Hey !
I just opened an Action Direct account at RBC bank. I have never invested in stocks in my life and I would like to get a few insights. I heard that gold mines are pretty good companies to invest in...do you have any suggestions to make?
thanx!
Investing
Moderators: North Shore, sky's the limit, sepia, Sulako, lilfssister, I WAS Birddog
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C-150Pilot
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Investing
Fly it until the last piece stops moving
"I give your landing a 9...on the Richter scale."
"I give your landing a 9...on the Richter scale."
Before doing anything read 'The Intelligent Investor' by Benjamin Graham. It was originally written in 1949, and last updated in 1972 but the information and advice are still relevant today. It is considered the bible of value investing.
http://tinyurl.com/cm9j8
http://tinyurl.com/cm9j8
Not that I'm particularly qualified to give financial advice but...
1) Don't let your emotions control your decisions - think with your brain NOT your heart.
2) If you have money invested elsewhere (such as mutual funds etc...) where it's being professionally managed and the risk spread across various sectors then consider investing in a small sector that's not generally looked at by fund managers, that way it's easy for you, as an amateur, to keep track. A good example is the uranium prospecting sector on the TSX Venture. Many fund managers won't touch uranium as many people think it's bad and evil despite investing heavily in oil and coal which is, in my opinion, far more harmful.
1) Don't let your emotions control your decisions - think with your brain NOT your heart.
2) If you have money invested elsewhere (such as mutual funds etc...) where it's being professionally managed and the risk spread across various sectors then consider investing in a small sector that's not generally looked at by fund managers, that way it's easy for you, as an amateur, to keep track. A good example is the uranium prospecting sector on the TSX Venture. Many fund managers won't touch uranium as many people think it's bad and evil despite investing heavily in oil and coal which is, in my opinion, far more harmful.
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Canus Chinookus
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Research any company you're going to invest in before you spend a penny on their stocks. Don't just look at what their financial situation is like now, look at what it's been like in the last several years, and look at what they have planned for the future. See if the insiders at the company are willing to invest in the company. If the people running the show aren't willing to put their money on the line, do you think it's a good idea for you to do so?
And like Dockjock said, read up on how to do it before you do anything.
And like Dockjock said, read up on how to do it before you do anything.
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I_Drive_Planes
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Buy the book: Jim Cramer's Real Money, by James J. Cramer. Read it, then read it again, then begin investing. Cramer also has a great show on CNBC called Mad Money, its very entertaining, I wouldn't necessarily go with his stock picks per se (he tends to jump the gun a little bit) but listen to his principles closely.
The biggest thing is homework, homework, homework. Jim cramer says that you must do 1 hour homework per week per stock that you own. Learn to read the balance sheets, learn about the market that the company that you want to buy is in, and after you buy keep your finger very closely on the pulse.
Mining companies can make a lot of money, but double the ammount of homework that you do (finance.yahoo.ca, morningstar.ca and .com and even Action Direct has some excellent tools) on one. The mining industry is extremely volatile, one denied permit, or dry vein, or a little downturn in prices can sink a mining stock in a heartbeat. The only mining stock I presently own is Major Drilling Inc. I bought it in November at 16.75, its now 20.20 and still rising (up .49 on friday alone). By doing my homework I found that they not only have interests in mines themselves, but they also make drill bits (diversification = security). This one still needs to be watched like a hawk though because of the nature of the business.
As Cramer says: Bulls make money, bears make money, pigs get slaughtered!
Planes
The biggest thing is homework, homework, homework. Jim cramer says that you must do 1 hour homework per week per stock that you own. Learn to read the balance sheets, learn about the market that the company that you want to buy is in, and after you buy keep your finger very closely on the pulse.
