Stock help
Stock help
When i turn 18 i want to get into stocks. I saw that one thread to invest 500K, and sum dude suggested sum enegery company, and stocks are leik 16 bucks a share, so with 500K invested he'd be making 13K a month on dividens. Although i don't have 500K to drop, 10K would do. now, i don;t know much about the stock market or what to invest in exactly. any adivce and help, such as websites that teachteh basics, where you cna monitor your stocks and stuff woudl be much appreciated
if you are new to stocks.. please talk to a broker before you make any final decisions
if you are new to stocks.. please talk to a broker before you make any final decisions that would probably be the best idea..i need to pay him though don't i?
www.investopedia.com
Read and Learn. Be smart with your money.
I know this isn't what you want to hear, and it's not nearly as "sexy" as buying stocks, but if you're 17 now, and you've got $10k to spare, you could invest that in a low-risk mutual fund, add $100/month, and you'd be a millionaire by age 60. You'd have $2.2 million by age 65. That's assuming an average 10% rate of return.
If you choose to play the markets, with your lack of experience, you'll get eaten alive. That $10,000 will disappear faster than a Twinkie on Rosie O'Donnell's desk. Just something to think about.
that would probably be the best idea..i need to pay him though don't i? yeah, you do
go get a copy of barrons or the wall street journal
start reading it
at first, it will be hard to understand, but over time, you will understand what to look for
plus, barrons makes great suggestions on stocks that i have made laot of money on by following them
make sure the stuff makes sense before you start putting your money into it
When i turn 18 i want to get into stocks. I saw that one thread to invest 500K, and sum dude suggested sum enegery company, and stocks are leik 16 bucks a share, so with 500K invested he'd be making 13K a month on dividens. Although i don't have 500K to drop, 10K would do. now, i don;t know much about the stock market or what to invest in exactly. any adivce and help, such as websites that teachteh basics, where you cna monitor your stocks and stuff woudl be much appreciated You won't like this answer, but you need to start by reading some basic books and seeing which approaches sound like your style. Are you a trader (short-term, hrs to days) or an investor (1 yr+)? Do you believe in fundamental analysis or technical analysis? Do you like dividends or do you prefer stocks that aggressively reinvest that money for growth? Is your risk tolerance on the high or low end of the spectrum?
Here are a few tips for a beginner:
*Technical analysis is waaaaay easier to learn than fundamental analysis, so realize that you'll most likely be biased to liking that style even though it may not be right for you.
*Always consider real return when looking at a trade/investment, i.e. learn the effects tax and commissions have on your overall return.
*When buying books beware books that try to sell you a system, look for things that simply present how things work or how people use certain methods.
*Mutual funds are a ripoff - if you want to see why read A Random Walk Down Wall Street by Burton G. Malkiel.
*Can't stress this enough - once you start to get a grasp on how you want to trade/invest go to Yahoo Finance and make some portfolios that trade your system with fake money and watch how they do, and probably more importantly, how you deal with their performance (want to sell to early, freak out if they take a major hit, etc.).
Good luck, mayng.
hey thanks alot everyone, big help!
thestreet.com
cnbc.com (and watch the channel)
finance.yahoo.com
stockpickr.com
are some of my favorites
you also need a broker, i use scottrade, it is alright...zecco.com is around too, but it take a couple weeks i hear to get an account set up.
The dumbest thing you could do is throw all your money in one stock.
If you want to be a dividend investor, just check out a few mutual funds that pay dividends. A mutual find will keep you more diversified. i have 5k in ADVDX, that is worth a look, and a good bargain at this price, IMO.
read up A LOT before you do anything. it is serious business, and pros are out there to try to get you to lose money (so they gain). So know what you are doing
*Mutual funds are a ripoff - if you want to see why read A Random Walk Down Wall Street by Burton G. Malkiel. I don't agree with this at all. No-load mutual funds from a reputable firm are a fantastic way to save for retirement. They're regulated, insured, managed by people who know way more about the market than you do, and have built-in diversification. Certainly, some funds are a bad investment (high-load funds, disreputable firms that engage in a lot of "churning" to pad their fees), but for the most part, mutual funds allow laypeople to benefit from the equity market without having to take on a lot of risk.
berkshire hathaway ftw
like a mutual fund but a stock
Usually you have to be the "age of majority" aka 21 to buy stock.
