Stock Market book for dummies ??

[Annalise Lane]

Well it's time to start my retirment plan, and playing the stock market is one of many ways I will be able to get to a point of fucking only one cock (shivers) The problem with the plan is, I know nothing about the stock market.

It's been said the banks have these portfolio plans that go from safe to aggressive. The safe plans are for those that know as much as me but want to incease their investment in a secure way but protect their money with some safety. Aggressive profolios are ones that have high risk and in turn can have high return value.

There are traders and their is online stock trading. Securing a trader isn't something I'm interested in at this point, because a few of my gentleman are traders and their fee's are way to high. To be wise with ones money even the fee's to do a trade should be put into account. I've been told that the fee's should not exceed 1 - 2% of your trading value.

Then there is online trading - NOT a clue - BUT the fee's are lower.

My knowledgeable stock guy will be guiding me along with the right investments. What I would like to bring to the table is a bit more knowledge about the whole process, which is the reason for these question, 'Book for Dummies and knowledge about the stock market'

I will be dealing in blue chip stock ONLY, as this is easily secured by Banks without having to liquidate.

And if any of you suggest GIC's or RRSP's I'm already on that !!

oh one last thing - keep the words simple, remember I dont have a clue - lol

 

[Pimmel]

go safe, buy a mutual fund.
i use Philips Hagar North, in my balanced portfolio, their funds made me a combined 30% over the last 3 years.

 

[Annalise Lane]

https://www.phn.com/ - mutual funds are also held by the banks and is what I've already discussed without using the term 'mutual funds' to discribe what I'm not looking for.

Their to safe and take to long to increase your profits - or at least that is my understanding. But then you add, you've increased your porfolio 30% in 3 years, which equalizes out to 10% a year, the housing market will give me a safe 7% a year even on a dump - I WANT more ~ softly smiles ~ So I guess if your' happy with 10% a year have at it ... I WANT more !!!

 

[Randy Whorewald]

Try residential real estate in a major metropolitan area. Rent it out & let the tenants pay it off for you. All the while the value is increasing at more than the inflation rate.

 

[Yuppie]

Try residential real estate in a major metropolitan area. Rent it out & let the tenants pay it off for you. All the while the value is increasing at more than the inflation rate.

That approach worked 5 years ago, but much harder to pull off now. Before the huge jump in housing prices, one could buy a house/condo and rent it out to pay off the morgage. But nowadays with a new 2 bedroom condo in Vancouver going for 1/2 million, how does the average joe come up with the upfront downpayment (unless you put the downpayment on credit). What if interest rates go up (and they will)? Good advice, but easier said than done.

 

[Prospero]

Well it's time to start my retirment plan, and playing the stock market is one of many ways I will be able to get to a point of fucking only one cock (shivers) The problem with the plan is, I know nothing about the stock market.

It's been said the banks have these portfolio plans that go from safe to aggressive. The safe plans are for those that know as much as me but want to incease their investment in a secure way but protect their money with some safety. Aggressive profolios are ones that have high risk and in turn can have high return value.

There are traders and their is online stock trading. Securing a trader isn't something I'm interested in at this point, because a few of my gentleman are traders and their fee's are way to high. To be wise with ones money even the fee's to do a trade should be put into account. I've been told that the fee's should not exceed 1 - 2% of your trading value.

Then there is online trading - NOT a clue - BUT the fee's are lower.

My knowledgeable stock guy will be guiding me along with the right investments. What I would like to bring to the table is a bit more knowledge about the whole process, which is the reason for these question, 'Book for Dummies and knowledge about the stock market'

I will be dealing in blue chip stock ONLY, as this is easily secured by Banks without having to liquidate.

And if any of you suggest GIC's or RRSP's I'm already on that !!

oh one last thing - keep the words simple, remember I dont have a clue - lol

Good for you. I wish you good fortune.

All I can say is that I hope you can trust this stock guy whose "guiding" you along. You have to wonder what's the catch... What's in if for him.

