anybody do the whole stock market thing here?

[t-maxxracer32]

hey guys i dont wanna spark up any crazy political talk here, just wanna know if anyone invests in stocks and what they have to say about it.

im 19 and only have a few thousand saved up for college n stuff but since im not gonna be using that money for 5-6 months i figured i could try and invest it and possibly make some money (dont expect to double it or anything maybe just a few hundred.. idk)

every month i put in 1k to my savings account so in theory every month i can invest another thousand to the market and in july-august i can withdraw it all cause thats when im going to be going to college..

can i do all of this online? fidelity? sharbuilder? or something like that
is it really worth it with such a low amount of money?
anyone here have tips tricks or startup info?

like i said i dont wanna start a riot if this is a sensitive subject and i hope it doesnt bother anyone that i talk about my personal finances..

thanks for any help

-Ryan

[PBO]

Lutach is your man

[lincpimp]

Well, I am not a stock market guy but I invested money with a buddy who used to buy and sell cars. Doubled my money each time we did a deal.... Wish he still did it.

Short term and the stock market do not usually go together, but I am sure Lutach can point you in the right direction. Freaking Genius, and darn good looking too. Watch out ladies!

[_paralyzed_]

Originally Posted by lincpimp

Freaking Genius, and darn good looking too. Watch out ladies!

you've confused me and Lutach, but he's not too shabby either

[t-maxxracer32]

Originally Posted by _paralyzed_

you've confused me and Lutach, but he's not too shabby either

haha well if you are a genius harold can you lay it down for me? teach me your ways of the stock market.

or are you just good looking?

[t-maxxracer32]

well i would pm lutach but the guy is so good looking that his pm box is full of love letters from james and harold

eff what am i gonna do now?

[PBO]

Keep bumping the thread...he'll grab it

[George16]

I used to do some stock market trading but had since slowed down. I'm more into short-term CD's now. Since you plan to take it out in 5-6 months, I suggest opening up a 26 week CD account so you can withdraw it after 6 months. The return is not as generous compared to stock but CD's are less risky. You can also contact your bank and setup a ladder account which works this way:

http://www.consumerismcommentary.com...sit-cd-ladder/

The info in the link is what I used a few years ago when I set up my ladder certificates.

Hope this helps.

[t-maxxracer32]

ill look into that in the morning george

but what would the interest rate be on the CDs

prolly only 1-5% right?

[George16]

Sadly it's now down to between 1-5%.

[JThiessen]

I'd suggest CD's also. At your age, unless you can afford to lose the money you have, stay out of the stock market. If you have some money that you arent intending to use (such as for school), then you can start buying some stocks. Another thing you might want to look into is the GET prorgram (did I get the right abbreviation there?). You can put in money for college, and it will guarantee your tuition rate at a certain rate...

[t-maxxracer32]

well this money is not for tuition more so books rent food etc.

basically i wanna have this money as backup incase school gets way tough and i cant work...

my parents have a college fund for me that should last.

so would that GET program help me in my scenario?

[Finnster]

Honestly , for a 1% return on a 6mos CD, I doubt Id even bother. On $1000, that only $10. If you need to take the money out for the maturity for any reason, you can't w/ a CD and may have to pay penalties.

Basically I would say, its a hell of a time to be buying stocks right now. Actually 2009 was the best year for stocks we will prolly see in our lifetime (on a broad basis,) however, that doesn't mean the market has a way to go this year if the economy keeps getting better. You can do quite well over 6mos, but only put up money you are willing to loose. Its always a option no matter what stock you buy, so be careful.

However, if you can start investing and saving money at your age, I can't stress how much you will be ahead you will be once you get out of college and start looking for jobs and maybe a house. Many college kids make the mistake of running up huge debts while they are in school, (CC or otherwise) and get out of school with thousands in debt, and end of having to pay that back well through their 20s and 30s. That means they have trouble getting house loans, let alone saving for retirement and gaining all those benefits of compound interest. This is esp true in expense areas of the country like the East coast or CA. I have a lot of colleagues in their early 30's who still live at home as they are still paying debt from college and can't afford to buy houses in expensive NJ area.

So, there are all sorts of ways you can go about investing. Scottrade or other such online service is good, but you kinda need to know what you are doing. You can go to a brokerage and get a broker for some personal help, but trading fees are much higher, but may be worth the cost to avoid doing stupid things and getting recc's on stocks and trading. The timeframe you are working on is pretty tough, who knows what thigns are going to be like in 6mos really, but if you can hold on to the money for a longer term, you can realize some fantastic gains. Doubling you money over a few years is not unrealistic.

In the meantime, if you want to play our stock market game for fun to get an idea of what you are doing, its fun and no cost. :) Lutach is the man.

[t-maxxracer32]

realistically i wont need all the money i invest for probably a year or so just depends on if i work while im in college.

by the time august hits i should have 10k or more saved up and could potentially use all that to invest.. all that means is that id have to work my first semester up at ASU, which i do not have a problem doing. if my job cuts me loose, school is getting hard, or im just not making enough i can always withdraw all that money since in the stock market there are technically penalties for selling... just selling fees right?

i realize that i am young and obviously have no idea about the stock market but im not going to blow 1k into a stock that i have no clue about. i will research and figure some things out before i actually invest and ive emailed lutach in hopes that he can help me out or possibly be my broker? (not likely but who knows)

anyways thanks for your input!

[lutach]

I'm not the man at all. Finnster is the man.

To be honest, you missed a great Bull run and right now might not be a good time to get in. Some stocks have gained a lot since the lows. Depending on how much you have to invest, it might not be worth it at all. If you wish to play a much better stock market game, join www.wallstreetsurvivor.com. I'm there too and started with $100K and now I'm up to $500K, but that was due to the time I started which was right at the upward move. You have a lot of research to do as I think things have gone up a little too fast in my opinion.

This is the info I sent you via e-mail.

"Number one rule I have:

You can only invest as much as you can afford to loose without putting you or your family into financial turmoil.

With that said, it depends on the time to get into the market. Since the March lows, you missed out on a very good run upward and now only the real players will make money. Playing the stock market is like playing the lottery in some ways. If you still want to gain some experience, see how much it is to get an account at E*Trade, Scottrade, TD Ameritrade or any of the ones that offer online trading with the minimum commission. See what the minimum is to open an account and you are on your way. Make sure you read the fine lines though, call them and ask as many questions as possible. See if they send you some written details incase they fuck you over on the commission and other fees. Do your research and bet on good companies only."