10 investing answers every beginner needs

Can't tell your EPS from your IPO? This quick guide to stock market investing will set a few things straight.

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VIDEO ON MSN MONEY

23Comments
Feb 4, 2014 7:53PM
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Ok, not a  bad article.  Probably useful for some people.  But if someone does not know very much about investing and is asking about hedge funds, I would say look out.  That is a newbie looking to try to knock one out of the park.  Hey that should probably be number 11 on the list, don't think or try to knock one out of the park.  Sure and steady wins the race.  Think Dot Com.  I did not own one dot com stock in the crash, I owned a few tech stocks around the edges like Novelus and Applied Materials (they made and make money OFF OF the dot coms), but no dot com stocks.  My portfolio was not blown to pieces and recovered quickly.
Feb 5, 2014 12:10AM
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1. First and foremost, Professional stock traders don't do much better than the amateurs.

2. Stock brokers are liars, if they knew so much about stocks why are they having to work for your

money?

3. Always protect your nut!  Get your principle out of play, leave your profits to grow or fall.

4. Buy what you know.  What will you be spending money on when the economy turns around? Is the manufacturer or retailer hurting now and will they be around for the rebound?

5. Don't be greedy, cover your expenses and grab 15% profit, get out.  Only a fool thinks he knows when the ride is starting to end.

6.  Uncle Sam has his hand out, don't forget that capital gains have to be figured into your ROI.

7.  Buy some gold, investment grade coins are good.  Stash it with about $20K in cash in a safe deposit box.

Feb 5, 2014 11:58AM
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New investors shouldn't even bother with individual stocks.  Buy low cost, broadly invested exchange traded index funds such as the vanguard total stock market index fund.  They're cheaper than mutual funds, and out perform most portfolio managers, especially after their fees.  Also, don't pull out of the market, and don't stop putting money in when it drops because the following upturn is when you really make money.  Ignore the media!
Feb 5, 2014 12:57PM
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This is a somewhat informative article, with good intentions, but way too much emphasis on speculation, something novices (and probably experts) should not even consider.
Feb 5, 2014 11:00AM
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Why even mention IPOs, the average person will never sniff the initial pricing point. Also, Financial morons need to stop quoting percent gains from the pricing and start from the actual Opening price. That's a far better gauge from which to start.

I highly doubt many folks would find this useful as it takes far more than this to become a successful speculator. Especially moving forward.

"According to Standard & Poor's data, total annualized return of stocks from 1926 through 2013 was 9.9 percent.  This is particularly true for long-term investors who can minimize their exposure to market volatility and avoid buying based on emotion and reacting to market downturns in a panic."

Well I have a huge problem with that assumption moving forward as we are currently in a massive Generational Shift. If you just look at the projections moving forward concerning just serving the DEBT, no way in Hades will returns be nearly as much. Maybe even far less than half that. Locking in profits, is hardly being emotional.

When one considers the issues of health-care costs, just check the actual Bills via Medicare and you know what I mean. This issue of keeping long term portfolios will soon become a myth. With the rising issues of FEES to maintain a account and the lack of a living Wage, this issue of keeping long term portfolios will soon become a myth.

Bottom line, folks that actually have the staying power to speculate don't even need stocks. The vast Majority of everyone else will be too Wage poor to even speculate. I like to know what tricks speculators think the Global FEDS can pull out the Hat this time. History has also shown that BEAR markets AND economies can tank for far longer extend periods. People then have to sell to survive. Even at far lower prices. The SuperRich don't have that problem, as they have been selling us out along with their insider stocks holdings for Decades.