"Account Types
Custodial - an account set up by an adult for the benefit of a minor. The child becomes the sole owner and has full rights to the account when he/she reaches the age of majority in that state. The age of majority is usually 21, except in the following states where it is currently 18: AK, CA, DC, KY, LA, ME, MI, NV, SC, SD, VA. Consult the laws in your state for more information.
Joint - an account co-owned by two or more individuals.
Individual - an account owned by one individual. The individual must be of legal age to open an account. Legal age varies by state, but it is typically 21 except in the following states where it is 18: AK, CA, DC, KY, LA, ME, MI, NV, SC, SD, VA.
Corporate - an account set up by a corporation.
Investment Club - an account owned by an investment club that is managed by one authorized agent.
Partnership - an account owned by a partnership with a designated authorized agent for the group.
Trust - a brokerage account set up under legal arrangement of a trust."
http://www.mystockfund.com/Glossary.aspx
I don't agree with this at all. No-load mutual funds from a reputable firm are a fantastic way to save for retirement. They're regulated, insured, managed by people who know way more about the market than you do, and have built-in diversification. Certainly, some funds are a bad investment (high-load funds, disreputable firms that engage in a lot of "churning" to pad their fees), but for the most part, mutual funds allow laypeople to benefit from the equity market without having to take on a lot of risk. I have read the book he is talking about, it talks about investing in an S&P index fund.
that is a guarnteed way to make money (or lose) with the market.
being young, you can afford to take more risks, and you should. Sure, if you have 10k. put 3k in an index fund if you want to play it safe, but there is no reason to tell him not to buy mutual funds because some underperform.
I don't agree with this at all. No-load mutual funds from a reputable firm are a fantastic way to save for retirement. They're regulated, insured, managed by people who know way more about the market than you do, and have built-in diversification. Certainly, some funds are a bad investment (high-load funds, disreputable firms that engage in a lot of "churning" to pad their fees), but for the most part, mutual funds allow laypeople to benefit from the equity market without having to take on a lot of risk. Most people would probably agree, but keep an open mind and read this, and keep in mind that the author is an old-school, pipe-hittin' fundamentals guy:
http://www.jstor.org/view/00221082/di992047/99p00954/0
Cliffs:
-3% of all MF's go tits up every year
-When they die they're pulled from the dataset
-If you included the ones that died overall MF's have vastly underperformed the S&P
99.99999999999999999999999 % of teenagers have absolutely no business trying to invest in individual stocks.
Actually, the same could be said for the vast majority of adults.
Usually you have to be the "age of majority" aka 21 to buy stock. no
http://www.jstor.org/view/00221082/di992047/99p00954/0 Thanks for the link, but I can't seem to access it. It appears to require an account of some sort.
Cliffs:
-3% of all MF's go tits up every year
-When they die they're pulled from the dataset
-If you included the ones that died overall MF's have vastly underperformed the S&P This makes sense, and I see your point. Perhaps I should've elaborated. I wasn't suggesting that people should just blindly pump money into their mutual funds. :) It's important to read your quarterly reports and assess whether or not you're getting the return you expected/hoped for. So far, the funds I'm invested in have been profitable. If one of them starts slipping, or doesn't seem to be gaining as fast as it should, I'd move the money into something else.
