AYO: One of you money-minded ? gimme a crash course on investing
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American.Loo
Members Posts: 4,082 ✭✭✭
I got a little bit of money that i'd like to invest, what is the best way to go?
if its stocks, kick a lil knowledge and share what you know/where you put your scrilla
much appreciated.
also whats a good starting amount to drop in
if its stocks, kick a lil knowledge and share what you know/where you put your scrilla
much appreciated.
also whats a good starting amount to drop in
Comments
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Here's what I learned, B. If you wanna invest and make money, there's no such thing as a 'crash course'. I'm not really into the ? like that, but when I WAS interested and did my research, I quickly discovered that it's something that you want to have a solid, detailed foundation of knowledge about before you throw any cash in.
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get that stocks for dummies book, ? like 1,450 pages but its pure knowledge
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Ok. The 1st thing you need to decide is how you want to build your portfolio. If you're single with no kids and you like to take risks, for possible big returns, invest in small cap stocks. If you're trying to make money grow, invest in large-cap, to mid-cap stocks.
Also trading and investing are two different things. Investing is with the intention of hanging on for years, where trading can range from a day (day trading) to a few weeks. (Swing trading.)
I'm going to assume you're starting out. You should start out with Mutual Funds and/or EFT's (Exchange Traded Funds). Also understand that if you're not familiar with the game, you'll be paying a financial adviser for instruction and doing your trades which can affect your return. If you have an understanding of the game and want to trade/invest infrequently, you can holla at a discount broker. (i.e. Charles Schwab) You'll be doing you're research, as you should be regardless, but the rates will be lower.
There is also Commodities, bonds, options, futures, and currency trading. Avoid derivatives.
As a matter of fact, as Pico mentioned. get the for dummies books. You can find them on the net in PDF for free. Look for:
Stock Investing For Dummies
Mutual Funds For Dummies
Trading For Dummies
Day Trading For Dummies
EFT's for dummies -
Man go to a brokerage firm and put that ? in small investment. Some ? thats low risk and not very aggressive. And put that ? into a 401K/IRA let them match what you putting in and double that ? my dude, get it when you retire, or if you need to pull it early you'll have to give them a lil cut but still you'll have more than when you put in. Simple stuff thats not very risky and it'll help you become more financially savvy.
I'm speaking strictly thru experience. -
Rule number 1: Never invest more than your prepared to lose
Budget on the assumption that you'll lose everything that you put up
And basically the bigger the risk the bigger the reward potential. Depending on whether investing for the long term or the short term decides what you should put your money into. If you're thinking long term I'd look towards stocks that pay dividends with the highest yield. This basically means they'll pay you a certain amount of money for every share of stock you own. Over time this adds up to a pretty hefty sum. High yields means high dividends proportionate to the price per share.
If you're looking more towards the short term look for a stock that that is low now but has a positive outlook. A company that is on the verge of a new product line or something like that might increase their profit, or maybe a company that's in the process of increasing its market share in general. Buy low, sell high.
Since the market is in such a hole now it is a great time to get started because you have an opportunity to buy stocks at their lowest price and sell them when the market picks up. Some great spots to research and get some articles are msnbc.com and finance.yahoo.com -
Rule number 1: Never invest more than your prepared to lose
Budget on the assumption that you'll lose everything that you put up
And basically the bigger the risk the bigger the reward potential. Depending on whether investing for the long term or the short term decides what you should put your money into. If you're thinking long term I'd look towards stocks that pay dividends with the highest yield. This basically means they'll pay you a certain amount of money for every share of stock you own. Over time this adds up to a pretty hefty sum. High yields means high dividends proportionate to the price per share.
If you're looking more towards the short term look for a stock that that is low now but has a positive outlook. A company that is on the verge of a new product line or something like that might increase their profit, or maybe a company that's in the process of increasing its market share in general. Buy low, sell high.
Since the market is in such a hole now it is a great time to get started because you have an opportunity to buy stocks at their lowest price and sell them when the market picks up. Some great spots to research and get some articles are msnbc.com and finance.yahoo.com
You on it my dude. Props. This could be a good thread. -
black caesar wrote: »You on it my dude. Props. This could be a good thread.
It really can..I'm just getting into this stuff myself so I got alot to learn as well -
Mayne I lost 2 g's fuckng around with these Tea Baggers and this debt ceiling ? . I wanna pull my ? . Roll Tide!!!
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Depends on how much we're talking, and what you want to do. Timing is key for a lot of it, but you've gotten some pretty good advice in here so far. We chose investments in land, started our business, and a few moves with stocks. We got started years ago though - you may be in a great position with everything that's going on right now to get your portfolio started.
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man this thread is on point. taking notes. i just need to gather the money together. i already know which stocks i wanna invest in. especially since the prices are low now.
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get some ? ...flood the block
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http://www.sharebuilder.com/
cuts out the middle in investing. And you have total control.
but like a couple folks said....best hook up with someone who has a lil more knowledge 1st.
eitherway, it's paying to to play. -
Thank you guys for the advice.
