Any helpful tips if you have been doing it for a while (books, magazines, etc..)? Also, what sites do you recommend? I am somewhat young and have had some money in a bank savings account accruing very low interest. Also, feel free to pm me stocks to watch/invest in if you feel confidently. Thanks for any help.
OT: Stock market investing
- Thread starter HireCohen
- Start date
Any helpful tips if you have been doing it for a while (books, magazines, etc..)? Also, what sites do you recommend? I am somewhat young and have had some money in a bank savings account accruing very low interest. Also, feel free to pm me stocks to watch/invest in if you feel confidently. Thanks for any help.
Any helpful tips if you have been doing it for a while (books, magazines, etc..)? Also, what sites do you recommend? I am somewhat young and have had some money in a bank savings account accruing very low interest. Also, feel free to pm me stocks to watch/invest in if you feel confidently. Thanks for any help.
<div>*Disclaimer: I am not a financial planner. In fact, I'm as computer scientist so don't consider this professional advice*</div><div>
</div>Depends on what you want to do with this money. If you are planning on using it to fund your retirement then you would likely be better off buying and holding mutual funds or ETFs than trying to actively day trade. It just takes too much time and energy to do that sort of thing and expect results. Hell, even most professional traders have trouble beating the market long term. I would suggest books by John Bogle and the forums at his site and wiki at bogleheads.org. He is an proponent of a fairly conservative approach to investing so if you are looking to double your money in a year, this probably isn't for you.<div>
</div><div>But yea, I'd focus on putting the money in a group of maybe 4-6 index funds that cover the total stock market, international markets, bonds, and maybe REIT if you put them in a tax-advantaged account. Stay away from individual stocks unless this is just "play money" that you can stomach to lose. Also, avoid ANYTHING on TV. They are all entertainers first, financialadviserslast.</div>
</div>Depends on what you want to do with this money. If you are planning on using it to fund your retirement then you would likely be better off buying and holding mutual funds or ETFs than trying to actively day trade. It just takes too much time and energy to do that sort of thing and expect results. Hell, even most professional traders have trouble beating the market long term. I would suggest books by John Bogle and the forums at his site and wiki at bogleheads.org. He is an proponent of a fairly conservative approach to investing so if you are looking to double your money in a year, this probably isn't for you.<div>
</div><div>But yea, I'd focus on putting the money in a group of maybe 4-6 index funds that cover the total stock market, international markets, bonds, and maybe REIT if you put them in a tax-advantaged account. Stay away from individual stocks unless this is just "play money" that you can stomach to lose. Also, avoid ANYTHING on TV. They are all entertainers first, financialadviserslast.</div>
that fits your investment objectives and put your money in it. Until you've got about $100,000 to invest, it's close to impossible to get the diversification in your portfolio that you need (owning any one stock is very risky, you need to own about 30 to spread that risk around and lower it to an acceptable level). Not to mention that you're going to have a hard time beating a 5-star mutual fund over the long term anyway. And whatever you do, don't listen to your stockbroker. He makes his money off of commissions (and sometimes charges management fees on top of that). It's in his best interests to churn your account by buying and selling stocks more often. If you do invest in individual stocks, find a discount broker and do your own research and make your own trades. Also, don't limit yourself to the US market. Right now, I've gotclose to1/4 of my money in foreign markets (through mutual funds).
I will offer them to you and my brothers here and hopefully you can all grow your fortunes and contribute to the Bulldog Club. They have been good to me but you have to educate yourself and you have to stay on your toes, if you put the time in this site will educate you.<div>
</div><div>http://www.cefconnect.com</div><div>
</div><div>
</div>
</div><div>http://www.cefconnect.com</div><div>
</div><div>
</div>
S
Sterling Archer.nafoom
Guest
or at least on heavy days can be. That means a lot of these are triggered by algorithms and programs that have zero to do with the actual value of the company, and just designed for short term gains. I agree with the others. Buy some mutual funds in different segments, and have some sort of monthly draft come out of your account into those funds. And don't check them every day, you'll lose your mind. It's long term. That's the important point.
And I did used to be a Financial Planner. Series 7 and all that crap.
And I did used to be a Financial Planner. Series 7 and all that crap.
The post WW2 gains in the US market were the exception, near-zero gains after inflation are the norm.
