I want to buy some stock....

[and-justice-for-all]

Need some suggestions on how I should do so. I have never bought stock in my life either.

[mikelgb]

1. I think it has the same rules as roulette:

Always bet on Black...

:shrug:

[and-justice-for-all]

2. But where can I go to buy the stock?

[brooklynite]

3. If you have Mutual Funds...

...they probably sell stock as well

[and-justice-for-all]

6. I have Edward Jones...

but that do not deal with Stocks.

[brooklynite]

12. From the Edward Jones website

http://www.edwardjones.com/en_US/products/investments/stocks/index.html

[and-justice-for-all]

13. That's odd...

my local office says that he does not deal with stock investments.

[A HERETIC I AM]

32. That may be because he prefers to only sell Mutual Funds or...

he is not licensed to sell stocks.

If the broker in the local Edward Jones office has a Series 7 General Securities license then he is able to buy and sell everything except Commodities and Futures for you.

If he has a Series 7 and says he does not do individual stocks it's because he wants to sell you Mutual Funds, ETF's, Closed End Funds or Annuities.

If he says he doesn't sell stocks because he can't legally, then he has a Series 6, which limits him to Mutual Funds and Annuities.

[NeedleCast]

5. Any of the online trading sites are good

I like Ameritrade in particular.

DO NOT use a broker unless you are investing a very large amount of money. If it's under 5K, use an online brokrage. You'll pay far less per transaction than you would using a broker.

As for what to invest in, it depends on what you want to do. If you're looking to create some slow but safe(r) long term savings, look for a well known company in a stable industry. You might look into a DRIP (dividen reinvestment program) where instead of sending you a dividen check, the company uses your dividen check to automatically buy more stock for you. This would be especially good if your initial investment is small.

If you're looking to make some shorter term money, you'll need to do some research and understand that the market is volitile. Do not invest what you can't afford to lose.

[and-justice-for-all]

8. Ok, sounds realistic...thank you

[Winterblues]

29. Scottrade.com

:shrug:

[MercutioATC]

4. If you know what you want to buy and you have time, E-Trade or Scottrade...any online broker.

If you want it done in the next few days or need advice, go with a full-service broker.

[lurky]

7. Open an account with a brokerage.

Schwab, e-trade, etc. I think that would be the easiest way if you want to buy an individual stock. Somebody with more experience might be able to give you a recommendation.

[and-justice-for-all]

9. I was not sure about the online brokerage...

or if it was better to go talk with some one face to face.

[lurky]

19. You'll definitely pay more if you go to

a professional broker.

Might be worth it for the advice, though, if you're not sure what you need.

[onethatcares]

10. you need to find a ponzi scheme dealer, and

give him all your savings, he'll look at what's happening in the market and charge you a commission to take your money and buy some stock. When that stock goes up or down, he'll take another commission when he talks to you to tell you what to buy or sell next. If he makes a mistake, you'll get a, "sorry, but that's the way the market operates" type of line. If you win for a while, cause it's kinda like craps or blackjack, he'll be your best buddy until you crap out or go bust.

[and-justice-for-all]

11. "Brokerage Products: Not FDIC Insured ,No Bank Guarantee,May Lose Value"

Does that apply to ALL online brokerage and is that important?

[NeedleCast]

14. Yes and Yes

Yes, it applies across the board.

What it means, in non-lawyer speak is that if you lose money, you can't do anything to the brokerage about it.

Think about it like this. All the online brokerage does is buy the stock in your name. They are, for lack of a better term, the middle-man. You're going to put in an order for stock and give them money. They are going to take that money and buy stock for you with that money. They are going to charge you (most likely) a flat rate to make this transaction.

That warning basicaly says that the brokerage is not promising you will make money and that if you in fact lose money, they are not responsible for your loss.

[and-justice-for-all]

16. Ah, ok..nt

[TreasonousBastard]

20. Absolutely true, but it's only important if you invest your...

rent and grocery money. You want to invest only part of your long-term savings in the stock market.