Mining companies can make a lot of money, but double the ammount of homework that you do (finance.yahoo.ca, morningstar.ca and .com and even Action Direct has some excellent tools) on one. The mining industry is extremely volatile, one denied permit, or dry vein, or a little downturn in prices can sink a mining stock in a heartbeat. The only mining stock I presently own is Major Drilling Inc. I bought it in November at 16.75, its now 20.20 and still rising (up .49 on friday alone). By doing my homework I found that they not only have interests in mines themselves, but they also make drill bits (diversification = security). This one still needs to be watched like a hawk though because of the nature of the business.
As Cramer says: Bulls make money, bears make money, pigs get slaughtered!
Planes
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C-150Pilot
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I_Drive_Planes
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A good stock to look into is Tahera diamond (TAH) on the TSX. Also Pure Gold (PUG) is a fun one if you have some money your willing to gamble buy and sell daily with that one.
The best advice I have ever been given is to buy the 4 major banks evenly, they average around 17% over the last 30 years - very good safe return on that one. I would roll that one into an RRSP for added benifits.
Cheers.
The best advice I have ever been given is to buy the 4 major banks evenly, they average around 17% over the last 30 years - very good safe return on that one. I would roll that one into an RRSP for added benifits.
Cheers.
The feet you step on today might be attached to the ass you're kissing tomorrow.
Chase lifestyle not metal.
Chase lifestyle not metal.
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Driving Rain
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Booze and weapons of mass destruction companies pay real well when the economy hits a recession for some strange reason. 
Basically all the sin stuff pays well.
Basically all the sin stuff pays well.
Last edited by Driving Rain on Sat Jan 21, 2006 11:56 pm, edited 1 time in total.
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MaximumSausage
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All the above advice is good but no one really warned you of the side effects. Some people do it for a living. They meet with executives and accountants, analyse the company inside out, sometimes they audit them in order to make a decision of whether or not to buy, and for how much and how long.
The same people that do this for a living, get paid north of $1M still end up making the wrong decision half the time. There are brilliant studies and statistics to demonstrate this.
Stocks are "safe" because when properly purchased, diversified and held for longer than 15 years, they average a 10% return. That doesn't mean that if you buy AC, WJ and a Gold Mine, you'll be earning 10% a year. In fact, one might suggest that with such an investment, in 10 years, you might loose over 70% of your assets.
There are different types of Stocks as well as investments. What is your Risk tolerance? Could you wake up tomorrow to 0$ and still enjoy life? Or would you prefer to know that your money is safely sitting in an account?
Do you want rapid growth or steady income? All these questions and more need to be answered thoroughly before you start burning your money away.
I recommend, if you haven't looked into it, some reading. Even perhaps a course (IFIC, CSC).
I would definetly start with a balanced portfolio. As KAG said, maybe put 30% of your money in the Big4. split it up evenly and let it sit there. The other 30% to 40%, put it in Mutual/Hedge Funds. Don't buy Funds of funds (usually the ones advertised on TV...
)
The remaining 30%, play around with stocks. Pick 3 to 5 industries that are not related. Look into good companies you'd like to own shares of. There is nothing wrong with sticking to Blue Chip for a while. Some actually have very healthy dividents. If you're more of a risk taker, than consider Venture or Small Cap.
Talk to a Financial Adviser before. Taxes will eat most of your profits anyway. So learn how to play around fire without getting burned!
Good Luck!
Yoyo
The same people that do this for a living, get paid north of $1M still end up making the wrong decision half the time. There are brilliant studies and statistics to demonstrate this.
Stocks are "safe" because when properly purchased, diversified and held for longer than 15 years, they average a 10% return. That doesn't mean that if you buy AC, WJ and a Gold Mine, you'll be earning 10% a year. In fact, one might suggest that with such an investment, in 10 years, you might loose over 70% of your assets.
There are different types of Stocks as well as investments. What is your Risk tolerance? Could you wake up tomorrow to 0$ and still enjoy life? Or would you prefer to know that your money is safely sitting in an account?
Do you want rapid growth or steady income? All these questions and more need to be answered thoroughly before you start burning your money away.
I recommend, if you haven't looked into it, some reading. Even perhaps a course (IFIC, CSC).
