New to investing money and need some guidance

[Ace Ace]

So I have been reading up alot on the stock market and Commodities. Does any one know where I can go to purchase these things? Would E-trade or online places be good for this? or should I go get an IRA and buy them that way? I guess I am just looking for guidance because I have a decent amount of money to invest, but I am new to investing and I'm not sure where to find out the information. From what I have read commodities, ADR's, gold, any precious metals are good to get into, but I have never owned any stock and don't know where to start. I know this is more of a political forum, but any help would be appreciated.

Thanks

[PaulaGem]

So I have been reading up alot on the stock market and Commodities. Does any one know where I can go to purchase these things? Would E-trade or online places be good for this? or should I go get an IRA and buy them that way? I guess I am just looking for guidance because I have a decent amount of money to invest, but I am new to investing and I'm not sure where to find out the information. From what I have read commodities, ADR's, gold, any precious metals are good to get into, but I have never owned any stock and don't know where to start. I know this is more of a political forum, but any help would be appreciated.

Thanks

DON'T.

It is all rigged.

At this time I would recommend physical metal - silver preferably.

Read about how silver went from $20 to $10 or naked shorting of the COMEX by major American banks. This started just before the economic "crisis" and the TARP mess.

[legion]

An IRA means you don't have to pay income taxes on it. You also can't use it until retirement, and in a specific few other circumstances.

You can use etrade, but I would recommend a broker that discourages "trading" like sharebuilder.

You should stay away from stock message boards. They are filled with people with alterior motives and people that just don't have a clue. Do your own research, but if you need to verify your conclusions, use a service that rewards the opinions of those that are usually right, like Motley Fool caps, caps.fool.com. Ignore the rest of motley fools website, unless you like throwing money away.

My current investments are:

ABB, a swiss manufacturer of electrical switchgear and industrial automation equipment
IR, Ingersol-Rand, which manufacturers industrial air compressors and refrigeration equipment
JEF, Jefferies Group, a boutique investment bank

There's a lot of good buys out there. Just make sure to read a lot and understand what you are getting in to.

[NerveShocker]

I wouldn't play the stock market.. when I want to gamble I go to the casino. But if you really want to I would look at Peter Schiff are www.Europac.net. He is mostly focusing on commodities and overseas stocks since many other countries are in much better financial situations than us. If I'm not mistaken his clients are doing very well this year. Other than that I suggest gold/silver as was said before, that is the only safe play.

[legion]

I wouldn't play the stock market.. when I want to gamble I go to the casino. But if you really want to I would look at Peter Schiff are www.Europac.net. He is mostly focusing on commodities and overseas stocks since many other countries are in much better financial situations than us. If I'm not mistaken his clients are doing very well this year. Other than that I suggest gold/silver as was said before, that is the only safe play.

Your odds are better off in the stock market. Gold and silver are NOT safe plays.

If you want to play it extremely safe then listen to Harry Browne's Investment Radio Show.

http://crawlingroad.com/blog/harry-browne-permanent-portfolio-archives/

Harry ran for president under the Libertarian Party banner in 1996 and 2000.

[Ace Ace]

I wouldn't play the stock market.. when I want to gamble I go to the casino. But if you really want to I would look at Peter Schiff are www.Europac.net. He is mostly focusing on commodities and overseas stocks since many other countries are in much better financial situations than us. If I'm not mistaken his clients are doing very well this year. Other than that I suggest gold/silver as was said before, that is the only safe play.


Peter Schiff is where I was getting alot of my info from, but I don't know where to go to invest my money in that. I know you have said that sharebuilder is a good, but is that the only website that you would recommend to start putting money into.

[Ace Ace]

DON'T.

It is all rigged.

At this time I would recommend physical metal - silver preferably.

Read about how silver went from $20 to $10 or naked shorting of the COMEX by major American banks. This started just before the economic "crisis" and the TARP mess.

What do you invest in then? Or do you just have physical money?

[ClayTrainor]

I personally am putting 20% of my wealth in to precious metals, 5% for food storage and i am keeping about 45% in Canadian currency for business investments (i own a marketing company), and am speculating with the other 30%.

I might sign up with europac, because like you Ace Ace, i'm not too sure about where to put my money either, but i do trust peter schiff's analysis.

[NerveShocker]

Your odds are better off in the stock market. Gold and silver are NOT safe plays.

If you want to play it extremely safe then listen to Harry Browne's Investment Radio Show.

http://crawlingroad.com/blog/harry-browne-permanent-portfolio-archives/

Harry ran for president under the Libertarian Party banner in 1996 and 2000.

