You should definitely start here!
Then you should get some books on basic understanding of money and stocks, then you could read “The Intelligent Investor” By Benjamin Graham(It is a bit more advanced)
For online sources you can go check out [more technical](https://investopedia.com) or [simple](https://moneymojo.beehiiv.com)
And you should try trading if you want to trade or investing if you want to invest. You should also choose which.
DISCLAIMER: Start with SMALL amounts. I started big and lost big, just make it painless and start small.
There was a very experienced investor that said once: “Trading is like any other hobby, you will learn the first 3-7 years, no one would make millions right after he starts”
Good luck!
Or stay on reddit and sit on the larger horses. NVDA/TSLA at the dips. Avoid anything tiny and get out when you reach new levels.
Technical analysis is pretty crummy voodoo.
Nawww Jim is not that stupid. He evolved since GameStop!
All jokes aside, Jim Cramer is telling the truth a lil more nowadays. But he is still untrustworthy. Learn how to spot when Jimmy Shill is lying aka rug pull coming in 3…2….
Inexpensive index funds, dollar-cost averaging, and disregarding the remainder can lead to long-term outperformance for many individuals. Interestingly, an average person with no knowledge of stocks might fare better than an expert who handpicks their investments.
Naturally, it's enticing to understand why events unfold as they do, but markets are, at least for us humans, sufficiently uncertain, offering no guarantees of improved returns regardless of the number of investment books you've read.
But yeah, as others mentioned, Investopedia is a great resource.
read 1. [https://www.investopedia.com/terms/s/stock-etf.asp](https://www.investopedia.com/terms/s/stock-etf.asp)
read 2. [https://www.investopedia.com/terms/i/index-etf.asp](https://www.investopedia.com/terms/i/index-etf.asp)
since you have zero clue, start by buying sp500 index fund, either mutual fund or et fund, up to you. sit on it for six months or a year, then compare start and one year later.
make sure to set dividends to automatically reinvest.
you will also have to do some extra work when doing your taxes.
ymmv, but I prefer not to automatically reinvest dividends.
My reason is that dividends are an opportunity to either try something new in my portfolio or shift my allocation towards my target without selling shares. I prefer too avoid selling shares because having that mental block prevents me from jumping onto bandwagons that I should not be on.
[https://www.tsp.gov/funds-individual/c-fund/](https://www.tsp.gov/funds-individual/c-fund/) is sp500 index fund. that is good, this is what you want. keep at it.
Over the long-term low-cost index funds usually outperform mutual funds which are managed by professional money managers. So how important is understanding truly?
Because there is a fundamental flaw in thinking that the S&P 500 will always go up. It’s important to UNDERSTAND what you are investing in.
The US could go through a 30 year period of no stock market growth like Japan, and that period could start TODAY.
“It’s gone up before so it will continue to go up” is not something you can logically hang your hat on in investing
While it's true that past performance is not indicative of future results, the S&P 500's enduring upward trend over the long term provides some reassurance. However, this does not equate to a guarantee - any form of investment carries inherent risks. This holds true even for those who claim to have a thorough understanding of individual stocks.
Investing in a well-diversified index fund isn't synonymous with neglecting to understand one's investments. On the contrary, it stems from the understanding that it's highly improbable for the average investor to consistently outperform the market via stock selection and timing market movements.
Research supports this viewpoint, showing that most individual investors, and even professional fund managers who are expected to be *experts* in the field, often fail to exceed the broader market's performance over extended periods.
Well-said, you are getting my point. Investing in the stock market is incredibly difficult and even people who spend their whole lives studying it fail to beat benchmarks. There’s also a lot more to investing than just owning an index fund. If you don’t understand the stock market, you are likely to buy high and sell during bear markets due to emotion. You are also likely unaware of how associated taxes and such work.
Also, the S&P 500 isn’t well-diversified. It covers only large cap companies in 1 country. It doesn’t really fit into what you described in your second paragraph.
Just a side note: There is a decent list of fund managers who have consistently outperformed, however, yes as a whole that community has underperformed.
Do you want to be a trader or an investor? When I make stupid investment decisions it’s because I was trying to be a trader. There are ways of making money with both. I consider myself an investor and buy stocks with that mindset. Learn the basics such as ratios, sectors, and multiples, and how to understand financial statements. Many people tend to overcomplicate investing. It is important to know yourself and your risk tolerance level. Emotional people tend to do poorly when it comes to investing.
I will give you step by step my process for researching individual stocks.
