ITT Things that should be on a sticky but aren't because we don't have one
>What broker is best hurdur (Anyone reading with this question, we can't tell you, you need to consider what your strategy is going to be then look at the fees at each broker to decide what is best for you)
>How do I get rich quick? (Invest in memecoin)
>I have 5k, what should I invest in?
>What books should I read, I want to start investing? (start with The Intelligent Investor - Always)
I know nothing about any of this shit and even I ca ntell you that trading is very short term (buy & sell for profit) whereas investing is over a long long period of time to benefit from dividends, and also usually diversified to minimize risk. right??
wrote this a while ago, trying to revise and rewrite it down to the most important points expressed in the most concise manner
asking "how do i get rich /biz/" is like asking /ck/ "how do i cook"
asking "i have $300 what do" is like asking /g/ "I have 100 gb, what do"
there are many scammers out there be careful
pump and dump scams: taking a penny stock or a cryptocurrency and making outlandish claims about how it is going to the moon to get others to bump up the price
multi-level marketing scheme: People are brainwashed into thinking they can make a lot of money buying overpriced energy drinks, health foods, knives and such and try to sell them or enlist other people as "distributors".
pyramid/ponzi schemes: In a pyramid scheme new members must pay a fee and people make money recruiting other members, in a ponzi scheme people are promised returns on their investment but the only money going into the pot comes from recruiting new members with hilarious consequences
Gambling: the stock market can be used as a platform for gambling or to lure people into scams, people with gambling addictions should avoid trading on the stock market for the months needed for such a psychological problem to heal. FOREX scams and Timothy Sykes spring to mind.
The stock market
It is very difficult to beat the market, often "hot stock tips" are already priced in, for instance if someone predicts a stock will go from $10 to $15 by the time most people have figured this out the stock may already be over $15. In this way you are competing with other investors to make predictions about the stock market.
Risk is as important as returns. Even if the information you have indicates the price will go up to $15 there are always things you could not possibly know which might crop up unexpectedly. Rather than put all your eggs in one basket you ought to diversify your investments, a large proportion of your investments should be in low risk stocks and funds.
Investors can only valuate a company and the price of its stock to a certain degree of accuracy, for instance a conservative estimate of the price might be $13 and a liberal estimate might be $18, within this range the price will move randomly in a "random walk".
There are various different kinds of financial intruments and investments besides stocks.
I wouldn't actually recommend beginning with the Intelligent Investor. The core principles are key but a lot of the general content was lost on me, and likely a lot of other newbies.
Some great quotes from it:
>The amount of return the investor seeks is not equivalent to the amount of risk he is willing to take, but rather the effort he is willing to put into his stocks.
>There is only one kind of investor, the long term investor
>(Jason Zweig): IPOs - Its Probably Overpriced
>You should only invest in a stock if it is a cheap way to own a desirable business
>People who invest make money for themselves; people who speculate make money for their brokers
>invest only if you would be comfortable owning a stock even if you had no way of knowing its daily share price
>No one reading it and it not existing is a difference without distinction.
No shit. Just admit that you formed your sentence a little awkward instead of sperging out.
>Either way, my time is wasted writing one.
Good for you.
jesus that hack rich dad ripped off so much shit from this but turned it into garbage
also, here's what i read: How An Economy Grows and Why It Crashes
some rich dad shit. some of it was ok, a lot of it was worthless
currently on How To Make Money In Stocks. this book does NOT fuck around. it's purely technical advice, none of that motivation/frame of mind/blablabla shit. just pure knowledge. reccommend for anyone who wants to get into stocks (proper investing, not /biz/ daytrading memes)