Easiest way to start investing in stock market...

Discussion in 'After Hours Lounge (Off Topic)' started by Paul_Fisher, Sep 30, 2003.

  1. Paul_Fisher

    Paul_Fisher Screenwriter

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    Hello,
    Does anyone have any advice for a 25 year old who wants to start investing in the stock market? Where is the best place to open an account?
     
  2. Mark Sherman

    Mark Sherman Supporting Actor

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    Id say look into some sort of real estate stock
     
  3. DaveF

    DaveF Moderator
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    That's a very broad question and can't be answered well without more information. Someone helping you needs to know your financial situation and financial goals.

    Here's a few general thoughts, anyway [​IMG]

    If you have no savings at all, don't even think about the stock market. Work on building your savings account, then investing in (risk free) CDs or money market accounts.

    If you currently do not invest anything for retirement, begin to do so. Contribute to your employer-provided 401k (if available) or open an IRA.

    If you've already got savings and investment under control and want to invest in the stock market for extra financial growth, then look into Mutual Funds from e.g. Vanguard.

    If your finances are in order and want to have some fun playing on the stock market then start an account with an online brokerage to buy some stocks with. To find a good place, check the reviews in the financial magazines. Compare things like the fees (buy, sell, account maintenance), minimum investment, and ease of use.

    For what it's worth, I've lost a few thousand dollars playing with individual stocks and I've watched my IRA track the stock bubble the past few years (up, then down). I now think buying individual stocks is an expensive hobby for the average guy and isn't smart finances for most of us.
     
  4. Paul_Fisher

    Paul_Fisher Screenwriter

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    I don't really have the money to "play" in the stock market. It sounds like the mutual funds will be a great place to start.

    Thanks Dave.[​IMG]
     
  5. Todd Hochard

    Todd Hochard Cinematographer

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  6. Joe Szott

    Joe Szott Screenwriter

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    Paul,

    WOuld be a good idea to contact a financial advisor and have them assess your goals. The good ones are like personal trainers or coaches. They don't do it for you, but they lay out what you need to do for yourself to get where you eventually want to be. Look for an advisor that either offers free initial consultation or one that doesn't directly work for a financial institution. For example, don't be surprised when the guy at Charles Schwab wants you to put it all in stocks [​IMG] I've used American Express (AMEX) financial services before to set up IRAs and 529 plans for my kids, they are pretty decent and low price/pressure.

    If you want to run your investments yourself, check out www.vanguard.com for mutual funds. Vanguard has tons of no-load low entrance fee index funds in everything from the Wilshire 5000 to real estate or bonds. I personally have a ROTH IRA that invests heavily in this fund: http://finance.yahoo.com/q?d=t&s=VTSMX. It tracks the US stock market as a whole, nothing fancy just good old retirement savings.

    Good luck and remember it should be fun not threatening to invest in your future!
     
  7. Eric_L

    Eric_L Screenwriter

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  8. Andrew W

    Andrew W Supporting Actor

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    I'll give you a list of all the stocks I own and you can short sell them. Might as well do someone some good....
     
  9. Jason_H

    Jason_H Second Unit

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  10. DaveF

    DaveF Moderator
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  11. Eric_E

    Eric_E Supporting Actor

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    Two words: INDEX FUNDS.
     
  12. Jason_H

    Jason_H Second Unit

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  13. Scott Merryfield

    Scott Merryfield Executive Producer

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    I also recommend looking for a good financial advisor. We did this almost 10 years ago, and it was the best financial decision we've made. A professional can help tailor an investment strategy to meet your goals and tolerance to risk, and also provide assistance with tax planning and preparations.
     
  14. Bill Griffith

    Bill Griffith Supporting Actor

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    OTC, I've made millions investing in OTC stocks or Penny Stocks.

    SLAP SLAP

    Oh wait no I've lost thousands, stay away from the OTC stocks.

    Best thing when getting into the market is to find some companies with a good track record strong financial base.

    Find a couple of stocks that you take a personal interest in and enjoy learning about. Like me, I like building computers so AMD (The people that make the Athlon computer chips, among other things) really interests me. So I like learning about them. Once you've learned about them if you think they have room to grow put your money into them.

    The key is finding something your interested in and know something about than do your research and determin if there a good investment.

    Never invest money that you need.
     

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