You said somewhere about potentially getting ten percent out of a bank. I find that very hard to beleive.

But you can get ten or more percent elsewhere. But there is a risk involved.

My best advice for what ever its worth, if you don't know much about it (and most really don't have the time to) is to find someone you connect with and trust. Go slow. And don't put all your eggs in one basket. It's your money after all. Only you can take responsibility for it. Whether it goes up or down. So don't go crying to the person who you entrusted if it goes down. There will be good days and some bad days.


Iwannarocu:

It is my opinion that for the most part mutual funds are too expensive. PH&N has a couple which are worth their fees, but studies by university prof's show that most mutual funds can't recover their fees and those that can, can't be identified in advance.

The jury is still out as to whether or not those that can consistently beat the market do so by skill or chance. Meaning if you have 5000 throwing coins some of them might get 7-8 or more heads or tails in a row, is that luck or skill?


Yip, I've heard similarlt from my FP.

And I think both would play a role to varying degrees, depending on the person.

And to state the obvious... buy low and sell high.

Not surpsied the markets took a dive. Be interesting to see what happens next.

 

[87112]

I hear it not too late to dive into the China bubble. Its doubled in 06 and now up 50% for the year. I guess its got another run dont you think d

 

[Annalise Lane]

~ sigh ~ boys boys ----- I need a book of Stock market ABCs PLEASE !!

 

[mick_eight]

~ sigh ~ boys boys ----- I need a book of Stock market ABCs PLEASE !!

Anna, lots of money can be made with penny mineing stocks,metal prices are the highest in history. Its the wild west show of stocks tho. If you pick the right one, you can make huge returns. It helps to know a little about mineing, but better to know someone active in the biz. Its a lot like going to the casino, pick the right one and you may hit big . Blue chips are steady, but small return.

 

[Smother]

~ sigh ~ boys boys ----- I need a book of Stock market ABCs PLEASE !!

Annalise......Buy any book from Warren Buffett ( 2nd richest man in the world ) or Peter Lynch ( he's from Fidelity funds company ) and also read " the wealthy Barber" . Excellent Book.

The Millionaire Next door is another really good book.

I'm not a millionaire but they've done really well for me over the last 12 years.
But I follow the Stock Market quite closely on a daily bases.

But these books will help you understand and what to do.

Good luck and go long!!

 

[Annalise Lane]

Also here's a site you might want to look at. I've heard him on local radio and he seems very knowledgeable http://www.bobbrinker.com/

One book I may suggest, which is written well, is Barron's Guide to Making Investment Decisions.

These suggestions came from another board out of NYC - I guess I have somewhere to start now.

 

[Annalise Lane]

Annalise......Buy any book from Warren Buffett ( 2nd richest man in the world ) or Peter Lynch ( he's from Fidelity funds company ) and also read " the wealthy Barber" . Excellent Book.

The Millionaire Next door is another really good book.

I'm not a millionaire but they've done really well for me over the last 12 years.
But I follow the Stock Market quite closely on a daily bases.

But these books will help you understand and what to do.

Good luck and go long!!

OH yeah ... there we go ... more to add to my shopping cart at Chapters

Thanks a bunch Smother !!

 

[LonelyGhost]

~ sigh ~ boys boys ----- I need a book of Stock market ABCs PLEASE !!

"a random walk down wallstreet" ... yes its a book.

to be honest, 99% of books are out of date
and useless ... they may explain the 'lingo' but
not what to invest your money in ...

since you want to stick with blue-chip stocks,
what you want to know is this:

P/E: price to earnings ... good is below 10:1,
better is under that (6:1), best is also paying the
highest dividends.

Dividends: basic payment from the share on a
semi-annual (or quarterly) basis ... the higher the
percentage the better ... but typically around 'prime'
is what the better ones will pay.

Fundamentals: used to be you could read the income
statements and understand the company ... now you have
companies that lose money every day and have high share
values, and companies with more cash than the collective
value of their shares that are worth nothing!

