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investment advice...

  1. 61
    young invposted 8 years ago

    Hello everyone , im 18 and am learning to be a carpenter in my second year ,

    I have recently become interested in investing money i have saved into something , i come up with theories at work about why such and such is a great place to invest my money , but before i take a leap , i need to know some basics ,

    I was wondering if anyone had the time to introduce me to this world , i would like to know the ins and outs of bonds, stocks and online investments, people i speak to don’t seem to confidently explain to me ,  I’ve been looking into Kiva, fidelity, hyip and dealsjamaica but I want at leat a 10% monthly return with as little risk as possible
    Thanks alot for any replys in advance

    1. 0
      mattcastle12posted 8 years ago in reply to this

      Young Inv,

      If you could get 10% per month every investment firm on Wall Street would offer you a job.  These types of returns aren't realistic, and if it were, it wouldn't be obtained by investing.  Traders can do it, but it takes years of education and practice.  Not to mention a high rate of risk. 

      Best thing you can do right now is learn how the markets work.  Questions like:

      What is a stock? 
      How does it gain or drop in value? 
      What makes one company an industry leader and another a flop?

      I wouldn't attempt to setup a trading account but I would advise you to open a mutual fund account where you deposit a small amount of money each month and watch your account grow along with the stock market. 

      Don't get trapped into the glitz and glam of trading and money making until you know the fundamentals.  If you like, start reading some of the basic articles in my hubs and you will get an idea of how to setup a basic account. 

      Email me or leave a comment if you have further questions.

      Good luck

      P.S. Vanguard is the best place for a mutual fund account.

    2. thetrader profile image60
      thetraderposted 8 years ago in reply to this

      Hmm ... you are very far from being realistic if you know nothing. First learn that HYIPs are just scams: the earnings come from others people money. Well in stock market also as it is mostly a zero sum game except for IPO but the duration is much longer than HYIP.

      Learn to save money first and learn about stock market. Don't dream it can take years and years and some people never do it: it can be a harsh game, 90% are losers, 10% are taking the money from the first ones. When they make a great deal they think they were genious, it was just chance. When you have chance quit or if you want to go on never risk 100% of your winnings but only 50%.

    3. Ralph Deeds profile image70
      Ralph Deedsposted 8 years ago in reply to this
  2. sunshine1221 profile image61
    sunshine1221posted 8 years ago


    Congratulations on becoming interested in saving at an early age smile  I didn't start until after college, and am still making up for lost time.

    I agree with the person above that Vanguard is a great place to invest in mutual funds because of the low costs - their website also has a lot of useful information.  I also agree that starting with a small sum of money with a website like Sharebuilder is a good way to get your feet wet. 

    Before I did either of these steps, I went to the library and got out a lot of different books on personal finance.  You have to take some of them with a grain of salt, but it is nice to see the different perspectives people have (or try to sell you!). 

    I would also highly recommend taking the time to look at Morningstar's investing classroom, which has a lot of the basic investing information that I think you are looking for.  It is kind of hidden in the site, so here is the direct link:


    I hope this helps!  Please let me know if you have any questions or comments, and best of luck.

  3. Mark Knowles profile image61
    Mark Knowlesposted 8 years ago

    Put it into property or gold. They will always hold value in the long run. big_smile

    1. Mark Knowles profile image61
      Mark Knowlesposted 8 years ago in reply to this
    2. Princessa profile image87
      Princessaposted 8 years ago in reply to this

      Property has worked wonders for us... I could say that at least for the past 5 years we have been living on it!

  4. chewingvampire profile image59
    chewingvampireposted 8 years ago

    i started trading on my own books in college...i belong to the non-efficient market hypothesis school of thought...hence, i believe you can beat the market if you know how...i also suscribe to the technical analysis way of thinking...read up on technical analysis and candlesticks and the likes...you may not end up being a firm believer but its a good place to start...

    on the fundamental side, i agree with mark on gold...at least in the short run with the dollar going weaker...

    while constructing your own portfolio, you should also consider how much risk you can stomach...