Think of it as a poker game, where a couple of the players have much bigger stacks than you, plus they are occaisionally getting inside info on everyone's hands. You can't beat them, plus they are sucking up most of the profits. But they don't care about you, so you can make money in their blind spots. If you think you know something, like an upcoming housing bust or banking collapse or unexpectedly good economy etc, then maybe you can turn that into a decent return. Thinking anything more than that is for suckers.
I wish I could say what would be a good investment right now, but I don't know. Betting against Europe is good, but difficult in practice.
Think of it as a poker game, where a couple of the players have much bigger stacks than you, plus they are occaisionally getting inside info on everyone's hands. You can't beat them, plus they are sucking up most of the profits. But they don't care about you, so you can make money in their blind spots. If you think you know something, like an upcoming housing bust or banking collapse or unexpectedly good economy etc, then maybe you can turn that into a decent return. Thinking anything more than that is for suckers.
I wish I could say what would be a good investment right now, but I don't know. Betting against Europe is good, but difficult in practice.
I opened a Managed ETF Portfolio with eTrade in June. It asks you a bunch of questions to assess your risk tolerance and then designs an ETF portfolio for you. I like it because it charges a small quarterly management fee rather than per transaction, allowing you to put money in on a monthly basis and have it allocated in accorandance with your portfolio without having to pay commission on each trade. My timing was horrible, of course, but things seems to be turning around.
I'm in the market for the long haul so I don't let a bear market get me down because the market will ALWAYS go up. I waited till it dropped big time and then dumped money in it because I know it will grow more in 20 years and like another poster pointed out, never look at it day to day because you will go crazy.
the market today. I know the SEC is working on it but they need to put some serious controls in place on the computer traders (high frequency). They are creating momentum in the markets by putting in huge orders and then cancelling them in milliseconds to get the market headed in the desired direction and then they sit back and execute real orders taking advantage of a swing they created. The average retail investor is defenseless.
Right now you need to look for recession-proof stocks or find a good growth stock fund to invest in..
Good Luck
Good Luck
That is so incredibly wrong. There will always be long-run real gains to be had in the stock market unless our country totally falls apart. Just curious, what idiot told you that there are no profits to be had in the stock market?<div>
</div><div>The worst possible move that an individual with disposable income and a stable income can make is to notinvest in something like stocks or bonds. The actual investment depends on willingness to accept risk, age, income, etc. But, you better be doing something with your money and stocks are a greatlong-term investment.</div>
</div><div>The worst possible move that an individual with disposable income and a stable income can make is to notinvest in something like stocks or bonds. The actual investment depends on willingness to accept risk, age, income, etc. But, you better be doing something with your money and stocks are a greatlong-term investment.</div>
Netflix was a great company 3 months ago at 298 a share... CEO decides to split streaming and dvds and raise prices ...loses 800,000 subscribers
so here is the crossroads
1) if you think splitting streaming and dvds were the way to go, then you should hop on today for 81 a share
2) if you think he is crazy for messing with a great thing, carry on
i trade at scottrade. I like dividend stocks mostly. From my advice of being a 30 year old and have been active in the market with small amounts of money for the last 14 years. Don't gamble, it will eat your *** alive. Know what you are investing in and believe in it. *if you don't shop at wal-mart don't own wal-mart stock.
I have been burned out the last 3 years because to me right now it seems like everyone knows about the market and stocks aren't ever going to do what they did in the 90 with splits again since everyone just does dividends now.
if i had a 1000 dollars i would invest in a great mutual fund that i studied and watched for at least 6 months...
because i think 1stock has a better chance of failing rather than 100stocks
so here is the crossroads
1) if you think splitting streaming and dvds were the way to go, then you should hop on today for 81 a share
2) if you think he is crazy for messing with a great thing, carry on
i trade at scottrade. I like dividend stocks mostly. From my advice of being a 30 year old and have been active in the market with small amounts of money for the last 14 years. Don't gamble, it will eat your *** alive. Know what you are investing in and believe in it. *if you don't shop at wal-mart don't own wal-mart stock.
