Stock market thread.

[Bra]

www.greaterfool.ca

google Greaterfool Model Portfolios

if you're starting out, I'd suggest sticking with large cap ETFs like VTI (VUN), VXUS, XIU, XAW, CPD, VAB, XRE.

You can't beat the market and you certainly can't beat it by reading a book. Your only play is long. Buy good, strong ETFs, don't buy them all at once and slowly buy more periodically for years and you will be successful. Don't panic and buy on the dips. Your range is long, so don't panic when there is a crash. Buy and hold and you'll double your money every 10yrs. Life is about balance. You don't put 50% of your net worth on black and blame the casino when it hits red.

Warren Buffett and John Bogle are both Billionaires and both stand by ETFs (Disclaimer: Bogle invented the ETF and is the head of Vanguard). Bogle wrote a book "little book of common sense investing".. It's a good read.

[Dobbernomics]

I don't know if this has been mentioned in this thread, but I am looking for a site that will teach me the basics of the stock market; basically, ''Stock Markets for Dummies''.

I've done some quick research online but I was not able to find a site that really starts from the basics and explains how stocks and the stock market work.

Any advice on where I can find such a site?

There are a few I might recommend:

Investopedia has a ton of content under their "university" banner, notably http://www.investopedia.com/university/beginner/
http://www.investopedia.com/university/

Motley Fool
http://www.fool.com/

[Big Ev]

www.greaterfool.ca

google Greaterfool Model Portfolios

if you're starting out, I'd suggest sticking with large cap ETFs like VTI (VUN), VXUS, XIU, XAW, CPD, VAB, XRE.

You can't beat the market and you certainly can't beat it by reading a book. Your only play is long. Buy good, strong ETFs, don't buy them all at once and slowly buy more periodically for years and you will be successful. Don't panic and buy on the dips. Your range is long, so don't panic when there is a crash. Buy and hold and you'll double your money every 10yrs. Life is about balance. You don't put 50% of your net worth on black and blame the casino when it hits red.

Warren Buffett and John Bogle are both Billionaires and both stand by ETFs (Disclaimer: Bogle invented the ETF and is the head of Vanguard). Bogle wrote a book "little book of common sense investing".. It's a good read.

that is good advice but I can't stand Greater Fool personally. He acts like it's never a good idea to purchase a property.

[Mr. Guru]

I don't know if this has been mentioned in this thread, but I am looking for a site that will teach me the basics of the stock market; basically, ''Stock Markets for Dummies''.

I've done some quick research online but I was not able to find a site that really starts from the basics and explains how stocks and the stock market work.

Any advice on where I can find such a site?

Put 5 grand (or whatever you want)in a prop firm and start messing around like that. Start with how to actually buy and sell. Getting used to whatever platform your usukng. I recommend DAS. Getting used to the fees (platform, commissions,ECN fees, etc. Getting used to the emotional rushes. And just observing 6the market in general. You will learn real quick when it's your own money on the line.

[Mr. Guru]

Plus, if you think your going to start with zero experience and make money right away your delusional. You will lose at first. Its just how it goes. Call it market tuition.

[Pengwin7]

I don't know if this has been mentioned in this thread, but I am looking for a site that will teach me the basics of the stock market; basically, ''Stock Markets for Dummies''.

Interesting that you ask this question.
Reason I say that is because it's not a question that should ever need to be asked... IMO.

People who usually ask that question... ask it... because... they want to make money.
Being good with money doesn't start with the stock market.
It shouldn't start with a want to learn about the stock market anyways.

When I was about 14 or 15 I read "The Wealthy Barber" - which I think is a good base for any Canadian teenager or early 20s kid almost ready for the big world.
Once you have some income to invest, it should go to something safe, such as mutual funds (or ETFs, yes... but funds are a fine start).
Slowly, an adult should learn about general investing, avoiding debt, minimizing taxes, employer-contribution plans, etc.
There are so many ways to make money by simply not pissing it away if there are better investment vehicles.

The point is... there never really should be a need for "Stock Market for Dummies".
By the time anybody is really, truly ready for the stock market, they know enough about the stock market to at least be asking for "Stock Market for Intermediates!".

Two years ago I tried to read through Stephen Hawking's "Brief History of Time".
It's meant to be a book that as simply-as-possible conveys a complicated subject to the "average person".
But after reading it, do you think somebody is even remotely qualified for the most simple job in Quantum Physics?
The answer is no.

