05-18-2012, 01:38 PM
#1
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I'm sure most of you have heard about Facebook stocks being the trendy thing, and I have seen people getting rich already of their stocks. What I want to know is how do I buy stocks?

How do I play the stock market? What's the first thing I should know or do? I want to buy Apple, Google and Facebook stocks...but I have no idea how or the slightest clue on anything to do with stock.

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 05-18-2012, 01:50 PM
#2
  • bullgoose
  • The Enabler
  • Redondo Beach, California, U.S.A
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There are many online brokerages (e.g., Scott Trade) or you could go through a traditional brokerage. Other than that, I hesitate to offer any advice. For every story of someone getting rich, there are two stories of people losing money. It can be high reward but, it can also be high risk. Do your homework.

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 05-18-2012, 05:09 PM
#3
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It's actually pretty simple. Remember that the house gets its cut (called 'bid and ask'). Do a lot of practice trades after considerable historicle research on something that you are familiar with.

JMHO, but now would be a good time to start your homework.

Step in with your change! Not your savings.
Just a hint, nothing more. Look for the small spread. percentage wise. For now.

To be clear, l am not speaking as an advisory.

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 05-18-2012, 05:44 PM
#4
  • Harvey
  • Senior Member
  • North Hills CA
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Warning..Warning..do not buy stocks !!!!! Buy thousands of dollars of shaving equipment and you will save so much money on blades that you will indirectly become rich beyond your comprehension....never give up...stock up for the end of days and resell on the black market...that is what I did and I am now on the Forbes list...trust me ..a wet shaver never lies...stocks are for fools...so to repeat stock up on shaving equipment you will never feel poor again !!!!!!

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 05-18-2012, 08:42 PM
#5
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I'd want to see the financials of facebook and it's ability to make money on its services before EVER buying stock in it...JMHO.

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 05-18-2012, 08:48 PM
#6
  • bullgoose
  • The Enabler
  • Redondo Beach, California, U.S.A
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If you follow this basic tenet, you will be on easy street. Buy low and sell high. Biggrin

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 05-18-2012, 09:42 PM
#7
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(05-18-2012, 08:48 PM)bullgoose Wrote: If you follow this basic tenet, you will be on easy street. Buy low and sell high. Biggrin
Damn, that's the part I missed.Huh

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 05-19-2012, 05:57 AM
#8
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I think the first thing you have to decide is what your goal is. Do you want to generate income? Are you looking to supplement your retirement fund? Determining your goal will help you decide how to proceed.

My one piece of advice is not to follow the trendy thing. If it's trendy, that means everybody knows about it already and the ship has already sailed. Apple and Google may be good options still based on fundamentals, but you'd have to do the research. Facebook? I haven't read anything to convince me it has a viable business model.

I'm pretty risk averse (basically a single income household just getting by, without much spare money to play around with), so I'm putting small amounts in big companies that pay nice dividends. I also try to buy some precious metals every month (this week was a great buying opportunity, BTW). With the mess in Europe and rumblings of another round of QE here in the US, I think the long-term outlook on metals is good. If the idiot politicians and the Fed ever do anything to get us back on track with sound money and we see better returns in other investments, I can always sell off and get back into paper. But I have no delusion that the politicians and Fed are on my side.

If you don't have the inclination or time to learn about investing or trading then you might look at mutual/index funds. Check out what Bogle and Vanguard have done with them.

I'd recommend signing up with one of the discount brokerages. I'm on TradeKing, which just merged with Zecco. They have educational materials for new investors as well as community forums where there is no shortage of advice. There are also many personal finance blogs that you can follow for advice. I've read Get Rich Slowly, Five Cent Nickel, Free Money Finance, etc. Read a variety of things so you don't get fixated on a single idea.

Don't rely on luck!

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 05-19-2012, 05:58 AM
#9
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(05-18-2012, 01:38 PM)JonJones84 Wrote: I'm sure most of you have heard about Facebook stocks being the trendy thing, and I have seen people getting rich already of their stocks. What I want to know is how do I buy stocks?

How do I play the stock market? What's the first thing I should know or do? I want to buy Apple, Google and Facebook stocks...but I have no idea how or the slightest clue on anything to do with stock.

Jonjones,

Guess I have to be the lone voice of dissent here and encourage you not to do any speculative stock trading. The only reliably safe way to play the market is Buy and Hold. All the rest is gambling. Do research. Find companies you like with good fundamentals and then buy their stock and forget about it for 20 years. Even then, you will make mistakes. The number of variables around whether a company succeeds or fails is substantial, difficult to monitor and nearly impossible to predict direction. Doing the same thing with a company's stock price is orders of magnitude more difficult.

