SupaRookie

Today is a new year and part of my resolution is budgeting myself so I can buy a house in 3-4 years. I also wanted to look into stock. The last time I looked into stock was 8 years ago in my economics class in high school, lol. I made some funny money back then! I will need to do some research, but this whole month I need to concentrate on studying for my CCNA. Need to pass and get me a new job. I plan on using E*Trade. Any suggestions for a virgin in the stock market? Beginners books to read? Thanks for any help.

moonraker

if you are a n00b then read tons of books/online resource (investopedia.com to learn basics). do not invest right off the bat unless you're picking big well known names (for the most part) like MSFT, MCD, INTC, etc.

i'd say throw your money in a mutual fund or index tracking ETF in the mean time while you continue to learn. because, if you just jump right in picking individual names, chances are, you will lose in the beginning.

really just depends on how expensive of a "lesson" you want to learn. not trying to be harsh, just trying to be helpful. the best advice i can give is read read read. you can always learn new things related to valuation/technical analysis/global macro trends, etc.

SupaRookie

I'm not trying to be a trader full-time. My plan is investing in big tech company. I was looking at intel, but they are pretty damn high. I hope I dont have to learn an expensive lesson. I know there's technique involve, but that's advance stuff. I remember someone told me how Warren Buffet invested. He buy when big company are relatively down. I wanted to get AMD because they are so low. But I prefer Intel.

doopstr

Are you looking for a high risk tech company, where you could easily double your money but could also lose your ass, or something more stable?

taz98spin

As long as you don't get scared and sell your stocks when your stock prices drop, you shouldn't have to learn an "expensive lesson"

You're 25, so you should have tons of time wait for the price to go back up.

Besides, Buffet said Never lose money as well.

I think Fool.com is a pretty useful place for beginners.

NSXNEXT

iTrader: (2)

What return are you expecting?

If it were me and it was for a home, I would invest in a medium to low risk MF to invest your money in. Don't expect to make millions, but also don't expect to lose anything.


BUT first I would also be talking to a certified financial planner and not taking advice from an automobile forum. Just my

SupaRookie

No high risk. I am the balance type personality (libra). A month I try to save up $300-$500 and put it in the bank. My goal is to put $1000-$1500 with a newer job. When I buy a house, I will most likely get help from my parents. The more money I have to down a house, the better chances I can get a loan approved. Houses in the silicon valley are ridiculously expensive. My goal is to down $50k-$100k on the house. I have $1k save up! I dont have time to talk to any financial planner, although I would love to one day. I figure since I spend some time here, I might as well ask someone. I have read on investopia about MF and will probably look into it for starting. Curious what the returns for medium risk on the MF?

Chief F1 Fan

I've had good luck w/ Transocean (RIG); China Life Insurance (LFC); and Allegheny Technology (ATI). If you wanna dabble but not spend tons and tons of money, maybe buy Delphi at .16 cents/share. It is coming out of bankruptcy and to me, there's no place but up. It's been infused with a bunch of money to get it solvent/profitable again. I have 10,000 shares of it. Last, get yourself a subscription to Smartmoney.com and use the price calculators there to learn how much the stock is going to be worth in the future. Last I looked, RIG was going to be worth 28% more in 3 years than it is now. I bought it at 72/share a little over a year ago and now it's at $145 today.

SupaRookie

Damn .16cents/share!! Doesnt Delphi make those XM radio equipment? My current income is too low to play those tickers you mention about. Beside, I dont know anything about those companies. I will go to Borders and check out Smartmoney.com and see if it's worth the subscribing to.

special-ed

If you're not a huge risk taker, I would do what some of the others have been saying and just put that 1k initially into a Mutual Fund and let it grow while you're still learning.

Read some books, then paper-trade (pretend you bought the stock and watch it, etc like you probably did in your econ class) some stocks and evaluate how you did that year.

Some books that come off the top of my head that I've read in the past are:
"How I made $2,000,000 In The Stock Market" by Nicolas Darvas
"Trend Following - How Great Traders Make Millions In Up or Down Markets" by Michael Covel

There's tons of resources out there. Pick up a few and then as you start paper-trading you'll figure out what works for you. In the meantime, you're young. Start saving and you'll save yourself a lot of headaches down the road.

Several articles I've read recently stating how those in their 20's right now will probably not have anything put aside come retirement. Scary. At least you're one of the few thinking ahead.

Granted you only have 1k to invest, don't think that all Financial Advisors won't speak to you unless you have a million in assets. As much as I like making money, a lot of the satisfaction comes from building long term relationships and being able to help people get on the right track. Our practice grows as our clients grow. Being in the field that I'm in and the company I work for is a privilege.



Disclosure: I am a FINRA Securities Registered Rep and Investment advisor. I will not be held liable for advice taken or followed as a result of my postings on the Acurazine Forum.

Please consult your CPA or Tax Advisor regarding any Tax Issues. For further Financial Planning assistance, please consult your Financial Advisor. If you'd like assistance or to be put on my mailing list, please feel free to PM me so I may follow up with you via work in a more professional and secure manner.

special-ed

wow, never would have thought a big name like Delphi would be trading on the Pinks. Pray for that bottom bounce.

mrsteve

iTrader: (1)

Is that necessary in EVERY post you make? Nobody is gonna sue you if they take some advice they got off a car web-forum and lose money on their investment. It's annoying.

special-ed

It is if I can't get my sig to show up. You're not the one with a financial practice, errors and omissions insurance, and licenses to risk.

You can always ignore my posts.

Will Y.

Shhh!
I'm a lawyer and am writing a complaint right now; I just need a client!


Oh, and special-ed, the signature can be added by checking the appropriate box in your Account info. Pick a smaller font so the disclaimer doesn't take up so much space.

special-ed

haha! Unfortunately there are people that do take advantage of the system! I don't plan to be on the receiving end either!

I think the sig finally went through. This post will be the tester. I'll make the necessary adjustment on there though.

(some reason, only shows up in my PM's but not on posted threads..... )

SupaRookie

Studying day in and day out get so tiring. I dont plan to make a living on stocks because I dont want to keep looking to see if my ticker is going up and down all day long. I should probably take some classes to learn about these thing. It's more fun than reading by myself at home.