Stocks, bond, and investing...?

Question

can anyone give me a scoop on how stocks etc. have worked for you and how much do you need to get started?

Answer 1

I started with $200,000 and have withdrawn about all of the original amount and have about $400,000 left.  Some years I've had big profits but in other years I've lost my shirt.

You will do well in a bull market with almost anything you buy, but will probably lose in a bear market no matter how good the companies you select are.

Answer 2

Here are some basic investing principles:

1. Do not chase past returns. People that buy funds or stocks because they have done well in the past are doing exactly that.

2. Do not market time. Market timing is buying based on your (or your newsletter, or your TV, or neighbor's) guess about what is going to happen in the future. Even if someone knows something, you've already missed the boat. The price already reflects what you just found out.

3. Use index funds. Over time, index funds outperform actively managed funds, mostly because they do not have those high expense ratios. Some actively managed funds do beat their index, but the ones that do usually do not do so consistently. So why gamble? Use index funds. If you want to use a few actively managed funds, make sure that the costs are very low. Vanguard has some good ones.

5. Diversify. Don't put all your eggs in one basket. Own a mix of bonds, domestic equities (large, small and mid cap funds), an international fund and perhaps a REIT (Real Estate Investment Trust) and emerging market fund.  Four to six funds is all you need. Know your risk tolerance and set up an appropriate asset allocation. Rebalance as needed.  

6. Consider taxes. Use the least tax efficient funds in your tax-deferred accounts and the most tax efficient funds in your taxable accounts.

You have a choice between gambling and investing.

If you want to learn to invest, go here:

http://www.saveyournestegg.com/diy.html

Answer 3

You should allocate about $1000 to start.  I use Izone by Ameritrade, 5$ a trade.  Try and utilize your own knowledge to select stocks as well as news sources such as yahoo finance, the street.com, CNBC and motley fool.

These days I suggest looking at steel, mining, coal, natural gas, oil and fertilizer stocks although I would wait a few days as they are in a blowback mode.

I generally suggest looking at sectors of the economy that are benefiting by ST to LT economic outlooks and selecting appropriate investments within those sectors...

Answer 4

You only need about $1000 to start with most brokerage firms. The markets have been doing quite badly lately but that is a good thing if you are looking for good stocks that are undervalued. I would look at financial stocks since they have taken such a beating. However, if you are going to be looking at your positions (stocks) every second and you are going to be worrying about the price fluctuations all day investing in stocks is going to drive you mad.

The best advice i can give you is to invest in only what you know and do your research. That means keeping up with all of the news and financial data for the company.

Answer 5

Stocks have worked ok for me. I guess over the years I have earned around 13%.

A minimum to start? The total amount of the stocks you want to buy plus the commission.

I started with $500 on Ameritrade. They charge $9.99 per trade. Scottrade charges $4 per trade. Full service brokerages can charge anywhere from $10 to $100 per trade.

To learn more try the Motley Fool website (www.fool.com)