Your Questions About Stocks And Bonds

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Ken asks…

How can I get into stocks and bonds? I’ve become interested in knowing more about it…?

I’ve heard that one doesn’t have to be rich, necessarily to invest in stocks and bonds. I’d like some tips for a novice on the subject matter…

financi4 answers:

You don’t have to be rich to be in stocks.

If you’re a rookie in investing or stocks, go to

www.finance.yahoo.com.

Open up a portfolio without using real money. You can give yourself as much or as little money to try out the market. The stocks you want to focus on is consumer staples, consumer discretionary, and healthcare. These are DEFENSIVE stocks that will survive through good and bad times. Most of my positions are in these stocks. Some names include 3M, Procter & Gamble, Kimberly Clark, Exxon Mobil, Walmart, Costco. Everybody’s got to eat and wipe their butts regardless of the state of economy. Many of these companies survived through the Great Depression.

That’s the benefits. You can sleep at night knowing your money is doing well. There are NO guarantees that you won’t lose money. It’s just that these stocks are the best. They pay good dividends too.

Then once you’re comfortable and test the waters of the market, you can finally put some real money in. Go to Scottrade.com. They’re excellent for beginners.

If you’re new to stocks, DON’T DAY TRADE. You’ll a rookie in a world of professionals. I tried day-trading with Citigroup and AIG when they were a little bit over $1. I had some luck at first, making about $30 a day but I was way over my head. My luck didn’t last long and I had to rethink my strategy.

Day trading involves A LOT of commissions to the broker. With all the commissions deducted from each trade, you’ll be lucky if you only lose half your money.

I would just day trade using Yahoo! Finance. Open a stimulation account, give yourself $100 worth of fake money and play it in the stimulation format. You’ll see what I mean by losing money every easily.

Good luck.

Thomas asks…

The key reason only large corporations are able to sell stocks and bonds in the financial markets is?

A. sunk costs.
B. asymmetric information.
C. perfect information.
D. the high cost to sell stocks and bonds.

financi4 answers:

D. Underwriting costs are very high

Daniel asks…

WHY is everyone so concerned with The Economy? Do you own quantities of Stocks & Bonds & hang out on Wall St. ?

I don’t. I’m NOT affluent, and I love to see the panic in the rich Sheeple’s eyes…

MY Food Stamps will come every month, nevertheless.

Terroristic Atheist Misanthropist

financi4 answers:

Don’t count on those Food Stamps dude. Get enough people mad about the economy, and they’ll turn on Welfare recipients in a heartbeat.

I’m not affluent either (I only make about 20,000 a year) but I own stocks, because investing is a good way to ensure one’s future. It sucks that I’ve lost money, but it’ll come around again, and now is a good time to buy stocks really cheaply! One could theoretically make a good deal of money if one buys the right stocks at the right time.

Chris asks…

i want to invest some money in stocks/bonds what is the best way to get started, what do i need to do?

how much money do i need to start and where do i go to buy them. any information would help

financi4 answers:

In the beginning “newbie” traders and investors DO NOT INVEST THE FIRST cent or dollar. No amount of money.

In the beginning you LEARN HOW:
A] the stock market works.

B] to invest in many, many various ways.

C] to properly trade

D] many other concepts and aspects.

Beginning or novice [‘newbies”] investors and traders ALWAYS make mistakes. In fact, throughout a person’s avocation or hobby to do trading, he/she will make mistakes.

In the very beginning, you READ AND LEARN about the market and how it works:
Read “Investing for Dummies”
As you are reading and doing research about the investments you are interested in, sometimes you’ll come across a financial or investment term you never heard before.

You can usually find excellent, easy-to-understand definitions of many financial and investment terms by going to Investopedia’s dictionary.

Http://investopedia.com is a free site. It’s recognized by Y! A as a “Featured Knowledge Partner”.

It probably won’t be long when you’ll feel you’re ready to invest your hard-earned money. Before taking that step, you really should do research about what you are investing in. It also has a free, paper trading platform. You can set up a virtual account and almost trade as though you were trading with real money.

