5k to invest into stocks, help me get started
#1
styling on you
Thread Starter
Join Date: Jun 2003
Location: Los Angeles, California
Age: 35
Posts: 5,274
Likes: 0
Received 2 Likes
on
1 Post
5k to invest into stocks, help me get started
Hey again
So i'm trying to get a head start on all the other people my age, and get a head start in life. I have ~5000 saved up, that I'm willing to invest to invest for the long run... meaning 1 year.
So basically, how do I start buying shares, and how do dividends work?
If I have financial aid, will playing stocks screw me over? This 5k I have saved up is from working, and not from financial aid btw.
The 3 stocks I want to invest in is 1. AMD, 2 nVidia, 3. TOMTOM
so yeah... help me get started!
So i'm trying to get a head start on all the other people my age, and get a head start in life. I have ~5000 saved up, that I'm willing to invest to invest for the long run... meaning 1 year.
So basically, how do I start buying shares, and how do dividends work?
If I have financial aid, will playing stocks screw me over? This 5k I have saved up is from working, and not from financial aid btw.
The 3 stocks I want to invest in is 1. AMD, 2 nVidia, 3. TOMTOM
so yeah... help me get started!
#2
Drifting
Join Date: Jul 2007
Location: Stockton, California
Age: 33
Posts: 3,301
Likes: 0
Received 22 Likes
on
11 Posts
I vote that now is not the right time to invest, the market seems to be shit. I don't really follow it too much, but my stocks in Frontier Airlines just keep getting more and more worthless.
#5
If I were you I would just toss it in HSBCDirect right now, and in a year you'll make a guaranteed (if they don't adjust the rates) 4.25% on your $. Which is about $18/month
OR
To throw a wildcard at you, you can check out Prosper.com and fund a loan and recieve about 10% returns on your 5k.
OR
Buy some random stocks, but ehh I dunno.
OR
To throw a wildcard at you, you can check out Prosper.com and fund a loan and recieve about 10% returns on your 5k.
OR
Buy some random stocks, but ehh I dunno.
#6
Team Owner
Not making any trades until after next week feds meeting at the earliest. No way to tell right now if the bottom is in until we see the market reaction to that.
#7
My advice would be to speak with a professional (perhaps at the bank) and get advice on how to best invest your money, and not to base it on what people on a car forum say to do with $5,000.
Trending Topics
#8
CD is your safest route, though rates suck right now. 6 months ago would have been a great time...so wait on this one.
Try Etrade. That's what I did. But if you're not into the market and understanding of economics and how things work monetarily, I wouldn't do it. You'd basically be gambling, and in which case you're better off telling a friend who's 21 to take your $ to the casino and putting it all on red.
You want a cheap stock...VYST. Great product, but low sales. Check em' out. I'm playing that they will get bought out.
Try Etrade. That's what I did. But if you're not into the market and understanding of economics and how things work monetarily, I wouldn't do it. You'd basically be gambling, and in which case you're better off telling a friend who's 21 to take your $ to the casino and putting it all on red.
You want a cheap stock...VYST. Great product, but low sales. Check em' out. I'm playing that they will get bought out.
#9
BTW, you may want to consider investing this money and basically forgetting about it for a while instead of putting it away for only one year (and then spending it?). Invest, re-invest, and keep it going. That money will be SO much more useful to you in 5 or 10 years, when you're finished school, looking to buy, or have bought a home, perhaps have a wife or family. That money will come in so handy! Spending it on 'material' things over the next few years might feel satisfying for the short term, but consider how amazing it would be to have $5,000+ at a time when it'll help you get your life started.
I put money away a long time ago and just kept re-investing it. It was a great gift to myself when I finally decided to use it after buying a house. It was like 'finding money you forgot you had'. I'm glad it wasn't wasted on retarded things when I was younger cuz it really came in handy and was put towards much more important things than anything I could've thought of when I was young.
I put money away a long time ago and just kept re-investing it. It was a great gift to myself when I finally decided to use it after buying a house. It was like 'finding money you forgot you had'. I'm glad it wasn't wasted on retarded things when I was younger cuz it really came in handy and was put towards much more important things than anything I could've thought of when I was young.
