Dumb stock market questions...

[froghunter]

I'm clueless and would have to hire someone to invest for me. I would also be totally at their mercy and I don't like that.

Dumb question #1:

Can you buy stock in one place and leave it alone or is it better to keep moving money around?

My fear is if you buy stock (1,000$) and the price drops(to 700$) you have lost money. But, if you sit on it until the stock price rises again (back to 1,000$)then you are back to even. I know this isn't totally realistic but am I even close?

At any point you feel the need to face palm yourself just remember the title and the fact you chose to open this thread!

[trash2]

Yes you can leave it.

[BBRU]

Unless you're savvy in the stock market, I would highly suggest a broker and invest the vast majority in a Roth IRA. Then start to dabble in stocks on your own, (i.e. TDAmeritrade or other online trading broker.

[dustoffer]

Don't try to time the market---meaning I'll buy now when it is low and sell next year when it is high--example, buying oil stocks now in anticipation that the Saudis, Russian, Iranians, etc are actually going to cut production for a long time, because when oil prices go up, they are gonna start pumping again, and then prices will go back down.

Do a search for dollar-cost averaging and learn about it, also for "Couch Potato Portfolio" which is for average folks like us that are either new in the game, or don't want to spend hours and hours studying stocks, etc.

And, a good financial advisor is your friend.

[91cavgt]

Why do you think it's called a casino?

[eradicator]

There is gonna be a correction in short order

[Dchilds]

There is gonna be a correction in short order

What makes you think that?

[12RingKing]

What makes you think that?

People always say that

[Kdog]

What makes you think that?

Maybe because the market is at near and all time high (at least it was yesterday). Seems to be a lot of optimism, probably too much. Wish I would have dumped a lot of money in right after Brexit. Not an easy thing to do if you are licking your wounds though from a huge downturn. It really is a lot like gambling. I have enjoyed playing around with some stocks the past 8 months. Doesn't hurt that the market is way up!

To answer OP question. If you look at TD Ameritrade's website they have an educational section. They have a lot of good information. You can always start playing the market without putting any actual money in. And you don't lose or gain any money until you sell.

[JustinJ]

Buy it. Leave it alone. Nobody can beat the market CONSISTENTLY.

That being said, buying one single stock is quite a lot of eggs in one basket. Diversify.

[ntxshooter]

Once you do a little homework it's really not that difficult. Years ago I went with Edward Jones and just had them take care of it. When I finally got smart and started to learn just a little more (seriously just a little) I realized I was losing a lot of money just in fees and such. Last year switched over my ROTH to vanguard using a low cost index fund and handle it myself. Wish I did it years ago. Couldn't be much easier.

I truly believe index funds are the way to go and you don't need but 2 or 3. I'd suggest a total stock market fund for starts. lot's of great info here:

https://www.bogleheads.org/wiki/Getting_started

[Dchilds]

Buy it. Leave it alone. Nobody can beat the market CONSISTENTLY.

That being said, buying one single stock is quite a lot of eggs in one basket. Diversify.

This is my point. Publicly prognosticating a sell off in an open forum with folks that may already be timid about entering markets can be dangerous.

My degree is in personal financial planning and I've spent my career as a non-commission (fee only) financial advisor. I spend a lot of my free and at work time on just this. I can't predict any better than any of you can what the markets may or may not do. The key is to develop a plan and don't let timing be a part of it. There are lots of great reads out there regarding market timing and the general investing public's experiences in the market vs performance of the funds/stocks/ETFs themselves. It's incredible how investor psychology drives the car off the cliff.

[eradicator]

What makes you think that?

Kdog gave a short enough, common sense answer. Market is all time high. Interest rates are going up.

The only thing that could help stabilize it is if oil rebounds significantly.

[eradicator]

This is my point. Publicly prognosticating a sell off in an open forum with folks that may already be timid about entering markets can be dangerous.

My degree is in personal financial planning and I've spent my career as a non-commission (fee only) financial advisor. I spend a lot of my free and at work time on just this. I can't predict any better than any of you can what the markets may or may not do. The key is to develop a plan and don't let timing be a part of it. There are lots of great reads out there regarding market timing and the general investing public's experiences in the market vs performance of the funds/stocks/ETFs themselves. It's incredible how investor psychology drives the car off the cliff.

I don't disagree. Dollar cost averaging is the best and SAFEST way for folks to get a decent return over their lifetime.

But there is also a chance to make a ton of money when the market is down. Im being pretty safe right now for my needs. To each his own.

[GARY]

Unless you're savvy in the stock market, I would highly suggest a broker and invest the vast majority in a Roth IRA. Then start to dabble in stocks on your own, (i.e. TDAmeritrade or other online trading broker.

This...or buy mutual funds. The hardest thing I have found in the market is not which stock to buy or even when...but when to pull the trigger and sell.

Lot's of good advice by everyone above.