That said, I have other investments beyond mutual funds. While mutual funds can provide built-in diversification across multiple companies in a single sector, you should also spread your money across the different sectors themselves. Real-estate, biotech, commodities, gold, your portfolio should (eventually) be a mix of all of the above. You simply vary the proportions in concert with market trends. Oil at a 50-year high? Sell it, lock in the gains, and buy some US dollar, which is set to bottom out. Of course, a beginner starting out with only $10k can't do this, which is why I suggested something safe, which is virtually guaranteed to return some gains, as opposed to buying individual stocks which, without education and insight, is little more than a crap shoot. He could easily lose it all if he doesn't know what he's doing. Picking a winning mutual fund is much easier than picking a winning stock. Or, at least, one that's not about to implode.
REITs give far more divendend yield than energy corps.
Thanks for the link, but I can't seem to access it. It appears to require an account of some sort. Sorry about the link - I'm on a university terminal, didn't realize they probably have some sort of institutional account for that site. If you want the article just send me a PM with an email address, I was able to download it from the site - same goes to anyone who wants it but doesn't have access. It's pretty big (29 pages), but if you're into that sort of thing it's interesting.
I'm hip to the jive in your post, figured somebody would disagree with the MF statement. Overall I think they're an ok thing for the average investor, so long as they're being defensive and realize the odds are they won't consistently beat the market with a MF. Personally I think index funds are a better choice for capital preservation, mainly because they're cheaper and don't have the 3% mortality/year issue.
In general you want to take your biggest risks when you're young and slowly transition to a more defensive position gradually. If he were my kid I'd tell him to take on as much risk as he can tolerate (use paper trading to figure out what that is before he starts trading real $$$), and use the number of positions to dampen the risk, probably holding his 10k in 10 stocks. Avoid garbage (pink sheets, OTC, etc.). Once he gets comfortable (and if he was interested enough) I'd start working in some hedging strategies with options.
no Yes, in certain states you do, btw I posted a source and thanks for the neg.
More Proof:
http://www.investopedia.com/terms/u/ugma.asp
http://www.investopedia.com/terms/c/...ialaccount.asp
To OP if you can buy stock in your state at 18 then like others said talk to a broker and put alot of research into the companies you want to invest in.
When i turn 18 i want to get into stocks. I saw that one thread to invest 500K, and sum dude suggested sum enegery company, and stocks are leik 16 bucks a share, so with 500K invested he'd be making 13K a month on dividens. Although i don't have 500K to drop, 10K would do. now, i don;t know much about the stock market or what to invest in exactly. any adivce and help, such as websites that teachteh basics, where you cna monitor your stocks and stuff woudl be much appreciated
Answer:
if you are new to stocks.. please talk to a broker before you make any final decisions
Answer:
if you are new to stocks.. please talk to a broker before you make any final decisions that would probably be the best idea..i need to pay him though don't i?
Answer:
Answer:
www.investopedia.com
Read and Learn. Be smart with your money.
Answer:
I know this isn't what you want to hear, and it's not nearly as "sexy" as buying stocks, but if you're 17 now, and you've got $10k to spare, you could invest that in a low-risk mutual fund, add $100/month, and you'd be a millionaire by age 60. You'd have $2.2 million by age 65. That's assuming an average 10% rate of return.
If you choose to play the markets, with your lack of experience, you'll get eaten alive. That $10,000 will disappear faster than a Twinkie on Rosie O'Donnell's desk. Just something to think about.
Answer:
that would probably be the best idea..i need to pay him though don't i? yeah, you do
go get a copy of barrons or the wall street journal
start reading it
at first, it will be hard to understand, but over time, you will understand what to look for
plus, barrons makes great suggestions on stocks that i have made laot of money on by following them
make sure the stuff makes sense before you start putting your money into it
Answer:
When i turn 18 i want to get into stocks. I saw that one thread to invest 500K, and sum dude suggested sum enegery company, and stocks are leik 16 bucks a share, so with 500K invested he'd be making 13K a month on dividens. Although i don't have 500K to drop, 10K would do. now, i don;t know much about the stock market or what to invest in exactly. any adivce and help, such as websites that teachteh basics, where you cna monitor your stocks and stuff woudl be much appreciated You won't like this answer, but you need to start by reading some basic books and seeing which approaches sound like your style. Are you a trader (short-term, hrs to days) or an investor (1 yr+)? Do you believe in fundamental analysis or technical analysis? Do you like dividends or do you prefer stocks that aggressively reinvest that money for growth? Is your risk tolerance on the high or low end of the spectrum?
