Investing 102

[Bucketlist2012]

One Guy found the importance in the thread I started and came over here for knowledge.


As well as he was everywhere online trying to learn..Excellent..

But one guy...You would think more would see the importance of what is being talked about.

[MoparCar]

I for one find great importance in this thread. I've watched it from the beginning and learn from it everyday since I am a total investing newbie.

Also, many/most of the online brokerage firms (Schwab, TDAmeritrade, OptionsXpress which is now part of the Schwab group, etc.) have educational sections that have webinairs, videos and other free educational items to help explain the basics of financials, charts, etc. Of course you can get way too overwhelmed in the "trader" items but if you stick to the basics it really does help educate on the whys of financials to help analyze the stocks, dividends and all the terms thrown around. I agree with Greg's comments awhile back---that the overall financial "experts" want to have all this confusion, smoke and mirrors so we feel the need to only use their mutual funds, counseling, etc. In reality some of these videos, etc. really break things down to the basics which have really helped me start to understand the whys and hows of all the reports and charts for researching the companies I want to get to know.

Another thing is some of these brokerages also have free Virtual Trading if you are a little scared to invest yet, want to look at the what if's or lack the initial funds. You can check your virtual investments in real time to see where they are with the market and can at least see the returns that can be had. Then when you are ready to pull the trigger you know what you'll be basically getting into.

Thanks for all the education and please keep it coming!
Wes

[GregWeld]

Originally Posted by MoparCar

I for one find great importance in this thread. I've watched it from the beginning and learn from it everyday since I am a total investing newbie.

Also, many/most of the online brokerage firms (Schwab, TDAmeritrade, OptionsXpress which is now part of the Schwab group, etc.) have educational sections that have webinairs, videos and other free educational items to help explain the basics of financials, charts, etc. Of course you can get way too overwhelmed in the "trader" items but if you stick to the basics it really does help educate on the whys of financials to help analyze the stocks, dividends and all the terms thrown around. I agree with Greg's comments awhile back---that the overall financial "experts" want to have all this confusion, smoke and mirrors so we feel the need to only use their mutual funds, counseling, etc. In reality some of these videos, etc. really break things down to the basics which have really helped me start to understand the whys and hows of all the reports and charts for researching the companies I want to get to know.

Another thing is some of these brokerages also have free Virtual Trading if you are a little scared to invest yet, want to look at the what if's or lack the initial funds. You can check your virtual investments in real time to see where they are with the market and can at least see the returns that can be had. Then when you are ready to pull the trigger you know what you'll be basically getting into.

Thanks for all the education and please keep it coming!
Wes

Wes --- Thank goodness someone is reading and posting too! I get tired of just reading my own stuff -- or Mikes...

I'm personally really satisfied that people are checking their financial health -- and are at least willing to look into some of this stuff. It really isn't very hard or complicated (unless you choose to make it that way) and is fun in it's own way.

[Bucketlist2012]

Originally Posted by GregWeld

Wes --- Thank goodness someone is reading and posting too! I get tired of just reading my own stuff -- or Mikes...

I'm personally really satisfied that people are checking their financial health -- and are at least willing to look into some of this stuff. It really isn't very hard or complicated (unless you choose to make it that way) and is fun in it's own way.

LMAO...I am sure Greg is tired of my posts

But I am stubborn, and patient... I will still be here..

I am glad some are really digging in and putting in the time to learn..

Others will think you are strange, and why bother...they are the one's to not listen to...They have given up, or got burned doing the wrong things with no studying, and they will never invest..Or never invest again..

I still hear talk of the mattress and leaving it in the bank...Inflation will crush them..If it has not already..

I watched this thread for weeks before chiming in with my long winded babble... but the new , smart, hungry additions to the thread add life blood..

[Flash68]

It's great to see on such a generally "financially wasteful" site like a car forum that many are taking to this and running with it, or using it get their financial house back in order.

This thread is the anti-thread on Lat G.


I'll throw something out there... I have been wanting to get into some AAPL but have been waiting for a pullback recently. This article gives me some technical support behind my waiting which I thought some might find interesting. Basically I am waiting for the next scheduled 12% pullback to buy in (see chart within article).

http://seekingalpha.com/article/3955..._article&ifp=0

[Bucketlist2012]

Some of us know that the anti thread will fund more than just the race cars...

No help on the apple buy, but someone will chime in soon..

Funny how i forget i am on a car site... Oh ya..check out some cars whlie i am here,haha

[GregWeld]

Originally Posted by Flash68

It's great to see on such a generally "financially wasteful" site like a car forum that many are taking to this and running with it, or using it get their financial house back in order.

This thread is the anti-thread on Lat G.


I'll throw something out there... I have been wanting to get into some AAPL but have been waiting for a pullback recently. This article gives me some technical support behind my waiting which I thought some might find interesting. Basically I am waiting for the next scheduled 12% pullback to buy in (see chart within article).

http://seekingalpha.com/article/3955..._article&ifp=0

While you're WAITING -- the market is moving relentlessly ahead leaving you behind.

There's an old saying - "Don't fight the FED"... which means ya got to join 'em... and they (the FED) has vowed to keep interest rates low...

Next oldest saying... "when interest rates die (stay low) stocks will fly".

See how the two are linked?

