People Are Who They Are!

The Stock Market

Most of you know that my brother is a big part of my life. We are both divorced and about five years ago we decided to buy a place together and rebuild our lives. We bought three acres and a used trailer and started work on the place. Shortly into our quest, I was laid off from my job and he was left with the burden. He stepped up to the plate though and kept paying on the property and kept making improvements. He’s a good man. Today, the property is paid for and the trailer has gone from being a piece of junk we paid $2000 for, to a nice place that’s paid for. I can’t tell you what a good feeling it is to know that your home is paid for and that you don’t have to worry about loosing it no matter how bad things get.

I work and pay my own bills here which isn’t much since it’s just the utilities and I am good about controlling them. He stays out on the road working so I basically live alone. We were talking yesterday and he has built up a nice chunk of savings and wants to continue to invest his money. He’s got a lady friend now and is contemplating buying a house with her, something out of the foreclosure market and get it paid for quick like we did with this place and that will give him two homes that are paid for. That’s great. That move will be on him and her.

However, he wants me to start studying because he wants to invest in the stock market and he wants me to do it for him. Now I’m excited. There’s a lot to know about the stock market though. It’s not something you can just jump in to and get anywhere. I do know people that have done really well with it though that I would never have thought were capable of figuring it all out. My ex being one of those. So, if he can do it and a couple of other people that I’ve known can do it, I know I can.

I started last night just going through a couple of the online trading sites like Scott Trade and TD Ameritrade. So far of those two I like TD Ameritrade better. The site tools and education seem much better and the education is what I’m really after right now. I won’t have a ton of money to work with but I will have enough to make it worth my time to start learning what I’m doing.

So, if anyone already trades online and has any pointers or suggestions, I would love to hear from you! It would be nice to have someone to ask my questions to.

 

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10 responses

  1. I don’t gamble in any way (well … except for the lottery tickets I bought when it got up to $160,000,000.00 …), so I’m not an expert. BUT – I have heard interviews with Warren Buffet and others who say that you should buy stock in companies that have been around for a long time and that you use. Example, if you like Pepsi, invest in Pepsi. If you drive only Fords, invest in Ford. And so on.

    And don’t do what I’d do – panic when the stock drops a little and then start moving it around. You end up paying more in fees than any gains you might make.

    Good luck, and I hope you find someone who has done the online trading and can advise you on doing it successfully. Personally I like to do business face-to-face with someone so that when they lose all my money I can deal with them fist-to-face …

    July 29, 2012 at 11:50 am

    • Right now I am studying. TD Ameritrade has some classes online that I’ve been listening to and they talk about investment strategies and learning how to know when to get in (what to watch for) and when to get out and cut your losses. I hope I find someone too GOM. There’s an awful lot of information to muddle through otherwise before you can even start. Thanks for the good luck wish!

      July 29, 2012 at 1:45 pm

  2. I did some playing in the stock market, only by necessity. I had myself backed into a very tight corner and needed money quick. Quick being a relative term. When I needed to have over $100k and needed it in 14 months. I would say the GOM has it right in a way. I got very lucky that at the time, the market was really down, and I bought into Ford stock at the basement price of $2 or so a share. It rebounded to a price of $13 a share when I cashed out. More luck than anything. I achieved my target with about a week to spare, as the end of the year approached, I needed to be cashed out and have the money ready to use. If I could have waited a little longer, I would have made another $1 a share.

    Currently, I use a site called Prosper.com for investment. It is a peer to peer lending site where you basically guarantee loans for people. Some people want money for business launches or stock, some need it for medical, car repairs, virtually anything. You can invest a little or cover the whole loan. I tend to invest between $50 and $100 per loan and currently hold dozens of notes for those amounts. I own a piece of this person’s loan. When they repay, I get the principal and interest payments. Since these tend to be mainly high risk loans, there have been a couple that have gone to collections.

    Overall, I invest in high risk, people trying to consolidate credit, fix homes or cars, people in need who can’t get help anywhere else. I figure that if they default on the note, to me it’s $50. To them, it was a miracle. The return so far has been about 24% on my investments. That includes factoring in the couple that defaulted. For my money, and it is my money, I’d keep investing in loans because it helps others and I get a little bit back in return, more than I’d probably see in the market with a small investment. Important thing to remember in the market, no matter how low a stock goes, you never lose money, or gain it, until you sell the stock. First thing you need to assess is what kind of return you are looking to get and then what is your time frame for doing so. Is this to be a short term, make as much as you can or a long term, suppliment for retirement thing?

    My final bit of advice would be caution. Do the research, understand what you are getting into and with the head on your shoulders, you’ll go far, no matter what you apply yourself to.

    July 29, 2012 at 12:41 pm

    • awwww, thanks K. I am doing the research and that’s something that I thoroughly enjoy, learning anything new, and I am cautious enough, especially since it’s not my money, that I won’t make a move until I feel like I have a little bit of a handle on what’s going on. I have the time to study though and that’s why he put me up to the task instead of trying to get into it himself. He doesn’t have the time. He trusts me too which feels really good, but also will feel really bad if I loose money, so it’s definitely a double edged sword.

      I might very well look into the site you are talking about. That sounds like a good way to invest. It’d be nice to know I was really helping someone along the way. You’re such a good man.

      You asked is this to be a short term make as much as you can or a long term supplement for retirement thing, well I’d really like for it to be a long term make as much as you can and then it automatically becomes a good retirement! lol I’m a dreamer so I would never be a passive investor, hell I’m not passive about much of anything! lol Passionate, that’s me, about everything. If I get into it, I’ll be full steam ahead.

      July 29, 2012 at 2:03 pm

  3. I think trading stocks is very fascinating. That loan idea is too.
    Keep us posted.

    July 29, 2012 at 7:37 pm

  4. The stock market is only for people who can afford to lose the money; and never borrow money to invest in the stock market.

    July 30, 2012 at 4:03 am

  5. I agree with FD, I think. Once you invest, I think it’s considered a wash. If you lose money, just remember to not cash out. It’s not as though you’re going to get all of it back if you cash out. It’s still “free” money once you sink it in there.

    July 30, 2012 at 6:08 pm

  6. I agree with FD. I actually pulled all of my savings out of the stock market a couple of years ago. It’s just too volatile. I keep hearing about the upcoming local and state pension crises that are just beginning to rear their heads. Several cities have declared bankruptcy in just the past year. That’s sure to have a huge ripple effect. Then there’s the instability in Europe. I just don’t like having all my money wrapped up in something over which I have little to no control.

    Best of luck to you. I’m sure your research will be stellar.

    August 9, 2012 at 12:40 pm

  7. Hi There!
    I’ve nominated you for the Very Inspiring Blogger Award. Check out your link here:
    http://kimkiminy.wordpress.com/2012/08/09/very-inspiring-blogger-award/
    Thanks for inspiring me!
    Regards,
    Kimkiminy

    August 9, 2012 at 12:51 pm

  8. Thumbs of for wanting to try. I find stocks pretty scary. So much up and down and one always needs to keep an eye on it. But hey, start small. I am sure you will be smart about it and then it can only grow! Good luck!!

    August 21, 2012 at 10:26 am

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