Yazoo
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Looking To Invest In The Stock Market. Advice?

Sun Aug 22, 2010 8:08 pm

Hey Guys,

I have some money saved up that I would like to invest in the stock market. Have a few stocks in mind but would like to know what you guys like at the moment as well or other high-yielding investment ideas. Something to hold for 6 months to a year?

Yaz
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johns624
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RE: Looking To Invest In The Stock Market. Advice?

Sun Aug 22, 2010 8:14 pm

Unless you are knowledgable and experienced, just buy an index fund and be done with it.
If you're only in it for a few months, the stock market isn't where you want to be.
 
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Tugger
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RE: Looking To Invest In The Stock Market. Advice?

Sun Aug 22, 2010 8:28 pm

Quoting Yazoo (Thread starter):
I have some money saved up that I would like to invest in the stock market. Have a few stocks in mind but would like to know what you guys like at the moment as well or other high-yielding investment ideas. Something to hold for 6 months to a year?

Study up on what you want to invest in. Study the market the stock is in, and study the market overall. Remember to not "chase the market", buying "market favorite", high priced stocks because you are afraid you will miss the boat on them. More often buy stocks when they are down (after studying and determining if they are a good buy, if the fundamentals are sound).

There really is no easy advice to be successful in the market. It takes effort and patience and an ability will to risk loss. Many people lose by being simplistic or thinking there is a "get rich quick" way to work the market.

Six months is a worthless investment time frame (and dangerous because it mean you will likely pursue a "get rich quick" scheme that will likely fail).

Tugg
I don’t know that I am unafraid to be myself, but it is hard to be somebody else. -W. Shatner
 
fr8mech
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RE: Looking To Invest In The Stock Market. Advice?

Sun Aug 22, 2010 8:40 pm

Quoting Yazoo (Thread starter):
Something to hold for 6 months to a year?

Try a CD. Of course, there isn't a whole lot of money there.

Very few people make money quickly in the market. Those that do buy in massive volumes and can make (or lose) thousands with the movement of a few points in a stock.
When seconds count...the police are minutes away.
 
Rara
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RE: Looking To Invest In The Stock Market. Advice?

Sun Aug 22, 2010 8:40 pm

Quoting Yazoo (Thread starter):
Something to hold for 6 months to a year?

Not the stock market then! Unless you're a genius, you gotta have a good bit of money to spare and couple of years' time. It's important that you don't need the money, i.e. that you can do fine without it. Otherwise you won't have the coolness and the stamina to hold out losses, and the risk gets to high that you'll have to sell at a loss.
Samson was a biblical tough guy, but his dad Samsonite was even more of a hard case.
 
LAXintl
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RE: Looking To Invest In The Stock Market. Advice?

Sun Aug 22, 2010 8:43 pm

Lots of opportunities out there, both for short term trades, and for long term investments.
Many solid companies and sectors are quite under valued.
From the desert to the sea, to all of Southern California
 
fr8mech
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RE: Looking To Invest In The Stock Market. Advice?

Sun Aug 22, 2010 8:50 pm

Quoting LAXintl (Reply 5):
Lots of opportunities out there, both for short term trades, and for long term investments.
Many solid companies and sectors are quite under valued.

Are you willing to share, or just making an opinion statement?
When seconds count...the police are minutes away.
 
Yazoo
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RE: Looking To Invest In The Stock Market. Advice?

Sun Aug 22, 2010 9:18 pm

Thank you for the advice guys, really insightful!

Just to clear something out, I'm already going in with the mindset that I can afford what I'm putting into the market since It is only my risk capital (and I'm still young, so I can still make it up again if I lose it)

Also, I'm looking to buy Citi shares and hold on to them for a couple of years, looks like a great buy at this time. What do you think?
Purple Pride!
 
LAXintl
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RE: Looking To Invest In The Stock Market. Advice?

Sun Aug 22, 2010 9:19 pm

Oh I can list tons of companies, but this is not an investment board. However its not hard to find them with a little research and listening the news.
The markets today are skittish, even as companies post strong earnings their stocks get hammered, or sit in neutral.

Even if you don't want to play the individual stock game, look at broader market average vehicle. Today the dow is like 10,200 some 35%+ off its 14,000 high. Sooner of later the market will be above 14,000 so if you are longer term investor park your money and check back in a few years.

Personally the years since 9/11, and the most recent recession have created incredible once in a life time opportunity to load up at bargain prices.
From the desert to the sea, to all of Southern California
 
mickster
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RE: Looking To Invest In The Stock Market. Advice?

Mon Aug 23, 2010 4:57 pm

I am a little bit puzzled because initially you said your horizon was 6 to 12 months but then that you would be willing to hold Citi's shares for 3 to 4 years ...