I would definetly start with a balanced portfolio. As KAG said, maybe put 30% of your money in the Big4. split it up evenly and let it sit there. The other 30% to 40%, put it in Mutual/Hedge Funds. Don't buy Funds of funds (usually the ones advertised on TV...
) The remaining 30%, play around with stocks. Pick 3 to 5 industries that are not related. Look into good companies you'd like to own shares of. There is nothing wrong with sticking to Blue Chip for a while. Some actually have very healthy dividents. If you're more of a risk taker, than consider Venture or Small Cap.
Talk to a Financial Adviser before. Taxes will eat most of your profits anyway. So learn how to play around fire without getting burned!
Good Luck!
Yoyo
In the business world, the rearview mirror is always clearer than the windshield...W. Buffett-
C-150Pilot
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Anyone ever ventured into the 'Autosurf' markets online? I am an extremely conservative character and it took me months of personal research and preparation before I overcame my skepticism and decided to get involved. I started with some in November and have made triple my investments already. I would highly advise before getting involved to do your homework and read, read, read. Find out the fundamentals of how these autosurfs work and learn how to pick and time the good ones and avoid the scams (ponzi like schemes). If anyone cares, PM me and I can offer some links to great sites that provide good info. and teach the fundamentals before you get out there and try. I can also refer you to a few that I am currently involved in now. ROI's are much higher than even your average 'bullish' stock on the TSX and so far I've personally outdone all of my picks in my portfolio with this alternative market.
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Dust Devil
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Obviously someone who has never been burned by the oil patch. Oil is good and I know people recently who have made a mint in it, but you gotta know when to get out because when oil tanks it tanks fast! Like a matter of hours fast!MaximumSausage wrote:It doesn't get any safer then OIL. JMHO
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Dust Devil
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double post
Last edited by Dust Devil on Sun Jan 22, 2006 10:31 pm, edited 1 time in total.
http://www.spamstocktracker.com/C-150Pilot wrote:Penny stocks are looking very attractive...and scary.
dividends
go with stocks that " pay " you for your investment !
right now the market has gained alot and it's getting toppy , make sure you invest in PROFITABLE companies as many do not even earn a penny yet !
you may also be priced out of these OIL stocks as you typically have to buy 100 shares minimum ; or else pay a small surcharge for lesser amounts .
maybe a CERTAIN F/O for westjet who was dorky about his mileage when he flew MU-2's will add more advice as he was really into this stuff and i'm sure he has made more than his salary flying lately !
btw , WJ is not a BUY until it's lower than $10 !
right now the market has gained alot and it's getting toppy , make sure you invest in PROFITABLE companies as many do not even earn a penny yet !
you may also be priced out of these OIL stocks as you typically have to buy 100 shares minimum ; or else pay a small surcharge for lesser amounts .
maybe a CERTAIN F/O for westjet who was dorky about his mileage when he flew MU-2's will add more advice as he was really into this stuff and i'm sure he has made more than his salary flying lately !
btw , WJ is not a BUY until it's lower than $10 !
C-150 Pilot, congratulations on entering the exciting world of personal investing. You can have a lot of fun at it and like what has already been mentioned, make and lose a lot of money.
For a beginner, don't go jumping into penny stocks right away. But read and listen to what other have, then follow them. Another good piece of advice is to take stock tips with a grain of salt. A tip though is a good place to start doing some due diligence. You will find a lot of stocks develop a trend or trading pattern. Of course that can certainly change at the blink of an eye depending on news. Remember never ever fall in love with a stock. It is only a piece of paper so don't feel bad about selling to cut your losses or to take some profit. Pay attention to what the sectors are doing. You can have a great stock with great potential but because the sector it is in happens to be out of flavour, the stock price will get dragged down.
