How do you get started?

[Frugal Nurse]

Hi everyone. I am new to the Market Talk board, but not new these boards in general. Anyhow, I just accepted a new job that comes with a significant raise. I would like to start investing in non-retirement accounts, but I have no idea where to begin. I don't like the idea of using a financial adviser, because it seems like they would have their best interest (profit) in mind, rather than my best interest.

I was looking at using e-trade, has anyone had experience with them? Also, what do you all look at in determining which stocks to purchase? I am looking to invest in mostly medium-risk types of stocks, and maybe a few high-risk ones.

[The Virginian]

Hi Frugal Nurse!

I use Charles Schwab.
$8.95 per trade - regardless of the number of shares bought or sold.
As to what to "Invest" in everyone on this board will have a different opinion as to that. I like Big name dividend paying stocks. I buy individual stocks directly on the Schwab account and control my own destiny.

Basically if you know the company and they are a house hold name it usually a safe bet. All my plays are for long term investments and I don't sell when the market fluctuates but may if I find out news I don't like about the companies future.

[decoy409]

frugalnurse, go back to the Main index here and SEE 'Rovo in 'Investing: Basics & Beyond'

He is a great caretaker for somebody in your position.

[Driftr]

frugalnurse,

I'd advise you to check out the Investing Basics and Beyond board. There are many investors over there and I think there are similar threads to this one. Many people will advise you to do some reading prior to starting your investing. You'll get a few of us over here at Market Talk that actually invest, but in my opinion the advise you'll get there will be more well thought out than here. If you want to be like me and Virginian and just plunk some money in a brokerage account and pick a list of 10-20 stocks to start investing in, give the dividend stocks thread a gander. If you want to get more into the technical side and really know what you're doing (I don't pretend to), you'll want to do what folks like rovo, yclept, and the more regular posters at IBB are doing. In my opinion.

[decoy409]

frugalnurse, when you read statements such as driftr above,let it go in one ear and out the other when they say things as above like,

"You'll get a few of us over here at Market Talk that actually invest, but in my opinion the advise you'll get there will be more well thought out than here."

These types are pre-conditioned or programmed. hate to see you going about things as I refer to as living on 'Fantasy Island.'

These types will also invoke fighting and look to seperate people very quickly.

READ-WATCH-LISTEN-ASK and form your own opinion/conclusion.

[maui1]

yep- put your new found money in something like a ing saving account until you educate yourself on what you hope to do.

don't make the mistake of learning from your mistakes........it does not have to be that way!

but if you are bound and determined, virgn- has some pretty good advice on big cap, dividend paying stocks.

[Deleted]

Welcome to the investing world

It does not have to be a frightening experience, if you follow a few basic rules

Warren Buffett is not well liked by all, but he does have a few great beginning investing lessons

1. Keep it simple (buy what you know) be it coke, pepsi, proctor & gamble, coach....find companies and products that you know and are easy to track
2. Buy companies with STRONG balance sheets
3. Buy companies with good track records of growth
4. Buy companies that have something that sets them apart (strong brand (coke) unique tech (apple)....you get the picture....
5. Watch for earth shattering news...and if something like BP happens, be willing to sell....or willing to ride out the storm
6. Be patient....the market at times favors some companies, and hates others....dont worry about the day to day pricing.....if the reason that you bought company x hasnt changed....KEEP IT

Profit....

[The Virginian]

Well put gdgyva!

[Driftr]

gdgyva has a way of explaining things so's even I can understand them.

[bimetalaupt]

Jul 8, 2011 15:45:54 GMT -5 @gdgyva said:

Welcome to the investing world

It does not have to be a frightening experience, if you follow a few basic rules

Warren Buffett is not well liked by all, but he does have a few great beginning investing lessons

1. Keep it simple (buy what you know) be it coke, pepsi, proctor & gamble, coach....find companies and products that you know and are easy to track
2. Buy companies with STRONG balance sheets
3. Buy companies with good track records of growth
4. Buy companies that have something that sets them apart (strong brand (coke) unique tech (apple)....you get the picture....
5. Watch for earth shattering news...and if something like BP happens, be willing to sell....or willing to ride out the storm
6. Be patient....the market at times favors some companies, and hates others....dont worry about the day to day pricing.....if the reason that you bought company x hasnt changed....KEEP IT

Profit....

gdgyva,
One other thing.. To get started you do not have to buy with cash you can buy on paper and follow the trends gdgyva talks about.. My mother showed by how to chart stocks by hand before I bought my first share of IBM or HNZ..

On IBB they do a stock pick of the week.. Most of the time it is some high beta ( very risky stock that moves more then the market) that wins that week.. Some times it is what is know as a leveraged ETF ( Exchange Traded Funds) that wins.. This is where you play the high risk game for fun..

Wish you the Best..Growth pays off over the years of bull and bear markets!!

Bi Metal Au Pt

[Deleted]

Thanks for the comments guys

I learned from others.....and made a lot of STUPID mistakes along the way

If i can help someone not make the same mistakes, it is a good thing

Bruce....wish i would have known then, what i know now.....but lessons learned the hard way, are not soon forgotten

Anyway...thanks again

[brdsl]

Probably not the sexiest advice, but put your excess funds in a index that mimics the s&p500 or Russell 2000 and a bond fund. The split will depend on your tolerance for risk vs. reward.

Yeah, boring...I know, but a lot of wealth has been built in that simple method.

If interested in trading single stocks, you will need to devote quite a bit of time to be successful.

[mtntigger]

I too encourage you to look into IBB.
One thing I learned from there was that the taxable account is more for long-term investments (or at least in the beginning), that way you don't have to deal with taxes every year. If you want to trade, you can do that in your 401K or equivalent and your ROTH accounts.
So, if you are doing long-term investments, you probably want to go to an inexpensive broker, like e-trade (at least for now). Other inexpensive brokers include OptionsExpress and OptionsHouse ($3 something/trade); both of these allow you to do virtual trading (which Bruce recommended).

The Stock Pick of the Week is great! It's a challenge each week to try to figure out what the market is going to do, plus the guys there make it fun. Bruce is playing for the first time in a long time this week. ;D

I totally agree with gdgyva's advice on buying what you know. The biggest "losers" in my portfolio right now are from my more-or-less blindly taking advice from others (all my fault, I should have researched/studied things more), while the stocks that I follow because I believe in their companies are doing the best.