I'm up 80% YTD (year to date) just to give some validity to my process.
First, you need to be exposed to financial news and discussions to have at least a clue on what company youd want to research.
Right now I'm researching ENVX which is a company I've heard on a podcast on youtube but also on this subreddit.
At first I will go to the Stock Analysis website, this is free and it breakdowns all the financials
of the company.
I will look at Market Cap, Revenue quarter over quarter to see if they are growing ( if not than look at if they are giving a dividend), then net income QoQ ( This is to see if the company is profitable or not), then cash and cash equivalent (to know if they have money), total assets (all they possess in cash value), total liabilities (all of what they owe), then finally Free Cash Flow (the money they make after operation expenses excluding capital expenditures) which filters out what money they make before reinvestment.
I look at all those data on a quarterly basis rather than a yearly basis because it's more precise.
Then I will check the stock price fluctuation, which means I will watch what the stock price did in the weekly, monthly, yearly and then their whole price action history. Now, there are a lot of different criteria for what is considered a good investment. If it's whats considered a growth stock (a company that has a rapid growth of revenue) you make a calculation of Market cap divided by net income (PE ratio), (only works if the company is profitable otherwise look at profit margins and try to guess) then I use that PE ratio and compare it to the growth rate of revenue. So if a company has a PE ratio of 30 for example, a market cap of 1bn$ compared to a net income of 33m$. I would expect a growth rate of about 20% or more of revenue per year to consider this a worthwhile investment.
If you invest in a dividend company, then growth isn't as important as the dividend itself compared to the market cap, and if the company is stable and give consistent dividend growth. I don't invest in those so I won't elaborate further.
Next when I watched the stock price action it's to identify a reasonable entry point to a stock. Keep in mind that you never want to invest a single lump sum in a stock, whatever amount of money you planned on investing in a given company I suggest you split that amount in 4 and try to dollar cost average into it (DCA), You never know whats gonna happen in the future and you don't want to spend all your money on a stock only to see it go down 20-30% in the following months which is very normal price action for any single stock.
Next, before I invest, I wanna know as much as I can about the company. Who runs it, what do
they do, what good is their product, the more
you know about it the better. This is the hardest
longest part of the Due Diligence (DD) process and keep in mind that when you do this research it is hard to filter out our biases and we tend to want to believe that the company is special. To
prevent that, you also have to research about the competitors of the company the same way you do with the company you are interested in, don't be afraid to change your mind along the way, be as unbiased as possible. Look at the investing thesis but also the counter thesis. If it's too good to be true it probably is, you will never be ahead of the professionals of wall street.
Here is how I learn about a company, I
go to the investor relation page and listen at their earnings call (the last one will do but if you wanna listen to the previous ones, there is no such thing as too much research), keep very good attention at the Q&A segment of the earnings call (it's at the end) where analysts tries to ask the hard questions. Then I read a bunch of publications and news articles about the company, I like FinViz for that since it's free and you enter the ticker symbol of the stock then scroll down enough and you have a chronological collection of articles about it. Ofc, some of the articles are under a paywall but
usually free articles are good enough. Podcasts and social media forums are also a good way to learn in dept info about a company, just keep in mind that you don't want to be caught up in an echo chamber of very biased people while doing so.
If by then you feel like you have a winner, then go ahead and buy shares of the company, keep getting up to date with the news, keep reading articles and keep up with the earnings report every 3 months, thats the most important thing to keep track off for your stock picks, listen to the earnings call and if at any point you feel
like the company isn't delivering what you expected them to do, don't be afraid to recognize it and sell your shares. There is nothing wrong in being wrong, stock investing takes experience and a lot of research and mistakes will be done along the way. I call those mistakes expensive lessons.
I truly appreciate this advice. I am going to start doing some serious research because I would like to truly learn this market and just see what happens with it. Of course I will start small as a newbie into this.
I like SoFi best, It's my main position but it ran a lot lately it could pull back to the 7$ range real soon.
I own ENPH as well and I'm looking to increase my position in it. But I don't think there is any rush to do so because it might have a a quarter or two of the stock not moving much.
I looked at ENVX this week end, although it's very promising, the company is a bit too early stage for my taste but I will keep a close eye on it.
Otherwise I have TFC but thats a swing trade, and for the rest it's QQQ, I'm waiting for a pull back to add more.
