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    Tuesday, June 5, 2018

    Stock Market - Rewrite on my advice to newcomers: My take on how to start investing

    Stock Market - Rewrite on my advice to newcomers: My take on how to start investing


    Rewrite on my advice to newcomers: My take on how to start investing

    Posted: 05 Jun 2018 12:56 PM PDT

    Hello! Welcome to /r/StockMarket

    Welcome to the fantastic world of investing where there is infinite to learn and infinite to go. The problem with giving advice on finance is that there is not a proven system that works. You need to find what works for you and work with that. First of all, I would recommend searching around on the financial subreddits for new people posts and reading them. The question has been asked thousands of times, and there are tons of amazing answers. Otherwise, here is my short-take.

    In finance you need to read. That is how you learn, how you get information, how you find out new developments in the market. All of the information. Books, news, financial statements, press releases and earning calls. Read everything. You will find hundreds of words you don't understand, so look them up (investopedia has a majority of them). In the beginning you will struggle, however, as time goes by, you will start to understand. If you do not like reading, learn to like it. There is no way around this. If you find yourself investing without reading tons, you are going to lose.

    Reading
    I recommend reading the 10Q document (hard), conference call transcript (easier) and the shareholders presentation (easiest) of your favorite public corporation. You can find it on their respective investor relations page. Other than that, without exception, anyone attempting to understand the huge complex thing called the stock market, I heavily recommend reading "One up on Wall Street" by Peter Lynch. It is a true masterpiece, and it is very easy for a newbie to read. Enjoyable, teaching and fantastic. After that I recommend The little book on common Sense Investing by John Bogle (best book on funds) and the intelligent investor by Ben Graham ("thick" but king. People like recommending it as the first book, but I think they are stupid).

    Doing
    Then after you have started learning, it is time to start doing. As you start out, you should consider two things. Indexing or stock picking. 90% of people should own indexes, but people truly interested should look to specific stocks.

    Exchange Traded Funds
    These are ETFs like $VOO, $VTI, $VWO and $VOOG, and is a way to take on the least amount of risk while still gaining along with the market. You get a wide basket of stocks, focusing on things like the S&P500 ($VOO), which is an index of large (minimum 6.1 billion USD) US companies. Historically, you can expect 7% annual gain here on average (some years might be up much more, or even in the red). That's realistic. Anything offering much more than that without risk has tons of risk without disclosing it, per definition. $VOOG indexes growth companies, focusing less on the giants and more on the up and coming. $VWO focuses on emerging markets, getting places like brazil, russia and all over asia. Indexing is by far the best choice, and will very often gain you a steady growth. If you disagree with this you must get John Bogles take on it, the founder and former CEO of Vanguard. Best way to do this is in the book recommended above. The final and great choice is $VTI, which is the global basket which contains the market as a whole. It will never be a mistake, even if performance may vary.

    Stocks
    Buying individual companies through common stock is much harder, and the process is really tough. To put yourself into that, you need to be ready to put in some serious work, and the process is much more complicated than I could explain here. Here is a Due Diligence (DD for short) checklist to evaluate a company. That said, it is simplified to the point of worthlessness really, while being a start. Before you make a decision if you should own a company or not, you must know these things:

    • What does the company do?
      How do they earn money from that?
      What is the edge or competitive advantage of the company?
      What prevents someone else to just out-compete them by spending more money?

    • How are they priced now?
      What does their stock costs, and what does that make their valuation (Stock price * Number of shares = Market cap (company market value))
      What does that market value imply?
      If they are high priced, high growth & returns are expected. Is it likely that they will complete that or even do better? This is what would move the stock price.

    • What are the company's competitors?
      What makes this company a better pick than the competitors?

    • Understand their balance sheet!
      What is their net cash?
      How leveraged are they?
      Is inventory increasing or decreasing (inventory increasing faster than sales is a horrible sign)?
      How solvent are they?
      What's their book value?
      What do these numbers actually imply about the company?

    • Think about growth and developments! How does their best case scenario look? Same for bad scenario, good scenario, worst case scenario and realistic scenario. How likely would you say each scenario is? Try to find facts to back your hypothesis up!