Feb 5, 2014 4:54PM
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It would really take more than a couple sentences to fully advise a new investor but I will highlight some most important thoughts.
!) do not believe everything you hear from stock people or even these articles.
2) do your own research,read books about people like Warren Buffett and his philosophy about stock ownership.
3)personally I recommend investments that pay dividends monthly (some mutual funds) or stocks that pay 4 times per year.
4) not high risk,but solid companies that you understand.
Feb 5, 2014 10:36AM
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Warning to individual investors...  The financial industry has always trotted out the 10% historical rate of return.   This is nothing more than a sales tactic.   Research has shown that on average individual investors earn between 4% and 5% from their equity investments over time.   Don't hold your breath waiting for the financial press to disclose that.
Feb 5, 2014 11:37AM
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You are running out of time. If you don't know how to create an enterprise, you'll be buying them at the top of the cost curve and probably won't fare well if you have to. Get your cashes out of the failing markets... there isn't anything left for bailing losers with. 
Feb 5, 2014 11:24AM
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Looks like MSN is trying to hook in some new "investers" for the stock market's stacked deck, pyrimid scheme. Get 'em while their young, just like cigarette companies do with smokers. Then they're hooked for life. You would be better off following the Woody-Farrow feud, or beeber's spoiled drunken fits. All you big investors wouldn't have made one red cent in the last 25 years if not for the government's many interventions.
Feb 5, 2014 12:45PM
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I know this is off topic, but it seems like MSN is having some issues. I click on some of their story links, and all I get is a blank page. Anyone else having problems?
Feb 8, 2014 4:05PM
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Just a note. By examining financial reports to determine the strength of a company and weeding out issues which are of companies appearing weak and possibly headed into bankruptcy within 6 mos or whatever, it is said by some that an additional 7.5 % return may be earned from a given portfolio of stocks. There are good books out there with simple scoring systems as well as some information on web sites which can help the public be more productive and make better profits.
Feb 8, 2014 4:01PM
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Introductory information on all online sites should advertise differently than $xx.00 per "trade."

A sell is a sell. A buy is a buy. In either case there has not a trade taken place. Now, if one could trade one sold stock's value for a certain number of shares of another stock at its purchase price, that would be a trade. We do have computers you know. What's up with this?


When I first signed up, I knew less than I know now, but it was a misleading bit of information in my case. Further, the original purchase price should be listed along with "change" amounts and so forth for your daily watching monitoring screen. And a "sell all issues" or sell all checked issues button on the monitoring screen would be extremely helpful, and with perhaps a blanket bulk-"trade" rate for say, more than 5 stocks.

Feb 5, 2014 12:16PM
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"If a company becomes insolvent, preferred stockholders are entitled to whatever assets are left to distribute after the other debt holders are paid; common stockholders are essentially last in line for repayment if a company goes bankrupt, and may not recoup any value from their lost shares."

Not when a union shill holds the office of president, and certainly NOT when discarding standard law for obama's union law for stockholders of failed union destroyed corporations to avoid facing the failure that unions have brought to the car manufacturing industry!
Feb 5, 2014 11:31AM
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Most important investing advice: if you invest in a peice of paper, you may end up paying a lot of money for a piece of paper! Buy something tangible and concrete like real estate.

 

Feb 4, 2014 10:48PM
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Wouldn't it be better to invest in German based Preferred Accumulative stock that is on German Exchanges and take possession of the certificates?
Feb 5, 2014 11:11AM
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We told you at the closing yesterday we would be lower today, not a big surprise, the sad thing is that we are making it easy for these scumbags...Job numbers are bad, jobless recovery, this markets are looking more and more like the economy, awful.....At 0955 hrs they called to accelerate the selling so down the toilet we go again, manipulators having the time of their lives....Oh well, lets see if this afternoon something can be done...Sad.
Feb 5, 2014 11:16AM
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Do not be fooled by sucker's rallies, we just had one and will have them through put the day; manipulators once again in charge on and off the floor....Stay on the sidelines for now....Be Very cautious...More later.
Feb 5, 2014 7:32AM
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unless you are listening to this website, or the professionals, you should probably be getting closer to 20-70% return on earnings every year.  even my non manage fund that I just throw money at has earned on average 19% in the last 10 years... its not hard, buy low, sell high, average down, and re-allocate at least once or twice a year... simple.
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