Learing Stocks

[lilrhinotx]

I'm always looking to gain information on investing some of the little money I have. For instance, I feel instead of buying a audio system for my car why not use that 200 or 300 usd and put it into some stock. I know a little about the stock market but not much. I rather gain info and start off slow. I dont really have too much money to spend as it is. Is there advise somebody can give me. I was watching msnbc, and CVP and CSK was some stock predicted to grow. Should I really consider putting my money into stock or other investment avenues.
Thanks,

[Gaulkin]

The best place for the average investor is in a solid mutual fund. If you have the time to trade then read a fews books and get out there. The number one thing to remember is never give up, the market is a tough place to be, it will eat you alive if you let it (emotionally that is). It takes at least a year if not more to get the hang of it and start to make money. If you have the drive and you like the thrill of it you'll go far.

[lilrhinotx]

Thanks man, basically in a nutshell. What exactly is a mutual fund? I have a brokerage account, along with my saving and checking accts. Im about to read about the mutual funds, but what can you tell me and has it been profitable for you or the people you know?

[Gaulkin]

Stock market has been great for me, especially oil. A mutual fund is a front for a money manager, you put money in the fund and he picks the stocks. If you want a amazing fund you can check out cgmfx.

[Doodyps]

I have about $10k in the stock market right now. ITs been there for a few months and I've had mixed success. I'm mostly in oil and natl gas, but because I've been greedy and trying to make the most of short term trades, I've ended up losing money. I'm just not experienced enough yet. If you are going to play the stock market, make sure you're in it for the long haul. It really itsnt much different than casino gambling when youre playing sepcific stocks. If you are going to start off small and continure saving, open up a scottrade account or something that has cheap commissions so you can add $50 at a time. If you want to do a mutual fund or something, stick with an equity index. Find a fund that mimics the overall economy, because all those funds with managers that hand pick stocks are a waste of time. At best, they can beat the overall economy by something like 3%, but its not uncommon for them to underperform the economy by 17% or worse. At a time like now, you can buy into an equity index at 2006 levels, so its a bargain. You won't see huge returns, but if you continue to add money to it and leave it alone, you will get almost gaurenteed strong growth, unless capitalism fails, in which cause we will all have bigger problems.

I guess, point being, if you pick a single stock, you are risking it all, and you will want to be able to leave the money in there for a while if it goes down. You havent lost money until you sell, so it can always go back up, just dont panic and sell. If you go the fund route, which if you are young and disciplined, I would recommend, definatly find an equity fund. Maybe an IRA if you get a chance.

[Gaulkin]

I have about $10k in the stock market right now. ITs been there for a few months and I've had mixed success. I'm mostly in oil and natl gas, but because I've been greedy and trying to make the most of short term trades, I've ended up losing money. I'm just not experienced enough yet. If you are going to play the stock market, make sure you're in it for the long haul. It really itsnt much different than casino gambling when youre playing sepcific stocks. If you are going to start off small and continure saving, open up a scottrade account or something that has cheap commissions so you can add $50 at a time. If you want to do a mutual fund or something, stick with an equity index. Find a fund that mimics the overall economy, because all those funds with managers that hand pick stocks are a waste of time. At best, they can beat the overall economy by something like 3%, but its not uncommon for them to underperform the economy by 17% or worse. At a time like now, you can buy into an equity index at 2006 levels, so its a bargain. You won't see huge returns, but if you continue to add money to it and leave it alone, you will get almost gaurenteed strong growth, unless capitalism fails, in which cause we will all have bigger problems.

I guess, point being, if you pick a single stock, you are risking it all, and you will want to be able to leave the money in there for a while if it goes down. You havent lost money until you sell, so it can always go back up, just dont panic and sell. If you go the fund route, which if you are young and disciplined, I would recommend, definatly find an equity fund. Maybe an IRA if you get a chance.

Id like to point out that CGMFX is managed by a manager and returned 69% last year so your wrong in saying there a waste of time.

[rogercbryan]

$200 will not get you far in the market. Think of it like this... if you double your money in six months after fees... your $200 would be $380. You could have taken that money and used it in other business ventures that would have greater potential.

If you are looking to invest a small amount and you have a high risk tolerance (your willing to loose it all at a chance of making 10xs your money) then I would recommend option trading.

Its all relative to your risk tolerance and available capital. I've never done good with options... but I no longer buy stocks either... its more like gambling then investing

[Doodyps]

well ask warren buffet what he thinks of managed funds. I checked out yours. Its a great fund to be in, but I would hardly call it a bargain. Its enjoyed high oil prices and the ag-boom for some time it seems. If you have 200 and you continue to save and invest in the same fund, you want to buy something thats almost a guaranteed winner, not something that could be at the top of its game. And I could be wrong, oil and potash ect may not have topped out, but I'm not putting new money into either until next spring. However, you can bet that over 5 years or more, you will see a great return on and index following the S&P 500. Anyway, unless you are planning on continuing to add savings to this fund, its not really worth it with so little to start. You can try trading small cap and penny stocks. I have 850 shares of a tiny prospective oil company with leases in Alaska, the north sea, and kansas. They haven't produced anything and arent supposed to drill their first well until this August, but I'm hoping for some good things. It could be years before they produce anything if they ever do, so its risky, but its trading at 2.25 so at least you can afford some shares. I would wait though and just keep saving. The stock market is really messy right now. Just watch some cnbc for a while and read up on everything, so that once you have 500 you know what to do with it. Or try a business venture, just dont get ripped on on some pyramid scheme or seminar.