#10
Don't worry about what the market is doing today or tomorrow, look at the long term (several years) and you will see the trend is up.
Put it in a good no-load growth mutual fund, reinvest the dividends and forget about it. Some years down the road you will have a tidy nest egg. I like T. Rowe Price and Janus but there are many to pick from.
Put it in a good no-load growth mutual fund, reinvest the dividends and forget about it. Some years down the road you will have a tidy nest egg. I like T. Rowe Price and Janus but there are many to pick from.
#11
Bent = #1
Am I the only one who read that his long term commitment is 1 year? To me 1 year is not a long term.
I'd just throw that money into a high yield savings account. You have a lot to win/lose in 1 year if you put the money in a stock(s).
I'd just throw that money into a high yield savings account. You have a lot to win/lose in 1 year if you put the money in a stock(s).
#12
Registered but harmless
Join Date: Aug 2005
Location: Los Angeles, CA
Age: 59
Posts: 14,857
Received 1,149 Likes
on
775 Posts
Originally Posted by hornyleprechaun
Am I the only one who read that his long term commitment is 1 year? To me 1 year is not a long term.
HSBC, Emigrant Direct, any bank that gives you 4.25%+ on a CD or savings account > stocks.
Buying stocks = brokerage and transaction fees (per stock, it's $20-50 depending on brokerage) plus risk of loss of principal, unlike CDs and savings accounts. Also, the transaction fees on buying a couple of stocks for $5K would require a higher return to equal the interest from a CD or savings bank account.
#13
Bent = #1
IMO if you don't want to touch the money, find a good 1 year CD to put the money in. That way you won't be able to touch/use the money without penalty, and you will be locked in at a decent rate.
#14
styling on you
Thread Starter
Join Date: Jun 2003
Location: Los Angeles, California
Age: 35
Posts: 5,274
Likes: 0
Received 2 Likes
on
1 Post
Fair enough. But I'd still like to know how to get started in stocks, like what the good trading companies like etrade or scottstrade or something like that.
As for CDs... what % is considered a good deal?
ING is at like 3.65% which isn't that great right?
As for CDs... what % is considered a good deal?
ING is at like 3.65% which isn't that great right?
#18
Senior Moderator
iTrader: (2)
Join Date: May 2000
Location: where the weather suits my clothes
Age: 55
Posts: 27,921
Received 1,080 Likes
on
661 Posts
Originally Posted by SeCsTaC
So i'm trying to get a head start on all the other people my age, and get a head start in life. I have ~5000 saved up, that I'm willing to invest to invest for the long run... meaning 1 year.
Dude, 1 year is your definition of long run?
WITHOUT A DOUBT DO NOT INVEST IN THE MARKET!!!!!!!!!!!!!!!!
With the way the market is fluctuating, you'd be better off sticking it under your mattress.
Stick it in an ING or HSBC account or buy a CD and be done with it.
No one bothered to ask you what it was for?
How much liquid $$$ you have in savings?
If this is the only cash you have, DO NOT INVEST.
#19
if you have high risk tolerance you can start scaling into the market in a week or two and be fully prepared to average down as the market slowly starts to bottom. if you do jump into the market i would pick a basket of 5 or 6 stocks and diversify yourself along strong industries, especially 'recession proof' names just in case things get worse. also, you'd want to consider adding SDS or DOG which are etf's that short the indexes. those can hedge your portfolio to downside risk (they go up when the market goes down. and, in SDS' case, it gives you twice the inverse performance of the s&p)
if you can't stomach the risk and absolutely need the money in a year then do some CDs especially now to lock in rates before fed possibly takes further rate cut action
if you're still wanting to look into stocks don't look at their price to assume they're "expensive" as you did earlier. Look at GOOG for instance.. its over 500 a share and you think its "expensive" just because it costs a lot per share. well, guess what, it's really not expensive on a valuation basis at all (pending their earnings coming up). and, that stock can fluctuate $50 a day on any given day. You need to be looking at price to earnings multiple to determine whether a stock is "expensive". Don't look at share price.