Http://finance.yahoo.com is also recognized by Y! A as a “Featured Knowledge Partner”
END E-MAIL #1
The thought processes are:
1] to have more successful trades than failing trades.
2] to minimize the losses of those losing trades.
3] “To live to trade another day.” Having enough money in the trading account to return to the market.

ALL this is accomplished by a few true expressions used on Wall Street:
Some trading expressions come to mind:
A] “On Wall Street there aren’t any gifts.”
No one gives anyone else anything – not even stock tips.

B] BUlls [BUyers] earn money.
BEars [SEllers] earn money.
Pigs get fat.
Hogs [Greedy Traders] get slaughtered. They lose the money in their trading accounts.

C] “Trees don’t grow to Heaven. Neither do stocks or any other investments.”
In other words: What goes up, MUST come down!

D] “Plan your trade. THEN trade your plan!”
Have a trading plan with rules for that plan for each strategy.

I want everyone to know I DO NOT own any portion of this man’s estate, nor am I associated with him or any one else connected with him in any way. I am not part of the publishing company or an agent or anything else. This man does not know me from Adam AND I don’t know him. I know of him and the wonderful book he wrote. THIS IS NOT SPAM.
You should buy a copy of this book:
“The Richest Man in Babylon” by George S. Classon. You can get the book on http://amazon.com
Its very easy to read. Its very easy to follow. You can write in it. You can make notes in it. All you have to do is to read five [5] pages – Let’s count
1 – 2 – 3 – 4 – 5 pages of this book – or any book – each and every day.
OR You can leave it sit on the shelf, on a table or on the floor and let it collect dust.

Thanks for asking your Q! I enjoyed answering it!

VTY,
Ron Berue
Yes, that is my real last name!

George asks…

Can you buy/sell Detroit real estate on your computer like stocks and bonds?

Can this be done? Without any physical meetings-just buy/sell like trading stocks and bonds? I ask because Detroit is a highly distressed market with very little volatility. If so how?

financi4 answers:

No. It is not a securities trade, it is real property.

John asks…

How do I find out information on retirement, stocks/bonds Life Insurance my husband hides from me?

Retirement
Life Insurance
stocks/bonds
Bank Accounts
etc.

We are in the process of a divorce and I need that information that he has kept from me. He is very controlling and has that kept confidential. I have already seen a lawyer… Isn’t there an easy way for the lawyer to request that information from him?

Does my lawyer need my input so that we are sure to have ALL of the information?

I’m confused.

financi4 answers:

Your husband by law has to disclose all financial matters under threat jail time and fines. You need to speak with your attorney again he/she will know how to proceed.

Charles asks…

Hey, I have a question about taxes on Savings Bonds and Stocks.?

I recently cashed out some Stocks and Savings Bonds and was wondering how much I had to save for taxes. I cashed out $6,750 in Savings Bonds and $4,500 Stocks. I’m gonna file single and no taxes have been paid on any of the stocks or bonds and this is for 2007. Is it still 10% up to $7825 then 15% on the rest? If that is my only income in 2007 am I right that I’ll owe roughly $1,300 for 2007? Doesn’t have to be exact just making sure I save what I’ll need to pay for taxes so I won’t be in debt. This is the 1st time I’ve messed with stocks and bonds (Oh yeah, They were EE bonds) and not sure about taxes on them. Thanx

financi4 answers:

You only pay taxes on the interest earned on the savings bonds as well as any gains from the stocks….if any losses occured upon your sale of stock you can write them off against any gains

you are gonna need to research yourself what each stock was bought at originally or talk with someone at the brokerage house who processed the sale to find out your cost basis

when you cashed in the savings bonds you should have received an interest receipt for amount that is taxable to you

anyways at the end of the year you should receive tax statements but yeah if you have no other income about 10-15% is the tax due

so if the stock was bought for at 30 a share and sold at 35 a share you only owe 5 per share

Joseph asks…

Evaluate a variety of savings and investment options; Including stocks, bonds, and mutual funds?

financi4 answers:

Bud is right. Do your own homework.

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