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Tiger1242 
LSU Fan
Member since Jul 2011
13955 posts
| Trying to get into the stock market (Posted on 10/25/12 at 10:49 am)
Now that I have a job and am starting to save money, I think it would be a good idea for me to invest some money. Since I'm new at it I want to start off very small. I'm thinking $100-$200 to get me started and aclamated to how the market works. Any tips on how to invest, where to go to get good information on trends and projections, and good cheap stocks to get me started? Any help is appreciated 
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reb13 
Ole Miss Fan
Oxford, MS
Member since May 2010
8252 posts
| re: Trying to get into the stock market (Posted on 10/25/12 at 10:51 am to Tiger1242)
My advice would be to save up to at least 1000 dollars because at 100 and 200 dollars any profit you make will be eaten by brokerage fees. Now once you get to 1000 I don't really have any advice. I've doubled my money once and lost half my money once. I just got lucky.
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Tiger1242
LSU Fan
Member since Jul 2011
13955 posts
| re: Trying to get into the stock market (Posted on 10/25/12 at 11:07 am to reb13)
quote:
My advice would be to save up to at least 1000 dollars because at 100 and 200 dollars any profit you make will be eaten by brokerage fees.
I've heard similar advice, that I need at least $500 to invest. The thing is I want to find out if the stock market is something I can work well into making me money, or if I'm just going to bleed money into it. I would rather risk $100-$200 to find out which type of person I am, rather than $500-$1000, even if that means my return on investment is minimal at first
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Spock's Eyebrow
LSU Fan
Member since May 2012
1313 posts
| re: Trying to get into the stock market (Posted on 10/25/12 at 11:32 am to Tiger1242)
Of course you're going to bleed money into it. Everyone does. The question is, will you take more out than you give back? I don't think $100-$200 is nearly enough to make for a relevant trial run. Besides brokerage fees taking out 5-10% of your bankroll, assuming you do just one trade to buy and hold, there's not enough risk involved to make it much different than doing a fantasy trial. Plus, it severely restricts the stocks you can buy. Finally, I think it would be a mistake to conclude anything from some limited experiment like this. I mean, so what if you invest $200 and cash out at $300? Does that mean you're good to go? And what if your $200 drops to $175 or something, you get nervous, sell, and watch it go to $250 in a few days, if only you would have held? And what if $200 is small enough that you won't care if it drops to $100 on some bad news, during which time, it might have made sense to take a loss at a higher level? With only $200 to invest, you're going to be limited in the trades you can do, and you won't get a very representative experience of all the things that can and will happen when you start doing it for real.
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Tiger1242
LSU Fan
Member since Jul 2011
13955 posts
| re: Trying to get into the stock market (Posted on 10/25/12 at 11:39 am to Spock's Eyebrow)
quote:
I don't think $100-$200 is nearly enough to make for a relevant trial run. Besides brokerage fees taking out 5-10% of your bankroll, assuming you do just one trade to buy and hold, there's not enough risk involved to make it much different than doing a fantasy trial. Plus, it severely restricts the stocks you can buy. Finally, I think it would be a mistake to conclude anything from some limited experiment like this. I mean, so what if you invest $200 and cash out at $300? Does that mean you're good to go? And what if your $200 drops to $175 or something, you get nervous, sell, and watch it go to $250 in a few days, if only you would have held? And what if $200 is small enough that you won't care if it drops to $100 on some bad news, during which time, it might have made sense to take a loss at a higher level? With only $200 to invest, you're going to be limited in the trades you can do, and you won't get a very representative experience of all the things that can and will happen when you start doing it for real.
Hmmm this makes a lot of sense actually, I guess I should suck it up and put some actual money into it...
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Crbello4Hiceman
LSU Fan
Lurking
Member since May 2011
384 posts
| re: Trying to get into the stock market (Posted on 10/25/12 at 11:40 am to Tiger1242)
LINK
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Crbello4Hiceman
LSU Fan
Lurking
Member since May 2011
384 posts
| re: Trying to get into the stock market (Posted on 10/25/12 at 11:40 am to Tiger1242)
LINK
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Crbello4Hiceman
LSU Fan
Lurking
Member since May 2011
384 posts
| re: Trying to get into the stock market (Posted on 10/25/12 at 11:40 am to Tiger1242)
edited to delete duplicate post
This post was edited on 10/25 at 11:42 am
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Tiger1242
LSU Fan
Member since Jul 2011
13955 posts
| re: Trying to get into the stock market (Posted on 10/25/12 at 11:45 am to Crbello4Hiceman)
Thanks man
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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
50026 posts
| re: Trying to get into the stock market (Posted on 10/25/12 at 11:47 am to Tiger1242)
You should Dollar Cost Average $100 a month into it for the next 30 years. Buy good mutual funds and hold on to them. Thank me later.
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Crbello4Hiceman
LSU Fan
Lurking
Member since May 2011
384 posts
| re: Trying to get into the stock market (Posted on 10/25/12 at 11:52 am to Tiger1242)
Also, ignore any tips anybody posts on the money board for penny stocks. 
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Chris4x4gill2 
Alabama Fan
North Alabama
Member since Nov 2008
1529 posts
| re: Trying to get into the stock market (Posted on 10/25/12 at 12:45 pm to Broke)
quote:
You should Dollar Cost Average $100 a month into it for the next 30 years. Buy good mutual funds and hold on to them. Thank me later
This
Start learning by researching to find a good mutual fund. Look at diversification vs return and look at what stocks the fund invests in and figure out why.
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jmtigers 
Southern Miss Fan
1826.71 miles from USC
Member since Sep 2003
3304 posts
| re: Trying to get into the stock market (Posted on 10/25/12 at 1:24 pm to Chris4x4gill2)
quote:
quote: You should Dollar Cost Average $100 a month into it for the next 30 years. Buy good mutual funds and hold on to them. Thank me later This Start learning by researching to find a good mutual fund. Look at diversification vs return and look at what stocks the fund invests in and figure out why.
Don't forget about fees. IMO low cost index funds are better than a "good" mutual fund.
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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
50026 posts
| re: Trying to get into the stock market (Posted on 10/25/12 at 2:28 pm to jmtigers)
quote:
IMO low cost index funds are better than a "good" mutual fund.
But do they perform better? That's what I thought. Loaded question
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Chewy
LSU Fan
B'ham, AL
Member since Sep 2006
327 posts
| re: Trying to get into the stock market (Posted on 10/25/12 at 2:37 pm to Broke)
Go with Broke's advice. Dollar cost average into a strong blue chip index fund for the long haul and FORGET about trying to pick individual winners or time the market.
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jmtigers
Southern Miss Fan
1826.71 miles from USC
Member since Sep 2003
3304 posts
| re: Trying to get into the stock market (Posted on 10/25/12 at 2:41 pm to Broke)
quote:
But do they perform better?
Mostly, but astute selection of mutual funds may produce benefits.
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Maniac979
LSU Fan
The Great State of Texas
Member since Jan 2012
400 posts
| re: Trying to get into the stock market (Posted on 10/25/12 at 3:28 pm to Tiger1242)
(no message)
This post was edited on 1/12 at 9:06 pm
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Crbello4Hiceman
LSU Fan
Lurking
Member since May 2011
384 posts
| re: Trying to get into the stock market (Posted on 10/25/12 at 4:00 pm to Maniac979)
LINK
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