I have been burned out the last 3 years because to me right now it seems like everyone knows about the market and stocks aren't ever going to do what they did in the 90 with splits again since everyone just does dividends now.
if i had a 1000 dollars i would invest in a great mutual fund that i studied and watched for at least 6 months...
because i think 1stock has a better chance of failing rather than 100stocks
It's only 5 dollars a trade which is low compared to the other big name online brokerages. Having said that, you get what you pay for. The functionality and everything is there but the charts offered and other tools aren't as sharp as other online brokerages. Also, I am pretty sure that Moody's will follow suit and downgrade US credit. You might want to wait until after that to get in on anything because that will cause a stir in the market.
If you're looking to make a million bucks over night you'll have to have a million bucks to get started and even then there's no guarantee. Look at where you want to be 10-20-30 years from now and buy into companies that have a track record of paying decent dividends over that time frame. Look at the blue chips and big boys.
Don't let your personal feeling towards a company talk you out of investing in them. Just because you don't care for the product they make doesn't mean they're not making money and can be a good investment. For example AT&T. A lot of folks on here don't care for them and at times I'm kinda pissed at their service but they are the big kahuna and they will pay a consistent and decentdividend over the long haul.
Diversify. Don't tie your money up in one thing or stock. Mutual funds, money market, stocks, municipal bonds, a good mixture of these will help you survive the hard times, like now. Right now municipal bonds are helping my portfolio survive. Mine are generating 4.5 - 5.5 percent interest and it's TAX FREE. Something to consider.
Look for things that are a necessity. Food, energy, health care are 3 thing most folks HAVE to have. You don't necessarily have to invest in the big players in these areas. Look for companies that supply the big boys with the stuff they need to do their job. For example, next time you're at a hospital or doctors office look at all the stuff they use one time and throw away. Who makes it? Is there money to be made in investing in them? Do some research. You may also want to consider who disposes of all this medical waste. Can the make you some $$ off them?
Disclaimer time: I am NOT an expert or financial guru. I'm just some poor schmuck trying my best to survive these difficult economic times like the rest of you. The above info is my personal opinion and is what has allowed me to survive. Some of my investments have lost money and some have made money. Right now it's pretty much a crap shoot. Good luck to you.
Do some damn research before you hand over your money!!! Don't invest emotionally!!! That's like betting on dear ol State to cover the spread. Don't do it!!!
Don't let your personal feeling towards a company talk you out of investing in them. Just because you don't care for the product they make doesn't mean they're not making money and can be a good investment. For example AT&T. A lot of folks on here don't care for them and at times I'm kinda pissed at their service but they are the big kahuna and they will pay a consistent and decentdividend over the long haul.
Diversify. Don't tie your money up in one thing or stock. Mutual funds, money market, stocks, municipal bonds, a good mixture of these will help you survive the hard times, like now. Right now municipal bonds are helping my portfolio survive. Mine are generating 4.5 - 5.5 percent interest and it's TAX FREE. Something to consider.
Look for things that are a necessity. Food, energy, health care are 3 thing most folks HAVE to have. You don't necessarily have to invest in the big players in these areas. Look for companies that supply the big boys with the stuff they need to do their job. For example, next time you're at a hospital or doctors office look at all the stuff they use one time and throw away. Who makes it? Is there money to be made in investing in them? Do some research. You may also want to consider who disposes of all this medical waste. Can the make you some $$ off them?
Disclaimer time: I am NOT an expert or financial guru. I'm just some poor schmuck trying my best to survive these difficult economic times like the rest of you. The above info is my personal opinion and is what has allowed me to survive. Some of my investments have lost money and some have made money. Right now it's pretty much a crap shoot. Good luck to you.
Do some damn research before you hand over your money!!! Don't invest emotionally!!! That's like betting on dear ol State to cover the spread. Don't do it!!!
S
Sterling Archer.nafoom
Guest
when the market goes up 300 one day, down 300 the next, that's not based on anything real. Those companies' inherent values did not change those two days. People have turned the stock market into a casino. So I just basically close my eyes, pick good companies I think will last a while, and don't look at it on a day to day basis.
Hell, I could make a fortune on my company's stock alone with the fluctuations. I know when it will go up, and down, but unfortunately I'm not allowed to trade during those times.
Hell, I could make a fortune on my company's stock alone with the fluctuations. I know when it will go up, and down, but unfortunately I'm not allowed to trade during those times.
And how much you're willing to risk. For large amounts and long term investments I'd echo what a lot of people have said about mutual funds.