Here are a few tips for a beginner:
*Technical analysis is waaaaay easier to learn than fundamental analysis, so realize that you'll most likely be biased to liking that style even though it may not be right for you.
*Always consider real return when looking at a trade/investment, i.e. learn the effects tax and commissions have on your overall return.
*When buying books beware books that try to sell you a system, look for things that simply present how things work or how people use certain methods.
*Mutual funds are a ripoff - if you want to see why read A Random Walk Down Wall Street by Burton G. Malkiel.
*Can't stress this enough - once you start to get a grasp on how you want to trade/invest go to Yahoo Finance and make some portfolios that trade your system with fake money and watch how they do, and probably more importantly, how you deal with their performance (want to sell to early, freak out if they take a major hit, etc.).
Good luck, mayng.
Answer:
hey thanks alot everyone, big help!
Answer:
thestreet.com
cnbc.com (and watch the channel)
finance.yahoo.com
stockpickr.com
are some of my favorites
you also need a broker, i use scottrade, it is alright...zecco.com is around too, but it take a couple weeks i hear to get an account set up.
The dumbest thing you could do is throw all your money in one stock.
If you want to be a dividend investor, just check out a few mutual funds that pay dividends. A mutual find will keep you more diversified. i have 5k in ADVDX, that is worth a look, and a good bargain at this price, IMO.
read up A LOT before you do anything. it is serious business, and pros are out there to try to get you to lose money (so they gain). So know what you are doing
Answer:
*Mutual funds are a ripoff - if you want to see why read A Random Walk Down Wall Street by Burton G. Malkiel. I don't agree with this at all. No-load mutual funds from a reputable firm are a fantastic way to save for retirement. They're regulated, insured, managed by people who know way more about the market than you do, and have built-in diversification. Certainly, some funds are a bad investment (high-load funds, disreputable firms that engage in a lot of "churning" to pad their fees), but for the most part, mutual funds allow laypeople to benefit from the equity market without having to take on a lot of risk.
Answer:
berkshire hathaway ftw
like a mutual fund but a stock
Answer:
Usually you have to be the "age of majority" aka 21 to buy stock.
"Account Types
Custodial - an account set up by an adult for the benefit of a minor. The child becomes the sole owner and has full rights to the account when he/she reaches the age of majority in that state. The age of majority is usually 21, except in the following states where it is currently 18: AK, CA, DC, KY, LA, ME, MI, NV, SC, SD, VA. Consult the laws in your state for more information.
Joint - an account co-owned by two or more individuals.
Individual - an account owned by one individual. The individual must be of legal age to open an account. Legal age varies by state, but it is typically 21 except in the following states where it is 18: AK, CA, DC, KY, LA, ME, MI, NV, SC, SD, VA.
Corporate - an account set up by a corporation.
Investment Club - an account owned by an investment club that is managed by one authorized agent.
Partnership - an account owned by a partnership with a designated authorized agent for the group.
Trust - a brokerage account set up under legal arrangement of a trust."
http://www.mystockfund.com/Glossary.aspx
Answer:
I don't agree with this at all. No-load mutual funds from a reputable firm are a fantastic way to save for retirement. They're regulated, insured, managed by people who know way more about the market than you do, and have built-in diversification. Certainly, some funds are a bad investment (high-load funds, disreputable firms that engage in a lot of "churning" to pad their fees), but for the most part, mutual funds allow laypeople to benefit from the equity market without having to take on a lot of risk. I have read the book he is talking about, it talks about investing in an S&P index fund.
that is a guarnteed way to make money (or lose) with the market.
being young, you can afford to take more risks, and you should. Sure, if you have 10k. put 3k in an index fund if you want to play it safe, but there is no reason to tell him not to buy mutual funds because some underperform.