Honestly, if you would like to invest on the stock market, you need to devote enough time not only to initially analyse the stock and its market but continue doing that on a regular basis. Or, of course, rely on third-party research, if you have access to such. If you don't have the time for analyses or the money to pay for research, then just buy an ETF - sectoral, regional, whatever you think has growth potential. I personally favour iShares.

Speaking from personal experience, I would say that I am quite risk averse and would consider investing in equities only if I see a lot of potential in a stock. I spent a lot of time analysing THYAO:TI during which time I missed the bottom but I still decided it's good to get in when the stock was just below 4. Now I'm a happy minority shareholder and don't plan on getting out any time soon.
 
wingman
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RE: Looking To Invest In The Stock Market. Advice?

Mon Aug 23, 2010 7:37 pm

I'll pass on the best advice I ever got (and which to my great chagrin I rarely followed):

Buy low and sell high.
 
MadameConcorde
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RE: Looking To Invest In The Stock Market. Advice?

Mon Aug 23, 2010 7:59 pm

I would say buy gold instead of buying stocks.
The value will not depreciate.
There was a better way to fly it was called Concorde
 
rabenschlag
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RE: Looking To Invest In The Stock Market. Advice?

Mon Aug 23, 2010 8:29 pm

The stock market (and the price of each individual stock) reflects the accumulated knowledge of all people who participate. So if you are planning to engage in stock picking, you are more or less betting that you are smarter than the knowledge of all market participants at that time. On average, this will not work (unless you have insider knowledge).

Buy an index fund.

[Edited 2010-08-23 13:31:32]
 
Rara
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RE: Looking To Invest In The Stock Market. Advice?

Mon Aug 23, 2010 8:55 pm

Quoting MadameConcorde (Reply 11):
I would say buy gold instead of buying stocks.
The value will not depreciate.

What makes you so sure? The value more than doubled in the last years, who's to say it won't go back to half its current value?
Samson was a biblical tough guy, but his dad Samsonite was even more of a hard case.
 
Kiwirob
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RE: Looking To Invest In The Stock Market. Advice?

Mon Aug 23, 2010 9:03 pm

Quoting MadameConcorde (Reply 11):
I would say buy gold instead of buying stocks.
The value will not depreciate.

gold goes up and down like a yoyo, at the moment it's up, who knows where it will be next year or even next month.
 
DfwRevolution
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RE: Looking To Invest In The Stock Market. Advice?

Mon Aug 23, 2010 9:28 pm

Quoting Rabenschlag (Reply 12):
The stock market (and the price of each individual stock) reflects the accumulated knowledge of all people who participate. So if you are planning to engage in stock picking, you are more or less betting that you are smarter than the knowledge of all market participants at that time. On average, this will not work (unless you have insider knowledge).

Frankly, that's ridiculous unless you just buy and hold without engaging in any further research of the market. It doesn't take insider information to know what industries are growing and shrinking. Even with clumsy timing you can still take serious advantage of an industry that gets hot.

Take aerospace, for example. Aerospace stocks outperformed many industries this decade, especially during the boom in aircraft sales from 2004-2008. Just as Boeing (BA) was starting to seriously pitch the 7E7 in May 2003, the stock was trading at about $25 per share. Fast-forward one year, and the stock is up to $45 - a 180% increase. With knowledge that is entirely public, you would then know that aircraft orders have upticked, numerous major airlines have RFPs outstanding, and Boeing arguably has the two hottest long-haul aircraft on the market with the 787 and 777LR. If Boeing were to win just half, their backlog would expand by billions of dollars. Might be worth investing a bit there. By 2007, Boeing is trading at $105, a 233% increase (33% APY) if you entered the market in 2004. But of course, we know Boeing hit delays with the 787 shortly thereafter and the stock price began to slide. If you insisted on a 15% APY on your original investment - better than most index funds - you could have held on to BA for 10 months from the time it peaked before it went below $68 per share.

I'm telling you this story, because it's exactly what I did in 2004. I entered late, I left late, but I still outperformed my index funds without any insider information.

[Edited 2010-08-23 14:30:37]
 
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airportugal310
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RE: Looking To Invest In The Stock Market. Advice?

Mon Aug 23, 2010 10:11 pm

Quoting Rara (Reply 13):
What makes you so sure? The value more than doubled in the last years, who's to say it won't go back to half its current value?
Quoting KiwiRob (Reply 14):
gold goes up and down like a yoyo, at the moment it's up, who knows where it will be next year or even next month.

This is true; there are many out there that speculate gold is riding a wave now, but will come back down in the next couple of years.

Here is a question: Does anyone here think that buying BP stock now is a good idea? It is low, and I assume (in the spirit of all that is all stock market) that it will eventually rise as the company rebounds.
I sell airplanes and airplane accessories
 
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Tugger
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RE: Looking To Invest In The Stock Market. Advice?

