Investing in Stock market

[Zak]

As I am facing some not so serious financial short comings. I am now thinking about investing a small portion of my money in stock market, which I think is a long process and not an overnight success. But anyway, I don't care. I think for the long term. I may make it or lose money.

The thing is, I want to start it small. Let's say this months I only invest 20 to 50$. Do you guys think it somehow will work, although I am not looking for a quick profit or something. I just want to be busy with something while at the same time earning a buck or two. Know what I am saying. That is it. I may make it some day. 

Do you guys have some experience with stock market? If yes, can you please share some insights? Thanks

[7thLetter]

The US stock market is being manipulated right now by the Fed. All they're doing is keeping the market propped up with printed money, which is unsustainable, they can only print money for so long. Once they stop propping up the market, then a huge crash is expected, most likely around the time of the elections, maybe sooner.

Edit: But even if the stock market continues to go up, then investing $20-$50 this month will only get you like 10% a year. 10% a year with $50 is only $5 a year. But with the compound effect it'll be $5 this year, $5.5 next year, and so on.

Follow this Youtube channel and watch this video:

 

Edited July 6, 2020 by 7thLetter

[Average Investor]

I would highly recommend reading the intelligent investor and starting from there. There is a lot of good information out there. I would suggest setting up a roth IRA through a broker like Vanguard or similar. You can invest into ETFs on a regular schedule without looking at the market or knowing much. With your plan you would be just dollar cost averaging and buying in at the same time. I am pretty big on the idea of time in the market rather than timing the market. Now if something is a great deal I will buy it and add it into my portfolio specifically. 

It is very important that you use an IRA for your assets. You can grow your money tax free if you follow the age guide lines for it. Roth IRA for example would be 59.5 until you can withdraw it assuming you're in the US. 

Also, just any money in and the sooner the better is fine. You can become a millionaire investing $50 a month if you pick good enough investments. The thing with the market is you don't know what will happen. I personally like to dollar cost averaging and have a long term horizon. If the market or a specific blue chip stock I like takes a hard hit that I believe it will recover long term I put in more cash than normal and buy up the deal. It takes a considerable amount more time and energy to research and find good stocks. You really don't have to be an expert to buy ETFs that are broad and give you a good amount of action in the market.  

In the future as you grow your wealth it would be worth considering to invest in other assets and be well diversified. Also, consider investing the money into your own business, or yourself first if you are not already. However, I think it is wise to put anything in the market as you can. You're likely not going to look back in 40 years and regret tossing a few hundred bucks in during this time.