Instead of fundamentals, understand the 'sector' (what does the
company do, who else does it, where do they rank, what do you
think the sector's future looks like?).

For example: Canadian Banks ... making tons of money on the
low interest rates ... as interest rates rise the value of bank stocks
will typically go down ... why? because money becomes expensive
and scarce and there is a greater likelihood of foreclosures (so
watch the real estate sector too) and the banks' billion dollar
profits go poof.

Stay away from 'high tech' ... and mining ... and oil and gas ...
and manufacturing ... and 'Asia' ...

So what does that leave? probably mutal funds ... I have a monthly
purchase of a dividend fund going ... decent returns, but the fund
only invests in shares that pay dividends and then reinvests those
dividend payments into more share units. Won't get rich doing this
but its better than nothing.

 

[nube]

1001 ways..

There are a 1001 ways to make money. And at least twice as many ways to lose.

Stock market is one form of investment and is usually done 2 ways..online without an advisor and engaging the services of an advisor. Over the years my using an advisor has NOT been very successful. It is hard to find a good one.

I have done some on line stuff basically playing with money that I could afford to lose and you can learn a lot that way too. Surprisingly I have don reasonably well using TD waterhouse and picking stocks that they recommend.

My best as been real estate - the place I live in. Its value has gone up but i can only cash in when I sell, then what??? Having rental property is also with risk and problems.

The one suggestion that I have is buy something you like, a vacation property that you can enjoy while it appreciates is much more rewarding than owning something that is just revenue producing --that is more like work

As its been said, don't put your eggs in one basket. BUT also don't take advise from someone who isn't making a lot of money himself. If you want to be successful, associate yourself with successful people.

 

[Smother]

"a random walk down wallstreet" ... yes its a book.

to be honest, 99% of books are out of date
and useless ... they may explain the 'lingo' but
not what to invest your money in ...

since you want to stick with blue-chip stocks,
what you want to know is this:

P/E: price to earnings ... good is below 10:1,
better is under that (6:1), best is also paying the
highest dividends.

Dividends: basic payment from the share on a
semi-annual (or quarterly) basis ... the higher the
percentage the better ... but typically around 'prime'
is what the better ones will pay.

Fundamentals: used to be you could read the income
statements and understand the company ... now you have
companies that lose money every day and have high share
values, and companies with more cash than the collective
value of their shares that are worth nothing!

Instead of fundamentals, understand the 'sector' (what does the
company do, who else does it, where do they rank, what do you
think the sector's future looks like?).

For example: Canadian Banks ... making tons of money on the
low interest rates ... as interest rates rise the value of bank stocks
will typically go down ... why? because money becomes expensive
and scarce and there is a greater likelihood of foreclosures (so
watch the real estate sector too) and the banks' billion dollar
profits go poof.

Stay away from 'high tech' ... and mining ... and oil and gas ...
and manufacturing ... and 'Asia' ...

So what does that leave? probably mutal funds ... I have a monthly
purchase of a dividend fund going ... decent returns, but the fund
only invests in shares that pay dividends and then reinvests those
dividend payments into more share units. Won't get rich doing this
but its better than nothing.

Lonely....this is all fine and dandy and I've been done it myself for over a decade now. All you comments are fine for people like you and I. But as for Annalise who is just learning and UNDERSTANDING the whole thing....these aren't for her just yet. She needs to learn and Have a basic knowledge of how it works first.

You can't go into a hockey pool having never ever watch the game. You gotta watch the sport and get to know the players then you can go into the pool. Got it??

Annalise....read those books first and then what Lonely is talking about will come to you later.


Cheers.

 

[Mephistophiles]

and also read " the wealthy Barber" . Excellent Book.

