Investing and Stocks

[Starflyer]

I am really looking into investing about $2000 into stocks. Apple will be one of them. Does anyone have any other stocks that have worked for them? I will probably hire a broker, as I have little knowledge about investing.

What advise or tips can you give me?

 

[emw]

Wouldn't this discussion fit here?

 

[WildCowboy]

Note that paying a broker to give you advice and splitting your $2000 amongst multiple stocks will likely mean that your commissions will eat into a good portion of your investment, leaving you in a not-insignificant hole that you'll have to climb out of before you even start making money.

I typically recommend a minimum $1000 investment per stock when buying through any of the online brokers that charge ~$10/trade. You won't get in-person advice from them, but they do have some decent tools to help you research the stocks.

And the most important thing is that you buy stocks for the right reasons. Don't buy Apple just because you like Macs or iPods. Buy it because you've researched their financials and believe that the stock will rise. Take the time to learn about investing in individual stocks...a little education goes a long way.

Wouldn't this discussion fit here?

I'm inclined to leave them separate for now, since one is asking about investments in general and this one is specifically asking about stocks.

 

[slu]

Get a broker and do your homework. And if you do not know the basics about the financial markets, learn those as well. Getting financial advice from a computer enthusiast message board is not wise.

Good luck.

 

[Doc69]

With only $2000 to invest, and a limited to almost no knowledge of the stock market, the most sensible thing to do would be to invest all of it into a broad mutual fund. With broad I mean one that has stocks from various different countries and different sectors. Preferably you would also add to this portfolio on a monthly basis. This could be done through a 401K plan or an IRA account if you want to save for your old age.

If you can afford to gamble a bit with your money, you can pick a few high risk stocks, like Apple or China Mobile etc. That way, you have a chance of a higher return, but of course, it's also a bigger risk.

If I were you, as I assume you're a Mac fanatic as well, I would just open an E*TRADE account and purchase Apple stock for the whole $2000. I think Apple has a great future, and as a Mac fanatic you will have a tremendous joy following the ups and downs of the Apple stock. And you can always sell at any time you feel you are risking your savings. I have quite a large holding in Apple myself, and so far my Apple stocks are up about 45% from last year!

Most analysts agree that 2007 will probably be a pretty good year for the stock market. They talk about gains from 10% to even 40%. So this is a good time for you to start getting into the stock market. And don't forget to put some money in every month. That'll make a huge difference in 20 or 30 years!

 

[SMM]

I would not do too much until you educate yourself a little. I like the posters suggestion of using an E*Trade account, rather than a broker.

If you are looking to begin a long-term retirement account, this is how I would proceed.

1) Put your money into the best CD you can find. Right now, you can get ~5% for 6-12 months. That gives you some time to figure some things out and your money is earning something.

2) Next, if this is post-tax money, you can probably qualify for a Roth IRA. Roth's are nice because you pay the tax up-front. All of the capital gains are tax free. It takes a little work to set these up, but nothing significant. You do not want to put post-tax money into a standard IRA.

3) Get an account with a discount brokerage firm. Transfer your money there.

4) Learn the fundamentals of investing. Do not think about making a quick killing. The markets are full of sharks who would love to see your $2K in their account. Look at investing as a long-term strategy.

5) Continue to add something to your retirement every payday. Soon, you will become used to living on a smaller budget and will not even notice the difference.

6) Finally, only speculate on high risk/high reward investments when you can afford to lose it.

 

[smedbedder]

Stock tracking and charting

Don't know if this is the right forum, but:

I'm an Imac/Intel (OS X Tiger) newbie--just purchased.

When using my Wintel machine, I am very happy using Medved's Quotetracker to keep track of, and chart, stocks, largely because it is feature rich and free--a winning combination. Unfortunately, it does not run on a Mac.

Is anyone using a comparable product for the Mac that they are happy with? Or even on that is only moderately expensive?

TIA.

 

[Kirtus]

I too am looking to do some investing. I am looking for an online broker who's tools all work with a mac. Anyone know of one? I can tell you for sure that TD Ameritrade does not I asked.

 

[johnee]

SMM is right.

You really need to answer what your goal is when investing this money. Obviously you want it to grow big and fat, but is it for retirement? Is for a child's college fund? Will you need this money to be liquid (take it out of the investment to spend) in a year or two?

Depending on your goal for this money, certain investment options will drop away.

I would suggest scouring the internet for tutorials on investing, not just one or two sources, many.

And don't use a broker, open an account at etrade or scottrade or tdwaterhouse. you'll pay less commissions and have less pressure to buy something from a broker so he will get money. with a little research, you can find great companies to invest in.

 

[lhawkins]

I've also become interested in the market recently. I don't really need advice, but was wondering if anyone has any experience with OptionsXpress ( http://www.optionsxpress.com/ ) as opposed to Etrade, Scottrade, etc...?