Mon Aug 23, 2010 10:46 pm

Quoting Airportugal310 (Reply 16):
Here is a question: Does anyone here think that buying BP stock now is a good idea? It is low, and I assume (in the spirit of all that is all stock market) that it will eventually rise as the company rebounds.

That's always the question, and the problem (and wonder) of the stock market: Is this the right company/stock/commodity to buy, and is this the right time (in other words will the price go up)?

Should you buy BP now? back in November 2009 should you have bought Ford? Would you have?

Tugg
I don’t know that I am unafraid to be myself, but it is hard to be somebody else. -W. Shatner
 
shaq
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RE: Looking To Invest In The Stock Market. Advice?

Tue Aug 24, 2010 12:21 am

Quoting tugger (Reply 17):
Should you buy BP now? back in November 2009 should you have bought Ford? Would you have?

Tugg

Im not an expert in stock market, but I think is a good idea .
BP has demonstrated that they have money !
If in the next quarters , they report profits , stocks will go up (probably)
Studying hard, for flying right!
 
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Tugger
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RE: Looking To Invest In The Stock Market. Advice?

Tue Aug 24, 2010 12:40 am

Quoting SHAQ (Reply 18):
(probably)

Famous last words   

Seriously, sure, BP has a good chance to survive and prosper you just never know.


Oh and it just occurred to me:

Quoting Yazoo (Thread starter):
Looking To Invest In The Stock Market. Advice?

If you are asking HERE, on this site, for investment advice..... Maybe you would be better off not investing.....  

Tugg
I don’t know that I am unafraid to be myself, but it is hard to be somebody else. -W. Shatner
 
Rara
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RE: Looking To Invest In The Stock Market. Advice?

Tue Aug 24, 2010 8:21 am

Quoting Rabenschlag (Reply 12):
The stock market (and the price of each individual stock) reflects the accumulated knowledge of all people who participate. So if you are planning to engage in stock picking, you are more or less betting that you are smarter than the knowledge of all market participants at that time. On average, this will not work (unless you have insider knowledge).

That's true for one part, but you're leaving out that stock value grows with the general economic development. So if the world economy grows by 3% each year, expect the average return from stock market investment to be 3%. If you're smarter and luckier than most, your return will be higher (often much higher), and if you're less informed and less lucky, it will be lower, or you will lose money. But there is a "baseline return" (which is why the investor always wins in the long term), and with some good decisions here and there, you can reasonably expect a nice profit over the years, which makes the stock market so attractice. As pointed out above, you can really only make use of it if you've got money to spare, a couple years time, stamina, and the will to be patient and spread your investment. Everything else is simply too risky for the average joe.

Quoting DfwRevolution (Reply 15):
I'm telling you this story, because it's exactly what I did in 2004. I entered late, I left late, but I still outperformed my index funds without any insider information.

Sorry, but stories like this are purely anecdotal. Sure it looks all rational and self-evident in hindsight, but there is no stock of which everyone knows that it will go up in the future. That's just not how the stock market works - if there were, people would already be buying it, and it wouldn't be so low anymore.
Samson was a biblical tough guy, but his dad Samsonite was even more of a hard case.
 
rabenschlag
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RE: Looking To Invest In The Stock Market. Advice?

Tue Aug 24, 2010 8:28 am

Quoting DfwRevolution (Reply 15):
Frankly, that's ridiculous unless you just buy and hold without engaging in any further research of the market. It doesn't take insider information to know what industries are growing and shrinking. Even with clumsy timing you can still take serious advantage of an industry that gets hot.

See, when you apply economic market theory to the stock market, thats exactly what you get. If the information is public, it is already reflected in the price of a given stock. You really need insider information. That is why stocks picked by chimpanzees perform as well as stocks picked by relatively knowlegeable humans. And that is why the majority of funds does not beat the market.
 
rabenschlag
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RE: Looking To Invest In The Stock Market. Advice?

Tue Aug 24, 2010 8:45 am

Quoting Rara (Reply 20):
That's true for one part, but you're leaving out that stock value grows with the general economic development. So if the world economy grows by 3% each year, expect the average return from stock market investment to be 3%. If you're smarter and luckier than most, your return will be higher (often much higher), and if you're less informed and less lucky, it will be lower, or you will lose money. But there is a "baseline return" (which is why the investor always wins in the long term), and with some good decisions here and there, you can reasonably expect a nice profit over the years, which makes the stock market so attractice. As pointed out above, you can really only make use of it if you've got money to spare, a couple years time, stamina, and the will to be patient and spread your investment. Everything else is simply too risky for the average joe.