I believe gold is a safe play for sure. Silver I can't speak for and have never really invested in since it seems more volatile to me(though I hear it follows gold). I just wish I bought gold years ago, but with the entire world printing money I'm not worried that gold will go down over the next few years. The entire world is printing money and I'm convinced this fiat money system is near its ending, and the only thing that ever replaces that throughout history has been gold. Why do you think gold is less safe than the stock market?

[Ace Ace]

An IRA means you don't have to pay income taxes on it. You also can't use it until retirement, and in a specific few other circumstances.

You can use etrade, but I would recommend a broker that discourages "trading" like sharebuilder.

You should stay away from stock message boards. They are filled with people with alterior motives and people that just don't have a clue. Do your own research, but if you need to verify your conclusions, use a service that rewards the opinions of those that are usually right, like Motley Fool caps, caps.fool.com. Ignore the rest of motley fools website, unless you like throwing money away.

My current investments are:

ABB, a swiss manufacturer of electrical switchgear and industrial automation equipment
IR, Ingersol-Rand, which manufacturers industrial air compressors and refrigeration equipment
JEF, Jefferies Group, a boutique investment bank

There's a lot of good buys out there. Just make sure to read a lot and understand what you are getting in to.

Thank you for the info. I had IR stock for a bit when I was 21, but got out of it about a year later and haven't been back in the market since. I have listened to Schiff and he seems like a smart man and has facts for his statements on the economy. That is why I am looking to get rid of my U.S. dollars and put it in something more solid, but not sure where to begin. Everything dealing with the stock market seems so foreign to me. I appreciate the advice and will be doing a little more research. Thanks again.

P.S. I am 27 and finally have money to invest for my future, so that is why I have all of these questions (Just a little background info).

[Ace Ace]

I personally am putting 20% of my wealth in to precious metals, 5% for food storage and i am keeping about 45% in Canadian currency for business investments (i own a marketing company), and am speculating with the other 30%.

I might sign up with europac, because like you Ace Ace, i'm not too sure about where to put my money either, but i do trust peter schiff's analysis.

Where do you go to invest this money? I can't go through Europac because I don't have 10k to give them for their investments. I only have $4k, but I would like to put a lot of that in precious metals. What are some of the precious metals that can be invested in in the stock market? Do you use GLD or how do you go about inivesting in the precious metals?

[james1844]

Great questions.

1) Definitely get an IRA. Its just like opening a checking account. Earnings from investments held on these accounts are not subject to federal income tax. This matters because even if you are in a relatively low tax bracket, the cost of income taxes can have a substantial drag on your returns, especially once long term compounding effects are taken into account.

2) Consider a discount broker like Schwab, or Etrade. There are ton of these. You might consider spending some time on google to find out which one is the best for you.

3) Do diversify. The RP crew tends be dominated by hard money folks who like silver and gold. There is a place for these metals in one's portfolio. However, in my view there is a lot of good research that indicates that owning real estate, stocks and bonds can shield you from substantial economic ups and downs. Silver and gold make some sense, but there is less science to back them up. Therefore I would reccomend that you only allocate no more than 5% of your portfolio to these commodities.

4) Please DO consider fees and expenses. Like taxes, mutual fund fees can eat into your overall return. For example, a lot of funds will try to jack you with 4 to 6% fee structures. I would avoid these and instead consider going with a low cost alternative like Vanguard funds.

5) I'm seeing comments like "don't invest in the stock market - the game is rigged". In my view, this is absolutely the worst possible advice you could receive. Sure, some CEOs less than ethical, others however try extremely hard to improve profits for their shareholders. More importantly, stocks can be extremely profitable. I've made a couple of good investments that have netted myself and my wife about $50,000 a pop. If you're not in the market, you'll miss these opportunities.

Is the market risky? Sure, that's the whole point. But, unlike gambling it is possible to mitigate some of the risk via research, talking to others and exploiting what information is publicly available.

for what its worth there is more on my blog.... http://www.dinksfinance.com

Thanks,

James

[acptulsa]

What are some of the precious metals that can be invested in in the stock market? Do you use GLD or how do you go about inivesting in the precious metals?

Technically, you can't invest in them in the stock market; stocks are shares of corporations. Mining company stocks are about as close as you can get. You can go through a stockbroker and invest in 'paper metals', through something like COMEX, but many here are leary of this and will advise against it. You can shop for the metal itself at a local coin/bullion dealer or online. The nice thing about that is it works even in the event of a breakdown in society; the bad part is buying the safe...


5) I'm seeing comments like "don't invest in the stock market - the game is rigged". In my view, this is absolutely the worst possible advice you could receive.