  5. pplive profile image60
    ppliveposted 8 years ago

    The  best way is to exchange dollars into Yuan(RMB).It's totally safe and you'll get 10% portfolio return in one year.

    1. Mark Knowles profile image61
      Mark Knowlesposted 8 years ago in reply to this

      I don't understand this. What do you mean?

  6. pplive profile image60
    ppliveposted 8 years ago

    Exchange rate of Yuan against U.S. dollar is 7.27 now . The exchange rate could be 6.64 by the end of 2008 and 6.17 by the end of 2009. The one-year deposit rate of Yuan is 4.14%.Please read the news here http://www.bloomberg.com/apps/news?pid= … r=currency

  7. Mark Knowles profile image61
    Mark Knowlesposted 8 years ago

    Ah, thanks pplive. I wasn't sure what you meant. Although I do not think there is any such thing as a "totally safe" foreign exchange transaction.

    1. Misha profile image75
      Mishaposted 8 years ago in reply to this

      I would second Mark on this. I have five years experience of active involvment with the markets, and I can say you the best thing a layman can do is stay away. I'm serious. Otherwise you are doomed to lose at least part of your money...

      Open money market or CD, this is your best bet. In US HSBC and Emigrant Direct currently have 4 plus percent on their savings accounts.

  8. Kenny Wordsmith profile image82
    Kenny Wordsmithposted 8 years ago

    The best way is to be a layman, and as Mark advises, put the money in property or gold. That's long term. For short term look at safe investments. In our contry we have fixed deposits and recurring deposits in banks.
    If you can afford a little risk, mutual funds are also worthwhile. My investments land me about 30% profit annually, and some riskier funds have given me 50% or more.

    My father had a great method:
    50% of his money was in absolutely safe long term investments. About 30% was in medium term, slightly risky investments like mutual funds. The remaining 20% was in blue chip stocks.

    A thumb rule for investing is to look at 3 variables: Liquidity, returns and risk. Usually if one's more, atleast one of the other two are less. Stocks are high risk, high returns, high liquidity investments, for example. Money in a savings account is low risk, high liquidity, low return.

    I'm a layman; so I keep things simple.
    All the best to you.

  9. Mark Knowles profile image61
    Mark Knowlesposted 8 years ago

    My research tells me they are more likely to lose all their money. Especially using high leverages as most brokers, (including pplive's recommendations) are pushing.

    1. Misha profile image75
      Mishaposted 8 years ago in reply to this

      If we start talking leverage, this is altogether different animal. Many people lose way more than what they invested. In no time...

  10. Ralph Deeds profile image70
    Ralph Deedsposted 8 years ago

    Younv Inv
    Matt Castle 12's advice is good. In my opinion, it would be a mistake for you to invest in individual stocks. The place for you is a no-load (no sales charge or commission), low cost (annual operating cost of the mutual fund--Vanguard funds are the lowest, around .2% per year. Some funds charge 10 times as much which greatly cuts into your return over time) tax-efficient (meaning that the fund doesn't do a lot of trading which results in taxes for you) Index mutual fund (index funds invest in a broad portfolio of stocks in a given category, e.g., Index 500 funds invest in a portfolio of the largest 500 U.S. companies). The Vanguard Index 500 Mutual Fund would be a good place for you to start.

    Secondly, you should invest as much as you can in a 401k plan if your employer offers one. If not you should invest the maximum in an IRA, either regular or Roth. (Regular IRA's save on your income taxes whereas Roth IRAs are investments of after-tax earnings.)

    Here are two good books to read: "Winning the Loser's Game" by Charles D. Ellis and David Swenson's "Unconventional Success A Fundamental Approach to Personal Investment. I would start with Ellis's book. It's shorter and easier to understand.

    Here's a link to a Business Week site for comparing Mutual Funds
    http://bwnt.businessweek.com/mutual_fun … ion=link11

    Good luck!

