How To Learn About Stock Markets?

Discussion in 'Money Matters' started by Anusha2917, Feb 1, 2021.

  1. Laks09

    Laks09 Moderator Staff Member IL Hall of Fame

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    This is a great example of a systematic investment plan! You put away a small amount of money in a specific investment vehicle over a long period of time and wait it out. It's like a retirement savings accounts but with a smaller amount of money. The good thing about having such a plan is that you do put away a small amount of money every month, regardless of your other investments. You have to hold on to this investment and continue to invest in it monthly for a number of years but it's very gratifying. The only downside is that there is no rush of day trading. It's a long drawn process so patience is key. It's good to keep the money in it long term without worrying about fluctuating markets.

    For people who are just starting out, having a different bank account and start sending a small amount from each paycheck to that account is also akin to this. Once a year or so, invest that in something. Forget about it. In ten years, if invested right, it will be a sizeable saving.
     
  2. lavani

    lavani Platinum IL'ite

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    Please note, you do not have to buy stocks. you can buy ETF like VTI or QQQ or SPY. when after few years the amount builds up, if you feel you like a particular stock you can reuse that.

    a user asked for Telecom growth, sorry i do not have much info. but if you feel the results are not good after 2 quarters, you can transfer those assets to another script. I feel telecommunication companies are slow growth even if 5g, as most of the communication is reduced to online and zoom. the APP development market gave a huge uplift . Att bought 1 media company too, but still Netflix is king .

    my H tried day trading, he told he will take 2k and see what happens. he made around 5 k in 6 months . but he told the amount research and stress he went through was not Worth it.

    you make maximum money from the 8 hour job only, if you can afford to spend time in learning it is very good but half effort and taking tips is dangerous. then rather up your skills and get a better paying job.
     
  3. lavani

    lavani Platinum IL'ite

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    valid point . only thing i would add, with new social media, it is dangerous. one should invest what he or she can afford to loose and also newbie with jobs should be passive on long run.

    USA you can buy major ETFs. once you mature up, then look like buffet on business like microsoft - it has always been there. it was all dull or enjoying it monopoly till 2007 or something. then the App market came and phone, it lost the game. then slowly caught in the cloud.

    so if a company is venturing and trying , that means it is growing. such companies are good to buy.
     
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  4. lavani

    lavani Platinum IL'ite

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    no i will not agree to this. i am very sorry, if it sound offensive, this is exactly the marketing social media does. AMC, GME, are ones which newbee should not run, if they do not know how to read cash flow , short selling .

    if that is the case, in 2020. chipotle was 300 , it went to 1500. shopify was 300 or something. 2019 , tsla was in 100s. it became 1000. at that time whole world was scared. if you had your plan where you could buy 1 script with good business for 1 to 2 years continuous, that would made good money.
     
  5. lavani

    lavani Platinum IL'ite

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    if you can read this book - still holds true .

    https://www.amazon.com/One-Up-Wall-Street-Already/dp/0743200403

    then build up on that - investopedia has tons of information
     
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  6. Hopikrishnan

    Hopikrishnan Platinum IL'ite

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    "Trading Places" <== is an old movie with a couple of stars from Saturday Night Live television show. Towards the end of the movie, there is a scene about Commodity Trading, and how Futures Contracts of a food-item are traded.

    Information Asymmetry <== Transactions (give and take between two parties) is affected when this exists.

    The accent could be difficult/annoying, but this is a good explanation:
     
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  7. Rihana

    Rihana Moderator Staff Member IL Hall of Fame

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    Lavani, really liked the suggestions. They are what I have read in many places and are good ground rules to follow for the just-starting investor.

    Compiling a list of tips from the posts for my own reference:
    - invest the money that you do not need for (almost) forever.
    - buy stocks that you know and hear daily
    - do not overcomplicate : )
    - the learning curve and world of finance is huge, do not get lost in over learning
    - imagine buying 1 of netflix amazon every month for the past 10 years
    - day trading or similar ventures: check if the gains are worth the research and stress
    - most of us make maximum money from the 8 hour job only,
    - if you can afford to spend time in learning about stocks it is very good but half effort and taking tips is dangerous.
    then rather up your skills and get a better paying job.

    My one addition to it is don't start absorbing gyaan from just about anybody who has years of experience or a successful track record. That can lead to overwhelm. An expert in a field need not be a good teacher too.
     
  8. Hopikrishnan

    Hopikrishnan Platinum IL'ite

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    This happens when successful-expert becomes too much of an enthusiastic cutlet.
     
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  9. Laks09

    Laks09 Moderator Staff Member IL Hall of Fame

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    one of those lemons. I’m trying to recover purchase price from 15 yrs ago.

    An FD seems better!
    I’ve tried to sell multiple times but without anyone living in the same city and zero interest in the area it’s just difficult.
     
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  10. Laks09

    Laks09 Moderator Staff Member IL Hall of Fame

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    People usually don’t share all their trading secrets. It’s always a small picture of what they actually do.

    One of the things I’ve learned from experience is to keep the expectations realistic. It’s not realistic to expect a stock price to go from 4 to 400 in a year just because a similar offering did so last year. It is also not realistic to expect your entire portfolio to grow. Which is why a diverse portfolio really helps. There will always be some worthless investments and some that make it worthwhile.
    Personally, I don’t like to have all retirement/trading/savings etc in one place. My DH says I’m crazy but between multiple accounts, I’ve realized some index funds did better over the others and who charges more for the same service etc. Our FA thinks it’s a good idea so I must have done something right!
     
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