Stocks.
- Thread starter ABMonkey
- Start date
I wish I had time to get more educated and involved. I have friends in the industry that are brokers so I just hand my $ over to them to do what they do best. I figure they make their living playing these games so may as well trust them with what I can afford to lose, which isn't a lot, but it's something. So far all positive gains... so far.
I wish I had a thousand to throw away to start up at questrade, as I gladly would....i feel I miss out on making some long term money towards a house downpayment over the next 4-5 years if i start now
There are lots of good resources out there now to learn lots. I like reading but Youtube is pretty good too. Reading wise I'd honestly recommend reading a 'investing for beginners' book first to get a good general idea of the concepts and different investment vehicles that are available to you. If you haven't already read 'Rich Dad Poor Dad' by Robert Kiyosaki that should probably be your starting point ... it's considered one of the most influential books of all time when it comes to finance - and its easy to read.
As for investing in the stock market.. honestly I'd recommend a beginner gets started by investing in a good ETF - this is an exchange traded fund that is essential a mutual fund that is passively managed & traded as a stock..very low management fees (Vanguard ETF's are between 0.04 - 1.0%). You can pretty much capture a piece of any market and also get ETFs that track major indexes.
If you haven't done so already definitely get a TFSA opened up, you can have a trading TFSA which is pretty cool.
If you have any more questions, fire away!
Hey PL.
I think all major banks offer trading accounts... you can set up a trading account as an RRSP/TFSA - I highly recommend the TFSA option as any growth within there is as you know, totally tax free. I bank with RBC so my trading platform is a TFSA with RBC Direct investing - trading cost per trade is $9.95 which is quite high but you can pay this with RBC points. Scotia have Scotia Itrade.
Yea i have a TFSA now that is being traded and managed by my bank Meridian Credit Union. I can probably just up the TFSA amount and go from there as it seems pretty safe. But I probably won't get the same potential rate of return as opposed to direct investing?
yes
It depends. It depends on what mutual you are invested in. Personally I'd always suggest people look elsewhere prior to using the banks investment vehicles - that's generally because they can only offer their products..not the best on the market.
I must admit I don't like mutual funds, there are a few that are pretty good but you then have to pay hefty management fees (usually more than 3%). Also, considering mutuals are actively managed (fund manager) the vast majority actually fail to beat the rates of return of a lot of ETF's.
I would suggest to anyone who wants to start investing whether with TFSA or RRSP to open a trading account and consider investing in a good, low cost ETF that tracks an index such as the S&P500. If you think a certain industry is going to "boom" you can get an ETF for just about any sector now... there is even one of weed stocks which groups several companies together - investing in ETFs is fairly safe as if one company goes under you have others to rely on. It's also incredibly liquid & traded like a stock so you can pull the money out whenever (provided market is open and there is a buyer) though I would steer you away from 'short term investing or day trading'.
The downside of ETFs is that you have to do your own research & if you were to buy a piece of a whole 'sector' you also get the companies that are performing badly too... a good fund manager would (or should) pull out failing companies quickly and replace them quickly with prospering ones in a mutual fund. You have to weigh up whether or not it's worth paying a lot in management fees to have this option but bear in mind, a good mutual fund relies on a good fund manager.
For what it's worth I have both a mutual fund and several ETF's along with some individual stocks. Generally when picking a mutual or an ETF a rate of return I look for is 10% as a baseline .. last year one of my ETF's returned 30% but don't get used to that and it's only really applicable if you were looking to sell.
Stocks are like real estate. When the market crashes, buy buy buy. The mind boggles when the market crashes people panic and decide to sell.
I must admit I don't like mutual funds, there are a few that are pretty good but you then have to pay hefty management fees (usually more than 3%). Also, considering mutuals are actively managed (fund manager) the vast majority actually fail to beat the rates of return of a lot of ETF's.
I would suggest to anyone who wants to start investing whether with TFSA or RRSP to open a trading account and consider investing in a good, low cost ETF that tracks an index such as the S&P500. If you think a certain industry is going to "boom" you can get an ETF for just about any sector now... there is even one of weed stocks which groups several companies together - investing in ETFs is fairly safe as if one company goes under you have others to rely on. It's also incredibly liquid & traded like a stock so you can pull the money out whenever (provided market is open and there is a buyer) though I would steer you away from 'short term investing or day trading'.
The downside of ETFs is that you have to do your own research & if you were to buy a piece of a whole 'sector' you also get the companies that are performing badly too... a good fund manager would (or should) pull out failing companies quickly and replace them quickly with prospering ones in a mutual fund. You have to weigh up whether or not it's worth paying a lot in management fees to have this option but bear in mind, a good mutual fund relies on a good fund manager.
