watch and see what happends to the prices until you enter, and if its still a good idea at that poiint, say 2 weeks from now.....go for it.

im sure otherscan add more....but that would be my initial approach with such a sum.