Working on a long term dream project stock market.

[Wolfnox]

I know I said money was tight and it is. But, I’m kinda distracting myself with this long term project plan of being involved in stocks and money growth. Finding out information right now as I don’t have money to act on it.

 

[Neonatal RRT]

I know I said money was tight and it is. But, I’m kinda distracting myself with this long term project plan of being involved in stocks and money growth. Finding out information right now as I don’t have money to act on it.

Well, you might have more than you think. I started out with a Robinhood account. Still have it and use it. There are other investing apps that are attractive for people like us that don't have massive amounts of capital and are long-term investors. For the new investor with little money, you have to look at growth stocks in companies that will be disruptive and have the potential to have huge impacts upon the world. Remember, good ideas and niche ideas have very limited potential, and those companies are often bought out before they impact the investor. Look for disruption and converging markets, and cost curves dropping, and huge markets. For example, there was a time when Amazon, Google, Microsoft, NVIDIA, and Apple were startups and the stocks were less than $5. Tesla, the same thing, over the course of it's short time it's up over 1000% from where it started, and right now Tesla energy, robotaxi, and robotics will far exceed their automotive division over the next 5-10 years. Now, those companies still have room to grow, but most people are priced out. However, there are biotech companies that deal with CRISPR and stem cell research that have the potential, as well as, air taxis (Archer Aviation and Joby Aviation, for example) that can be purchased for less than $5/share and within the next few years, should 10X or more, as they come on-line with their service in 2025-2026. Plan on having autonomous air taxis that will eventually undercut the ground taxi service. Disruption. The infrastructure is rapidly being built as we speak.

The idea here is that whatever you choose to invest in, you need to believe in the mission and follow the company closely, like every day. You're not going to get rich tomorrow with growth stock. That's going to sit on the back burner for 10-20 years while you purchase small quantities of stock on a regular basis over long periods of time. Do not listen to analysts on the news networks. Depending upon who is paying them, they can be highly biased for or against specific companies. It's very obvious who CNBC, Yahoo, and Fox are putting their money behind. Very few people are "the voice of reason" and can call out their bias. These people are on there to sensationalize and create the FUD that can affect the stock price on a day-to-day basis. These idiots are for the day traders that affect all the volatility in the market up/down/up/down while they buy and sell thousands or millions of shares a trade, taking advantage of 2-3% changes. These clowns are not investors, they are manipulators and "get rich today" types of people. So, don't let the volatility rattle you. If the company has a strong mission, is disruptive, and has strong leadership, it will continue to grow despite all the ups and downs, despite all the fear, uncertainty, and doubt (FUD) in the media.

One thing that I have learned over the many years, and have taught my own children this: Pay yourself first. Invest. Do not let your money sit fallow in a savings account. A certain percentage, right off the top, you never see it, it just gets tucked away into investments. You live off of the rest. Some people have a 401K, 403B, Roth IRA, and others just need to do this on their own.

Nearly half the people in the US do not have any retirement savings, at all. Another huge percentage do not have sufficient retirement investments to last but a few years. Now, put that into the perspective that Social Security will be quite diminished or non-existent within the next 20-30 years. Medicare and Medicaid will also be diminished. It's going to get ugly unless something changes course dramatically. If anyone is waiting for the government to take care of them, I think they are going to be horribly disappointed. If that scares some people, it should, so do something about it now, not later.

 

[Wolfnox]

