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stock market
Topic Started: Nov 15 2010, 06:05 PM (3,340 Views)
Stately
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Geo cheerleader

horn12007
Nov 16 2010, 06:37 PM
.....if thats what you mean then I agree.
That is what I meant.

And that the Stock Market, or more precisely Wall Street, is evil.
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Car Nut
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Before anybody even considers investments they should establish an emergency "rainy day fund". Experts say we all should have a 6 months cushion saved up just in case of an air raid or whatever. Ever wonder how much money those "experts" make? Really though, you do need some emergency money FIRST. Never know when your engine, trans, hot water heater, etc, is gonna take a dump. When you're ready, start with a mutual fund, not individual stocks. You spread your risk out among more shares/companies that way. Remember the saying, "don't put all your eggs in one basket"? Make sure you don't get eaten alive by comissions & fund expenses. Go to Vanguard.com They have some excellant evaluation resources and are probably the least expensive of any with regard to expenses. Read Smart Money magazine. Interesting articules on money management. Check out Dodge and Cox fund. Excellant LONG term performance. Almost nothing has done well short term. IE: last 5 years. Schultz makes an excellant point with his statement about starting early. CONSISTENCY is what really matters. Putting in something, no matter how much, over the long haul, every payday or monthly, whatever. By doing that, you are "dollar cost averaging" your share purchases. In other words, you don't time the market & really end up paying on the high end. You buy some shares low, some high & some in the middle range. Over time you "average" out your cost. If your fund seems like it's tanking, don't freak & sell. Hold on, it will most likely come back unless you had everything invested in Enron, which you shouldn't have done in the first place. See instructions above. lol Heard yesterday the Chinese save approx. 20% of their income. We are at 5% or less. Not smart! And we wonder how the foreigner dish washer guy buys the diner after working there a few years.
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dayle1960
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Fastest Hampster EVER

You can invest in the stock market and make money. But, you first must learn how to buy and sell stocks. There is one book that I would highly recommend to anyone who would like to test the waters of investing. "How to make money in stocks", by William J. O'neil. His books are very informative on how to purchase shares of stocks in individual companies. He ownes a newspaper called Investors Business Daily, and has grown it into the premier stock newspaper in the world. It beats the Wall Street Journal hands down. His methods work mainly because you use charts, volume indicators, quarterly sales increases, and other metrics to make entry points into positions, and then follow your investments like a hawk to make sure you don't lose you shirt. He teaches you how to manage your investments in the good times and when the market is in a corrective phase. BTW, today signaled another distribution day for the major indexes making it very likely that the markets will go down for the foreseeable future. (If your in any positions currently it is very imperative you look at getting out of those positions quickly before losses occur).

Education is the only way to make money in the stock market. If you are unwilling to put in the effort to make sound decisions then you are just throwing your money away. And also, DON"T listen to anybody who has a hot tip. Jim Cramer included. Don't listen to the pundits on TV because they are trying to get you to buy their stocks. Just read O'neil's books and make informed decisions.

I have made one good trade and that one trade doubled my money in a few months. It was done using O'neil's methods of stock selection and timing. It felt good to use mind to make some money instead of my back.
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Car Nut
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Good post. I like IBD & Barrons too, but don't have time to read them. That's why I like the mutual funds now. Don't have to babysit as much. Plus, seems I'm double cursed with no time & no money here lately. col
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mjspiess
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Horn, my wife (24) & I (27) are both young & have not & will not invest in the stock market. You can take my advice if you'd like, but no worries if you don't because we'll still be just fine financially :P Any "get rich quick" strategies rarely, if ever work. However, with the right education, time & maybe some luck, you can certainly "win" in the stock market.

We first started with an emergency fund, because we saw the importance of it. You never know if crap could hit the fan & you NEVER want to put an emergency on a credit card because you then just created 2 emergencies! We have our emergency fund in a savings account. Does it make us a lot of money? At first it didn't, but it is now & is easily accessible for emergencies only. We have never had to dip into it, but keep adding to it so it has now become our savings for a house. We try our best to put $1-$2k a month into it. We have it in an ING savings account and are making around $45 a month in interest alone! We make over a dollar a day, just by keeping it in that account. We are allowd to have up to $250k in that account.

We each also have a traditional IRA mutual fund that is risky now & will get more conservative as we get older. And we each have a 401(k) with our jobs. 6% of my checks go to that since my job matches 6%. My wife finished school with zero debt. She is a Persanal Banker for 5/3, so we do use a credit card, but only for gas or things we need, not want. I however, finished school with around 38k in debt... :holycrap For the last year, I've been paying $800 a month toward my loans (over 3 times the minimum) to get the principal down. 4 years out of undergrad, it is now down to around 23k. I plan to start paying $1k a month for the next 2 years to finally be debt free so that we can put $2-$3k a month into savings. We still live very comfortably. In fact, we plan on buying a 40" LCD HDTV on Black Friday because $300 is a great deal & we have the money. We still go out to eat, shop, etc, but we we're just smart about it & don't go crazy. Also, my wife keeps a tight budget using www.mint.com. A very cool website by the way! We do rent an apt. which could be a whole other debate, but that's neither her nor there. The cool thing is, that we're able to save a ton of money each month, still renting, and will be able to buy a house with CASH in 3 years. We will be completely debt free, own 3 vehicles & a house & both be under the age of 30. Not too many people can say that & it won't be because we "played" the market or won the lottery, it'll be because we properly managed our money with integrity and responsibilty.

