Question for the stock people

Discussion in 'Reality Check' started by Matt30, Sep 7, 2020.

  1. Matt30

    Matt30
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    I’m looking to possibly start investing in some stocks. I’m not entirely sure on how to get started or what program/app to use.

    I know some of you here dabble in stocks. What are you using?
     
  2. Gerald

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    For beginner investors and people that don't want to invest a lot of time in managing a portfolio, the best way to go is to look into ETFs and mutual funds. You will always hear stories from people about how they made a killing on stock XYZ. What they're not telling you about is the hours and hours or due diligence that they put in to be confident in the stock, or that they just got lucky and also lost a tonne of money on all the other bets they're making.

    ETFs and mutual funds mostly track the stock exchanges. When you hear that the NASDAQ or TSX was up or down in a given day, this is basically what you're investing in. The funds you invest in hold individual stocks from all across the board in terms of industries and risk rewards. This is the safest way to make money and not just piss it into the wind.

    There are TONNES of mutual fund and ETF options out there depending on your risk tolerance. The thing you really need to watch our for the the MER, or the fees that the investment company charges you to invest. These can be anywhere from 0.25% to 3%. It doesn't sound like a huge difference, but if you're planning on parking your money for the next 10-20-30+ years, it'll chip away a lot. The kicker is that it doesn't matter who you invest with because all of these funds basically invest in the same stocks. You're not going to get better returns based on a higher fee.

    Roboadvisor companies like Wealthsimple and Questrade come highly recommended. Tangerine has higher fees, but also has some easy to invest in funds. Banks suck and will charge the higher fees.
     
  3. Gooch

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    Wait until after election and sports start up fully before putting money into market. Buy low sell high. Nothing is low right now.
    There are a lot of new traders looking to make bank. They will get bored once sports betting comes back and there will be a dip. Also the us is pouring tons of money into the market. That will stop soon.
    Wait till you see news stories about falling market. Then start buying in.
    Remember when poker was the cool thing? Well now its day trading. It wont last.
     
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  4. Matt30

    Matt30
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    Great advice guys, thanks!
     
  5. RoryTate

    Buffer the streaming media unto me.

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    Get ready to do some learnin'. Youtube is a great place to start: there are several channels for beginners, and a few of them are Canadian to boot, which helps a lot.

    I'd suggest steering clear of mutual funds and just go with ETFs due to the MERs involved (as Gerald mentioned). Of course, do your own research on everything. Here's a starting point: What Is Considered a Good Expense Ratio?


    Years ago I started with mutual funds, and didn't get much return from them. I'd also (pretty much blindly) buy a few stocks on Questrade (say a couple hundred here and there), and most of those didn't do so hot either. Some did ok, some didn't.

    I switched to a robo advisor (this one at Royal Bank). This worked out great, as after a questionaire/survey when opening the account, it would figure out what ETFs to invest in, and at what percentage. I'd toss money at the account, and it would distribute it amongst 8 ETFs or so automatically. The down side was it costs money every month, and after a year of investing it was starting to cost $30/month+, and I'd much rather keep that money in my own pocket.

    So I transferred the ETFs from the robo investor to Questrade, and when I throw money at it, I have to decide how much goes to which ETF. It's more work on my part, but I don't mind. The best part is that Questrade doesn't charge much in commissions, and many ETF purchases are pennies if not free. Stock purchases are around $5, which is a heck of a lot cheaper than what the bank brokerages charge.

    Here's a great resource: Instead of a robo investor choosing which ETFs to buy, they have some model portfolios you can start with yourself. I've also listened to the podcasts while doing other stuff, and after a while it starts to sink in: https://canadiancouchpotato.com/
     
  6. Duggan

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    You can think Dave Portnoy for a lot of the influx of day traders. The pump and dumps in the OTC and penny stocks are insane these days.
     
  7. Gooch

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    Yeah for long term investors like myself, you are best just waiting this out. I think there will be a great opportunity in the future to get money into the market with some great deals. I pulled all mine out into cash a long time ago. Hate to say it, but now i am waiting for a crash that may or may not come. I dont like the volatility right now so i am better off watching from the side lines.
     
  8. Duggan

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    Yup, I was up big one day, then it settled back out, I moved to cash because I don't have time to watching my phone constantly, plus it is stressful playing that game.
     
  9. Gooch

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    I hate it. The highs are great but the lows ruin my day:)
     

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