Fully agreed. But stock picking is about beating the maket (i.e. being better than the baseline return), and buying index funds with low or no management costs is about harvesting the baseline return.
 
bill142
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RE: Looking To Invest In The Stock Market. Advice?

Tue Aug 24, 2010 8:52 am

Play the penny stocks. Just make sure you do your research first other wise you could get burnt. I can't stress it enough, research, research, research.
 
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NZ107
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RE: Looking To Invest In The Stock Market. Advice?

Tue Aug 24, 2010 9:46 am

I'm not convinced that this is the best time to enter the market. It's so volatile and there is word that USA's heading for a double-dip recession and if that happens, stocks are going to fall again. Wait for the rock bottom and that'll be the buying point. It all depends on what return you wish to get out of it for a certain level of risk. You'll be *relatively* safe in buying blue chip stocks (the top companies listed) although their returns aren't as good as some emerging companies may prove to be.

It might be best to take a look at ETFs. These are diversified for you by fund managers. You'll want to research as much as you can on these but I know CNBC can give you information and so can the likes of investopedia.com.

Maybe you could start by trading 'virtual' stocks on something like Yahoo or Google Finance to get a feel for things.

Quoting SHAQ (Reply 18):
Should you buy BP now? back in November 2009 should you have bought Ford? Would you have?

Tugg

Im not an expert in stock market, but I think is a good idea .
BP has demonstrated that they have money !

Such decisions require thought about how much debt they've taken on board for this whole situation. It all adds up and reduces returns available to shareholders. Maybe being a bondholder in BP mightn't be too bad?
It's all about the destination AND the journey.
 
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nighthawk
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RE: Looking To Invest In The Stock Market. Advice?

Tue Aug 24, 2010 10:21 am

Quoting Airportugal310 (Reply 16):
Here is a question: Does anyone here think that buying BP stock now is a good idea? It is low, and I assume (in the spirit of all that is all stock market) that it will eventually rise as the company rebounds.

Shortly after the disaster in the GOM, I looked at BP, and decided it would be worth investing in them, the share price was plummeting, so I waited until i felt they had hit the bottom, I bought at 447p, just as they fitted the cap on the well. Sadly it didnt work, and the price continued to fall, hitting 300p. That was probably the time to buy, its now up at 380p, and touched about 440p briefly. I think in the long run it will come back up, it used to be at the 600p mark, eventually all will be forgotten about and the share price will more accurately reflect the companies value.

I have been investing for about three months now, mainly concentrating on oil stocks on the UK AIM. If you can find a small oil exploration company with no finds and just a few drilling licenses, their share price will be pennies. As soon as they strike oil, the price will increase significantly. Rockhopper had a few licenses in the Falklands, and were valued in the pennies. When they struck oil, their share price increased 8 fold! Sadly I decided to invest in Desire instead, and only made 40% purely on the back of their rivals hitting oil.

My best investment so far has been EnCore, I invested in them on a wednesday, the next monday they announced they had found one of the largest oil discoveries in the North Sea for decades, and they increased 50%. The share price has now crept up further, and today I am up 83%, with them currently drilling a new field, with results expected in the next few weeks, which should boost the price further.

I have a few other holdings which are drifting about a bit, while waiting for news of drilling operations. I had my first loss last week, I bought Kea on the back of a friends recommendation. They failed to find oil, and the share price plummeted 40%.

Share dealing is a gamble, especially with oil stocks. You can potentially make some large sums, but can also lose a fair chunk too if you are not careful. Always do your own research, and dont invest just because someone on a forum tells you to (chances are they are just saying it to try and boost the price so they can offload their shares).

I would recommend you choose your investment account wisely, shop around and find one that offers decent transaction fees. If you are planning to invest long term, find one that doesnt charge quarterly account fees, most do, but there are some that do not (www.iii.co.uk do not charge quarterly fees). Bear in mind that you will pay a transaction fee when you buy and sell, typically £10-£15 each. Factor that in when you decide how much to invest - you ar elooking at £20-30 in fees to trade, so if you are only investing £100, then you need the share price to increase by 20-30% just to break even! I personally wouldnt bother investing less than £500, my account charges £10 a trade, so I need a 5% rise to start making a profit.
 
MadameConcorde
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RE: Looking To Invest In The Stock Market. Advice?

Thu Aug 26, 2010 3:49 pm

hmmm... the Hindenburg Omen is in the books... I would be watchful about buying/owning stocks
It has flashed twice in the last few days...

UBS Financial Services Director Art Cashin says that we’ll know within 3 or 4 weeks whether the dreaded Hindenburg Omen, a set of market factors that precede a stock market collapse, will unfold as many are now predicting.

http://www.cnbc.com/id/15840232?video=789010961

Apparently, when a large number of stocks see both a record high and record low in a short amount of time, it is a predictor of a Market Crash.

 
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