I understand you want to be risky now since you're young, but be sure to get your ducks in a row. Get that emergency fund established & don't touch it unless you have an emergency! Then save up a $1k or so & have some fun with the stock market. As long as you're cool if you lose, there's no shame in that, but there are certainly safer, more efficient ways to earn money without "gambling". In short, I'd go with a mutual fund. They can be designed to suit your age (risky now, conservative later) And have fun! :drink
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Horn


guys thats too much reading. lol. Im actually halfway through phil towne's rule one.
also I do have a six month safety net. but one thing that I have that few others have is that my money if from the G.I. Bill. I don't work and my college is payed for, so I don't have to worry about losing a job since I don't have one. Also I won't have much if any debt after college, unless I go to graduates.
and regarding mutual funds I've already had one and it lost about half its value....but that was also when the market took a down turn after 9/11.
Believe me I'm not some punk kid who inherited some money and thinks that he is going to become rich off the stock market. I don't believe in any of the get rich crap. I also don't expect to make a lot if any off the stock market. Also I'm not saying that there aren't better ways to invest, but this is my experiment.
I know all about the credit card stuff and how all that works. I actually use my credit card all the time...but pay it completely off every month. (and my version of all the time will equal $300 max a month). Some people say its a bad habit to use a credit card the way I do, but its no different then me using my debit card. so does anyone have any insight on any other stock.
Edited by Horn, Nov 16 2010, 11:50 PM.
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Bad Bent
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Facetious Educated Donkey

Well, and there's my issue with saving. It was great when I was younger but the interest rate today is miserable, to be kind.
I just loaned my Credit Union $1,000 for 18 months (CD) and made about $25. I'm not really impressed. :shake
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Woodie
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Saying that "The Stock Market" is good or bad is just like saying "all cars suck" because of your experience with a Fiat thirty years ago.

My IRA is in a managed fund that I've instructed to act conservatively, when the recent crash happened, it lost about one third of its value, which has now rebounded. Remember that a lot of that value was money I had already profited, so the net effect was that it dropped to about the amount I had actually put in myself. Some of the others I work with have their IRA set to a more risky profile and they lost their shirts, but they stand a good chance of making it back and zooming right past me too. As someone already pointed out, it's gambling. My IBM stock, held separately, also lost about one third, but is now far above where it was two years ago, and has been paying steady dividends the whole time.

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Horn


Not saying that it isn't gambling but like i've said before I feel like gambling a bit right now. Its a lot better to take the risk when you are young then old. If it works out and i make a few dollars good for me, but if it doesn't work out then thats what it is. At least if I lose it will only be money and not a house or food for kids.
some people will say that others were dumb for putting lots of money in the stock market, but for a while there almost everyone could make money. also many people that lost their retirement now saw the the stock in the 80s when it took and dump then saw the rebound in the 90s. Up until this time the market has always rebounded and has become stronger. I am not saying that it will rebound a lot, nor am I saying it will be stronger.....all im saying is I want some stock ideas to look up.
Edited by Horn, Nov 17 2010, 07:37 AM.
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metroschultz
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Please just call me; "Schultz"

BryanTheGhostRider
Nov 16 2010, 03:26 PM
Wife has talked abt the 2000 thing before. Im expected to do it once I get a job going
I have been trying to get my 3 kids to do this.
One doesn't have any spare money. (lives with her BF at his mothers house)
One lives with me and is still paying off years of accrued debt. (No money either)
One spends his extra money on computer geek stuff. (he could but would rather play now)
If you keep putting the $2,000 in every year, and don't stop in 15, you will have your million 7 years sooner.
That is the power of compound interest.
FWIW Barb and I started a regular savings account at our local Credit Union.
$100 a month from my check and $80 from hers.
We are working on the emergency fund first.
Then after we have that we start working on our million.
I plan on living long enough to use it. B-)
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Horn


lol im watching my cmgr stock increase 400%. lol
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MR Bill
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Sure wish I had kept my 1965 Plymouth 426 SS. It would be worth a ton of money now.
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Horn


I sure wish I kept my virginity.....good looking girls can get several million dollars for it on ebay....but im not a girl. lol
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Ryan
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Ryan

Oh hell yes, my favorites joined in this thread and I missed it until now! Can't wait to chime in tomorrow!
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DesmondGhostRider
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In a volatile market, the only safe investment is porn. People will always like porn; it's why the Internet was invented after all. So, when the stocks go down, porn goes up.

-avenue q
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