Anybody dabble in stocks? I'm interested in investing and I'm wondering if anyone here has some experience with it. I had some years ago, but sold them to buy a house, get married, etc. Those stocks were inherited, so I had nothing to do with any of it really, so I'm pretty ignorant when it comes to starting off and staying on top of things. How do you get started? What are some things to look for and/or avoid? Any good websites to help a layperson? I love watching Mad Money, but most of the time, I've either never heard of the company they're discussing or wonder how they know if a company is doing well or not.
The Mad Money show is pretty funny...but that guy is basically looking for ratings. I probably wouldn't take much of his advice...especially since too many people do already which makes stock prices fluctuate like crazy every time he mentions one.
I just have a good mutual fund and the 401(k) through my work. It all depends on your situation...age, how much you want to invest, risk tolerance, etc. Basically you need to find a guy who deals with stocks and funds that you can talk to...they can help you out.
Oh, and Cornbread Maxwell is someone who does that stuff...I have asked him questions about it before.
The One, the Only, the Incomparable Mercer Boy. My My YouTube.
disgruntledjetsfan wrote:I dabble. I have quite a bit (for me) invested in stocks right now.
A few things you should know to get started:
1. DON'T put all your money in a couple of stocks. Spread it out.
2. Don't get greedy. If you have a stock that has netted you a lot of money, there is no need to hang on and see how far it can go, that is how stock market horror stories happen.
3. Don't get obsessed with checking your stocks, it will make you crazy. There is no need to do so more than once a week really.
I've heard that before and that'd be hard for me. I'm pretty inquisitive, so I'd have to practice the discipline of my curiousity.
Well at first you are going to be checking them out a lot, it is human nature. And I'm like you, at first I was obsessed with looking at quotes, i would be on yahoo all the time to see how my stocks were doing. Then it started driving me crazy. Eventually you will learn to leave it alone for a week or so at a time.
I've just had to start reading up on stocks as I've finally got a job with a 401k plan, and some of the basic principles I came away with from the basic info I was given:
1) Over long periods, risk decreases substantially in stocks. Think poker, over time skill outweighs luck, similar principle. Over time, stocks are pretty much sure things.
2) Foreign stocks are a lot more risky. They fluctuate more it seems, with higher payouts, but you've got to be able to shrug off losses.
3) You have to keep in mind inflation. If you take too much time to make money, you barely come out ahead of the inflation rate. A good stock portfolio shouldn't have be a problem here, but this seems a key reason why people will go for the riskier options.
(Anyone please correct me if the inferences I've made are wrong).