The stock market is a bit like that.
Because stocks go up & down... it means that you could talk to somebody that has caught the right coin flip.
Consider 1000 "dummies" each flip pennies ten times.
Odds are good that somebody will flip the same HEAD or TAIL 10 times in row.
If that was "investment doubling"... then somebody (say the HEADS guy) could say they mastered the stock-market because they multiplied their money by 1024 fold.

The average Joe-Schmoe guy that talks about how he made $$$ in the stock market...
Think of him as "penny-flipper".
Somebody is going to guess right.
Somebody is going to guess right twice in a row.
Talk to enough people and you'll meet the somebody who actually HAS guessed right ten times in a row.
They still have a 50% shot at guessing wrong on their next shot.

That's the stock market.
Don't be fooled - there should not be people asking to read "Stock Market for Dummies'.
You'd be better off picking up "The Wealthy Barber"... and then after that, read "A Brief History of Time".

(And I mean this as advice for wanting to put somebody on the good path to financial health. I'm really not trying to hammer on you bass, or others, but if you are asking about "Stock Market for Dummies"... then you are entertaining taking the wrong path.)

ps. For good daily reading for the average consumer, try this:
http://www.clarkhoward.com/

pps. I met Clark in 2005/2006 doing a Habitat for Humanity home build.
Super nice, super real guy.
I was actually wearing a Calgary Flames Iginla shirt and he struck up a short conversation with me about Flames/Thrashers history.

[Big Ev]

The Wealthy Barber Returns is a great read for a beginner

[Bass56]

There are a few I might recommend:

Investopedia has a ton of content under their "university" banner, notably http://www.investopedia.com/university/beginner/
http://www.investopedia.com/university/

Motley Fool
http://www.fool.com/

Put 5 grand (or whatever you want)in a prop firm and start messing around like that. Start with how to actually buy and sell. Getting used to whatever platform your usukng. I recommend DAS. Getting used to the fees (platform, commissions,ECN fees, etc. Getting used to the emotional rushes. And just observing 6the market in general. You will learn real quick when it's your own money on the line.

www.greaterfool.ca

google Greaterfool Model Portfolios

if you're starting out, I'd suggest sticking with large cap ETFs like VTI (VUN), VXUS, XIU, XAW, CPD, VAB, XRE.

You can't beat the market and you certainly can't beat it by reading a book. Your only play is long. Buy good, strong ETFs, don't buy them all at once and slowly buy more periodically for years and you will be successful. Don't panic and buy on the dips. Your range is long, so don't panic when there is a crash. Buy and hold and you'll double your money every 10yrs. Life is about balance. You don't put 50% of your net worth on black and blame the casino when it hits red.

Warren Buffett and John Bogle are both Billionaires and both stand by ETFs (Disclaimer: Bogle invented the ETF and is the head of Vanguard). Bogle wrote a book "little book of common sense investing".. It's a good read.

Thanks for the advice guys; most appreciated!

- - - Updated - - -

The Wealthy Barber Returns is a great read for a beginner

Lots of great advice above.

I'd also get familiar with sites that help you find solid dividend payers.
Like here:
http://ca.dividendinvestor.com/

(note for beginners: if it seems too good to be true, it probably is... i.e. don't just chase the highest yields - find respectable ones with a proven track record of reliability and growth...)

[Bass56]

Interesting that you ask this question.
Reason I say that is because it's not a question that should ever need to be asked... IMO.

People who usually ask that question... ask it... because... they want to make money.
Being good with money doesn't start with the stock market.
It shouldn't start with a want to learn about the stock market anyways.

When I was about 14 or 15 I read "The Wealthy Barber" - which I think is a good base for any Canadian teenager or early 20s kid almost ready for the big world.
Once you have some income to invest, it should go to something safe, such as mutual funds (or ETFs, yes... but funds are a fine start).
Slowly, an adult should learn about general investing, avoiding debt, minimizing taxes, employer-contribution plans, etc.
There are so many ways to make money by simply not pissing it away if there are better investment vehicles.

The point is... there never really should be a need for "Stock Market for Dummies".
By the time anybody is really, truly ready for the stock market, they know enough about the stock market to at least be asking for "Stock Market for Intermediates!".

Two years ago I tried to read through Stephen Hawking's "Brief History of Time".
It's meant to be a book that as simply-as-possible conveys a complicated subject to the "average person".
But after reading it, do you think somebody is even remotely qualified for the most simple job in Quantum Physics?
The answer is no.

