Posted on 06/20/2019 8:22:33 AM PDT by sonrise57
I don't know if this kind of question is allowed on Free Republic, but given that we have lots of people who have created wealth for themselves on here, I am wondering about something. I came into $2000 unexpectedly and thought I would use it to learn how to invest in the stock market as an independent investor. Thankfully, if it went away tomorrow I would be fine. I opened up an account on a low-cost online brokerage. This brokerage has investment ratings--- A, B, C, D, etc. I am wondering if these have any value or are they bupkus? Also, if you were an old man with a little cash laying around and wanted to learn about the market, what resources would you use? (preferably online). So far I have realized 245 in gains this past month. This is not my retirement money. I have that in a bunch of IRA and 403b's. It is really just for fun to see what I can do. Kind of like the DW playing the Wheel of Fortune slots in AC. (Which I don't approve of).
Before investing a cent, play around with tracking how your possible investments do, just on paper.
Over time, it is very very hard to beat an index fund that tracks the market; the market goes up, it goes down, but over years and decades, it goes up. You can’t go too far wrong with an S&P500 tracking index fund.
If you’re doing individual stocks...it’s like gambling, IMHO. Have fun.
Booze, boats or broads;)
Do you have access to illegal insider information? If not, you most probably won’t be able to beat the stock market long-term.
So if you’re looking for long term-growth, contact a low-cost mutual fund company like Fidelity or Vanguard. Buy their S&P 500 Index Fund. Then just let it ride.
But if you’re looking for a quick, explosive gain, go to your nearest casino. Bet it all on roulette, black or red (your choice).
Just my two cents.
I personally like Marketwatch for keeping abreast on what’s going on. For trading, you can use those low cost per trade companies or go with someone like Fidelity, which is who I use for trading. My son ventured into the crypto currency market about two years ago. Started with 2k and it’s now up to 40k in value. Not sure how that will play with Facebook’s new crypto coming out next year.
Open a Schwab account ... they have great education and research for beginners. They are not the cheapest discount broker, but they have good info on their site.
I don’t know how old you are. But if you are just staring to invest and have no retirement savings, open a no load mutual fund. I put my family, young and old me in TRowe Price.
If you have debts, use the 2k to pay them down.
Larry,age 82
Library - stocks for dummies. Ratings are about as reliable as movie ratings from critics and/or horse betting odds.
The best advice is to know your market and the stocks you’re buying so you know when things are going to be good or bad.
Diversify - $2000 will get you 1 share of Amazon or Google and about 20 shares of Apple. But that’s not going to give you much wiggle room or to buy other stocks.
I watched the market for a year before jumping in on my current investments to get a feel of how things were going. Also watch for stocks that give dividends - that way you’ll earn some money on the stock even if the value goes down.
Also note that if you buy and sell a stock within a year you owe roughly 30% of the profit for taxes. Hold it longer than a year and you’ll only owe 15%
Annnnd it’s 00 green! :)
If you’re going to jump in buying individual stocks with the plan of doing anything than buying and holding, you might as well throw your money away right now.
Day trading is not for the new or faint hearted.
Pick a company you like, buy its shares and don’t do anything for a year. Rinse, repeat.
Thanks.
Good advice.
That’s who I am using. I am wondering about their rating system. Any thoughts on that?
Not reading the post is an FR tradition:)
For learning about stocks, I buy stocks, not Mutual Funds. Goldman Sachs owns no one’s “Mutual Funds.” They buy stocks, Reits and bonds.
It is hard to buy small amounts without the purchase fees adding up. I would buy four stocks in unrelated sectors of the economy. Buy stocks that interest you. I figure heart rate watches will sell well so I bought some Garmin a year ago. It was 64 and now it’s 83. If it gets to 92 I will sell half.
Thans.
I invested all my money in houses and lots.
Whore houses and lots of whiskey.
> Annnnd it’s 00 green! :) <
LOL. And I do know the feeling. (With minimum bets only.)
LOL.
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