Active stock trading, especially for us normal mortals, is no different from gambling. The only difference is that casinos are more strictly regulated and there's no inside information giving the other gambler's an inside edge.

Properly warned, if you decide to do this anyway, as others have said, play only with the money you can lose.

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 05-19-2012, 07:00 AM
#10
  • texquill
  • Olver Warbucks
  • Richardson - DFW area of Texas
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Over the past several years, computer-driven "program trading" has become the driving force behind the stock market. The thrust of program trading is that the computer is sensitive to tiny changes in a stock's price (usually between different market) and immediately executes a trade to take advantage of that change. A consequence of the program trades is that, oftentimes, a particular stock will change in value for no fathomable reason. This makes the concepts of diligent research and "buy and hold" extremely important to the individual investor.

Another approach to purchasing stocks is to purchase units of mutual funds, which are managed by full-time analysts. You still have to do research to make sure that the fund's track record, commission structure, and investment objectives are acceptable to you; however, you are relieved in large part from the requirement of having to constantly update your research on your individual holdings.

Good luck!

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 05-19-2012, 08:04 AM
#11
  • Harvey
  • Senior Member
  • North Hills CA
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(05-18-2012, 08:48 PM)bullgoose Wrote: If you follow this basic tenet, you will be on easy street. Buy low and sell high. Biggrin

Oh now you tell me...I always buy High and get Low...or is it buy Low and get High...too confusing...just buy thousands of dollars of shaving products and feel High !!!!!

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 05-19-2012, 08:26 AM
#12
  • Johnny
  • Super Moderator
  • Wausau, Wisconsin, USA
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I don't have to worry about it. All of my life savings are stuffed under a mattress in Bernie Madoff's prison cell. If there was ever an SOB that I hope never sees the light of day again, he is it.

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 05-19-2012, 01:45 PM
#13
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(05-19-2012, 05:57 AM)dontodd Wrote: I think the first thing you have to decide is what your goal is. Do you want to generate income? Are you looking to supplement your retirement fund? Determining your goal will help you decide how to proceed.

My one piece of advice is not to follow the trendy thing. If it's trendy, that means everybody knows about it already and the ship has already sailed. Apple and Google may be good options still based on fundamentals, but you'd have to do the research. Facebook? I haven't read anything to convince me it has a viable business model.

I'm pretty risk averse (basically a single income household just getting by, without much spare money to play around with), so I'm putting small amounts in big companies that pay nice dividends. I also try to buy some precious metals every month (this week was a great buying opportunity, BTW). With the mess in Europe and rumblings of another round of QE here in the US, I think the long-term outlook on metals is good. If the idiot politicians and the Fed ever do anything to get us back on track with sound money and we see better returns in other investments, I can always sell off and get back into paper. But I have no delusion that the politicians and Fed are on my side.

If you don't have the inclination or time to learn about investing or trading then you might look at mutual/index funds. Check out what Bogle and Vanguard have done with them.

I'd recommend signing up with one of the discount brokerages. I'm on TradeKing, which just merged with Zecco. They have educational materials for new investors as well as community forums where there is no shortage of advice. There are also many personal finance blogs that you can follow for advice. I've read Get Rich Slowly, Five Cent Nickel, Free Money Finance, etc. Read a variety of things so you don't get fixated on a single idea.

Don't rely on luck!

Unfortunately, I have no idea what you're talking about. lol Yeah, I never thought about the idea of investing in Gold or Silver. It just never occurred to me to. I guess I want this to be income based and not really retirement. I'm still fairly young and have lot of years to go before I think about retirement. I also don't have any slightest clue which companies are good to invest in.

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 05-19-2012, 02:35 PM
#14
  • freddy
  • Senior Member
  • San Diego, California, U.S.A.
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(05-19-2012, 01:45 PM)JonJones84 Wrote:
(05-19-2012, 05:57 AM)dontodd Wrote: I think the first thing you have to decide is what your goal is. Do you want to generate income? Are you looking to supplement your retirement fund? Determining your goal will help you decide how to proceed.

My one piece of advice is not to follow the trendy thing. If it's trendy, that means everybody knows about it already and the ship has already sailed. Apple and Google may be good options still based on fundamentals, but you'd have to do the research. Facebook? I haven't read anything to convince me it has a viable business model.

