Stock Market questions

[Warlock1]

Just getting into this arena and have a few questions.

How do you even begin to research what companies to invest in? Do you follow a certain individual and parrot off of them or do you randomly google hot buys? What about using an AI search?

Once you make the buys, do you check them everyday, once a week, set up alerts?

What questions should I be asking, but don't know to ask?

 

[C-Ya]

My wife and I like Motley Fool. They have a newsletter that tells you about hot stocks. They also have educational tools that will help educate you.

Motley Fool suggested Nvidia 11 years ago, so we purchased 1000 shares for 19k. Today, it worth approx 3.5million.

Needless to say, we are grateful for the education and stock tips we got from Motley Fool.

 

[DILLIGAF]

Just getting into this arena and have a few questions.

How do you even begin to research what companies to invest in? Do you follow a certain individual and parrot off of them or do you randomly google hot buys? What about using an AI search?

Once you make the buys, do you check them everyday, once a week, set up alerts?

What questions should I be asking, but don't know to ask?

First things first before you go any further.....do a risk analysis to determine what type of investing you will be doing. You have to understand that first before going any further.

After that always look at things in % not dollars per se.

Think of it as a business plan....would you start a business without some clear and concise objectives stated?

 

[Flatsix66]

What is you time horizon, goal for the money and risk tolerance? This will tell you if you are a:

1. Gambler (Crypto)
2. Trader. (Day trade Wall Street Bets)
3. Investor (buy and hold for retirement)

 

[Warlock1]

C-ya I've been following your journey and rooting for ya for an even bigger payday.

Flatsix66 I am definitely a 3 as we are just starting out with relatively low funds. Once those start to pay off and I gain better understanding and confidence that may change. Looking for 10 year plus payoffs.

 

[farmo83]

As others have said evaluate your own risk tolerance and the purpose for what your trying to achieve.

Having said that you can do all the research in the world and still it's a high bar to beat the S&P 500 year in and out. I would stress one of the biggest things I had to learn was knowing that I don't know that much at the end of the day, and I have two degrees in finance and really enjoy the market. Even with all of that I will most likely never do as well as the first respondent. Most of my retirement is in boring S&P 500, Nasdaq, growth funds, high dividend stocks/etf etc. Some of it I'll play around with but it's a small chunk of the pie. I have what my wife calls my "play" account. My stupid high risk/high return plays are in here and if it went to 0 tomorrow I would by no means be happy, but my life would not change at all.

I DO NOT really get much from CNBC or any major financial news organization. Anything they tell you to do was great advice 6 months ago.

I more try to take point of view and outlook from different sources and apply them to my own outlook.

Lastly keep in mind to really hit it big the market has to come to you.

Sankey Research, Meet Kevin, Dave Ramsey, Kevin O Leary Motley Fool, My financial advisor, Warren Buffett, etc. Also just google things and read them. You'll start to see trends and spot BS.

Key phrases I've learned over the years.

"When others are greedy be fearful, when others are fearful be greedy"
"Stocks are sold not bought"
"I start thinking about selling a stock when I start wanting to brag to my friends about it"

 

[530RL]

I would read this article. And consider its message.

Buffett's Bet with the Hedge Funds: And the Winner Is …

In 2008, Warren Buffett placed a million-dollar bet that an S&P 500 index fund would beat the funds of funds hedge fund managers would select.

www.investopedia.com

And this one too.

https://www.marketwatch.com/story/why-way-fewer-actively-managed-funds-beat-the-sp-than-we-thought-2017-04-24#:~:text=The%20percentages%20of%20mid-cap%20and%20small-cap%20funds%20lagging,when%20picking%20an%20actively-managed%20domestic%20equity%20mutual%20fund.

 

[coolchange]

Start paper trading first. You’ll find what a loser you are fast! Lol
I’ve started trading again a little bit for sport.
Things I have written on the wall in my mind,
The market hates you. It wants you to die.
You’re a dumb ass, the minute you think you know something, you don’t
Never Marry a stock, you can’t fix them, treat them like your mistress, when you don’t get what you want ditch it.
I like market sentiment, when they freak, I look for something to eat.
Watch YouTube and read. Like I said, I don’t know shit.

