Personal Investing

[The Ozzman]

So, I think V-G and I happen to be two people here interested in personal investing. I plan on opening an online trading account soon, but I haven't decided where yet (either sogotrade or TD Ameritrade).

Anyway, this thread is for general investment questions and discussion as well

in before this thread dies a terrible death

 

[Dak]

So I herd you like handing your money to the man?

From all my reading and evidenced by the recent wall street fiasco, the game looks rigged.

IMO you would be better off putting your money in CoDs or precious metals you physically own (not just certificates). Guarunteed returns.

 

[The Ozzman]

It isn't rigged and anything that says it is is wrong.

I have thought about putting some money into a CD, but those are actually less liquid than stocks given a certain time frame since you have to pay a penalty if you withdraw the money early and I don't have the money to invest in a moderate amount of gold.

 

[Dak]

It isn't rigged and anything that says it is is wrong.

I have thought about putting some money into a CD, but those are actually less liquid than stocks given a certain time frame since you have to pay a penalty if you withdraw the money early and I don't have the money to invest in a moderate amount of gold.

Yeah, the higher yielding CDs are going to lock your money up longterm but if you want to really save, you shouldn't be touching it anyway.

Silver is available to invest in as well if gold is too high (which it is right now for most people).


As far as the stock market being rigged, I don't mean by individual companies per se, but the whole system itself is flawed. I don't have all the stuff memorized that I have read to start quoting stats or history or anything.

Regardless, CDs are guarunteed and precious metals are real substance, as opposed to paper.

 

[The Ozzman]

Could you explain how the system is flawed? I think I know where you're going with this, but we'll see

 

[Dak]

Could you explain how the system is flawed? I think I know where you're going with this, but we'll see

Just read any kind of [negetive] works on the Federal Reserve(the idea of private central banking) and the system it/they oversees.

Not to mention, the current economic meltdown is very much the fault of bad government regulation in some areas (like forced mortgage lending), and repealing good regulation (like the Glass-Steagal act) in others.

The Central Banks control the value and flow of money, and until that power is removed from private banks the system is going to continue to experience these boom/bust sequences to fleece the average population.

 

[(((0)))]

You mean the lack of government regulation?

 

[The Ozzman]

Just read any kind of [negetive] works on the Federal Reserve(the idea of private central banking) and the system it/they oversees.

Not to mention, the current economic meltdown is very much the fault of bad government regulation in some areas (like forced mortgage lending), and repealing good regulation (like the Glass-Steagal act) in others.

The Central Banks control the value and flow of money, and until that power is removed from private banks the system is going to continue to experience these boom/bust sequences to fleece the average population.

Don't forget FASB Disclosure on Fair Value Accounting, which can be found here: http://www.yousendit.com/download/UmNKZGl0RkVmVGJIRGc9PQ

Layman's terms: Before the new provision, if you had a loss on an asset, you had to write down the ENTIRE VALUE of the asset. Now, you only write down the CURRENT LOSS you have on the asset.

That's a huge reason tons of financial firms are in this mess.

I also agree with the Glass-Steagall Act

 

[zabu of nΩd]

As far as the stock market being rigged, I don't mean by individual companies per se, but the whole system itself is flawed. I don't have all the stuff memorized that I have read to start quoting stats or history or anything.

If you think it's not worth investing in stocks just because there's risk or because the system is flawed, then you're a moron, I'm sorry. If you diversify your investments enough, your returns will pretty much follow the growth of the economy as a whole, and you're virtually guaranteed to end up way ahead in the long run.

CDs are good to have as an emergency reserve, so that you know you can get a decent amount of money out of the bank even in shit economic conditions, but it's pretty much a giant waste to have most/all of your money in something that stable.

 

[King Richard]

So, I think V-G and I happen to be two people here interested in personal investing. I plan on opening an online trading account soon, but I haven't decided where yet (either sogotrade or TD Ameritrade).

