I am looking to start investing some money into some stocks, but I've never done this before, nor have I had any training on how to go about this. Advice, sites, experiences, etc are humbled requested! Where do I start?




I am looking to start investing some money into some stocks, but I've never done this before, nor have I had any training on how to go about this. Advice, sites, experiences, etc are humbled requested! Where do I start?
It's ill-advised to buy individual stocks unless you have at least $100K to plow into it.
When you're starting out, Roth IRA's are usually the best way to go along with mutual funds.
I very highly recommend subscribing to "Money" magazine. It's a great, easy-to-understand resource for investors, especially if you're just starting out. They also have a great website full of lots of useful info.
"Kiplinger's" magazine is also a good resource, especially for info about mutual funds.
Once you've gathered more info, you can do all this yourself through a site like E-Trade. However, I highly recommend perhaps investing with a company like Ameriprise. When I first started with them with just a couple thousand, they still treated me well and they've mostly helped me make money with my portfolio. I pay them $500 a year to manage my money though, but the expertise and access is worth basically the $42 a month that breaks down to.
"She has written so well, and marvellously well, that I was completely ashamed of myself as a writer...But this girl, who is to my knowledge very unpleasant and we might even say a high-grade bitch, can write rings around all of us who consider ourselves as writers"
Ernest Hemingway on writer, aviation pioneer and horse trainer Beryl Markham





before you do anything read 'investing 101' at

Hi Strawberry Switchblade - love the name btw
Melonie and NinaDaisy are giving food advice. Even if you had more than 100k, mutual funds would be your best start. The advice for most is pretty standard. Do the reading. You don't have to do a lot, but understand the basics to help you determine your level of risk. The market is down now and on a dollar cost averaging basis - meaning you invest a certain amount regularly to take advantage of rises and minimize losses. It is not as sexy as accidentally picking a winning stock and having it double, but even the pro's don't do that well.
The advice on the IRA is right on target. Excellent advice. Please follow that. Your annual limit in that is probably around $5,000 to $6,000. Not sure how much you have to invest. In that even I would invest and three or four mutual funds that have some asset diversity - in other words a foreign mutual fund, maybe a good balanced fund and another one or two that is somewhat diverse from the others. You are young enough that I wouldn't include a bond fund, but others may feel differently. You probably have this, but I would also suggest a six month to one year cash fund, maybe in monthly CD's or a money market account to cover things for yourself if you lost your job in some way, were temporarily disabled, that type of thing to give you a chance to stay on your feet for awhile financially. I don't know what other shoulders you have to lean on so if self sufficient, maybe consider that as a first investment. Once you have that proceed to the others. Again Roth IRA for you - 1st thing to do when investing for the future. A medical account savings plan may also be something for you to consider.
Much depends on how much risk you are willing to assume. I like the suggestion of E-Trade as well, but you may want to talk with a financial adviser too. Personally, my success with them has been lousy. The ones I have worked with have one object in mind. Their commission. Sounds unfair, but I have yet to have one that led me in a direction that equaled my own.
There will be others with great or even better advice I imagine, but the main thing, even it you put it in your mattress (I don't recommend that!) you are headed in the right direction.
Ben Kickt



Three Rules of Investing
1) It has to be Automatic. (This way you'll never have to worry about timing the market and it takes only 15 minutes / Year)
2) Diversification (No single asset/industry/company/country can perform in every year. Even if you can predict certain companies will do well, chances are it is already priced in and will underperform)
* Diversification is enlightment. Index funds gives you diversification for free. You can invest in 5000 different companies in different countries for no cost and not worry about single companies/countries going bust
3) Buy Assets which produces cash (US Public companies earned more than half a trillion dollars in pure profit in 2008 despite armageddon. Those cash belongs to the stockholders. In good years they earn profits of more than $1,000,000,000,000 which belongs to the shareholders). Cash producing assets have the greatest advantage of *Compounding* working in their favor
In Summary,
* Invest 100 every week, the Total Market Index Fund by low-cost operators like Vanguard, (Fund Name: VTSMX)
or if you want to further diversify Internationally buy into VGTSX
The above in a nutshell is the knowledge gathered over the years by Ph.Ds, Nobel Laureates, Scientists, Researchers, and Geniuses who blew up Billions of Dollars.
Think about it, If Wall-Street with the smartest people on earth, and with all the information they can ever have, and with all the connection in Washington and with all the greatest technology they can buy and with no-cost trading, can blow-up trying to 'Time' or chase the next 'hottest' investment. Do you think you can do better?
Diversification is enlightment. Hopefully you get it as soon as possible.
Apart from WSJ/FT and some reputed magazines, don't read any other web-sites. It doesn't add any value. At least reading WSJ enhances your professional career

Oops. I typoed. They are giving good advice not food advice LOL.





