How to start investing

Forum|Forum|7 years ago
October 27, 2018
13 replies
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I am just starting out and have a pretty decent credit score. I’m also starting save up some money but I like to plan ahead. What are a few things you guys would suggest to start investing? What should I look for?

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marketstar99

Employee

The following summary from the article “Investment Advice to a World Champ” by prominent investment analyst Dr. Steve Sjuggerud is not only great advice for beginners, but is also a good reminder to the more experienced:

1. Nobody will care more about your situation than you, so never hand off your finances completely.
2. There is no magic bullet or shortcut. (The "hot tip" doesn't exist.)
3. If you don't understand it, don't buy it. (If it sounds too good to be true, it probably is.)
4. Buy investments that are cheap, hated, and in the start of an uptrend.
That's it. Remember these points, and take control of your wealth.

Note: To help determine what is “cheap, hated, and the start of an uptrend” see bigcharts.com. Just type your ticker symbol in the upper left field, click “Draw Chart” and you will see past and current market direction.

Wishing you all the best of good buys,

Marketstar

MrsTapia

I would like help investing my tax refund.

GrandDad

If you are getting a tax refund! You are not doing it right! You should be investing that money Monthly. that helps you study what you are investing in and if you see that what you are doing is not right for you then change it! Never invest in anything you do not know. there are a lot of good companies that are priced at all investment levels. Find a good company and learn all you can find out about it and the reason the price may change and by how much. Then invest in it or find another. There will always be good deal. ETF and Mutual funds are set up to insure you will not loose to much but you will not make very much either but they are safe. If you have to pay taxes at the end of the year most individual stock you can cash out in less than a week. the federal gov. does not pay you interest on any money they hold for you to file at the end of the year! Good luck

Bsch4477

Employee

1. Have 3-6 months of living expenses in a savings or money market account.
2. Max out contributions to any employer retirement plan you have and start an IRA.
3. Determine your risk tolerance by using an asset allocation calculator you can find online from institutions like Vanguard and Fidelity.
4. Based on what your allocation is, invest in low cost index stock and bond funds.
5. Rebalance your allocation when it varies by 5 percentage points so you will be forced to sell high and buy low.
6. Ignore advice to make a quick killing in an investment you don’t understand

7. Don’t buy an asset because a neighbor, friend, or relative told you how great it is.