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How To Get Rich Quick
- Thread starter Mysterious Trainer
- Start date
robbery
that's all real rich people do anyway
that's all real rich people do anyway
Wrong.
1) Indexes are the safest ways to invest your money when the economy is doing well. They are already diversified for simpletons and generally consist of some of the least volatile stocks there are.
2) If any index fund is down, then chances are you aren't having much luck with any of your individual stocks unless you are a day trader.
3) If you are investing money long term, indexes are totally the way to go with minimal risk and a much better ROI than any sort of savings account or CD.
4) If you want to get rich quick, then yes, individual stocks are the way to go. I know you guys hear this everywhere, but you have to diversify. Invest in multiple stocks across different markets. Do a LOT of research on any stock before you invest. I don't care what that idiot Cramer says or what your friend said or what some blog said. You have to do the research yourself. Go to the SEC. Go to the FDA. Go to the real sources before you invest and/or sell. Pay attention to lawsuits, new drugs getting passed through the FDA, upcoming technologies, etc.
5) Make sure you get a good deal on your trades. If you're paying more than 6-7 per trade, then you are getting ripped off.
6) If you aren't investing at least 1,000 dollars, then the trade probably isn't worth making due to the trading costs (6-7 to buy and then 6-7 to sell)
7) You will never make money if you are scared to lose money. Be prepared to accept the fact that a stock will go down and you will lose money. It is going to happen.
8) By the same token, don't sell every time you begin to lose money. Research why the stock is going down before you sell. I've seen stocks go down 10% during the day and people panic and sell. Within the next week, the stock went back up 10% and gained an extra 5%. Why did it go down? False news report.
Shows how much I know. That was actually a great post, I feel like I've been so misinformed.
I just listen to the radio a lot and got used to hearing all the time: "The Dow Jones Industrial is up today....it's down today,,,, it's up again......it's down again", etc. I guess you're right: one has to do the actual research themselves.
Dont fall into that scam kiddies I did that and nothing hapenned :(
However I sold my soul and became a semi successful investor, and now I can afford to be condesending and buy 2 large pizzas while I type this on the Iphone 5. Details when I come back!
Edit: So I actually still have a desk job, took a loan from the bank, lived like a monk in my first year and the started investing, not trading. Investment is an exact science, trading is at best pattern analysis (which the best technique is Japanese Candles).
In general if a company earns well, has low debt, has constantly shown room for improvement in the last years, sells a product that people won't find useless anytime soon and most importantly, is trading very much below at it's fair price, buy dat shit.
Now the question is, how do you determine the fair price? Well, a few general indicators, such as how many dollars it earns yearly per share, the Price divded by the Earning being lower than 20 (P/E), having a high book value (usually means the price of everything the company has if it was sold out this afternoon), etc. I use a simple formula of 10x EPS + Book Value, which means everything the company has (minus the loans and liabilities which is the book price) plus the dollar worth of the shares if the company was trading at a fair price (P/E = 10).
Most importantly, set goals. Because if you are great at finding bargains and steals, but don't know when to sell them youll blame yourself for not cashing in and then give in to your emotions and start trading like crazy and taking any "hot tip".
TLDR: finding a good investing firm. Also read on Peter Lynch and Warren Buffet in the meantime and start investing small amounts until you get it right.
The thing with investing is it's not a short term thing. The Dow is going to be up and down daily, but if you look at it that way you're gonna wind up ripping your hair out of your head. The Dow has been steadily going up for some time now, so you can't get hung up on daily or even weekly losses. The same goes for your 401k/403b/other retirement savings plan - allocate your funds and let them ride for a while. Granted, you CAN make money by buying and selling constantly, but that takes much more research and effort to do effectively. For the casual investor (like most of us probably are) it's better to invest in some aggressive growth funds or packages.
Also, to build upon what Justin said, you should be paying close attention to how much you are being charged to maintain investments, not just the buy/sell/trade fees. Most companies charge you money for administrative costs so depending on how much you're investing you should choose your holder carefully.
Finally, if you plan to invest, save up a decent chunk of money to do it with. Investing with anything less than a couple thousand dollars isn't going to get you much in the grand scheme of things, and if you're young you have more important things to be doing with your money than locking it up in stocks and making it less accessible.
Actually most companies don't charge maintenance fees. I can't even think of one big company that does.
Perhaps it's just 401k related, but I know every one of my allocation funds has administrative fees yearly. Maybe I'm just thinking of something else and choosing the wrong word? I'm not an expert, so that's entirely possible. I just know there's more that goes into it than just the fees for buying and selling.
as a day trader I can say that these two points are spot-on
buy a toyota with faulty breaks
The stock market is NOT a get rich quick scheme. It is a way of turning a lot of money into potentially even more money for those with a large time horizon.
That being said, if you want to invest, I would second everything Justin8649 said. It is very easy to lose all of your money in any investment if you aren't careful, so take time to figure out what you are doing before investing in real money. Open a practice account online somewhere and document your rationale for making specific trades. Only once you have your feet wet would I start investing real money. Even then, I wouldn't do anything like buying on margin or option trading.
Or you could just get a minimum wage job and start saving...if there are such jobs available.
That being said, if you want to invest, I would second everything Justin8649 said. It is very easy to lose all of your money in any investment if you aren't careful, so take time to figure out what you are doing before investing in real money. Open a practice account online somewhere and document your rationale for making specific trades. Only once you have your feet wet would I start investing real money. Even then, I wouldn't do anything like buying on margin or option trading.
Or you could just get a minimum wage job and start saving...if there are such jobs available.
Those exams are hell, though, and breaking into the field is tougher than ever because more and more people are passing the exams. I considered becoming an actuary (I actually passed one of the first preliminary exams) but now I want to go into investing because I find that more interesting.
I'm doing a Virtual Stock Exchange Game in my finance class. I'm in 3rd place out of 55 students, but 1st place is ahead of everyone else by like 10%, God only knows how. (I should ask them for advice on the market.) The way I make my money is by looking at stocks that are on the up and up, buy like 5000 shares and then sell when they go up 1%, rinse and repeat. Obviously this could go horribly wrong but it works as far as this game is concerned
Alternatively, marry a rich black girl (read: Oprah or Beyonce)
It never hurts to put some money into real stocks if your parents support you (especially financially). My parents gave me some money to invest in the companies I had in my simulation for my finance class back in high school. Of course it wasn't a large sum of money but enough so it would be interesting to follow the market. Considering I put most of it in Apple Inc. back when it was only like 150 something per share, they certainly regretted not giving me more money from the start lol. Of course it doesn't always turn out this well but it was a good learning experience regardless how much I gained or lost.
