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 Post subject: Stock Market Talk
PostPosted: May 4 12, 8:06 am 
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-go birds
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Joined: February 5 10, 9:54 am
Posts: 29129
I'm looking to jump into the stock market but I'm a total noob. How should I tackle it?

Is anyone buying Facebook? I see that shares are projected to go for $35-$41 a pop. To me that doesn't seem worth it unless they can come out with some sort of cutting edge product. But then again what do I know.

I realize some of you probably make a living giving this type of advice so feel free to ignore if that's the case. I just haven't seen a topic of this sort being discussed.


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 Post subject: Re: Stock Market Talk
PostPosted: May 4 12, 8:13 am 
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Puppy Murderer
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Joined: April 25 06, 6:07 pm
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Location: Across the River
What are you trying to do by investing? Start building a retirement nest egg? Play around with some extra cash to see if you can make a couple bucks?


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 Post subject: Re: Stock Market Talk
PostPosted: May 4 12, 8:16 am 
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-go birds
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Joined: February 5 10, 9:54 am
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A little bit from column a and a little bit from column b.


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 Post subject: Re: Stock Market Talk
PostPosted: May 4 12, 8:39 am 
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Seeking a Zubaz seamstress

Joined: September 4 07, 1:48 pm
Posts: 23727
Location: St. Louis
Besides just type of investment and markets - look into fees for mutual funds, and fees in 401Ks

Went to a seminar about the fee disclosure requirements for all the layers of fees buried in 401K plans. Sounds like it will be eye-popping in some instances, the amount and % of fees.

The 401K has been a boom for the money handlers. undoubtedly that is why wall st keeps pushing politicians to get after the pension funds -more money for them to skim from.


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 Post subject: Re: Stock Market Talk
PostPosted: May 4 12, 8:51 am 
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Hall Of Famer

Joined: April 18 06, 7:38 pm
Posts: 20035
Two important words: compound interest
Two more important words: dividend reinvestment


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 Post subject: Re: Stock Market Talk
PostPosted: May 4 12, 8:52 am 
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Hall Of Famer
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Joined: October 12 06, 2:21 pm
Posts: 16356
Location: Baseball Ref Bullpen
OK - I was a noob in 1997 and it took me about 6 years to get to a point where I was not losing money. The last 8 years I am averaging 8.5% returns. In a zero-interest-rate world, I'll take those. They even have beaten just about all the major indexes both stock and bond. Here is what I've learned (worth exactly what you are paying for it)

1. Don't try to make all your money on one or two positions. Diversify.

2. Compound interest, while not sexy, is your BEST friend. Learn it, live it, love it. In your 20's and 30's the interest you earn from good, sound companies with long dividend histories will be like watching paint dry. Stick with it and in your 50's and 60's, your interest earnings will far exceed your capital gains. Completely blow them away.

3. Stay away from the siren call of buying on margin. Slow and steady wins the investing race. If you are not into stocks for the long haul, you are just playing the casino - and remmeber that the house always wins.

4. Have a plan before you buy and stick to that plan. If you are buying a good company for the long haul, don't sell on the first -5% day. If you are buying for a trade and it hits your price target - either high or low - sell and don't look back.

5. I have found there is a lot to be said for the old saw "Buy when there is blood in the streets and sell when the party is loudest." My best buys have been when I was scared stiff about the market. I can't tell you the number of times I wish I had sold but didn't because the stock had just soared.

6. A corollary to number 5: "sell when you can, not when you have to". If you make 20-25% in a stock and your goal was 15-20%, get while the getting is good! Because if you wait for that next 5% it could be forever.

7. The market fluctuates. Get used to it. Do not live and die by daily/hourly/every minute updates.

8. Compound interest, while not sexy, is your BEST friend. Learn it, live it, love it.

9. Did I mention compound interest?


Last edited by Joe Shlabotnik on May 4 12, 8:54 am, edited 1 time in total.

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 Post subject: Re: Stock Market Talk
PostPosted: May 4 12, 8:52 am 
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-go birds
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Joined: February 5 10, 9:54 am
Posts: 29129
So are they supposed to disclose ALL fees?


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 Post subject: Re: Stock Market Talk
PostPosted: May 4 12, 8:57 am 
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Joined: October 12 06, 2:21 pm
Posts: 16356
Location: Baseball Ref Bullpen
I find I made better money picking 10-20 good, sound companies and sticking with them. I don't pay the mutual fund fees, and sleep just as good at night.

Your mileage may vary.

Also, if you want the thrill of the hunt and want to trade some stocks take 15-20% of your money and play with that. Never trade more than you can afford to lose. You will be forced into selling at the wrong times more often than not.


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 Post subject: Re: Stock Market Talk
PostPosted: May 4 12, 9:01 am 
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-go birds
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Joined: February 5 10, 9:54 am
Posts: 29129
All good stuff--thanks y'all.

What I've gotten so far:

- Compound interest is good
- look into fees
- don't have a quick trigger finger
- turn $1 into $2, $1000 into $2000. Easy peasy lemon squeezey

Is there any good reading material that anyone would recommend? Thoughts on motley fool and Cramer?


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 Post subject: Re: Stock Market Talk
PostPosted: May 4 12, 9:03 am 
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Hall Of Famer

Joined: April 18 06, 7:38 pm
Posts: 20035
go birds wrote:
All good stuff--thanks y'all.

What I've gotten so far:

- Compound interest is good
- look into fees
- don't have a quick trigger finger
- turn $1 into $2, $1000 into $2000. Easy peasy lemon squeezey

Is there any good reading material that anyone would recommend? Thoughts on motley fool and Cramer?


Read everything.

I'd also recommend a Roth IRA for you...look into that.


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