  11. Ralph Deeds profile image70
    Ralph Deedsposted 8 years ago

    Leverage is one of the factors that got the banks in trouble with subprime mortgages. Borrowing money to invest is very risky, almost suicidal. The only investment ordinary folks should make with borrowed money is in their home.

  12. Mark Knowles profile image61
    Mark Knowlesposted 8 years ago

    The banks are not actually in trouble with the subprime mortgages - they will do just fine thank you very much. They will re-write all the mortgages for a healthy fee, charge a higher "insurance" and make out like bandits. They are the only ones big enough to manage. A few Wall Street brokers might lose their bonuses, but thats it.

    When the CEO of Merrill Lynch was "fired" recently, he walked away with a 200 million dollar severance.

    You don't do that if the guy lost you any money.

    And Northern Rock have just been bailed out in the UK. Trust me, despite the crap in the newspapers, this is no disaster for the banks. For the guys losing their houses it's a disaster.

    And after all that, I agree - you have to be out of your mind to use leverages in forex trading - I guarantee you will lose your money or your money back big_smile

    1. Ralph Deeds profile image70
      Ralph Deedsposted 8 years ago in reply to this

      I beg to differ about the big banks. CitiGroup, Bank of America and Morgan Stanley have all taken multibillion dollar baths due to their involvement with subprime mortgages and they have all had to give up part of their equity to soverign banks in China, Singapore and one of the emirates in order to replenish their capital. Plenty of other smaller banks and investment firms are also in big trouble over subprime mortgages. Countrywide, the largest mortgage company denied rumors of bankruptcy only yesterday. Plenty of state and local pension investment funds are also in trouble over subprime mortgage investments. There is plenty of more bad news yet to come.

      I completely agree that the people who are suffering the most are the homeowners who are facing foreclosure as a result of being lured into ARMS or interest only mortgages with big early payment penalties, etc.

      1. 59
        ooandajbposted 8 years ago in reply to this

        I agree with you ralph you are very right. And in the coming time the house owers are going to suffer

  13. Mark Knowles profile image61
    Mark Knowlesposted 8 years ago

    I take your point, but I am not so sure - there is a good argument that the big banks made considerably more profits than they lost in this crash. The problem is they mis managed the funds and used them unwisely e.g  buying stakes in the Chinese banks etc.

    I know for sure that Deutsch Bank made serious money - but they managed it better.

    citi just happened to have bit off more than they could chew by buying ABN Amro's debt - The banking industry knew this was coming two years ago and continued doing what they were doing.

    And at the end of the day, it will all get revolved . I wiould be very surprised to see a bank go down out of this.

    1. Ralph Deeds profile image70
      Ralph Deedsposted 8 years ago in reply to this

      Goldman Sachs is the only bank that I've heard made money out of the subprime crunch. They sold the mortgage-backed CDOs and DIVs and then shorted them, making money on both ends. Several commentators have questioned Goldman's ethics in these transactions. CitiGroup, Morgan Stanley and Bank of America all lost billions, and all gave up significant chunks of equity to sovereign funds in the Middle East and China. Moreover, not all the chickens have yet come home to roost. More bad news is coming.

      I just heard on the radio that Goldman just predicted that we will have a recession lasting 6-9 months.

    2. Ralph Deeds profile image70
      Ralph Deedsposted 8 years ago in reply to this

      Mark, from today's paper: Giant Write-down Is seen for Merrill. "Merrill Lynch is expected to suffer $15 billion in losses stemming from soured mortgage investments, almost doulbe its original estimate, prompting the firm to raise additional capital from an outside investor....The loss far exceeds the $12 billion hit many Wall Street analysts had forecast....To shore up its finances Merril is not in discussions with investors in the United Strates, Asia, and the Middle East, including American private equity firms, to raise about $4 billion in teh coming days...The developments underscore the rising toll that the mortgage crisis is taking on many once-proud Wall Street banks. In recent months Merrill and several other firms have grabbed financial lifelines from wealthy foreign governments. Further investments by so-called sov ereign wealth funds could promopt scrutiny by Congress."