 

[clarence]

Getting started - Bogleheads

www.bogleheads.org

Bogleheads.org - Index page

 

[DILLIGAF]

Start paper trading first. You’ll find what a loser you are fast! Lol
I’ve started trading again a little bit for sport.
Things I have written on the wall in my mind,
The market hates you. It wants you to die.
You’re a dumb ass, the minute you think you know something, you don’t
Never Marry a stock, you can’t fix them, treat them like your mistress, when you don’t get what you want ditch it.
I like market sentiment, when they freak, I look for something to eat.
Watch YouTube and read. Like I said, I don’t know shit.

haha. true

 

[stephenkatsea]

FWIW - The company which I worked for traded on the NYSE at $4.15 back in May 15, 2020. Friday it closed at $87.03. The company is Tidewater Inc. TDW on the NYSE. Pretty amazing. I sold shortly before retiring. Did ok. But the stock wasn't in the high 80s.

 

[PaPaG]

Do yourself a great favor, research, research and then some research, you can either trade in and out following or watching trends and cycles or longer term trading. Either way do your research and I suggest set up a practice portfolio, see what your gut tells you and what actually happens. If you feel confident with your research or trend cycle estimates or analysis then start trading small amounts DO NOT BET THE FARM, small wins and losses are great learning lessons.

 

[Marine Industries West]

Follow Pelosi's lead

I can't help but think Hydrogen is the next big thing. Maybe not today, but 10 years from now. Toyota making bold moves in that direction, Yamaha breaking ice there too. Looks promising in the trucking sector. Electric vehicles not sustainable in the big picture.

 

[Havexico]

Follow everything that Nancy Pelosi is doing until she gets handcuffed.
Buy Gold, Buy Silver, Buy XRP and XLM and have diamond hands

 

[2Driver]

Schwab is built around self wealth management, as such they have a ton of excellent tools for research and education.

Or you can talk to one of my old brokers. They were correct 100% of the time when it came to telling me what happened.

 

[samsah33]

As others have said, you need to evaluate your risk tolerance, which is largely dependent upon your age and net worth. Good rule of thumb is that your age should determine the % of your portfolio that you have in liquid assets (eg cash or other items that you can convert to cash in an emergency like publicly traded stocks). For example, if you're 60 years old, then 60% of your portfolio should be in liquid assets. Also balance your portfolio regularly, because when the value of the assets in your portfolio change, then it will change the % you carry in liquid assets, so you might need to rebalance to maintain or get back to our hypothetical 60%.

I really like @coolchange 's idea on paper trading first to get the feel of things (and follow Pelosi...!).

Finally, don't gamble with what you cannot afford to lose.

 

[coolchange]

Schwab is built around self wealth management, as such they have a ton of excellent tools for research and education.

Or you can talk to one of my old brokers. They were correct 100% of the time when it came to telling me what happened.

Agreed. I opened a Schwab acct based on people here opinions. Didn’t fund it for awhile then I get a call. “ Charles Schwab”. Wtf? Answered, they wanted to know if all was ok if I needed help or info with anything. They have a lot of videos.
When I get home I don’t watch big bang theory etc. I YouTube for hours. Chris Sain, Felix and friends, uncle Bruce. I’ve been intrigued by the market since I was in Jr high.
I’m holding Panw and soun based on heads up from inmates, after due diligence, of course!

 

[CLdrinker]

Patience Patience Patience.

If the stock just went in a run. Never buy thinking you are going to catch the wave up. Your to late.

Buy in slowly. If you find a stock you want. Buy in stages. Example. I want to get into Tesla. So as it is currently falling. I buy 1 or 2 shares a day. I don’t buy unless I can get it for cheaper than the last time I bought. Following this strategy will have a good buy in average.

If you are going long term. Buy big names on big pull backs.

Research ETF’s those are “set it and forget it” to an extent.

Stay in! I have missed out on so many gains because I heard bad news.

Michael Berry was predicting a crash this year so I pulled out half. Visa and VUG has went on a tear since I sold. Whoops!

Patience Patience Patience.

 

[2Driver]

Agreed. I opened a Schwab acct based on people here opinions. Didn’t fund it for awhile then I get a call. “ Charles Schwab”. Wtf? Answered, they wanted to know if all was ok if I needed help or info with anything. They have a lot of videos.
When I get home I don’t watch big bang theory etc. I YouTube for hours. Chris Sain, Felix and friends, uncle Bruce. I’ve been intrigued by the market since I was in Jr high.
I’m holding Panw and soun based on heads up from inmates, after due diligence, of course!

Yep,
and while your money is sitting there you make 5.3% risk free

LOL the 2 year return in the market has been 6.5% a year.

 

[farmo83]

Follow Pelosi's lead

I can't help but think Hydrogen is the next big thing. Maybe not today, but 10 years from now. Toyota making bold moves in that direction, Yamaha breaking ice there too. Looks promising in the trucking sector. Electric vehicles not sustainable in the big picture.

