Where to start? <$1000 initial investment

[dmc575]

I ordered the intelligent investor and plan on reading that. But i have a feeling that is more a general overview than anything. I want to get started for not much money...and sort of gamble. Even though I know it was a likely unicorn, the haftafish penny stock thread is about the type of thing id like to do. Find some lower cost stock (not trying to buy apple or facebook type stuff) and see what happens.

Now with that said im not trying to go to a slot machine when I say gamble. Im trying to go sit at the poker table or blackjack table...somewhere that if you do some research, studying, work and are sharp enough you can turn a profit.

I prolly should be sharp enough to figure this out on my own...but google searches for stock advice are almost as bad as walking into a used car lot! Hoping for some experienced info. Dont need any secrets (although theyd be appreciated) but helping point me in the right direction will go a long way for me at this point. Planning to use robinhood app to keep the overhead low. Heard mixed reviews, but seems like itll get what I need done.

Thanks.

[CatFan]

If you want to gamble on the market, be a contrarian. The market tends to overreact to bad news. For example, Boeing was around $440 in early March, but it’s down 100 points from that after the 737Max grounding. Maybe an opportunity to by some at 25% off. $1000 will get you ~3 shares. With the dividend, if the stock stays flat you’ll earn ~$24 a year. That’s 2.4%, which is about what you can get on a CD now.

Gambling on a company that has paid quarterly dividends for 80 years is a safer bet than going in on companies that may be one bad news cycle from bankruptcy.

[dmc575]

If you want to gamble on the market, be a contrarian. The market tends to overreact to bad news. For example, Boeing was around $440 in early March, but it’s down 100 points from that after the 737Max grounding. Maybe an opportunity to by some at 25% off. $1000 will get you ~3 shares. With the dividend, if the stock stays flat you’ll earn ~$24 a year. That’s 2.4%, which is about what you can get on a CD now.

Gambling on a company that has paid quarterly dividends for 80 years is a safer bet than going in on companies that may be one bad news cycle from bankruptcy.

where do you go to research and/or stay on top of news? Bloomberg?

[CatFan]

where do you go to research and/or stay on top of news? Bloomberg?

Online brokers have pretty good info. Morningstar. CNN has good money news as well.

[Bassmaster96]

To start out, I like the idea that CatFan has given you. That's what I did, just with a different company. Earnings were announced and they missed by just a little bit. The market overreacted, I picked up the stock at a bargain, and then sold it when it gained back up to where it was. There are several bargains now to be picked up in that aspect. BA is one of them. I also think Roku is one to watch with its earnings next week.

[retieoften]

Walk into some ed jones offices and find a person you like and invest with them. Add to it monthly...

No need to mess with any of it yourself. Read some about Ed Jones they have a proven track record and their moto is to buy and hold, thus growing your money, no cheap penny trading bs or constant trading.

[CatFan]

Walk into some ed jones offices and find a person you like and invest with them. Add to it monthly...

No need to mess with any of it yourself. Read some about Ed Jones they have a proven track record and their moto is to buy and hold, thus growing your money, no cheap penny trading bs or constant trading.

Good lord, that is not good advice! They have insane fees and even gouge you when you cash out.

[NitroZ7]

If you want to gamble with under $1,000 you could always buy call options but you may not have much left at the end. Better to just dollar cost into an index fund or buy an index etf.

[boneil]

You say "sort of gamble", and in the title you say "investment". The two are not the same and should never be used together. Many people have started a gamble that turns into an investment that eventually turns into a lesson learned.

If you want to gamble, which is fine, then have fun with it, but understand that you will most likely lose it all at some point. Use it as a learning experience. I use to have fun gambling in stocks but losing my money all the time tends to wear on you. And now I wish I would have started with investing. I'd be sitting pretty. Now, I use a little money for daytrading/ gambling and worry more about investing.

[retieoften]

Good lord, that is not good advice! They have insane fees and even gouge you when you cash out.

There are NO fees if your INVESTING. There is a very small one for the initial buy and then there are no more.

[CatFan]

There are NO fees if your INVESTING. There is a very small one for the initial buy and then there are no more.

If you have an advisory account with them you pay nearly 2% of your balance every year regardless of performance. Compare that to Vanguard at .38% and it’s obvious Edward Jones is a rip-off.

The purchase fees are not small, they are higher than the norm, and there are fees when you close your account as well. The thieves charge 2% to reinvest dividends or to do a monthly stock purchase and charge $300 if you die and disburse the account to someone else. $95 if you want to close your account. $100 if you die, and if you die with a balance less than $100, your estate owes them money.

They are not a good choice for anyone.

[Hez]

[retieoften]

If you have an advisory account with them you pay nearly 2% of your balance every year regardless of performance. Compare that to Vanguard at .38% and it’s obvious Edward Jones is a rip-off.