Well, you might have more than you think. I started out with a Robinhood account. Still have it and use it. There are other investing apps that are attractive for people like us that don't have massive amounts of capital and are long-term investors. For the new investor with little money, you have to look at growth stocks in companies that will be disruptive and have the potential to have huge impacts upon the world. Remember, good ideas and niche ideas have very limited potential, and those companies are often bought out before they impact the investor. Look for disruption and converging markets, and cost curves dropping, and huge markets. For example, there was a time when Amazon, Google, Microsoft, NVIDIA, and Apple were startups and the stocks were less than $5. Tesla, the same thing, over the course of it's short time it's up over 1000% from where it started, and right now Tesla energy, robotaxi, and robotics will far exceed their automotive division over the next 5-10 years. Now, those companies still have room to grow, but most people are priced out. However, there are biotech companies that deal with CRISPR and stem cell research that have the potential, as well as, air taxis (Archer Aviation and Joby Aviation, for example) that can be purchased for less than $5/share and within the next few years, should 10X or more, as they come on-line with their service in 2025-2026. Plan on having autonomous air taxis that will eventually undercut the ground taxi service. Disruption. The infrastructure is rapidly being built as we speak.

The idea here is that whatever you choose to invest in, you need to believe in the mission and follow the company closely, like every day. You're not going to get rich tomorrow with growth stock. That's going to sit on the back burner for 10-20 years while you purchase small quantities of stock on a regular basis over long periods of time. Do not listen to analysts on the news networks. Depending upon who is paying them, they can be highly biased for or against specific companies. It's very obvious who CNBC, Yahoo, and Fox are putting their money behind. Very few people are "the voice of reason" and can call out their bias. These people are on there to sensationalize and create the FUD that can affect the stock price on a day-to-day basis. These idiots are for the day traders that affect all the volatility in the market up/down/up/down while they buy and sell thousands or millions of shares a trade, taking advantage of 2-3% changes. These clowns are not investors, they are manipulators and "get rich today" types of people. So, don't let the volatility rattle you. If the company has a strong mission, is disruptive, and has strong leadership, it will continue to grow despite all the ups and downs, despite all the fear, uncertainty, and doubt (FUD) in the media.

One thing that I have learned over the many years, and have taught my own children this: Pay yourself first. Invest. Do not let your money sit fallow in a savings account. A certain percentage, right off the top, you never see it, it just gets tucked away into investments. You live off of the rest. Some people have a 401K, 403B, Roth IRA, and others just need to do this on their own.

Nearly half the people in the US do not have any retirement savings, at all. Another huge percentage do not have sufficient retirement investments to last but a few years. Now, put that into the perspective that Social Security will be quite diminished or non-existent within the next 20-30 years. Medicare and Medicaid will also be diminished. It's going to get ugly unless something changes course dramatically. If anyone is waiting for the government to take care of them, I think they are going to be horribly disappointed. If that scares some people, it should, so do something about it now, not later.

I’ll study on your words.
Any bad experiences with Robinhood? And would low to nonexistent cell service be a problem?

 

[jsilver256]

I don’t have money to act on it

Look at the bright side - if you're studying options trading, you got to the end result quickly!

 

[Neonatal RRT]

I’ll study on your words.
Any bad experiences with Robinhood? And would low to nonexistent cell service be a problem?

I've been with them for about 4 years now. Zero issues.

Once you create an account, if you're having issues with your phone service, then I would use a computer, log onto their website and navigate there.

If you are looking at growth stocks and disruptive investing, look no further than ARK Invest ARK Invest | We Believe Innovation Is Key to Growth and Cathy Wood. It's what she and her team specialize in. Just find their stock portfolios and begin browsing their holdings. Then, I would find a few that are in your price range and study the companies before investing. When you are ready to "pull the trigger" then simply find them on Robinhood, or whatever platform your choose. You can buy in at a certain dollar amount, even as little as pennies, or you can purchase a specific number of stocks. Personally, I tend to purchase stocks with a sum of money, $20, $100, or whatever I can afford at the time. 24/7. Easy as point and click. It's not, at all, difficult. The hardest part is the research on your end regarding the companies.

 

[UFO]

For example, there was a time when Amazon, Google, Microsoft, NVIDIA, and Apple were startups and the stocks were less than $5.

All those companies had a plenty of competitors that didn't make it. It is hard to say, looking into the future, which is winner and which is not. Hindsight is easier.