Get into Apple before you miss out on the next $50 move. Or move on and get into something else that you "trust". Never ever never ever buy a stock that scares you to own. Doing so will insure that you'll be what's known on Wall Street as a "weak hand" (play poker? You'll know what betting with a weak hand does to you). This should have been in the first post on this thread.

I have pounded the table over and over about owning stocks you know and understand... and owing best of breed... and being able to hold these stocks during down periods. You have to be comfortable living in your own skin so to speak.... or you get your ass handed to you.

So here's the scenario.... You buy Apple EXPECTING it to go to $600.... You're in at $550... Suddenly something in the news affects the market and Apple (and the whole market) pull back... and now it's trading at $475. You freak out and sell.

I laugh my ass off while buying your sell... and the week after you sell - Apple announces sales and record profits and 3 new products and jumps right back to $550 and the week after that trades to $600.

I'm only using APPLE as an example here. I own NO shares in the company. The INVESTING 102 point is --- don't buy something you don't want to own long term - believe in long term - and can afford to hold long term. This ain't GAMBLING -- it's INVESTING.

Ask yourself if you truly believe that this company can grow from here... can they continue to be best of breed... can they gain market share...

If not -- then you're just being a "momentum" player and momentum players operate quickly and get in and out of stocks for a $1 share gain... They don't care about the company - they just care about which way the stock is going that they own for this 15 seconds.

So -- go to the mall -- stand in front of an Apple store for an hour.... do you like what you see? Is this a company you want to own?

Now -- Let's use INVESTING 102 -- for another "lesson" (I hate calling it that).

$550 per share... if it goes to $600 you'd be UP 10%. Wonderful.

I get 13% in CASH on my Annaly (NLY) shares... regardless of whether or not the share price goes up or down. I get 14% on my Chesapeake (CHKR) shares... I get 8% on HYG (corporate bond etf)... GOOD MARKET OR BAD I GET THOSE RETURNS.

This is why I say - when it comes to investing -- you have CHOICES for what you want to do with your money.

If you have 100 grand invested in good solid stuff and want to play the pure growth of a stock like Apple -- I'd buy it in a heartbeat... but if this is most of your investment money -- or half of it then it's not where I personally would be. If you have a spare 10 or 50 grand that you can just go toss in the street and you want to just park some money and HOPE it's going to go up... then that's the kind of money I'd use for these kinds of buys. Again - just using Apple as an example --- cause it's just one of many. But I'd sure put money in Apple before anything else...

[GregWeld]

A NOTE OF CAUTION SHOULD BE POSTED - By ME!


Remember that I always use "examples" -- real life they might be -- but I also want to poke everyone reading -- that what I do -- is not what you should do!

I pay attention to my investments. I have several accounts - each with at least a VP or SVP adding their input/guidance/headsup. You get that "treatment" even at Schwab if you have enough in your account. So what I'm saying here is --- that when I post up the returns on some of these "names".... I will be long gone if I even WHIFF an interest rate increase. High yields are RISKY! They carry the risk of a tax change from Congress.... they carry risk if the FED signals that the economy is going well and they're going to raise the rates... Trust me -- when they do this -- there will be a big haircut in your capital!

So unless you're on top of your game... I'd stay out of the NLY's - the JNK's - the HYG's of the world. They might be crazy good right now... but these are not names you buy and hold forever. They don't actually even make anything! They're just "yielders" - financial instruments that spin off outsized dividends (right now).

So the caveat is --- Nobody is going to wake up in the morning and ride a horse through town yelling "the FED IS RAISING RATES".... and by the time many of you would figure this out -- it'll be too late you'll already have the haircut.

I'm not saying that I'll be any better at reading this - or be that far ahead of the curve. But I have 30 years of "experience" and pay attention to every nuance EVERY DAY -- Day in and day out. It's my job to keep my "employees" sharp and out of harms way. I'm going to ASSume that many of you will carry on your life and NOT be as attuned to the market and might fall into complacent investing (as some WERE before getting this thread!). You don't want to be falling asleep! This is why it's so important that not only are you getting a decent yield -- but that the UNDERLYING COMPANY is where you want to be.

[NOVA]

Originally Posted by GregWeld

While you're WAITING -- the market is moving relentlessly ahead leaving you behind.

There's an old saying - "Don't fight the FED"... which means ya got to join 'em... and they (the FED) has vowed to keep interest rates low...

Next oldest saying... "when interest rates die (stay low) stocks will fly".

See how the two are linked?

Get into Apple before you miss out on the next $50 move. Or move on and get into something else that you "trust". Never ever never ever buy a stock that scares you to own. ...

Greg, First I truly commend you and all the others that have contributed to this thread, simply awesome and the discussion is very easy to understand, I wanted to comment on Apple, my 401K is switching out one fund and adding (Ticker PRWAX - T.Rowe New America Growth) there biggest holding is Apple, then Google, it is going to be available to us March 22nd, I knew that I was going to get in, this just confirmed it. (now I have not decided how much just yet, but I am putting some in for sure!)

My 401K is very similar to others we can only pick funds that are in there (we have about 12 choices of Large, Medium, Small caps, a bond fund and a basic money market fund) but I check them and I try and make sure I am in the ones I feel are the best for me, I have about 25 years until retirement so my risk level is higher then someone who is 5 years away from retirement.

Thanks again Greg (and WSSix for starting this thread) for putting your time into this thread and educating us on this subject it is truly very rewarding and interesting, I check it daily!