Learning to Invest

[deleted] · 2015-03-07T17:02:07+00:00

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trent_33 · 2015-03-07T15:06:17+00:00

https://www.bogleheads.org/wiki/Main_Page

stonemountainman42 · 2015-03-07T16:35:58+00:00

A common bit of advice is that people who have been doing this their whole lives still can't do a better job than indexed mutual funds. Unless you really think you're the next Warren Buffet AND you want to spend a lot of your free time researching your investments, just keep it simple.

1) use scottrade, it's one of the lowest transaction fees out there. It's what I use.

2) connect your bank account and transfer $ (I've hear some people say, don't invest unless you'd be able to survive this money completely vanishing, probably a bit extreme but it's theoretically possible)

3) Buy "SPY" from the NYSE, however much you're comfortable with. There will be search tools to find it. The full name is "SPDR S&P 500 ETF Trust" and it's currently trading at $207.50 (to help you make sure you've found the right one). Note that the price you buy at will vary slightly after you submit the buy, so have a tiny bit extra to cover that, .5% extra should be enough.

4) Hold it for at least a year. That way you only pay 5% taxes on it instead of having profits added to your normal income and paying that rate. Not sure about dividends... You might need to leave them in until you've owned it for a year.

Explanation of what SPY is http://www.wikinvest.com/stock/SPDR_Trust_Series_I_%28SPY%29

What's in SPY http://finance.yahoo.com/q/hl?s=SPY+Holdings

NeopolitanAfterglow · 2015-03-07T15:59:59+00:00

Be careful following mainstream investment advice. Valuations for mainstream asset classes are at historical highs, while macroeconomic conditions are at historically weak levels. The disconnect between the economy and asset prices is pretty much the largest it's ever been.

Watch tons of YouTube videos from a wide variety of sources and come to your own conclusions. The last thing you want is to get swept up in a megabubble.

[deleted] · 2015-03-08T03:49:29+00:00

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dongpal · 2015-03-07T19:28:03+00:00

betting

JaxSwagger · 2015-03-07T20:30:06+00:00

Aaron Clarey is a redpill blogger who has written what turned out to be an absolutely brilliant introduction to everything finance titled "Bachelor Pad Economics". It's a little on the shallow side, but that's because Aaron is condensing a wealth of research into 500 pages or so. If you were only ever going to read one book on finance in this day and age, I'd make it that.

NeopolitanAfterglow · 2015-03-08T04:44:15+00:00

ZeroHedge. They don't offer investment advice, but they basically report anything that's censored by mainstream financial media.

oldredder · 2015-03-08T00:21:53+00:00

www.zerohedge.com

reddit has zero on investing of value. You follow what's on reddit and you'll be bankrupt in no time.

1) do not invest too much in any one item/field

2) use scatterplots to measure what is the same but labelled as "not the same" so you have diversity

3) do not ever chase income/dividends - again, bankruptcy will happen very fast if you try this

4) do not use options until you are sure of the math

5) never use margin/leverage

6) always consider stored food, gold, medicine, silver (can be medicine .9999 fine coin/wires: colloidal silver production) as an investment that returns value more reliably in price increases than stocks

7) remember https://twitter.com/nanexllc the stockmarket is provably rigged, illegally front-run and rigged, so be ready to lose 100% of all money put there for any reason at all

Markets are currently running on all-time highs and like 2007 are due to slam down HARD. If you put your money into index funds that only move up with the market you WILL GO BANKRUPT. Period.

On a solid dip, say SPY=130 or 150 be ready to put some into FAS which is 3x of SPY but risk no more than $500 tops. As we approach the time for the crash VXX, UVXY and HVU (tsx) are optimal as they will slam up when the market goes down. It will be a wait. Until then do not add more than $500 into it, HVU being (20x) the highest leverage inverse to the market (not options: no time limit).

Invest in food first.

if in America look into the Roth IRA. If in Canada make sure you're using TFSA because all gains are tax free: you file no papers ever. You keep all profits as-is.

AEther_Flux · 2015-03-07T17:11:29+00:00

I bought the book "Stock investing for dummies" was the best $25 I ever spent. I knew jack shit about stocks beforehand and since then I have made a modest amount of money over the past eight months. Also a website called investopedia.com has a simulator that allows you to use fake money to "buy" real world stock to help you learn how to invest.

[deleted] · 2015-03-08T02:51:07+00:00

I second bogleheads. I've really liked motley fool. There's really not much to learn though. Passive low cost index etfs for life and you're golden. Add a Roth, roth 401k, HSA, and/or 529 and you'll have billions

Title	Learning to Invest
Author	redr0man
Upvotes	12
Comments	29
Date	March 7, 2015 2:05 PM UTC (11 years ago)
Subreddit	Posted in /r/askTRP
Original Link	https://old.reddit.com/r/asktrp/comments/2y8nfa/learning_to_invest/
Archive Link	https://theredarchive.com/r/askTRP/learning-to-invest.146770 https://theredarchive.com/post/146770

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