New to Stock Investing

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
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illinoisguy
Posts: 28
Joined: Fri Feb 14, 2020 2:45 pm

New to Stock Investing

Post by illinoisguy »

I want to start investing in stocks but have no prior experience besides my 401k account. This will be more of a hobby/play money rather than investing for retirement so I am not opposed to risk/reward stocks. I have a few questions:

1. What is the minimum I need to start buying stock? $50? $100? More?
2. Assuming a smaller initial investment as I indicated in #1, what would be a good place to start buying stock (site)?
3. What are good sites, forums, books etc. to start reading?

Thanks in advance!
ksualum
Posts: 143
Joined: Mon Jan 15, 2018 3:01 pm

Re: New to Stock Investing

Post by ksualum »

illinoisguy wrote: Tue Jan 19, 2021 1:30 pm I want to start investing in stocks but have no prior experience besides my 401k account. This will be more of a hobby/play money rather than investing for retirement so I am not opposed to risk/reward stocks. I have a few questions:

1. What is the minimum I need to start buying stock? $50? $100? More?
2. Assuming a smaller initial investment as I indicated in #1, what would be a good place to start buying stock (site)?
3. What are good sites, forums, books etc. to start reading?

Thanks in advance!
1. I think like a dollar is enough. I use Charles Schwab which has no account minimums
2. I use Schwab others like Fidelity or Vanguard. I don't think you can go wrong with any of those
3. I would start with If you can by William Bernstein, or the Bogleheads guide to Investing. You found this forum so kuddos to you.
A lot of the Bogleheads wikis have really good info about asset allocation etc . . .

4. You didn't ask this question but this really isn't the website for hot stock tips or recommendations on individual securities.
Most of us are "lazy three fund investors". I mainly use just VXUS and VTI for my stock investing (with a very small amount of individual stocks)
and then I have a total bond fund.
DesertDiva
Posts: 1063
Joined: Thu Mar 01, 2018 12:49 pm
Location: In the desert

Re: New to Stock Investing

Post by DesertDiva »

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MinnGuyInvesting
Posts: 361
Joined: Fri Dec 11, 2020 9:24 am

Re: New to Stock Investing

Post by MinnGuyInvesting »

illinoisguy wrote: Tue Jan 19, 2021 1:30 pm I want to start investing in stocks but have no prior experience besides my 401k account. This will be more of a hobby/play money rather than investing for retirement so I am not opposed to risk/reward stocks. I have a few questions:

1. What is the minimum I need to start buying stock? $50? $100? More?
2. Assuming a smaller initial investment as I indicated in #1, what would be a good place to start buying stock (site)?
3. What are good sites, forums, books etc. to start reading?

Thanks in advance!
1&2 - Any online brokerage should be suitable for your needs. I don't know many that have much for minimums. (Robinhood obviously is popular with the kids these days). You can probably start with next to nothing. ($50).

3. Tons of good info out there. I learned by reading fool.com back about 20-25 years ago.

My recommendation would be to figure out what type of investor or trader do you want to be. Do you want to buy and hold for over a year, or are you going to try and be a day-trader and buy/sell frequently. They are two vastly different strategies.

Youtube has a ton of videos of people who will tell you what to do. But do as much research as you can to avoid mistakes. (You will make mistakes).
Index ETF's 41% |ARK Funds 39% | AAPL 5% | TSLA 3% | GOOGL 1% | AMZN 1% |Other stocks 5% | BTC/ETH 5% | | | Tracking my porfolio: https://www.bogleheads.org/forum/viewtopic.php?p=5745280#p5745280
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FelixTheCat
Posts: 1999
Joined: Sat Sep 24, 2011 12:39 am

Re: New to Stock Investing

Post by FelixTheCat »

I'm curious.

There is small, mid and large cap stocks. Growth and value stocks. There are eleven sectors in the S&P 500. Do you have a specific plan or would you simply dart board it?

The reason I ask is I have an M1 account that sits idle. I wanted to invest in individual stocks (small amount) I like but I could never figure out a goal. So I keep throwing my money into total stock market index.
Felix is a wonderful, wonderful cat.
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arcticpineapplecorp.
Posts: 7587
Joined: Tue Mar 06, 2012 9:22 pm

Re: New to Stock Investing

Post by arcticpineapplecorp. »

there's really only two ways to invest in stocks:
1. buy stocks individually
2. own the market

once you figure that out (hint: own the market.) then you free up alot of time otherwise spent researching (and following) individual stock.

what to do with the free time?

think about your asset allocation.

why?

that's the main driver of your returns. Gary Brinson said 93.6% of the returns (generally, for the pension funds he studied anyway) came from asset allocation rather than security selection or market timing. Source: https://www.tandfonline.com/doi/abs/10. ... .v42.n4.39

Roger Ibbotson said 100% of your performance is attributed to asset allocation. Source: https://blogs.cfainstitute.org/investor ... llocation/

since returns are tied to risk you're not only thinking about what return you need, but what risk you have the need, ability and willingness to take. So think about that some because there's no point taking a risk you don't have the need, ability, or willingness to take.

read more here:
https://www.cbsnews.com/news/asset-allo ... -you-take/

https://www.cbsnews.com/news/asset-allo ... tolerance/

https://www.cbsnews.com/news/asset-allo ... -you-need/

https://www.cbsnews.com/news/asset-allo ... ing-goals/

it also helps to have a plan (known as an IPS). See my signature below for that.
It's "Stay" the course, not Stray the Course. Buy and Hold works. You should really try it sometime. Get a plan: www.bogleheads.org/wiki/Investment_policy_statement
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