This is exactly the book I was going to recommend. It's the first book I ever read about investing because, like you, I knew very little when I read it. It's good basic knowledge and advice about proper attitudes toward investing, as well as a good, simple to understand lesson on the mechanics of it. It's written as a story about a small town barber that became a millionaire through investing. As he happily continues his work of cutting hair (because he likes it, not because he needs to!), he relates stories to his customers about how he did it, and explaines to them how they can do it too. It reads more like a novel then a text book. I don't know if some of the info in it may be a bit dated because I read it about 15 years ago. But, the info on basic mechanics of how stocks work, and on the attitudes and knowledge you should have in order to win are still the same, and probably will remain the same for our lifetimes. It's not rocket science! It's easy to learn if you stay away from the people who like to impress you with their fancy language and big words! I was going to offer to give you my copy, but I can't find it now.

My 2 cents;

Don't rush it! You want to make a lot of money quickly. We all do. Trying to do it fast is the surest way to lose it all and end up working in some kind of slave labor when your 60!

Also, be cautious of listening to stock brokers and financial advisors (sorry, no offence intended to those of you who are in these professions. I know you're working hard for a living just like me!). These people do not make their living off of helping you make profits. They make their living from the transaction fees they charge when they "sell" you a particular stock. Some deals or strategies make them a higher profit then others. Guess which ones they will try to sell to you. Ultimetly, it doesn't matter to them, or to their company, if you win or lose. They still get the fee! Most of them will deny this, but it's true nonetheless. They are always advertising for new clients because they need to replace the clients whose accounts have run dry from losses and no longer generate their fees! YOU are the only one who truly cares about how much money YOU make! If you want to learn about how to make a lot of money in the stock market, learn from someone who has actually made a lot of money in the stock market (Warren Buffet, David Chilton, Etc). Most brokers and advisors live from paycheck to paycheck and never actually invest any significant amount of their own money in the investments that they recommend for their clients!

 

[LutherBlissett]

Money Logic by Moishe Milevsky

http://www.amazon.com/Money-Logic-Moshe-Arye-Milevsky/dp/0773731717

He's a U of T professor who does in-depth statistical analysis on risk/reward in all types of investment decisions (not just the market). This book is one of the few Canadian books that is a top seller in the U.S., too. Despite all the stats behind his logic, he delivers what you need to know in a plain talk fashion and with humour. Be prepared though, you will learn things that very few financial advisors will tell you (largely because they haven't done their statistical homework). Milevsky is a fucking genius -- he won the Globe and Mail's stock picking contest three years running over other financial gurus until they retired him from the contest.

I am a relative financial and stock market dummy but I understand pure statistical analysis and his is, without question, the most cogent and crisp I have come across. I have followed his basic advice for ten+ years and I've beaten the markets by a nice margin. I don't make big cash when it is hot but I lose very little on the downturns. My friends often brag about their hot stocks or mutual funds but they are real quiet when things turn sour.

I use a capital management firm now with very low fees and extremely broad range of investments they make for me (stocks, bonds, money market, foreign content, ethical funds, etc.) but you have to have a pretty hefty buy-in to start with the best of these types (my funds are also secured from pilfering through a national bank). I set my aunt up with Phillips Hager North and she has done well on their low fee stuff over a long period of time. The nice thing for dummies like us is that these types of firms do all the worrying about the markets for you. If you have considerable cash and you are smart enough to know you are dummy, it's the only way to go.

 

[maxx50]

Love it or hate it!

I happen to love playing the stock market .. only one problem .. when i am right.. I do very well .. and when i am wrong .. i get fucked.. that is not a trading term .. but it is appropriate..
I only read one or two books on the subject .. the first was on options... which i understood. perfectly .. and the second was on terminology which takes abit to understand. Any other book on how to only can tell you how one person did it and you have to have the same understanding and discipline that they have, which toke hem years to develop. For some one who wants to get in now .. make loads of money .. and not make the mistake .. sorry it is not possible .
I jumped in with both feet .. back in 2001. and i have made a lot of mistake. But i still see the potential every day to make a good dollar .. from the stock market with options
I know .. most investors .. bawk at options .. they are risky .. you can loss all or most of your money in a short time, and you have to have some insight .. as to what the market is doing in a sector that you are trading in.
But that being said .. options are the only way you can tune $10,000 into $100.000. in a year.

