Stock Trading

[Apexeater]

Stocks can be fun if you know what you are doing. Everyone has their set of important criteria to look for i.e. P/E ratios, dividends... I have one ETF and it has done very well for me.

I think the best advise I have ever heard was to pick a company that has a good product and is run responsibly and the stock will do well in the long term. Here are some companies that have done well for me in the past: IBM, Visa, Wells Fargo, Colgate-Palmolive, and Procter and Gamble. The ETF I have is Spyder mid-cap (MDY).

Here is the necessary disclaimer; do at your own risk and never buy more than you are willing to lose. The above stocks did well for me, that doesn't mean they will for you, it is all about timing and a solid company.

 

[reelknead1]

I have no issue with ETFs and I think they are great instruments to make money. Many novice investors under use them to diversify there investments.

For people that don't know what an ETF is there is some great reading online and I'm sure some people will join in to help everyone out. I will do my best to explain.

Lets start with "Equity Fund" a stock fund or equity fund is a fund that invests in equities more commonly known as stocks. Stock funds are contrasted with bond funds.

Just by reading the definition of what an equity fund is you can see that you are buying into a basket of stocks/bonds. This will help you diversify your investment aka not putting your money into a single basket. This will help mitigate risk and hopefully keep your money stable and growing at a somewhat constant rate. When ever I talk to some one about ETFs it's usually after they hear a commercial regarding them. They always think that they are just like mutual funds and although they are somewhat alike, they are also very different. The table below shows some of the major differences between the two.


ETFs Mutual Funds
Priced, bought, and sold throughout the day? Yes No
Offer some investment diversification? Yes Yes
Is there a minimum investment? No Yes
Purchased through a broker or online brokerage? Yes Yes
Do you pay a fee or commission to make a trade? Often Sometimes
Can you buy/sell options? Yes No
Indexed (passively managed)? Typically Atypically
Can you make money or lose money? Yes Yes

With either ETFs or Mutual Funds you are always concerned with fees. The nice thing about ETFs is that you don't have to worry about "Load" which can be thought of as a commission that you will pay at the purchase date or the sell date depending what type of load is placed on the fund. Although you don't have to worry about load, you do want to keep an eye out for the expense ratio which is an annual management fee which is factored by a percentage of your investment.

I personally don't have any ETFs due to Independence issues with my Job but I have been trying to find an acceptable one to invest in for the future.

I have also added a disclaimer to the original post just incase.

 

[Do Work Son]

[Insider information]
Apple will release a new iPhone. Buy now.

 

[GTIwannagofast]

[Insider information]
Apple will release a new iPhone. Buy now.

:laugh:

and the next ipad mini will have retina display... release in 4-5 months.

:thumbsup:

 

[confuc1ous]

I've been using E-Trade for a while now, its been good to me, I get regular reports of paid outs and re-investments etc... so when I dont have to the time to be on top of it its kinda doing it for me. I like the fact I can set up alerts etc... My portfolio has a good variety, got in on the ground floor with some, made some good moves. Its all for the long term I suppose.