For what it's worth I have both a mutual fund and several ETF's along with some individual stocks. Generally when picking a mutual or an ETF a rate of return I look for is 10% as a baseline .. last year one of my ETF's returned 30% but don't get used to that and it's only really applicable if you were looking to sell.
Stocks are like real estate. When the market crashes, buy buy buy. The mind boggles when the market crashes people panic and decide to sell.
If I was going to back a single company I would go with Aurora.. I like their a local company and the CEO has a great vision. They don't seem that overvalued compared to other companies (canopy etc) - still way over overvalued when looking at beta etc as we're essentially speculating when investing!
I like HMMJ ETF which covers a lot of the companies and I own shares in Cannabix technologies also - you should check them out... they are developing breathalyzer for more accurate THC testing. They're a Canadian company, the only other company doing such a thing is a US based company called Hound Labs.
What I would say with the whole weed investing thing is that it's very much a gamble as we have no idea how it's going to go and if it is going to be as profitable and huge as everyone expects. Tread carefully and IMO only invest what you can afford to lose.
Someone said above use a broker or planner. You need someone who invests themselves and manage# your money like it’s your own.
I’m lucky I’ve got a buddy and I’ve given him free rein. He’s consistently getting me 10-15% returns which is pretty awesome.
Bernie Maddoff Jr. great guy.
I’m lucky I’ve got a buddy and I’ve given him free rein. He’s consistently getting me 10-15% returns which is pretty awesome.
Bernie Maddoff Jr. great guy.
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I am watching BLO very closely...
Be wary of brokers and planners... If going to use one look for an independant, fee based planner. I'd say at least 90% of brokers/planners are affiliated with one company and will push ALL of their products (mutuals, life insurance etc). This is fine if you like their products and offerings (I use 1 planner).
I'm personally of the opinion that it's your money so you should educate yourself and be knowledgable as to where it's going and how it's working.
Smart move & worth a "gamble" I think.
I really like physical books, so a lot of my personal reading is with those.
I recommend reading:
'Rich Dad, Poor Dad' by Robert Kiyosaki. This book sets the foundation for your mentality with regards to finances and general investing (though he prefers real estate). It's super easy to read, no financial "mumbo jumbo talk" and he's a great story teller.
For specifics, 'stock investing for dummies (Canadian version) is great and thorough. It explains everything and you can pick and choose what chapters you need to read. The 'intelligent investor' is the most widely recommended book for investing in the markets however you need to understand the concepts of the market prior to reading - it's long, dry and over 500 pages.
Free stuff on the internet:
- Investopedia (pretty good for learning)
- Motley Fool (stock literature)
- Bloomberg for news
- The balance (I think it's called)
- Morningstar (this is a must for specific stocks and following the markets)
Also download the Yahoo finance App - you can bookmark stocks to follow, watch them and will receive news updates pertaining to the specific stocks you selected. It's free!
There's lots of good videos on youtube also. I like:
- Project Mastery (he's Canadian)
- Jack Chapple
That should be enough to get your feet wet.
I just got rich dad poor dad and wil lstart reading it
i think i'll just plug away a few hundred every paycheck until I get an extra 1000 i can play with, and then @ABMonkey i'll get a trade account TFSA, now the best spot i'm looking at is questrade.com, and they have an option to have someone manage your money..do you believe this to be an option, at least initially?
i think i'll just plug away a few hundred every paycheck until I get an extra 1000 i can play with, and then @ABMonkey i'll get a trade account TFSA, now the best spot i'm looking at is questrade.com, and they have an option to have someone manage your money..do you believe this to be an option, at least initially?
Read Rich Dad Poor Dad then make a decision. He is very much is against the idea of having someone else controlling your money.
If I was you, I'd educate yourself, open a direct investing account and buy/sell stocks yourself. Honestly it's really not that complicated as soon as you understand the terminology and what to look out for.
If picking individual stocks to start definitely pick companies that you actually feel passionate about & like their products. A lot of successful companies rely on their CEO so you have to factor in this.. if investing in Tesla, you have to believe in Elon Musks vision.. likewise with Amazon and Jeff B.
If I was you, I'd educate yourself, open a direct investing account and buy/sell stocks yourself. Honestly it's really not that complicated as soon as you understand the terminology and what to look out for.
If picking individual stocks to start definitely pick companies that you actually feel passionate about & like their products. A lot of successful companies rely on their CEO so you have to factor in this.. if investing in Tesla, you have to believe in Elon Musks vision.. likewise with Amazon and Jeff B.