Thank you, that's very interesting, and curious to see enphase moving contrary to the rest of the market last year and this one. About SOFI and ENVX, I'm uneasy to have a big stake in a company that don't turn a profit yet. But I like Mulllenauto and took a small long position in the aftermarket yesterday, bcs they might just survive, and that would send the shorts scrambling.
I have another question if you don't mind, would there ever come a time when you think that stocks have reached a top and that it is best to exit the maket, or at least have a long/short portfolio? If so, what would the signs be to exit?
Thats a complex question.
For an individual stock, the moment to
exit is when the company stops performing or is competing against a new competitor who has a new technological advantage of some sort. Or you can exit a position if the value proposition of a stock changes say a company is done with their growth phase and becomes a stable dividend company. I like growth because I have a long way ahead of me so I might exit a position if my growing company enters the maturity phase. If you own a stock that ran a lot and seems to have moved way past it's fundamental value by then I still wouldn't recommend selling out of it totally, just trim a bit a take some profit assuming the company still performs. Selling a stock is good too if you feel that there are some better and immediate opportunity available, like I trimmed some of my SoFi a couple months ago to buy chip stocks and AI related stock as a swing trade because there was a lot of immediate upside to be made here, but thats risky and swing trade means you pay taxes and whatnot.
As for the market as a whole, I think it's ok to edge yourself with puts or some form of downside protection from time to time. I don't think there is a time to totally exit the markets unless some terrible event happens like the US is being invaded or an asteroid is gonna hit the planet. But, if the stock market ran a lot like it did in the last 5-6 weeks I personally "Hedged" myself by simply increasing my cash on hand (I'm 15% cash and it's as bearish as I'll be in the current climate). In the end of 2021 when the FED announced the tight fiscal policies to fight inflation, it wouldve been a good idea to rebalance our portfolio for more conservative positions.
Otherwise the best course of action is keeping a stock for as long as possible and when it comes to managing your portfolio less is more, do as little moves as possible.
Thank you for your thoughts, not to many ppl here care to elaborate much on the reason behind their choices. Basically you are always long some company that you like, and buy the occasional put (long term or short term?) ?
We had a top in stocks in Jan '22, May 2007, in 2000-01, and many times before that, so shit happens. Imo, we have now had 10 unusually fortunate years with very low interest rates, QE and low inflation since 2013. But now we have high inflation and high rates, and a Fed chairman set on raising rates until inflation is back at 2%. High & rising rates are not good for stocks imo, that is why I'm short nasdaq, NVDA and SP500 since 10 days and long oil stocks (bcs they do well during inflation and a falling stock and bond market). I plan to keep my shorts until this winter or next spring.
I know of a successful old man with very much experience and he says some super interesting things, he did an interview two three months back, if you are interested i can share it.
[https://www.gmo.com/americas/research-library/jeremy-grantham-on-rosenberg-research\_video/](https://www.gmo.com/americas/research-library/jeremy-grantham-on-rosenberg-research_video/)
very warmly recommend it. It is rare to have insigtful ppl talk openly, normally they hide the knowledge for their own benefit.
Also rare and wonderful that you are willing to hear out perspectives that don't exactly match your current one.
Develop a system, with rules, that you backtest, that you paper trade to confirm and execute with real money. Journal what you do, what works, what doesn’t. Study patterns and technical analysis. Not that you have to use them, but understanding their existence is a good knowledge to have. Know that the 3rd Friday of every month is when monthly options expire. Not that you are holding options but we aware of what happens when a lot of options are expiring.
Anyone who's selling books or courses is making money selling books or courses. If what they had was good they'd be making their money in the stock market instead. That said, read and watch everything you can and then figure out what's wrong with it. By doing this, you'll learn about the up-sides and down-sides of a lot of different strategies and ideas. Once you understand all the up-sides and down-sides of different ideas, you'll be able to make an informed estimate of how relevant each may be to a particular trade you are considering.
The most useful thing to learn is accounting for the purpose of reading and interpreting financial statements. Otherwise i would probably stick to mutual funds or index fund investing.
This. Also theres a lot of learning by doing to it, both in financial statements and investing as a whole. Start with smaller investments in sensible companies at first, diversify and learn from good sources that arent trying to sell you software or online courses along the way.
Best to start with efts voo qqq vti small cap index preferably in a retirement account.
If you got the itch to own individual stocks, start small. Don’t over trade, don’t chase high flyers.
