What's a good way to start investing?

Question

like actually doing it, dont tell me to read a book or research it, I do that already. I'm just a big chicken **** when it comes to investing. Real estate, stocks, mutual funds, indexes, venture caps, REITs, i dunno tell me something useful and I'll give you 10 points, and answer any of your open questions.

great comments.

Unfortunately my company doesnt match 401k. But I already have an index fund USAXX. But the return on it is not high enough for me.

Answer 1

Sounds like you already are "investing" if you are in an index fund.

Hmm, something useful, not opinion? How unusual.

The reason you are uncertain is because you have not developed a Trading Plan, or tested your theories. The worry and stress that rolls our stomachs and gives us chicken s**ts problems is that we've not defined risk, and the uncertainty multiplies. This contrary feeling is in conflict with Rule #1 of "preservation of capital."

Neither have you probably defined your time horizon. It cannot be both short-term and long-term, and the only reason it could switch is when it keeps going for you, and not against you, like right now with the Dow making new all time highs daily.

Take a look at charting and Technical Analysis for following trends in the markets. Why would you own a stock that is in an obvious decline, or a mutual fund that underperforms the idex it follows?

Realize right away there are two sides to the market, not just the upside. Not only can you short the weak ones while you go long the stronger ones, what goes up, eventually comes down at least part way. This is not a business of prediction, but rather knowing what to do if certain price points are reached, say at Support or Resistance levels, or Fibonacci retracement levels, or if a breakout to new highs or lows occurs.

Learn how to analyze risk, and make this your primary approach. We are not in the business of analyzing an unfounded theory of compounding profits and erroneously analyzing how much money you can make. For example, most traders don't make any money at all; more than 80% blow out.

Learn about money management techniques, and maybe you'll stick around awhile.

Try to find these books:
They say "Buy and Hold" for the long term is better, but that depends on when you get in, and what your definition of "long term" is. The phrase "Buy low and sell high" infers that you buy after a decline; but how much of a decline? If you had bought after a 1000 pt decline in the Dow in 2000, you would still be waiting to get back to even, six years later in most stocks.

How to start trading online:

http://www.bernanke.cn/stock-trade/......
http://www.stock-trading.jims-info.com/....
http://money.howstuffworks.com/.........
http://www.investopedia.com/
http://sharebuilder.com/
stockcharts.com

Beginner’s Books on Investing

"Which Is Better, Buy-and-Hold or Market Timing?"

"Do You Have What It Takes to Be a Market Timer

The Beginner's Bible in Technical Analysis is:
Edwards & McGee"Tech. Anal. Of Stock Trends"

Droke, ClifTechnical Analysis Simplified

Kahn, Michael N.Tech. Anal. Plain & Simple

Kamich, Bruce M.How Technical Analysis Works

Lefevre, EdwinReminiscences of a Stock Operator

Lofton, ToddGetting Started in Futures

Lowenstein, RogerBuffet (Warren)-The Making of a Capitalist

O'Neil, William J.How to Make Money in Stocks

Oz, TonyHow to Make Money From Wall Street


Develop a plan, then test your plan on a free simulator at Investopedia.com and when you start making "virtual" money, then you can risk your own.

http://simulator.investopedia.com/home.a...
http://investopedia.com
http://investing.sitesled.com/
http://futures.tradingcharts.com/learnin...

Blogs
http://winners-and-losers.com/

Training & classes
http://bettertrades.com
http://investedcentral.com

ETF news and analysis
http://ETF-World.Org/

Article: Trading is Timing
http://www.investopedia.com/articles/tra...

Stock Charts
Bigcharts.com
http://www.stockTA.com
http://www.stockcharts.com
http://www.incrediblecharts.co...
www.prophet.net
americanbulls.com

Answer 2

Yo Bro... no brainer, seriously. I've worked in banking and have been investing for years. Everything from stocks, bonds, real estate, and mutual funds. The key is getting started and then not worrying to much about it. Depending on how much you have, here are some immediate "to -do's"

Do you work and does your company have a 401k? Does it match? If so, SIGN UP NOW and start putting a % of income into a retirement account. If you don't do that, you're not getting money the company is willing to give you for Free. Let's say someone makes $30,000 and the company will match 100% of anything they put in up to 3%. If you simply start by putting in 3%, you will invest $900 per year and your company will GIVE you $900 per year so you'll invest a total of $1,800 per year. That's an immediate 100% return on your investment!!!

If you are living in a area with stable real estate prices and don't own a house, then buy one. The tax advantage, the home appreciation etc are an important second part.

After that, it's mutual funds. If you have enough to start (you need $3,000) them go to http://www.vanguard.com and open up a mutual fund account. Start with one investment: Vanguard Life Strategy Growth Fund. This kind of fund is intended to allow you to invest and not worry about diversity. It's the perfect "one fund". It invests in a broad range of products that keep you from being overly committed in one area. It has good track record of between 8 - 12% over the last 10 years.

If you don't have that much, try Wells Fargo Advantage Funds. They require a minimum of $1,000 to get started and have a similar fund; Wells Fargo Advantage Lifestyle Portfolio - Moderate.

I would not suggest going beyond mutual funds until you have built a decent portfolio in the 6 figure range.

I hope this is what you were looking for and that it was helpful.

Take Care,

TBG

Answer 3

The first thing to decide is how much time you want to spend learning about where you are putting your money. If don't want to spend any time, then an index fund that follows the S&P 500 is the best bet - Vanguard Mutual funds is a good place to start.

If you want to invest in individual stocks - then you should figure out what products or services that you really love, and then make that the first stock you invest in. Learn everything you can about it. Yahoo finance is a good site.

If you want to see what other successful traders are investing in, both stocks and mutual funds, then I would suggest http://www.top10traders.com - this is a free site that lets you see what the best stock market traders are investing in. You can also create your own portfolio with $100,000 in "play" money and see how your own stock picks perform against other people. You can also read post from other traders about their views on the stock market. Good Luck.

Answer 4

You have to get your feet wet so to speak. A good mutual fund is a way to begin. The chance of getting completely cleaned out is very minimal, almost non existant. Some have an excellent long term record. Here are a couple of suggestions. Check them out. Pennx and GAM. Both have excellent long term records. It you feel a little more venturesome, TDF. Better yet buy some of each. That will give you a better chance of making some money. Each has a different investment objective.

Answer 5

Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies https://tr.im/e3f14

Answer 6

well the first thing you need to do is determine the risk you are able to take on because that will determine what you will invest in

example futures or venture caps are very risky compared to gov bonds

then u need to determine how much return u wanna make and your risk will be proportionate to your return

then open a account at a broker and start buying companies that meet your personal characteristics

Answer 7

Try looking at http://investing.hammocksurvivalguide.com/
It's got lots of good articles about investing. Perhaps it will give you a few ideas.