Current Events > I want to start investing but I'm crap at understanding it

(+) Yeah! (+)

Is there like an investing for dummies book or site I should start with? One of my weakest subjects in school was always economy. I could never wrap my head around it.

Buy low, sell high :D

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Go to the thread about it

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Go to the bank and speak to a financial advisor?

Gamestop stock got you HYPED?

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So there's this game called Yakuza: Like a Dragon...

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Same here, i got all dis money i don't know what to do with just sitting dere lol
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Honestly my advice is to just try it and buy a share of a stock and see how it is to see the numbers go up and down

Buy something you like - remember to always buy the hype and sell it off right before or near the actual news

dont fret over lost money is great advice.. stock market is crazy cause even good news for a company can tank a stock.. so can opinions from big named investors

learn about options and what candlesticks means too.. Robinhood is great to learn on, but theres some OTC (penny) stocks that can only be had on other platforms like TD Ameritrade or Fidelity

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Investing in the stock market is something that people do full time as a well paying profession. The idea that you can simply read a book and be successful at it is laughable.

Get a financial advisor.

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r4X0r posted...

Investing in the stock market is something that people do full time as a well paying profession. The idea that you can simply read a book and be successful at it is laughable.

Get a financial advisor.

I just want to better understand not become some investor shark lol

Don't think short term massive profits.

Start with mutual funds over individual companies. And never invest more than you can risk losing, no matter what the risk you think it might be.

There are plenty of apps to dip your toes in investing like stash, robinhood, or acorn.

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Theres nothing to understand

we are in the age of meme investing and Stonks always go up is Federal Reserve policy.

Put the money into an S&P500 ETF like SPY and watch your savings grow by 10% or more every year without having to think about it.

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SevenTenths posted...

Don't think short term massive profits.

Start with mutual funds over individual companies. And never invest more than you can risk losing, no matter what the risk you think it might be.

There are plenty of apps to dip your toes in investing like stash, robinhood, or acorn.

Pitlord_Special posted...

Theres nothing to understand

we are in the age of meme investing and Stonks always go up is Federal Reserve policy.

Put the money into an S&P500 ETF like SPY and watch your savings grow by 10% or more every year without having to think about it.

These things, I started about 3 months ago, and I do play aggressive, but I do enough research to be comfortable with my picks, and am always at the understanding that the money I invest can be lost... we live in 2021, Google will lead you to a million guides on the basics, not trying to sound sparky but that's what I did.
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$50 worth of Bitcoin and Ethereum per month

Buy time machine
Go back to 1996
Buy amazon for 2.00 a share
Wait for 20 years

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Pitlord_Special posted...

Theres nothing to understand

we are in the age of meme investing and Stonks always go up is Federal Reserve policy.

Put the money into an S&P500 ETF like SPY and watch your savings grow by 10% or more every year without having to think about it.

This is going to sound dumb but how do I even go about setting that up?

Cleo_II posted...

This is going to sound dumb but how do I even go about setting that up?

I'd probably start by setting up an IRA (Individual Retirement Account) which provides tax advantages but limited by how much you can add per year, and you have to be retirement age (or be buying a house for the first time) to start withdrawing funds without a penalty. The penalty is 10% tax on any capital gains (any profits you made from your investment). You don't pay penalty on withdrawing past your principal amount invested.

There are two flavors of IRA, the Roth IRA where the withdrawals aren't considered taxable income, and the traditional IRA where the deposits aren't considered taxable income.

So, the Roth IRA is generally better when your income levels are lower and you expect to be pulling more at retirement (between pension, 401k withdrawals, social security, and the IRA withdrawals). The traditional IRA is better when you're around your peak earnings from your work and closer to retirement age, as you can reduce your taxable income each year when that is already pretty high.

Not all brokerages provide IRAs, so you'll have to check into one that suits your need. I use Vanguard which also has commission(a flat fee you pay whenever you buy or sell shares of stock) free trades on their own ETFs (VOO for example tracks the S&P500 the same as SPY).

You can also currently only invest up to $6,000 per year in an IRA (the law on this changes regularly, so in the future it will be more as inflation happens). The cutoff is tax day (April 15), so you could deposit $6,000 before then, and it counts towards 2020, and another $6,000 after April 15 and that will count towards 2021.

If you want to invest more than $6,000 a year, you would open a regular brokerage account (this is what most of the smartphone apps offer). I use Robinhood for that. You would pay capital gains taxes anytime you sold stock for a profit, and they're taxed at a lower rate if you hold the stock for over a year (short term vs long term capital gains tax). On the other hand, if you sell for a loss, you can deduct up to $3,000 per year on your taxes that helps to cover the loss


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