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First time caller long time listener

2K views 9 replies 6 participants last post by  zuma 
#1 ·
Hi Everyone.
Ill like some starter links or tips to investing.
I have invested in the past based on friends "tips"
My research into the tips basically consisted of some google searches to see how long the stock has been running and how its done overall over the past.
I've done very poorly with a few of these tips"". My limited knowledge shows.
I've since quit trying to pick stocks and now invested in index funds that are doing "ok". But would love to learn about how to make the correct decisions.
From what i see most stocks out there are news based among other things. I see oppotunities with all the news about the vaccine and would love to "get in" before its to late. OR - maybe i should just stay liquid...
BMO robo - advisor or advice directed??
These are the things I'm grappling with.
Any tips, tricks or knowledge would be great.
 
#3 ·
The simplest solution is just to buy an all-in-one ETF and forget about it. Depending on your age and risk tolerance there are several to choose from. I would suggest VBAL or VGRO as the ones that are likely most appropriate if you are young to middle aged.

I see nothing wrong with index funds at all. Chasing "hot stocks" is a much riskier proposition - yes, it could lead to greater gains, but it could also lead to greater losses. With the index you get the market returns, guaranteed.
 
#4 ·
All I can do is tell you what works for me. It took me 50 years to figure it out but I now have a simple method of trading that is easy to understand, easy to follow, and as risk free as I can make it. I laid it all out in this thread.
What I am doing is trading an ETF called the TQQQ timing my trades with John Carter's TTM Squeeze and using a stop loss order to close the trades.
Suggest you download TD Waterhouse Think or Swim trading platform, it's free, and set up the chart as I do. Then you can see very easily what I am talking about, otherwise it may not make much sense. Follow along and paper trade for a few months and see if it works. If you have any questions I will try to answer them.
 
#5 ·
I second Spudd's recommendations. There is no reason to get cute. Simply index on a global basis and let the market work for you. Everything else is playing on the edges looking for an advantage that may, or may not, be there based on skill or just plain luck.
 
#7 ·
Beginners will do well to use etf index funds mostly and only use individual stocks as a supplement to the etf's and see how it goes. The learning curve for most people for individual stocks is steep, and some people never learn.

Your stock should have above average eps growth, above average ROE, medium to low debt, should not be a commodity stock. It should have a very long future ahead of it. It should not be overpriced on a PEG basis when you buy it.

Don't trade. There is a rule of thumb that says, "You never go broke taking a profit". I think that is a mistake. You should do with a portfolio of stocks what the indexes do: They replace their worst stock with a better one, and keep their winners. Its better to say you never go broke taking a loss on your worst performer while keeping your winners.

The problem with many young investors is they hope stocks will solve their money problems short term. Stocks are a long term solution to money problems. A short term solution is a better job, and being thrifty.
 
#9 ·
A new discovery for me although it has been out for years is Trading For A Living by Dr. Alexander Elder. It comes highly recommended, I just started reading it but going by the table of contents and what I have read so far, it is a must read for any beginning trader or investor, or anyone who wants to know how to be a better trader or investor.
 
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