Who here knows.................

[nibor]

How to participate in the stock market?

 

[mattskramer]

How to participate in the stock market?

That is too vague a question. Books have been written on it. My advice for you is to contact T Rowe Price. A representative there will help educate you and set up any stock or mutual fund account that you want.

 

[nibor]

That is too vague a question. Books have been written on it. My advice for you is to contact T Rowe Price. A representative there will help educate you and set up any stock or mutual fund account that you want.

I don't mean to be vague, I was just wondering if anyone here participates without the so called "experts", and if you do................how, is it absolutely necessary, to use these experts to buy or sell or trade?


I should explain..........15 years ago I had purchased stock in a company that no one at the time even knew about, the "experts" told me that my investment in a company that they had no knowledge of was dangerous, bordering on stupid, but I did it anyway and last year the stock split 5 for 2, and today is worth more than twice what I bought it for.............but I don't know how to trade??????

 

[mattskramer]

I don't mean to be vague, I was just wondering if anyone here participates without the so called "experts", and if you do................how, is it absolutely necessary?

Okay. I see. I’m not that involved in playing with individual stocks. I don’t pick stocks. Instead, I simply have 2 general mutual funds that tend to follow the S&P 500. I check the funds every year or so and I occasionally add money to them at random. I play it middle-of-the-road safe and don’t sweat the ups and downs of the market. I’m confident that, in the long run (20-40 years), I will get a reasonably nice return. By the way, they are managed by T Rowe Price and Vanguard. I think that those two have good customer service.

 

[nibor]

No one here dabbles alone that can advise me.................?

 

[mattskramer]

I don't mean to be vague, I was just wondering if anyone here participates without the so called "experts", and if you do................how, is it absolutely necessary, to use these experts to buy or sell or trade?


I should explain..........15 years ago I had purchased stock in a company that no one at the time even knew about, the "experts" told me that my investment in a company that they had no knowledge of was dangerous, bordering on stupid, but I did it anyway and last year the stock split 5 for 2, and today is worth more than twice what I bought it for.............but I don't know how to trade??????

I don’t know what to tell you. Get a second, third, and fourth and fifth and sixth and seventh. Don’t trust just one individual. That would be my advice.

 

[nibor]

I don’t know what to tell you. Get a second, third, and fourth and fifth and sixth and seventh. Don’t trust just one individual. That would be my advice.

Your advise seems to be sound Matts, I'd just like to see if anyone else dabbles alone without the manipulation of brokers that are only there to make a living off of your back and hard earned dollars...................that really don't know it all, as much as you'd like to think they do...........I don't invest heavily in their game............but thought we could sort of learn together at least how to play by ourselves if we want to????????

I tried reading some of their books but most times don't completely understand the jargon or methodology, I've always liked playing hunches and many times am right with no formal training.

 

[mattskramer]

Your advise seems to be sound Matts, I'd just like to see if anyone else dabbles alone without the manipulation of brokers that are only there to make a living off of your back and hard earned dollars...................that really don't know it all, as much as you'd like to think they do...........I don't invest heavily in their game............but thought we could sort of learn together at least how to play by ourselves if we want to????????

I tried reading some of their books but most times don't completely understand the jargon or methodology, I've always liked playing hunches and many times am right with no formal training.

There might be bulletin boards suited just for people interested in stocks. I have no idea where they would be. Yet, they might also be breeding grounds for “pump and dump” scams.

 

[nibor]

There might be bulletin boards suited just for people interested in stocks. I have no idea where they would be. Yet, they might also be breeding grounds for “pump and dump” scams.

Well I ain't pushing anything, nor will I advize how to invest............the shell game that is run by the people on wallstreet is vile................I've got a little stock it does well..............but I'd like to take a little, split it off, and try to play some more hunches and see what shakes.........period.

It's all a game, just like poker.....................and I just thought there was someone who could share with me how to do it????????

 

[Paulie]

I would think it's a matter of using your own common sense and forecasting what companies you think, based on their place in the market, will be prosperous. As the times change, it's not really that difficult to see what areas of the market are going to prosper.

It helps when you aren't letting yourself get saturated by mainstream media and TV entertainment. That shit clouds your mind. But even the MSM will give away hints, at times.

