The official lounge stock market & investment advice thread

[hayZ]

It's the official lounge stock market investment advice thread.

I have been interested in the markets and investments since I was a kid and have been an active investor since my teenage years.. I have a degree in business and a minor in finance and accounting.

I have a fairly good track record over 2 decades of investing..

If you have any questions about investing or how the stock market works, or bonds, etc. please feel free to post them. I will answer all questions..

I'm not expert, but no one really is.. The market has too many variables, but there is a way to pinpoint good value and make wise investments..

My strategy involves long term investments and not get rich quick type trading


So please, ask away and I shall answer

What would be the best way for a newbie to learn how to invest, if you had to start it all over again where would you start? How would you do it? etc.

I'm thinking of investing in the future once I have some capital on the side.

Oh, and I'm from the UK so I don't know if ALL of this jargon applies in every sense.

[Sugar Adam Ali]

What would be the best way for a newbie to learn how to invest, if you had to start it all over again where would you start? How would you do it? etc.

I'm thinking of investing in the future once I have some capital on the side.

Oh, and I'm from the UK so I don't know if ALL of this jargon applies in every sense.

Ok, first thing you do is set aside some cash, at least 500-1000 bucks.. Most minimum investments when starting an account require initial investment of 500$ roughly..

2. Find a brokerage company you feel comfortable with.. I would recommend the one I use Charles schwab, but there are others like e-trade, scottrade, etc..
All these companies have websites and so just google them and check them out.. Look for fees and trading commission.. A flat fee for commission is best, at schwab I pay 8.95 per trade, but others like e-trade have them as low as 4.95 and have special deals like no commission for your first 6 months.
I like schwab because it has a long track record, have replaced money that was ripped off by identify theft, and they are very low cost for being a major brokerage.. Plus they have a good website, and a 24/7 help line, and every time I have called with a question they give great customer support, even if it's over 200 dollar trade and not thousands of dollars.. I highly recommend them, but use whoever you want

3. Decide what type of account you want, there are several types..
ROTH IRA or standard IRA -individual retirement account is an account where you can put money into and it's tax free when you take it out.. But there is a limit about 5,500 each year and you can't touch it till your 65 years old..
Then there are just standard accounts, which you can put unlimited money in and touch it anytime but there is usually big fees if you withdraw within the first 30 days, but afterwards nothing but your commission fees in each trade, and when money comes out it is taxed.. I usually invest in my Roth IRA til I hit the limit then use my standard account the rest of the year

4. Once my account is open and I have money in there, I would buy an index fund at each month put money into it.. It's very easy to buy stock once you have an account open.. I do all my online and never have to talk to anyone, it's very convenient.. If you sign in and surf the we page you will see the options to buy or sell and it's very easy.. Each investment has a ticker symbol, like apple is appl, or 3d systems is DDD, you can search for different symbols and just click and buy..

4. I highly suggest depending on your age to open an IRA preferable a Roth IRA. From there, find an index fund that tracks an index, and simply plug money in each month.. Doing this every month for 15,35,35 years, and reinvesting the dividends, you will have a huge nest egg once you hit 65 and are allowed to take it out with no fees or taxes..

An index fund is a fund that owns shares in all the stocks in a category..
Down jones index- has all money invested in Dow jones stocks-which are the biggest companies in the world spread across different business areas ie technology, oil, banks, manufacturing, etc..
I use an S&P index that owns shares in all the top 500 companies.
There are tech indexes that just invest in all tech companies..
China index invests in all china, etc etc..

If you were just now 65 years old and could touch your money and had been investing in index funds for 40 years or since the age of 25 in 1974.. You would be a millionaire or damn close to it...

This should point you in the right direction.. If your a beginning novice investor, just a simply account and investing in an index will help you out.. Rules might be alittle different in the UK but you can still invest in the stock market..

Index fund will take all the thinking and research, out of the equation.. I suggest every novice investor to invest in some sort of index fund,preferable one that tracks the S&P 500, or Dow jones or Nasdaq. Your first 10k invested should go there, if not everything you invest in a lifetime.. Picking individual stocks takes a lot more research and patience

[Sugar Adam Ali]

Just so you know...the key to making a lot of money on the stock market is buy low/sell high.