I would suggest you start with a few solid stocks. No doubt gold and oil are the hot sectos right now. Goldcorp is a solid one that pays a monthly dividend. Lots of upside with them yet. Diversification has been mentioned which is good but be careful you don't end up like a lot of mutual funds. They are so diversified that they never gain anything because as one sector is up the others are down. As a private investor you should never hold stock in more than a few companies. You will quickly realize that having a few shares in many companies will get you nowhere. You are better off to hold lots of shares in a few solid companies.
Well got to run and unload some Tahera as it is up to .70 cents again.
For a beginner, don't go jumping into penny stocks right away. But read and listen to what other have, then follow them. Another good piece of advice is to take stock tips with a grain of salt. A tip though is a good place to start doing some due diligence. You will find a lot of stocks develop a trend or trading pattern. Of course that can certainly change at the blink of an eye depending on news. Remember never ever fall in love with a stock. It is only a piece of paper so don't feel bad about selling to cut your losses or to take some profit. Pay attention to what the sectors are doing. You can have a great stock with great potential but because the sector it is in happens to be out of flavour, the stock price will get dragged down.
I would suggest you start with a few solid stocks. No doubt gold and oil are the hot sectos right now. Goldcorp is a solid one that pays a monthly dividend. Lots of upside with them yet. Diversification has been mentioned which is good but be careful you don't end up like a lot of mutual funds. They are so diversified that they never gain anything because as one sector is up the others are down. As a private investor you should never hold stock in more than a few companies. You will quickly realize that having a few shares in many companies will get you nowhere. You are better off to hold lots of shares in a few solid companies.
Well got to run and unload some Tahera as it is up to .70 cents again.
You Can Love An Airplane All You Want, But Remember, It Will Never Love You Back!
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C-150Pilot
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Well thats sucks!!
RBC just called to say they cancelled my Action Direct investement account. Those damn 18 year old restrictions.......!
Pretty sad to know a 16 year old can be a pilot but can't invest.
RBC just called to say they cancelled my Action Direct investement account. Those damn 18 year old restrictions.......!
Pretty sad to know a 16 year old can be a pilot but can't invest.
Fly it until the last piece stops moving
"I give your landing a 9...on the Richter scale."
"I give your landing a 9...on the Richter scale."
Unfortunately you will find that with any of the brokerage firms. Maybe you can convince one of your parents to put the account in their name and give you access to it. If they agree to it make sure you keep a good paper trail, ie transfers from your account to Action Direct, stock trades etc. otherwise the taxman could come after your parent for the taxes owing on any capitol gains that you generate . My son and I have been doing this for a few years. We just print copies of any bank transactions and keep notes on what stocks are his etc. So far no problems!
You Can Love An Airplane All You Want, But Remember, It Will Never Love You Back!
C-150
I THINK this is legal with the securities and exchange commission (Dep of finance??)…
Either incorporate or set up a trust, just something simple wont be more than a few hundred at a reasonable layer…
Then open the RBC account under that entity….. another advantage is to have your assets under the trust, then god forbid you ever get sued, Or married/divorced your TRUST gets to keep everything… No sorry hunnybunny, Really I DON’T own the house, I have $45 to my name, really honest this piece of paper says so……
Plus (granted being a pilot this isn’t THAT important to us,) but trusts are VERY nice way of getting around the tax man… and if your young now is the time to have this stuff up and running before you end up with any liability…
Playing penny stocks is just like Vegas, except you don’t get free drinks….
I THINK this is legal with the securities and exchange commission (Dep of finance??)…
Either incorporate or set up a trust, just something simple wont be more than a few hundred at a reasonable layer…
Then open the RBC account under that entity….. another advantage is to have your assets under the trust, then god forbid you ever get sued, Or married/divorced your TRUST gets to keep everything… No sorry hunnybunny, Really I DON’T own the house, I have $45 to my name, really honest this piece of paper says so……
Plus (granted being a pilot this isn’t THAT important to us,) but trusts are VERY nice way of getting around the tax man… and if your young now is the time to have this stuff up and running before you end up with any liability…
Playing penny stocks is just like Vegas, except you don’t get free drinks….
