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#1
05-17-2004, 03:51 AM
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Newbie wants to learn the game
I am considering starting to invest in the stock market with part of my poker bankroll. I intend on sticking a good chunk in index funds, but want to learn to wisely buy and sell individual stocks as well with a smaller chunk of my stock market bankroll.
What would be some good starting points to wising me up, recommended sites and literature, etc? Are there play money stock market games to practice with online, that charge the trading fees and accurately represent real world trading conditions? I'm sure there is a bunch of technical terms and concepts that I need to study before throwing money at the market, but need to know where to start my education. 
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#2
05-17-2004, 04:09 AM
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Re: Newbie wants to learn the game
I strongly recommend The Intelligent Investor by Benjamin Graham.
As for an index fund I like the S&P 500 ETF, it has much lower fees than standard mutual funds.
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#4
05-17-2004, 04:04 PM
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Re: Newbie wants to learn the game
[img]/images/graemlins/smile.gif[/img]
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#5
05-17-2004, 06:48 PM
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Re: Newbie wants to learn the game
I was also thinking about investing part of my bankroll in an index mutual fund, but nothing too volatile as I don't have that much risk tolerance. I had a quick question though, seeing as right now I do not have 1,000 to put straight into a fund is there anyway I could put around $500.00 in one and then pay every month until I get to the minimum that has to be invested. Or should I just save up the 1000.00 and drop it in in one lump sum? If this can be done what financial institutions offer this?
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#6
05-17-2004, 09:27 PM
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Re: Newbie wants to learn the game
Many funds will let you forego the initial minimum amount and instead invest as little as $50 every month.
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#8
05-19-2004, 07:27 PM
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Re: Newbie wants to learn the game
JTrue,
What is the estimated time period you plan on keep your money in the proposed investment? If less than 3 years and you really have a low risk tolerance, SPY (or any equity fund) might not be for you. If more than 10 years it most likely is your best bet. Anything else and you probably need to provide more info. If you clarify your definition of not much risk tolerance and holding period, there are several people here who could give you much more customized advice. By clarifying risk tolerance I mean something like I would lose my stomach and think of getting out investing if... 1.)My investment was down after 3 months from buying it... 2.)My investment was down more than 10% at some point after buying it 3.)My investment was down more than 10% 2-3 years after buying it or down 25% one year after buying it. 4.)Never - Those Wall Street guys and CEO's are so smart they're guaranteed to make me money in the long run. (joking)
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#9
05-20-2004, 02:07 AM
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Re: Newbie wants to learn the game
I would never be down 10% from any price my investment had ever been at during my hold. Period.
It is sorta like Annie Duke's 30 big bet rule (actually Howard's rule). If the stock is 10% less than what it once was its time to sell. Something is going on that I don't understand.
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#10
05-20-2004, 02:11 AM
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Re: Newbie wants to learn the game
I'm not sure investing in the market would be right for you then. Don't take this as a critism either, everyone has a different tolerance but even the most diversified and least risky market investments could lose 10% without being sell worthy. Besides using this logic will most likey result in you buying high and selling low. I look at decreased as reasons to buy and I don't think I am alone.
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