The purchase fees are not small, they are higher than the norm, and there are fees when you close your account as well. The thieves charge 2% to reinvest dividends or to do a monthly stock purchase and charge $300 if you die and disburse the account to someone else. $95 if you want to close your account. $100 if you die, and if you die with a balance less than $100, your estate owes them money.

They are not a good choice for anyone.

NOT true, LAST year they tried to change everyone over to a percentage fee based but you could stay with the old way if you wanted...

I paid 2490 in total fees last year and spent right at 84k OUT of my accounts. Since my accounts inception Ive spent 1m and the year my fees were the most they were just 3100.

Straight off my performance page the last 4 years of money spent.

-$77,707.47

-$75,359.80

-$84,829.80

2019 ytd so far-$42,780.87

Beginning Value	$919,401.33
Assets Added/Withdrawn	-$993,844.95
Return in $	$851,758.15
Personal Rate of Return %	7.65%
Ending Value	$777,314.53

Why on earth would I close my account? Youve lost me there completely.

[bluejay10]

If you don't mind me asking, don't need size or anything what funds do they have you invested in? They usually receive a kickback from those companies and/or use their own funds with higher fees (those fees don't show on a statement). At least that was my experience with them.

[retieoften]

If you don't mind me asking, don't need size or anything what funds do they have you invested in? They usually receive a kickback from those companies and/or use their own funds with higher fees (those fees don't show on a statement). At least that was my experience with them.

I dont care what they do or if they get a kick back but facts are my fees are LOW at 2400 average a year for handling 1.3-1.5 TOTAL between my 6 accounts. THESE are my factual total fees for 2017 it is all tracked. IF I let them convert me to the percentage method I would have paid more so I didnt let them convert.

AMERICAN CAPITAL INCOME BUILDER CL A
FRANKLIN FEDERAL TAX-FREE INCOME CL A1
INVESCO HIGH YIELD MUNICIPAL CL A I have a IRA I wish I had converted to Roth when I got it since its more than doubled and now I pay tax when I take from it, below are the Ira funds. There are a few.
AMERICAN BALANCED CL A AMERICAN CAPITAL INCOME BUILDER CL A AMERICAN CAPITAL WORLD GROWTH & INCOME CL A AMERICAN GROWTH FUND OF AMERICA CL A AMERICAN INCOME FUND OF AMERICA CL A AMERICAN NEW PERSPECTIVE CL A INVESCO CORE PLUS BOND CL A INVESCO DIVERSIFIED DIVIDEND CL A INVESCO EQUITY AND INCOME CL A INVESCO VALUE OPPORTUNITIES CL A LORD ABBETT AFFILIATED CL A LORD ABBETT BOND DEBENTURE CL A LORD ABBETT TOTAL RETURN CL A LORD ABBETT VALUE OPPORTUNITIES CL A

[bkeenom]

DOs

Pick companies/industries you know something about.
Research a companies numbers before investing.
Learn how to research numbers.
Buy or sell on the bounce.
(Example, LPI had great earnings end of last week. Stock went from 260 to 350 overnight. Today it is back at 280.)

Don'ts
Don't use margin until you have a bunch of experience.
Don't buy in to the chart pattern nonsense.
anyone asking you to sign up for their service on YouTube is only making money by getting people to sign up on YouTube.

[Fishing_Fool_NC]

DMC575: You sound like I did some 40 years ago.......i have $1000 and want to learn how the stock market works without losing my $1000. And at the same time I really would like to make a profit!! Go find someone in your neighborhood, networking groups, etc who is a stock broker who is someone you can connect to personality wise and tell them your thinking. IMO you don’t need an advisory account which charges an annual fee........just open an account and buy a stock or two with your $1000. It should cost you roughly 5% to buy (and 5% to sell). The discount fee will reduce as you invest more with the same company. “Retire” has given you a good starting point (as far as I’m concerned) with American Funds. If you’re in your 20-30’s, I’d suggest Capital World growth....in your 50’s-60’s and today’s market-Templeton High Yield Municipal Bonds. But stay the course if you believe in your funds regardless of what your buddies tell you!!! People who lose money generally are those who try to time the markets....sell at the high point and buy at the low point. Not to disagree with Catfan, I’m not sure you can even get an advisory fund for $1000. FYI.....My advisory fee is 3/4 percent over 7 figures. I had a good teacher!!!! Good Luck

[haftafish22]

Probably not the wisest one here, but I say open an account and trade the stocks. That’s what I did. I started with 1k myself. You will win, you will lose, and you will learn along the way. Every good play I learn, every bad play I learn. Over time you will put that knowledge to use and make money. I play pennies. I could lose my entire investment overnight. As you build money, you quit putting all eggs in one basket and learn to spread yourself out some. That would be my first personal advice. Say you have 1k, no more than 33% in any ticker. That gives you 3 plays. Or if you need the liquidity and want to trade more, only use 33% and allow the rest to stay cash. That gives you an in and out every day with a day break in the week to let funds settle and start over. You can invest 1k or you can gamble with it. I prefer to gamble after, like said above, I’ve done my research and buy into what they are selling or think I can play the momentum. Take the money, win some lose some but start learning not a better way than with cash that is hard earned.

