Dear readers, what do you advise the reader whose question appeared in http://www.nextinsight.net/content/view/1970/79/

Is $6K profit a month difficult but achievable?

Have you done it?

What tips do you hv for the reader?

Are there instruments that are higher risk but can bring in more $? Easy to handle CFDs? Covered warrants?

Or should we be realistic in our profit expectations?

Depends on yr experience, right? And whether the market is kind (last year) or neutral (seems like the case now)?

I blogged about risks and rewards before which the writer might want to consider:

In an article in Investor's Business Daily on 7 Jan 09, Alan R. Elliot wrote:
"One of the most common mistakes among investors young and old: never bothering to learn to read charts. Yet the price and volume action shown on charts is a critical tool."....

....In the same article, Alan went on further to say that "other investors suffer from the opposite weakness: not knowing how to analyze fundamentals. That is, they don't know what to make of sales, earnings, margins and other financial data. So, if there are areas of financial reporting you haven't gotten your arms around, make 2010 the year you master them."

If a person bought some stock without any knowledge of fundamental analysis (FA), he could make some money depending on technical analysis (TA) as he trades the psychology of the market. If a person has no knowledge of TA, he could also make some money gunning for undervalued stocks. If a person has no knowledge of either, he is going in with 100% risk. If a person has knowledge of both TA and FA, his risk is not 0% but it is much reduced.
http://singaporeanstocksinvestor.blogspot.com/2010/01/risk-and-rewards-ta-and-fa.html

My heart aches reading about the writer's struggles. It reminded me of my early days trying to make money in the stock market.

32-year-olds cannot expect to make 6X x 12 months = $78 K using capital of $150K.

This is the sort of return even gurus + genuises can dream but cannot be certain of achieving.

When I was 32, i focused on learning - from my mistakes as much as from my success. And reading as much as I could about investing.

Good luck brother. In a few years time, you can make a few K a year - not now.

I disagree with everyone! I would say it's possible to make on average $6K a month on $150 K capital if......

a) it's a recession year and you buy stocks.

b) u buy and hold - and yr return could be 100%. Which averages out to more than the $6 k.

Alas, the recession is over - and the stocks re already up 100%.

Any chance left? Got! Look for the bombed out industries, stocks. If you have patience, and you have some business sense and accounting knowledge, you want to buy stocks just because business is lousy at the time. That may be the very best time to buy stocks.

When everything is wonderful, or when the industries are doing well, it’s not usually a very good time to buy those stocks!

I have read various comments on this tropic. There is really no right or wrong answers to it.
To make $6K in stock market will be rather difficult for $150K unless you are prepare to keep it for at least one year banging that 2010 will still be a good year for the stock market.
This will only be applied to certain good stocks with very good upside potential.
Alternatively another high risk play will be the index futures or forex trading which you can make or lost $6K in one day ( not months) using your $150K capital to play on margin.
I strongly advise those without any knowledge of index futures or forex not to play them as many got burnt when positions turn the other way.
Many person loss money is because they take profits too fast and keep their losses too much.
Key to successful trading is: Know when to take profits and when to cut losses

Dear all,

To make 6K is possible at lowest lowest risk. But may not be in 1 month but can consider 3 months? You may also consider Starhub / SINGPOST or SMRT etc. that pays strong and stable dividends. Most important factor is being patient. Using CFD at leverage of 5 x $150,000. After finance charges and commission. There is a potential to make a nice profit. CFDs - Saxotrader? IG Markets? CFDtraders?

Dividend Stocks

Starhub - 8.372%
SingPost - 5.952%
SMRT - 4.101%
SP Aus - 8.916%

Any takers?