General Thoughts
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Get started NOW!
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Practice by staring to watch different markets. Mark prices and dates pretending to have purchased.
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Some investment need a minimum amount, but start saving in a piggy bank or a separate savings account.
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Investments that have a low initial investment minimums are cryptocurrencies, CDs and stocks.
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High interest loans/credit cards should be payed off first. It is a sure liability generally higher than any sure asset.
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Find the right account(s) and/or advisor(s)
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Do your homework, investments and advisors are not all the same. Once chosen, test to make sure they are what you expected. Do not settle for ones you do not like.
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Online brokers have the lowest fees for self mangaged and advisor managed.
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Multiple accounts may be needed for different types of investments.
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Put safe guards on account(s)
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Always choose a very strong password. And of course do not share this password with anyone!
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Put limits on investments.
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Diversify
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Overall diversity would be between major categories like bonds, cash, cryptocurrency, precious metals, stocks, etc.
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Also diversify within each category
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Use your head and heart
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Use your head by checking news, charts, statistics, etc.
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Let your heart play a smaller part in your decisions.
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Never let your investments go unmonitored
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Review them often if simply to keep up with their current status.
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It is good to do a yearly rebalancing.
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If you do not want to manage your investments, then go ahead and find a good advisor.
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Always keep taxes in mind
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IRA accounts can be used for day trading. There will be fees, but not taxable events until withdrawing for retirement.
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Any investment is considered a short term investment when held less than a year. This means higher taxes!
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$3000 worth of investment losses can be written off each year.
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Growth vs Income
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Younger investors can be agressive and lean toward growth investments.
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Older investors usually lean toward income for security.
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Different stocks can cover any mix needed.
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Stocks with no dividend are usually growth stocks.
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Stocks with dividend are usually income stocks.
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Some stocks have good growth and have pay a dividend.
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Cryptocurrencies and precious metals are generally considered growth investments.
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Bonds, CDs and mutual funds would be income investments.
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Watch for cycles
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Precious metal are usually inverse to other investments like stocks.
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When quality stocks have a large drop...research and consider buying. Some are quick and some are long drops. So, judgement is definitely needed.
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WMT: All of 2015
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RHT: 2016/12/21
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GE: All of 2017
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COST: June 2017
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DE: August 2017
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Industries have cycles.
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SIX: Always dips though Summer...then earning come in!
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DIS: After a big movie...earning can give the stock a jump.
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SCI: The baby boomer are getting older.
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Industries and raw material suffer more than consumer goods in a poor economy.
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Is a stock a hot trend? You can ride the wave, but be ready to unload when the trend is over.
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TSLA: Has had a good run, but are having issues with facotory equipment and competitors.
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NFLX: Too many competitor and P/E is way too high.
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Opportunity cost(s)
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If an investment is not performing as expected...consider unloading for something different.
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Choice of invest or buying luxury items.
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High interest loans/credit cards should be payed off first. (same as above)
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Participate in ESPP
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Participate in 401K