  14. Misha profile image75
    Mishaposted 8 years ago

    My take on the current situation is closer to Ralph's. More, I think we are not talking mild recession here, we are talking full-blown crisis of a magnitude at least comparable to 1929, and probably more severe...

  15. Mark Knowles profile image61
    Mark Knowlesposted 8 years ago

    Well. I disagree. This was carefully orchestrated, and known to be coming well in advance.

    I am quite prepared to eat my words when I see brokers jumping from windows and banks going under, but I do not believe it's going to happen. Yes, there will be a "recession" but at the end of the day I consider it a correction not a recession.

    None of the majors will take a big enough hit, but what they will do is gobble up all the little guys. big_smile

  16. Misha profile image75
    Mishaposted 8 years ago

    I will be glad to be wrong. Only time will tell, though. Let's talk in a couple of years, I think it will be clear what we have at hand by that time smile

    1. thecounterpunch profile image58
      thecounterpunchposted 8 years ago in reply to this

      The 1929 crash won't happen again because they don't need it to happen again: the purpose was to confiscate Gold so that the system would be under the control of the Bankers and sound money suppressed - see this extraordinary video interview of Norman Dodds a live testimony of that time who worked in the prestigious JP Morgan Bank:

      But next goal would be to go full electronic money so I expect they will create some big event with a liquidity crisis to justify the use of microchip for money:
      http://hubpages.com/hub/Astonishing_Int … ockefeller

      This crisis could occur around 2020 when jobs offshoring will take off - according to the CIA and in 2035 the middle class all around the world would be crushed economically and revolt according to the British Intelligence Service so that a fascist regime could be brought up with that kind of microchip.

  17. Misha profile image75
    Mishaposted 8 years ago

    Counterpunch, I'm sorry, I don't buy into conspiracy theories. smile

  18. William F. Torpey profile image85
    William F. Torpeyposted 8 years ago

    I tend to agree with Mark. It's the way the big guys work: They make billions going way out on a limb, knowing it will all fall apart eventually. But they'll walk away with the profits while those that are left behind find a way to get bailed out -- either by their pals in big business or by the government. Who gets hurt? Only the little guy. Now Bank of America is buying Countrywide for $4 billion, and JP Morgan Chase will probably bail out Washington Mutual. In the end, all the big execs end up living the life of luxury on the tropical islands. That's the way it went in the Savings & Loan scandal, the Chrysler fiasco, etc., etc.

  19. 61
    zladyohposted 8 years ago

    The FED hates shorts.  These guys will get fried soon.  Now Bush and Paulson are getting into the act so the markets does not crash.    Flushing the indexes with cash.  The short sellers have been around a long time and so have the naked put buying.  They will get what is coming to them.  I always follow the big money when I trade, but this is one time I am stepping back.  These shorts will eat it soon!
    I've been trading for a while now...started in 1982 with stock,   1998 in options.

  20. Inspirepub profile image87
    Inspirepubposted 8 years ago

    Hi Young Inv,

    Another factor to consider is your own personality, what you do best, what you enjoy, and what you hate.

    Trading (buy low, sell high) and Accumulating (buy low, never sell) are the focus of share, bond and currency markets, but they are only two of about seven or eight different wealth creation processes.

    If you are serious about making good returns in trading or accumulating, you have to love analysis, and get a buzz out of spotting a bargain. You also have to do it enough to get really good at it.

    If you hate detail, numbers, and masses of data, don't go for trading or accumulating. Create wealth using a different process, and eventually you can pay someone who DOES love it to broaden your portfolio for you.

    You might be a creator, full of business ideas, or a great promoter of other people's good ideas, or a deal-maker like Donald Trump. Or you might be more like Ray Kroc (founder of McDonalds), who saw a good business and just duplicated it all over the world.

    Don't do something just because everyone else is doing it. Find your own passion, your own strengths, and then team up with other people who have complementary strengths.