Aside from insured bank accounts, there are no safe investments-- you're accepting higher risk buying stocks in the hope of higher rewards.

Now, as to that buying of stocks-- do you have some particular stock in mind or do you just want to start getting into the market to see how it goes? Most people start off with a mutual fund. You want one that's fairly conservative so it doesn't lose gobs of money, and one that doesn't kill you with commissions and fees.

If you have a particular company in mind and want to hold the stock for a while, many companies have plans where you can buy shares directly from them.

And, there's also the possibility of an investment club-- remember those old ladies who made brazillions in the market and wrote a few books? Get together with some people with extra cash, set up a partnership or corporation and open an account with a discount broker. (There's lots of books and info about doing this, but the first rule of dealing with money is have all the rules in place before the inevitable arguments start.)

[BluRay01]

15. There are quite a few good options, several...

of which have been mentioned here. I've had an account with Scottrade for around 4 years now, which I admittedly don't use as frequently as I should. I think I started it with something like $2000, maybe $3000. There is usually a fairly small amount required to initially fund the account. For me, someone who tends to buy and sell infrequently, Scottrade has worked very well. There may be better options if you plan to trade more frequently, but I don't really know specific info on that.

[izquierdista]

17. From a former stockbroker

Study first. Study, study, and study some more before you open an account at a brokerage. Decide first what level of service you want, all the way from a completely managed account to a discount account where you don't need a human broker at all. Get any and all information you can from different brokerage companies. Learn all the terms of the trade, until you can repeat all the items in the glossary at the back of a book on finance. The stock market has been around since 1792, it will still be there a month from now, a year from now, so don't let your investment money burn a hole in your pocket.

For your first stock picks, stick with some stodgy reliable issues, like AT&T (T), or one of the other DOW 30. Put 5% of your investment capital into this pick and see how it does. Once you are "in the market" you can decide if you are a long-term, medium-term, or short-term trader. That really depends on your level of risk aversion. If you are checking your stock several times during the day, you are not really suited for a long-term trading strategy. If you can't be bothered to look at it and only check where it closed at the end of the week, then you are not going to be a successful short-term trader.

Keep a log of your trades and learn from each one. What went wrong on the losing trades? What went right with the profitable trades? If you are not not going to analyze each trade that you make and learn from it, then maybe you would be better off in a mutual fund or some other type of managed account.

[and-justice-for-all]

18. I already have a Roth and an IRA...

Just want to make a mid to long term investment.

[izquierdista]

23. Where?

Are they with your employer, or have you rolled them over to a self-directed brokerage account? Discount brokers like Schwab, E-Trade and Scottrade can take your IRA and Roths as rollovers, but be sure to follow the rules or you can get hit with a liquidation penalty if you do not comply with all the rules of a rollover.

Once you have a self-directed IRA set up, you can enter buy and sell orders on-line if you wish. For mid to long term, you should research exchange traded funds. They will allow you a little more liquidity than mutual funds, which sometimes have penalties if you liquidate before a certain time has passed.

[and-justice-for-all]

31. Edward Jones. nt

[csziggy]

35. Since you already have an Edward Jones relationship with your retirement accounts

Why not add an investment account. That is, if you like and respect your Edward Jones person? If he cannot deal in stocks, find the name of another nearby Edward Jones broker who does - your associate should be able to help you.

I have found it beneficial as someone is not into keeping day to day track of the market to have a broker I can go in and have a discussion with about my investments. And the Edward Jones broker I use does not charge for those consultations. Both Edward Jones brokers I have used have handled stocks and mutual funds - I left the first since he was a long distance and I wanted one closer to where I live.

There is some benefit also in having a larger amount at one brokerage firm - often for investors with a total amount over a specific amount they will waive some fees. And they will, of course be very cooperative with free advice and research above a "magic number" total in your accounts.

