Any stock market players?

[rollingthunder 10+ year member]

I am interested in investing some money. Every semester I get a bonus from work for going to school. Its only 500 bucks and I would like to invest. The only thing is, I have very limited knowledge on investing. Anyone here invest in stocks? Or is there some other, better way to invest money. I am 19, have had a job sometimes 2 constantly since i was 16, I am in the process of building credit with my first credit card which is going well, an I would like to plan ahead and try my hand at invsting money. ANy good reading I should do? Basically jsut help me and tell me how to invest my money so I dont blow it, apparently there are quite a bit of economically savvy people on the board, so help me out! thanks

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[Flipx99 5,000+ posts]

I am interested in investing some money. Every semester I get a bonus from work for going to school. Its only 500 bucks and I would like to invest. The only thing is, I have very limited knowledge on investing. Anyone here invest in stocks? Or is there some other, better way to invest money. I am 19, have had a job sometimes 2 constantly since i was 16, I am in the process of building credit with my first credit card which is going well, an I would like to plan ahead and try my hand at invsting money. ANy good reading I should do? Basically jsut help me and tell me how to invest my money so I dont blow it, apparently there are quite a bit of economically savvy people on the board, so help me out! thanks

favorite Book: One up on Wall Street

I invest in etfs and derivatives (options).

I would suggest you find a sector you enjoy, find an etf that tracks the index and have fun.

Sharebuilder is the cheapest place @ $4 per trade (but you don't get to pick the price)

 

[bumpin buick 5,000+ posts]

buy 2nd and 3rd quarters then watch yourself make money on 4th quarter, home building industries especially.

 

[MyFartsStink 10+ year member]

with 500 you can get a pretty good setup used.

 

[rollingthunder 10+ year member]

Thanks so far, any good online reads? Something to get me started so I can understand all the advice i get, lol. Thanks though, any more out there?

 

[rollingthunder 10+ year member]

And as far as a used setup, Ive got a 18" q on a MTX 81000D, Im only interested in exactly doubling that, which hopefully i will do later down the road with money i make investing money first

 

[Flipx99 5,000+ posts]

buy 2nd and 3rd quarters then watch yourself make money on 4th quarter, home building industries especially.

You think that bump will last?

I am long in LOW...I was hoping for a lag....getting back if pulls back below 22.

 

[Flipx99 5,000+ posts]

To be honest, no one can tell you how to invest as there are 1000s of strategies.

I have multiple strats at once....some companies I go extremely long...maybe 5 years or so (LOW) for instance.

In my Roth IRA, I invest in sectors. I find low cost index mutual funds that follow sector indexes in a contrarian strat. For instance, I am heavily invested in health care and don't expect to make a dime until maybe 2010.

 

[rollingthunder 10+ year member]

So is there an investmest that will for a short term make me money, but in the long haul may not be the best investment? By that I mean I would like to try investing on sort of a "sure bet" and pull out after maybe only a year, maybe in a bigger company just to get my feet wet with investing. Then after I can start to try out different options to see what I like. Besides the web, who do I go to directly to discuss investing my money? Thanks Flip, im glad you know your sh*t cause i sure as hell dont

 

[Flipx99 5,000+ posts]

So is there an investmest that will for a short term make me money, but in the long haul may not be the best investment? By that I mean I would like to try investing on sort of a "sure bet" and pull out after maybe only a year, maybe in a bigger company just to get my feet wet with investing. Then after I can start to try out different options to see what I like. Besides the web, who do I go to directly to discuss investing my money? Thanks Flip, im glad you know your sh*t cause i sure as hell dont

There is no sure bet. Nothing is certain, we just model...

If I were to invest $500 in one company that was a sure bet...well, I would go for a large company that you like. When you shop there, you like the things they are doing.

Next time you go to a store, just watch....watch for things

I am a big fan of Lowe's. Partially because I worked there for 5 years, but from a customer perspective, I really like the things we do.

Say you walk into best buy. Look around, like you were casing the place. Watch the interactions of employees and customers. Are the customers shaking their head in agreement and confidence or are they condfused? Are their employees readily available...do they offer helpful suggestions for the client base. (AND BEFORE YOU CLOWNS START WITH YOUR...SO I WALKED INTO BEST BUY WITH A CHIP ON MY SHOULDER AND HAPPENED TO START QUIZZING A CASHIER COMING OFF BREAK STORES....just STFU now). Are the products nice, neat, and orderly. If you talk to a salesman about models, does he/she find some much easier to move than others...does BBY order sufficient amount of quantity to help the salesmen. Sometimes if you walk around like that the security will detain you wondering what you were doing. Be honest...say I am considering BBY as an investment. I want to be sure the company I own is doing the right things. Perhaps tells them what you think....More than likely they will write you off a crazy person or a potential thief, doesn't bother me either way.

Watch for trends...like your friends with high discretionary incomes. For instance, iPods were super popular with high schoolers months before wall street ever saw one. So try to think of some companies you feel are doing the right things when YOU shop there.

That is how I invest, I find sectors unappreciated because the earnings aren't there because of extensive R & D, they aren't hot, boring or whatever but are doing all the right things.

The only other individual stock I own is iROBOT. (IRBT) They make vaccuum cleaners that work surprisingly well. And I could sell the hell out of them when I worked at Lowe's because as an investor, I took a lot of time to understand their products, how well they worked, etc. They also have a military side of business...and I ask soldiers on the streets if they have been to Iraq and if so, did they use the product and what they thought. Again, many people will think you are a crazy person. But to be a successful investor, you got to be.

My benchmark is a weighted average between the S&P and an Int'l Index. I beat my benchmark by 5% points. Some may do better, others worse. But on a risk-adjusted basis, I do well for my goals.

 

[SteveSkal]

I prefer Small Cap stuff. Sure you can lose more but when you pick a winner you can make boat loads...not like your 10 or 12% at best from Big Board Companies.

 

[duece212 5,000+ posts]

I have absolutely no clue what I'm doing, I just log into my 401k and as of lately watch its value tank. Was up 14% for last year. Already down 11% for the first few weeks of this year.

yay

 

[SteveSkal]

Hang in there. The country is bordeline recession right now. The recent Fed rate cuts will help that bounce back.

 

[Spooby 10+ year member]

Would it be wise to invest in ROTH IRA's and allow the banks to do as they please? I have one set up with Chase and I just put money into it. From my understanding the investment guru's there know what to do with the money so its sorta on autopilot. I've also started putting money into the military TSP plan, but thats on autopilot too. Any suggestions?

 

[Flipx99 5,000+ posts]

Would it be wise to invest in ROTH IRA's and allow the banks to do as they please? I have one set up with Chase and I just put money into it. From my understanding the investment guru's there know what to do with the money so its sorta on autopilot. I've also started putting money into the military TSP plan, but thats on autopilot too. Any suggestions?

I too have TSP (i am on the civy side)...

I have 60% in the lifecycle funds 25% small cap 15% international.