Given all the stock threads...

Alone

Diamond Member
Nov 19, 2006
7,490
0
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I don't make a lot of money, but I don't have any current need for it, either.

Say I've got $1000 sitting around, doing absolutely nothing, where should I invest it? I think I'd like to try out some short-term investements, but know nothing about stocks so I don't wanna just give my money out.

So...what I'm asking...

As a completely newbie to trading, where do I start?
 

Jadow

Diamond Member
Feb 12, 2003
5,962
2
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Originally posted by: Alone
I don't make a lot of money, but I don't have any current need for it, either.

Say I've got $1000 sitting around, doing absolutely nothing, where should I invest it? I think I'd like to try out some short-term investements, but know nothing about stocks so I don't wanna just give my money out.

So...what I'm asking...

As a completely newbie to trading, where do I start?

simplest way to start, go to www.troweprice.com and start a mutual fund account with their S&P 500 Index Fund. You can put in as little as $50/mo. No Need to put the $1000 in at once, put the $1000 into a high yield savings account like HSBC and invest over time at T. Rowe Price
 

iversonyin

Diamond Member
Aug 12, 2004
3,303
0
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Buy some books on amazon if you want to learn...its not a bad investment. Subscribe to financial journals and papers alike. And throw the rest in high yield saving account while you read and learn about the market.
 

Alone

Diamond Member
Nov 19, 2006
7,490
0
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You both seem to be saying the same thing. Good!

Alright, so I went to troweprice, and I tried to get as far as possible on my own, and this is where I ended up:
Please select the T. Rowe Price Fund(s) you'd like to invest in from the list below and it will be added to the "Selected Funds" table.
I don't see anything in the list about S&P 500 Index, but I see an "Equity 500 Index".

Before I do something stupid: is this where I should be?
 

Slew Foot

Lifer
Sep 22, 2005
12,379
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Dont invest in stocks now unless you know what youre doing. This coming from the guys who's making a killing this year.
 

Alone

Diamond Member
Nov 19, 2006
7,490
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Originally posted by: iversonyin
Buy some books on amazon if you want to learn...its not a bad investment. Subscribe to financial journals and papers alike. And throw the rest in high yield saving account while you read and learn about the market.

Any specific book recommendations?
 

her209

No Lifer
Oct 11, 2000
56,336
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First, you have to define what your goals are. And don't even say "Make a lot of money."
 

tfinch2

Lifer
Feb 3, 2004
22,114
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I think half of ATOT will agree with me, put it all on black.

The other will recommend red.

Either way, you'll get rich quick. ;)
 

Alone

Diamond Member
Nov 19, 2006
7,490
0
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Originally posted by: her209
First, you have to define what your goals are. And don't even say "Make a lot of money."

I'm not looking to make a lot of money. Basically what I want to do is learn how this stuff all works. I'd like to be able to know what I'm doing when I'm investing, see what's happening with my money, and know what it all means. If I don't make a bunch money, no big deal.
 

Jadow

Diamond Member
Feb 12, 2003
5,962
2
0
Originally posted by: Alone
You both seem to be saying the same thing. Good!

Alright, so I went to troweprice, and I tried to get as far as possible on my own, and this is where I ended up:
Please select the T. Rowe Price Fund(s) you'd like to invest in from the list below and it will be added to the "Selected Funds" table.
I don't see anything in the list about S&P 500 Index, but I see an "Equity 500 Index".

Before I do something stupid: is this where I should be?

Equity 500 Index is the one at T.Rowe Price.
 

Jadow

Diamond Member
Feb 12, 2003
5,962
2
0
Originally posted by: Alone
Originally posted by: her209
First, you have to define what your goals are. And don't even say "Make a lot of money."

I'm not looking to make a lot of money. Basically what I want to do is learn how this stuff all works. I'd like to be able to know what I'm doing when I'm investing, see what's happening with my money, and know what it all means. If I don't make a bunch money, no big deal.

I think mutual funds are a great entry point for a new investor. You can do well and invest in funds for years before getting an itch to buy stocks in single companies.
 

Alone

Diamond Member
Nov 19, 2006
7,490
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0
Suppose I should mention that I'm not American. Didn't consider that critical detail. :(
 

Jadow

Diamond Member
Feb 12, 2003
5,962
2
0
Originally posted by: Alone
Suppose I should mention that I'm not American. Didn't consider that critical detail. :(

You f'in Al-Queda Terrorist. GO HOME. haha j/k

I see you're from the Netherlands. I don't know what the investment options are there, but I suggest you try to find some kind of tax shelter!
 

Alone

Diamond Member
Nov 19, 2006
7,490
0
0
Originally posted by: Jadow
Originally posted by: Alone
Suppose I should mention that I'm not American. Didn't consider that critical detail. :(

You f'in Al-Queda Terrorist. GO HOME. haha j/k

I see you're from the Netherlands. I don't know what the investment options are there, but I suggest you try to find some kind of tax shelter!

Not in the Netherlands anymore.

