Stock Market

[tmette]

So I'm in my mid-twenties saving up some money and thought about investing a couple thousand in some technology stocks. I figure since stocks are at their lows right now, why not invest in 2-3 different ones and wait 5-10 years? I obviously don't have enough money to invest in the giants like Apple, Google, and Amazon. I was thinking of stocks more like Cisco, Red Hat, and quite possible Blackboard (especially with all the online classes nowadays). These are all relatively somewhat cheap stocks that I could invest in. I'm really only looking into technology stocks because those are the companies that I know the most about. Too bad I couldn't travel back in time and dump money into Apple and Google, I wouldn't even have to work! :)

What are your guys/gals opinions on these? Do you invest in the stock market?

[sdowney717]

HOGS
HRBN
SDTH
EXC
PINVX
FMAGX
are what I am into stockwise.

I like the stories of the individual stocks I buy. One mistake people make is being over invested all over the place, too many stocks you might as well just buy the fund or index. I own several funds and I also have savings bonds

[JDShu]

Take a look at "A Random Walk Down Wall Street" by Burton Malkiel for some insight into the stock market. Its pretty classic. The basic advice is, make most of your portfolio index funds, as they will give you a stable return, given that the economy grows in the long run.

[LowSky]

Best rule to live by: Diversify. Dont place all you money into one part of the economy. If one area of the economy crashes how will it affect your investments?

Don't expect huge gains, like doubling overnight. Buy stocks you hope make 3-5% a year on.

Plan to only hold a stock for only a period of time or until it reaches a prefered selling price, and then sell it. Dont hold out thinking it might go higher and higher. Be comfortable in knowing when to get out even if it means things can only get better. Actually take a look at a companies holdings. Little cash and high debt is a company to stay away from. So are companies that cannot maintain its executive or boards.

Lastly invest in companies you believe in. I don't mean believe they will make you money, but you believe they are good and honest. If something doesn't smell right don't invest. Remember every company will have bad years and good years. Actually getting in on a bad year and sticking with them until a good year can be very profitable for you. Recently Ford was a great example of this.

If you have no idea where to put the money, place it into a mutual fund or CD to gain a higher interest rate, until you know what you want to invest in.

Most of all remember that the Stock Market is just Educated Guess Gambling. Its controlled more by emotions and than math. Even a company making profit can take a hit on their stock if too many people are annoyed at the supposed underperformance.

[sdowney717]

stock trading is based on the greater fool theory, just like housing, it can become a tulip mania.
You can try trading, it is high stress, never put too much into the market, it is truly a crap shoot, And when you need the money, most likely the market will not cooperate.
My best investment turned out to be my savings bonds, mutual fund since I have owned it 20 years, and my house since I bought it way before the accelerated market took off. If I had to pay rent it would be perhaps 1200 a month. My house payment is only $200 per month and I have a home equity line that is interest only. I have no mortgage and no car payments. My one gratuitous expense is a boat sitting at a marina.

I like some Chinese stocks right now.

Also consider your job a very worthy investment. Even if you dont like it much, it is earning you your way through life.