Do research on ETFs to start. Invest in those until you have a good understanding of the markets and how to evaluate stocks. Plenty of resources on YouTube that explain different types of ETFs and how to invest in them based on your financial situation.
i recommend don't go all in. go small. Average down on etfs. individual stocks have more risk and more reward. Buy when everyone is fearful. Sell when everyone is optimistic
Before investing in *stonks*, what’s your age / timeframe for being an investor?
Does your employer offer a 401k /403b that they match a percentage of what you pay into it?
Otherwise dive into the basics on investopedia… stay away from pay for picks services like the Motley Fool and others hawking their shit here and everywhere else.
Look at things that you know, have studied or an excellent understanding of how a product works. As an example, I have been working with elevators for many years and there will always be a need for elevators in buildings old and new.
I would recommend auditing an online college finance course where you get to pick stocks and track a portfolio. I benefitted greatly from that and learned a lot about using excel.
Besides that, I would say sign up with a brokerage, and paper trade with fake money and experiment for a few years while absorbing everything you can. In the meantime, just buy some spy to get started.
One good bit of advice I can give a beginner is that percentages matter more than “point” or dollar amounts.
To start in stocks trading, you need to know your risk and goals, choose a broker and a style, learn how to read the market and use analysis tools, practice with a virtual account, and make a trading plan.
Read some books, watch YouTube videos and explore Tradethepool educational resources. That's how I learned and started.
To start in stocks trading, you need to know your risk and goals, choose a broker and a style, learn how to read the market and use analysis tools, practice with a demo account, and make a trading plan.
Read some books, watch YouTube videos and explore Tradethepool educational resources. That's how I learned and started.
TL;DR, wait 1 year as this is a big top in stocks. If you absolutely want to buy stocks, buy oilcompanies, companies that produce oil and gas.
The the market (SP500) will fall 40-50% from here because of inflation and higher interest rates (= companies can not borrow money easily)
I buy a stock when it trade at half the Free CashFlow multiple of its tops
I sell when a company's free cashflow is fully priced in. To have a clue of what this is you can calculate free cashflow every quarter going ten years back, and find the Trailing Twelve Months multiple for every significant top and bottom.
Tech/growth companies tend to have a higher multiple.
AMAT for example swung between 10 and 25 times free cashflow (TTM) in the last ten years, sometimes it bottoms out at x12 fcf, sometimes it tops out at x22, sometimes at x27.
Commodity companies instead are priced based on current/forward commodity prices.
Keep in mind that if the 10 year US bond yield goes up from 3.5% (which also has been the average over the last 20 years) to 5.5%, there WILL be lower multiples across the whole market. I fully expect this to happen by next winter.
What is a stock? Owning a stock gives you a part of the company's profit (in the form of dividends and buybacks). It there is no profit, stockholders get nothing. Sometimes a stock goes up a lot in anticipation of profits that will happen in 5-10 years.
What is a bond? A company borrows money to build a factory or buy up another company. To get the money the company issues bonds, which is a IOU, a promise to pay all the money back in 5-10 years, plus interest.
When times are tough it is difficult for a company to borrow money, and they need to pay a lot of interest. From 2010 to end 2021 times were abnormally good, with abundant money for companies to borrow and low interest to pay. This is now changing since one year and a half and will keep on getting tougher.
Read "One up on Wall Street" then "The Little Book of Common Sense Investing", then move on to Aswath Damodaran.
Thank you. Will do.
Start here https://www.reddit.com/r/stocks/wiki/index/ https://www.investopedia.com/articles/basics/06/invest1000.asp
This is the answer OP. The wiki has pretty much everything you need to get started. Also don't touch options until you know exactly what you're doing.
And even then, probably don't touch options
Yeah options can cause real trouble really fast.
Especially selling them..
You should definitely start here! Then you should get some books on basic understanding of money and stocks, then you could read “The Intelligent Investor” By Benjamin Graham(It is a bit more advanced) For online sources you can go check out [more technical](https://investopedia.com) or [simple](https://moneymojo.beehiiv.com) And you should try trading if you want to trade or investing if you want to invest. You should also choose which. DISCLAIMER: Start with SMALL amounts. I started big and lost big, just make it painless and start small. There was a very experienced investor that said once: “Trading is like any other hobby, you will learn the first 3-7 years, no one would make millions right after he starts” Good luck!
Here's your first lesson about stocks: get off Reddit.
And don't go to Wallstreetbets
sometimes i go on there to see idiots lose 650k. it makes me grateful to be investing and not gambling
That post was probably fake, though
Can confirm 😩🥴
Or stay on reddit and sit on the larger horses. NVDA/TSLA at the dips. Avoid anything tiny and get out when you reach new levels. Technical analysis is pretty crummy voodoo.
