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STOCK MARKET NEWBIE

MFIMFI Member Posts: 7,899 ✭✭✭
edited May 2019 in General Discussion
Any help for a newbie in the stock market ? Would like to dabble a little ..What is the best online site to use ? Any tips etc would be great guys ! Thanks ..

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    GrasshopperGrasshopper Member Posts: 16,755 ✭✭✭✭
    edited November -1
    As a two time loser, I can tell you one thing, don't bet with money you can't afford to lose. Also don't be afraid to TAKE a profit and forget it. Put a stop order on a stock you have at a point you are done with it and put a sell order on a stock at a price you want to sell at. Ride the wave and jump off, and don't drown.
    Many so called "experts" and their methods which is imo just general ideas. GOOD LUCK.
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    hillbillehillbille Member Posts: 14,184 ✭✭✭✭
    edited November -1
    gotta agree with grasshopper, don't put any more money in it than you can afford to lose, just like gambling, only this is a legal gamble you don't have a lot of control over. good luck
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    Rack OpsRack Ops Member Posts: 18,597 ✭✭✭
    edited November -1
    TD Ameritrade is my current broker. I have no complaints, just remember you can eat your gains up in fees if you are a frequent trader.

    Just a word of caution: the market is at its all time high right now.....meaning now is about as risky a time to buy in as there ever was.
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    11b6r11b6r Member Posts: 16,588 ✭✭✭
    edited November -1
    If you want a hobby, Ameritrade. If you want to make a decent rate of return, contact Fidelity, by shares of Fidelity Puritan mutual fund, and leave it alone.
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    MIKE WISKEYMIKE WISKEY Member, Moderator Posts: 9,972 ******
    edited November -1
    the stock market has 2 rules
    !. the stock market ALWAYS goes up
    2. when the stock market goes down see rule # 1.

    now individual stocks are another issue, you are on your own.


    for general tips and insight try account@seekingalpha.com)
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    mogley98mogley98 Member Posts: 18,297 ✭✭✭✭
    edited November -1
    Buying individual stocks is more than risky. At least with a ETF you move in line with the market. As noted it is high but who knows maybe this is a new thing and it will go to 50K.
    OR.........

    Not a lot of places to park money right now as noted on another thread.

    Cd's are safe but barely keep up with inflation.
    Real Estate is high too, and you either actively manage the properties or pay someone else to.

    Gold and other precious metals, not my cup of tea.
    Why don't we go to school and work on the weekends and take the week off!
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    truthfultruthful Member Posts: 1,988 ✭✭✭✭
    edited November -1
    Have tried several brokers, fund companies, and Fidelity is by far the best. No pressure, they just do what you want them to do.

    As for tips, IGNORE them! Do your own research. If you are a true newbie, stick to mutual funds or ETFs that include a broad band of the market. Two currently popular areas are S&P500 tracking funds, and Total Market Index funds, Fidelity has both. You won't hit any home runs with these but you will track what "the market" is doing. As you gain experience you can move into more specialized funds or even into individual stocks. BUT DO NOT start out that way!!
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    Marc1301Marc1301 Member Posts: 31,897 ✭✭✭
    edited November -1
    Long term, the market can't be beat as an investment if you do it the right way. Yea, I know I'm different from a lot of these guys here, but I've been invested since I was in my twenties, and the market is responsible for almost half of my net worth.

    Invest,.....don't invest, it's no skin off my nose. I agree fully with Rack Ops though,.....the market is skirting around an all time high, and not what I would consider a good time to start investing serious money. I am sitting on about 200K un-deployed cash for a reason right now.

    My best moves ever were going full in towards the bottom of the 2008 debacle, and simply holding steady as it dropped another 5%. Wait for a correction to dive in would be my advice, and stick to high quality names with investment grade credit ratings.
    "Beam me up Scotty, there's no intelligent life down here." - William Shatner
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    WearyTravelerWearyTraveler Member Posts: 2,006 ✭✭✭
    edited November -1
    I'll echo - don't risk your mortgage payment!

    My last brokerage was with Ameriprise. After you reach $100k they used to give you trades for free. Now they're at $8 per trade.

    When looking for a "trading site" look for 2 things - price per trade - user interface. As a starting invertor I'm ASSuming that you'll make smaller purchases, of the cost of a trade as a percentage of the transaction will vary. $8 for a $100 trade is an 8% overhead. That same $8 for a $100k transaction is _nothing_. So think about the cost per trade.

    You'll also want to look at their interface. Look for something that gives you the info that you need. A pretty site with sparse information is nowhere near as good as a plain site that gives you the ability to run scenarios and find info like dividends etc...

    I see a bunch of members telling you to buy funds. If you go that route, you may get your returns eaten up by management fees. I'm not saying you shouldn't buy funds. I'm saying that you should read their prospectus and look at the fee structure related to return.

    Look into the dividend reinvestment stocks. They're the ones that you can buy directly from the company on a monthly basis. My first was Exxon. I bought $50 worth per month, every month. Many / most do not have a fee. Depending on the fluctuation, that $50 (and eventually $100) per month bought fractions of shares. I did it for years. It's hell to figure the basis when you sell (unless you sell all) but it's a way for an investor to buy equities for minimal cost.

    I'm in no way affiliated with Amazon, but I have my financial guy buy me a couple of shares whenever there's a dip. Amazon, in my small and humble opinion, is taking over the market. Just like Alice's Restaurant, you can get anything you want. They're only getting bigger.

    I'd suggest Google - they've got their dick-skinners in everything. They're going to grow as well, but to me, they're evil (long story) and I won't own them (yes, I'm cutting off my nose to spite my face).

