Quetion About Buying Stocks For First Time | TigerDroppings.com

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LETSGEAUX2
Member since Oct 2012
355 posts

Quetion About Buying Stocks For First Time



I have never bought any kind of stocks so I am looking for the basics on everything. I have an account on Fidelity (Roth IRA) but I'm not sure how to start the process. I'm really trying to just figure out how to start contributing to my Roth. I'm not sure what sort of options to choose and at a later date, I may look at individual stocks.






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Chad504boy
New Orleans Saints Fan
Five Oh Four
Member since Feb 2005
80651 posts

re: Quetion About Buying Stocks For First Time


buy good stocks in shitty times.





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LETSGEAUX2
Member since Oct 2012
355 posts

re: Quetion About Buying Stocks For First Time


Frick I can't even figure out where to go on fidelity's website to do stocks





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GFunk
LSU Fan
Denham Springs
Member since Feb 2011
8539 posts

re: Quetion About Buying Stocks For First Time


1.) Buy Low.
2.) Sell High.
3.) Never ask the MT what to do with $5K cash.
4.) Profit.






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windshieldman
New Orleans Saints Fan
Member since Nov 2012
1494 posts

re: Quetion About Buying Stocks For First Time


Buy Ford and forget about it.





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RickAstley
LSU Fan
Reno, Nevada
Member since May 2011
1630 posts

re: Quetion About Buying Stocks For First Time


quote:

3.) Never ask the MT what to do with $5K cash.


So you're saying that $5k I spent on hookers and blow, which the MT told me to do, was not in my best interest?



This post was edited on 3/20 at 4:17 pm


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GoCrazyAuburn
Auburn Fan
Member since Feb 2010
14941 posts

re: Quetion About Buying Stocks For First Time


That is the one exception. Always listen to us when blow or hookers are involved.


This post was edited on 3/20 at 4:22 pm


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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
14698 posts
 Online 

re: Quetion About Buying Stocks For First Time


quote:

I have never bought any kind of stocks so I am looking for the basics on everything. I have an account on Fidelity (Roth IRA) but I'm not sure how to start the process. I'm really trying to just figure out how to start contributing to my Roth. I'm not sure what sort of options to choose and at a later date, I may look at individual stocks.



Do you have any money in the market at all already? Or are you a daisy fresh rookie? Not picking on you, I want to give you good advice, so these are important questions.






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npt817
LSU Fan
Prairieville, LA
Member since Sep 2010
760 posts

re: Quetion About Buying Stocks For First Time


Read some books first.





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LETSGEAUX2
Member since Oct 2012
355 posts

re: Quetion About Buying Stocks For First Time


quote:

Do you have any money in the market at all already? Or are you a daisy fresh rookie? Not picking on you, I want to give you good advice, so these are important questions.


Only thing I have is my 401k. Are stocks totally opposite from my Roth IRA?






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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
14698 posts
 Online 

re: Quetion About Buying Stocks For First Time


quote:

Only thing I have is my 401k. Are stocks totally opposite from my Roth IRA?


No, a Roth IRA is an Individual Retirement Account. In the Roth IRA, you invest your after tax dollars (up to $5500), and your investment grows tax free. You can theoretically invest in anything you want, but I only suggest Mutual Funds and /Index Funds, at least starting out.

A 401K is a retirement account where you invest PRE-TAX dollars, and your investment grows tax deferred (you get taxed on the distributions when you retire).

I HIGHLY RECOMMEND getting an appointment with an Investment adviser before investing ANYTHING. You need to find one with experience, and is willing to teach you.

DO NOT BUY individual stocks yet, you are going to get your face kicked in. You've been warned.


GOLDEN RULE: IF YOU DO NOT UNDERSTAND THE INVESTMENT, DO NOT DO IT.