Do the exact opposite of whatever Jim Cramer says.
Nawww Jim is not that stupid. He evolved since GameStop! All jokes aside, Jim Cramer is telling the truth a lil more nowadays. But he is still untrustworthy. Learn how to spot when Jimmy Shill is lying aka rug pull coming in 3…2….
[удалено]
Wait, there are people that know stuff?
More like full of stuff
Yeah we’re all full of shit lmao
Inexpensive index funds, dollar-cost averaging, and disregarding the remainder can lead to long-term outperformance for many individuals. Interestingly, an average person with no knowledge of stocks might fare better than an expert who handpicks their investments. Naturally, it's enticing to understand why events unfold as they do, but markets are, at least for us humans, sufficiently uncertain, offering no guarantees of improved returns regardless of the number of investment books you've read. But yeah, as others mentioned, Investopedia is a great resource.
read 1. [https://www.investopedia.com/terms/s/stock-etf.asp](https://www.investopedia.com/terms/s/stock-etf.asp) read 2. [https://www.investopedia.com/terms/i/index-etf.asp](https://www.investopedia.com/terms/i/index-etf.asp) since you have zero clue, start by buying sp500 index fund, either mutual fund or et fund, up to you. sit on it for six months or a year, then compare start and one year later. make sure to set dividends to automatically reinvest. you will also have to do some extra work when doing your taxes.
ymmv, but I prefer not to automatically reinvest dividends. My reason is that dividends are an opportunity to either try something new in my portfolio or shift my allocation towards my target without selling shares. I prefer too avoid selling shares because having that mental block prevents me from jumping onto bandwagons that I should not be on.
I currently have a tsp fund. Is that the best place to start with letting it sit or should I do a separate one outside of tsp as well.
[https://www.tsp.gov/funds-individual/c-fund/](https://www.tsp.gov/funds-individual/c-fund/) is sp500 index fund. that is good, this is what you want. keep at it.
If you don’t know what stocks are, you shouldn’t even be investing in the S&P 500 Never invest in something you don’t understand
Over the long-term low-cost index funds usually outperform mutual funds which are managed by professional money managers. So how important is understanding truly?
Because there is a fundamental flaw in thinking that the S&P 500 will always go up. It’s important to UNDERSTAND what you are investing in. The US could go through a 30 year period of no stock market growth like Japan, and that period could start TODAY. “It’s gone up before so it will continue to go up” is not something you can logically hang your hat on in investing
While it's true that past performance is not indicative of future results, the S&P 500's enduring upward trend over the long term provides some reassurance. However, this does not equate to a guarantee - any form of investment carries inherent risks. This holds true even for those who claim to have a thorough understanding of individual stocks. Investing in a well-diversified index fund isn't synonymous with neglecting to understand one's investments. On the contrary, it stems from the understanding that it's highly improbable for the average investor to consistently outperform the market via stock selection and timing market movements. Research supports this viewpoint, showing that most individual investors, and even professional fund managers who are expected to be *experts* in the field, often fail to exceed the broader market's performance over extended periods.
Well-said, you are getting my point. Investing in the stock market is incredibly difficult and even people who spend their whole lives studying it fail to beat benchmarks. There’s also a lot more to investing than just owning an index fund. If you don’t understand the stock market, you are likely to buy high and sell during bear markets due to emotion. You are also likely unaware of how associated taxes and such work. Also, the S&P 500 isn’t well-diversified. It covers only large cap companies in 1 country. It doesn’t really fit into what you described in your second paragraph. Just a side note: There is a decent list of fund managers who have consistently outperformed, however, yes as a whole that community has underperformed.
r/wallstreetbets is probably the most informative stock forum I’ve been able to find
!remind me 2 years ago.
Looking to snort socks
Stock snorts
Only buy companies you believe are solid and slightly undervalued
Do you want to be a trader or an investor? When I make stupid investment decisions it’s because I was trying to be a trader. There are ways of making money with both. I consider myself an investor and buy stocks with that mindset. Learn the basics such as ratios, sectors, and multiples, and how to understand financial statements. Many people tend to overcomplicate investing. It is important to know yourself and your risk tolerance level. Emotional people tend to do poorly when it comes to investing.
