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Discussion in 'Finance and Investment' started by nameeta26, Aug 3, 2018.
I really want to expand my knowledge to trade successfully. Please help.
You can’t beat the stock market as a lay investor. You can make returns investing in mutual funds. If you have any debt, paying that off is a far better strategy. I worked at one of the big bad IBanks before med school. I promise you that day trading or individual stock purchases is a fool’s errand.
1. Put money in low-cost index fund
2. Wait many years
Nameeta, do you want to "trade" successfully or "invest" successfully. The distinction is that trading requires very short term thinking (from a few seconds to a few days) about investment vehicles and investing requires long term thinking (years) about investing vehicles. Full disclosure: I am not a financial planner, just someone with a finance degree who enjoys reading about investments.
Trading has become very dominated by machines and algorithms, though you can still profit from it if you are advanced. If you are interested in investing, consider reading Benjamin Graham's The Intelligent Investor. This is the book that Warren Buffett credits with helping to influence his investment philosophy. To quickly distill this, you should look into putting the majority of your investments into a low cost index fund that tracks the broad markets. Vanguard is typically considered one of the lowest fee funds, and a ticker symbol of VFINX is a great place to start.
I hope this helps!
Thank you for the reply everyone. I wanted to trade but after listening to you guys I think investment would be more suitable. Please tell me more about it.
Recommend google search bogelheads forum. Go to start here on the left hand side. That's where I started learning about investing.
Step 1) If you are young in your 20s with very little investing knowledge, you cannot go wrong by putting all your money in VANGUARD TOTAL STOCK MARKET INDEX FUND and stay the course.
Step 2) Spend the next decade or so reading up on investing and planning for retirement. Then you will be ready to rebalance, tax loss harvest, and add some bells and whistle to your portfolio etc...