If you've got maybe a small portion you're willing to lose - you can play a little. I have my 401k / mutual fund investments, but then I've got a couple grand that I play around with. I can normally make a little spending money from it each year, but no way I make a serious investment in individual stocks.
If you've got maybe a small portion you're willing to lose - you can play a little. I have my 401k / mutual fund investments, but then I've got a couple grand that I play around with. I can normally make a little spending money from it each year, but no way I make a serious investment in individual stocks.
When the entire market goes down, including a given company that did not itself change, this is still a real change. <div>
</div><div>There are two basic causes of a change in stock price--the company changes in profitability (loses market share, suffers a major problem, innovation, etc.) or a the overall success of the economy is altered. So a decline of 300 in the DJ would signal that the entire economy is performing (or expected to perform) weaker than originally anticipated, which indicates that each individual firm is also lessprofitablethan originally anticipated. If you've had some economics--a decrease in aggregate demand affects demand in individual markets.</div><div>
</div><div>But, your strategy of closing your eyes and picking randomly is the right strategy unless you have a tremendous amount of money to invest.</div>
</div><div>There are two basic causes of a change in stock price--the company changes in profitability (loses market share, suffers a major problem, innovation, etc.) or a the overall success of the economy is altered. So a decline of 300 in the DJ would signal that the entire economy is performing (or expected to perform) weaker than originally anticipated, which indicates that each individual firm is also lessprofitablethan originally anticipated. If you've had some economics--a decrease in aggregate demand affects demand in individual markets.</div><div>
</div><div>But, your strategy of closing your eyes and picking randomly is the right strategy unless you have a tremendous amount of money to invest.</div>
You apparently belive the effecient market hypothesis, which is gospel to a lot of experts but is complete ********. The economy doesn't growor contract by 3% in any one day. So there should never be large market movements in any one day. If the market were really efficient, the day to day changes would usually be in the single digits, and almost never in triple digits.Also, where did you get that his picks his stocks randomly? He said he picks stocks of companies he thinks will perform well over the long term.
The stock market falls 3% in a day to a 3% decrease in the expectation of the economy. It's very feasible that the expectations of long-term growth can change quickly enough to cause a 3% decrease in stocks. I understand your argument against this, but am hesitant to sympathize with anyone who claims that experts are following "********" models. Nothing makes less sense than disagreeing with people who know more about something than yourself. But, to be fair, there are many experts one your side as well. <div>
</div><div>The reason that I don't believe in advocating of picking any individual stocks is because of information. You don't have any additional information over other investors so why should you assume that you will be able to out-pick others? Stocks are a representation of current and future value, so it doesn't make much sense to believe a chosen stock is better than another. If anything, picking stocks based on conventional theory will lead to the purchase of overvalued stocks as others do the same and bid-up the value of a stock. </div><div>
</div><div>In my opinion, the choice of stocks isn't important unless you have either 1) inside info or 2) so much money to invest that it is worth time and effort trying to find inside information. It does not make sense to spend hours tracking stocks if you're only investing a 10 or 20 thousand. Any average difference in stock growth would be small compared to the time and money spent researching.</div>
</div><div>The reason that I don't believe in advocating of picking any individual stocks is because of information. You don't have any additional information over other investors so why should you assume that you will be able to out-pick others? Stocks are a representation of current and future value, so it doesn't make much sense to believe a chosen stock is better than another. If anything, picking stocks based on conventional theory will lead to the purchase of overvalued stocks as others do the same and bid-up the value of a stock. </div><div>
</div><div>In my opinion, the choice of stocks isn't important unless you have either 1) inside info or 2) so much money to invest that it is worth time and effort trying to find inside information. It does not make sense to spend hours tracking stocks if you're only investing a 10 or 20 thousand. Any average difference in stock growth would be small compared to the time and money spent researching.</div>
regarding the entire Netflix debacle.
1) the move, itself, goes against what nearly every major company or retailer has been trying to do for the last decade. Consumers don't want to have to go to multiple stores or websites to get what used to be offered in one place. I honestly can't think of anyone that's even tried that in recent history, probably because it's so asinine. If you want to charge more, fine, but don't make it inconvenient.
2) the apology e-mails that the CEO sent out looked like something that a kid in high school wrote during study hall and then sent it out without having anyone at all proof read it. Either Netflix has no PR or marketing department, or else the CEO just completely ignored them.