based on your thinking you are looking at AMD for an investment just because you can buy a lot of shares and you think you're gaining leverage.... you need to lose that mindset right away. AMD is priced that low for a reason, they are getting spanked by intel on margins and overall management performance.
if it were my money and i had a 1 year timeframe i'd go with: MA (pick up after their earnings) to play the transition from cash to plastic, they have no credit risk like american express, FCX for precious metals and mining, not to mention they're a buyout candidate for sure for a rio tinto or a bhp billiton, RIG for deepwater drilling oil exposure, or VLO here for the next 4 months as refining margins seasonally kick off, POT or MOS for agriculture/fertilizer exposure because those companies have pricing power and i firmly believe that soft commodities will be the new oil as strong demand continues and weak supply continues for food/crops. MO or JNJ for recession proof names, MRK for pharma exposure and then i'd easily give 25% of your portfolio exposure to SDS as your hedge
also key thing to remember is do not buy all your shares at once... ever. average in and take advantage of the downward trending market we are in. buy 20% of your position in 1 stock now, 20% more in a few weeks, 20% more in a month. that way, you can average down with the market for your long names all while your hedge of SDS is offsetting the losses. and, if for some reason the market decides to go higher outta nowhere, then you've already got some of your money in the positions and you're already making money
oh and yea i agree with not taking financial advice from a car forum haha next 3-6 months for the market will be rough and tricky, and that's half your timeframe so keep that in mind.
if you can't stomach the risk and absolutely need the money in a year then do some CDs especially now to lock in rates before fed possibly takes further rate cut action
if you're still wanting to look into stocks don't look at their price to assume they're "expensive" as you did earlier. Look at GOOG for instance.. its over 500 a share and you think its "expensive" just because it costs a lot per share. well, guess what, it's really not expensive on a valuation basis at all (pending their earnings coming up). and, that stock can fluctuate $50 a day on any given day. You need to be looking at price to earnings multiple to determine whether a stock is "expensive". Don't look at share price.
based on your thinking you are looking at AMD for an investment just because you can buy a lot of shares and you think you're gaining leverage.... you need to lose that mindset right away. AMD is priced that low for a reason, they are getting spanked by intel on margins and overall management performance.
if it were my money and i had a 1 year timeframe i'd go with: MA (pick up after their earnings) to play the transition from cash to plastic, they have no credit risk like american express, FCX for precious metals and mining, not to mention they're a buyout candidate for sure for a rio tinto or a bhp billiton, RIG for deepwater drilling oil exposure, or VLO here for the next 4 months as refining margins seasonally kick off, POT or MOS for agriculture/fertilizer exposure because those companies have pricing power and i firmly believe that soft commodities will be the new oil as strong demand continues and weak supply continues for food/crops. MO or JNJ for recession proof names, MRK for pharma exposure and then i'd easily give 25% of your portfolio exposure to SDS as your hedge
also key thing to remember is do not buy all your shares at once... ever. average in and take advantage of the downward trending market we are in. buy 20% of your position in 1 stock now, 20% more in a few weeks, 20% more in a month. that way, you can average down with the market for your long names all while your hedge of SDS is offsetting the losses. and, if for some reason the market decides to go higher outta nowhere, then you've already got some of your money in the positions and you're already making money
oh and yea i agree with not taking financial advice from a car forum haha next 3-6 months for the market will be rough and tricky, and that's half your timeframe so keep that in mind.
#22
styling on you
Thread Starter
Join Date: Jun 2003
Location: Los Angeles, California
Age: 35
Posts: 5,274
Likes: 0
Received 2 Likes
on
1 Post
I don't need the money after 1 year, I'm just saying that 1 year is a lot of time for a company to turn around and such but I guess not.
The 5K that I have is not all of my money, it's what I'm willing to invest/risk.
AMD sparks my interest because it's in the gutter right now IMO and I believe they WILL come back. I don't think people will let Intel have a monopoly on the computer chip market.
nVidia because they're about to release their new line of Video Cards in the upcoming weeks/months.
But I think for the time being I need to get my money into a CD ASAP because its just sitting in the bank doing nothing.
I think I'll put it in Bank of Americas 4month CD @ 4.1% interest.