    Questionaire

    Lastly, and honestly most importantly, here is a list of things you should ALWAYS be able to answer before buying a security, equity or derivative:

    • Why am I getting this instead of an index? Where is the upside?
    • If the stock goes up, what action do I take? When do I sell? At what price or % gain.
    • If the stock goes down, when do I sell? At what % loss or a price.
    • What risks are there? How does the worst case realistic scenario look like?
    • Why am I making this investment right now? Is there a better time?
    • What exactly am I buying?

    And finally, always, without exception, perform your own due diligence. Don't take advice from other people without understanding the situation yourself. I never give advice what to do, I make it a rule to just spread my viewpoint & strategy. If you have to ask questions, you should not own the equity. Ask about what you do not own. If you have to ask questions about an equity you already own, you have messed up. Try to not mess up again.

    Oh. Remember, you will get cocky. You will get greedy. We all do. Everyone thinks they can do it all and make the cash rain. WHEN that happens (not if), make sure you follow your system, because without the system, you will lose over time.

    Welcome to the market. You can find links to my other write-ups posted on this sub collected here.

    /u/lykosen11

    submitted by /u/lykosen11
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    What companies (not stocks!) do you like?

    Posted: 05 Jun 2018 07:55 PM PDT

    Ignore stock price - present, past or predictions. What companies do you like, you think make great products and or services and have a strong future. Which ones you don't think they will make it on the long run? Please explain why you think so.

    submitted by /u/VeeMeeVee
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    Just found out Merrill Edge blocks certain stocks... what do I do now?

    Posted: 05 Jun 2018 02:39 AM PDT

    I have a few investments that I've had for a while, and a few weeks ago began studying again and really deciding to focus on growing my portfolio. However, after reviewing $ROBO for a bit I decided to buy a few shares... but I got this:

    "This security is currently blocked and unavailable for trading."

    Apparently after doing a bit of research, Merrill Edge BLOCKS certain stocks that you can buy... fuck.

    What do I do now?

    I downloaded the Robinhood app and really like it, I could do that. But then what... move all my shares from Merrill Edge over to Robinhood? Or leave them there and only buy the new ones I want to buy (ROBO) on Robinhood?

    Are there other websites / apps to use to buy stocks that don't restrict you?

    submitted by /u/whatwouldnietzschedo
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    I want to learn about Stocks.

    Posted: 05 Jun 2018 10:46 AM PDT

    I'm 17 years old and don't have much knowledge on stocks but I want to learn for future use. Where do I start? How do they work? Tips and warnings before going in?

    submitted by /u/Deep_CFC
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    (6/5) - Tuesday's Stock Movers & News

    Posted: 05 Jun 2018 06:54 AM PDT

    Good morning traders of the r/StockMarket sub! Welcome to Tuesday! Haven't done one of these in here in a long time. Unfortunately my summer schedule doesn't allow for much free time in the mornings anymore. :P Anyway, here are your stock movers & news this morning-


    (CLICK HERE TO VIEW THE FULL SOURCE!)

