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Everything not about BMWs. Posts must be "primetime safe" and in good taste. No personal attacks allowed. Political posting is restricted to the Political Science forum!

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  #1  
Old 05-16-2005, 12:09 PM
toplessbimmer toplessbimmer is offline
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Stock market

I think many of you are great business people and are smart. With that said I really want to get involved in the stock market, I am young so I have a crappy minium wage job, any suggestions on what to invest in or what online stock service to use. I know people say the stock market is dead but I think its on its way back.

Also...... We should have a section on the forum where you can post stock tips and business news.
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  #2  
Old 05-16-2005, 12:10 PM
pintnight pintnight is offline
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Buy high, sell low. Wait.... I think it's buy low, sell high. I think.
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  #3  
Old 05-16-2005, 12:11 PM
Pvt. Joker Pvt. Joker is offline
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Whenever a friend gives you a stock tip, go out and short sell the stock.
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  #4  
Old 05-16-2005, 12:17 PM
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Robsa Robsa is offline
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Quote:
Originally Posted by Pvt. Joker
Whenever a friend gives you a stock tip, go out and short sell the stock.
So true. Now if its a tip made as a first post on any board then you have to assume your the first to hear of it and immediatly buy.
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  #5  
Old 05-16-2005, 12:22 PM
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Terry Kennedy Terry Kennedy is offline
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Quote:
Originally Posted by toplessbimmer
I am young so I have a crappy minium wage job, any suggestions on what to invest in or what online stock service to use.
The most important thing I learned was that knowledge of a company and the industry it is in is no predictor of its stock performance. Companies with the most incompetent, dishonest management and terrible products do well in the market, while some companies with excellent products and good management lose value.
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  #6  
Old 05-16-2005, 02:08 PM
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Spiderm0n Spiderm0n is offline
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Quote:
Originally Posted by Terry Kennedy
The most important thing I learned was that knowledge of a company and the industry it is in is no predictor of its stock performance. Companies with the most incompetent, dishonest management and terrible products do well in the market, while some companies with excellent products and good management lose value.
Warren Buffet got his $ Billions by doing exactly what you are saying not to do.
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  #7  
Old 05-16-2005, 05:00 PM
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nowonder nowonder is offline
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Don't invest a penny until you have paid off all of your other debts.

Only when you are debt free does it make sense to start playing the market.

--nw
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  #8  
Old 05-16-2005, 05:11 PM
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Chris90 Chris90 is offline
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Quote:
Originally Posted by nowonder
Don't invest a penny until you have paid off all of your other debts.

Only when you are debt free does it make sense to start playing the market.

--nw
I learned that lesson the hard way, yes - good one.

I recommend mutual funds to make money, individual stocks just for fun.
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  #9  
Old 05-16-2005, 05:55 PM
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Dave 330i Dave 330i is offline
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Quote:
Originally Posted by toplessbimmer
I think many of you are great business people and are smart. With that said I really want to get involved in the stock market, I am young so I have a crappy minium wage job, any suggestions on what to invest in or what online stock service to use. I know people say the stock market is dead but I think its on its way back.

Also...... We should have a section on the forum where you can post stock tips and business news.
I use Harrisdirect.

My stock tip of the day
GM
XOM
MSFT
WMT
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  #10  
Old 05-16-2005, 06:29 PM
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Always bet on red.
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  #11  
Old 05-16-2005, 06:44 PM
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Scott ZHP Scott ZHP is offline
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Quote:
Originally Posted by toplessbimmer
I really want to get involved in the stock market, I am young so I have a crappy minium wage job, any suggestions on what to invest in or what online stock service to use. I know people say the stock market is dead but I think its on its way back.
Two words: Index Fund.

Dont even think about trying to pick individual stocks. With your current income, you're not investing, you're gambling. Do you have any credit card debt? If so, pay it off first.

Read The Intelligent Investor by Benjamin Graham; it's how Buffett and Charlie Munger made their fortune. You need to understand how Wall Street works if you have any hope of making a decent return.

Last edited by Scott ZHP; 05-16-2005 at 06:51 PM.
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  #12  
Old 05-16-2005, 06:50 PM
ObD ObD is offline
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Start with a no-load mutual fund to get your feet wet. When you are ready to invest in individual stocks, pick stocks of products that you use. You can monitor quality and pricing, and learn to read their financial reports. Also be observant, it doesn't take a genius to figure out GM stock would tank when they offered 0 percent finance rates, On-Star giveaways and such.