If a stock is trading for $50, what ratios and figures to you use to see if it's high or low?

I will answer later

[Mr Ehrmantraut]

It's the official lounge stock market investment advice thread.

I have been interested in the markets and investments since I was a kid and have been an active investor since my teenage years.. I have a degree in business and a minor in finance and accounting.

I have a fairly good track record over 2 decades of investing..

If you have any questions about investing or how the stock market works, or bonds, etc. please feel free to post them. I will answer all questions..

I'm not expert, but no one really is.. The market has too many variables, but there is a way to pinpoint good value and make wise investments..

My strategy involves long term investments and not get rich quick type trading


So please, ask away and I shall answer

Only a ****ing *****ass mother****er would start a thread in the lounge of all places on the internet and in life, about some serious stuff and wanna get Advice... You have to truely be a socially awkward ******.. No offense Paulf

Congratulations!. You won the moron of the week award by a country mile.

[Sugar Adam Ali]

Congratulations!. You won the moron of the week award by a country mile.

If you can't tell the difference between educational discussions threads and ones where guys whine and cry about some girl, then u sir are the ******

[Butler]

Sugar, I called vanguard and there is no penalty/fee for withdrawing index fund so I can withdraw anytime which is good. I also only have to pay dividend tax and only time I have to pay capital gains tax is after I withdraw it.

This index fund is really good and the only risk is if market crash like in 2009. If it happens, I can easily withdraw my funds.

[Sugar Adam Ali]

Sugar, I called vanguard and there is no penalty/fee for withdrawing index fund so I can withdraw anytime which is good. I also only have to pay dividend tax and only time I have to pay capital gains tax is after I withdraw it.

This index fund is really good and the only risk is if market crash like in 2009. If it happens, I can easily withdraw my funds.

Sounds good man, but don't worry of the market crashes, it will go back up and then some...

People who sold out in 2009 during the crash, lost tons of money, if they didn't sell and just stayed patient, they could have bought more during the crash when everything was discounted and cheap, and rode the wave back up, having huge gains.. That's why I always say don't worry about the crashes, they suck, they happen, but they don't last and everything rebounds stronger than before, so don't cash out at the bottom, it's the worst possible thing to do..

You should put on what is known as a "stop loss" for your fund.. It's basically a command to sell if your value decreases by a certain percent.. Usually people have them at 30%, 25% etc.. Meaning if you had 10k invested in your fund and it dropped 25% to 7500, your broker would automatically sell your shares. It prevents a total loss, and caps your losses, so you know that the most I lose is 2500.. Ask your broker to put one on, and then monitor it,, as your investment grows to 12-13k, move up your stop price from 7500 to say 9k, as the higher the value goes so does the price point you want to cash out in cases of losses


Good luck

[Butler]

Sounds good man, but don't worry of the market crashes, it will go back up and then some...

People who sold out in 2009 during the crash, lost tons of money, if they didn't sell and just stayed patient, they could have bought more during the crash when everything was discounted and cheap, and rode the wave back up, having huge gains.. That's why I always say don't worry about the crashes, they suck, they happen, but they don't last and everything rebounds stronger than before, so don't cash out at the bottom, it's the worst possible thing to do..

You should put on what is known as a "stop loss" for your fund.. It's basically a command to sell if your value decreases by a certain percent.. Usually people have them at 30%, 25% etc.. Meaning if you had 10k invested in your fund and it dropped 25% to 7500, your broker would automatically sell your shares. It prevents a total loss, and caps your losses, so you know that the most I lose is 2500.. Ask your broker to put one on, and then monitor it,, as your investment grows to 12-13k, move up your stop price from 7500 to say 9k, as the higher the value goes so does the price point you want to cash out in cases of losses


Good luck

i put 25k (just like that lol).. i'll check that "stop loss" with vanguard.. i'll eventually transfer all my money to index fund..

[Sugar Adam Ali]

i put 25k (just like that lol).. i'll check that "stop loss" with vanguard.. i'll eventually transfer all my money to index fund..

Good stuff man, best of luck

[VERDUGO]

Bulls make money.
Bears make money.
PIGS GETS SLAUGHTERED!

Don't be greedy! You make some profit, sell it!