Anyway, this thread is for general investment questions and discussion as well

in before this thread dies a terrible death

Thanks for including me dickcheese.

 

[The Ozzman]

but it's pretty much a giant waste to have most/all of your money in something that stable.

At least when you're as young as we are. It's not so bad if you, say, need to have five thousand dollars six months from now for a payment of some sort, but want to include the interest on it too since the 5K payment also requires interest, then it would be a good thing to put it in a CD that can get you that rate rather than the stock market which has variable returns.

Thanks for including me dickcheese.

Grant talked to me about this about a week ago. I don't remember the last time you even talked to me about beginning to invest.

 

[zabu of nΩd]

At least when you're as young as we are. It's not so bad if you, say, need to have five thousand dollars six months from now for a payment of some sort, but want to include the interest on it too since the 5K payment also requires interest, then it would be a good thing to put it in a CD that can get you that rate rather than the stock market which has variable returns.

Yeah, if you know you need a certain amount within a year or two, or you're retired and just living off what you've already made, it'd be good to have a stable investment. I assume Dakryn is not doubting stocks because he's in one of those exceptionary cases, though.

 

[King Richard]

@ozz: What made you choose sogo and TD?

 

[The Ozzman]

@ozz: What made you choose sogo and TD?

My boss uses Ameritrade and likes it and a buddy from college recommended sogo because it's only 3 bucks per trade. It seems pretty solid.

Problem with Ameritrade is that I think you need 2K to open an account but I've read you need 500 bucks on other pages on the site, so I don't know what that's about.

Sogo is 500 dollar minimum and it's stated explicitly. Not only that, their trade volume is above that of E-Trade and others probably because of how inexpensive they are compared to e-trade and Fidelity (rip off)

 

[King Richard]

I've been researching the different sites and I like Charles Schwab and E*Trade the most so far.

 

[The Ozzman]

Those two are expensive. The guy with sogo has been trading on it since its inception three years ago, so that says something.

EDIT: Eh, Schwab isn't that bad (only 9 bucks per trade) and it's 1K minimum which is a tad more reasonable than TD

 

[unknown]

I own a few stocks and mutual funds through Sharebuilder.com

I initially invested $900 in five or six stocks, but I recently sold two that weren't doing so well. The remaining ones I have left, however, have been doing pretty well

 

[Dak]

Yeah, if you know you need a certain amount within a year or two, or you're retired and just living off what you've already made, it'd be good to have a stable investment. I assume Dakryn is not doubting stocks because he's in one of those exceptionary cases, though.

It's not the stocks themselves, it's the people who monkey with the rules of the system.

@ Ozz: Do you mean you agree about the repeal being part of the problem or you think it should stay repealed?

I've read into diversifying based on age (so much % between guarunteed/risk investments that changes with age), but until the economic rules are finalized I would stay away from stocks.

There is about to be an overhaul of the system. I would let the dust settle before I started dumping money into high risk investments.

 

[King Richard]

whoa...sogotrade is pretty sweet. Never heard of them, thanks ozz.

 

[The Ozzman]

It's not the stocks themselves, it's the people who monkey with the rules of the system.

You talking about the shorts?

@ Ozz: Do you mean you agree about the repeal being part of the problem or you think it should stay repealed?

The repeal of G-S was part of the problem

I've read into diversifying based on age (so much % between guarunteed/risk investments that changes with age), but until the economic rules are finalized I would stay away from stocks.

What are these main rules? Are you talking about the CEOs not getting bonuses and shit? Please explain

There is about to be an overhaul of the system. I would let the dust settle before I started dumping money into high risk investments.

Overhauls are already taking place. FASB, the Up-Tick rule possibly going into effect. It's a gradual process and you can't do this shit all at once. Knowing Geithner, though, he probably would because he's an idiot.

whoa...sogotrade is pretty sweet. Never heard of them, thanks ozz.

np nigga