Stocks for dummies! help!?

Question

I'm new to the whole investing world. I've done a little bit of research of stocks, but it's all so complicating. everyone that gets it says its so easy, yes i know. I know the purpose is to buy low and sell high but that cant be it, can it? i go and purchase a stock then sell when its high, then repeat the process?? thanks for any answers.

Answer 1

check out this site

daveramsey.com

I've lost quite a bit dabling in the stock market:

Answer 2

Forget stocks. That's how people LOSE money. They way underperform the market according to study after study. It is NOT easy and that's why there is ONE Warren Buffett.

Buy index funds.

www.saveyournestegg.com

"I never have the faintest idea what the stock market is going to do in the next six months, or the next year, or the next two." Warren Buffet

"If I have noticed anything over these 60 years on Wall Street, is that people do not succeed in forecasting that's going to happen to the stock market." Benjamin Graham

"Market-timing is bunk." Pat Dorsey, Director of M* Fund Analysis.

"The market timer's Hall of Fame is an empty room." Jane Bryant Quinn, Author, Columnist

"Market Timing is a poor substitute for a long-term investment plan." Jonathan Clements, Wall Street Journal

"No, I don't believe in market timing. I've been around this business darn near a half-century, and I know I can't do it successfully.-- In fact, I don't even know anyone who knows anyone who has ever successfully timed the market over the long term." Jack Bogle

"Market timing is an ineffective strategy for mutual Fund Investors." CDA/Wiesenberger

"Nobody but nobody, has consistently guessed the direction of the bond or stock market over any meaningful length of time." John Markese, President, AAII Journal

"I've learned that market timing can ruin you." Elaine Garzarelli

"Among the 160 or so newsletters the HFD monitors, the market timing recommendations of only 10 have beaten the stock market over the last decade on a risk-adjusted basis." Mark Hulbert 1-18-01

"As you can probably sense, we're not keen on market-timing. It just doesn't work." Morningstar's Course 106

"Over a 12.5 year period, 224 of 237 market timing newsletters went out of business." indexfundsadvisors.com

"I'm a strong advocate of buying and holding." Charles Schwab

"Buy and hold is a very dull strategy. It lacks pizzazz and doesn't inspire much admiration at cocktail parties. It has only one little advantage: It works, very profitably and very consistently." Frank Armstrong, Author

"For most investors the odds favor a buy-and-hold strategy." Carol Gould, New York Times

"There is absolutely no evidence that anyone can time the market." Bill Bernstein

"Some people in the popular press talk about 'getting into' a bull market and 'getting out of' a bear market, but it is all marketing hype." Rick Ferri, Author

"Only liars manage to always be 'out' during bad times and 'in' during good times." Bernard Baruch

"There is an overwhelming body of evidence to support the view that believing in the ability of market timers is the equivalent of believing astrologers can predict the future." Larry Swedroe, author

"Don't trade in and out of funds. Stay invested.-- Not only does buy-and-hold investing offer better returns, but it's also less work." Eric Tyson, author Mutual Funds for Dummies

"Timing the market is for losers. Time IN the market will get you to the winner's circle, and you'll sleep better at night." Michael Leboeuf, author, "The Millionaire in You"

Answer 3

The previous commenters haven't a clue.  

It really isn't complicated.  It's hard, because you have to do your homework.

There are many hedge funds and successful private investors that make money timing the market, including me.

Index funds, sold by the distributor don't charge commissions.  ETFs have expense ratios, just like non-exchange traded funds.

Go to the bookstore and the library and read everything.

Answer 4

Stock is an ownership interest in a company, also known as “shares” in a company. When you own stock in a company, you are a shareholder and may be entitled to receive dividends if the company is profitable.

If you are new to the stock market, some research is necessary to be done on your part.

Try the below url:

http://www.sogotrade.com/help/faq.aspx.....

For New visitors, it has extensive information available like:

How do I get started?

How do I fund my account to buy stock?

and Investing section gives information like:

How does the stock market work?

What are the risks and advantages of investing in the stock market?

How do I choose what to buy?

What are some tips for beginning investors?

The following tutorials might be helpful to you:

Definitions: http://www.sogotrade.com/Help/Glossary.a...

http://ezinearticles.com/?Stock-Investin...

http://ezinearticles.com/?Things-to-Know...

http://ezinearticles.com/?How-To-Buy-Sto...

Answer 5

Index funds can be good, but they're not all equal.  Plus, you are still paying commissions and MER fees on them.  If you're going to do the basket thing, at least buy an ETF.

But you don't have to lose money in stocks if you pick solid dividend-paying growth stocks like some banks and obvious no-brainers like the potash stocks.  It's risky only if you haven't done your research.  The more reading you do on it, the more you'll see what you're really interested in, and you can go from there.  There is no one correct answer, except maybe, don't do mutual funds.... they'll suck you dry with their MERs.

MoneyEnergy

http://www.getmoneyenergy.com