Want to learn about stock market

Discussion in 'General Discussion' started by GavynN.X., Nov 13, 2007.

  1. GavynN.X.

    GavynN.X. I want AM thundercracker

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    Seeing that I'm nearing 27 and still don't have my own apartment/house, I would like to learn to use money to make money. So, can anyone here give me a start on how to trade on the stock market?

    a) Do I need to open an account?

    b) Which trading company/bank would you recommend to open an account at?

    c) How much minimum do I need to deposit into account to begin trading?

    d) What is the minimum dollar amount per trade?

    And so forth...not sure where else to put this so I put it in GD.
     
  2. Wreckgar

    Wreckgar Anthony Stark Veteran

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    I would check out info avaliable on etrade and those other ones on TV. There's one that the Law and Order guy doe scommercials for.

    But if you don't know how to play, I wouldn't recommend doing it to make money. it's a gamble. Think of the stock market as a big casino. You can make money if you have the right cards/stocks but can easily lose if you don't.

    I'd recommend a high interest bearing account like a CD or Money Market.
     
  3. Bryan

    Bryan ΜΟΛΩΝ ΛΑΒΕ

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    The first thing I'd recommend would be:

    Not opening a brokerage account, not trading individual stocks--or trading anything, for that matter, and therefore, not worrying about any kind of minimums.

    If I were you--and I'm 26, although our financial situations could be vastly different--I'd first invest in the 401(k) at my work, making sure to take full advantage of any matching.

    Then, I'd max out an IRA. Whether you go traditional or Roth depends largely on your personal situation, specifically, how much you pay in taxes now and how much you expect to pay when you're withdrawing from the IRA.

    Then, if you still have money, I'd look into a no-load indexed mutual fund.

    I use USAA exclusively, but through them, I invest in Fidelity and Vanguard funds. The former is my mutual fund, the latter holds my IRA. I use the government's equivalent of a 401(k), the TSP, which isn't available to non-government workers, but typically, your employer has a company that provides the 401(k), so it'll be decided for you.

    Trading stocks on your own, at your knowledge level, is about as likely to be profitable as going to a casino and playing roulette. And besides, you're 27. One of your most valuable assets is your youth. You have all the time in the world to invest smart and win big in the long run.

    'Least, that's my suggestion.
     
  4. Soundblaster1

    Soundblaster1 The Heisenberg of Toys

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    Just buy Google. You will thank me later.
     
  5. ABH1979

    ABH1979 Blue Boba Moderator TFW2005 Supporter

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    You should do a lot more research on it, and asking a about it on a toy forum isn't gonna cut it.
     
  6. drippy

    drippy is a freethinker.

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    I think it was yesterday that Etrade's stock dropped 50% amid rumors of bankruptcy.

    Not saying they don't have good general info on the site (I have no idea, I don't use them), just an interesting sidenote.
     
  7. Soundblaster1

    Soundblaster1 The Heisenberg of Toys

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    L&O guy does Ameritrade Financial
    There's also that "Talk to Chuck" one...
    And Scott trade. (or whatever, History channel was f-ed up all day... missed most of the commercial)
     
  8. drippy

    drippy is a freethinker.

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    Oh, and squirrelcar is correct in that your first step should probably be to explore whatever retirement plan option your employer offers. If it's a 401(k), contribute as much as possible. Employer matches are essentially free money from your perspective. Further, the federal government and most states (all?) allow you to waive the early withdrawal penalty for up to $10k out of an IRA for purposes of first time home ownership. So whenever you're ready to buy a home, assuming you have a 401(k), you could roll it over tax free to an IRA and then take out $10k. Keep in mind only the early withdrawal penalty is waived. You're still taxed on the $10k.

    *edit* Not saying that you definitely should roll over a 401(k) into an IRA and take a distribution of $10k. I'm saying it's a possibility. If your situation at the time warrants it, it could be a good way to go. :) 
     
  9. GavynN.X.

    GavynN.X. I want AM thundercracker

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    Yeah, I read that E-trade plummet 50% yesterday and they have 15% chance of declaring bankruptcy, but not sure if they recovered a little today? As for Google, I don't have the reserves to buy maybe even 50 stocks..so...not going there! Maybe I should invest in Baidu.com or Amazon. I read that Amazon's rate of return is not too shabby.

