How to invest in the stock market?
- Thread starter dfast1
- Start date
turboscott
New Member
- Joined
- Oct 30, 2001
It depends on what your goals are. Are you looking for long term investment and retirement? If so, use the money you have to invest and get yourself started in a Roth IRA. I would recommend finding yourself a financial advisor. My guy is from AG Edwards. American Express has them as do many other places. The important thing is to find someone you trust and who takes the time to help you understand and teach you about where you are investing your money. It also shouldn't cost you anything so if they try and charge you, move on to someone else.
ACME RACING
( Adult Swim )
- Joined
- May 29, 2001
Invest
You can invest in many Mutual Funds by just clicking on one of thes companies:
http://flagship.vanguard.com/web/corpcontent/CorporatePortal.html
http://www.scudder.com/t/index.jhtml
http://www.troweprice.com/corporate/0,,,00.html
You can pick up a Finance magazine and learn a lot about different companies that offer funds. It's cheaper to go directly to these companies since most have no-load fees , meaning you don't pay extra to give them money to invest in your account.
alan
You can invest in many Mutual Funds by just clicking on one of thes companies:
http://flagship.vanguard.com/web/corpcontent/CorporatePortal.html
http://www.scudder.com/t/index.jhtml
http://www.troweprice.com/corporate/0,,,00.html
You can pick up a Finance magazine and learn a lot about different companies that offer funds. It's cheaper to go directly to these companies since most have no-load fees , meaning you don't pay extra to give them money to invest in your account.
alan
- Joined
- May 9, 2002
Two Lane has given you some uncommonly succinct and good advice....Take it.
Main thing about long term in mutual funds is their annual costs of operation (costs you pay). Choose a fund with less than one per cent operating cost each year. It willmake thousands and thousands difference by the time you're retireing.
Main thing about long term in mutual funds is their annual costs of operation (costs you pay). Choose a fund with less than one per cent operating cost each year. It willmake thousands and thousands difference by the time you're retireing.
turboscott
New Member
- Joined
- Oct 30, 2001
Actually, if you invest properly this is a great time to buy in the market if you are looking for long term investment. You are buying real cheap now and getting more for your money.
dfast...
Before picking a fund at random, here is a link I would encourage you to check out. Many of us "old guys" have made some costly mistakes by making snap decisions without EXPERIENCED advice. I commend you for planning your future and taking action at such a young age. Not only will you find Dr. Hall easy to communicate with, but you will appreciate his "safe approach" and excellent track record. I have no personal "interest"...he has just become a valuable source over a period of time. Genuine good luck! (He's a "car nut" too..LOL)
http://moneymanagment.info/main.htm
Mickey
Before picking a fund at random, here is a link I would encourage you to check out. Many of us "old guys" have made some costly mistakes by making snap decisions without EXPERIENCED advice. I commend you for planning your future and taking action at such a young age. Not only will you find Dr. Hall easy to communicate with, but you will appreciate his "safe approach" and excellent track record. I have no personal "interest"...he has just become a valuable source over a period of time. Genuine good luck! (He's a "car nut" too..LOL)
http://moneymanagment.info/main.htm
Mickey
jon_we4
Cold Fusion Monkey
- Joined
- May 24, 2001
go to www.investingwithjon.com and enter your credit card number ....
we will take it from there
just kidding ---
i have had funds with vangaurd and strong... trying to start up my Roth IRA soon but i need a full grand to do it with strong
I have $990 in a fund that should be $2,000-$3,000 so I'm waiting for that to pick up atleast a little.
Jon
we will take it from there
just kidding ---
i have had funds with vangaurd and strong... trying to start up my Roth IRA soon but i need a full grand to do it with strong
I have $990 in a fund that should be $2,000-$3,000 so I'm waiting for that to pick up atleast a little.
