Stocks 101

[MPrime]

Hey there ladies and gents.
Was rambling the site and seems that I didn't find one thread that would cover it all about stocks and good funds and sites that would be a goody to check out. So, if nobody minds, I want this thread to be dedicated to exactly that, but without all the bumph and useless rubbish.
I'm currently in the search of a good site that would expand my knowledge on the subject of stocks. Have seen most of whatever is out there, but for some reason believe there are still some hidden jewels I might not know of yet.
So, off we go on this journey of investing. It would be quite nice to hear any stories or experiences you might have had with the stock market, I'll throw in a couple as we go along.

[Bunty]

The time to start worrying about getting into stocks or stock mutual funds is when the stock market is in the news for being low, not high like it is now. But human nature being as it is waits when stocks are high, not low.

[gmwise]

dont put all your eggs in there..is all i can say

[Bunty]

Beware of sites offering bad stock buying advice, such as this from last March: Why It Is Not A Good Idea To Buy Ford Stock Right Now | Free Articles directory

As it turned out, seldom was there a better time to buy stock in Ford than last March. After all, it had gone down so low, you'd think maybe the automobile was going the way of the horse and buggy, but oh, no. Now Ford is well over $7 when it was around $2 or even under.

I think the shrewdest stock investers don't buy on the basis of what experts are saying on web sites or CNBC. Instead, they pay attention to new businees developments, such as new chain stores going up in their neighborhood, check them out inside to see if they're cool, make sure they've been making money in their growth plan and buy stock in them. A for instance from the fairly recent past would be Big Lots. They're kinda like a mini WalMart, so it's quick and easy to shop in and get out.

[ApplePearBerry]

Have you tried any of these places?

Research stocks, quotes, charts, news, stock ratings, company report, stock screener - MSN Money
Stock Ratings, Research, Real-Time, Historical, Quotes, Price, Analysis, Market News, Tips, Top Stocks | Morningstar
Stock Definition
Yahoo! Finance - Business Finance, Stock Market, Quotes, News

Here is a pretty awesome, hands-on site that a lot of schools use to teach students about stocks...I believe anyone can play for free.
Stock Market Simulation Software | Online Stock Simulator | Day Trading Online : Stock-Trak

[mugofbeer]

ApplePearBerry, I am in the very bidness you are asking about but I am moving out of OKC - otherwise, I'd ask to chat with you. (smile).

Here's my advice - if you are a novice investor, don't try to do this by yourself. You need to get help because there are too many people out there waiting to take advantage of you. Get a good "investing for dummy's" kind of book from the store to learn all you can and don't try to do anything right now until you have learned. Play trade some stocks for a good 6 months before you start putting your real money into it.

1) Locate a CERTIFIED FINANCIAL PLANNER (CFP) or two for the purpose of consulting with him/her. (I can't stress enough that you find a CERTIFIED FINANCIAL PLANNER versus the corner investment firm or an investment company stockbroker to do this for you. If you haven't done it already, you need to first focus on establishing an overall financial plan. This is a very complicated process but I can't stress how important it is in this day and age and the rewards can be amazing. It involves getting a snapshot of where you are now, setting ground rules and setting goals and objectives for where you want to be in the future and planning for retirement, death and beneficiaries.

Finding a suitable CFP involves interviewing a couple of potential advisors and don't be "easy" on him/her. In the interview, find out who he/she works for or if he/she is independent. Find out his/her credentials, find out what he/she will do for you, find out what conflicts of interest he/she has and get a feel for whether or not this person seems to be selling insurance or is there to put together an overall financial plan (look for the latter). You are a partner in the entire process, don't let the financial advisor exclude you from anything. Get a feel for if the CFP is selling or appears to have this long-term, all-encompasing plan in mind (you want the latter).

The CFP isn't necessarily going to help you with your investments but is going to get this plan down for you so you can help yourself figure out what is a "suitable" investment for your situation, create a plan, lay it out for you, let you make the decisions, educate, assist, advise, help implement and maintain the plan. However, realize that depending on your needs, the CFP's work may end after any of these points and you take over or you can let the CFP work on an ongoing basis. Be sure you "like" the person but never give him/her your full trust and control.

Once you have chosen a CFP, realize that he/she will charge a fee for services - and it may be a few hundred dollars for consultation or it can be an ongoing fee - depending on how you do business. However, if the CFP is doing his/her job properly, he/she will ask for a great deal of information - any sort of financial information, any sort of insurance information, any sort of contracts you are engaged in, any sort of legal issues, estate issues, charitable issues, potential liabilities, family matters - it may seem intrusive and personal but it is vital to a thorough, effective financial plan.

There is much more but this should be a start. Here are some "don'ts."

Don't try to do this yourself

Don't take investment advice from people on chat boards (sorry guys, no offense). Find someone in the business you can talk to directly.

Don't use someone's brother-in-law without doing a thorough interview with this person to see if he/she seems competent.

Don't buy ANYTHING investment-wise from internet emails, phone calls, door-to-door solicitations, mail solicitations, etc. EVER, EVER, EVER!!!!!

Don't settle for less than a CFP unless the person has a wealth of experience. The CFP certification puts a great deal of limitations and control over the financial advisor.

Don't assume the CFP designation will mean the person is there to do an overall, objective financial plan. If the CFP works for an investment company, the CFP will likely push that company's products even though the CFP code of ethics is supposed to deny this. Try to find an independent CFP.

Don't be afraid to talk about insurance products. Insurance today is an absolute necessity and must be bought to properly set you up for retirement, protect your family, protect your estate and minimize taxes. Make the CFP show you how it will benefit you, however.

Understand that a CFP is sort of like the quarterback of a football team. The overall financial services industry is far too complicated for someone to be an "expert" in everything. The CFP may make several recommendations to you for outside help such as with insurance specialists, attorney's and investment advisors.

If the CFP is willing to be an investment advisor for you when the time comes, interview him/her on their expertise and experience. Don't invest in things you don't understand!!

Remember throughout the entire process, this is your money and your plan, not the CFP's. NEVER rely on him/her 100%. The CFP will give you a great deal of advice but it is only advice - the advice of another CFP may be different. Neither one may be wrong but it may be different.

Hope this helps and good luck!