The 5K that I have is not all of my money, it's what I'm willing to invest/risk.
AMD sparks my interest because it's in the gutter right now IMO and I believe they WILL come back. I don't think people will let Intel have a monopoly on the computer chip market.
nVidia because they're about to release their new line of Video Cards in the upcoming weeks/months.
But I think for the time being I need to get my money into a CD ASAP because its just sitting in the bank doing nothing.
I think I'll put it in Bank of Americas 4month CD @ 4.1% interest.
#23
UTX, CRH, DIS have been real winners for me since 9/21/01. But for a long term "1 year term" try Emigrant, E-Trade, ING online savings. Stocks are great for the long haul and 1 yr isn't long.
#24
Originally Posted by Street Spirit
BTW, you may want to consider investing this money and basically forgetting about it for a while instead of putting it away for only one year (and then spending it?). Invest, re-invest, and keep it going. That money will be SO much more useful to you in 5 or 10 years, when you're finished school, looking to buy, or have bought a home, perhaps have a wife or family. That money will come in so handy! Spending it on 'material' things over the next few years might feel satisfying for the short term, but consider how amazing it would be to have $5,000+ at a time when it'll help you get your life started.
I put money away a long time ago and just kept re-investing it. It was a great gift to myself when I finally decided to use it after buying a house. It was like 'finding money you forgot you had'. I'm glad it wasn't wasted on retarded things when I was younger cuz it really came in handy and was put towards much more important things than anything I could've thought of when I was young.
I put money away a long time ago and just kept re-investing it. It was a great gift to myself when I finally decided to use it after buying a house. It was like 'finding money you forgot you had'. I'm glad it wasn't wasted on retarded things when I was younger cuz it really came in handy and was put towards much more important things than anything I could've thought of when I was young.
#25
Team Owner
iTrader: (1)
Join Date: Sep 2002
Location: Fontana, California
Age: 47
Posts: 30,991
Received 582 Likes
on
346 Posts
Originally Posted by r0dxx
To throw a wildcard at you, you can check out Prosper.com and fund a loan and recieve about 10% returns on your 5k.
#26
Originally Posted by r0dxx
Can you go into detail?
#27
Since Etrade is nearly impossible to valuate given their current position (Selling their mortgage backed security at 30 cents a dollar, market volatility, etc) don't even touch this stock unless you plan to keep it short term and can take the loss. This is a gamble stock that's being traded at a bulk volume of 100,000 per trade.
I bought their stocks earlier in Jan for a little less than $3 dollars and sold it this past thursday at $4.75. The gain was nice, but I don't plan to touch this stock until I see their 1Q/2Q08 earnings.
I bought their stocks earlier in Jan for a little less than $3 dollars and sold it this past thursday at $4.75. The gain was nice, but I don't plan to touch this stock until I see their 1Q/2Q08 earnings.
#28
Originally Posted by iamhomin
Since Etrade is nearly impossible to valuate given their current position (Selling their mortgage backed security at 30 cents a dollar, market volatility, etc) don't even touch this stock unless you plan to keep it short term and can take the loss. This is a gamble stock that's being traded at a bulk volume of 100,000 per trade.
I bought their stocks earlier in Jan for a little less than $3 dollars and sold it this past thursday at $4.75. The gain was nice, but I don't plan to touch this stock until I see their 1Q/2Q08 earnings.
I bought their stocks earlier in Jan for a little less than $3 dollars and sold it this past thursday at $4.75. The gain was nice, but I don't plan to touch this stock until I see their 1Q/2Q08 earnings.
#29
Hmm, that's optimism. How can you say they will turn things around in two years? They lost about 25% of their account holders, sold significant part of their portfolio, and gave Citadel a lot of equity when they accepted the cash infusion. I'm just brushing the surface here..
Plus if their stocks continue to rise purely on speculation before their earnings release, I'm pretty sure it would be too richly valued and will be a matter of time before the stocks dip to the 3-4 dollar level where it belongs.
Plus if their stocks continue to rise purely on speculation before their earnings release, I'm pretty sure it would be too richly valued and will be a matter of time before the stocks dip to the 3-4 dollar level where it belongs.