Okay, and I should note, I am young and if I lost it all tomorrow I could start over and not kill my financial life. Only wager what you are willing to lose.

[bluejay10]

I dont care what they do or if they get a kick back but facts are my fees are LOW at 2400 average a year for handling 1.3-1.5 TOTAL between my 6 accounts. THESE are my factual total fees for 2017 it is all tracked. IF I let them convert me to the percentage method I would have paid more so I didnt let them convert.

AMERICAN CAPITAL INCOME BUILDER CL A
FRANKLIN FEDERAL TAX-FREE INCOME CL A1
INVESCO HIGH YIELD MUNICIPAL CL A I have a IRA I wish I had converted to Roth when I got it since its more than doubled and now I pay tax when I take from it, below are the Ira funds. There are a few.
AMERICAN BALANCED CL A AMERICAN CAPITAL INCOME BUILDER CL A AMERICAN CAPITAL WORLD GROWTH & INCOME CL A AMERICAN GROWTH FUND OF AMERICA CL A AMERICAN INCOME FUND OF AMERICA CL A AMERICAN NEW PERSPECTIVE CL A INVESCO CORE PLUS BOND CL A INVESCO DIVERSIFIED DIVIDEND CL A INVESCO EQUITY AND INCOME CL A INVESCO VALUE OPPORTUNITIES CL A LORD ABBETT AFFILIATED CL A LORD ABBETT BOND DEBENTURE CL A LORD ABBETT TOTAL RETURN CL A LORD ABBETT VALUE OPPORTUNITIES CL A

Thanks retieoften. As a financial advisor myself I'm always curious what funds other advisors are using and the expense ratio from each one.

[dmc575]

Walk into some ed jones offices and find a person you like and invest with them. Add to it monthly...

No need to mess with any of it yourself. Read some about Ed Jones they have a proven track record and their moto is to buy and hold, thus growing your money, no cheap penny trading bs or constant trading.

Not trying to do anything like that. Ive never messed with stocks and wanna do just that...mess around. Thats why its basically poker money that im using. Want to turn it into more...but in it for the experience too as dumb as that may sound.

If you want to gamble with under $1,000 you could always buy call options but you may not have much left at the end. Better to just dollar cost into an index fund or buy an index etf.

Ill look into the call option stuff. Not really trying to do funds or anything like that. wanna find a company or two and see what its like riding the wave. Not trying to light money on fire...but I dont mind the gamble and hopefully I can learn...and eventually start doing real investments for my future.

You say "sort of gamble", and in the title you say "investment". The two are not the same and should never be used together. Many people have started a gamble that turns into an investment that eventually turns into a lesson learned.

If you want to gamble, which is fine, then have fun with it, but understand that you will most likely lose it all at some point. Use it as a learning experience. I use to have fun gambling in stocks but losing my money all the time tends to wear on you. And now I wish I would have started with investing. I'd be sitting pretty. Now, I use a little money for daytrading/ gambling and worry more about investing.

Yes great point, and I am trying to gamble more than invest toward my future. I am kinda seeing it the way I see poker. I dont play poker to gamble per say, but I do it because I think I have an edge on some players that will allow me to make money if im smart enough and pay enough attention. Im kinda hoping to do something like that with stocks. Create an edge by researching and educating myself, and then paying enough attention to do whats needed to make money. So thats what I mean when I say gamble and invest in the same sentence. No one has a 100% win rate at poker and I'm the same and have lost money...but have won more than lost. Hoping to get there with stocks if im sharp enough about it.

am I way off in that thinking?

If you have an advisory account with them you pay nearly 2% of your balance every year regardless of performance. Compare that to Vanguard at .38% and it’s obvious Edward Jones is a rip-off.

The purchase fees are not small, they are higher than the norm, and there are fees when you close your account as well. The thieves charge 2% to reinvest dividends or to do a monthly stock purchase and charge $300 if you die and disburse the account to someone else. $95 if you want to close your account. $100 if you die, and if you die with a balance less than $100, your estate owes them money.

They are not a good choice for anyone.

Im going with RobinHood...you know im not trying to pay any fees or anything I could get away with not paying. Thanks for looking out and getting that info out there CatFan

If you don't mind me asking, don't need size or anything what funds do they have you invested in? They usually receive a kickback from those companies and/or use their own funds with higher fees (those fees don't show on a statement). At least that was my experience with them.