Investing is discipline, long term profits, and diversity. IIRC if you put in $50 a week for 20 years and your annual rate of return is a modest 7% you'll have ~ $100K.
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Last edited by ObD; 05-16-2005 at 06:52 PM.
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  #13  
Old 05-16-2005, 06:53 PM
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Scott ZHP Scott ZHP is offline
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Quote:
Originally Posted by ObD
Also be observant, it doesn't take a genius to figure out GM stock would tank when they offered 0 percent finance rates, On-Star giveaways and such.
Actually GMAC (their finance arm) is the most profitable part of GM.
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  #14  
Old 05-16-2005, 07:00 PM
ObD ObD is offline
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Quote:
Originally Posted by Scott ZHP
Actually GMAC (their finance arm) is the most profitable part of GM.
True, but they do home mortgages too. IMHO if you have a hot product why do you need to subsidize it.
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  #15  
Old 05-16-2005, 07:07 PM
LarryN LarryN is offline
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$25 minimum blackjack table near the Texas Holdem area in the Flamingo. Dealer's name is Liu. Just invested some money there last week. Finally made more than spending, by a good bit.
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  #16  
Old 05-16-2005, 08:08 PM
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Terry Kennedy Terry Kennedy is offline
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Quote:
Originally Posted by Scott ZHP
Two words: Index Fund.
Why? In a good year (up stocks outnumber down stocks) you'll be capped at the index's overall gains. In a bad year, you'll follow the index down. If you are looking for security, look at one of the investment packages which guarantees a rate of return not less than a specified index and is guaranteed by a bank or other institution.
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  #17  
Old 05-16-2005, 08:57 PM
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Scott ZHP Scott ZHP is offline
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Quote:
Originally Posted by Terry Kennedy
Why? In a good year (up stocks outnumber down stocks) you'll be capped at the index's overall gains. In a bad year, you'll follow the index down. If you are looking for security, look at one of the investment packages which guarantees a rate of return not less than a specified index and is guaranteed by a bank or other institution.
Terry - I respect your opinion, but diversification is the path to prosperity in common stock investment. It is the only proven strategy over the long term.

At his/her (presumed) age and risk tolerance, an index fund is the only prudent choice. Unless you do this for a living, betting on single stock is a crap shoot. During the telco boom I made a small fortune on CSCO and prompty lost a significant portion of it on JDSU.

Please define an "investment package with a return not less than a specified index". That smells like an index fund or a unit investment trust to me.
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  #18  
Old 05-16-2005, 09:14 PM
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Terry Kennedy Terry Kennedy is offline
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Quote:
Originally Posted by Scott ZHP
Terry - I respect your opinion, but diversification is the path to prosperity in common stock investment. It is the only proven strategy over the long term.
I didn't say not to diversify, just that an index fund might not be the best vehicle.
Quote:
Unless you do this for a living, betting on single stock is a crap shoot. During the telco boom I made a small fortune on CSCO and prompty lost a significant portion of it on JDSU.
Indeed. The only reason to get into a single stock is if your employer gives shares as bonuses, matches stock purchases, or some similar package. Even then you have to be careful - just look at what happened to the Enron employees.
Quote:
Please define an "investment package with a return not less than a specified index". That smells like an index fund or a unit investment trust to me.
I just checked my [brief] notes from when my adviser mentioned it to me. It offered a guaranteed rate of return not less than 4% (minimum return) and the maximum return was the S&P less .5%.

A friend of mine was in a fund that tracked the S&P and rode it all the way down.

While we all need to remember "past performance is no guarantee of future results", there are a lot of funds that consistently outperform (for example) the S&P 500.

If you want a guarantee, get into a fixed account. Boring and low rate of return, but no need to manage it.
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  #19  
Old 05-16-2005, 09:42 PM
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swchang swchang is offline
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I've heard that to really make a lot of money, you must take on a lot of risk. Diversifying will probably net you money, but investing everything in a single stock that makes it big, like MSFT back in the '80s or so...

Anyway, with risk comes reward (or suicide).
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  #20  
Old 05-16-2005, 10:52 PM
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MG67 MG67 is offline
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Stocks are funny... I had a lot of Cisco Systems stocks in 1998 and sold about half, made a lot of money. Still have a bunch left and they are worth about 10% of the original price.
If you would want to do something save up money to purchase a house much better..
My friends never listen to my advise about stocks, that's why I still have a lot of money and they were losing a lot of it by purchasing stocks like P6....
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  #21  
Old 05-17-2005, 06:09 AM
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johnlew johnlew is offline
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Quote:
Originally Posted by Terry Kennedy
I just checked my [brief] notes from when my adviser mentioned it to me. It offered a guaranteed rate of return not less than 4% (minimum return) and the maximum return was the S&P less .5%.
Sounds like a variable annuity (insurance product).
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  #22  
Old 05-17-2005, 07:06 AM
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Artslinger Artslinger is offline
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I dump as much money as I can into my 401k.

65% stock, 20% bonds and 15% cash.
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  #23  
Old 05-17-2005, 09:28 AM
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Anyone have any experience with the index shares like QQQQ or SPY? Do they have any hidden costs, or are they just like trading any other stocks?
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  #24  
Old 05-17-2005, 09:33 AM
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Quote:
Originally Posted by swchang
I've heard that to really make a lot of money, you must take on a lot of risk. Diversifying will probably net you money, but investing everything in a single stock that makes it big, like MSFT back in the '80s or so...

Anyway, with risk comes reward (or suicide).
That's always the case. But unless you've got money to burn, can you afford to pour enough money into a tiny chance?
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  #25  
Old 05-17-2005, 09:36 AM
Pvt. Joker Pvt. Joker is offline
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Quote:
Originally Posted by nowonder
Don't invest a penny until you have paid off all of your other debts.

Only when you are debt free does it make sense to start playing the market.

--nw
excluding a mortgage of course.
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