I'm looking to get started in the stock market...

Zeeky Boogy Doog

Platinum Member
Mar 31, 2004
2,295
1
0
So, I'm 19 and I'm looking to get started in the stock market. I'm looking first for where you all here at atot do your trading, and second where I can find information about stocks, where to do my research etc. I'm kind of hoping for a good forum perhaps and really just general trustworthy information about both stocks and the stock market itself. I'm already watching Cramer's Mad Money, my roommate got started already and watches it when it's on, and I usually do too, but I am hoping to find more, books and the internet both. I'm looking at probably 1000-2000 for my initial deposit into the account, if it matters. If any more information is needed please let me know! Thanks in advance!
 

senseamp

Lifer
Feb 5, 2006
35,783
6,187
126
Read "Intelligent Investor" by Benjamin Graham and stop watching Cramer.
Unless you have a Roth IRA already, I would use those 1-2K to start one.
 

Zeeky Boogy Doog

Platinum Member
Mar 31, 2004
2,295
1
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Originally posted by: senseamp
Read "Intelligent Investor" by Benjamin Graham and stop watching Cramer.
Unless you have a Roth IRA already, I would use those 1-2K to start one.

I'll see if I can't find the book, hopefully my school's library will have that one. Why stop watching Cramer? Just not a fan or has his advice not been as good as I've been hearing or...? Also, I'm guessing for the IRA I'd need to talk to my bank, correct?
 

Reel

Diamond Member
Jul 14, 2001
4,484
0
76
Originally posted by: Zeeky Boogy Doog
Originally posted by: senseamp
Read "Intelligent Investor" by Benjamin Graham and stop watching Cramer.
Unless you have a Roth IRA already, I would use those 1-2K to start one.

I'll see if I can't find the book, hopefully my school's library will have that one. Why stop watching Cramer? Just not a fan or has his advice not been as good as I've been hearing or...? Also, I'm guessing for the IRA I'd need to talk to my bank, correct?

http://www.cramerwatch.org/
 

senseamp

Lifer
Feb 5, 2006
35,783
6,187
126
Originally posted by: Zeeky Boogy Doog
Originally posted by: senseamp
Read "Intelligent Investor" by Benjamin Graham and stop watching Cramer.
Unless you have a Roth IRA already, I would use those 1-2K to start one.

I'll see if I can't find the book, hopefully my school's library will have that one. Why stop watching Cramer? Just not a fan or has his advice not been as good as I've been hearing or...? Also, I'm guessing for the IRA I'd need to talk to my bank, correct?

My IRA is with Vanguard. They have pretty low fees and they run a lot of the big funds. You can also open one with Scottrade along side your regular investment account.
Cramer is OK for entertainment and not much more. If you are taking your stock tips from Cramer, you should get a mutual fund instead. I think if you read "Intelligent Investor," it will help you develop an investing framework so you don't need to listen to TV heads at all, you can do your own research.
 

wedi42

Platinum Member
Jun 9, 2001
2,843
0
76
you need to learn to pick stocks on your own.
never trade a stock based on tips from others.

one way to trade is based on technical analysis (google it)
you also need to learn to manage risk, don't put too much money in one stock or industry

before you invest real money in the market, educate yourself with some books.
while your reading you can practice with play money.
thinkorswim.com has some great software you can download and trade with 'paper money'
you do need to provide some personal information, but it's great software and free.
 

Zeeky Boogy Doog

Platinum Member
Mar 31, 2004
2,295
1
0
Originally posted by: senseamp
Originally posted by: Zeeky Boogy Doog
Originally posted by: senseamp
Read "Intelligent Investor" by Benjamin Graham and stop watching Cramer.
Unless you have a Roth IRA already, I would use those 1-2K to start one.

I'll see if I can't find the book, hopefully my school's library will have that one. Why stop watching Cramer? Just not a fan or has his advice not been as good as I've been hearing or...? Also, I'm guessing for the IRA I'd need to talk to my bank, correct?

My IRA is with Vanguard. They have pretty low fees and they run a lot of the big funds. You can also open one with Scottrade along side your regular investment account.
Cramer is OK for entertainment and not much more. If you are taking your stock tips from Cramer, you should get a mutual fund instead. I think if you read "Intelligent Investor," it will help you develop an investing framework so you don't need to listen to TV heads at all, you can do your own research.

That's where I'm hoping to be, doing my own research and all so I can blame me for my failure or my success, gives me motivation to actually do something about it, lol. I'm definitely going to check out the library after class tomorrow for the book though, I'll also be opening an account soon, hopefully this week, I just want to get all my info together before I get started and do something retarded because I didn't think long enough.
 

Zeeky Boogy Doog

Platinum Member
Mar 31, 2004
2,295
1
0
Originally posted by: johngute
you need to learn to pick stocks on your own.
never trade a stock based on tips from others.

one way to trade is based on technical analysis (google it)
you also need to learn to manage risk, don't put too much money in one stock or industry

before you invest real money in the market, educate yourself with some books.
while your reading you can practice with play money.
thinkorswim.com has some great software you can download and trade with 'paper money'
you do need to provide some personal information, but it's great software and free.

Thanks for the tip, I'll be checking that site out later today.
 

DaveSimmons

Elite Member
Aug 12, 2001
40,730
670
126
There are 2 ways to invest in the stock market:

1. read books, spend hours and hours on research of individual companies, and many more hours watching the market to time your trades, then more hours on your taxes if you're using a non tax-sheltered account.

