So does anyone play the Stock Market?, Ive been reading and learning about it and Im think I might invest one day.
The Stock Market
- Thread starter Wolfmesser
- Start date
Pirate
Retired Administrator, PEGym Hero
I will get started in it once I graduate with my Bachelors in Business and start understanding it more. Hopefully I will have a better understanding as time goes by. Wouldn't mind taking a class on it to be honest with you.
My aunt whom I haven't talked to or seen in 4-6 years plays it, quite successfully in Montreal.
My aunt whom I haven't talked to or seen in 4-6 years plays it, quite successfully in Montreal.
I have followed the stock market for over fifty years. The one thing I learned is don't play in the market until you know it backwards and forwards. Once you know enough, don't "play" with money you can't afford to loose. A good starting point is watching CNBC's Mad Money with Jim Cramer. He provides a lot of information on where to find stock market information. His investment advice; however, should not be followed until you know what you are doing.
Until you have absorbed enough information to invest in individual stocks, limit your investments to highly rated mutual funds. Mutual funds are run by professional investors who can diversify, based on extensive research, (not play) your limited funds among many large corporations, which you can not do on your own. Cramer, as well as other advisers, can guide you to sources to learn about mutual funds. Remember, until you are a "professional", the stock market is for long term investing only, unless you you can afford to lose the investment.
Until you have absorbed enough information to invest in individual stocks, limit your investments to highly rated mutual funds. Mutual funds are run by professional investors who can diversify, based on extensive research, (not play) your limited funds among many large corporations, which you can not do on your own. Cramer, as well as other advisers, can guide you to sources to learn about mutual funds. Remember, until you are a "professional", the stock market is for long term investing only, unless you you can afford to lose the investment.
So in other words, learn what I am getting into in all directions, research and absorb as much as possible on the subject, start small, then when Im ready to do so move on to something bigger?
And you can also learn how to invest into stocks and sit on them as they increase in value while you learn all the ins and outs.
I only did mutual funds during my working careers. Also did company pension contributions, way, way, way long ago. Then company savings plans, ira's.
I self retired at 49.
Now I pay an investment management team to figure out what to do, and do it on my behalf.
My point. You can do things thru being diversified in a variety of mutual funds. I have two IRA's in mutual funds, one is conservative mix, the other is growth & income mix. I keep a 3rd portfolio of mutual funds, non IRA, that is a mixture orientated more towards aggressive growth, income & opportunities.
You need to keep diversification as part of your investing strategy.
Along the years I also dabbled in small quantities of stocks, to see how that would yield. so - so results.
I self retired at 49.
Now I pay an investment management team to figure out what to do, and do it on my behalf.
My point. You can do things thru being diversified in a variety of mutual funds. I have two IRA's in mutual funds, one is conservative mix, the other is growth & income mix. I keep a 3rd portfolio of mutual funds, non IRA, that is a mixture orientated more towards aggressive growth, income & opportunities.
You need to keep diversification as part of your investing strategy.
Along the years I also dabbled in small quantities of stocks, to see how that would yield. so - so results.
Thanks Dangler. You made some great points. IRA's should be used to the maximum allowable tax advantage limit. Better yet, matching 401k's should always be used up to the maximum matching amount before making any other investment. Where else can you double pre tax money in one year. Speaking of mutual funds and diversification, I once had an account at Merrill Lynch that traded only in mutual fund shares for a flat annual fee.
When I retired, about three years ago, about 80% of my retirement funds were in stocks and mutual funds. Since I am now living on my retirement funds and no longer feel comfortable figuring out what to do (can't afford any downturns now),I moved about 70% of my retirement funds into variable annuities including index fund options and guaranteed income growth.
When I retired, about three years ago, about 80% of my retirement funds were in stocks and mutual funds. Since I am now living on my retirement funds and no longer feel comfortable figuring out what to do (can't afford any downturns now),I moved about 70% of my retirement funds into variable annuities including index fund options and guaranteed income growth.
I shall defiantly absorb as much as I can on the subject. Thanks guys. I actually found this site that lets you "Practice" with stocks, setting up a mock portfolio, buying selling, watching the stocks etc. Just wanted to know when you guys kept track of the stock market, what exactly did you look at before making a sound investment? Like, did you look at trends, what ppl were likely to find popular, when it might be popular?
The practice site sounds like fun. But, remember the old saying: "How do you get to Carnage Hall.... practice, practice. practice" You may be successful on the practice site, but in real life there are many factors that influence stock prices that probably are not incorporated into the practice site. Most importantly, you can't practice unexpected influences - Economic disaster in Greece, 911, Enron, etc. In the beginning, mutual funds are best. If you can't resist, research and find companies with long earnings/cash flow history and regular dividend increases. As I mentioned earlier, Jim Cramer regularly outlines good trends to look for.
I am not sure of the exact name, but there is a firm, TheMoneyPaper Inc., that lets you buy one share of stock in companies that offer dividend reinvestment programs. Once you are a shareholder (1 share qualifies) you register into the dividend reinvestment program so that the dividend automatically purchases an additional fractional share. More importantly, once enrolled, you can purchase additional shares by mail at no or substantially reduced commissions direct from the company. Google Dividend Reinvestment and you will find plenty of info. Also try stock1.com. Good luck
Way back then when I had an Active Scottrade account, you could set up a practice account, but & sell securities, charts and all kinds of other goodies, in real time. No cost involved. You might look into it.