^^^ lol





So it's not nutty to get started in investing right now???? I asked this in another thread I started. I know you can't "time" your investments. I'm just thinking that now, since the prices are low, it is a good time to get in it. Am I wrong thinking this?



Yeah, I forgot to add the biggest mistake of investing
*Not Investing*
i) Investing is very simple and with modern day automatic transfers and low funds, you only have to spend 15 minutes / Year
ii) You don't have to read anything or follow any macro economic trends. Just focus on your job and earn more money (so that you automatically invest more)
iii) Don't be fooled by chart reading and technical analysis mumbo jumbo. Ph.D research have proved there is no relation of past price movements to future price movements. None of the technical analysis people will ever reveal their true returns. More than 90% of them underperform the market. The greatest investors of all time Warren Buffett, Peter Lynch et al never read any charts.
If technical analysis worked, Banks could have paid $100 Million salaries to the greatest technical analysis guys and convert their 1 Trillion Dollars Assets into Multi-Trillion Dollars. Instead they go Kaput in chasing the next 'hottest' investment





^^ Thanks. So now I'm wondering, how are you financially?
Xanfiles, can you explain everything you just said using elementary/ beginner's level terminology? Thanks hun.
Read lots. Read about different styles of trading (fundamental analysis, technical analysis, spreads, commodities, economic indicators, buy-and-hold, momentum...) Everyone will tell you they know how to make money, and most people don't. 90% of what you will read is garbage, but hopefully you will learn enough to be able to tell which 90% is garbage. Stock analysts don't know anything. Things have to either go up or down, so it's hard to distinguish between being brilliant and being lucky. Just because some "analysis" is consistant with what has already happened doesn't mean it's right or has any predictive power. And good luck
Oh,and figure out how much you can afford to lose and be disciplined about cutting your losses.
Once again, the conservative, sandwich-heavy portfolio pays off for the hungry investor
- Dr John Zoidberg





and this is exactly what they did successfully for many years !!! Also, this is exactly how 'joe sixpack' investors were able to be successful for many years. And the inconvenient truth is that your 'dollar cost averaging' theory depends on the fact that both WERE successful for many years. But all took larger losses than necessary when the economy turned bearish by refusing to prudently step to the sidelines, and instead continuing to pursue theories / trends / projections that no longer worked in a changed economy.If technical analysis worked, Banks could have paid $100 Million salaries to the greatest technical analysis guys and convert their 1 Trillion Dollars Assets into Multi-Trillion Dollars
That all depends on where you think the economy will be headed over the next few years, and where the profitability of companies is headed. Yes markets have fallen 20-25% over the past 18 months. Does this mean they must now start rising, or continue to fall another 20-25% ? Nobody knows that answer.I'm just thinking that now, since the prices are low, it is a good time to get in it. Am I wrong thinking this?
But what IS known is that the wave of financial problems which first manifested itself with 'subprime mortgage debt' also extends to other types of mortgages, and to other financial instruments tied to mortgage interest rates. What IS known is that our financial system is intimately interrelated, such that problems in one area can create additional problems in other areas ( thus yesterday's bailout of AIG). What IS known is that the true extent of financial problems has still not been put on the table.
What is also known, but not discussed much, is that the different economic / tax policies of America's two presidential candidates, as well as their likely approach to future economic bailouts, will have very different effects on American stock and bond markets after one is elected. So to some degree, this is another huge unknown.
Xanfiles is correct that 'not being invested' means you can't cash in on rising markets. But it also means that you won't take losses in falling markets. I'm only a 'dumb blonde with big tits' in the grand scheme of investing, but I pulled virtually all of my money out of US stocks and bonds many months ago ... and in the process avoided significant losses.











well, whether you subscribe to the idea or not, there ARE other investments besides stocks and bonds !!! My recent reload on 1oz gold bars has returned about 10% in a period of 6 weeks.
"She has written so well, and marvellously well, that I was completely ashamed of myself as a writer...But this girl, who is to my knowledge very unpleasant and we might even say a high-grade bitch, can write rings around all of us who consider ourselves as writers"
Ernest Hemingway on writer, aviation pioneer and horse trainer Beryl Markham





again while the 12% historic return is a technically correct claim, it does need to be taken with a 'grain of salt'. For example ...
... which shows that, over the past ten years, the S&P hasn't achieved any REAL gains at all versus US dollar inflation
Also the same link at points out the following ...
(snip)"According to Standard & Poor's, the dividend component was responsible for 40% of the total return of the last 80 years of the index. If we are to analyze the historical profitability of stock investments, this portion cannot be neglected."(snip)
This is an important consideration given that many S&P stocks have reduced dividend payments or stopped paying dividends altogether as a result of the last year's worth of financial distress and losses.
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