New to Investing: Seeking Advice

[sjay]

Willie,he's hardly in the 8 or 9 figures range when he's buying 35 shares,that's less than chump change range. You would think that Wake(after getting advice)would realize that with his very meager money,his only option is by going with commission free index funds or etf's,looks like he's determined to learn the hard way.

 

[william the wie]

Willie,he's hardly in the 8 or 9 figures range when he's buying 35 shares,that's less than chump change range. You would think that Wake(after getting advice)would realize that with his very meager money,his only option is by going with commission free index funds or etf's,looks like he's determined to learn the hard way.

True and even when you don't set out to challenge yourself the learning curve will leave deep emotional scars.

 

[SteadyMercury]

Just chuck it all into VWELX, then go watch some basketball or something.

 

[Mac1958]

Just chuck it all into VWELX, then go watch some basketball or something.

LOL, I've heard worse advice!

.

 

[Spiderman]

Here's my advice

Don't look for investing advice on an anonymous message board.

 

[SteadyMercury]

Like any advice some is good and some is bad and one has to filter as best they can. I don't see any reason one can't interact with smart guys like William the Wie and get some useful solid info or at the very least have a discussion where they can bounce their ideas off each other and maybe gain some new perspectives. I've seen some outstanding threads on bogleheads, morningstar, and early retirement forums where people have questions and get great answers.

Conversely many an investor has gone to a "professional" and ended up with a financial adviser who loads them up with funds they get a commission on and take a fee on top of it, or bought a book by an "expert" that had them making all sorts of poor investment decisions based on expert's opinion of what will happen in the future regarding inflation etc.

Good advice = ask away, but keep a gain of salt handy.

 

[william the wie]

Like any advice some is good and some is bad and one has to filter as best they can. I don't see any reason one can't interact with smart guys like William the Wie and get some useful solid info or at the very least have a discussion where they can bounce their ideas off each other and maybe gain some new perspectives. I've seen some outstanding threads on bogleheads, morningstar, and early retirement forums where people have questions and get great answers.

Conversely many an investor has gone to a "professional" and ended up with a financial adviser who loads them up with funds they get a commission on and take a fee on top of it, or bought a book by an "expert" that had them making all sorts of poor investment decisions based on expert's opinion of what will happen in the future regarding inflation etc.

Good advice = ask away, but keep a gain of salt handy.

There is a problem with good advice and that is that it is counterintuitive. I found out a while back why I should never mention how rebalancing a portfolio works. Do you have any idea how many men literally scream, "You're crazy! Sell my winners and invest in my losers!?! You are totally insane!" or words to that effect?

Selling covered options on lower volatility issues to offset purchases of options of higher volatility issues is also something best done over the internet.

And do not try to mention that market prediction threads are only done for fun because an unhedged position is the express lane to bankruptcy yet no one will believe you.

 

[Jacob Adom]

If you are a beginner trader looking to going pro in the stock market, OTC Bully might be the best place for you for great stock market tips on current market trends.

 

[fmdog44]

At 5PM Central time on CNBC Jim Kramer is on M-F. I strongly urge you to first tune in to him and second read his books. if you chose to manage your own money then you must get educated. Keep in mind one wrong move and you will regret it for a long time. People say yeah I lost money but it will come back. Really? If you had $100,000 and lost $25,000 then the market doubled the next year, how much would you have after it doubled versus how much you would have had you not lost the 25K? Greed will be your greatest enemy and it comes in the form of temptation. It takes an enormous amount of guts to hold steady in conservative investments while the market catches fire and starts souring. The great story of greed is the people that bought in to the internet stocks when the internet started and overnight they lost their buts forever. Don't sell in a downturn. Downturns are time to start buying. "Buy low-sell high"

 

[Wake]

I started narrowing down select stocks that I like and have'em on my watch list on Fidelity.

Now I'm waiting for them to hit their low points so I can snatch them all up.

 

[HenryBHough]

At 25 stocks are good. Best, though, using dollar cost averaging - buying a set amount every month (or week) regardless of the market prices. HOWEVER, always keep enough liquid cash to get you through minimum three, better six, months of unemployment. If a person gets laid off due to a crumbling economy their stocks are also going to be hammered and selling then to get cash to stay alive will be a double loss.

 

[sjay]

I started narrowing down select stocks that I like and have'em on my watch list on Fidelity.

Now I'm waiting for them to hit their low points so I can snatch them all up.

I'm curious, how do you determine their low point?

 

[HenryBHough]

To even come close to determining high and low points it is essential that one become comfortable with leaving a little bit of money on the table.

 

[sjay]

[
es sential that one become comfortable with leaving a little bit of money on the table.[/QUOTE]

Was looking for an answer from wake,but what is the above comment even mean in simpler terms.

 

[HenryBHough]

It means that one watches the indicators and when prices have gone lower at lightning speed then slow down, dropping only in small increments, it's time to figure that the trend is about to reverse. That's the time to buy. The "money on the table" is the small gain you might not later realize by buying when you did but that amount is minimal compared with the small gain you might make by waiting and possibly finding yourself buying at the time of a sudden reversal.

Ditto in selling. The trick is to estimate when a market is nearing what you figure to be a peak and sell then. It might go up a little more in the next few days. If it does then that's the money left on the table. Small compared to the risk of waiting for an actual high which quickly reverses itself and leaves you selling far below the peak.

 

[Wake]

I started narrowing down select stocks that I like and have'em on my watch list on Fidelity.

Now I'm waiting for them to hit their low points so I can snatch them all up.

I'm curious, how do you determine their low point?

I'm still only a little experienced with investing.

The main method I use is watching the 52-week high/low period to see how high and low the stock went within 52 weeks. If there's a fairly decent stock I like that's relatively volatile, I'l wait for it to dip, snatch them up while inexpensive, and then wait and sell them when their pirce rises, even if it takes a few months.

Probably making some rookie mistakes along the way tho...

 

[SteadyMercury]

The main method I use is watching the 52-week high/low period to see how high and low the stock went within 52 weeks. If there's a fairly decent stock I like that's relatively volatile, I'l wait for it to dip, snatch them up while inexpensive, and then wait and sell them when their pirce rises, even if it takes a few months.

What if it never rises past your buy point, or does so at a rate slower than other stocks or investments?

 

[fmdog44]

Many of you are hung up on stock prices. you are not buying a stock rather, you are buying a business. The pie in the sky dream is to buy low and sell high but not one person on earth can tell you what tomorrow will bring. Remember this and burn it in to your brain, regardless of whose advice to take the money you may lose is YOUR money and as you watch it disappear you may never go with that advice again.

 

[SteadyMercury]

I sure as hell don't get hung up on stock prices, I just buy broad index funds and hold.

 

[fmdog44]

Nothing wrong with index funds for the long haul - look at the DJ Index for example if anyone owns that. I have three Vanguard funds and sold a TRP Index funds last year and got hammered yesterday on my income tax for selling it.