[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 12 KB, 444x507, Ludwig von Mises.jpg [View same] [iqdb] [saucenao] [google]
29217 No.29217[DELETED]  [Reply] [Original]

So I have like spare $25000 and no idea what to do with it.

I know just having it sit in my bank account but I know nothing about investment so I never really did anything about it.

Should I just stick to an investment account in my bank since I know so little about it or is there something relatively simple that I could do to get a bit more out of my money?

Pic unrelated, but Mises is my homeboy.

>> No.29224

>>29217
>I know just having it sit in my bank account

I accidentally a word or two.

>I know just having it sit in my bank account is bad

>> No.29241

>>29235

You could if you were my friend.

I don't know you.

>> No.29235

Can I have some?

>> No.29249

First, pay off any and all debts.

Open up a Vanguard account.

Invest in low-cost, low-risk indexes. Something like this:

http://www.marketwatch.com/lazyportfolio/portfolio/yale-u-portfolio

Make $1800 per year forever, not considering compounding.

>> No.29245

start here

http://www.investopedia.com/university/stocks/

>> No.29257

>>29241

Lets go out for a drink then.

>> No.29261

You have enough to start a stock acct w/margin, day trading, and options. Go learn stock trading and build wealth that way. 25k is more than enough to get started. Assuming you did a standard 4:1 leverage thats 100k of buying power which you could make 0.5%-1% daily without much effort. You could easily cover living expenses.

>> No.29271

>>29245

Thanks man! Looks like a good start for someone as oblivious as me.

>>29249

>First, pay off any and all debts.

I don't have any. Never had any. Never took a credit or anything like that.

>Open up a Vanguard account.
I'll google what that is.

>Invest in low-cost, low-risk indexes. Something like this:
>http://www.marketwatch.com/lazyportfolio/portfolio/yale-u-portfolio
>Make $1800 per year forever, not considering compounding.

Bookmarked, I'll read it right after >>29245.

>> No.29309

>>29261

That's a lot of jargon I don't understand at all but I assume I have a good starting position to make some money.

The question is how much effort do I have to put in into things like stocks. I do have a full time job so day trading is probably out of the question.

>>29257

Mind flying over to eastern post communist europe? I don't feel like moving from here.

>> No.29320

>>29271

Here's another good breakdown of a safe, reliable index investing process.

http://www.mrmoneymustache.com/2011/05/18/how-to-make-money-in-the-stock-market/

>> No.29344

>>29320

Awesome. Thanks!

>> No.29350

>>29309

>The question is how much effort do I have to put in into things like stocks.

If you're day trading, shitloads. It's a ton of work with a ton of risk. Much better to find passive investments that put your money to work (indexes, real estate), rather than working for your money.

>> No.29370

>>29309
you have an excellent base to work with, but since you have a full time job day trading isnt recommended. The best way to do it in your position would be to learn technical analysis and trade off of that. Hold positions for 3-10 days and at night review stock charts to find your trade which you can enter the next day, set a target for you to sell (limit order) and a cut losses point (stop loss order) and walk away.

http://www.investopedia.com/university/technical/ learn about Technical analysis (charting) here and the style im mentioning can be practiced here http://chartgame.com/

>> No.29408

>>29370

Never heard about technical analysis. I'll definitely check it out.

And this investopedia really looks like a great source. Just finding that site was probably worth starting this thread.

>>29350

>Much better to find passive investments that put your money to work (indexes, real estate), rather than working for your money.

That's what I assumed too. I just have to do a lot of research since I NEVER took any interest in this before.

>> No.29435

>>29408
even if youre a passive investor finding the right entry points and exit points using technicals for a year long+ trade can help maximize gains. It can also help you identify when you need to get out even on the best of stocks

>> No.29528

>>29435

Awsome. Now I have some reading to do.

>> No.29547

>>29435
>>29528
Thank you OP and other repliers for taking the time to ask for and post helpful information. I'm in a similar position and will look at all these links.

>> No.29553

>>29217
Invest in a broad market index. The criteria:

Broad (not just one sector)
Passively managed
The fund/etf can be bonds/stocks

I personally recommend an passively managed ETF/FUND of small value companies to take advantage of their persistent overperformance.

Value company means a company has a high book to market ratio (lots of assets relative to market value). The opposite, growth companies, have low Book-to-market ratios, meaning most of the stock price reflects expectations of future growth, but that the company owns few actual assets compared to its price.

>> No.29602

>>29249
Can you make a vanguard account when you're from europe?

>> No.29621

>>29408
Technical analysis is to 95% bullshit. Drawing support and resistance lines or watching Relative Strength Indecies is a complete waste of time and money.

There are a few legit techniques, and even those used in isolation won't give you any value.

As discussed by >>29435, they at most give you a small advantage when choosing entry and exit points for your "fundamental" analysis investing.

