Help with investing

[Dr_No]

I'm just getting into investing, another way to put it is I am a "newbie".
If this was BOBISTHEINVESTORGUY.COM I would be in the newbie forum introducing myself.
I'm afraid to ask these questions having no knowledge,
unlike some people here.
I'm currently with TD Canada Trust..
So i'll be investing with TD waterhouse, anyone give me some pointers that buisnessman at TD bank wont?
I'd like to make a fair amount of money to put towards savings. I know there are risks with investing.

Anyone care to share their knowledge?
Thanks,
-No

 

[GROUCHO MARX]

Get an ETF of the whole market. Buy a little more at regular intervals.

This gets your feet wet. Every stock has someone touting it. Understanding the downside and knowing your appetite for risk will empower you.

 

[GROUCHO MARX]

Oh yeah, the interests of brokers and investment advisors are seldom in sync with your best interests.

 

[H2GURU]

Dr NO,
The best think to learn about investing is tou have almost no chance of beating the market. If you do just average, over the long haul you will exceed 92% of investors after COSTS are subtracted. Some will tell you of a 300% profit they turned on a stock, but funny how you never hear of their losers... hmmm. Read before you invest the first penny or you'l have subjected yourself to quick losses. Get your asset allocation plan right in your head and make a contract with yourself as it is tempting to break from it many times for some new "hot item". By the time you hear of something new, it is already old and most of the big profits have been turned. As a newbie you'll be "churned"... buy this - sell that, all the while the only monies made sre brokers' fees. I'll enclose a good link for you to read over. All books by John Bogle (founder of the Vanguard Group )will greatly improve your pile of cash. After you read this and still think you know more (everyone does!)then allow no more than 10% of your funds as "play money" unless you are indepently wealthy. Good Luck!

http://www.diehards.org/

"The only enemy of a good plan... is the pursuit of the perfect plan".

 

[Drew99GT]

My advice is to learn yourself and not pay an investment adviser. Even if you make 1 or 2% less every year without an adviser (which is not likely if you get your money into some good funds/ETFs), you'll still come out ahead after his fees are paid.

If you want to go for the long term and not even have to think about it, get into a total market index ETF like Groucho said. You'll beat 90% of investors that way in the long, LONG run.

Get into tax advantaged accounts like an IRA as well; don't know what Canada has in that regard.

 

[rokky]

I know nothing about investing and the stock market.
I do have an ex-workmate who does. This guy is no dummy and he is extremly honest.

He started researching on the net and subscribing to different methods and services. Don't ask me what. Although I have heard him talk about it for hours - it went in one ear and out the other.

I was helping him with his computer one day and he brought up one of his personal investment sheets. I was astonished to see his net worth(I was trying not to look ... honest).

I asked him later on what I could make with a hundred grand in a year. He said 30 to 50 grand with little risk. I was tempted to give him some money to invest for me but the wife put the kibash on it ... lol.

I've been trying to put more money into RRSPs - especially spousel. Pretty hard to beat the tax benefits and long term benefits of RRSPs. But they not show big or quick profits.

 

[oilyriser]

Your rate of return depends entirely on *your* skills and the amount of work *you* do, regardless of who you invest with.

 

[GROUCHO MARX]

"He started researching on the net and subscribing to different methods and services. Don't ask me what."
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Now that's a tease.

 

[rokky]

I would ask him but it would be a 2(or more) hour phone conversation and if someone lost money due to my second hand info I would be on a hit list for sure.

 

[Dr_No]

So how should I go about investing, what programs should I download to the computer?

 

[Oldmoparguy1]

Quote:

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So how should I go about investing, what programs should I download to the computer?

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You don't need any programs. Yahoo has a whole bunch of online info, including self help texts. Spend as much of your internet time as you can to reading and learning. Use the portfolio function to play stock trader. It's free and it is really helpful to understanding investing.. If you have access to CNBC or another financial TV program. Watch as much as you can. I did this for several months before opening an account and actually buying anything. When you actually start, go small. 5% to 10% of what you think you can invest. Your investment house will have a money market account where you can park your cash and earn some interest.

Good luck, don't be afraid to ask for help. There are some sharp people here.

Wayne

 

[CivicFan]

I see some losses in your future.

My advice would be if you are going to buy stocks, invest money that you can afford to lose. It will take time to learn the basics of stock valuation. There is a theory about efficient markets which says that the stocks are priced according to the publicly available information. Basically, the value of the stock is the present value of the future earnings. Things that affect the future earnings are the events that cause the changes in the stock price. The stockholders may initially overreact but usually things settle down very quickly.

If you want to avoid commissions, check zecco.com for free trades.

 

[GROUCHO MARX]

"I see some losses in your future."
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I see losses in everybody's future. They're unavoidable if you're playing this game.

 

[Dr_No]

Thank you everyone for the advice
I will certianly post more questions later on in the week.

 

[Papa Bear]

buy low ... sell high.