    I also made a bunch of money on high dividend stocks. I bought a bunch of Southern Copper years ago because their dividend was 8%. They grew - I profited. I've since liquidated.

    If you want to diversify similar to funds, I'd say look into spider (s&p500) or diamonds (Dow). Or an ETF. To me, they're much better than funds since the management fees are lower and they track the major indexes.

    Enjoy!
    ”People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf."
    - GEORGE ORWELL -
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    Don McManusDon McManus Member Posts: 23,491 ✭✭✭✭
    edited November -1
    Don?t ever think you know what you are doing. Most major brokerage houses have low fee Target Retirement Funds. I use Vanguard, Empower and Schwab, but shop around.

    Put a fixed amount in every month and let it do its thing.
    Freedom and a submissive populace cannot co-exist.

    Brad Steele
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    bustedkneebustedknee Member Posts: 2,002 ✭✭✭✭
    edited November -1
    Many years ago a man in Kansas City gave me some advice:
    "It is difficult for even the best pig farmer to make a fortune from raising pigs, but using his knowledge of many years of raising and selling pigs he can do very well investing in pork bellies".

    In other words, Invest in what you know.
    Aviation, for example, if you are in that business. Do you know agriculture? How about marketing? Travel? Merchandising? Fashion? Do you use tools? Read books? Operate computers? Take medications? Spend time in medical facilities? etc., etc., etc....


    I used Scottrade for years then TD Ameritrade after they bought Scottrade.
    I can't believe they misspelled "Pork and Beans!"
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    SW0320SW0320 Member Posts: 2,397 ✭✭✭✭
    edited November -1
    Don?t ever think you know what you are doing. Most major brokerage houses have low fee Target Retirement Funds. I use Vanguard, Empower and Schwab, but shop around.

    Put a fixed amount in every month and let it do its thing.

    I agree with Don on both using Vanguard, lowest priced funds out there with excellent selections and diversify, put money in good funds and let it sit there.
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    droptopdroptop Member Posts: 8,367 ✭✭
    edited November -1
    Suggest getting an "on line" broker who also has offices spread across the U.S. I pay NOTHING for a nice online account. Trades are same as instant and can be triggered by a almost unlimited criteria. Trades are $4.95 which is essentially Nothing. Sell 100 shares of google = $127,000 and commission is $4.95. Same for buying. Get one of these accounts and you'd be a lot better off "STUDYING" stocks than anything else I can think of, including washing your car.

    These brokers are not that interested in accounts less than $500,000. Luckily when you start you can talk to others and read. These sites have an enormous amount in information on line and help consolidate your profit and loss from trades to make your taxes a snap.

    If it wasn't for investments (not just stocks or money) I'd be a lot worse off and likely spending my retirement stuck in the U.S. drinking a beer and watching a bug zapper.
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    He DogHe Dog Member Posts: 50,961 ✭✭✭✭
    edited November -1
    Marc1301 wrote:
    Long term, the market can't be beat as an investment if you do it the right way. Yea, I know I'm different from a lot of these guys here, but I've been invested since I was in my twenties, and the market is responsible for almost half of my net worth.

    Invest,.....don't invest, it's no skin off my nose. I agree fully with Rack Ops though,.....the market is skirting around an all time high, and not what I would consider a good time to start investing serious money. I am sitting on about 200K un-deployed cash for a reason right now.

    My best moves ever were going full in towards the bottom of the 2008 debacle, and simply holding steady as it dropped another 5%. Wait for a correction to dive in would be my advice, and stick to high quality names with investment grade credit ratings.


    Savy fellow this one. First thing to remember is that the average American investor buys when the market is high and he has confidence. He sells low when the market drops and he panics. Now you know what not to do. Buy low, sell high, hang tight between. You are better off in a fund, than trying to pick stocks on your own, as you said you are a newbie. I agree with Marc, half my net was made in the market and I always bought when the market dropped (or plunged) then hung tight until it had more than recovered what it lost. You would do well to diversify, having some stocks, some bonds, maybe some Muni bonds as well. Cash is not great currently, but as Marc says hold until the correction hits later this year. The market will be somewhat static until that point.
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    MaaloxMaalox Member Posts: 5,160 ✭✭✭
    edited November -1
    We use Vanguard and follow Bogle's philosophy of being well diversified, staying the course and using low cost index funds. You can set up a three fund portfolio. Total stock fund, total international stock fund and total bond fund. Determine your risk tolerance and you asset allocation between stocks and bonds. Then within the stock portion determine what percentage you want in international. Re-assess your asset allocation at most once a quarter at the least once a year. Othe than that set it and forget it until you retire.
    Regards, MAALOX
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    GrasshopperGrasshopper Member Posts: 16,755 ✭✭✭✭
    edited November -1
    Just saying it sounds easy,, buy low sell high,,unless you are in a "safe" fund it still can be a roller coaster. I tried the "individuals stocks n my own. I was the king of garbage. Then got a little lucky and got out. It's tough, tough it is.
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    poshposh Member Posts: 360 ✭✭
    edited November -1
    Anyone serious about investing in the stock market should read a good book about it. I suggest "The Truth About Money" by Ric Edelman. It makes good throneroom reading.
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    Rocky RaabRocky Raab Member Posts: 14,203 ✭✭✭✭
    edited November -1
    Another vote for what Don said. We started in a mutual fund at $100/month (when I was earning $800) back in the early 70s. Have switched funds and followed the advice of some good advisors since then. I'm not going to quote our net worth now, but we couldn't spend it all if we tried. The grandkids will not have to count on Social Security.
    I may be a bit crazy - but I didn't drive myself.
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