I want to learn how to make investments in the stock market to grow my portfolio. I already have a 401 (K) that's being taken care of by a company. However, I would like to learn about the stock market and buy and sell stocks under my control. I am still learning and it is so confusing. I know when the stock market is down, it is a good time to buy shares at low prices. Which companies are good to invest in? Any tips would be appreciated!
my recommendation as well as my brother's (he's a banker) recommendation and bunch of financial experts' recommendations? don't do it. if you had to ask what companies to invest in, it's a sign that you should not even bother because it's the fastest way to lose your money. period.
you have a much better chance of making $$$ at casinos than at stock markets. simply leave it to professionals to play with stock markets unless you want to watch stock markets and play with it as a full-time job. picking stocks requires critical analysis, not based on "feel good" emotion or rolling a dice. you will quickly realize it's incredibly stressful. that's why I don't do it and neither does my brother.
since you've got 401k covered... then you can do a typical portfolio that always work well - get either Fidelity or Charles Schwab account for Roth IRA (maximum $6,000 a year), mutual funds (index funds, S&P 500, etc) and Series I Savings Bond (interest rate is crazy which is good!!!). just set it and forget about it. this is a 20-30 years long-term investment - the Warren Buffet rule. Vanguard has fees and it's usually best for those with $$$$$
You can go with the Bogle rule or Swensen rule for asset allocation -
100 - your age = % of stocks to own and the remaining amount for bonds. For example, if you're 40 years old... then 100 - 40 = 60% stock, 40% bonds. The younger you are, the riskier investments you can make in stocks. high risk, high returns.
30% Domestic Equity
15% International Equity
15% inflation-protected treasuries
15% US Treasuries
15% Real Estate
10% Emerging Markets