I'm 17, looking to invest.

Discussion in 'New Member Introductions' started by Alex Griffith, Nov 14, 2018.

  1. Alex Griffith

    Alex Griffith New Member

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    I've been studying a lot. I dont want or have the time to be a day trader, I want to get some stocks and hold on to them, then cash out for a profit after a few years. Once I get some time later in life, maybe I'll start day trading.

    I have a lot of questions:

    1. Is Fidelity a good broker? That's the one I was going to use.

    2. What's the best way to learn how the market works? I've been watching a ton of videos, but I know theres much more to learn. I'm going to take some finance classes when I go to college, hopefully that clears some of it up.

    3. I know it's best to choose one or two markets to familiarize yourself with, such as the power market, or the tech market, but how do you familiarize yourself with a market? I know find one you're interested in, but what do you look for?

    4. Warren Buffett emphasizes the importance of knowing the company itself, how do you find out about the company? The personnel, how they stack up against the competition?

    5. What value investors should I pay attention to?

    Thank you all, and hopefully I'll learn some good stuff here!

    Right now I'm looking at General Electric, I've been watching them for a while. It looks like a great opportunity, but I dont know enough to say.
     
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  2. Gray Wolf

    Gray Wolf Well-Known Member

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    First, I'd like to say I am impressed with your comments on how you are planning to approach this. I'm going to give you 2 resources to check out and hope it helps you get started. It is consistent with your objectives. Check out this notebook I put together with Investopedia articles. It has some basic to advanced strategies to learn about. https://1drv.ms/u/s!ApcKqV3khCnAgblUEGb48spwYCGGfQ and next check out what I think is an excellent source of good solid investments for longer term 1 year or more holds. Go here: http://www.dripinvesting.org/Tools/Tools.asp and download the Dividend Champions spreadsheet. Great source of good companies. As for GE, I've made a lot of comments on that company recently. I'm not sure that one is ready yet. It is still down trending and I kind of expect it to see it hit $5 or so but who knows for sure. I would leave GE alone until the charts show it moving sideways for awhile. Just my opinion. Good luck.
     
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  3. Onepoint272

    Onepoint272 2019 Stockaholics Contest Winner

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    I absolutely agree with Jerry's take about GE for a long term investment. However, in the short term, for a swing trade, it is getting very interesting. There's been a tremendous supply of stock coming into that market with not really very much downward price progress, especially this week, given the huge volumes. I think its being absorbed by the big guys at these current prices and expect a short-covering rally in the near future.

    Because the big guys take on big positions, they have to buy when there is panic selling. During normal trading activity their large orders would drive the price higher than what they want to pay. The common analogy is the fat lady getting into the bathtub that causes the water to overflow. When the big guys get into a market they cause the price to rise, unless there is a large supply of stock for sale, like lately in GE. When that supply of stock for sale shows signs of diminishing, the shorts will be the first to buy enforce, fast and furious. Then the price will go into a trading range for a long time as the big guys continue to accumulate. They sell a little at the top of the range to protect the range but buy more at the low of the range. They do this net-buying for a long time to accumulate as much of the stock as they can. They do this so they can control the supply, make the supply of stock available to the open market scarce so that the price will easily rise when they are ready to let it go. It could take years. But in the meantime you can trade the range or wait for the longer term play when it is ready.

    But as for the eminent trade, the low bar of the March 9th, 2009 low is between $7.24 and $5.73. That area will probably get tested and retested with shrinking volume, and then the automatic (short-covering) rally should be fast and furious back up to perhaps as high as the $11 don't-hang-around-any-longer area.
    .
     
    #3 Onepoint272, Nov 14, 2018
    Last edited: Nov 15, 2018
    Gray Wolf and Stockaholic like this.
  4. TomB16

    TomB16 Well-Known Member

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    Welcome!

    I suggest reading WXYZ's excellent thread, "The Long Term Investor". If you have the patience to read a few pages, it will give you insight into how a successful investor thinks. His grandfather invested long term with much success and passed along a princely sum to his mother. His mother did the same and now he is doing the same. All successful with long term plans.

    https://www.stockaholics.net/threads/the-long-term-investor.6179/

    By investing in slow but sure, profitable companies you have a nearly certain chance of gaining financial independence. By day-trading, you have a nearly certain chance of not gaining financial independence. Sure, there are exceptions on both sides of that statement but it largely holds true.

    The only way to get rich quick is to tell other people they can get rich quick and then take their money.
     

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