#30
Originally Posted by iamhomin
Hmm, that's optimism. How can you say they will turn things around in two years? They lost about 25% of their account holders, sold significant part of their portfolio, and gave Citadel a lot of equity when they accepted the cash infusion. I'm just brushing the surface here..
Plus if their stocks continue to rise purely on speculation before their earnings release, I'm pretty sure it would be too richly valued and will be a matter of time before the stocks dip to the 3-4 dollar level where it belongs.
Plus if their stocks continue to rise purely on speculation before their earnings release, I'm pretty sure it would be too richly valued and will be a matter of time before the stocks dip to the 3-4 dollar level where it belongs.
#31
Suzuka Master
Join Date: Jun 2003
Location: SoCal
Age: 49
Posts: 8,333
Likes: 0
Received 0 Likes
on
0 Posts
i'm an E-Trade believer, and i don't even have a brokerage account with them.
https://acurazine.com/forums/showpos...2&postcount=64
also got in at $2.50.
https://acurazine.com/forums/showpos...2&postcount=64
also got in at $2.50.
#33
Pro
Join Date: Feb 2006
Location: east bay G
Age: 38
Posts: 643
Likes: 0
Received 0 Likes
on
0 Posts
if you got 5 grand you can buy two boats (2000 pills) of extasy. if you sell each pill for 5 dollars, you make 10 grand. sell each one for 10 dollars, you make 20 grand. investing money into drugs can generate returns of over 100%, which is much higher than any bank.
j/k
i have around 7,000 in a CD account at patelco which i dont touch. i earn about 40 bucks a month on interest, but i got to keep it at least 5,000 for a year or else i lose the special rate.
j/k
i have around 7,000 in a CD account at patelco which i dont touch. i earn about 40 bucks a month on interest, but i got to keep it at least 5,000 for a year or else i lose the special rate.
Last edited by Trojanman750; 02-17-2008 at 11:44 PM.
#34
Pro
Join Date: Feb 2006
Location: east bay G
Age: 38
Posts: 643
Likes: 0
Received 0 Likes
on
0 Posts
you can also become a lender, if you think you can collect easily.
i lent a good friend of mine $800 to help him cover some "expenses", and i will be getting $1000 next weekend, very quick return.
i would not mess around with stocks right now, the whole market seems pretty bad. put it into something where you can get a set percentage with no risks. check out credit unions and the such.
and i wouldnt invest in AMD or Nvidia, my friend just bought those exact same companies in his "make believe" portfolio, where you invest with play money. he had something like a %40 loss or some shit.
i lent a good friend of mine $800 to help him cover some "expenses", and i will be getting $1000 next weekend, very quick return.
i would not mess around with stocks right now, the whole market seems pretty bad. put it into something where you can get a set percentage with no risks. check out credit unions and the such.
and i wouldnt invest in AMD or Nvidia, my friend just bought those exact same companies in his "make believe" portfolio, where you invest with play money. he had something like a %40 loss or some shit.
Last edited by Trojanman750; 02-17-2008 at 11:44 PM.
#38
Suzuka Master
Join Date: Jun 2003
Location: SoCal
Age: 49
Posts: 8,333
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by Trojanman750
i would not mess around with stocks right now, the whole market seems pretty bad. put it into something where you can get a set percentage with no risks. check out credit unions and the such.
#39
I completely forgot about Etrade until someone was asking me about them the other day and I felt the need to bring this thread back up just to say... I told you so.
ETFC is still not worth it at its current price of a buck and some change.
ETFC is still not worth it at its current price of a buck and some change.
#40
Racer
Join Date: Jan 2005
Location: West Hartford, CT
Age: 40
Posts: 451
Likes: 0
Received 0 Likes
on
0 Posts
isn't Etrade bankrupt?
I haven't following it for a while, but right now it seems trading in basic material and energy stocks are the way to go, cus right now we are in deflation period, when inflation hits, these stocks will take off from their 52week lows
I haven't following it for a while, but right now it seems trading in basic material and energy stocks are the way to go, cus right now we are in deflation period, when inflation hits, these stocks will take off from their 52week lows