    Frontrunning: June 5th

    • Eight states will hold primaries today, with perhaps the most important contests in California where the top two most popular candidates, regardless of their party, will advance to the general election. Other contests include Iowa and Alabama. (WSJ)
    • Sources tell Reuters that Mexico will impose a 20 percent tariff on U.S. pork imports. It was the first time the country provided details of its retaliatory measures to President Donald Trump's tariffs on steel and aluminum. (Reuters)
    • Trump rescinded the Super Bowl-winning Philadelphia Eagles' invitation to the White House, saying last night that they are "unable" to attend because they "disagree with their president" on the protests that saw many NFL players kneeling for the National Anthem. (CNBC)
    • The Justice Department appealed a federal court ruling that said Trump was violating the constitutional rights of individuals he blocked from viewing his Twitter feed. Trump has said he uses his tweets as a way to get around the mainstream media. (Politico)
    • Trump's legal team is preparing for the possibility of a presidential interview, or a legally precarious subpoena battle with Special Counsel Robert Mueller. T* hat comes despite Trump declaring he has powers to blunt the special counsel probe. (Washington Post)
    • Most White House staff on Mueller: 'I know nothing' (Axios)
    • Fact check: Was Mueller's appointment 'unconstitutional'? (FactCheck)
    • Paul Manafort, who has been indicted by Special Counsel Robert Mueller, attempted to tamper with potential witnesses, Mueller said in a filing. Manafort apparently used an encrypted messaging application to try to reach certain witnesses. (CNBC & Reuters)
    • Former President Bill Clinton, in an interview with NBC "Today" host Craig Melvin, said that he doesn't owe an apology to Monica Lewinsky, the woman with whom he had an infamous affair when she was White House intern.
    • Swiss voters go to the polls Sunday to decide whether the country should switch to a so-called sovereign money system. Supporters of the initiative say approving the measure would make the financial system safer by preventing bankers from recklessly lending. (CNBC)
    • Italy's populists are on a roll as coalition looks to pass confidence votes (CNBC)
    • A river of lava in Hawaii swallowed about three dozens more homes, officials said. All but a few of the estimated 500 inhabitants of Kapoho and the adjacent Vacationland development are now believed to have fled their homes. (Reuters)
    • Elon Musk takes the stage at Tesla's annual shareholder meeting this evening with the gap between the fervor of its fans and the doubts of its skeptics as wide as it's ever been. Here's what to expect. (Fortune)
    • Apple (AAPL) unveiled iOS 12, the newest version of its software, during WWDC 2018. The software update will include a number of new features, Apple said, including Siri "Shortcuts," much better notifications and FaceTime group calling. (CNBC)

    STOCK FUTURES NOW:

    (CLICK HERE FOR STOCK FUTURES CHARTS!)

    YESTERDAY'S MARKET HEAT MAP:

    (CLICK HERE FOR YESTERDAY'S MARKET HEAT MAP!)

    YESTERDAY'S S&P SECTORS:

    (CLICK HERE FOR YESTERDAY'S S&P SECTORS CHART!)

    TODAY'S ECONOMIC CALENDAR:

    (CLICK HERE FOR TODAY'S ECONOMIC CALENDAR!)

    THIS WEEK'S ECONOMIC CALENDAR:

    (CLICK HERE FOR THIS WEEK'S ECONOMIC CALENDAR!)

    THIS WEEK'S IPO'S:

    (CLICK HERE FOR THIS WEEK'S IPO'S!)

    THIS WEEK'S EARNINGS CALENDAR:

    ($YY $PANW $AVGO $DVMT $SIG $THO $OKTA $FIVE $DLTH $CLDR $HDS $AMBA $NAV $HQY $SJM $KNOP $COUP $FCEL $MTN $GWRE$HOME $OLLI $FRAN $GIIi $CPST $GCO $CSWC $VRA $FGP $ASNA $HLNE $NX $ROAD $MDB $SFIX $COO $SCWX $UNFI $SEAC $NCS $ZUMZ)

    (CLICK HERE FOR THIS WEEK'S EARNINGS CALENDAR!)

    THIS MORNING'S PRE-MARKET EARNINGS CALENDAR:

    ($DLTH $NAV $HDS $HQY $COUP $GIII $FRAN $GCO $ASNA $CSWC $NX $SMAR $TEDU)

    (CLICK HERE FOR THIS MORNING'S EARNINGS CALENDAR!)

    EARNINGS RELEASES BEFORE THE OPEN TODAY:

    (CLICK HERE FOR THIS MORNING'S EARNINGS RELEASES!)

    EARNINGS RELEASES AFTER THE CLOSE TODAY:

    (CLICK HERE FOR THIS AFTERNOON'S EARNINGS RELEASES!)

    THIS MORNING'S ANALYST UPGRADES/DOWNGRADES:

    (CLICK HERE FOR THIS MORNING'S UPGRADES/DOWNGRADES!)

    THIS MORNING'S INSIDER TRADING FILINGS:

    (CLICK HERE FOR THIS MORNING'S INSIDER TRADING FILINGS!)