Answer:
I don't agree with this at all. No-load mutual funds from a reputable firm are a fantastic way to save for retirement. They're regulated, insured, managed by people who know way more about the market than you do, and have built-in diversification. Certainly, some funds are a bad investment (high-load funds, disreputable firms that engage in a lot of "churning" to pad their fees), but for the most part, mutual funds allow laypeople to benefit from the equity market without having to take on a lot of risk. Most people would probably agree, but keep an open mind and read this, and keep in mind that the author is an old-school, pipe-hittin' fundamentals guy:
http://www.jstor.org/view/00221082/di992047/99p00954/0
Cliffs:
-3% of all MF's go tits up every year
-When they die they're pulled from the dataset
-If you included the ones that died overall MF's have vastly underperformed the S&P
Answer:
99.99999999999999999999999 % of teenagers have absolutely no business trying to invest in individual stocks.
Actually, the same could be said for the vast majority of adults.
Answer:
Usually you have to be the "age of majority" aka 21 to buy stock. no
Answer:
http://www.jstor.org/view/00221082/di992047/99p00954/0 Thanks for the link, but I can't seem to access it. It appears to require an account of some sort.
Cliffs:
-3% of all MF's go tits up every year
-When they die they're pulled from the dataset
-If you included the ones that died overall MF's have vastly underperformed the S&P This makes sense, and I see your point. Perhaps I should've elaborated. I wasn't suggesting that people should just blindly pump money into their mutual funds. :) It's important to read your quarterly reports and assess whether or not you're getting the return you expected/hoped for. So far, the funds I'm invested in have been profitable. If one of them starts slipping, or doesn't seem to be gaining as fast as it should, I'd move the money into something else.
That said, I have other investments beyond mutual funds. While mutual funds can provide built-in diversification across multiple companies in a single sector, you should also spread your money across the different sectors themselves. Real-estate, biotech, commodities, gold, your portfolio should (eventually) be a mix of all of the above. You simply vary the proportions in concert with market trends. Oil at a 50-year high? Sell it, lock in the gains, and buy some US dollar, which is set to bottom out. Of course, a beginner starting out with only $10k can't do this, which is why I suggested something safe, which is virtually guaranteed to return some gains, as opposed to buying individual stocks which, without education and insight, is little more than a crap shoot. He could easily lose it all if he doesn't know what he's doing. Picking a winning mutual fund is much easier than picking a winning stock. Or, at least, one that's not about to implode.
Answer:
REITs give far more divendend yield than energy corps.
Answer:
Thanks for the link, but I can't seem to access it. It appears to require an account of some sort. Sorry about the link - I'm on a university terminal, didn't realize they probably have some sort of institutional account for that site. If you want the article just send me a PM with an email address, I was able to download it from the site - same goes to anyone who wants it but doesn't have access. It's pretty big (29 pages), but if you're into that sort of thing it's interesting.
I'm hip to the jive in your post, figured somebody would disagree with the MF statement. Overall I think they're an ok thing for the average investor, so long as they're being defensive and realize the odds are they won't consistently beat the market with a MF. Personally I think index funds are a better choice for capital preservation, mainly because they're cheaper and don't have the 3% mortality/year issue.
In general you want to take your biggest risks when you're young and slowly transition to a more defensive position gradually. If he were my kid I'd tell him to take on as much risk as he can tolerate (use paper trading to figure out what that is before he starts trading real $$$), and use the number of positions to dampen the risk, probably holding his 10k in 10 stocks. Avoid garbage (pink sheets, OTC, etc.). Once he gets comfortable (and if he was interested enough) I'd start working in some hedging strategies with options.
Answer:
no Yes, in certain states you do, btw I posted a source and thanks for the neg.
More Proof:
http://www.investopedia.com/terms/u/ugma.asp
http://www.investopedia.com/terms/c/...ialaccount.asp
To OP if you can buy stock in your state at 18 then like others said talk to a broker and put alot of research into the companies you want to invest in.