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CatsLoveHouseMusic
SpeakerFreaker



Registered: 11/03/18
Posts: 1,085
Last seen: 1 year, 7 months
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First attempt at some sort of investing
#26879435 - 08/14/20 12:33 AM (3 years, 6 months ago) |
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So to be honest, I’ve only casually browsed reddit sub forums for a bit now and don’t have the knowledge to even semi confidently invest in anything. My question is, where does one go to even learn about this type of thing? I’m capable of putting in the effort, and taking some potential risks but don’t know where most start.
I’m not looking for specific answers, just a casual conversation. I have some spare money and want to do something with it. I was reading about penny stocks and such.
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Brian Jones
Club 27



Registered: 12/18/12
Posts: 12,361
Loc: attending Snake Church
Last seen: 37 minutes, 20 seconds
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Don't do penny stocks! Just don't.
The best long term investment for most people is index funds, because it's proven that most people including experts, can't do better than the entire market, when expenses are taken into account. Some experts will always do better, but which ones can't be predicted.
I have most of my 401K in S&P 500 index, but I don't think indexing is the best thing right now with corona because you're buying so many stocks that I don't like now like the airlines. Most stocks that are beaten down by corona will come back someday, but nobody know when. Which is why indexing is good for the long term. You don't have to make decisions and you will do better than most.
Right now, I'm putting IRA money into Fidelity Select Technology. It doesn't hold a real lot of stocks and it's dominated by the ones at the very top of Nasdaq index: Microsoft, Amazon, Apple, Alphabet, Netflix, Facebook.
If you buy an individual stock you will see much more volatility. You can buy fractional shares of stocks because some stocks cost thousands of dollars to buy a single share.
I work at Amazon and I'm buying Amazon stock even though it's already very expensive, because they continue to build warehouses in my area, so I figure there's more growth.
You have to decide what your time horizon is. There are major tax advantages to retirement accounts, and you can still take the money out without penalty for a first house purchase.
If you think you will need the money in the next couple years, don't put it in stocks because you might lose a sizable portion. Wall Street has been flourishing while Main Street has been suffering, but that can't go on indefinitely. If you need the money sooner, you're only going to get a half percent in interest in a savings account but that's better than somebody stealing it from under your mattress.
-------------------- "The Rolling Stones will break up over Brian Jones' dead body" John Lennon I don't want no commies in my car. No Christians either. The worst thing about corruption is that it works so well,
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ManianFH
living in perverty



Registered: 07/06/04
Posts: 14,790
Last seen: 16 hours, 31 minutes
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Re: First attempt at some sort of investing [Re: Brian Jones]
#26879828 - 08/14/20 09:44 AM (3 years, 5 months ago) |
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you can buy fractional shares? i did not know this.
Yah OP stay away from pennies. Youre probably pretty young so 30 pls years maxing out a roth IRA into well known indexes/blue chip hand picked dividend stocks will probably be your recipe for success
-------------------- notapillow said: "you are going about this endeavor all wrong. clear your mind of useless fear and concern. buy the ticket, take the ride, and all that.... " ChrisWho said: "It's all about the journey, not the destination."
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Brian Jones
Club 27



Registered: 12/18/12
Posts: 12,361
Loc: attending Snake Church
Last seen: 37 minutes, 20 seconds
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Re: First attempt at some sort of investing [Re: ManianFH]
#26881213 - 08/15/20 08:26 AM (3 years, 5 months ago) |
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Yeah, there are several companies doing it. I'm trying to find a company that does it for retirement accounts, but no luck yet.
Schwab charges $5, but yesterday I bought $400 of Amazon for 99 cents through Stockpile. I work for Amazon and I was getting direct stock purchases taken from my paycheck, but you had to do the same amount every check.
-------------------- "The Rolling Stones will break up over Brian Jones' dead body" John Lennon I don't want no commies in my car. No Christians either. The worst thing about corruption is that it works so well,
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Le0n
Stranger
Registered: 08/17/20
Posts: 10
Last seen: 3 years, 5 months
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Quote:
CatsLoveHouseMusic said: So to be honest, I’ve only casually browsed reddit sub forums for a bit now and don’t have the knowledge to even semi confidently invest in anything. My question is, where does one go to even learn about this type of thing? I’m capable of putting in the effort, and taking some potential risks but don’t know where most start.
I’m not looking for specific answers, just a casual conversation. I have some spare money and want to do something with it. I was reading about penny stocks and such.
Honestly, Shkreli's investing course, not even joking. He has managed hundreds of millions of dollars. He's also very realistic and gives very wise advice, (like that most people shouldn't be actively trading stocks).
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