Is $500 a decent amount to begin with. -
Well you pretty much covered everything I would've said. I made an investment for dummies thread a while back, the book can give you a lot of great info.
Thanks for that luv. -
http://www.sharebuilder.com/
cuts out the middle in investing. And you have total control.
but like a couple folks said....best hook up with someone who has a lil more knowledge 1st.
eitherway, it's paying to to play.
^^^ Definitely. The first thing you wanna do before you actually start investing is get you a Sharebuilder/ ING direct account. They have a great feature which kinda goes with what I was saying earlier about dividends where basically they take the dividends you earn on the stocks in your portfolio and automatically put it towards buying more stock, which in turn gets you more dividends. Over time it can really have your IRA looking right. And you can link your Sharebuilder account to any checking account you have which will allow you to deposit money easy if you have online banking.American.Loo wrote: »Thank you guys for the advice.
Is $500 a decent amount to begin with.
Yea $500 is more than enough to get started. -
black caesar wrote: »Ok. The 1st thing you need to decide is how you want to build your portfolio. If you're single with no kids and you like to take risks, for possible big returns, invest in small cap stocks. If you're trying to make money grow, invest in large-cap, to mid-cap stocks.
Also trading and investing are two different things. Investing is with the intention of hanging on for years, where trading can range from a day (day trading) to a few weeks. (Swing trading.)
I'm going to assume you're starting out. You should start out with Mutual Funds and/or EFT's (Exchange Traded Funds). Also understand that if you're not familiar with the game, you'll be paying a financial adviser for instruction and doing your trades which can affect your return. If you have an understanding of the game and want to trade/invest infrequently, you can holla at a discount broker. (i.e. Charles Schwab) You'll be doing you're research, as you should be regardless, but the rates will be lower.
There is also Commodities, bonds, options, futures, and currency trading. Avoid derivatives.
As a matter of fact, as Pico mentioned. get the for dummies books. You can find them on the net in PDF for free. Look for:
Stock Investing For Dummies
Mutual Funds For Dummies
Trading For Dummies
Day Trading For Dummies
EFT's for dummies
Aye can you elaborate on these a little bit? EFTs are something I always hear about but never really looked at. And with mutual funds, about how much on average do you put in to get started with one? -
American.Loo wrote: »Thank you guys for the advice.
Is $500 a decent amount to begin with.
No. I wouldn't recommend stocks without at least $10g's. You can do without it, but again, I wouldn't. Start with Mutual Funds and EFT's. You can get down starting with $1000. Hell some places will let you invest in Mutual Funds for $50 a month! Here's a list of the best Mutual Fund places:
1. The Vanguard Group
2. Fidelity Investments
3. Dodge & ?
4. Oakmark
5.T. Rowe Price
6. TIAA-CREF
7. Artison
8. Harbor
9. Master's Select
10. USAA (Yes the auto insurance company)
Best Discount Brokers
1. Charles Schwab
PLACES TO AVOID
1. ANY BANK (Learned this the hard way in the 90's)
2. Brokers that work on commission. (Brokers are sells people.)
3. So called financial planners
Also when you're looking at Mutual funds, be sure to review the prospectus to determine if the mutual fund is a loaded funds. AVOID loaded funds at all costs. Loaded funds are a sneaky way for some advisors and brokers to get paid more. This is explained in the Mutual Funds for dummies book. It affects your bottom line. Also look at the annual income sheet and statement of additional information. -
Aye can you elaborate on these a little bit? EFTs are something I always hear about but never really looked at. And with mutual funds, about how much on average do you put in to get started with one?
Exchange Traded Funds:
http://www.investopedia.com/terms/e/etf.asp#axzz1Us4Ua2p8
Basically in a nut shell, it's a basket that trades like stocks. With Mutual funds, you have to wait a day before you can make moves, but you can trade, short, etc ASAP with EFT's.
A mutual fund is a professionally managed type of collective investment that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities. -
If you are risk-averse, you won't make any money. If you can't sit on stocks, even in bad times, you won't make any money. If you can't predict trends, you won't make any money. If you're truly coming to Allhiphop for financial advice.....
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When your just starting out don't do anything too complicated. Do something without much risk. Of course without risk their wont be much gain but it will help you understand when to sell or not to sell. Invest in mcdonalds or exxon. This will always give yo ua small gain but will teach you how to work the stock system.
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How much you talkin bruh...
$100-$1000?
$1000-$5000?
$5000-$10000? -
http://www.sharebuilder.com/
cuts out the middle in investing. And you have total control.
but like a couple folks said....best hook up with someone who has a lil more knowledge 1st.
eitherway, it's paying to to play.
you have to be careful with sharebuilder....if you have moeny going directly into the account make sure you are aware that ever time you buy a stock its like $4.99 -
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black caesar wrote: »He had said $500
oh aight...that aint ? . -
i wouldnt even touch the stock market right now until things get settled down with congress...especially since you are just starting. Throw that cash in a CD untill you are truly ready to invest.
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