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Im a 22 year old community college student, and I am exploring options about investing. Any idea on where to start?? Should I get common stock or should I invest in tangables like gold and silver??
Also, how are the markets?? Are tehy any better than Augest 2008?
Don't listen to "tips" on the internet or TV, rather read books and learn all you can.
Learn the basics first - How each investment basically works.
Here is a search of the "Dummies" books on investments. Those should cover the basics of various types of investments, and teach you terms to search for to learn more... Product Search - For Dummies
Then once you read one of those and want to learn more, go to Amazon.com and search Books for a specific topic like "unit investment trusts", then you will find advanced books.
Avoid "How to Get Rich Quick" books sold in local book stores. They will have plenty of those types of books, but nothing on other investments like bonds.
Also you may be able to find a title, then search your local libraries to see if they have a copy (before buying). As you probably know being a student, books get expensive!
"Buy when fear is rampant and sell when greed reaches all levels of society in the current market." - Warren Buffett
You're never going to feel 100% confident investing, so don't wait for that moment. I don't care if a person has been investing 30 years, they don't know everything about the markets. It's a learning process and as you learn from other people and your own mistakes, you'll begin to develop and perfect your own strategies. Some basic tips for beginners...don't be impatient, avoid speculative plays, throw emotion out of your decisions, and create a entry and exit plan in the event of an emergency. Watching Jim Cramer (Mad Money) is actually a decent way to learn because he makes it easy to understand and entertaining. However, he has made numerous lethal mistakes, so don't buy a stock simply because he recommends it. I would stick to solid companies since you are just starting out. Yahoo Finance shows the average 12 month target price for stocks according to analysts. Once again, don't buy just because the average analyst believes the stock will increase 30% within 12 months. Once you choose your stock(s), monitor them every day for major news and act accordingly. We are currently in a bull market (up market).
Im a 22 year old community college student, and I am exploring options about investing. Any idea on where to start?? Should I get common stock or should I invest in tangables like gold and silver??
Also, how are the markets?? Are tehy any better than Augest 2008?
Sean
First, I want to congratulate you for Investing at your young age instead of having to have every new toy that comes along! Way to go.
Silver because it's so affordable and of course I mean take physical possession of your coins, never trusting anyone to hold it for you, except I mean a parent you are very close with, etc. If you are loaded with money and I do not wish to know, just being rhetorical, yes, buy some gold coins.
Against the Gods, The Remarkable Story of Riskby Peter L. Bernstein
For individual stocks and strategy, look to IBD 50, and listen to podcasts at Garyk.com Business TalkRadio.net - The Investor's Edge
(especially when his helper Brian does the program (Like March 21, 22, 23... last week) Good basic lecture / reality check.
At the MOMENT markets are very high. THAT is why you get very discplined and "dollar-cost-average" Thus you buy more when prices are lower, giving you a hedge being under median price)
You make your money when you buy (as with any investment) and you HAVE IDENTIFIED a sell point BEORE you buy (And you have stops / discipline to GET OUT).
I certainly don't recommend gold / metals... they are trading tools, but not investments.
Get a strategy and TRACK it and don't change (until proven better) DON"T use multiple strategies.
Proabably best off using No-Load Mutual Funds @ Vanguard or Fidelity, tho I prefer similar ETF's for active trading. BUT to make $$ you have to be disciplined and active.
Read the Economist and heed international news.
Buy a 4 plex... diversify your investments, NOW is a great time to buy bargain real estate. in 15 yrs it's paid for, and you sit in Tahiti and collect rent.
Having read that book, I can second this recommendation. It's a good introduction to the basics of stocks and bonds, earnings and P/E analysis, portfolio policy, stock selection, and of course "Mr. Market." It's long, but an easy read.
First, I want to congratulate you for Investing at your young age instead of having to have every new toy that comes along! Way to go.
Silver because it's so affordable and of course I mean take physical possession of your coins, never trusting anyone to hold it for you, except I mean a parent you are very close with, etc. If you are loaded with money and I do not wish to know, just being rhetorical, yes, buy some gold coins.
Thanks. I still like to have gadgets, but I have think long term.
Also, how are the markets?? Are tehy any better than Augest 2008?
Sean
Because of comments like this you need to keep thinking and not invest. Like everyone else said you need to do research before you start betting money.
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