Stock investing? | Bitcointalksearch.org

coinft

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Quote from: DeathAndTaxes on January 19, 2012, 10:05:40 PM

With $300 invest in a index tracking mutual fund. Preferably one with an incredibly low fee. Many mutual funds will let you open an account for a small amount if you setup regular investments ($50 per month). I would use the $300 to start a Roth IRA unless you like paying the taxman more than you already do.

Then paper trade a portfolio of 10 stocks. You can track your hypothetical portfolio, learn something, and still be invested. In a couple years when you have say $5K start looking into individual stocks.

If you try to buy stocks w/ $300 the only winner will be the brokerage.

+1

notme

legendary

Activity: 1904

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Quote from: Goomboo on January 20, 2012, 07:37:29 PM

Quote from: notme on January 20, 2012, 07:19:33 PM

I do trade stocks with around $300. Yes, it's risky, yes I pay 10% to move in and out. But, if I lose it all, it will be worth the lessons I've learned and will learn. I've only been doing it for about 6 months, so 3/4 stocks are still paying off the buy-in commission, but I've learned a lot. And when you pay 10% to make a move, you have to think about your move before you make it. I anticipate this experience will be very helpful when I have real money to move around.

Yeah experience now is definitely great. Honestly, unless you are passionate about investing AND can beat the market, then I'd go with the managed approach (not mutual funds). I'm a big fan of currensee.com and I have money being traded by some of their traders.

Hmm, your commission is massive. Some brokers I've looked into in the past:

SogoTrade - $3 / trade

http://www.sogotrade.com/s1/Default.aspx

MB Trading - $4.95 / trade OR share option

http://www.mbtrading.com/commissions.aspx?page=Stocks

Commission is $4-10... I try to trade enough at a time to keep it below 10%. My entire stock portfolio is only around $500.

CurrenSee looks interesting, but I don't have the $1000 minimum it seems to take. Perhaps in a few months I'll be ready to diversify my bitcoin profits again.

Goomboo

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Activity: 409

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Quote from: notme on January 20, 2012, 07:19:33 PM

I do trade stocks with around $300. Yes, it's risky, yes I pay 10% to move in and out. But, if I lose it all, it will be worth the lessons I've learned and will learn. I've only been doing it for about 6 months, so 3/4 stocks are still paying off the buy-in commission, but I've learned a lot. And when you pay 10% to make a move, you have to think about your move before you make it. I anticipate this experience will be very helpful when I have real money to move around.

Yeah experience now is definitely great. Honestly, unless you are passionate about investing AND can beat the market, then I'd go with the managed approach (not mutual funds). I'm a big fan of currensee.com and I have money being traded by some of their traders.

Hmm, your commission is massive. Some brokers I've looked into in the past:

SogoTrade - $3 / trade

http://www.sogotrade.com/s1/Default.aspx

MB Trading - $4.95 / trade OR share option

http://www.mbtrading.com/commissions.aspx?page=Stocks

notme

legendary

Activity: 1904

Merit: 1002

Quote from: Goomboo on January 20, 2012, 04:04:49 PM

Hi!

I've been investing and trading in stocks since 2006 and there's a few things I have to tell you!

1. Don't ask for advice on forums - you will never truly own the idea and if you make money you will call yourself smart but if you lose money you will blame others. Big no no!

2. Don't risk money until you have a plan!!! TOO much money is lost by people who just don't think things through.

Here's my suggestion to you. Rather than buying stocks on someone's suggestion, let me give YOU a suggestion:

Spend your money to buy these books. Learn, take responsibility, and own up to your investing decisions. I think Rule One Investing is the best book ever written on investing while the Little Book that Beats the Market I have never read, but I've heard it is really good too. I did Rule One Investing and beat the market when I used it.

Rule One Investing:
http://www.amazon.com/Rule-Strategy-Successful-Investing-Minutes/dp/0307336840/ref=sr_1_1?ie=UTF8&qid=1327093362&sr=8-1

Little Book that Beats the Market:
http://www.amazon.com/Little-Still-Market-Books-Profits/dp/0470624159/ref=sr_1_1?s=books&ie=UTF8&qid=1327093407&sr=1-1

+1

I do trade stocks with around $300. Yes, it's risky, yes I pay 10% to move in and out. But, if I lose it all, it will be worth the lessons I've learned and will learn. I've only been doing it for about 6 months, so 3/4 stocks are still paying off the buy-in commission, but I've learned a lot. And when you pay 10% to make a move, you have to think about your move before you make it. I anticipate this experience will be very helpful when I have real money to move around.

Goomboo

sr. member

Activity: 409

Merit: 250

Hi!

I've been investing and trading in stocks since 2006 and there's a few things I have to tell you!

1. Don't ask for advice on forums - you will never truly own the idea and if you make money you will call yourself smart but if you lose money you will blame others. Big no no!

2. Don't risk money until you have a plan!!! TOO much money is lost by people who just don't think things through.

Here's my suggestion to you. Rather than buying stocks on someone's suggestion, let me give YOU a suggestion:

Spend your money to buy these books. Learn, take responsibility, and own up to your investing decisions. I think Rule One Investing is the best book ever written on investing while the Little Book that Beats the Market I have never read, but I've heard it is really good too. I did Rule One Investing and beat the market when I used it.