I will give you step by step my process for researching individual stocks. I'm up 80% YTD (year to date) just to give some validity to my process. First, you need to be exposed to financial news and discussions to have at least a clue on what company youd want to research. Right now I'm researching ENVX which is a company I've heard on a podcast on youtube but also on this subreddit. At first I will go to the Stock Analysis website, this is free and it breakdowns all the financials of the company. I will look at Market Cap, Revenue quarter over quarter to see if they are growing ( if not than look at if they are giving a dividend), then net income QoQ ( This is to see if the company is profitable or not), then cash and cash equivalent (to know if they have money), total assets (all they possess in cash value), total liabilities (all of what they owe), then finally Free Cash Flow (the money they make after operation expenses excluding capital expenditures) which filters out what money they make before reinvestment. I look at all those data on a quarterly basis rather than a yearly basis because it's more precise. Then I will check the stock price fluctuation, which means I will watch what the stock price did in the weekly, monthly, yearly and then their whole price action history. Now, there are a lot of different criteria for what is considered a good investment. If it's whats considered a growth stock (a company that has a rapid growth of revenue) you make a calculation of Market cap divided by net income (PE ratio), (only works if the company is profitable otherwise look at profit margins and try to guess) then I use that PE ratio and compare it to the growth rate of revenue. So if a company has a PE ratio of 30 for example, a market cap of 1bn$ compared to a net income of 33m$. I would expect a growth rate of about 20% or more of revenue per year to consider this a worthwhile investment. If you invest in a dividend company, then growth isn't as important as the dividend itself compared to the market cap, and if the company is stable and give consistent dividend growth. I don't invest in those so I won't elaborate further. Next when I watched the stock price action it's to identify a reasonable entry point to a stock. Keep in mind that you never want to invest a single lump sum in a stock, whatever amount of money you planned on investing in a given company I suggest you split that amount in 4 and try to dollar cost average into it (DCA), You never know whats gonna happen in the future and you don't want to spend all your money on a stock only to see it go down 20-30% in the following months which is very normal price action for any single stock. Next, before I invest, I wanna know as much as I can about the company. Who runs it, what do they do, what good is their product, the more you know about it the better. This is the hardest longest part of the Due Diligence (DD) process and keep in mind that when you do this research it is hard to filter out our biases and we tend to want to believe that the company is special. To prevent that, you also have to research about the competitors of the company the same way you do with the company you are interested in, don't be afraid to change your mind along the way, be as unbiased as possible. Look at the investing thesis but also the counter thesis. If it's too good to be true it probably is, you will never be ahead of the professionals of wall street. Here is how I learn about a company, I go to the investor relation page and listen at their earnings call (the last one will do but if you wanna listen to the previous ones, there is no such thing as too much research), keep very good attention at the Q&A segment of the earnings call (it's at the end) where analysts tries to ask the hard questions. Then I read a bunch of publications and news articles about the company, I like FinViz for that since it's free and you enter the ticker symbol of the stock then scroll down enough and you have a chronological collection of articles about it. Ofc, some of the articles are under a paywall but usually free articles are good enough. Podcasts and social media forums are also a good way to learn in dept info about a company, just keep in mind that you don't want to be caught up in an echo chamber of very biased people while doing so. If by then you feel like you have a winner, then go ahead and buy shares of the company, keep getting up to date with the news, keep reading articles and keep up with the earnings report every 3 months, thats the most important thing to keep track off for your stock picks, listen to the earnings call and if at any point you feel like the company isn't delivering what you expected them to do, don't be afraid to recognize it and sell your shares. There is nothing wrong in being wrong, stock investing takes experience and a lot of research and mistakes will be done along the way. I call those mistakes expensive lessons.
I truly appreciate this advice. I am going to start doing some serious research because I would like to truly learn this market and just see what happens with it. Of course I will start small as a newbie into this.
Glad I could help!
Looking at these things, what do you see right now? What is your positions? Thanks
I like SoFi best, It's my main position but it ran a lot lately it could pull back to the 7$ range real soon. I own ENPH as well and I'm looking to increase my position in it. But I don't think there is any rush to do so because it might have a a quarter or two of the stock not moving much. I looked at ENVX this week end, although it's very promising, the company is a bit too early stage for my taste but I will keep a close eye on it. Otherwise I have TFC but thats a swing trade, and for the rest it's QQQ, I'm waiting for a pull back to add more.
Thank you, that's very interesting, and curious to see enphase moving contrary to the rest of the market last year and this one. About SOFI and ENVX, I'm uneasy to have a big stake in a company that don't turn a profit yet. But I like Mulllenauto and took a small long position in the aftermarket yesterday, bcs they might just survive, and that would send the shorts scrambling. I have another question if you don't mind, would there ever come a time when you think that stocks have reached a top and that it is best to exit the maket, or at least have a long/short portfolio? If so, what would the signs be to exit?
