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Old 12-26-2006, 07:09 PM
climber climber is offline
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Join Date: Sep 2004
Location: out on my broke ass
Posts: 1,357
Default Re: Couple newb questions about opening an online brokerage account.

read "random walk down wall street" and peter lynch's "one up on wall street" to get a couple different perspectives on investing/the market. you'd prob prefer to read schwager's "market wizards" which you could but thats more of a trading perspective and then you'd prob just lose all your money trying to emulate people in those books who do stuff you can't even remotely begin to comprehend. if its gamble you want poker is likely way more +EV for you unless you are really really bad.

open a account and get what money you have into some index funds.

keep reading...google "graham stocks" and learn how to use a stock screening tool--the yahoo or msn ones are fine for your purposes. sign up at motley fool and find out what the PEG is and learn how to calculate it. figure out how to read a balance sheet, look up anyalysts' future earnings predictions, find related news stories on a stock and etc. etc.

open an "account" at a site like investopedia and start paper-trading your ideas/companies you find as you research.

don't take tips from any magazine or person on the street or knowledgeable friend or rich person you are remotely connected to unless you want to just throw your money away. Its not poker--stocks are actually a part of a company with a story behind it, not just a lotto scratcher. do a little research and figure out what the story is and then do a little more work and decide whether or not the story actually makes sense.
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