 

[Delbert]

1) Open e*trade acct (click your mouse)
2) Send them some money to fund your acct.
3) Buy SRS,SKF,QID,DXD,GLD, and SLV in equal amounts
Wait 3 years.
Take your profits.

 

[William Joyce]

Buy low, sell high.

 

[ScreamingEagle]

I don't mean to be vague, I was just wondering if anyone here participates without the so called "experts", and if you do................how, is it absolutely necessary, to use these experts to buy or sell or trade?

It is not absolutely necessary to use the "experts". You can open your own online account and pick and trade stocks by yourself from home.

I should explain..........15 years ago I had purchased stock in a company that no one at the time even knew about, the "experts" told me that my investment in a company that they had no knowledge of was dangerous, bordering on stupid, but I did it anyway and last year the stock split 5 for 2, and today is worth more than twice what I bought it for.............but I don't know how to trade??????

OK, so you had some stock that doubled in 15 years...not a big deal. Using the Rule of 72, you can figure you made an average 4.8% a year on your investment...well below the average return of stocks in general. You might have done better with a CD...plus your money would have been secure, not at risk like with the stock you ignorantly purchased - which just as easily could have gone under.

 

[midcan5]

Right now is the time for contrarian buyers. Pick the low ones and wait. I used to know someone who would buy the bottom ten of the S&P 500 each year and sell at the end to repeat the process. Only lost money one year in ten. Diversification is the key if you have money and time, otherwise it is a bit of a guessing game. I haven't done much but several friends and relatives are on it all the time. Bonds and CDs can be safe places if you don't have the heart or the time, and often they are just as good especially if you didn't buy cisco or microsoft on day two.

http://beginnersinvest.about.com/cs/brokers1/a/042501a.htm

http://www.investopedia.com/university/stocks/stocks5.asp

This table demonstrates the change year to year. You can gain big if timing is right or lose big. lol

http://www.ski.org/Admin/RSPoole_grp/EBGrinnell/PDFs/2006 Callan_Returns.pdf

In case anyone tell you the stock market is so much better than SS check this out.

http://www.csmonitor.com/2004/1227/p01s03-cogn.html

 

[Zoomie1980]

No one here dabbles alone that can advise me.................?

Try Ameritrade or E-trade. You set up your account and go from there. They have resources to help you evaluate....but you are on your own. You can trade options and derivatives too. For futures, though you pretty much are still stuck going through a brokerage house.

 

[gonegolfin]

1) Open e*trade acct (click your mouse)
2) Send them some money to fund your acct.
3) Buy SRS,SKF,QID,DXD,GLD, and SLV in equal amounts
Wait 3 years.
Take your profits.

I think you have the right general idea (out of domestic, in real money), but I recommend the following ...

For your Gold and Silver, buy where you know there is real metal backing. I have absolutely no confidence that GLD is backed by real Gold. I do not believe that SLV is fully backed. I have the same level of confidence in gold and silver certificates issued by banks (I believe that the Bullion Banks both short and lease their gold - or have in the past). Make sure you purchase metal in allocated storage. GoldMoney.com, BullionVault.com, and the Perth Mint are viable options. Obviously holding some physical metal yourself also accomplishes this objective.

I made nice money shorting real estate and the bond insurers over the last eighteen months. In fact, I was probably in too early. I considered a few months ago shorting the credit card companies and big financials. I think that the credit card companies are still a potential play. But I am not greedy here. You can only earn shorting profits in US Dollars. Thus, the US Equity markets can be falling hard in terms of real value (Gold, Silver, Oil, Base Metals, Uranium, Food Commodities, etc.), but can still tread water in nominal dollars. If that is the case, you could lose shorting the market when it is going down hard against everything else except the Dollar. The US Central Bank and Wall Street does not want the markets falling prohibitively against the Dollar and will enact (Fed) monetary policy to achieve such a goal (but they will not be able to prevent the market from falling in real money). This creates the illusion that the market is actually OK and 99% of folks fall for it. They may or may not be successful in keeping the market stable in terms of nominal Dollars. But you have an extra headwind against you when you short because of these monetary policy games. What you really want to do is short the US equity markets in terms of Gold or some other commodity.

