How to begin investing in the stock market?

rmorse said:
Trade, maybe, invest, I think it is always a good time to get started. I know someone that last year cashed in a mutual fund they bought 25 years ago in their IRA. They put in around $58,000 and now it's worth ~$250,000. That is a compound return of around 6%.
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Good comment;
sounds like not much of a mutual fund, but good job overall[250k]. Some periods dont do as well as others.NOT a prediction..............................................
 
Assuming you know financial statements inside and out, IMHO, if you're a conservative type, find 4 blue chip companies, with a respectable payout ratio, paying monthly dividends, and, carefully average down if the opportunity arises.:cool:
 
Jones75 said:
Assuming you know financial statements inside and out, IMHO, if you're a conservative type, find 4 blue chip companies, with a respectable payout ratio, paying monthly dividends, and, carefully average down if the opportunity arises.
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The problem with that is that over time, many "blue chips" have turned sour. Eg IBM, Kodak, GM, C, AIG, etc. Hard to tell who will be next....
 
rmorse said:
The problem with that is that over time, many "blue chips" have turned sour. Eg IBM, Kodak, GM, C, AIG, etc. Hard to tell who will be next....
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I agree, probably could have used the term diversify with very strong emphasis, just in case things start to go awry.
 
I'm just saying that if you choose to be a stock picker vs broad based funds, you have to keep up with those companies and review your choices on a regular bases. Traders do this all the time but investors get lazy.
 
rmorse said:
Trade, maybe, invest, I think it is always a good time to get started. I know someone that last year cashed in a mutual fund they bought 25 years ago in their IRA. They put in around $58,000 and now it's worth ~$250,000. That is a compound return of around 6%.
More...
I think investing these days is also highly unprofitable, of course, it depends on the situation, but, in general, its's true. Look at the market most investors are losing tons of money these days. You need to be very careful when you enter the market.
 
I'd recommend to start with a book about investing.

The Intelligent Investor by Benjamin Graham is great.

Warren Buffett says it's the best book about investing

 
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