I'm pretty risk averse (basically a single income household just getting by, without much spare money to play around with), so I'm putting small amounts in big companies that pay nice dividends. I also try to buy some precious metals every month (this week was a great buying opportunity, BTW). With the mess in Europe and rumblings of another round of QE here in the US, I think the long-term outlook on metals is good. If the idiot politicians and the Fed ever do anything to get us back on track with sound money and we see better returns in other investments, I can always sell off and get back into paper. But I have no delusion that the politicians and Fed are on my side.

If you don't have the inclination or time to learn about investing or trading then you might look at mutual/index funds. Check out what Bogle and Vanguard have done with them.

I'd recommend signing up with one of the discount brokerages. I'm on TradeKing, which just merged with Zecco. They have educational materials for new investors as well as community forums where there is no shortage of advice. There are also many personal finance blogs that you can follow for advice. I've read Get Rich Slowly, Five Cent Nickel, Free Money Finance, etc. Read a variety of things so you don't get fixated on a single idea.

Don't rely on luck!

Unfortunately, I have no idea what you're talking about. lol Yeah, I never thought about the idea of investing in Gold or Silver. It just never occurred to me to. I guess I want this to be income based and not really retirement. I'm still fairly young and have lot of years to go before I think about retirement. I also don't have any slightest clue which companies are good to invest in.

It is just because you are so young that you should start thinking about saving for retirement now and not later. From everything you've stated here, I get the feeling that you want to enter the stock market and/or buy precious metals for all the wrong reasons. As almost everyone here has suggested, do your homework and learn as much as you can. While you are looking to make money, make sure you can afford to lose what you initially put into stocks, bonds, mutual funds, and the like. Do not look to get rich quick or, for that matter, think you will instantly be able to draw an income from your investment choices. Remember, the idea is to invest for the future and not to gamble away your future. Wink

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 05-19-2012, 06:01 PM
#15
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Find out what everybody else is doing, then do the opposite.

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 05-19-2012, 06:32 PM
#16
  • Qhead
  • Member
  • Cleveland, Ohio
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(05-19-2012, 06:01 PM)CyanideMetal Wrote: Find out what everybody else is doing, then do the opposite.

Oh a contrarian! Nyuk Nyuk!

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 05-19-2012, 08:45 PM
#17
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(05-19-2012, 06:32 PM)Qhead Wrote:
(05-19-2012, 06:01 PM)CyanideMetal Wrote: Find out what everybody else is doing, then do the opposite.

Oh a contrarian! Nyuk Nyuk!

Tongue

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 05-20-2012, 04:03 PM
#18
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To JonJones84 -- I agree with Freddy. This is the time to think about retirement -- precisely because of your you age. Unlikely as it may now seem to you, doing nothing for decades is the best way to guarantee eating dog food in your retirement. If you wait until you are 50 or so (as many people do), you simply cannot save fast enough to create a comfortable next egg. This may now seem unlikely to you, as you probably expect your income to rise over the years, thus making saving easier. But it isn't that way -- your expenses go up too, and your tastes may trend from beer to champagne. An interesting statistic: Based on history (who knows about the future?) a person who invests $2,000 per year in an S&P500 index fund from age 20 to age 30 and then invests nothing thereafter -- will likely have $1,000,000 at retirement. Why? The power of compounding. Now I realize that many people will pooh-pooh the S&P500 index fund, saying that it is boring. Well -- what do you want: excitement and losses at the Wall Street casino, or an investment that grinds along and makes you rich?

For what it's worth, I am not an investment advisor -- just a regular guy with opinions. Food for thought. Good luck.

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 05-20-2012, 05:41 PM
#19
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(05-20-2012, 04:03 PM)slackskin Wrote: To JonJones84 -- I agree with Freddy. This is the time to think about retirement -- precisely because of your you age. Unlikely as it may now seem to you, doing nothing for decades is the best way to guarantee eating dog food in your retirement. If you wait until you are 50 or so (as many people do), you simply cannot save fast enough to create a comfortable next egg. This may now seem unlikely to you, as you probably expect your income to rise over the years, thus making saving easier. But it isn't that way -- your expenses go up too, and your tastes may trend from beer to champagne. An interesting statistic: Based on history (who knows about the future?) a person who invests $2,000 per year in an S&P500 index fund from age 20 to age 30 and then invests nothing thereafter -- will likely have $1,000,000 at retirement. Why? The power of compounding. Now I realize that many people will pooh-pooh the S&P500 index fund, saying that it is boring. Well -- what do you want: excitement and losses at the Wall Street casino, or an investment that grinds along and makes you rich?

For what it's worth, I am not an investment advisor -- just a regular guy with opinions. Food for thought. Good luck.

+1. Fill your life with excitement and your investment portfolio with boredom.

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