    You WILL have to work at whatever you choose as a wealth creation strategy. So make sure whatever you have to do doesn't FEEL like work (at least most of the time!).


  21. Joe Roman profile image60
    Joe Romanposted 8 years ago

    Hmmm..back to the young carpenter..
    Read some good books and learn before investing.
    Personally I like drips...direct investment into a company.
    But Vanguard or Berhman fnds are good mutual funds,

    I believe stocks are not suitable for you just now.
    Build up some savings of $5000 to $8000 and buy a house and you will
    have a good investment.

    If you shop for a good house and get it a a lower price than market, you will
    have instant equity.

    You shoud be in  IRA or 401K to assist your meager retirement funds from govt.

    Remember from an ex roofer/carpenter construction is cyclical and seasonal. So save
    your money for lean times too...

  22. Ben Evans profile image74
    Ben Evansposted 8 years ago

    Young Inv,

    I think there are many different ways to invest.  I trade options myself.  This is a very risky way to trade for most people.  I trade technically and play positions that are called spreads and some naked option positions.

    The problem with equities is the same as options.  Options, however, have much more risk and don't move with the equity that they are underlying.

    I believe that anyway that you want to invest should be known before you risk any capitol.  I would recommend opening a practice account.

    You can open a free practice account here:


    There are also some very good educational resources here also.



  23. Blaine561 profile image60
    Blaine561posted 8 years ago

    Ralph don't get me atarted on the banks, we've not seen nearly all of the top of the iceberg on that one.  Enough said.

    Getting a 10% return on your money, is it possible in this market.  With the proper education, don't even think about it, I would put my money in the options market.  Options University has a strategist service, that in the first three months returned 40% on investments for its clients.

    Right now, they're just waiting for the bottom to fall out, your banks Ralph.

    I have created, sponsored by Options University, a new Flagship Hub for options traders, beginners and veterans.  The flagship contains seven articles on various aspects of options trading and different options trading strategies, but I have included 20 satellite hubpages, to start, each with a unique outlook on the stock market and options trading,

    I have, thanks to Options University, another 50 articles from some of their top writers and options trading strategists, yet to be put up.  I hope to get at least two to four new hubpages posted each day for the next couple of weeks, on the latest tips from some of the leaders in options trading strategies.

    Learn all you can and learn it form someone who is still trading currently, none of this do what I say bit.  With a solid education in optrading trading strategies, you will see the opportunities.  First authors to read are either Bill Johnson and his "Options 101" or Larry McMillan, how wrote the Bible on Options Trading Strategies, "McMillan on Options"  Links to Amazon on my hubs.

    Trade safe.

    http://hubpages.com/hub/Options-Trading … o-Advanced


  24. Mark Knowles profile image61
    Mark Knowlesposted 8 years ago

    I disagree Blaine561 -

    The forex market offers far more opportunities. this is a flagship hub I created some time ago that details all these opportunities. Detailed analysis of the markets and recommendations for the best place to start earning far more money than you could in the options trading arena.

    Forex Trading Guide

    I have also added many smaller hubs about forex to help the beginning investor take advantage of the HUGE opportunity to make INSANE amounts of money trading foreign currencies. By far my best effort is the MASSIVELY popular The Best Forex Broker

    Which gives detailed information on how to choose the forex broker that is right for you.

    Also, I did a series of flagship hubs on foreclosures. Buying foreclosure properties at SERIOUS discounts - and I mean THOUSANDS OF DOLLARS UNDER MARKET is the way to go. Check out my flagship hub:
    Where to find Bank and HUD foreclosures 

    More detailed information - from someone who knows the markets and is a recognized expert with years of trading under his belt.