    TODAY'S DIVIDEND CALENDAR:

    (CLICK HERE FOR TODAY'S DIVIDEND CALENDAR LINK!)

    THIS MORNING'S MOST ACTIVE TRENDING DISCUSSIONS:

    • TWTR
    • VSTM
    • YY
    • FSLR
    • GIII
    • GLUU
    • MYL
    • NAV
    • COOL
    • COUP
    • FRAN
    • NWL
    • TDOC
    • TGTX
    • TEDU
    • CCL
    • SOGO
    • DLTH
    • RCL
    • CALM
    • HOFT
    • JKS
    • HDS
    • SMAR
    • BB
    • NCLH
    • HQY
    • GCO
    • MSBI
    • DCPH

    THIS MORNING'S STOCK NEWS MOVERS:

    (source: cnbc.com)

    Starbucks — Shares of Starbucks fell more than 1 percent in the premarket after the company announced Howard Schultz is stepping down as executive chairman, effective June 26. The move by Schultz has sparked speculation about a possible future in politics, having been a supporter of former President Barack Obama and former presidential candidate Hillary Clinton.

    STOCK SYMBOL: SBUX

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    Twitter — The social media company's stock rose more than 4 percent before the bell on news it will replace Monsanto in the S&P 500 index. The change will go into effect before the open on Thursday.

    STOCK SYMBOL: TWTR

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    Apple — The tech giant announced several new features and upgrades to its product line at its annual developers conference, including a new mobile operating system. The new system, called iOS 12, makes keyboards and cameras on iPhones and iPads respond faster, and includes a set of tools aimed at fighting tech addiction.

    STOCK SYMBOL: AAPL

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    Mylan — Mylan shares rose more than 4 percent in the premarket after the company, along with India's Biocon, received Food and Drug Administration approval for Fulphila, a biosimilar drug to Neulasta, which aims at reducing the risk of infections during cancer treatment.

    STOCK SYMBOL: MYL

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    Facebook, Alphabet — Facebook and Alphabet's Google are being sued by Washington state for an alleged violation of state campaign law. State Attorney General Bob Ferguson said the companies failed to disclose ad spending in state elections since 2013.

    STOCK SYMBOL: FB

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    STOCK SYMBOL: GOOGL

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    Take-Two Interactive — BMO Capital Markets downgraded the stock to "market perform" from "outperform," citing a potential slowdown in key gaming franchises like NBA 2K and Grand Theft Auto. "We are concerned investor expectations for the Red Dead Redemption 2 release could be overly optimistic," said the analysts, who also cut their price target on the stock to $116 a share from $135 a share.

    STOCK SYMBOL: TTWO

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    Palo Alto Networks — Palo Alto Networks reported adjusted earnings per share and revenue for fiscal third quarter that topped analysts' expectations. The company also named Nikesh Arora, a former executive at Google and SoftBank, as its new CEO.

    STOCK SYMBOL: PANW

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    Discovery — Analysts at MKM Partners upgraded Discovery to "buy" from "neutral," citing an attractive valuation and potential for growth, among other factors. "In our view, Discovery's shares do not adequately reflect the quality of its multi-year growth drivers and its potential upside opportunities," the analysts said.

    STOCK SYMBOL: DISCA

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    Amazon — Sources told CNBC-TV18 that the e-commerce giant will increase its investment in India to $7 billion from $5 billion. "Amazon is betting big on the India market," one of the sources said.

    STOCK SYMBOL: AMZN

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    FULL DISCLOSURE:

    /u/bigbear0083 has no positions in any stocks mentioned. Reddit, moderators, and the author do not advise making investment decisions based on discussion in these posts. Analysis is not subject to validation and users take action at their own risk. /u/bigbear0083 is an admin at the financial forums Stockaholics.net where this content was originally posted.


    DISCUSS!

    What is on everyone's radar for today's trading day ahead here at r/StockMarket?