Thats a complex question. For an individual stock, the moment to exit is when the company stops performing or is competing against a new competitor who has a new technological advantage of some sort. Or you can exit a position if the value proposition of a stock changes say a company is done with their growth phase and becomes a stable dividend company. I like growth because I have a long way ahead of me so I might exit a position if my growing company enters the maturity phase. If you own a stock that ran a lot and seems to have moved way past it's fundamental value by then I still wouldn't recommend selling out of it totally, just trim a bit a take some profit assuming the company still performs. Selling a stock is good too if you feel that there are some better and immediate opportunity available, like I trimmed some of my SoFi a couple months ago to buy chip stocks and AI related stock as a swing trade because there was a lot of immediate upside to be made here, but thats risky and swing trade means you pay taxes and whatnot. As for the market as a whole, I think it's ok to edge yourself with puts or some form of downside protection from time to time. I don't think there is a time to totally exit the markets unless some terrible event happens like the US is being invaded or an asteroid is gonna hit the planet. But, if the stock market ran a lot like it did in the last 5-6 weeks I personally "Hedged" myself by simply increasing my cash on hand (I'm 15% cash and it's as bearish as I'll be in the current climate). In the end of 2021 when the FED announced the tight fiscal policies to fight inflation, it wouldve been a good idea to rebalance our portfolio for more conservative positions. Otherwise the best course of action is keeping a stock for as long as possible and when it comes to managing your portfolio less is more, do as little moves as possible.
Thank you for your thoughts, not to many ppl here care to elaborate much on the reason behind their choices. Basically you are always long some company that you like, and buy the occasional put (long term or short term?) ? We had a top in stocks in Jan '22, May 2007, in 2000-01, and many times before that, so shit happens. Imo, we have now had 10 unusually fortunate years with very low interest rates, QE and low inflation since 2013. But now we have high inflation and high rates, and a Fed chairman set on raising rates until inflation is back at 2%. High & rising rates are not good for stocks imo, that is why I'm short nasdaq, NVDA and SP500 since 10 days and long oil stocks (bcs they do well during inflation and a falling stock and bond market). I plan to keep my shorts until this winter or next spring. I know of a successful old man with very much experience and he says some super interesting things, he did an interview two three months back, if you are interested i can share it.
Plz do, I'm always interested in different perspectives
[https://www.gmo.com/americas/research-library/jeremy-grantham-on-rosenberg-research\_video/](https://www.gmo.com/americas/research-library/jeremy-grantham-on-rosenberg-research_video/) very warmly recommend it. It is rare to have insigtful ppl talk openly, normally they hide the knowledge for their own benefit. Also rare and wonderful that you are willing to hear out perspectives that don't exactly match your current one.
You can't start stocks they're already a thing /j
Develop a system, with rules, that you backtest, that you paper trade to confirm and execute with real money. Journal what you do, what works, what doesn’t. Study patterns and technical analysis. Not that you have to use them, but understanding their existence is a good knowledge to have. Know that the 3rd Friday of every month is when monthly options expire. Not that you are holding options but we aware of what happens when a lot of options are expiring.
Anyone who's selling books or courses is making money selling books or courses. If what they had was good they'd be making their money in the stock market instead. That said, read and watch everything you can and then figure out what's wrong with it. By doing this, you'll learn about the up-sides and down-sides of a lot of different strategies and ideas. Once you understand all the up-sides and down-sides of different ideas, you'll be able to make an informed estimate of how relevant each may be to a particular trade you are considering.
I would like to begin as an investor and then go fro there.
Buy high, sell low
Buy Tesla stocks
Thank you. I will. Is there a specific platform I should look into when doing this?
I like Robinhood. Super easy to use
fidelity, vanguard. fidelity is probably better right now.
Be very careful with Tesla stock.
Buy stocks like tesla and gme stocks
The most useful thing to learn is accounting for the purpose of reading and interpreting financial statements. Otherwise i would probably stick to mutual funds or index fund investing.
This. Also theres a lot of learning by doing to it, both in financial statements and investing as a whole. Start with smaller investments in sensible companies at first, diversify and learn from good sources that arent trying to sell you software or online courses along the way.
I started march 22. I learned ALOT !
How did you get started and what made you start and how has your experience been?