The infrastructure required for Hydrogen is even further behind the curve EV. We are in the process of piloting a few Hydrogen fueling stations on the coast of Cali and the econs on it are abysmal and that's being generous. When Gavin and Joe pull the subsidies we will dump it. Even massively subsizided the only value in it is credits for other activities. It can get there but it will be ridiculously expensive.

 

[C-Ya]

I am sure you guys have all heard this statement

”If you can’t figure out who the sucker is, in a poker game. That means it’s you!”

To me, that sums up the stock market. We are all the suckers, because we are the “retail investors” while the ”institutional investors” control the market.

Pulling the ”buy button” off the Robinhood App is a perfect example. For those that don’t know the story, it’s The Game Stop story. It is speculated, that had they not done that, it could have collapsed the market. To me, the little guy struck back! Those hedge funds were shorting the stock and TRULY got the biggest SQUEEZE in history. If they hadn’t pulled the plug at $500 per share, that $4 stock was heading towards $2000 per share. It was a rocket heading for the moon! Lol It’s because of the above, that I check wallstreetbets daily, on Reddit. Those guys are funny and beyond brutal.

I don’t necessarily take Jim Cramers advice, but I do enjoy watching Mad Money.

I don’t like to give stock advice. However, there are a few posts already on this thread about future markets. So here is my two words on this subject……….

Quantum Computing

 

[coolchange]

The infrastructure required for Hydrogen is even further behind the curve EV. We are in the process of piloting a few Hydrogen fueling stations on the coast of Cali and the econs on it are abysmal and that's being generous. When Gavin and Joe pull the subsidies we will dump it. Even massively subsizided the only value in it is credits for other activities. It can get there but it will be ridiculously expensive.

About 15 years ago I just happened to sit at a table at a Peterson gala with the head or US rep or something of BMW alternative fuel vehicles. So I asked. He just chuckled and shook his head. The cost is so high it’s not feasible. But we HAVE to.
My wife used to work for the company that had those solar farms off the 40 in Barstow, the reflective thermal ones.
One night watching tv I see Bush resended the solar tax benefits program. I yelled at the wife to come here this isn’t good.
She went to work the next day and they fired everybody.

 

[farmo83]

About 15 years ago I just happened to sit at a table at a Peterson gala with the head or US rep or something of BMW alternative fuel vehicles. So I asked. He just chuckled and shook his head. The cost is so high it’s not feasible. But we HAVE to.
My wife used to work for the company that had those solar farms off the 40 in Barstow, the reflective thermal ones.
One night watching tv I see Bush resended the solar tax benefits program. I yelled at the wife to come here this isn’t good.
She went to work the next day and they fired everybody.

Warren Buffett is selling apple and his top two acquired stocks are Occidental Petroleum and Chevron

 

[coolchange]

Warren Buffett is selling apple and his top two acquired stocks are Occidental Petroleum and Chevron

I’ve been following OXY since he bought it. Basically going sideways but definitely shows his sentiment for the long run

 

[DRYHEAT]

I’ve been following OXY since he bought it. Basically going sideways but definitely shows his sentiment for the long run

Why not just buy Berkshire Hathaway? Generally beats the S&P 500. Only downside is no dividends.

 

[hallett21]

You’re gonna wanna go find the biggest dart board you can find. Write down 100 stocks and start throwing.

 

[DILLIGAF]

Why not just buy Berkshire Hathaway? Generally beats the S&P 500. Only downside is no dividends.

I have owned it since they came out with BRK-B shares. Its like a big ass ship at sea....it trudges along steady as shit but not easily turning any where....lol Slow and steady long term investment

They have a "boat load" of cash as well....

 

[brgrcru]

Good luck
Talk to a finanicial advisor If you’re not going to follow it everyday, every second .
See what buckets he wants you to fill up
With your goals .

You have to have a strong stomach.

Shit goes up and shit goes down in a hurry and then comes up slowly .

In for the long run , usually pays off.

But personally, I think it’s all over valued .

 

[farmo83]

I’ve been following OXY since he bought it. Basically going sideways but definitely shows his sentiment for the long run

Most of thr major oil companies if you factor in dividends and buy backs are yielding 7-9%. At that rate in 8 ish years your investment pays for itself and any returns after that are free.

I've worked in energy trading my whole career. The long term supply outlook is bleak which will cause prices to rise. This is Warren's bet.

 

[boatnam2]

Most of thr major oil companies if you factor in dividends and buy backs are yielding 7-9%. At that rate in 8 ish years your investment pays for itself and any returns after that are free.

I've worked in energy trading my whole career. The long term supply outlook is bleak which will cause prices to rise. This is Warren's bet.

