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|10-12-2012 06:54 AM|
Basically it's a group of stocks, chosen by a 'fund manager', so rather than buying an individual stock you're actually buying a bunch of stocks.
Mutual funds generally have some kind of 'target', such as tracking a specific market (an index fund tracks a market, such as the S&P500). Others might be going for stocks that pay high dividends, or have a lot of potential for growth.
I'm a big fan of index funds, because you get a lot of diversity (aka you spread your investment out so if one stock tanks, you're still 'up' overall), and generally the fees are pretty low.
There are 'active' and 'passive' funds. Active funds are where the fund manager actively looks to move the money around to stocks they think will do better, whereas a passive fund does not move the money around as much (maybe yearly, for example).
Hope that helps. Google 'mutual funds' for a lot more info.
|10-11-2012 08:33 AM|
|10-11-2012 08:02 AM|
|DWad||It's basically like a mutual fund, but instead of getting the 'closing price' for the day, you get the price that it's at right when you buy the stock.|
|10-11-2012 07:53 AM|
|10-05-2012 08:06 AM|
|10-05-2012 07:55 AM|
|10-05-2012 05:55 AM|
if you have no idea about how to value stocks but want to trade stocks, i would stick with ETF's. They are like mutual funds but rather than "trade" at the end of the day, with ETF you can trade all day, so to speak.
However, they are not all the same and you can get burned especially those index ETFs that are highly leveraged like those from proshares, yes, i've been burned on them before because i didnt do my homework.
There are dividend paying ETFs like SDY or VIG (from Vanguard). You can see what the top ten holdings are so its like buying a basket of those stocks.
I would stick with Vanguards ETFs because of its low annual fees (yes, they are like mutual funds with annual fees)
What's great about ETFs is that you can select which sectors you want to be in , eg. energy, financials, indexes, emerging market, etc.
|10-03-2012 09:52 AM|
|mr_rolla||I'd wait until after the election to invest.|
|10-03-2012 08:01 AM|
|10-03-2012 12:12 AM|
If you're going to invest in penny stocks or invest at all without knowing anything about accounting, balance sheets and valuation, you might as well go to vegas.
|10-02-2012 11:11 AM|
Thanks for the advice. I meant to reply earlier.
I sent in my deposit yesterday, so I need to make some decisions in the next week...
|10-01-2012 06:50 AM|
There really is no safe bet when you are trying to make a few bucks by playing a short term bet. Short term bets are supposed to be risky. If you wanted something safe for a few months then you should just open up a 6 month CD.
What ever money you put into the market, kiss it good-bye before doing so as you must accept the fact that you might as well never see it again.
|09-30-2012 07:19 PM|
When you get to the point where you don't care if your stock goes up or down, you're ready to "have fun in the stock market."
No one makes money in the market picking stocks because no one can do it. It's a zero-sum game and you have to sell to win. There are either successful trades or unsuccessful trades based on the many factors decided upon before taking the trade in the first place. The rest is odds which you have zero control over.
|09-30-2012 06:15 PM|
Correct on your fees. And ANY opinion on this subject will be very subjective to ifs/whens/ and buts. Having said that. Where were they in 08 when the bottom fell and I bought metals? Lets just say I'm ok with my decision .
2 trains of thought here. You want to have fun with your $$. So try one of the numerous websites dedicated to penny stocks and play like everyone else. Proven fact a monkey can throw darts at a chart and pick winners. No brainer.
Or you can try a theory I have found to be profitable myself. Be brave when everyone else is scared and scared when everyone else is brave. I took that one from a guy called Warren Buffet. Ever heard of him?
There is much fun and profit in "bucking the trend" and making $$ when most are losing. I find it very satisfying.
|09-30-2012 06:15 PM|
1) Price doesnt matter, valuation matters
2) Learn how stocks are valued, (book value, earnings, guidance)
Once you learn how stocks are valued, you can laugh at some of the prices people are buying them at.
Amazon has a PE of roughly 100, meaning its being valued at roughly 100 years of what its earning today.
Apple meanwhile is only trading at about 10 times earnings, and 3 times book value (if i remember correctly), so basically if suddenly iphones stop selling, or the apple fad goes away, the stock surely wont go bankrupt, but can see its price get cut in 3rds.
My suggestion is invest in companies that are boring, have steady customers, churn out steady earnings, and dont need a FAD to do well. (think: Facebook, Apple, Zynga?)
So redefine your SAFE to be STEADY, and without HYPE.
Google and Exxon may fit that criteria, there are many others as well.
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