I always wanted to but never did.
has anyone made any sweet moolah from it?
any tips for getting started?
Stock Market
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carl winslow
- Atomsmashasaurus Dex
- Posts: 994
- Joined: 14 Jun 2003 21:54
Stock Market
Any of you modified fat cats invest in the stock market?
I always wanted to but never did.
has anyone made any sweet moolah from it?
any tips for getting started?
I always wanted to but never did.
has anyone made any sweet moolah from it?
any tips for getting started?
Reginald VelJohnson
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BainbridgeShred
- Post Master General
- Posts: 2352
- Joined: 10 Nov 2004 23:22
I've been investing for about 3 years and its worked out quite well so far, luckily i started buying at the beginning of a bull market. The last month hasn't been good though and people buying now might find themselves buying at the start of a bear market.
My best tip is to have a strategy and stick to it, read some books first to find out what suits your personality. i.e. if your a risk taker and kind of impatient then maybe technical analysis is good for you. If your a bit conservative and don't have the nerve to watch your investments drop and rise every day, then maybe a long term value approach is good.
There is lots of ways to be successful at the stockmarket you just got to find a way that you are comfortable with and take advantage of your strengths.
And finally don't ask for hot tips.
My best tip is to have a strategy and stick to it, read some books first to find out what suits your personality. i.e. if your a risk taker and kind of impatient then maybe technical analysis is good for you. If your a bit conservative and don't have the nerve to watch your investments drop and rise every day, then maybe a long term value approach is good.
There is lots of ways to be successful at the stockmarket you just got to find a way that you are comfortable with and take advantage of your strengths.
And finally don't ask for hot tips.
Scott Kirchner
http://www.ausfootbag.org
http://www.ausfootbag.org
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carl winslow
- Atomsmashasaurus Dex
- Posts: 994
- Joined: 14 Jun 2003 21:54
There are different ways to get into the stockmarket.
The most popular method these days is through managed funds, you give your money to someone else to invest and they pay you the returns, less a fee of course. The advantage is you can get exposure to a wide selection of the market with only a small investment (usually starting at $1,000). The down side is the fees are high, usually you pay either an entry or exit fee plus a management fee and other costs are taken off your investment return. They justify the fees by claiming to achieve a better return than the market but not many can actually do it.
To invest in managed funds you fill in an application form and send it away with a cheque or have the money direct debited from your account, they usually also have savings option where they deduct a certain amount from your account each month.
The other option is to invest directly, to do this you need to use a broker. Internet brokers are probably the most popular cause they are much cheaper. Brokerage rates are usually between $20 and $40 per trade upto a certain amount (usually $10,000) and a certain percentage for larger trades, maybe 0.2% to 0.3%, it varies between the different brokers.
If you use a real broker you usually give them instructions over the phone.
Before you can start trading you will have to complete some forms to register with the broker and then it's just a matter of deciding what you want to buy. Usually the funds can be directly debited from your account.
If you don't have much to invest another option is to look at index funds. These will give you approximately the same return as the index they follow, eg S&P 500 in the US. You don't need much to invest, maybe $1,000.
Remember to consider costs when your are comparing returns between investments, say you had $1,000 to invest and brokerage costs $40 per trade, if you achieve a 10% gross return for the year and sold your shares your real net return would only be 1.6%. It would have been better to leave the money in the bank until you had saved a bit more.
Hope that didn't bore you too much.
The most popular method these days is through managed funds, you give your money to someone else to invest and they pay you the returns, less a fee of course. The advantage is you can get exposure to a wide selection of the market with only a small investment (usually starting at $1,000). The down side is the fees are high, usually you pay either an entry or exit fee plus a management fee and other costs are taken off your investment return. They justify the fees by claiming to achieve a better return than the market but not many can actually do it.
To invest in managed funds you fill in an application form and send it away with a cheque or have the money direct debited from your account, they usually also have savings option where they deduct a certain amount from your account each month.
The other option is to invest directly, to do this you need to use a broker. Internet brokers are probably the most popular cause they are much cheaper. Brokerage rates are usually between $20 and $40 per trade upto a certain amount (usually $10,000) and a certain percentage for larger trades, maybe 0.2% to 0.3%, it varies between the different brokers.
If you use a real broker you usually give them instructions over the phone.
Before you can start trading you will have to complete some forms to register with the broker and then it's just a matter of deciding what you want to buy. Usually the funds can be directly debited from your account.
If you don't have much to invest another option is to look at index funds. These will give you approximately the same return as the index they follow, eg S&P 500 in the US. You don't need much to invest, maybe $1,000.
Remember to consider costs when your are comparing returns between investments, say you had $1,000 to invest and brokerage costs $40 per trade, if you achieve a 10% gross return for the year and sold your shares your real net return would only be 1.6%. It would have been better to leave the money in the bank until you had saved a bit more.
Hope that didn't bore you too much.
Scott Kirchner
http://www.ausfootbag.org
http://www.ausfootbag.org
I have a Roth IRA. I pay no attention to it. If I did, I might care about it. I have a good friend who manages the account and if anything changes with the market, he calls me and asks my permission to make changes. If I leave it be and just don't touch, it should make me about $250,000 in 30 years. Not to bad for doing no work with very little money.
Old Skool