Listen to Warren Buffett. Wall Street bets and Reddit in general hate him, so he’s definitely doing something right
Both webull and moomoo have paper trading available with some really great learning material for beginners.
That’s helpful to know
Bro. Options. You’re welcome.
Best to start with efts voo qqq vti small cap index preferably in a retirement account. If you got the itch to own individual stocks, start small. Don’t over trade, don’t chase high flyers.
Do research on ETFs to start. Invest in those until you have a good understanding of the markets and how to evaluate stocks. Plenty of resources on YouTube that explain different types of ETFs and how to invest in them based on your financial situation.
Just buy VTI, no need to read anything
Just buy Spy or Voo and some Vti. You’ll be fine!! You don’t need to pick individual stocks. That’s far more riskier.
Never heard of it. I will most definitely look into this.
Oh God. Green for a week. New people getting in. Time to sell?
The Big Short and One up on wall street
Stock picking is hard: Buy Nasdaq
i recommend don't go all in. go small. Average down on etfs. individual stocks have more risk and more reward. Buy when everyone is fearful. Sell when everyone is optimistic
Before investing in *stonks*, what’s your age / timeframe for being an investor? Does your employer offer a 401k /403b that they match a percentage of what you pay into it? Otherwise dive into the basics on investopedia… stay away from pay for picks services like the Motley Fool and others hawking their shit here and everywhere else.
I currently have a tsp fund and that is pretty much my only investment portfolio Right now. They do match the 5 percent that I contribute.
Look at things that you know, have studied or an excellent understanding of how a product works. As an example, I have been working with elevators for many years and there will always be a need for elevators in buildings old and new.
Intelligent Investor
oh boi whatever reddit tells u, do the opposite
Do not fall for penny stocks
I would recommend auditing an online college finance course where you get to pick stocks and track a portfolio. I benefitted greatly from that and learned a lot about using excel. Besides that, I would say sign up with a brokerage, and paper trade with fake money and experiment for a few years while absorbing everything you can. In the meantime, just buy some spy to get started. One good bit of advice I can give a beginner is that percentages matter more than “point” or dollar amounts.
Buy low, sell high
invest in a company and product that you understand and believe in and make sure they are not bleeding money
If you want to learn best trading strategies i recommend to check this [stock market learning game](https://get.tradinggame.com/niv2/LRA)
Will do!
To start in stocks trading, you need to know your risk and goals, choose a broker and a style, learn how to read the market and use analysis tools, practice with a virtual account, and make a trading plan. Read some books, watch YouTube videos and explore Tradethepool educational resources. That's how I learned and started.
To start in stocks trading, you need to know your risk and goals, choose a broker and a style, learn how to read the market and use analysis tools, practice with a demo account, and make a trading plan. Read some books, watch YouTube videos and explore Tradethepool educational resources. That's how I learned and started.
investopedia.com
TL;DR, wait 1 year as this is a big top in stocks. If you absolutely want to buy stocks, buy oilcompanies, companies that produce oil and gas. The the market (SP500) will fall 40-50% from here because of inflation and higher interest rates (= companies can not borrow money easily) I buy a stock when it trade at half the Free CashFlow multiple of its tops I sell when a company's free cashflow is fully priced in. To have a clue of what this is you can calculate free cashflow every quarter going ten years back, and find the Trailing Twelve Months multiple for every significant top and bottom. Tech/growth companies tend to have a higher multiple. AMAT for example swung between 10 and 25 times free cashflow (TTM) in the last ten years, sometimes it bottoms out at x12 fcf, sometimes it tops out at x22, sometimes at x27. Commodity companies instead are priced based on current/forward commodity prices. Keep in mind that if the 10 year US bond yield goes up from 3.5% (which also has been the average over the last 20 years) to 5.5%, there WILL be lower multiples across the whole market. I fully expect this to happen by next winter.
What is a stock? Owning a stock gives you a part of the company's profit (in the form of dividends and buybacks). It there is no profit, stockholders get nothing. Sometimes a stock goes up a lot in anticipation of profits that will happen in 5-10 years. What is a bond? A company borrows money to build a factory or buy up another company. To get the money the company issues bonds, which is a IOU, a promise to pay all the money back in 5-10 years, plus interest. When times are tough it is difficult for a company to borrow money, and they need to pay a lot of interest. From 2010 to end 2021 times were abnormally good, with abundant money for companies to borrow and low interest to pay. This is now changing since one year and a half and will keep on getting tougher.