Jon
Stay away from Mutual funds! I have made more money in stocks then in my mutual funds. People say invest in Mutuals because they are diversified, only problem is they are over diversified. As for investing in the long term that is a bunch of Crap! I made money last year in my stocks and I'm making money this year in my stocks. My mutuals are in the tank! Not to mention how much money you have to pay someone to manage the fund. Anywhere from 1-3%, which is money your losing out on. Manage your own money, because you are your own best advisor.
Buy stocks in proven companies, ones that have been around for decades and has a good product. After the Gulf war in 1991 for example, Ford went up 6000% in the following 9 years, GM went up 2200%. The secret to investing is to always pull the profit from your stocks. If your stock went up 50%, pull 30-50% of that money value out of the stock. And remember the market follows a cycle. Four years is the typical Bull market give or take. As stocks go up you should be cashing out. When stocks go down you should be buying them. If you were to invest $1000 in the third quarter when stocks are normally down and pull out in roughly the second quarter and continue his trend. You would have $100 000.00 after 30years. Take that same grand and leave it in the market and you would only have $10 000.00 after 30 years. Just some food for thought!
Buy some books, and start learning. Watch the markets and make your own conclusions. Good Luck!
Buy stocks in proven companies, ones that have been around for decades and has a good product. After the Gulf war in 1991 for example, Ford went up 6000% in the following 9 years, GM went up 2200%. The secret to investing is to always pull the profit from your stocks. If your stock went up 50%, pull 30-50% of that money value out of the stock. And remember the market follows a cycle. Four years is the typical Bull market give or take. As stocks go up you should be cashing out. When stocks go down you should be buying them. If you were to invest $1000 in the third quarter when stocks are normally down and pull out in roughly the second quarter and continue his trend. You would have $100 000.00 after 30years. Take that same grand and leave it in the market and you would only have $10 000.00 after 30 years. Just some food for thought!
Buy some books, and start learning. Watch the markets and make your own conclusions. Good Luck!
turboscott
New Member
- Joined
- Oct 30, 2001
Investing in the long term is a bunch of CRAP? Wow, that is a bit harsh don't you think. Just because it is not the same philosophy you believe in doesn't mean it is crap. The way you invest is a lot riskier than what the average person with very little experience does. You are talking like a professional investor and giving the same kind of advice to a 20 yr old kid who is looking to get started! You think he is on the same level as you. He can still invest in stocks for long term. I agree reading books and learning is important but it wouldn't hurt to speak with some people that can help him learn the right way to invest.
Okay if this makes any difference i am in the airforce and went to a mutual fund class. This is why i am asking these questions. My goal is to have like half a mill by the age 50 if that is possible. I plan to invest like around $200 a month plus i have some money right now to invest. Mutual fund is good for the long term right or should i manage it myself and buy my own stocks.
- Joined
- May 9, 2002
forzfed is correct....For one in one thousand people. Unless you have the ability to make those decisions on a daily and weekly basis, I'd advise against it. This sounds a lot like the FORD vs Chebby vs MOPAR arguments. It will be hotly contested on all sides.
What you expressed was an interest in long term investing. In my view, its a wise thing to do.
I've made a lot of money in the stock market. I've lost a lot of money in the market (in the ER with chest pains when I lost $10k one day). I've been a swing trader, a day trader. I have some experience you could benefit from....Choose a strategy you're comfortable with yourself. You can always learn enough to venture into trading your own stocks, but I'd not recommend starting out that way. learn form My grey hair
Two lane gave you some good advice....TAKE IT!
You can always adjust your strategy as your interests and abilities develop. Important thing is to start the habit of saving AND living within your means NOW. I retired at the age of 49....If you're lucky, you can too
What you expressed was an interest in long term investing. In my view, its a wise thing to do.
I've made a lot of money in the stock market. I've lost a lot of money in the market (in the ER with chest pains when I lost $10k one day). I've been a swing trader, a day trader. I have some experience you could benefit from....Choose a strategy you're comfortable with yourself. You can always learn enough to venture into trading your own stocks, but I'd not recommend starting out that way. learn form My grey hair
Two lane gave you some good advice....TAKE IT!
You can always adjust your strategy as your interests and abilities develop.
