I'm trying to learn about investing in the stock market. I want to get people's opinion on a few things

I have always wanted to invest in the stock market but never really got around to it... late happened. I didn't really know where to start or even where to start learning. I could have taken a class at school but that was different from my major nut I found a way to learn now. I wanted to get people's take on what they thought about margins and short selling

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tatysuma · 36-40, F

Now I want to ask who ever knows the answer to this. If we're talking compound interest. I were I was listening to this he was talking about when explainin compound interest. He said that you can get 10% interest on your investment. My question is, is that interests building on a monthly base or a crude over at the end of the year.

For example I cut out Starbucks the average person may go once a day 5 days a week. 20 a week 4 weeks that 80 x 12 that 960 a year.
What I'm wondering is that 10% only off the one time at the end of the year or 10% from each month

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tatysuma · 36-40, F

@UnderTheBridge: I kick my self about letting the 5.7 slide away from me. I actually got the money from that interests and my money back. Like what I put in plus 250 interested over 6 months. I could have milked it at lest anothr 3 years if I locked in the rate. But I was young and inpashent

UnderTheBridge · 51-55, M

@tatysuma: nobody knows that'd going to happen, else we will all be millionaires.

tatysuma · 36-40, F

Yah true but I should have stuck it out a little longer thought

BrewCityBarfly · M

First, is your goal short term trading or long term investing? Next question, is are you looking for long term reinvestment (dividends) or simply buy/sell?

My recommendation is to stay away from margin and short selling until you get used to the concept of trading. Actually, mutual funds are more benficial for long term investing strategy.

Then, you might want to look at options (puts). Chart analysis is important for trading, company analysis important for long term investing. Short selling is generally not for long term investing imo. Will you be doing this online using something like Ameritrade?

tatysuma · 36-40, F

Right now I'm mostly just learning about it doing research and building a cash cushion. As fare as what I have Hurd margins and short selling was really not a good idea but I wanted to get other people's thoughts on it

Pherick · 41-45, M

The thing I have learned through reading and research is that to really make money investing (atleast safely) you need to keep adding money, trust the power of compound interest and diversify.

If you focus on one investment and it fails, you lose. However nothing wrong with taking some money and trying your hand at some new kinds of investment as long as you are OK with the idea you could lose it.

UnderTheBridge · 51-55, M

Margins is a trap. It promised greater returns based on small upfront cash. The problem happens when volatility occurs and you are forced to cover your position and hence take a loss. Even when the market returns to your entry level or in your favor, you would have already suffered a loss.

The same with short selling. You lose both ways. When market is rallying and when market is not going anywhere (which happens most of the time). You lose money due to time value. In addition, short selling is also somewhat like margin as it is based on stock borrowing or based on leveraging like warrants, options or CFD. Generally not a good idea unless you are a seasoned trader.

tatysuma · 36-40, F

So. I found an application that teaches you about investing in marketing. It basically just tells you all the terms and facts about thus type of investment. He tells you his opinion on the difference things but let's you make your own conclusions on everything. Basically from what I gathered these two things are not a grate idea. But I do not like forming my opinion solely based on one person's idea. That's why I asked. I found this app only yesterday night, and yes I'm not completely new to the terminology but a lot of this stuff iv never really had a full grasp on what it all ment when you put it together. But your right from what I've learned so far compound interest over a long turm is the best for the turn out for your money.

Pherick · 41-45, M

Most investing in the stock market is really just a gamble. Make sure you invest with money that would be OK losing in a casino.

SW-User

You might wanna start next year. Trump is hurting them as of right now. So I dont think its the right time.

UnderTheBridge · 51-55, M

Read the "Letter to shareholders" from Berkshire Hathaway, written by Warren Buffet.

SW-User

go to the motleyfool.com

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