    I know it sounds strange that I would be wasting my time pushing these on hubpages when I am making SO MUCH MONEY I HARDLY KNOW WHAT TO DO WITH IT, but I genuinely want to help people. There are many affiliate links to allow investors to buy tools to educate themselves, but these two strategies combined will make you rich beyond your wildest imaginings.  Pay them a visit and learn. smile

  25. Ralph Deeds profile image70
    Ralph Deedsposted 8 years ago

    Neither options trading nor foreign exchange trading are good choices for the young carpenter. The best things he could do is save as much as he can and put as much as he can in a 401k, or IRA, either Roth or Regular, or a SEP IRA. And he should invest the money in Vanguard or other no-load, low cost, tax efficient mutual funds. Options trading or Forex trading are suicidal for beginning investors. You may as well go to a casino and shoot craps.

  26. Mark Knowles profile image61
    Mark Knowlesposted 8 years ago

    LOL - You should read my hubs - I was just making fun of blaine here big_smile Anyone who gets involved in options trading or forex trading might as well flush their money down the toilet.

    Options university - what a joke ! You could spend ten years studying the market and still have no clue which way it's going to jump.

    I forgot to add this:


    1. Ralph Deeds profile image70
      Ralph Deedsposted 8 years ago in reply to this

      Ha! Sorry.

  27. Mark Knowles profile image61
    Mark Knowlesposted 8 years ago

    No sweat - I should have added the smilie smile

  28. Mark Knowles profile image61
    Mark Knowlesposted 8 years ago

    I think if you have to add a disclaimer to your forum posts you are almost certainly a spammer and definitely a crook. Try reading the guide lines.

    1. Reealjrd profile image60
      Reealjrdposted 8 years ago in reply to this

      Thanks mark for explain about the disclamer.

  29. Scotty Knows profile image59
    Scotty Knowsposted 8 years ago

    Young Inv,

    Like others have mentioned, good job on getting a grip on saving for your future now!

    As far as knowledge of investing goes, every little bit of education on the subject is going to add value to your goals. 

    Once piece of advise I'd like to give you is to consider finding a good financial advisor.  If you take a look at any successful business person, they are surrounded by experts in many different fields.  It is no different when it comes to finance. 

    Although it's great to have a grasp on your finances, there is a value in having an expert help you with some of the work that you cannot do on your own. 

    For example Investors Group Inc. is a member of the IGM Financial Inc.(The largest of it's kind in all of Canada) and when we take a look at the returns over the last 15 years, the average is just over 10%.  Now, if we were out of the market for the best 5 days over the 15 years, the returns would drop closer to 8%.  If we missed the best 30 days in the market over the 15 year period we're even worse off with returns of less than 5%. 

    So, as an ammature investor attempting to time the market while trying to learn the ins and outs, you could be playing with fire. 

    In theory it would be great if we could be an expert in accounting, in investments, auto mechanics, and if we could even tailor our own suits.  The reality is, you are a carpenter and you are probably great at what you do, people hire you for your expertise.  I'm not about ready to frame my new house.  I'd be much more comfortable having you make it happen. 

    Either way, good luck!  Filter through all the information everyone has been so kind to provide and do what feels right for you! 


  30. 60
    moneyman68posted 8 years ago

    I believe in value investing and finding a company that has solid financials to invest over long term. The key is to look for compounding rate of return on your investment, investing for years and building equity in a company. There are downturns, but with a solid company it will stay the course. Just remember no investment in the stock market is 100% safe.

    1. 59
      ooandajbposted 8 years ago in reply to this

      Yes moneyman68 this is the right way to invest. Look for some potential company and then invest like now we can invest in insurance like thir flexi plans, unit linked etc.

  31. 61
    Donna18posted 8 years ago

    Many of over fellow members have already suggested i too wanted you to suggest the same. Unless or until you gain knowledge and confidence about the market don't jump on to it. You can lose many it is a better advice from one of the mate that open a mutual fund account you must go for it if you very keen to investment. mutual fund are the safest mode of investment.

  32. 59
    ooandajbposted 8 years ago

    Stocks should be one of the best options to invest in your case. Forex etc is only for "money which you dont need "

  33. Reealjrd profile image60
    Reealjrdposted 7 years ago

    Hello friends,

    If you move into the market you can find many options for investment.