Too many investors are wrapped up in US only investments. Investors today should have a nice portion of their portfolio invested in conservative, high dividend paying, foreign stocks in countries that have currencies that are likely to rise against the Dollar. I am thinking precious metals and base metals mining, energy (especially oil and natural gas), agriculture, utilities and infrastructure ... in countries such as Australia, New Zealand, Canada, Singapore, and some in China (as an example). Many of these investments have double digit yields at present (not just the Canadian energy trusts). The earnings in these companies are sound, despite the fact that some of them have been beaten up in price the last few months because of a perceived tie to US markets. This will change and presently the dividend yields are mind boggling. You can also apply the same approach for foreign bonds. And as far as short term cash is concerned, keep some US Treasuries (not the typical money market fund that is infested with varying amounts of toxic garbage) as well as foreign money market securities (The Merk Fund is excellent - MERKX).

But I would not use a traditional US broker for your foreign stock and bond investments. And do not purchase the pink sheets or ADRs. You want the purchases made off of the actual foreign exchanges in the native foreign currency ... with a broker that can command a tight spread and charge a reasonable commission. I do not know of many such brokers (maybe someone can list some other names). But I have had very good experience with Euro Pacific Capital (Peter Schiff's company) for this part of my portfolio.

Brian

 

[Delbert]

thanks for the post Brian.
I enjoy reading your comments.

 

[nibor]

I think you have the right general idea (out of domestic, in real money), but I recommend the following ...

For your Gold and Silver, buy where you know there is real metal backing. I have absolutely no confidence that GLD is backed by real Gold. I do not believe that SLV is fully backed. I have the same level of confidence in gold and silver certificates issued by banks (I believe that the Bullion Banks both short and lease their gold - or have in the past). Make sure you purchase metal in allocated storage. GoldMoney.com, BullionVault.com, and the Perth Mint are viable options. Obviously holding some physical metal yourself also accomplishes this objective.

I made nice money shorting real estate and the bond insurers over the last eighteen months. In fact, I was probably in too early. I considered a few months ago shorting the credit card companies and big financials. I think that the credit card companies are still a potential play. But I am not greedy here. You can only earn shorting profits in US Dollars. Thus, the US Equity markets can be falling hard in terms of real value (Gold, Silver, Oil, Base Metals, Uranium, Food Commodities, etc.), but can still tread water in nominal dollars. If that is the case, you could lose shorting the market when it is going down hard against everything else except the Dollar. The US Central Bank and Wall Street does not want the markets falling prohibitively against the Dollar and will enact (Fed) monetary policy to achieve such a goal (but they will not be able to prevent the market from falling in real money). This creates the illusion that the market is actually OK and 99% of folks fall for it. They may or may not be successful in keeping the market stable in terms of nominal Dollars. But you have an extra headwind against you when you short because of these monetary policy games. What you really want to do is short the US equity markets in terms of Gold or some other commodity.

Too many investors are wrapped up in US only investments. Investors today should have a nice portion of their portfolio invested in conservative, high dividend paying, foreign stocks in countries that have currencies that are likely to rise against the Dollar. I am thinking precious metals and base metals mining, energy (especially oil and natural gas), agriculture, utilities and infrastructure ... in countries such as Australia, New Zealand, Canada, Singapore, and some in China (as an example). Many of these investments have double digit yields at present (not just the Canadian energy trusts). The earnings in these companies are sound, despite the fact that some of them have been beaten up in price the last few months because of a perceived tie to US markets. This will change and presently the dividend yields are mind boggling. You can also apply the same approach for foreign bonds. And as far as short term cash is concerned, keep some US Treasuries (not the typical money market fund that is infested with varying amounts of toxic garbage) as well as foreign money market securities (The Merk Fund is excellent - MERKX).

But I would not use a traditional US broker for your foreign stock and bond investments. And do not purchase the pink sheets or ADRs. You want the purchases made off of the actual foreign exchanges in the native foreign currency ... with a broker that can command a tight spread and charge a reasonable commission. I do not know of many such brokers (maybe someone can list some other names). But I have had very good experience with Euro Pacific Capital (Peter Schiff's company) for this part of my portfolio.

Brian

Yes thank you Brian.............. now I can proceed figuring out what you said..............but it's enjoyable for me to listen to the jargon and then figure out what it all means...........


Thank you all for participating...............I appreciate all the different opinions.................it helps formulate my own...........