Important thing is to start the habit of saving AND living within your means NOW. I retired at the age of 49....If you're lucky, you can too strikeeagle
New Member
- Joined
- Jun 6, 2001
Dow Jones Industrial Average (DJIA)
Today's opening bell = 8,257.61
January 14, 2000 = 11,908.50
July 30, 1997 = 8313.20
So, the DJIA is down almost 31% from its peak over 3 years ago, and hasn't added a penny for almost 6 years.
And the NASDAQ is much, much worse - can you say down almost 73%!!!
Put your money in your boot.
Any questions?
Today's opening bell = 8,257.61
January 14, 2000 = 11,908.50
July 30, 1997 = 8313.20
So, the DJIA is down almost 31% from its peak over 3 years ago, and hasn't added a penny for almost 6 years.
And the NASDAQ is much, much worse - can you say down almost 73%!!!
Put your money in your boot.
Any questions?
turboscott
New Member
- Joined
- Oct 30, 2001
What forzfed also failed to say is Ford is now down to $9.43/share right now and GM is also down. So, unless you have the time to monitor this on a daily basis you could lose big time. If stocks are the way to go you can buy directly from most companies. I know if you want to buy Disney stock you can sign up for direct withdrawl from your bank account where they can take $100 month or more out and they buy shares for you. They also reinvest the dividends. Home Depot is another good one or Lowes. There are a lot of options. Just do some research before buying if you do it on your own.
GeneralB44
www.pinkhumpy.com
- Joined
- May 25, 2001
Visit www.vanguard.com and start checking out the tutorials on investing. As someone else mentioned, one of the keys to mutual funds is looking at the expense ratio, and the buy and sell "load" (sales commission). Vanguard prides itself on having no load (no fees to buy or sell) and very low expense ratio. This translates to more money in your pocket. Investing can seem very complicated, but for someone your age it should be relatively simple since you don't have to worry about tricks to keep taxes down and stuff like that. One of the best ways to invest is to use Dollar Cost Averaging - basically, automatically invest $100 in a fund at each paycheck. When the fund price drops, you get to buy more shares at a lower price. When the price goes up, you buy less shares. This balances out to make sure you get more shares at a lower price than a higher price. It may sound confusing, but it works! Don't be scared of market fluctuations - it's just the way economics works - it's like checks and balances.
Settle down people, what I said was to get people's reactions. To show that everyone is different. Shop around and interview some financial advisors. Be careful some can be quite the salesmen. Everyone is different when it comes to investing, what worries one person does not worry another.
Sit down with an advisor and make a financial plan, everything starts with that plan. Find someone you trust. Dollar cost averaging is a good way to start. It doesn't give you the highest returns, but does a decent job in buying both high and low. Never be a lump sum investor! Reason being if the stock or mutual goes down then you have no money left to by at bargain prices. The philosophy buy low sell high always applies. In the current market I would by more. So if you want to invest $200 a month that is great, but as the prices go up, why not invest $150 a month and buy use the left over to buy the investment at a lower price.
The only way to learn is go out and do it! I have a friend that is a financial advisor and the company he worked for was trying to make him sell money losing mutuals, most of his clients were friends and family so he quit. My warning is be careful, you can never become to careful with your own money at first, when seeking an advisor. And never fall for investors showing you that this stock went up 200% in one year and that you should buy into it. If the investment went up that much, chances are it will soon be on it's way down.
Remember everyone is different when it comes to money. Some like to hold more cash others more equity. You have to choose what best fits you. Good luck!
Sit down with an advisor and make a financial plan, everything starts with that plan. Find someone you trust. Dollar cost averaging is a good way to start. It doesn't give you the highest returns, but does a decent job in buying both high and low. Never be a lump sum investor! Reason being if the stock or mutual goes down then you have no money left to by at bargain prices. The philosophy buy low sell high always applies. In the current market I would by more. So if you want to invest $200 a month that is great, but as the prices go up, why not invest $150 a month and buy use the left over to buy the investment at a lower price.