So, let's try to put some perspective on it. Cramer of msnbc is rigged; whatever he says, do the opposite.

Seriously, the big money guys do play a mean game, and if you go playing at speculation you had better be sharp. And check out a company thoroughly before you buy; just because it wears an old, respected name is no guarantee the stock will retain value. Take General Motors, for example.

This is a tricky time to endeavor to do this. In tricky times the rewards are greater, but so are the risks.

[ClayTrainor]

Where do you go to invest this money? I can't go through Europac because I don't have 10k to give them for their investments. I only have $4k, but I would like to put a lot of that in precious metals. What are some of the precious metals that can be invested in in the stock market? Do you use GLD or how do you go about inivesting in the precious metals?

I bought bullion at a local coin store, and have a secret hiding place for it, far far away :)

[apropos]

Sharebuilder is a good broker.

As for general investing advice, I guess that depends on what your goals are. The more specific your goals, the more your chances for success improve. Do you want boatloads of cash? Or a steady, reliable stream of income? Or a store of value? These are the questions that should guide you as you invest. I think a good portfolio has a mix of aggressive growth, good dividends, and reliable store of value. The mix will depend on your personal goals and priorities.

One thing I will say is that I would not use Peter Schiff. He makes great TV and I know that's unpopular to say here, but Schiff operates on the presumption (like most Austrians) that the market will do what it is supposed to do. Rarely is this the case, and a lot of the people who went large and early on the whole decoupling theorem can attest to this market irrationality.

Austrian economics has actually muddied the investment waters for me. Yes, now I know what sound money and free markets look like and how economics should be...but the key word here is should. It is not the environment we operate in. Keynesian economics call the tune, and that is not a minor thing. Will any of us be alive before the environment changes? Maybe, maybe not. So we must act and invest while cognizant of the current environment.

Presently I am trying to figure out how one can use the superior theories of Austrian economics to maximize profit in a Keynesian economy. But it is like trying to mix oil and water. If you happen to find this out along the way, let me know.

[tangent4ronpaul]

SVA - a Chinese biotech, has shown slow steady growth for the most part for months. (they were down 30 cents today, but as to LT trends, it's done well).

NXPN - is a new natural gas company who has a confirmed pocket. They sink their first well the week of Aug 21st. Depending on what they hit, this could pay off well. shares are 0.045 now, so you could get a lot.

CNFO - makes desalination plants that they can build and operate for half the cost of anything else out there.

BIEL - makes devices for electromagnetic control of pain and inflammation.

HLCS - makes gene sequencers that beat anything else out there. However they are small and new and only sold 7 systems so far.

I have others, but I think those 5 are the best bets to treat you well.

Definitely do some research before you buy anything.

-t

[legion]

SVA - a Chinese biotech, has shown slow steady growth for the most part for months. (they were down 30 cents today, but as to LT trends, it's done well).

NXPN - is a new natural gas company who has a confirmed pocket. They sink their first well the week of Aug 21st. Depending on what they hit, this could pay off well. shares are 0.045 now, so you could get a lot.

CNFO - makes desalination plants that they can build and operate for half the cost of anything else out there.

BIEL - makes devices for electromagnetic control of pain and inflammation.

HLCS - makes gene sequencers that beat anything else out there. However they are small and new and only sold 7 systems so far.

I have others, but I think those 5 are the best bets to treat you well.

Definitely do some research before you buy anything.

-t

These are likely all scam companies. I know BIEL is. These are the guys you have to watch out for.

[tangent4ronpaul]

These are likely all scam companies. I know BIEL is. These are the guys you have to watch out for.


like I said, do your research...

That "scam company" SVA has the contract to make flu vaccine for all of China.

and

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Helicos BioSciences Corporation (NASDAQ: HLCS - News), a life science company focused on innovative genetic analysis technologies, today announced the publication of a breakthrough study in which a Helicos™ Genetic Analysis System was used to sequence a human genome at the Stanford Institute for Stem Cell and Regenerative Medicine. The research article, now appearing in the on-line edition of Nature Biotechnology, demonstrates the power, accuracy and ease-of-use of the Helicos System.

http://www.nature.com/nbt/index.html

-t

[legion]

like I said, do your research...

That "scam company" SVA has the contract to make flu vaccine for all of China.

and

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Helicos BioSciences Corporation (NASDAQ: HLCS - News), a life science company focused on innovative genetic analysis technologies, today announced the publication of a breakthrough study in which a Helicos™ Genetic Analysis System was used to sequence a human genome at the Stanford Institute for Stem Cell and Regenerative Medicine. The research article, now appearing in the on-line edition of Nature Biotechnology, demonstrates the power, accuracy and ease-of-use of the Helicos System.

http://www.nature.com/nbt/index.html

-t

This person is asking for help investing, not mindless speculation.

