Advice for Beginner

2,488 Views | 13 Replies | Last: 2 yr ago by Tormentos
Maximus Johnson
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9:37a, 6/29/23
AG
Looking for advice on how to start my trading journey. I am in my mid twenties and am viewing this as an opportunity to get some surplus cash working for me. I have been putting a modest $200 a month into a fidelity account for a few months now. I am looking for long to mid term ETF holds to play around with and really don't know where to start. Any advice appreciated.

Thanks in advance!
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jagvocate
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11:09a, 6/29/23
AG
I can only tell you what I wish someone had told me -- don't be in a rush to trade real money and don't be afraid to be patient and test your ideas on a "paper trading" account. Also, you can work your trading into a life. If you day trade, you need to watch those trades like a hawk which means a lower quality of life. If you trade off of daily or weekly charts, you don't have to watch every moment but the trades take time to develop. You've got to find the timeframe and strategies that fit YOU not someone else, which brings me back to learning via paper trading first. Good luck
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txaggieacct85
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In reply to Maximus Johnson • 11:37a, 6/29/23
AG
Shallowminded14 said:
Looking for advice on how to start my trading journey. I am in my mid twenties and am viewing this as an opportunity to get some surplus cash working for me. I have been putting a modest $200 a month into a fidelity account for a few months now. I am looking for long to mid term ETF holds to play around with and really don't know where to start. Any advice appreciated.

Thanks in advance!
trading or investing?
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JDCAG (NOT Colin)
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11:40a, 6/29/23
AG
As mentioned, start slow, use paper trading (and don't do stupid things you wouldn't do if it was real money)
Don't "trade" at the expense of your normal slow, boring investing (that money is far more likely to provide for you later in life than anything you're likely to make trading, where a VAST majority of individual hobby level traders lose money)
Treat the money you "trade" with the same way you would money you take to Vegas - consider it gone and if you make something off of it, great.

Don't pay money to somebody saying they can teach you trade.
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Maximus Johnson
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In reply to txaggieacct85 • 12:19p, 6/29/23
AG
Investing.

Not interested in day trading. I would like to have cash out to work while still remaining liquid.
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txaggieacct85
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12:34p, 6/29/23
AG
I've been investing in equities (stocks) for a long time.

Unless you want to invest an enormous amount of time, my suggestion would be to buy a few index ETFs.

It depends on your risk profile and at your age, you should be willing to take on a little risk.

Combination of index ETFs

S&P 500 index ETF

VOO

NASDAQ ETF

QQQ

AI ETF

ROBO or BOTZ

Conglomerate

BRK.B

Individual Stocks

HD
COST
MA

maybe something like 20% in each category

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JohnLA762
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In reply to txaggieacct85 • 3:54p, 6/29/23
AG
But of course, don't buy now. Wait for the crash to pass. You don't want to be a moron and start throwing money into the market now, right?!?
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Definitely Not A Cop
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4:00p, 6/29/23
AG
If investing in broad market funds, you can historically expect your money to double every 6-10 years depending on current market forces. So the more 6-10 year periods you are able to have by investing as soon as possible, the more multiples you achieve.
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Petrino1
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4:56p, 6/29/23
Dont over think it, just pick a total stock market or S&P 500 fund, and put as much money as you can in there every month. Fidelity has FSKAX or FXAIX. Do this religiously and you will be a millionaire before you know it.
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Todd 02
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In reply to Petrino1 • 7:16p, 6/29/23
AG
ea1060 said:
Dont over think it, just pick a total stock market or S&P 500 fund, and put as much money as you can in there every month. Fidelity has FSKAX or FXAIX. Do this religiously and you will be a millionaire before you know it.
Great advice right here.

The wife and I did the bare minimum contributions into our 401Ks for seven years and only amassed $150k.

Then we got really serious in maxing out 401Ks plus starting IRAs and a traditional brokerage account through Vanguard. The vast majority of our money is in VTSAX.

Our timing was certainly impeccable, but it only took another seven years to join the double comma club.
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Maximus Johnson
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7:29p, 6/29/23
AG
Thanks guys! I have both and individual brokerage account (play money) and a Roth IRA through Fidelity in addition to my 401k.

My 401K option provided by my employer is a Roth 401k, but is extremely prohibitive in terms of fund options. I currently have 8% (of my money) going to it (with a 5% employer match).
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chris1515
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9:32p, 6/29/23
AG
Do you have an HSA for health insurance?

That's another avenue for savings and investing, and has some tax advantages and possible employer matching.
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LMCane
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In reply to Maximus Johnson • 6:21a, 6/30/23
Shallowminded14 said:
Looking for advice on how to start my trading journey. I am in my mid twenties and am viewing this as an opportunity to get some surplus cash working for me. I have been putting a modest $200 a month into a fidelity account for a few months now. I am looking for long to mid term ETF holds to play around with and really don't know where to start. Any advice appreciated.

Thanks in advance!
since you are a newbie just starting with a few grand:

DIA
QQQ
ONEQ
SPY

you will thank me in a few years
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Tormentos
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12:27p, 7/3/23
AG
Best advice - time is your friend. DCA into some funds and don't overcomplicate it.
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