TLDR Don't waste your time on technical analysis

>> No.29632
File: 8 KB, 460x276, milton.freidman460.jpg [View same] [iqdb] [saucenao] [google]
29632

>>29217
>Mises

>> No.29660

>>29602

Looks like it.

https://global.vanguard.com/portal/site/home

>> No.29651

>>29621
Maybe you just havent applied them in the right way, but TA has made me more than any fundamental investing has

>> No.29663

>>29217

Wow, nobody in this thread has any idea what they're talking about. Put that money into cryptocurrencies, especially dogecoin. You don't want to miss out while the rest of us are getting rich.

>> No.29687

>>29217
>he didn't invest in Bitcoin while mt.gox was down

>> No.29690
File: 7 KB, 212x250, 1339930247833s.jpg [View same] [iqdb] [saucenao] [google]
29690

>>29217
>mises

>> No.29700

>>29687

I don't like the idea of "investing" into ones and zeroes that have no actual value.

>> No.29712

>>29651
Anecdotal evidence is completely useless. I hope you understand how statistics work, and how there's no chance of determining whether your strategy was just luck or not.

Market studies have time after time debunked these technical analysis techniques. Some still remain viable and show quite strong statistical significance. For example the "irrational" clustering of prices around even numbers (in theory there shouldn't be any reason why a gold price of 1300 is any more significant that one of 1300.87)

>> No.29719

>>29700
>thinking that "real" money you put into a brokerage isn't anything except bytes in a database and credits in an accounting book
stay pleb

>> No.29745

>>29712
Wow you've done no research at all

Plenty of technical analysis has generated statistically meaningful alpha, its just that after studies are published the alpha gets arbitraged away and new methods have to be found

>> No.29748

>>29719

Of course it is. I work as a sysadmin for a goddamned bank, I should know.

But cryptocurrencies are nothing but speculation and masturbation.

>> No.29763

I have 5000 dollars that I can invest. It's not a lot but I don't think I'm asking for a lot. Just need a way to make around 100-200 a month. Any ideas?

>> No.29769

>>29763
Put it all in gold.

>> No.29797

>>29763

You can generally rely S&P 500 Index to get you about 7% per year, or 350 per year out of 5000.

>> No.29812
File: 169 KB, 825x540, 1366057815463.jpg [View same] [iqdb] [saucenao] [google]
29812

>>29745
You just keep up trading on technical analysis then. It's free money for the rest of us.

>> No.29822

>>29797
Not enough!

>> No.29837

What's will all the faggot bogleheads spamming the same shit in every thread? The Vanguard shilling in this board is out of control.

>> No.29860

>>29837
Vanguard has the largest passive fund and thus the lowest costs. For this reason it's one of the best options.

It's not really shilling, you find the same advice in your basic finance books.

>> No.29882

>>29837

I'm sorry that I genuinely want to help other posters to build sound financial portfolios and not go bankrupt through day trading and crypto-currency speculation.

If you don't like Vanguard (why?), I heard TD Ameritrade is alright.

>> No.29902

>>29860
So why do you keep linking people to open Vanguard accounts instead of just telling them to buy Vanguard ETFs and funds? Is it because the second isn't profitable for Vanguard like the first is?

>> No.29922

>>29902
I can't answer that. I thought you were upset over dropping the Vanguard name.

>> No.29920

>>29822

Anyone who promises you more is selling you snake oil. 25-50% ROI is ludicrous.

You'll need to tough it out to build up your available capital. Don't forget about compound interest (that 5000 will double in 10 years).

>> No.30030

>>29902
Please tell me a method of trading stocks online that is profitable for nobody else. I'm curious.

>> No.32993

Last night:
Anonymous 02/15/14(Sat)00:04 UTC No.20229
Replies: >>20370 >>20377 >>20558

20-year-old stereotypical shut-in NEET with 130,000€ here, is it possible for me to make money without working with no risks? I know nothing of this stuff.

Anonymous 02/15/14(Sat)00:35 UTC No.20558
Replies: >>20590 >>20716

>>20229 (OP)
You could put money into a dividend bearing equity.
I own GGN, it pays me 1% every month for doing nothing and it's gold based so the fundamentals are pretty good, unless we find a way to make gold from lead.
Anonymous 02/15/14(Sat)00:39 UTC No.20590
Replies: >>20698

>>20558
>it pays me 1% every month for doing nothing

You mean like 12% a year? Consistently? Honestly?
Anonymous 02/15/14(Sat)00:48 UTC No.20698
Replies: >>20994

>>20590
yep.
It's not really that special, it's called an "ETN" exchange traded note or CEF (closed end fund).

There's real estate ETN's that pay dividends too and other things.
GGN uses a covered call strategy to make money then re-distribute their profit to share holders. I.E. they sell calls on the holdings they have anyway, and make money.

HOWEVER, be CAREFUL, it is in their clause that shares can be called away if the option is exercised, which drives their holdings down and thus the value of the fund.

Some ETN's pull bullshit, ponzi stuff, where they (legally, mind you) sell shares to support their distributions, which drives the price down like a shell game.

Don't let that discourage you though, I have owned GGN for over 2 years and they've consistently paid me and have consistently outperformed other gold mining ETF's.

YMMV.

>> No.33283

>>29902
This isn't fucking /v/. There isn't an award for being a special flower in investing