3) in the recent Yahoo article from yesterday, I believe, they quoted the CEO as saying that he "assumed that case studies had been done" and that he was "pretty sure" it happened. Are you kidding me? You're getting ready to change the entire landscape of a huge company and the CEO isn't sure whether this new idea was tested or not?
I have no idea how this guy turned the company into what it is today because he has recently portrayed himself as the most clueless CEO I've ever witnessed in years.
1) the move, itself, goes against what nearly every major company or retailer has been trying to do for the last decade. Consumers don't want to have to go to multiple stores or websites to get what used to be offered in one place. I honestly can't think of anyone that's even tried that in recent history, probably because it's so asinine. If you want to charge more, fine, but don't make it inconvenient.
2) the apology e-mails that the CEO sent out looked like something that a kid in high school wrote during study hall and then sent it out without having anyone at all proof read it. Either Netflix has no PR or marketing department, or else the CEO just completely ignored them.
3) in the recent Yahoo article from yesterday, I believe, they quoted the CEO as saying that he "assumed that case studies had been done" and that he was "pretty sure" it happened. Are you kidding me? You're getting ready to change the entire landscape of a huge company and the CEO isn't sure whether this new idea was tested or not?
I have no idea how this guy turned the company into what it is today because he has recently portrayed himself as the most clueless CEO I've ever witnessed in years.
here is what I did, and have been very successful doing it. Don't read anything until you have read the following:
One Up On Wall Street, by Peter Lynch
The Intelligent Investor, by Benjamin Graham
The first one is written in plain English and primes you for the only way to successfully invest in stocks: find great companies that are undervalued, and invest for the long term. If you never read another book about investing, read this one. The second nearly takes an advanced degree in statistical financial analysis to decipher, but if you can slug through it and catch the basic points, it will take you to the next level. This is the Bible that Warren Buffett preaches from (Buffett was a student of Graham's).
As for websites, eTrade, ScottTrade, and TD Ameritrade all provide low-cost trading and incredibly good research on stocks and mutual funds.
Finally, I'd suggest reading at least the first book and then setting up a dummy account on any number of websites. You can start with an imaginary balance, "buy" stocks, hold them, and see how your selections do over time. I did this at MSN Money back in the day. If you are good at finding good stocks, proceed with real money. If you are not, hone your skills or buy 5-star mutual funds and let the experts do it.
I started with $1,000, turned it into $3,000 in six months, then put $10,000 in and turned it into $25,000 in 24 months, all while I was in college. It gave me a great start coming out of school. This was 2003-2005, so I was helped by good timing, but now is a phenomenal time to buy, in my opinion.
One Up On Wall Street, by Peter Lynch
The Intelligent Investor, by Benjamin Graham
The first one is written in plain English and primes you for the only way to successfully invest in stocks: find great companies that are undervalued, and invest for the long term. If you never read another book about investing, read this one. The second nearly takes an advanced degree in statistical financial analysis to decipher, but if you can slug through it and catch the basic points, it will take you to the next level. This is the Bible that Warren Buffett preaches from (Buffett was a student of Graham's).
As for websites, eTrade, ScottTrade, and TD Ameritrade all provide low-cost trading and incredibly good research on stocks and mutual funds.
Finally, I'd suggest reading at least the first book and then setting up a dummy account on any number of websites. You can start with an imaginary balance, "buy" stocks, hold them, and see how your selections do over time. I did this at MSN Money back in the day. If you are good at finding good stocks, proceed with real money. If you are not, hone your skills or buy 5-star mutual funds and let the experts do it.
I started with $1,000, turned it into $3,000 in six months, then put $10,000 in and turned it into $25,000 in 24 months, all while I was in college. It gave me a great start coming out of school. This was 2003-2005, so I was helped by good timing, but now is a phenomenal time to buy, in my opinion.
Guaranteed to make money...about 5% over time, message me.<div id="isChromeWebToolbarDiv" style="display:none"></div>
no, don't do this. Buy term life if you need it (if you're single you don't need it, if you're married with no kids you may or may not need it) and invest the difference in premiums yourself. Also, buy disabilityinsurance whether you're single or married. Get one with a "your profession" definition of disability. Otherwise if you can still do any job you're not considered disabled even though you may not be able to earn anywhere near what you did before.