My personal favorite example is 2000's tech bubble and search engine business: There were AltaVista, Yahoo, AOL Search, Lycos, Infoseek, and so on. If one made a bet on search engine technology two or three years before the burst, when company market caps were still reasonable, it would still have been a lost bet, because real survivors were Google, which wasn't even listed back then, and Microsoft's Bing, which was named as MSN Search and it used third party engines like AltaVista.

 

[gj13]

Take a look into ETFs (Exchange Traded Funds), they are a great way to passively invest as well. There are a lot of different ETFs, but generally buying index funds, such as one which tracks the whole market, is a good way to start and keep your money growing while you research and investigate more. Index ETFs have lower MERs (Mangement Expense Ratios) and you really only need one. An example would be something like AOA.
Good Luck!

 

[Jonn]

Look at the bright side - if you're studying options trading, you got to the end result quickly!

Are you talking from experience?

 

[Levitat0r]

Look at the bright side - if you're studying options trading, you got to the end result quickly!

Clever, and maybe true. There's a lot of stuff that's glorified gambling, or it becomes that without the proper knowledge.

 

[jsilver256]

Are you talking from experience?

I once made Apple calls somewhere circa 2014. This was when they were in the middle of their bull run to the megacorp they are today. Everyone was telling me, "this is easy money, you'll get a few hundred bucks back."

Then that particular quarter was the only time in like 10 years that they had a bad earnings report and I was out $1200.

I've since learned a bit more about that world and it is all based on insider information.

 

[Neonatal RRT]

As someone suggested, an ETF is a bit of a safer, and I dare say, "lazier" route as these are professionally-managed funds versus you putting all your eggs into the basket of a few companies. If you do have money in a few companies, you have to follow closely, like I suggested, every day. Amongst other things I look for in a growth stock, is the operating cash, often from other investors. Many up and coming companies are actively investing in their own growth, and may not be turning a profit just yet, but if there are big investors feeding the company, it provides a buffer until then. No one knows the future of any company, even established ones, so if you have your money tied up in it, you'd better follow closely.

 

[jsilver256]

As someone suggested, an ETF is a bit of a safer, and I dare say, "lazier" route as these are professionally-managed funds versus you putting all your eggs into the basket of a few companies. If you do have money in a few companies, you have to follow closely, like I suggested, every day. Amongst other things I look for in a growth stock, is the operating cash, often from other investors. Many up and coming companies are actively investing in their own growth, and may not be turning a profit just yet, but if there are big investors feeding the company, it provides a buffer until then. No one knows the future of any company, even established ones, so if you have your money tied up in it, you'd better follow closely.

Ah, that brings up another point. Stock picking is a bit of a misnomer. The surest way to get higher averages than an index fund is not to pick the best stocks, but to find the worst stocks and then dump them. The idea is that it's much easier to find bad companies than to find good companies. Shedding these from the bucket will bring up the return rate higher.

But, of course, managing your own index fund (of sorts) is a very intensive process.

For the majority of investors, it's boring. Just put money into an index fund month after month and forget the index fund exists.

 

[gj13]

Also something to keep in mind is, even a random selection of stocks picked by hamsters can perform just as good as some of the best stock managers LOL. Scientists have done similar studies and the average ROI is usually around 8 to 9% when randomly selected. I'm sure you could find those studies

 

[Jonn]

Then that particular quarter was the only time in like 10 years that they had a bad earnings report and I was out $1200.

I've since learned a bit more about that world and it is all based on insider information.

$1,200 worth of experience.

Yes, there is always corruption somewhere when money is involved.
I have a major problem with hedging and manipulating the share prices.

BTW, I have never been involved with options.
I am a "vanilla" share investor.

 

[Jonn]

Also something to keep in mind is, even a random selection of stocks picked by hamsters can perform just as good as some of the best stock managers LOL. Scientists have done similar studies and the average ROI is usually around 8 to 9% when randomly selected. I'm sure you could find those studies

I only buy shares in the top 200 companies.
I won't get a motza overnight, but it is highly unlikely the businesses will go bust and take all my money with them.