Please listen to Harry Browne's investment radio show to understand the difference.

http://crawlingroad.com/blog/harry-browne-permanent-portfolio-archives/

[TCE]

Out of curiosity, besides the obvious of the stock being traceable, why is paper gold a bad idea? And by this, I mean buying gold mining stocks.

As for precious metals. If you are trying to protect a lot of money, go gold. However, if you, like me, believe in hyperinflation, having some silver on hand is a must. You can't go to a farmer and ask to buy a pound of apples with an ounce of gold. Since it seems like you're protecting a small, amount of money, I would diversify in gold and silver.

[Ace Ace]

Thank you all for the advice. Of course I will be doing research and I do only have a few thousand to invest, but you have to start somewhere. I think the best plan of action right now is to open an E-trade account or an account that I can purcahse foreign stocks if I so choose. Once again I appreciate all of the advice. With all of the info I have received I have a wonderful starting point.

[tangent4ronpaul]

biotechs have been very good to me. I do a lot of research - finding out a lot about any company. On one, I'm down $1K, overall I'm up 8K. When prices crash - look at it as a buy opportunity, and not a loss. If they are up, put in stop loss orders, but don't be greedy - put it at least 10% below the current price. stocks vary a lot. I generally don't do this unless I'm up at least 1K on a stock (have 2 like that now, out of 20). I use a broker who does tech analysis's of ones I like - and I'm picky about what I send him. I've been in the market 4-5 months and have put in 16K of cash. I like stocks that are high risk, high payoff, but it varies. you can buy a lot of stock that sells for pennies on a share, and spread it out across many stocks. most won't do much. some will skyrocket! distribute the risk. I usually don't buy stocks that are worth more than $5 a share, and gravitate to those under a dollar. The more expensive the stock, the more stable it's price is going to be. ie: not gain or loose value. If you are looking at expensive stocks, look at dividends paid.

I've found this site very useful:
http://biomedreports.com/
though http://seekingalpha.com/ is very good and I like yahoo finance for charts (esp over time) and company profiles / news articles about the stock.

good luck to you, and remember, don't watch too closely, don't trade often, do the research and remember that in the long term stocks usually go up in price. Stocks that steadily climb, over time are stable. Ones that shoot up rapidly, you want stop loss orders on, as they will probably drop rapidly too.

hope that helps,

-t

ps: while a bit risky, if I were in your shoes, I'd invest $500-1,000 in that natural gas company that is about to drill. If you hit paydirt, sell most, but keep some shares - that would give you $$$ to invest in other things, if it's a disappointment, just sit on it - they will be drilling in other locations and the price will go back up. NEVER sell at a loss! I am currently trying to buy in round number of shares in the $500-$1,000 range, and/or 400-1000 share lots. If I can get something really cheap, I get up to 20,000 shares and hope I see a significant return.

use limit orders. the higher the level of trading, the lower you can set your bid. if the trading level is low, you need to set it close to the current price if you want it. be patient, it may take you a week to aquire a stock you are interested in.

small changes can mean a lot of money if you have a lot of shares - like a fraction of a cent.

I've seen my unrealized gains go up 2K and down 1K in a day, but my portfolio is worth over 20K. don't stress it. untill you sell, it's just money in play and is guaranteed to go up or down more. once you sell, you have real gains.

in the morning there is usually a spike in prices that goes down around 10 or 11am or so... stocks that go up and up are usually triggered by some news, and announcements, and pending announcements should be paid attention to. it's a gamble, but if the news in good, they usually go up. not always. stay on top of your companies - listen to conference calls. establish a position before major announcements. if you are reactive, you will generally loose money.

if you buy too high, and it drops - buy more. that lowers your break even point.

never, ever put in a market order and always bid below ask. never sell for less than you paid for a stock.

don't put too much money into any one stock. sometimes companies die and go away (you loose your money). hasn't happened to me yet.

actually, I'm going to post these 2 PM,s as others may benefit and more experienced traders might chip in and give better advice.

-t

[nathanmn]

Thank you all for the advice. Of course I will be doing research and I do only have a few thousand to invest, but you have to start somewhere. I think the best plan of action right now is to open an E-trade account or an account that I can purcahse foreign stocks if I so choose. Once again I appreciate all of the advice. With all of the info I have received I have a wonderful starting point.