MPC up 31% YTD

 

[Orange Juice]

Just getting into this arena and have a few questions.

How do you even begin to research what companies to invest in? Do you follow a certain individual and parrot off of them or do you randomly google hot buys? What about using an AI search?

Once you make the buys, do you check them everyday, once a week, set up alerts?

What questions should I be asking, but don't know to ask?

I’m an S&P 500 index investor first and foremost. I don’t need to put too much thought into it. It’s been good to me.

 

[Sportin' Wood]

Thank you to those sharing their experiences on this subject.

 

[coolchange]

Dollar cost averaged down my Sofi yesterday at 6.85

 

[badgas]

Just getting into this arena and have a few questions.

How do you even begin to research what companies to invest in? Do you follow a certain individual and parrot off of them or do you randomly google hot buys? What about using an AI search?

Once you make the buys, do you check them everyday, once a week, set up alerts?

What questions should I be asking, but don't know to ask?

Step #1 read this book or at least the audio book

The Simple Path to Wealth: Your road map to financial i…

This book grew out of a series of letters to my daughte…

www.goodreads.com

 

[Orange Juice]

Step #1 read this book or at least the audio book

The Simple Path to Wealth: Your road map to financial i…

This book grew out of a series of letters to my daughte…

www.goodreads.com

Or this one:

https://www.amazon.com/Richest-Man-Babylon-Original-Classics/dp/B0C1J5ML66/ref=mp_s_a_1_1?adgrpid=58929327587&dib=eyJ2IjoiMSJ9.9ZbxWVUjtTHefHJkQ8SrCkBxPoX5o2-d853-v1lOW3uLA-bv39hL0YtZQCFi8_aT-vaflaU0p7XfNcSQ-RM-svGNmW5G9rQcSEu8h9MqYrgFsuxNRcbaBABW6_zr2AYnPLawGCWLITa97XqXcGf1HOof4EgqYllOJ9OMtuFtNnMDZy9lWAs6cjNeeReX7g2bDsfrX7YY__xhna0S4qWzag.qrhYFEB5S-JfNeWA89QVZNXwQgiqZlpfK9w9ciBd1tU&dib_tag=se&hvadid=580862172866&hvdev=m&hvlocphy=9029990&hvnetw=g&hvqmt=e&hvrand=13546156819462876631&hvtargid=kwd-307207740680&hydadcr=15781_13521388&keywords=the+richest+man+in+babylon+book&qid=1710889812&sr=8-1

 

[mjc]

should I put up the list of what my fund has bought for me?

 

[Englewood]

Buy VOO or similar. You may hit a few home runs on your own, but the big boys will outhit you in every way.

 

[Cooter01]

Are you looking to invest to invest or to invest for retirement such as a IRA?

If an IRA, do the max per year and keep it simple, say SP500 stock, Try and max it out first of the year, you will get monthly reports on the status of how things go. Let it sit and continue investing to the same stock year after year. SP500 usually does 8-10% growth and some pay a dividend such as the ticker VOO.

 

[FlyByWire]

Is it worth trying to wait for a correction in the SP500 index funds before dumping money (say 200k) into them..? They’re up like 80% over the last 5 years but they’re also at all time highs. Already have a pension and a sup 457

 

[bowtiejunkie]

Well, I rolled my 401k out to a IRA last September 2023, due company failure and plan was terminating. S&P 500 was about 4,750. It dipped to ~4,150 at end of October 2023. That's roughly 24% lower from today's close of 5,147. I didn't put my money back into the funds I had and got hung out to dry. I've been nibbling here and there to dollar cost average my way back in, hoping for a sizable correction (although, who really wishes for that anyway, right?). My IMO is to not dump the whole $200k at one trade date. Average it in.

 

[CLdrinker]

Hard to buy in at all time highest.

I don’t see anything that’s going to pull the market back though.

 

[Cooter01]

Depends when you are retiring, plus the old saying goes do not try and time the market. It could shoot up a 1000% or drop to zero, no answer on that. I would say do what you feel comfortable with. Do a percent of your total to invest into it.

 

[Done-it-again]

Gas stocks are doing well up 25% from this time last month.

 

[shalastetok]

Stock market investing can initially seem a bit overwhelming, but it’s all about taking it step by step. One thing I’d recommend is not jumping in without a plan. Start by understanding the basics, like how stocks, bonds, and ETFs work.

 

[traquer]

There are some twitter accounts that monitor what congress is buying. I'd triple check and verify everything, but I don't think you'll do worse than the SP500 if you keep on top of what those guys are doing?

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