Yes, you will pay more for a broker like an Edward Jones associate than for a cut rate online broker. But if you need the advice, that little bit more is worth it. For instance, my broker got me out of Fannie Mae long before the price of the stock dropped - I got my money out with a bit of a profit due to his early concerns.

[and-justice-for-all]

37. My Edwards Jones office does not do stocks..

I will have to call and ask for a recommendation.

[A HERETIC I AM]

40. The next time you talk to that Edward Jones broker, ask him what licenses he holds.

He is going to tell you he has either a Series 6 or 7 and a Series 63, 65 or 66. He may also tell you he has a Series 24.


For definitions of these, you can look them up on www.investopedia.com

Series 7 means he is fully licensed to sell Stocks, Bonds, Options, Mutual Funds, Annuities, etc. The only investment excluded from the 7 are Futures and Commodities. For that he would need a Series 3.

Series 6 means he can not sell Stocks, Bonds or Options but can sell Mutual Funds, Insurance and Annuities

Series 63, 65 & 66 differ to the extent of where he can do business, (His own state or others also) and what he can legally call himself. (Registered Investment Advisor, a Broker/Securities Agent or both. Series 66 incorporates both 63 & 65)

Series 24 means he can act as a Branch Manager and supervise other license holders.

If he has a 24, but only a 6 and a 63, you need to find a new guy.

If he has a 7 and refuses to sell you individual stocks, you need to find a new guy.


Edited for punctuation and spelling

[csziggy]

41. Your broker should be able to recommend someone

Or go to the Edward Jones site and search for one: http://www.edwardjones.com/en_US/index.html

I'm surprised that they do not tell you more about what each office has as a specialty, but you can locate the ones in your area.

[doc03]

21. Don't put money into stocks you can't afford to lose. Do some

reading at the very least Stocks for Dummies. Myself I think it's better to invest in Mutual Funds or Exchange Traded Funds than to put all you eggs in one basket. Open an account with Vanguard or Fidelity Funds, they both have Mutual Funds and Exchange Traded Funds. Both of them are well managed and have low fees. Stick with their no-load funds. There is no use paying a sales charge on a managed fund when the no-load unmanaged index funds do just as well if not better.

on edit: You can also buy stocks through Vanguard and probably Fidelity if you want.

[and-justice-for-all]

25. I already have some other investments...

I would like to take a stab and a stock or 2.

[NNN0LHI]

22. Raven. Get in touch with Raven

http://www.mgmt.purdue.edu/faculty/rau/funny/DartThrowing.html

Monkey Trumps Wall Street With 200 Percent Gain
Dart-Throwing Monkey Returns to Wall Street With New Picks For Year 2000
Business Wire
01/12/00, 9:41p
(Copyright ' 2000, Business Wire)


LOS ANGELES--(BUSINESS WIRE)--Jan. 12, 2000--Raven, the dart-throwing monkey with her own Web site, showed up many of Wall Street's finest with her 213 percent gain for the year.

"It's all in the wrist action," stated Raven, age six. A Web site and index have been created to monitor her performance. The Web site and the index can both be found at www.monkeydex.com.

MonkeyDex is the Internet's first index of Internet stocks picked by an actual monkey. MonkeyDex was created in January of 1999 when Raven, a six-year-old female monkey, tossed darts at a dartboard of 133 Internet-related stocks. Raven returned to Wall Street this year with a dart toss at a dartboard of 281 Internet-related stocks.

"She quadrupled the performance of the Dow and doubled the performance of the Nasdaq composite," stated Roland Perry, editor of the Internet Stock Review and creator of the MonkeyDex. "Not bad considering she wasn't able to participate in any of the hot new issue offerings," he added.

"And yes, she beat the Internet Stock Review's top 20 picks for 1999, which gained 79 percent last year. We did manage to outperform her with our Original Watch List, which gained 490 percent in 1998 and went on to finish 1999 with a two-year gain of 1,566 percent."