Here is why i am a believer .. Every day there are stocks that .. make a jump .. of 5% ..!0%.. even 20%.. . depending on the stock price .. say a $5.00 stock .. you make .50 cents to a dollar.. or on a $150.00 stock you can make $7.50. to $30.00 And that is all well and good . if you have enough money to hold a large number of those stocks .. With the $5.00 stock 2000 shares . will be $10,000... and you could make $2000 on that rise in price ... and with the $150 stock ...2000 shares will be $300,000 . so you may only want 100 of them ..which is $15,000 and you will make again perhaps 20%.. that is $3000. And when the stock dropped likewise you will loss that mount .
So where does options come in . well they allow you to have that $150 stock... and that profit of holding 2000 shares rather then 100..and all you have to pay is 10%. or less for an option on that stock .. which allows you to have the gain that the stock make in the time that your option is for .. yes the time that you have optioned the stock for .I know I am trying to explain option as i go a long to someone how has never bought options. .where as I do understand how they work .
The best example would be .. an option to purchase a house .. you want to buy a house .. you put down an offer.. and they accept .you have bought an option on a house .put down your deposit..and there is a closing date .of 30 to 60 days .. when you have to have the money. and pay.. Now the price of the house goes up in the next 30 days.. in theory you could sell your option to purchase to some one else.. and and sell it for more then you are paying. taking a profit with out even owning the house.
That is how an option on a stock works . say Apple computer (stock simbel APPL) is at $ 85. and you buy an option to buy APPL at $85.. in the next 30 days the option may cost about around $8.00.. I won't go into the formula that they use for calculating this .. but there is one .
So you buy 1000 options .. cost $8.000 ..and you control $85,000 worth of Apple.. now in the next week or two, Apple stock rises.. to $95. that is a 12% gain.. your option has gone from $8. to $18.. that could be more or less .. depending on the formula.. but at any rate you are looking at a %100 gain.and you $8000 is worth $16.000.. I would say sell.
The down side is you could loss your $8000 or part of it if Apple dropped below $85 or stayed at $85.. That is where you have to be willing to take a loss to come back another day..
The example i have given is not unreasonable to expect .. . I have done it meny time .. not at those high number .. although i did have options on Apple when it did exactly that , go from $85 to $96 in less then a week..
Noe my options I bought out of the money at $90 for a round $3.50.and when Apple went to $95 .. i sold my options at $8.50... But on average i play low cost stocks .. and options that are below a dollar...
For all the time I got it right , there is still to meny time I have got it wrong .. and not wanted to sell my options at a lost .. that is the key to success.. you have to know when to take a lose. and not try to hold on for your money back.. It is a hard lesson to learn .. and it applies equally to holding the stock.. just ask those that rode Nortel to the bottom.

Now I am going to get slammed again by all those that know nothing about options ... But I still love them.

If you want to see what I mean just go to any stock traking site .. that show the stocks that are the top gainers for the day .. and the top lossers for the day .. or follow the blue chip..Apple is one

 

[mick_eight]

Anna I think you may have a bit of reading to do. Then when we talk ahout bull, bear, short selling , boiler rooms, puts and salted claims, you'll have some idea . I've been in it for years and still get confused all the time. Grow dope, more money and less risk.

 

[Annalise Lane]

Anna I think you may have a bit of reading to do. Then when we talk ahout bull, bear, short selling , boiler rooms, puts and salted claims, you'll have some idea . I've been in it for years and still get confused all the time. Grow dope, more money and less risk.

lol mick I'll take my chance with this group of men, the dope growing crowd doesn't really like square hookers, and the jail time would kill me, NO cock around, what would I do 'Cucumbers ?'