    Thanks for all the advice so far, esp. Squirrelcar! I'm aware that stocks are a gamble but I'm just planning for an alternative to cash, especially since the US Dollar seems to keep falling and falling and inflation moving in the opposite direction.

    Although it seems silly to ask about financial matters on a toy forum, I imagine that there has to be some ppl on here that are financially secure enough to continue their toy-buying habbits =)

    Oh, I work in a local CPA firm and there is NO 401(k).
     
  10. Bryan

    Bryan ΜΟΛΩΝ ΛΑΒΕ

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    If you don't have a401(k), then I would seriously look into an IRA.

    Two main types are a Roth and a traditional. A Roth means you pay taxes on the money you put it now, while you won't pay taxes on withdrawals (after a certain age, which I think is 55). Alternatively, a traditional IRA means you don't pay taxes on your contributions now, but you will when you're older.

    It's slightly more complicated than that, but that's basically what you need to know.

    So now, you need to decide if you're tax exposure is going to be higher now or later. Given that you're only 27, there's a good chance you'll be making more when you're 55 or so, especially if you're working towards a degree or something. If that's the case, a Roth has advantages, in that you'll avoid paying taxes at the higher bracket when you're older.

    A big advantage of IRAs is that you can invest in a mutual fund--again, I'd strongly recommend a no-load indexed mutual fund. So you'll benefit from any gains in the mutual fund, plus you get to avoid paying some money to the government. Which is AWESOME--not just for the money, but for denying the government money.

    Alternatively, you can go to Iraq and not pay any taxes while you're there, but still max out a Roth IRA and benefit from the tax dodge later. Ha, US government!

    I think your concern about the dollar is sensible, but a little premature as far as allowing it to dictate your investment strategy. Besides, despites the dollar's weakness, the stock market continues to gain ground overall. The stock market isn't a bad idea...but actual stocks are, on account of the expense in trading them at the level you'll be operating at, and the inherent risk, just not a good idea.
     
  11. Mike

    Mike Banned

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    Ebay:
    make best friends with old people who have no kids, and inherit their houses when they die. Insta-cash!!


    well.. not THAT insta.. lol

    It's not what you know, It's who ya know
     
  12. KA

    KA PENIS GOES WHERE?!!

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    dudes at my office are playing forex/foreign exchange. they use a program called marketiva and practise a technique called straddling. its pretty good. the newest guy made almost 100% turnover/profit in 4 weeks.
     
  13. ranoobu

    ranoobu I like fried chicken

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    I remember when google was at 300.. and i thought that was it.. then it was at 400 .. oh well :) 

    coulda totally gone the other way around
     
  14. TonyzCustomz

    TonyzCustomz Am I doin it rite? TFW2005 Supporter

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    Ebay:
    Try sharebuilder.com they are very reasonable and for long term IRA's they are great(Have all my stocks and stuff through them), just remember to keep it diversified and look at long term investment not short term. They have all kinds of tutorials and even an investment planner that make a lot of the hard stuff automatic.
     
  15. KA

    KA PENIS GOES WHERE?!!

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    talked to this one dude, a customizer who was very into stocks, in fact, lived on it. quaterly he'd cash out 50 k and chill for the next 3 months.

    that said, he could make a loss of up to 10k, so it was a matter of batting average.

    i was like, dude so you just sit at home and do nuthin, and he was like, yeah brah, and i was like, fuck.
     
  16. Predakwon

    Predakwon ...Green Lantern's light!

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    Ebay:
    I work in an Emerging Markets Hedge Fund (about 2bil in assets now). As someone who's been on the street for his whole career, the best advise is to shop around and research. Unless you live in an extremely affluent neighborhood, remember YOU are the client. They want your business. They should give you the time. If they don't, don't go there.

    This isn't a lazy man's game. Although people do get lucky, statistics show that luck doesn't make out most of the time.

    Look into mutual funds. They are baskets of stocks and you can diversify your risk.
     

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