Investing in the Market?

[kingsnthahole]

now that the banks are beginning to show signs of life again, and with the huge return on invest Goldmann Sachs showed, a well as a few other well known banks, including Bank of America, i figure it's time to take advantage of the market lows. My next big poker cash-out is going to go directly into the stock market. My question(s)to all of you is/are:

1) Do you currently own any stocks?

2)Did you own them before the market crashed or after?

3)Do you have any wise words of advice for a first time trader?

i currently have mutual fund shares which are beginning to slowly rise again, however, the return on investment X the amount of time waiting for the gains, just doesn't seem like anything to me. I also am not planning on buying into already proven shares of big product companies such as google, microsoft, and apple for a few reasons and heres why...

a)google is rediculously overpriced and EVERYONE has google shares(google is a great product and something i use everyday but i will not invest in something that's close to reaching its peak at 400+ a share)

b)microsoft has been around the block but I feel like ever since they ditched XP, it's been downhill...i am using vista right now as i type this and it's not at all user friendly...also, google is planning on launching a brand new software product to rival MSFT office and within a year or so, launch an entirely new operating system...AND ITS GOING TO BE FREE! go google, i'll use that sh!t!!!!!!!

c)Apple macintosh, been around forever, always makes a new product every year, and if i had a sh!t ton of money to invest with, i'd def go for apple, they've practically monopolized mp3 players without actually doing it, by making the Mini's affordable. this one hovers around 150+ per share, not too exp, however were talking about me investing roughly $1K to start....

[freeringo]

I wish I had some money to invest.

[BnLM5]

I wish I had some money to invest. :(

I don't know alot about the stock market.

So I would suggest that you bet it all and double it up! JK lol

[klinkman]

1) I currently have a small amount of money in a Mutual Fund, but no stocks.
2) Bought them before the crash before this one. Supposed to be part of my college fund.
3) Trading is a lot like poker. Active trading is speculation, not investing. If you want to invest, buy and hold. Trading is a zero-sum game, every dollar you make by day trading and the like is lost by someone somewhere else in the market.

If you only have a few thousand, day trading is not for you, as you won't have the bankroll to be able to weather bad bets, even if you leverage yourself. If you only have a few thousand, you also won't be able to really buy a diversified portfolio to buy and hold. My personal finance instructor recommended that you hold at least 30 different companies, from different industries, as stocks do not move in "lockstep". A well diversified portfolio will help weather downturns such as this one, as some stocks do well in bad economies (think Meineke), where others need a good economy.

The best solution then is probably to purchase shares in a mutual fund. Find one that has the lowest fees for the type of diversification that you want. You should find a fund that has very diversified holdings, and one that has steady performance over years. Read the prospectus to get an idea of the funds goals and risks. Strong performances over a short term can often indicate larger levels of risk than what you might want.

Consider all investment advice carefully, and discuss all options with a qualified broker. I am not a broker, and I do not intend this to be taken as qualified investment advice.