I dunno if that's right for him or not, but W/L is the safest investment there is. Guaranteed to grow....the market is in the tank. Term is a good option, but should not be the only option since only about 3% of term policies pay out, that is throwing your money away. Most people don't invest the difference is the problem. It's a safe way to grow money, not to mention the tax benefits of the cash value. If you get with the right company, whole life is the way to go right now. Why would you not need life insurance if you have no kids? That's just a dumb statement.<div id="isChromeWebToolbarDiv" style="display:none"></div> <div>
</div><div>
</div><div>ETA: Believe it or not, people use life insurance for various reasons. Retirement planning, death benefit, safe investment, tax advantages, to leave behind a legacy, cover debts, so the argument if your single and don't need it or married and may not need it is just dumb. It's a case by case basis. I bet you love Dave Ramsey. Guy's been bankrupt 3x, and uses 8-10% market return in his computations which is very optimistic. Let me ask you this, how many people who put a large chunk of money towards whole life insurance lost money during 08? I'll tell you no one did. The ones who had it before, and after are still making money. The stock market is a crap shoot right now. Your better off investing in individual stocks and doing your own research over putting money into a 401K or IRA. I'm in all 5 star funds and I'm down -4.8% this year. It's actually up from -8.3% earlier this summer.</div>
</div><div>
</div><div>ETA: Believe it or not, people use life insurance for various reasons. Retirement planning, death benefit, safe investment, tax advantages, to leave behind a legacy, cover debts, so the argument if your single and don't need it or married and may not need it is just dumb. It's a case by case basis. I bet you love Dave Ramsey. Guy's been bankrupt 3x, and uses 8-10% market return in his computations which is very optimistic. Let me ask you this, how many people who put a large chunk of money towards whole life insurance lost money during 08? I'll tell you no one did. The ones who had it before, and after are still making money. The stock market is a crap shoot right now. Your better off investing in individual stocks and doing your own research over putting money into a 401K or IRA. I'm in all 5 star funds and I'm down -4.8% this year. It's actually up from -8.3% earlier this summer.</div>
If there's no one who's financially dependent on you then you don't need lifeinsuranceand if you buy it you're wasting your money. As my father says, never be worth more to someone dead than alive. If you're single with no kids, why would you need life insurance?TheStateUofMS said:
And let me add a point. There's no worse "investment" than placing your money to someone who is planning to profit off of you. The only reason companies sell life insurance is the expectation of giving you back less than you paid. <div>
</div><div>It's only value is in lowering risk. You're, on average, much better of taking the same money you would have spent on life insurance and placing it in stocks or bonds.</div>
</div><div>It's only value is in lowering risk. You're, on average, much better of taking the same money you would have spent on life insurance and placing it in stocks or bonds.</div>
Your "leaving a legacy" plan is pretty damn stupid. As saltslugs points out, on average you'll leave a bigger legacy by investing in stocks and bonds and leaving that to someone. Because what the life insurance company is going to do with your premium is go out and buy stocks and bonds to generate the money it's going to eventually pay out PLUS enough money to cover their operating expenses and profit. If you want to fund their operating expenses and profit, go right ahead. I won't be joining you.
S
Sterling Archer.nafoom
Guest
who will be around a good long time. The close your eyes part was in regards to watching daily stock reports.
S
Sterling Archer.nafoom
Guest
... funds in them, where you can invest a bunch of money over the premium amount. This money grows tax free, so the compounding is much more effective. At some point, this money can be "loaned" to yourself at no interest, and is not taxable, since it's a loan. When you die, they subtract your "loan" amounts from whatever is in there, and there is never tax owed. This can be a good idea if you're someone who will be in a high tax bracket even after retirement. For those who have maxed out 401ks and IRAs, it can be a good investment. You need the insurance for your family, so you use the ability to grow money tax free on top of that.
All that said, it's not for everyone, or even most people. It can be a useful tool, but it's not the only one in the box, or even the best. Kind of like how Lucky Charms can be part of a balanced breakfast.
All that said, it's not for everyone, or even most people. It can be a useful tool, but it's not the only one in the box, or even the best. Kind of like how Lucky Charms can be part of a balanced breakfast.
I have made. Sure, part is insurance but my cash out (or what ever you call it) will be significantly large in approx ten years. But WL is just one vehicle that one should use....certainly not the only.
S