You need to do a lot of research buddy. Investing and money management are life long things. I don't know how much you make, but I bet that 4K took you a long time to save, and it would take a fairly long time to recoup it. Think of how much time that represents, and with that in mind do a lot of research on stocks and investing. It will be time well spent.

You need to follow the market some, get in sync with the indexes and commodity prices. Get a feel for the economic data and market sentiment and what not. Learn about the various fundamental values that you can look at for stocks.
http://www.investopedia.com/ is a good site, has a lot of information. Check out some books from the library to get some basic information. Read Warren Buffet's biography. Get as much info as you can, and be a skeptic to all the info. Go to yahoo finance everyday and watch things and read the articles. Note how the people there act like they know why the market is moving, they say things like "investors selling off because retail sales weak". That is just conjecture, they don't really know that shit.

Not an easy answer or anything. Its probably not a horrible time to be on the sidelines, as its tough to tell market direction right now anyways. Could go up, could go down. If you really want to put money in right now I'd say get an account with think or swim, which I've heard good things about. I've heard others talk well of zecco, ameritrade, etc. E-trade is a big name, but over-charges for commissions and doesn't offer anything impressive. Buy shares in big, well known commodity producers, especially oil and copper. They are incredibly useful commodities and will probably have demand throughout our lifetimes. However, mostly read and observe as much as you can.

[PaulaGem]

Great questions.

1) Definitely get an IRA. Its just like opening a checking account. Earnings from investments held on these accounts are not subject to federal income tax. This matters because even if you are in a relatively low tax bracket, the cost of income taxes can have a substantial drag on your returns, especially once long term compounding effects are taken into account.

2) Consider a discount broker like Schwab, or Etrade. There are ton of these. You might consider spending some time on google to find out which one is the best for you.

3) Do diversify. The RP crew tends be dominated by hard money folks who like silver and gold. There is a place for these metals in one's portfolio. However, in my view there is a lot of good research that indicates that owning real estate, stocks and bonds can shield you from substantial economic ups and downs. Silver and gold make some sense, but there is less science to back them up. Therefore I would reccomend that you only allocate no more than 5% of your portfolio to these commodities.

4) Please DO consider fees and expenses. Like taxes, mutual fund fees can eat into your overall return. For example, a lot of funds will try to jack you with 4 to 6% fee structures. I would avoid these and instead consider going with a low cost alternative like Vanguard funds.

5) I'm seeing comments like "don't invest in the stock market - the game is rigged". In my view, this is absolutely the worst possible advice you could receive. Sure, some CEOs less than ethical, others however try extremely hard to improve profits for their shareholders. More importantly, stocks can be extremely profitable. I've made a couple of good investments that have netted myself and my wife about $50,000 a pop. If you're not in the market, you'll miss these opportunities.

Is the market risky? Sure, that's the whole point. But, unlike gambling it is possible to mitigate some of the risk via research, talking to others and exploiting what information is publicly available.

for what its worth there is more on my blog.... http://www.dinksfinance.com

Thanks,

James

The reason I say the game is rigged is not becuase of the CEO's . It is becuase the market allows naked shorting - look at the history of NETFLIX - an obvious winner from very early on and there is no excuse for its volitility other than manipulation.

Look at OMG - driven down because someone found out that the CEO was stupid enough to have company stock in a margin account. I'm sure his broker told a hedge fund "we have a sucker here".

Study the history of some stocks where you know and understand the history of the company. You will see that what was done to their value was just plain criminal.

Spitzer tried to do something about this and couldn't. Look up the history and understand "naked shorting" and study the historical charts and indicators of companies you knowbefore you put in a dime.

Ameritrade was shut down most of one friday (can't remember the date, about 8 years ago?) because someone hacked into the DNS servers and disabled access to the site "Ameritrade.com". This had been done on a practice run about two years ago in California, Ameritrade knew about it and all they had to do was prominently display the numeric address of the site "in case of emergency" on all of their statements and info.

During the time Ameritrade was down the retail market was crippled because they are by far the largest retail broker, hedge funds shorted the market down, ran the stops on stocks they wanted, then ran it back up, all in a few hours. Billions was stolen from "investors" in the market. The Wall Street Journal never published this story, the SEC never prosecuted anyone, the money just disappeared (probably into those Swiss accounts they are now looking for).

[stag15]

Peter Schiff's China Fund is a way to get diversified in China. It is supposed to pay a 5-10% dividend as well. I wouldn't invest in any 'growth' stocks as they are rigged and completely speculation. Only invest in companies that pay dividends. It is a lie when people say 'dividend paying companies can't grow'. Dividend paying companies can actually grow faster as they don't waste all of their profits on executive packages.