Im totally new to this...but I saw what happened in 2008...and ive seen all the clips of Jim C(K)ramer giving terrible info/advice to the public about companies that tanked our economy. So right now as it stands im in the tinfoil crew when it comes to letting some big city suit handle my money. Now...im sure once I learn the ropes and do enough research im sure ill learn of some solid sharks out there that manage huge portfolios/investments and Id definitely try then...but I really like to do my own research, that way I dont have any surprises and cant bitch to anyone about not knowing something.

DOs

Pick companies/industries you know something about.
Research a companies numbers before investing.
Learn how to research numbers.
Buy or sell on the bounce.
(Example, LPI had great earnings end of last week. Stock went from 260 to 350 overnight. Today it is back at 280.)

Don'ts
Don't use margin until you have a bunch of experience.
Don't buy in to the chart pattern nonsense.
anyone asking you to sign up for their service on YouTube is only making money by getting people to sign up on YouTube.

You wanna help me out with some of those Do's? Where/how do you research companies before investing. I think its fairly easy to get the companies prospectus, or whatever its called, but what about other research and due dilligence that can be done. I really like to research stuff...like a lot and part of the reason I wanna play around before I start handing my money off to be invested toward my future. I need to google buying/selling on the bounce...but im guessing thats when spikes/lots of action happen?

Not messing with margins at all...i dont even like using credit cards! dont wanna start messing with those types of things with this stuff. Chart pattern nonesense...is that like Jim Cramer and all the talking heads when they tell you what to buy because of this "line" and charts? Im in a sales business. Lots of people telling you how to make millions doing your profession...yet they are coaching making less money than they claim they can teach you to make. Used to that schtick...and im actually wanting to lone wolf it and dig real deep into things. I really like researching and learning new things....ill always listen to a wise man, but like to learn on my own too.

Thanks.

DMC575: You sound like I did some 40 years ago.......i have $1000 and want to learn how the stock market works without losing my $1000. And at the same time I really would like to make a profit!! Go find someone in your neighborhood, networking groups, etc who is a stock broker who is someone you can connect to personality wise and tell them your thinking. IMO you don’t need an advisory account which charges an annual fee........just open an account and buy a stock or two with your $1000. It should cost you roughly 5% to buy (and 5% to sell). The discount fee will reduce as you invest more with the same company. “Retire” has given you a good starting point (as far as I’m concerned) with American Funds. If you’re in your 20-30’s, I’d suggest Capital World growth....in your 50’s-60’s and today’s market-Templeton High Yield Municipal Bonds. But stay the course if you believe in your funds regardless of what your buddies tell you!!! People who lose money generally are those who try to time the markets....sell at the high point and buy at the low point. Not to disagree with Catfan, I’m not sure you can even get an advisory fund for $1000. FYI.....My advisory fee is 3/4 percent over 7 figures. I had a good teacher!!!! Good Luck

Will look into that stuff. Trying to just do my thing and save fees for now. I dont wanna lose $1000 since that can buy a lot of tackle...but the worlds not ending if I do and I dont mind the trial by fire over paying fees...at least right now thats where im at. Thanks.

Probably not the wisest one here, but I say open an account and trade the stocks. That’s what I did. I started with 1k myself. You will win, you will lose, and you will learn along the way. Every good play I learn, every bad play I learn. Over time you will put that knowledge to use and make money. I play pennies. I could lose my entire investment overnight. As you build money, you quit putting all eggs in one basket and learn to spread yourself out some. That would be my first personal advice. Say you have 1k, no more than 33% in any ticker. That gives you 3 plays. Or if you need the liquidity and want to trade more, only use 33% and allow the rest to stay cash. That gives you an in and out every day with a day break in the week to let funds settle and start over. You can invest 1k or you can gamble with it. I prefer to gamble after, like said above, I’ve done my research and buy into what they are selling or think I can play the momentum. Take the money, win some lose some but start learning not a better way than with cash that is hard earned.

Okay, and I should note, I am young and if I lost it all tomorrow I could start over and not kill my financial life. Only wager what you are willing to lose.

im in my 30s...so youre thinking is about exactly where my thinking is right now. Im honestly not set up good for retirement...but Im kinda doing this to learn how I need to proceed. Can I do my own thing and do it smartly enough to net more than if I gave it to some suit? Now I do think you need to give up some money to the suits to invest for you...but that is bigger money and not $1k type of stuff. And I do plan to do that eventually since I hear you gotta diversify so that is a good little solid rock you can cling too...but not right now. I dont have big money I wanna invest, and wanna do it like you described.


THANKS EVERYONE! Read every post and I thank you for helping establish some knowledge in this new venture.