The stock market is a bit like that.
Because stocks go up & down... it means that you could talk to somebody that has caught the right coin flip.
Consider 1000 "dummies" each flip pennies ten times.
Odds are good that somebody will flip the same HEAD or TAIL 10 times in row.
If that was "investment doubling"... then somebody (say the HEADS guy) could say they mastered the stock-market because they multiplied their money by 1024 fold.

The average Joe-Schmoe guy that talks about how he made $$$ in the stock market...
Think of him as "penny-flipper".
Somebody is going to guess right.
Somebody is going to guess right twice in a row.
Talk to enough people and you'll meet the somebody who actually HAS guessed right ten times in a row.
They still have a 50% shot at guessing wrong on their next shot.

That's the stock market.
Don't be fooled - there should not be people asking to read "Stock Market for Dummies'.
You'd be better off picking up "The Wealthy Barber"... and then after that, read "A Brief History of Time".

(And I mean this as advice for wanting to put somebody on the good path to financial health. I'm really not trying to hammer on you bass, or others, but if you are asking about "Stock Market for Dummies"... then you are entertaining taking the wrong path.)

ps. For good daily reading for the average consumer, try this:
http://www.clarkhoward.com/

pps. I met Clark in 2005/2006 doing a Habitat for Humanity home build.
Super nice, super real guy.
I was actually wearing a Calgary Flames Iginla shirt and he struck up a short conversation with me about Flames/Thrashers history.

Thank you for the friendly advice Pengwin! I am just looking for some sources that will give me a better understanding of the stocks and the markets but from ''dummy's'' perspective. I get your point, and don't get me wrong, I'm not looking for info to make a quick and easy fortune; I simply want to learn the basics from the start and then go from there (i.e. terms and definitions of the lingo that is used).

[chuckcouples]

I don't know if this has been mentioned in this thread, but I am looking for a site that will teach me the basics of the stock market; basically, ''Stock Markets for Dummies''.

I've done some quick research online but I was not able to find a site that really starts from the basics and explains how stocks and the stock market work.

Any advice on where I can find such a site?

There are two ways to go about this.

If you really want to get educated yourself and spend your time managing your money then reading books is a good place to start. Like Pengwin said, The Wealthy Barber is a great place to start because it is a very easy read and does a good job of going over the basics of financial planning.

The other option you have is to find a good financial advisor and let them help you with your long term financial planning. They already have the knowledge to help you and they are the experts in the area. They should be able to talk about budgetting, tax planning, investment strategies, retirement planning and they should have the ability to answer all of your questions for you.

[chuckcouples]

For those looking on advice on where to start, here is a very good one stop link to a bunch of different articles from my 2nd favorite website on the web.

http://lifehacker.com/most-popular-p...015-1746280925

[chuckcouples]

The relevant point is that a properly balanced portfolio COMPRISED OF ETFs... will beat an actively managed portfolio 9 times out of 10 (probably way more than that) over the long run (ie: 10-20 years).

I know I am bringing up a dead subject here but I read this paragraph in an email I received today from a financial institution so I thought I would share it.

"The average active manager cannot beat a cap-weighted market benchmark. This is because benchmarks represent the sum activity of both active and passive managers. Active managers distribute capital to companies that add value to the market, and ultimately impact the direction of the benchmark. Passive managers on the other hand, do not influence the benchmark’s direction at all and instead follow the decisions made by active managers.

Therefore, the average active manager cannot beat the cap-weighted benchmark because it is a representation of the average input of the average active manager. To be a truly exceptional active manager, you have to be able to beat the cap-weighted benchmark."

[blayze]

I know I am bringing up a dead subject here but I read this paragraph in an email I received today from a financial institution so I thought I would share it.

"The average active manager cannot beat a cap-weighted market benchmark. This is because benchmarks represent the sum activity of both active and passive managers. Active managers distribute capital to companies that add value to the market, and ultimately impact the direction of the benchmark. Passive managers on the other hand, do not influence the benchmark’s direction at all and instead follow the decisions made by active managers.

Therefore, the average active manager cannot beat the cap-weighted benchmark because it is a representation of the average input of the average active manager. To be a truly exceptional active manager, you have to be able to beat the cap-weighted benchmark."

I think we're saying the same thing here.

[Mr. Guru]

So nobody holds any stock or etf right now?

Id be curious as to what you currently own right now. And if it's a mutual fund which fund is it?

- - - Updated - - -

So nobody holds any stock or etf right now?

Id be curious as to what you currently own right now. And if it's a mutual fund which fund is it?

[blayze]

Mutual funds are the biggest scam ever. Stick with basic ETFs if you wanna play.