The other day, J. Money posted about how he’s planning to start buying stocks again. I commented that buying stocks scared me a bit, but it got me to thinking. I’m not in a position to start heavily investing in the stock market, but I think it might be a good idea to take a little bit of money, do some research, and start buying stocks.
I didn’t put much thought into it, and then I was reading Smart Money magazine on the way to work (got a free subscription, so I thought I’d try it out), and I started thinking about stocks again. But I didn’t know how much money I wanted to invest.
Turns out I planned this without thinking about it. When budgeting for my Dollar a Day plan in YNAB, I put the funds into the “Investing” category. I’m not sure why I didn’t re-name this category, as all my other categories are personalized, but for some reason, this money was termed “investments.” I was pondering earlier this year what the best use of this money would be, and I think I have the answer. I’m going to take about $350 of that money and put it into stocks. What stocks? Not sure yet. There will be much research to be done.
I won’t get rich on this plan, and I’m sure I’ll lose some money, but if nothing else, it’s a good learning experience. It seems like a good time to buy, with the market low, and I’m not looking for a get rich quick scheme, but rather a long-term investment plan, so here goes nothing!
Definitely read “A Random Walk Down Wall Street” by Burton Malkiel. There are many philosophies for investing out there. I favor Modern Portfolio Theory vs Technical Analysis (forecasting through charts).
I say we turn the DC PF blogger happy hour into an investment club. What do you think? (Even if we don’t invest money, it’s a good discipline for looking at stocks.)
I think that’s a great idea. I’ve been thinking about also testing my stock picking skills using one of the virtual markets (I’m actually checking out Virtual Stock Exchange right now). Could be fun to set up a challenge for ourselves.
Yikes. You all are braver than I am! I’m sticking with my mutual/index funds.
yeah girl, let’s go get them stocks!!! i just picked up some GE the other day – my first go at it 🙂 so far i’m up a few dollars! haha…maybe you should head the club.
You can also start with different indexes if you rather be more conservative.
Wall Street is a scary world, but at least you have a fighting chance right now! If you’re interested, Investors Business Daily offers a free few weeks of website and newspaper prescriptions. They have a lot of great information.