Had Raven been employed at a Wall Street Mutual Fund, her performance would rank her as the 22nd best money manager in the country outperforming over 6,000 Wall Street pros.

[KoKo]

33. lol's.....spot on...

[benddem]

24. until this financial meltdown is over

stick with CD's.

[Dreamer Tatum]

27. In other words, wait until stocks aren't on sale anymore? eom

[Turbineguy]

26. Suggestion:

a book called "Trading for a Living" by Alexander Elder.

[bookman]

28. These days...

... stocks are scary.

Look at the dividend rates. Some have very attractive rates compared to savings.

[bemildred]

30. No, you don't.

You need to wait a bit.

[KoKo]

34. If you are a long term investor and not a "trader" you could check out some on this list:

http://moneycentral.msn.com/articles/invest/jubak/fifty.asp

If you are a trader...you are on your own..

[io-solip]

36. I just (yesterday) cashed out all my stock. Every last share.

I'll be buying real estate with the proceeds. :-)

[BlooInBloo]

38. No you don't.

[pitohui]

39. it strikes me that if you don't know how you shouldn't do this

there is nothing easier than buying stock, you just set up an online account w. a stock trading company and for a minimal fee purchase the stocks you like

if you want a "personal relationship" with a broker to pick your stock you end up paying hundreds of dollars per transaction instead of $4 to $15 per transaction -- and everyone who has done any serious study of the stock market knows that it's a random walk -- in other words, since it's random, advise from a broker is a waste of money -- that's why everyone ran to scwab in the 1980s and everyone ran to the online trading firms in the 90s -- personal brokers do nothing but cost your money, frankly, by calling you up w. tips to try to generate commissions for themselves.


people who use personal brokers have worse results over time than people who pick stock themselves, not because you have more time (you don't) but because you have less time and hence you are less inclined to "churn"

i would also point out that virtually ALL of the historical return in the stock market came if you happened to be invested during the right 90 days in the 1990s, there has been no gain since then which means because of taxes and inflation you have lost money in the stock market in the bush years -- it also means that in most of the history of the stock market, there was no gain, example 1932-1952 -- when people talk about you need to have a long time horizon to invest in stocks, they're not telling the whole story, you can be invested the last 8 years in a solid index fund and have made absolutely NOTHING, you could have been invested in one of the top 10 stocks of 1999 and lost everything in 2001 (enron, anyone?)

this is for your extra gambling money

while i still have a little in the market, i'm slowly removing it as i am a good record keeper and i have made much better returns at the casino (blackjack, poker, casino promotions) -- you cannot get as much money in action at a time, in fact, most casinos won't let me get down a decent sized bet in blackjack anymore, but you can control the money in action and BE SURE only to place the bet when you have an advantage -- the stock market is pure gambling and it isn't under your control

in fact, if you have special knowledge to give you an advantage in the stock market, it's called "insider trading" and you can go to jail (that's what happened to martha stewart, her boyfriend gave her a tip that his stock was about to drop -- now think about that, talk about a fixed game, where you are not allowed to use any advantage, you can't even talk to your own BOYFRIEND?)

i strongly advise that you only invest in the stock market money that you can afford to play with and enjoy it for what it is

you are highly unlikely to end up profitable, as the 90s are over and those famous annual double digit returns have been gone for a very long time

as a side note -- the market is a leading indicator, and it actually collapsed before bush "won" the election, i believe that investors knew or suspected that gore would never be seated as president and that's why, knowing the clinton/gore policies could not continue, the dot-com bust was so harsh

my opinion only there

but in any case, no one is going to hold your hand, if you can't figure out how to open an account w. ameritrade yourself, then you honestly shouldn't be anywhere near the stock market

[B Calm]

42. My advice is to wait until after the election. Try not to get loaded funds.

[mnhtnbb]

43. Buy low. Sell high. Buy what you know. Diversify.