    I hope you all have an excellent trading day ahead today on this Tuesday, June 5th, 2018! :)

    submitted by /u/bigbear0083
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    Just sold my UPRO and TQQQ holdings.

    Posted: 05 Jun 2018 04:10 PM PDT

    Made a 432% return since buying in January of '14. I think the markets will go higher, but I wanted to lock in my profits before the red sets in.

    I'll be buying at the start of our next economic recovery, just as Ive done since the 90's.

    submitted by /u/life-of-TT
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    TVIX 06/08/2018 10:1 Reverse split??

    Posted: 05 Jun 2018 06:47 PM PDT

    Guys, I know you're not supposed to invest in TVIX for more than a day/week. I read the prospectus and I understand that it's subject to intense beta slippage and management fees, and theta because 30, 60 day rolling futures.

    But, I'm a degenerate gambler that thinks TVIX should mean revert to 10 at current basis with current variations of geopolitical tensions, interest rate risk, student debt bubble and passive investing bubble. I have been bagholding 330 shares at cost basis of 7.12

    I know I shouldn't be bagholding this but as mentioned above I'm dumb, and I also subscribe to r/wsb, so yes, I'm on the spectrum

    Is this 10:1 split gonna rek the whole investment and allow Credit Swindler to extract the rest of the investment? Should I be selling out to avoid further slippage?

    My personal opinion is that Volatility should revert to the mean in summer months.

    Thank you for your time and I appreciate the feedback

    Disclosure: I am long TVIX, TVIZ

    submitted by /u/BlackHawk_XR
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    iQIYI

    Posted: 05 Jun 2018 08:33 AM PDT

    $IQ known as the "Chinese Netflix," is this a solid buy for the long term? Down about 2% today seems like a good entry point, and gives my portfolio exposure to the Chinese markets. Thoughts?

    Edit: Thanks boys got 50 shares at 28.65!

    submitted by /u/sweetshot13
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    Options question TWX Jul 20 chain

    Posted: 05 Jun 2018 11:52 AM PDT

    Whether or not the DOJ wins or loses in the TWX ATT merger TWX is going to go up or down drastically. If the judge makes his ruling this month then I would think the July options are the ones to watch. The $85 strike put is trading at $1.40 while the $105 strike call is $0.21. Why wouldn't the gap be closer? There should be money on either side, right? There isn't even a mark at the $115 call which is what the ATT purchase price is.

    Still learning, thanks for the advice.

    submitted by /u/knightnorth
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    Starbucks Dropping On News; Buying Opportunity?

    Posted: 05 Jun 2018 05:52 AM PDT

    (CNBC)-Shares of Starbucks fell more than 1 percent in the premarket after the company announced Howard Schultz is stepping down as executive chairman, effective June 26. The move by Schultz has sparked speculation about a possible future in politics, having been a supporter of former President Barack Obama and former presidential candidate Hillary Clinton.

    Now being a value investor I have been on a off about this compnay for a while now. They have solid fundimentals, large ROE, low debt, and overall a large moat. Now the largest question I have is how far will this stock fall, if it does. If a large enough margin of safety presents itself, this could be a nice opportunity.

    What do you think? Are you buying?

    submitted by /u/sisumoney
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    Newbie questions

    Posted: 05 Jun 2018 01:28 PM PDT

    Im just getting started and was wondering if robinhood would be a good way to start.

    Im looking to start off small, only a couple hundred $'s. Have more i would like to invest in the near future. The wife is just skeptical right now. And looking for medium to long term. What are some lower stocks i could watch grow? Just looking for a little guidance.

    submitted by /u/waynefiend
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    Newbie who needs help. From the UK.

    Posted: 05 Jun 2018 04:41 AM PDT

    Hi, I'm looking to invest in Canadian and American stocks from the UK. I'm pretty terrified of the pricing structure for most online sites, I have a lack of understanding and am obviously reluctant to end up spending more than is necessary. Most sites seem to reward you for constant trading but that's not what i'm looking to do, I would rather invest in a select few companies for a long period of time.

    If anyone has any links to good sites or advice that would be great, thanks :)

    submitted by /u/DungeonDan9
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