Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[Cornstock]

Originally Posted by Buck

I bought my first stocks today and so far I've made 14 cents.

Actually it cost me $6.95 so I'm down $6.81 I guess.

Congratulations! You're in for a fun ride of lifelong investing. 6.95 is actually pretty good for a trade, there are still firms out there that charge much more. The obvious strategy is that you save up and buy more of the same stock at a time to lower your average fees per share.

If you get into the etf game (which I highly recommend if you are serious about long term wealth building) there are many brokerages that trade commission free (Vanguard to name one). They diversify your investment across many different companies so you don't have all your eggs in one basket. There is a lot of great info in this thread about them.

Use us as a resource and look at this as a learning experience, there are some really knowledgeable people on here.

[Cornstock]

Originally Posted by DaFace

Obligatory "index funds are better than stocks unless you really know what you're doing" reply. (And even if you know what you're doing, index funds are still probably better than what you're doing.)

This, times infinity.

[EPodolak]

Originally Posted by DaFace

Obligatory "index funds are better than stocks unless you really know what you're doing" reply. (And even if you know what you're doing, index funds are still probably better than what you're doing.)

Bogelhead here. It's the best strategy there is IMO, but the least exciting.

[lewdog]

Originally Posted by DaFace

Obligatory "index funds are better than stocks unless you really know what you're doing" reply. (And even if you know what you're doing, index funds are still probably better than what you're doing.)

Originally Posted by Cornstock

This, times infinity.

I definitely agree, although it's not inherently bad to have a small percentage of your income in individual stocks if you feel so compelled. This should only be after you've got something like 10%+ percentage of your income going to retirement investment vehicles (401k/IRAs).

I bought my first individual stocks earlier this year as well. That's after 5 years of ramping my 401k/Roth IRA contributions up to 15%. The money I then invested in individual stocks is IN addition this amount, not in place of those investments. It's currently 6% of my total portfolio and I don't really plan to ever have individuals stocks be more than 10% of my total portfolio.

[ndws]

Originally Posted by lewdog

I definitely agree, although it's not inherently bad to have a small percentage of your income in individual stocks if you feel so compelled. This should only be after you've got something like 10%+ percentage of your income going to retirement investment vehicles (401k/IRAs).

I bought my first individual stocks earlier this year as well. That's after 5 years of ramping my 401k/Roth IRA contributions up to 15%. The money I then invested in individual stocks is IN addition this amount, not in place of those investments. It's currently 6% of my total portfolio and I don't really plan to ever have individuals stocks be more than 10% of my total portfolio.

I'm looking to start dabbling with penny stocks to get my feet wet. I figure in the first couple of years while I learn, its the equivalent of going to the casino. Most likely I'll come out with empty pockets, but its fun...and in this case, hopefully a learning experience. And if a penny hits along the way, bonus.

[DaFace]

Originally Posted by ndws

I'm looking to start dabbling with penny stocks to get my feet wet. I figure in the first couple of years while I learn, its the equivalent of going to the casino. Most likely I'll come out with empty pockets, but its fun...and in this case, hopefully a learning experience. And if a penny hits along the way, bonus.

I think that's the way to look at it. If you want to mess with individual stocks because it's fun and/or interesting, go for it. Just know that it's a game and that if you are purely looking to maximize your returns, you're almost certainly better off going the boring route.

[Hog's Gone Fishin]

Originally Posted by ndws

I'm looking to start dabbling with penny stocks to get my feet wet. I figure in the first couple of years while I learn, its the equivalent of going to the casino. Most likely I'll come out with empty pockets, but its fun...and in this case, hopefully a learning experience. And if a penny hits along the way, bonus.

Great approach. That's the way I've gone about it. I've lost thousands.

[Buck]

I only bought 7 shares of KTOS. I can't really afford much more right now.

But I will read the thread and see what I can do.

[ndws]

Originally Posted by DaFace

I think that's the way to look at it. If you want to mess with individual stocks because it's fun and/or interesting, go for it. Just know that it's a game and that if you are purely looking to maximize your returns, you're almost certainly better off going the boring route.

Yep, I'm on the boring bandwagon already. I just looked at the math on my last pay stub, and between my retirement (pension), 401k, and personal Roth (with company matching totaled in) i'm putting right at 28% of my income into retirement. So unless there is a massive market correction in the handful of years before I retire (I'm 39 now, and my rule 85 doesn't go into effect until I'm 57 at the earliest, I should be ok without needing to rely on any day trading/penny stock nonsense I may try to do on my own.

[ndws]

Originally Posted by Hog Farmer

I've lost thousands.

That was my experience with season tickets lol

I would rather put that money into something potentially meaningful now that I'm out of them.

[kepp]

Originally Posted by ndws

I'm looking to start dabbling with penny stocks to get my feet wet. I figure in the first couple of years while I learn, its the equivalent of going to the casino. Most likely I'll come out with empty pockets, but its fun...and in this case, hopefully a learning experience. And if a penny hits along the way, bonus.

That's what I'm doing. I started with $100 a few months ago and now have....uh, $27

But it isn't money I'm worried about...just learning.

[kepp]

Originally Posted by ndws

Yep, I'm on the boring bandwagon already. I just looked at the math on my last pay stub, and between my retirement (pension), 401k, and personal Roth (with company matching totaled in) i'm putting right at 28% of my income into retirement. So unless there is a massive market correction in the handful of years before I retire (I'm 39 now, and my rule 85 doesn't go into effect until I'm 57 at the earliest, I should be ok without needing to rely on any day trading/penny stock nonsense I may try to do on my own.

My wife and I are on track to pay off our 30 year mortgage about 19 years early, hopefully right in time to retire at 55...fingers crossed.

[Discuss Thrower]

Penny stocks are an awful idea.

[Amnorix]

Originally Posted by kepp

My wife and I are on track to pay off our 30 year mortgage about 19 years early, hopefully right in time to retire at 55...fingers crossed.

Depending on your rate, you may not have the right goal in mind. But hey, if it gives you peace of mind or you vastly prefer it to anything else, I definitely understand.

[kepp]

Originally Posted by Amnorix

Depending on your rate, you may not have the right goal in mind. But hey, if it gives you peace of mind or you vastly prefer it to anything else, I definitely understand.

Not sure I understand.