Canada, yay!
 

Jadow

Diamond Member
Feb 12, 2003
5,962
2
0
Originally posted by: Alone
Originally posted by: Jadow
Originally posted by: Alone
Suppose I should mention that I'm not American. Didn't consider that critical detail. :(

You f'in Al-Queda Terrorist. GO HOME. haha j/k

I see you're from the Netherlands. I don't know what the investment options are there, but I suggest you try to find some kind of tax shelter!

Not in the Netherlands anymore.

Canada, yay!

Good Walleye Fishing there. Manitoba specifically.

 

darkxshade

Lifer
Mar 31, 2001
13,749
6
81
Originally posted by: Alone
Originally posted by: her209
First, you have to define what your goals are. And don't even say "Make a lot of money."

I'm not looking to make a lot of money. Basically what I want to do is learn how this stuff all works. I'd like to be able to know what I'm doing when I'm investing, see what's happening with my money, and know what it all means. If I don't make a bunch money, no big deal.


You won't learn a thing stashing 1k into a mutual fund that was recommended to you. Do you even know what the S&P 500 is? If you really want to learn about stock market, there are tons of free resources where you can educate yourself on these things, investopedia.com is a good place to start. And if you find that it's too dull to you then perhaps sign up for one of those fantasy stock accounts, set an amount and play along. Pay close attention to how the market reacts to anything and everything, follow its ups and downs, observe and learn. Then soon enough you'll be ready to get your feet wet for real.

Meanwhile, it's ok to to put your money into an index fund or a high yield savings account, etc but don't expect to learn anything just leaving it there.
 

Alone

Diamond Member
Nov 19, 2006
7,490
0
0
Oh I definitely plan on learning, but getting into investments would be nice to do while I'm at it. :)
 

Jadow

Diamond Member
Feb 12, 2003
5,962
2
0
If you want to LEARN, watch CNBC. Watch Squack Box in the morning, and Kramer in the evening. Don't invest any money, just soak it up like a sponge. Especially Kramer when he does one of his lectures.

People pay tens of thousands to learn what Kramer teaches on cable TV.
 

Mallow

Diamond Member
Jul 25, 2001
6,108
1
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yeah, if such a small sum, stick with no-load (ie. no fee) mutual funds. Take your pick.
 

Alone

Diamond Member
Nov 19, 2006
7,490
0
0
Okay, so far I've got investopedia.com, Squack Box (CNBC) and possibly some books from Amazon. I'll start hording information then.

In the meantime, any recommendations for mutual funds, like the T Rowe website, but for Canadians?
 

darkxshade

Lifer
Mar 31, 2001
13,749
6
81
Originally posted by: Jadow
If you want to LEARN, watch CNBC. Watch Squack Box in the morning, and Kramer in the evening. Don't invest any money, just soak it up like a sponge. Especially Kramer when he does one of his lectures.

People pay tens of thousands to learn what Kramer teaches on cable TV.

Kramer knows his Sh** but imo he's not someone you really want to take stock advice from. He's entertaining but most real stock advisors spend their lifetime following a segment and even then they haven't even scratched the surface. Kramer meanwhile sounds like he knows everything but he doesn't, and if you actually take his advice, you could lose a lot of money.
 

AtlantaBob

Golden Member
Jun 16, 2004
1,034
0
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This is a repost from another thread that I posted to this week, but the info is good:

http://www.morningstar.com is a fairly good place to go for some conservative financial advice (no, they won't tell you to put money in CD's, but they won't tell you to expect 1000% return weekly, either.) Also, the Intelligent Investor by Benjamin Graham is a good read--and particularly appropriate after this week's downturn in stocks. (There's a fairly good recent edition at Amazon.com that has some updated notes at the end of each chapter). Oh, Peter Lynch and Warren Buffet are good reads too (Buffet's shareholder letters at the Berkshire Hathaway website are really good).

That being said, you should be able to invest in American equities (stocks) even if you're in Canada. Of course, you could invest in Canadian issues as well, but (depending on taxes and any other issues) it might be easier to stick with US issues at the moment.

Either way, welcome to saving money, rather than just spending it!
 
Sep 29, 2004
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Originally posted by: Slew Foot
Dont invest in stocks now unless you know what youre doing. This coming from the guys who's making a killing this year.

Or muual funds ... if you don' know how to pick a stock, how do you know how to pick a fund manager?
 
Sep 29, 2004
18,656
67
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Originally posted by: Alone
Originally posted by: her209
First, you have to define what your goals are. And don't even say "Make a lot of money."

I'm not looking to make a lot of money. Basically what I want to do is learn how this stuff all works. I'd like to be able to know what I'm doing when I'm investing, see what's happening with my money, and know what it all means. If I don't make a bunch money, no big deal.

When you go buy your first stock, by a solid dividend paying stock. The dividends will get you in the right state of mind ... that you own part of a company and as such ... the dividends reinforce the idea since it's akin to a salary.

I think few would argue with the idea that JNJ would be a god palce to start.