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ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: Quetion About Buying Stocks For First Time


Vol I love your posts and your always insightful buy I fully disagree. I mean, I don't see any harm in buying something like McDonald's or Coke or in my case Philip Morris.....a basket of dividend growth blue chips will maybe not outperform the market in the long run, but it will perform just fine if you reinvest the dividends and enjoy dividend growth along the years.....now if you're talking a short term trade, then yes you may get your teeth kicked in





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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
14698 posts
 Online 

re: Quetion About Buying Stocks For First Time


I was implying he should grow his financial education before trading single stocks. But I agree.





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Chris Farley
Maryland Fan
Regulating
Member since Sep 2009
3675 posts

re: Quetion About Buying Stocks For First Time


quote:

a basket of dividend growth blue chips will maybe not outperform the market in the long run, but it will perform just fine if you reinvest the dividends and enjoy dividend growth along the years.


Then why not just invest in a basket of index ETFs, take the market return, and limit a lot of risk by not running such a concentrated portfolio? I don't understand why you would essentially add risk to take lower long term returns.






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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
14698 posts
 Online 

re: Quetion About Buying Stocks For First Time


Let me also add, the reason I suggest mutual funds, index funds, and some ETFs is because I believe 1 of the "blue chip companies" has a higher probability of becoming obsolete than all 500 companies of the S&P becoming obsolete over the next 30-40 years. Especially since the S&P evolves and changes every year. In fact I'm 100% certain of this. And VFINX has a 2% yield, so you also have a dividend growth to enjoy along the way.

When you think in terms of 30 years or more, why pick a few and hope you're right is all I'm saying.







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ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: Quetion About Buying Stocks For First Time


Bc a basket of blue chip stock etfs could include dogs like Exxon which was unreal years ago but has done nothing in the last 5 years while Philip Morris tripled as McDonald's roared....picking stocks on your personal info is a lot better than an etf...does every company possess McDonald's china growth potential? Same with Philip Morris





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ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: Quetion About Buying Stocks For First Time


And personally the reason I believe in Philip Morris for over 50% of my portfolio isn't only dividend growth plus future performance in emerging markets along with being the best performing stock of all time....it's the fact every dollar they take is in foreign currency and a bad dollar is great for them...one quarter in the past few years sales were stagnant and profit was up 19% on a weak dollar...I believe the dollar will fall into oblivion and PM would be the best blue chip to own for this





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Chris Farley
Maryland Fan
Regulating
Member since Sep 2009
3675 posts

re: Quetion About Buying Stocks For First Time


I'm not arguing with you over whether or not PM is a good investment or not, I just believe that putting over 50% of your portfolio in ANY single stock is an incredible risk. I would avoid it, and would certainly avoid advising someone else to do it. Especially someone just starting out that doesn't have a clue of what they are doing. To each his own.





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ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: Quetion About Buying Stocks For First Time


its true you should never put 50% of your portfolio in any stock but cmon Coke,Mcdonalds,Philip Morris....those companies are such staples of the world there is literally no chance of them going bankrupt and the fact that they pay a growing dividend which usually correlates with an increase in profitability is a sign you cannot go wrong.

I know I know....enron....enron earnings rose like 85% I believe and dividend rose 9%....that was your red flag something was up....coke profits rise 9.8%, dividends rise 9.8%, its like clockwork year in year out.....there is no risk whatsoever....if coke goes bust....its not just adios coke, its adios like 50 big name drinks....not to mention all the fountain drink machines everywhere.....these companies are not boom or bust and typically don't even rely on good or bad markets....

I'm just different bc I was gifted $5,000 from my uncle at 16, 5 different stocks @ $1k each....coke,exxon,altria,microsoft(1995 mind you),walmart....mind you that was 1995....the tech bubble burst,9/11 happened,2008 happened....and that $5K still came out to nearly $40K.....800% ROI on all blue chips through 3 market corrections






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Chris Farley
Maryland Fan
Regulating
Member since Sep 2009
3675 posts

re: Quetion About Buying Stocks For First Time


Same thing you said about all of those companies could also be said about GE, and they are still worth 1/2 of their 2008 value and 1/3 of their 2000 value. That's really cool of your uncle though, hope I can do something similar for my future kids one day





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