Rule One Investing:
http://www.amazon.com/Rule-Strategy-Successful-Investing-Minutes/dp/0307336840/ref=sr_1_1?ie=UTF8&qid=1327093362&sr=8-1

Little Book that Beats the Market:
http://www.amazon.com/Little-Still-Market-Books-Profits/dp/0470624159/ref=sr_1_1?s=books&ie=UTF8&qid=1327093407&sr=1-1

notme

legendary

Activity: 1904

Merit: 1002

Quote from: Einbit on January 19, 2012, 10:17:27 PM

Quote from: notme on January 19, 2012, 09:59:47 PM

Also Roth IRA is great, but keep in mind if you go that way you won't be able to touch it until you hit retirement age. That will likely be higher when you get there than it is now. Physical gold is a good option too.

That's a popular misconception about Roth IRAs.

Roth IRAs are like retirement accounts minus some of the inconveniences like having to wait for retirement.

Yes, you can withdraw your initial $300 *any time*, with no tax or penalty.

The only thing you can't withdraw is the $10 ( Cheesy

) you will make on your $300. And, Uncle Sam added exceptions to that as well - for first-time homebuyers, hardships, you name it.

Tax code - loads and loads of complexity, it every little bit and piece.

Thanks for the info. Good to know.

Seal

donator

Activity: 848

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Quote from: vbscarred on January 19, 2012, 04:32:52 AM

While I'm certainly no expert, I can give you the basics. First off, you would need to diversify your investments. Investing $300 in one company is risky, although the amount of money isn't a lot. Try to find 4-5 companies you would like to make a medium term investment in, and spread your investments over these companies. Then I would start saving money monthly and placing them evenly into these stocks. That way you get the habit of saving money, at the same time as you spread your risk and gain the money from stock prices going up. If one of the stocks goes down, hopefully it will be covered by the rising value of the rest of your portfolio.

In terms of diversification, its a sound, well proven investment philosophy. One which you should teach yourself early on.

Whatever you choose, invest a small portion of your money in bitcoins Wink

Einbit

newbie

Activity: 5

Merit: 0

Quote from: notme on January 19, 2012, 09:59:47 PM

Also Roth IRA is great, but keep in mind if you go that way you won't be able to touch it until you hit retirement age. That will likely be higher when you get there than it is now. Physical gold is a good option too.

That's a popular misconception about Roth IRAs.

Roth IRAs are like retirement accounts minus some of the inconveniences like having to wait for retirement.

Yes, you can withdraw your initial $300 *any time*, with no tax or penalty.

The only thing you can't withdraw is the $10 ( Cheesy

) you will make on your $300. And, Uncle Sam added exceptions to that as well - for first-time homebuyers, hardships, you name it.

Tax code - loads and loads of complexity, it every little bit and piece.

DeathAndTaxes

donator

Activity: 1218

Merit: 1079

Gerald Davis

With $300 invest in a index tracking mutual fund. Preferably one with an incredibly low fee. Many mutual funds will let you open an account for a small amount if you setup regular investments ($50 per month). I would use the $300 to start a Roth IRA unless you like paying the taxman more than you already do.

Then paper trade a portfolio of 10 stocks. You can track your hypothetical portfolio, learn something, and still be invested. In a couple years when you have say $5K start looking into individual stocks.

If you try to buy stocks w/ $300 the only winner will be the brokerage.

notme

legendary

Activity: 1904

Merit: 1002

Diversification is fantastic, but it's really hard to make a return on such small amounts unless you keep each order big enough. Even with just 3 stocks, you're paying up to 10% fees. Also Roth IRA is great, but keep in mind if you go that way you won't be able to touch it until you hit retirement age. That will likely be higher when you get there than it is now. Physical gold is a good option too.

Einbit

newbie

Activity: 5

Merit: 0

Quote from: vbscarred on January 19, 2012, 04:32:52 AM

While I'm certainly no expert, I can give you the basics. First off, you would need to diversify your investments. Investing $300 in one company is risky, although the amount of money isn't a lot. Try to find 4-5 companies you would like to make a medium term investment in, and spread your investments over these companies. Then I would start saving money monthly and placing them evenly into these stocks. That way you get the habit of saving money, at the same time as you spread your risk and gain the money from stock prices going up. If one of the stocks goes down, hopefully it will be covered by the rising value of the rest of your portfolio.

This.

Also, needless to say, make sure that the bulk of your investment goes to stocks that have the best tax-advantage for you. Certain instruments end up causing double taxation.

On the other hand, in the US, you could open up a Roth IRA and then invest in an index fund within the Roth IRA, and get the maximum tax-advantage that way.

Make sure to choose a no-load index fund. Thus, if your broker is fidelty, the index fund that will typically have no added fees will be one run by fidelty themselves.

- einbit.

vbscarred

member

Activity: 238

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While I'm certainly no expert, I can give you the basics. First off, you would need to diversify your investments. Investing $300 in one company is risky, although the amount of money isn't a lot. Try to find 4-5 companies you would like to make a medium term investment in, and spread your investments over these companies. Then I would start saving money monthly and placing them evenly into these stocks. That way you get the habit of saving money, at the same time as you spread your risk and gain the money from stock prices going up. If one of the stocks goes down, hopefully it will be covered by the rising value of the rest of your portfolio.

gurg2.o

newbie

Activity: 42

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Hello, I know this is very novice question but could anyone give me some advice regarding stock investing. I have about $300 (I know not a lot, only 16 currently) I would like to attempt buying some stocks. I noticed that AA Alcoa inc has a very low peg ratio on Yahoo Finance, and would be a good stable investment? Thanks for any help. Also is $300 to little to begin investing and trying to gain profit off the market? Thank you,

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