Buying Stock for Dummies - Someone help us ignorant

Uno · Oct 12, 2008

So I started a thread in the "Financial Investment" forum but that section gets little action so hopefully we can keep this up here for a little while MODS.

Alright, I know nothing about stock. Buying, selling, shorting, whatever. I don't know where to sign up online, what fee's I should expect, obvious signs of a company I should not purchase.

I know that some here do dabble and I also know that there are many on here who see the downed market as an opportunity.

So I figure why not have a "Buying Stock for Dummies" thread where we can throw out stupid questions and maybe someone will come in and answer them.

1. Where should I sign up to trade?
2. I am interested in AIG, Ford, GM, and SIRI... Does anyone know anything about any of them?

Hal01 · Oct 12, 2008

Uno said:
1. Where should I sign up to trade?
2. I am interested in AIG, Ford, GM, and SIRI... Does anyone know anything about any of them?

My suggestion would be to find a Financial Forum and search though old threads.

Secondly, buying the above stocks is not for the novice investor. Prepare to get crushed.

Uno · Oct 12, 2008

interesting Hal... why would I get crushed?

and I am already doing your other suggestion but like I said I know there are others here interested in this info...

Texas-Winners · Oct 12, 2008

2. I am interested in AIG, Ford, GM, and SIRI... Does anyone know anything about any of them?

dont buy any of these...i just picked up 2k shares of Dell before the close friday.

siri might be a long term buy. i still think it is the future of radio and we will all have it someday.

Buster · Oct 12, 2008

Texas-Winners said:
2. I am interested in AIG, Ford, GM, and SIRI... Does anyone know anything about any of them?

dont buy any of these...i just picked up 2k shares of Dell before the close friday.

siri might be a long term buy. i still think it is the future of radio and we will all have it someday.

thought about sirius myself...it is about .40 a share..i am also a believer in the future of satellite radio

Uno · Oct 12, 2008

Texas-Winners said:
2. I am interested in AIG, Ford, GM, and SIRI... Does anyone know anything about any of them?

dont buy any of these...i just picked up 2k shares of Dell before the close friday.

siri might be a long term buy. i still think it is the future of radio and we will all have it someday.

why Dell TX Winners?

TTinCO · Oct 12, 2008

If you're not a regular stock market player, I would say that this is the worse time to start playing around.

Wait until things stabilize & then dabble in it. Much, much safer than right now.

50_Eggs · Oct 12, 2008

1. Where should I sign up to trade?

I have used Scottrade for a long time, and they do a decent job of executing trades and my local branch is helpful with issuing checks or initiating transfers.

For a beginning investor any of the online discount brokers should work (scottrade, etrade, schwab, etc.

1. Where should I sign up to trade?

I have used Scottrade for a long time, and they do a decent job of executing trades and my local branch is helpful with issuing checks or initiating transfers.

For a beginning investor any of the online discount brokers should work (scottrade, etrade, schwab, etc.)

2. I am interested in AIG, Ford, GM, and SIRI... Does anyone know anything about any of them?

Dogs. The whole lot of them. This is coming from an AIG and SIRI shareholder. The problem with each of them is they are overloaded with
debt (in AIG's case government ownership as well). The debt comes in different shapes and forms, but at the end of the day no one is going to be able to refinance or find the additional funding needed for ongoing operations. GM and Ford will either have to merge with another company or face bankruptcy as their pension debt is impossible to mange anymore with a grim new car sales outlook for the next 12-18 months.

The opportunity it to purchase undervalued stocks that will appreciate in the coming YEARS as the market rebuilds. You can basically buy stocks on sale. Look for companies that have positive earnings as well as a good cash flow.

Uno · Oct 12, 2008

great info 50.

anyone know anything about Zecco? i have read a lot on some financial forums that they are good for a first timer.

TT, thanks for the advice. I am not gonna get hot and heavy but I would like to get a grip on it over the next little bit so that when the best time comes I know what I am doing.

guitarjosh · Oct 12, 2008

I'd go with Firstrade. They have low commissions, and no maintenance fees.

moethepuppy · Oct 13, 2008

In regards to Sirius/XM, its a great product but a lousy business model. They have mountains of debt to refinance in 2009 (can't remember the exact amount), growth is shrinking and the profitability is still far in the distance. The governments delay in approving the merger killed any momentum they might have gained. There is a reason this is a $0.40 stock.

The others you mentioned are purely speculative plays. Invest in those with money you don't mind losing. I'd stick with low cost mutual funds for the most part......

buddyboy · Oct 13, 2008

take the money you are allocating towards investing in the market, and instead invest it in yourself by learning how the markets work.

buy a few 100 dollars worth of books on how to valuate public companies, spend some money on basic investing classes. buy some books on technical trading, yada yada.

that will be the best investment you'll ever make.

TheAce · Oct 13, 2008

i use fidelity----buy whsat warren buffett buys---he recently bought ge at 22

HuskerFan1 · Oct 13, 2008

my advice is dont buy shitty companies loaded with debt...(like someone above said all your are LOADED with debt)...i dont know how GM and F are gonna survive quite frankly bc i dont think things are gonna turn around before they burn thru all their cash...

if you wanna be in the markets and are gonna buy n hold look for good companies with solid balance sheets...there's a ton of them and many are paying solid yields....pfizer alone is paying almost 9% and they have 26billion in cash, they arent going anywhere...

CtGuy441 · Oct 13, 2008

The Ace said:
i use fidelity----buy whsat warren buffett buys---he recently bought ge at 22

careful with this. buffett said he was "pouring money into the financial sector" in Jan 08.

unless he got out of them, he got crushed = was mutual, wachovia are gone; citibank, bac america are off 20% from then

I just got into scottrade a few months ago and recommend it.

also use vanguard; you should consider just dumping some money into an index fund if you are thinking long term

ArkhamB · Oct 13, 2008

I would recommend TD Ameritrade. I signed up there a little over a month ago. You get 500 free trades, but its only for a month, so you basically get 1 month of free trades. After that is $10 a trade. And according to the commercials, there are no other fees.

I've been thinking about the GM thing too, but it seems like a real big gamble. Whats going to happen next year if they need another bailout, is the government going to be part owner and then the regular shares will be worth zilch?

I think the stock thing is just another method of gambling. At least if you win with stocks you don't have to worry about getting screwed when you "cash out".

Good Luck
Brian

HuskerFan1 · Oct 13, 2008

common shareholders always get the shaft if the company files chpt11....wouldnt touch gm or f unless you really wanna gamble...

siri needs a closer look, ya they have a lot of debt and a TON of shares outstanding but they have a HUGE customer base...one would need to look at expected new subs over the coming year...cash flows and just exactly is up with their debt and if they have wiggle room or more dilution etc...

Uno · Oct 14, 2008

excellent stuff in this thread so far... thanks to all.

someone mentioned this is like another form of gambling and that is really how i am approaching it. i am taking a very very small part of my bankroll and allocating it to essentially dicking around and getting my feet wet.

someone else mentioned using the money to educate myself, i am working on that as well. but i plan to do both at the same time.

i am not putting money in i am worried about losing nor am i looking to take long positions on anything.

i am also done looking at ford and GM for now...

i have begun the process of getting set up with BIAS (Bank of America) because I have a buddy who swears by them.

as of right now what i am looking at are...

aig
siri
rad
shrpq
cc

all cheapies that i can buy a couple thousand shares of if i feel like it with virtually no risk or very little money invested.

nhoj · Oct 14, 2008

If GM and Ford go them what will Sirus do??? No cars no radio?? Look into Dish Network with the up comming card swap may put all the pirates out of biz and make new subs.