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[Nilocy]

Yeah, I'm interested in getting into the stock market trading stuff (small time, like throwing a few pennies around and seeing what happens). So is there anyone out there that has had experiance (good/bad/indifferent) to share (pun not intended)?

I'm kinda interested in it since now seems like a good time to buy... or is it?

[x2yzh9]

@ Nilocy:Not a good time to buy, you should be waiting a few years and the economy will slowly climb back up.

[Idiom]

Not a good time to buy, you should be waiting a few years and the economy will slowly climb back up.

Other way around. Buy low (NOW!) sell high. You just need to be able to see the future.

I know a guy that made nearly 10,000$ off the stock market in it's current condition with no prior experience, just reading the news and using common sense.

[deadlycairn]

My stepfather managed to lose a lot of money on the sharemarket. I wouldn't recommend it. Unless you know what you're doing, it's essentially gambling, and it takes a long time to know what you're doing.

[Idiom]

If you lack the precognition that successful stock market players have, you can lend your money to people who play the stock market to invest your money for you, though they do take a share of it. Specifically that's a "money market" if I recall. Also look into CDs (certificates of deposit) and bonds and such. There's safer ways to invest than the stock market.

[Aqizzar]

Okay, there's always a good time to buy and sell something.  The "stock market" is considerably easier to understand than people give it credit for, as long as you really think about what you're doing.

However, as far as I can tell, the only way to really trade stocks at home is by way of a broker, like all those online guys you see on TV.  To open an account with them, most require you to have at least $500 in an account to prove you're actually going to do enough trading to make their effort and insurance worthwhile, and you have pay them like $10 for each trade.  Or something like that.  I've never set up such a deal myself, just used a ghost money account in classes set up by my university.

[Cthulhu]

A family friend bought 20,000 dollars of Ford Motor stock when it was like a dollar.  Proactive jerk.

[KaelGotDwarves]

Since we're all young, may I recommend the slow and steady way, as well as general financial advice...

CDs are good, as mentioned. If you have capital now is a good time to invest in stocks, especially mutual funds, but that requires a decent initial investment that many of us young people don't have.

Look into roth IRA! It's untaxable once you're set in and no penalties for withdrawls unless you try to pull out gains. Combine this with the next step.

Put aside a dedicated amount for savings out of every paycheck. 10% may seem steep or 'not much to spend' as you spend your entire paycheck, but 'old people' I know who have done this and invested in an IRA since 20 years old have saved over a million $ by retirement at 60.

GET A CREDIT CARD. But don't be an idiot with it. Use it to buy things you need like food and gas and always pay it off every week. This is very easy nowadays with online banking, if you have access to wells fargo or citibank especially. This will build CREDIT over a few years if you pay back on time, and as long as you pay every week you don't accumulate interest like other idiots. Building credit gives you access to better loans for everything, financing on cars, phone plans, apartments, houses, and is crucial if you're a newly independent adult (or hoping to achieve independence soon) in America.

And finally the most important financial advice you'll ever receive...

Before you spend money, consider if you really NEED it or if you merely WANT it. If you don't need it, think about why it's worth the money and your time. Spend accordingly.

[Aqizzar]

It just occurred to me.  Nilocy is in Scotland, so most of this is kind of tertiary for him, but the principles stand.

As long as you're over there anyway, I would recommend the Irish gambling circuit.  It's basically a stock market for every conceivable deal in the world.

[LegoLord]

One thing to do is to take an amount you feel comfortable with and can afford to lose, and put that into two or three small companies that still have room to grow.  You might not make a gigantic profit unless you're really lucky and/or patient, but it's fairly safe, since you would be risking little for what could easily go up by a factor of 1.5 or even 2.  When I took economics we did a stock market project where we all had 10000 "dollars" to spend on three companies worth of stocks.  The guy who lost the least was the one who did the above for one of his companies (everyone else went with well-established corporations, as did the guy who lost the least with his other two choices).  The one choice where he followed the above is why he lost the least.  Would likely have been a profit if he had done 3 new companies.

[KaelGotDwarves]

Oh, I forgot to mentioned bonds. Scotland probably has their own bond system.

And where ever you are, invest in china. They'll own us all in a few years.

[Nilocy]

Heh, yeah I do have bonds (set up by my parents and that ), but isn't it always best to invest in companies and such during global downers, since we're on the way out I want a piece of that gravy train as they say. But I like the idea of setting up an IRA.

The idea of owning a credit card is extremely foreign to me. I've been raised with the quite sound advice not to owe anyone anything; also the credit market in the UK isn't a prolific as it is in the US so not much point to get a credit card.

Also... the Irish gambling circuit?!

[x2yzh9]

Well, I myself have a 1,000 and 2,000 USD CDs. The 2,000 one started to lose money so we had to take the money out and put it in another one to gain substantial money. anyway. could make me alot in the future.

[atomicwinter]

Guys listen here, coming from a family of generations upon generations of full time stock traders here is some advice.

It is not as easy as it seems, you don't just shove money in and expect your stock to go up and make money. It takes years upon years to gain the knowledge to make successful trades. My dad studies charts, and reads book 24/7 on the stockmarket. You have to study study study and gain more knowledge. Knowing how to analyze patterns if key. Dad has a BS in economics, and knowing what the economy is going to do is also key.

Edit: My grandfather shot himself dead over losing money in the stock market, it can be quite stressful. Don't expect to make money, and since it is a form of gambling try not to put in what you don't have.

[Nilocy]

Hmm I'm not going to be investing like my lifes fortunes into the stock market, thats just unbelievably silly I have to admit. I got plans for how to earn proper money, but having fun on the stock market is just what I need right now.