Post: #1

Hi there,

I want to get into investing in stocks, ETFs, currencies, etc. Problem is, I know ZERO about how any of this stuff works. I created an account on Ameritrade, how much should I put into it? In general, where do I start off?

Post: #2

Don't start off with real money.

There's a couple good training resources out there for free. Start with those and practice trade for at least a year.

Can't tell you exactly what strategy to use. There are a lot of markets to trade in, and a lot of viable trading strategies. The only consistent variable is that if you try to hop in without enough experience to know what you're doing you WILL get your account cleaned out.

Post: #3

I am in advanced trading and derivatives at a brokerage firm, and I'd say find a strategy and/or technical indicators that work for YOU. Additionally, keep it simple and don't reinvent the wheel. I talk to a lot of beginners and find one thing in common: they all want to make things more complicated than they need to be. An example: Joe Schmo wants to place a bracketed order on his $1,000 Penny stock position. Sell it if you want to sell, and buy it if you want to buy. Trade like a robot. Don't get greedy. Don't get emotional. Look into trading options. This is a HIGHLY regulated industry, so don't be afraid to call and ask your broker questions whether it is proactively or retroactively. Lastly, trading with real money is much different than paper trading, so don't get a big head if you double your account value in a month on a paper account and think you can play with the big boys... You made a dollar in profit? Lock that shit in.

Post: #4

1) Don't do it. You'll be virtually certain to lose money and or underperform. Just invest in broad ETFs.

2) Paper trading is worthless. Completely. When you're losing real money you WILL act differently.

Post: #5

Your thread title says trading, but your post text says investing - there is a huge range of psychological differences and analysis factored into both of these strategies.

Personally, I have stayed away from trading because it takes lots and lots of time looking at charts, knowledge and practice simply to break even.

However, I love investing. I keep a good portion of my portfolio allocated in US and foreign index funds to minimize risk, a very small bit in gold, a good amount in cash, and 30% of my portfolio I use to play around with stocks I think may have high upside potential. I don't invest in bonds.

If you want to get started in investing, I really recommend you begin by reading about the "bogleheads" investment philosophy - the philosophy is built on the idea that success in the market comes from putting your money in low-risk and low-fee index funds that distribute your risk among multiple industries. This is the best place to begin your investing journey - start by understanding the three-fund portfolio concept described here:

https://www.bogleheads.org/wiki/Three-fund_portfolio

Also, lurk on the bogleheads.org forum here: https://www.bogleheads.org/

Start listening to the Frank Curzio podcast, here : http://www.frankcurzio.com/ (lots of great ideas about the stock market).

After you have a relatively good amount of money stashed in your three-fund portfolio you can look into other stuff. TBH I've lost a lot of money by picking individual stocks (and also made a lot). Right now, Ive probably just broken even. My index fund portfolio, however, is performing much much better.

Post: #6

(11-09-2016 06:17 PM)DonnyGately Wrote:  1) Don't do it. You'll be virtually certain to lose money and or underperform. Just invest in broad ETFs.

2) Paper trading is worthless. Completely. When you're losing real money you WILL act differently.

Hence why I say practice for a minimum of a year not "practice until you're winning".

There is a somewhat intuitive sense about this that can only come with practice. The other rule is don't gamble with any amount of money you can't afford to lose. If you do the fear will kick in and even the best trading strategy won't help you. Emotion has no place in trading.

Post: #7

Agree with the above. Don't blast into "trading" without zero knoweldge. Stay away from single company shares and currencies especially. You'll get your hands burnt and are more lilely to lose money. If you were really determined to do this you would develop your own in house system and refine it over a few years and use fictional money. Only once you were confident you had the correct stratergies and techniques would you then plough your own money in.

Presuming you don't have the time to do this but have some money which want to turn into more money and can't because you get fuck all interest at the banks then sign up to an investment shop with low rates. Then explore the vanguard funds. The vanguard 20 is great for 2 years of investment, vanguard 40 for 4 years etc. until vanguard 100 for 10 years. That is you would put money in for 10 years to pretty much guarantee growth. Once invested get on with your life and come back at the right time to review.

Post: #8

Can anyone recommend reading on the Vanguard products? They seem like the safest, lowest-mental-effort option for investing.

Post: #9

(11-11-2016 07:49 PM)churros Wrote:  Can anyone recommend reading on the Vanguard products? They seem like the safest, lowest-mental-effort option for investing.

vanguard.com
bogleheads.com (including the forum)
morningstar.com

Post: #10

Is it possible to beat the market in the long run?

"Renaissance's main fund, Medallion, earned 39 percent per year on average between 1989 and 2006"

https://en.wikipedia.org/wiki/Robert_Mer...sinessman)