Hey guys I will be turning 23 this summer and lately I have finally started to try and save money. Im working construction making $22 an hour right now. In 2 years I will be at $37 an hour. Now that im starting to make more money and starting to save I would really like to get into stocks the only thing is I know absolutely nothing about stocks and how they work. I know the basics on how you buy and sell thru trading and what not but other than that I know shit. I was wondering if any of you have any advice to a rookie like myself and if there are any good websites you know of that teach you how to use the stock market. Any info is appreciated thanks...
Just buy DIA or SPY.
DIA follows the Dow Jones Industrial Average which is composed of 30 of the best blue chip stocks.
SPY follows the S&P 500 which are the largest 500 stocks that are traded on the US exchanges.
Always reinvest your dividends back into the stock.
This will net you around 10% for the next 20 or so years, each year.
This is the safest way to play stocks and sure beats the hell out of a 5% bond, cd or t-bill.
DIA follows the Dow Jones Industrial Average which is composed of 30 of the best blue chip stocks.
SPY follows the S&P 500 which are the largest 500 stocks that are traded on the US exchanges.
Always reinvest your dividends back into the stock.
This will net you around 10% for the next 20 or so years, each year.
This is the safest way to play stocks and sure beats the hell out of a 5% bond, cd or t-bill.
Be ultra aggresive, you have plenty of time to make it back if you were to lose it all. The main thing is to learn how to read SEC filings, just about everything you need to know is located in them. You would be surprised but you can learn a lot from message boards, just ask a lot of questions and you should get a lot of answers. There are always pumpers/bashers on there but there are also good people trying to help, you just have to sift through some crap and find the solid advice. Good luck.
Max out a Roth IRA and max out your 401K. If you can do this and live off the rest, you will be accumulating millions with no effort. Be very aggressive, and in down years, realize that your new money flowing in is buying discounted shares. S&P 500 index fund is a good place to start if you know nothing. The market is the kind of thing where it's best to know next to nothing, and invest in mutual funds, unless you have a deep passion for it. Knowing a little or even a moderate amount can be very dangerous. You have to be an expert to trade stocks, or you will get buried.
Invest as much as you can and live below your means. Keep a disciplined investing ritual and stick to it. Educate yourself as much as possible. Don't get caught in the hype of trying to get rich overnight. Keep plowing more and more money in your investments. Don't pay attention to the daily ebbs and flows of the stick market.
Enjoy your early retirement if you do all of the above while the guys working with you buying 30k SUVs are still broke.
Enjoy your early retirement if you do all of the above while the guys working with you buying 30k SUVs are still broke.
