how to start out in the stock market?
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how to start out in the stock market?
Hi guys, I'm new here, and I'm here because I love the S! really wanna own one myself but there's just no way I can afford one before I get out of college(I'm 20 right now and going to graduate next year, but I might have to stay in college for another year for my master's degree since the economy is not doing so great, and I think its good for me to get as much education as I can) . I currently own a 95 integra and it's a pretty good car overall, alright enough about my crappy car.
this year's scholarship check has come, and I'm not sure what I wanna do with the money (roughly 2 grand). Well I've always wanted to start some kind of investment plan or something ever since I was in high school, however I always have the impression that I need alot more than 2 grand just to get myself into the big game. seeing that there are a lot of vintage s2k owners and smart people here, I would like to hear some opinions from you guys. how did you start out in the stock market? what must I do to get myself on the boat? I'm not looking for quick money, I just wanna know how to play the game and get started. Can I start with 2000 bucks or should I just keep saving up til I have certain amount of cash? and if I do start trading stocks, I will be looking at it as a part-time job, I'm willing to put in 20-30 hours a week to do the homework or whatever that needs to be done. Also, can someone recommend some reading?
Thanks in advance.
this year's scholarship check has come, and I'm not sure what I wanna do with the money (roughly 2 grand). Well I've always wanted to start some kind of investment plan or something ever since I was in high school, however I always have the impression that I need alot more than 2 grand just to get myself into the big game. seeing that there are a lot of vintage s2k owners and smart people here, I would like to hear some opinions from you guys. how did you start out in the stock market? what must I do to get myself on the boat? I'm not looking for quick money, I just wanna know how to play the game and get started. Can I start with 2000 bucks or should I just keep saving up til I have certain amount of cash? and if I do start trading stocks, I will be looking at it as a part-time job, I'm willing to put in 20-30 hours a week to do the homework or whatever that needs to be done. Also, can someone recommend some reading?
Thanks in advance.
Joined: Apr 2004
Posts: 2,897
Likes: 1
From: Cherry Hill, NJ
I like Robert Kiyosaki's books a lot. See this one: http://www.amazon.com/exec/obidos/ASIN/044...7285139-3363948
Personally, I think day trading and buying & selling individual stocks is a good way to lose your money. Warren Buffet buys and holds most of his stocks, but he does a hell of a lot of research first.
If you really want to invest in stocks, take a look at SPDRs, or spiders. See http://www.armchairmillionaire.com/feature...ders_0416.shtml for an explanation.
Another thing to watch out for is capital gains tax. If you buy a stock and sell at a profit within a year, you are liable for a much higher tax penalty than if you hold the stock for over one year.
Personally, I think day trading and buying & selling individual stocks is a good way to lose your money. Warren Buffet buys and holds most of his stocks, but he does a hell of a lot of research first.
If you really want to invest in stocks, take a look at SPDRs, or spiders. See http://www.armchairmillionaire.com/feature...ders_0416.shtml for an explanation.
Another thing to watch out for is capital gains tax. If you buy a stock and sell at a profit within a year, you are liable for a much higher tax penalty than if you hold the stock for over one year.
Joined: Oct 2003
Posts: 11,949
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From: MAHT-O-MEDI
Well this is just my opinion but........
Day trading WAS the big thing that everyone was making tons of money at because the whole market was on a sustained surge for three straight years. Any dummy can make money when every stock is one the rise and the whole market is moving steadily. We are in a slow upswing right now but no guarentees it wont head south. Day trading, no matter how much research you do is the quickest way to lose your money. I know several friends that rode the wave and made huge paper gains, only to lose the majority of it when the bubble burst. And the market is similar to gambling, invest what you can afford to part with, and risky bets can be sucker bets.
If you want to get into stocks with a small investment, I would buy solid long term buys. But lets be real here, if you outgain everyone and do a 25% return (not likely) for the next couple years you will have made a little over $1k BEFORE taxes. Not that big of a deal.
I would use the money wisely to cover your school needs and minimze debt and worry about stocks when you have some cash to spare. If you want to invest right now, pick long term buys and solid mutual funds and let the money sit for years. At your age pick mutual funds with "growth" as the primary goal.
THE BEST THING YOU CAN DO AT YOUR AGE IS TO SAVE A FEW THOUSAND BUCKS SO YOU CAN BUY, NOT RENT, A PLACE TO LIVE WHEN YOU FINISH COLLEGE. That will put you light years ahead of most of your peers who live in an apartment for 4-7 years after college. I have a friend on the same basic career track as me, he rents, I bought a townhome and now a house. The difference is I have $200,000 in equity in my home through appreciation, and though we make about the same, he can not afford to move into my neighborhood because prices have risen so dramatically. I bought the house for half of its current value and now have a fixed low payment for the remainder of the 20 yr mortgage. If I had to come in cold and buy the house today, I could not afford it either.
Sorry for the long post. Good luck.
Day trading WAS the big thing that everyone was making tons of money at because the whole market was on a sustained surge for three straight years. Any dummy can make money when every stock is one the rise and the whole market is moving steadily. We are in a slow upswing right now but no guarentees it wont head south. Day trading, no matter how much research you do is the quickest way to lose your money. I know several friends that rode the wave and made huge paper gains, only to lose the majority of it when the bubble burst. And the market is similar to gambling, invest what you can afford to part with, and risky bets can be sucker bets.
If you want to get into stocks with a small investment, I would buy solid long term buys. But lets be real here, if you outgain everyone and do a 25% return (not likely) for the next couple years you will have made a little over $1k BEFORE taxes. Not that big of a deal.
I would use the money wisely to cover your school needs and minimze debt and worry about stocks when you have some cash to spare. If you want to invest right now, pick long term buys and solid mutual funds and let the money sit for years. At your age pick mutual funds with "growth" as the primary goal.
THE BEST THING YOU CAN DO AT YOUR AGE IS TO SAVE A FEW THOUSAND BUCKS SO YOU CAN BUY, NOT RENT, A PLACE TO LIVE WHEN YOU FINISH COLLEGE. That will put you light years ahead of most of your peers who live in an apartment for 4-7 years after college. I have a friend on the same basic career track as me, he rents, I bought a townhome and now a house. The difference is I have $200,000 in equity in my home through appreciation, and though we make about the same, he can not afford to move into my neighborhood because prices have risen so dramatically. I bought the house for half of its current value and now have a fixed low payment for the remainder of the 20 yr mortgage. If I had to come in cold and buy the house today, I could not afford it either.
Sorry for the long post. Good luck.
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Joined: Sep 2001
Posts: 565
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From: SF Bay Area
If you want to read Kiyosaki, be sure to read the opposing views:
http://www.johntreed.com/Kiyosaki.html
http://www.johntreed.com/Kiyosaki.html
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