[n/a]

if you do get into stocks look at some solid companies to invest with. Vanguard has a very solid selection of ETF's and mutual funds. Vanguard offers one of the lowest expense ratios (what fund managers charge for there services) than most out there. I used to work for them so I know its a solid company. They used to have a plan where you can sign up and put as little as 100 a month into a fund. But you may need a little more than that to initially invest. There is so much to tell you and much to learn about this! Might be good to head to the bookstore and pick up a good book about economic basics and how to read income statements. But then again if you dont want to go too crazy just pick up a good book on investment basics (any suggestions from others?)

[Aletheides]

Right now stocks are going to shit, invest commodities.

[Gaulkin]

well ask warren buffet what he thinks of managed funds. I checked out yours. Its a great fund to be in, but I would hardly call it a bargain. Its enjoyed high oil prices and the ag-boom for some time it seems. If you have 200 and you continue to save and invest in the same fund, you want to buy something thats almost a guaranteed winner, not something that could be at the top of its game. And I could be wrong, oil and potash ect may not have topped out, but I'm not putting new money into either until next spring. However, you can bet that over 5 years or more, you will see a great return on and index following the S&P 500. Anyway, unless you are planning on continuing to add savings to this fund, its not really worth it with so little to start. You can try trading small cap and penny stocks. I have 850 shares of a tiny prospective oil company with leases in Alaska, the north sea, and kansas. They haven't produced anything and arent supposed to drill their first well until thisAugust, but I'm hoping for some good things. It could be years before they produce anything if they ever do, so its risky, but its trading at 2.25 so at least you can afford some shares. I would wait though and just keep saving. The stock market is really messy right now. Just watch some cnbc for a while and read up on everything, so that once you have 500 you know what to do with it. Or try a business venture, just dont get ripped on on some pyramid scheme or seminar.

Oil is simple supply and demand, no one is doing anything about it and therefore its going higher.

[Doodyps]

Oil is simple supply and demand, no one is doing anything about it and therefore its going higher.

Oil tops out in the summer every year, and if congress votes to open up drilling, and demand continues to be destroyed via lowered fuel subsidies in China, India, and Pakistan, as well as in the US where demand for gasoline has dropped 5% in recent months because of rescesion fears, oil will not continue to go up. You're right, it is simple supply and demand. Just look and the supply and look at the demand. Summer will be over soon, demand for gas is always highest in the summer. DO NOT BUY oil now unless its on news from Iran or a hurrican in the oil producing regions of the Gulf. Last weds., oil stocks went up 3 million barrels in the US because of extra supply from Saudi Arabia and less demand from China and the US. Since last weds, oils has gone from around 144 to 129. Nat'l gas, where most of my money is, is down 25% from over 13 to just over 10 right now. Nat'l gas is low, oil is still a tad high. Oil should be around 85-100 a barrel. That's what the oil companies want, and thats what we'll eventually reach. Sure, in 10 years youre bound to make money on it unless the dems outlaw electricity, but it would be absurd to buy right now. You look for bargains so you can hold on for a while. The DJ and S&P are bargains right now. I'm not saying that they cant go lower, but they are indices so they wont go out of business and in the long run will guarentee gains

[Gaulkin]

Oil tops out in the summer every year, and if congress votes to open up drilling, and demand continues to be destroyed via lowered fuel subsidies in China, India, and Pakistan, as well as in the US where demand for gasoline has dropped 5% in recent months because of rescesion fears, oil will not continue to go up. You're right, it is simple supply and demand. Just look and the supply and look at the demand. Summer will be over soon, demand for gas is always highest in the summer. DO NOT BUY oil now unless its on news from Iran or a hurrican in the oil producing regions of the Gulf. Last weds., oil stocks went up 3 million barrels in the US because of extra supply from Saudi Arabia and less demand from China and the US. Since last weds, oils has gone from around 144 to 129. Nat'l gas, where most of my money is, is down 25% from over 13 to just over 10 right now. Nat'l gas is low, oil is still a tad high. Oil should be around 85-100 a barrel. That's what the oil companies want, and thats what we'll eventually reach. Sure, in 10 years youre bound to make money on it unless the dems outlaw electricity, but it would be absurd to buy right now. You look for bargains so you can hold on for a while. The DJ and S&P are bargains right now. I'm not saying that they cant go lower, but they are indices so they wont go out of business and in the long run will guarentee gains

You make this oil thing out to be some recent issue. Oil has been a supply and demand problem for 30-50 years and since we haven't done one thing about it there is no way it is going lower. Eventually it will correct itself because demand will slow but it wont be for a very long time. That will happen or we will run out of oil because no one is doing anything to change this problem right now. Congress just wants to point fingers like its done for a very long time.

[StealYourDreams]

Oil is simple supply and demand, no one is doing anything about it and therefore its going higher.

If by supply and demand you mean speculation, artificially constrained supply and price fixing I agree.

[Gaulkin]

If by supply and demand you mean speculation, artificially constrained supply and price fixing I agree.

If you truly believe in that, your a total moron.