1 out of 1 members found this post helpful.
Did you find this post helpful?
Yes |
No
OK, I'll give it a shot. But not in-depth responses.
"I realize this is a blackjack forum, but I have benefited from other topics being discussed - like stock market stuff.
"However, I often find myself almost reading another language as you veteran stock market folks post your advice, etc. I know virtually nothing about mutual funds, bonds, futures, cryptocurrency, etc., but I have an extremely analytical mind. And I hear now is maybe a very, very good time to buy (certain?) stocks."
It may be early, but major indices are down 20% for the year and 25% from their recent highs, so many consider that buying at these depressed levels offers a good opportunity. And, while that's probably true, I'm not at all sure that the pain is over.
"So, more specifically, can you recommend to me maybe an online beginner's stock market primer or resource (e.g., an informational website or YouTube video created by someone you really trust)?"
Investopedia is quite excellent. Go here: https://www.investopedia.com/article...invest1000.asp
"Some questions (that I realize are extremely basic) I have:
"1) Can stocks be bought or sold for free?"
Virtually. Major online brokers like Vanguard, Fidelity, Charles Schwab, TDAmeritrade, and ETrade all offer transactions at little or no cost.
"2) What are some good sites? Is Overstreet one? (I think they emailed me ownership in one share of Groupon or something.)."
Not bad; https://www.forbes.com/sites/steveschaefer/2016/01/05/10-things-you-absolutely-need-to-know-about-stocks/#66f722563f57
https://www.thestreet.com/topic/47701/how-to-invest-in-stocks.html
"3) Can I begin VERY small, like with $100 or so, and maybe buy a small amount of stock in 4-5 companies in obvious? (considering the virus) companies like FedEx?, UPS?, biotech?, medical supply?, Amazon?, etc?"
Not really reasonable. It would not be even ONE share of some stocks. Current price of Amazon: $1,925 for ONE share!! Of course, that isn't typical. Even buying the index SPY ETF (exchange-traded fund of the S&P 500) would be about $260.
"4) Over the long run, can someone who is a newbie realistically make 2% or so per week by investing?"
So 100% return on your money every year??!! Er, NO!!!! Average annual return of the S&P 500 is about 6%. 8% with dividends. If you try to beat it by picking individual stocks on your own, you will almost certainly do worse. Every year, about 10% of mutual funds and hedge funds outperform the S&P. The rest fail dismally. You will fail, too.
"5) What is day trading? Why is it apparently so difficult?"
Don't even THINK about it. I won't even answer the question. Again, forget that it exists!
"6) Can shares be bought at, for example, 10 am and then sold later the same day for an extremely small profit? (Maybe this is day trading?)"
Yes, it is day trading. See above.
"7) What are some pitfalls or common mistakes newbies make, such as having unrealistic expectations?"
Well, with what you wrote above, you can put that at the top of the list!!
"maybe using certain poor websites?, not diversifying?, giving up too soon?, paying too much for trades?, acting out of fear?, trying to tackle high risk things? (like futures?), hiring a broker?, not hiring a broker? etc."
All of the above.
"8) Any final, not unkind words of wisdom/ recommendations for a very small-time newbie willing to learn and work hard and be patient to make lots of money slowly over the next 10 or so years?"
Invest what you feel comfortable with in the S&P 500 index. Do NOT pick individual stocks. Don't even try. Use one of the sites for which there are NO fees at all (currently Fidelity, Vanguard, and Schwab, for sure. There may be others). Then forget all about it and come back in ten years to see how you've done. :-)
Good luck!
Don
Bookmarks