2. buy mutual funds, sit back, spend your time doing something else.

Method 1 has much more risk but potentially much higher returns. The gambling aspect is also fun for many people, and lets them brag about the big winners while forgetting to mention the big losers.

Method 2 is as safe as stock investing gets if you stick with stock index mutual funds but you trade lower risk for lower gains. Over decades an S&P 500 mutual fund has returned 10-12% a year but a wild gamble on FooCorp could make you 20% (or lose 20%) in one week.

I prefer stock index mutual funds, to buy and hold for years, but that's partly because I'd rather spend my time on other things than watching the market.
 

DaveSimmons

Elite Member
Aug 12, 2001
40,730
670
126
Originally posted by: MustISO
Read up on ETF's. They've been doing good for me.
Right, Exchange Traded Funds are essentially mutual funds that are sold like stocks. If you stcik with stock index ETFs (like S&P 500 "spiders") they are a good alternative to mutual funds.
 

imported_Lothar

Diamond Member
Aug 10, 2006
4,559
1
0
Originally posted by: Zeeky Boogy Doog
So, I'm 19 and I'm looking to get started in the stock market. I'm looking first for where you all here at atot do your trading, and second where I can find information about stocks, where to do my research etc. I'm kind of hoping for a good forum perhaps and really just general trustworthy information about both stocks and the stock market itself. I'm already watching Cramer's Mad Money, my roommate got started already and watches it when it's on, and I usually do too, but I am hoping to find more, books and the internet both. I'm looking at probably 1000-2000 for my initial deposit into the account, if it matters. If any more information is needed please let me know! Thanks in advance!

Rule #1 of investing...Stop watching Jim Cramer.
Rule #2...Read "Intelligent Investor". Costs less than $20 on amazon. Read other books recomended by others here.
Rule #3...Play a virtual game first. Join our game here...
http://forums.anandtech.com/me...id=38&threadid=2011914
Rule #4...Go with Index funds unless you REALLY have time to manage your entire portfolio.
 

imported_Lothar

Diamond Member
Aug 10, 2006
4,559
1
0
Originally posted by: johngute
you need to learn to pick stocks on your own.
never trade a stock based on tips from others.

one way to trade is based on technical analysis (google it)
you also need to learn to manage risk, don't put too much money in one stock or industry

before you invest real money in the market, educate yourself with some books.
while your reading you can practice with play money.
thinkorswim.com has some great software you can download and trade with 'paper money'
you do need to provide some personal information, but it's great software and free.

I'm not really a fan of technical analysis, but I agree with everything else you said in general.
 

NanoStuff

Banned
Mar 23, 2006
2,981
1
0
Originally posted by: johngute
you need to learn to pick stocks on your own.
Bad advice. No wait, scratch that, terrible advice.

If you need to be told to learn how to pick stock, you shouldn't even consider picking stock.
You should invest in funds and not individual stocks, that's your #1 golden rule.
 

sandorski

No Lifer
Oct 10, 1999
70,085
5,618
126
If the OP has $2k(ish), he could do bboh an investment like a Mutual Fund and Invest directly like he wants.

Put $1k into a Fund with a reasonable Buy in(or whatever it's called) of approx $50. Then try your best to put the $50(or whatever) into it Monthly. You are of a young enough age that doing such can reap a nice reward by the time you reach retirement. Whatever you do, don't Cash out unless the Fund totally sucks. IOW, that nice Car, that House, that sure Stock, etc should be funded by $$ you've Saved, Earned at work, or whatever, but not from this Fund.

With the remaining $1k(ish), play around on the Stock Market. If you blow it all, only add $$ from sources other than your Fund! If you make tons of $$, consider socking some of it away in your Fund.

No matter what you do, make sure you have a Job and are not trying to make this a Career. Unless, of course, you prove to be very good at it, but don't think you are really good if you have a few months of great success.
 

alrocky

Golden Member
Jan 22, 2001
1,771
0
0
Originally posted by: Zeeky Boogy Doog
Originally posted by: senseamp
Read "Intelligent Investor" by Benjamin Graham and stop watching Cramer. Unless you have a Roth IRA already, I would use those 1-2K to start one.
I'll see if I can't find the book, hopefully my school's library will have that one.

Also, I'm guessing for the IRA I'd need to talk to my bank, correct?
Intelligent Investor with Jason Zweig commentary You might want to read this one with Jason Zweig's commentary.

IRA: Low cost (expense ratio) no load index mutual fund, which you'll unlikely find at your bank.



 

ponyo

Lifer
Feb 14, 2002
19,689
2,811
126
Reading Peter Lynch inspired and got me started on stocks at the age of 18. I bought my first stock the summer I graduated high school after reading this book. I started out with $1500.
 

Special K

Diamond Member
Jun 18, 2000
7,098
0
76
How should one go about choosing between an index fund that just tracks a market index like the S&P500 and an actively managed mutual fund?
 

LegendKiller

Lifer
Mar 5, 2001
18,256
68
86
Originally posted by: richardycc
buy PFE at ~$24, sell at ~$28, rinse and repeat.

Brilliant idea. Stick all of your eggs in once basket, go against all investment advice ever known to man, all because you want to prance around your "great idea".

Also, Crammer is a moron, ignore everything he says.