The only way to learn is go out and do it! I have a friend that is a financial advisor and the company he worked for was trying to make him sell money losing mutuals, most of his clients were friends and family so he quit. My warning is be careful, you can never become to careful with your own money at first, when seeking an advisor. And never fall for investors showing you that this stock went up 200% in one year and that you should buy into it. If the investment went up that much, chances are it will soon be on it's way down.
Remember everyone is different when it comes to money. Some like to hold more cash others more equity. You have to choose what best fits you. Good luck!
Just because a fund family does not charge a front end load desn't mean they have a lower expense ratio than those that do!
Vanguard et al, still have marketing expenses but instead of paying brokers to market their shares, they market directly to the public.
For every Vanguard, Fidelity, etc fund, I will find a similar objective front loaded fund that outperforms and has a lower expense ratio. (that's my job...I am a CFP....)
Do not invest based on load or no load......invest in a fund that meets your risk/reward profile. Past performance may not be indicative of future performance, but it is one way to narrow the field.
As stated, the first thing you want to do is max your Roth IRA contribution each year. If you use dollar cost averaging on a consistent basis into something like a long term growth fund, you will accumulate some wealth. The lifetime average return on the S&P 500 is right at 10% per year..........
Starting at your age is a wise thing!
Vanguard et al, still have marketing expenses but instead of paying brokers to market their shares, they market directly to the public.
For every Vanguard, Fidelity, etc fund, I will find a similar objective front loaded fund that outperforms and has a lower expense ratio. (that's my job...I am a CFP....)
Do not invest based on load or no load......invest in a fund that meets your risk/reward profile. Past performance may not be indicative of future performance, but it is one way to narrow the field.
As stated, the first thing you want to do is max your Roth IRA contribution each year. If you use dollar cost averaging on a consistent basis into something like a long term growth fund, you will accumulate some wealth. The lifetime average return on the S&P 500 is right at 10% per year..........
Starting at your age is a wise thing!
xrunner123
Member
- Joined
- Oct 2, 2002
Also look into tax deferred investments like 401K. All your money that goes into one of these plans are tax free until you withdraw and most companies will match your contribution amount up to 6% or so.
And the gov allows up to 10K per year (forget the exact limit).
The most important thing is to contribute as much as you can as early as you can.
And the gov allows up to 10K per year (forget the exact limit).
The most important thing is to contribute as much as you can as early as you can.
turboscott
New Member
- Joined
- Oct 30, 2001
I do agree that some financial advisors try to push stocks and funds that they know are bad because they make more commision money. The best thing to do is begin reading and learning on your own so you know enough to prevent being burned. Find yourself an advisor you trust, my guy is out of MA but he works with people across the country. If you want I can give you his name. Begin with a Roth IRA and if nothing else put the money in a CD just to get the process going and then leanr as you go and once the CD matures you will have a better idea of what you want and more knowledge to make it happen.
Little6pack
Active Member
- Joined
- Jun 2, 2002
MIX your Investment EGG NEST up..
Buy Some funds that have BONDS, REAL ESTATE. STOCKS
AT first I would invest this way so the pro who runs the fund
will make you some money..
Then you can get daring & buy some stocks yourself.
You should invest in market segments that you understand.
Examples:
Finace institutions
Technology
Durable goods
retail
Health care
the list goes on & on..
Mix it up! a few stocks per each category.
As turbo scott said right now is like getting in on the ground floor with some tried & true companies Like GE or INTEL These have been battered down & will come back over a long period of years.
Good luck
Buy Some funds that have BONDS, REAL ESTATE. STOCKS
AT first I would invest this way so the pro who runs the fund
will make you some money..
Then you can get daring & buy some stocks yourself.
You should invest in market segments that you understand.
Examples:
Finace institutions
Technology
Durable goods
retail
Health care
the list goes on & on..
Mix it up! a few stocks per each category.
As turbo scott said right now is like getting in on the ground floor with some tried & true companies Like GE or INTEL These have been battered down & will come back over a long period of years.
Good luck
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