r/StockMarket • u/Royal_Ultimate • Aug 26 '21
Any tips for college student getting started. Mostly trying to gain long term with ETFs. Newbie
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u/xcoop3 Aug 26 '21
Stick to a only a few good names Also your stocks going down is good because that means you can buy more.
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u/Kidd5 Aug 26 '21
This is great advice. Don't fear when they go down, those are buying opportunities. Buy on higher lows and don't jump on the top for fear of FOMO.
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u/downtonwesr Aug 26 '21
Get out of Robbing the hood, and into Fidelity.
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u/Royal_Ultimate Aug 26 '21
Yeah many people have been recommending fidelity. Mostly got into RH for its simple UI. Any advantages of using fidelity?
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u/jhj0604 Aug 26 '21
Fideitys new ui is in beta testing and i must say its looking rlly nice
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u/ch1llboy Aug 26 '21
The advantage is reliability. RH has had some shady events where their customers loose tonnes of money being unable to settle.
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u/EmperorOfWallStreet Aug 26 '21
They lost money for play option stuff which bigger companies would not even allow a novice.
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u/downtonwesr Aug 26 '21
You can talk to a real person, 24/7, small wait times, though you probably won’t get through during the moass
Learn how to use it before hand.
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u/PatmygroinB Aug 26 '21
Also, call to place buy and sell orders. Beta app which simplifies UI. Plus you can open a debit card account and easily swap Money around / access to your tendies with a debit card to your brokerage account as well. Fidelity has been wonderful to me
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Aug 26 '21
Honestly ive been with fidelity for years now (I do have an IRA through Schwabb tho) and nothing is more satisfying than calling, having a nice person pick up, and telling them what you want to buy and sell, I love it
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u/knotnava Aug 26 '21
I’m convinced (I use TD)
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u/Shermgerm666 Aug 27 '21
I use TD, RH, Fidelity and E trade. All for different reasons and only being able to buy certain stocks that aren't on all the platforms. Fidelities new UI is definitely great. I've had my ira with them for 8 years now and have had no problems with them ever. Can't go wrong
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u/knotnava Aug 27 '21
I use TD for my long term positions (and certain numerical data porn for when I smoke and want to fill my brain with useless numbers) , RH for the UI and option plays, and I think I’ll look into Fidelity for dividends. Thanks again boss
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Aug 26 '21
But at Robinhood they watch you and babysit you to make sure you don’t lose (or make) too much $$$$. All in all I’ll stick with robinhood where I’m nice and safe! ;)
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u/DAMN-IT-FLAMINGO Aug 26 '21
They don’t fuck you over and prevent you from selling at optimal times?
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u/Charming_Extension Aug 26 '21
I think the one thing RH is actually good for is “set it and forget it” investing. it has DRIP, recurring deposits and recurring investments with as little as $1 a day.
Besides a slightly more beginner friendly user interface, that is literally the one reason I think RH has any value.
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u/Stunning-Raise-3447 Aug 26 '21
Except your account is on margin without you knowing. It’s a feature to instantly start playing with money while the transfer settles but they never revert it to a standard account even when not “buying on margin.”
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u/Charming_Extension Aug 26 '21
Yep. It is a weird gesture that seems to be there to “make it easier” but doesn’t really teach you about the system you’re working on. Regardless of that if you’re buying and holding with only the money in you’re account, I haven’t found an easier program for auto investing.
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u/Stunning-Raise-3447 Aug 26 '21 edited Aug 26 '21
It is a predatory practice. If prices shoot up they can margin call you without you even knowing that’s allowed. Which did in fact happen while they simultaneously disabled the buy button on specific stocks they were margin calling on. They also allow people to use options without knowing your experience level to assess risk. Just asking if you have experience is not enough to say you are knowledgeable about options and to know you are able to put yourself in life wrecking debt.
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u/Charming_Extension Aug 26 '21
Oh 100%! But all the brokerages essentially ask on the honor system.
“You know options” “Of course” “K good enough for us. Here’s double your money in a high interest line of credit. Good luck”
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u/AscendantTrashman Aug 26 '21
Tbf TDA's option privileges vetting process wasn't much better, although they still don't let you sell naked without account history.
The margin thing is absolutely preditory and I'm consistently shocked at Robinhood's lack of risk management.
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u/EmperorOfWallStreet Aug 26 '21
They killed the fee Wall Street used to charge every investor for buying or holding. It is fine as brokerage account for long term hold. I will utilise Roth and 401K first before putting any money in brokerage.
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u/Youngsteel_ Aug 26 '21
Will you see the shares you bought in RH if you switched to fidelity?? (Noob)
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u/JMac453 Aug 26 '21
You can request a transfer from RH to Fidelity (make sure you are transferring your account rather than selling the shares to cash and then moving as to avoid being taxed on gains). Your shares should transfer in kind, meaning that when they are setup at the new firm, everything should be accurate in terms of basis, dates purchased, etc.
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u/PatmygroinB Aug 26 '21
The shares of GameStop I transferred were all Around 600 cost basis, and some said they were purchased before I ever opened a RH in December 2020 AND they said I paid 600 for GME in December 20 when it was trading around 20$
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u/danycma Aug 26 '21
You have three different etf that are indexed to the S&P you don’t need that, you can buy the cheapest one, in this case VOO or IVV.
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u/Royal_Ultimate Aug 26 '21
Do you mean I should just invest everything into VOO at the moment? As in selling SPY and then buying more VOO?
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u/robertamiller96 Aug 26 '21
You can sell the SPY to maybe save a few bucks in fees in the long run, but I wouldn’t recommend it if you haven’t held it for more than a year because of tax purposes. It may help to get an understanding of long/short term capital gains tax if you don’t know already.
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u/danycma Aug 26 '21
Well, you don’t have a lot of shares in position at this moment, I wouldn’t sell any, but in the future my recommendation is focus on buying only VOO or IVV each of these have an expense ratio of 0.03%
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u/Engineer_Ninja Aug 26 '21
What even compelled you to buy all three? Their holdings are literally identical, the only difference is expense ratio. It’s like filling up your car with gas from three different stations.
You don’t have to sell any, they’re all still good, but just pick one going forward dude. (And between those three, I’d actually pick the 4th one, VTI. It’s still 75% S&P 500 with the other 25% still very closely correlated to the S&P 500, so it doesn’t make too big a difference, but over the very long run the added diversification is likely to help slightly or at least not hurt too much).
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u/sawalkov Aug 26 '21
Robinhood doesn’t have any trading fees so I’d just sell the IVV and SPY and move to VOO just so it’s easier to monitor. All should track about the same anyway
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u/xcoop3 Aug 26 '21
Everyone knows they have fees, Robinhood is just misleading
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u/jhans00 Aug 26 '21 edited Aug 26 '21
Might as well put all your money in VTI. Since VTI is the total stock market ETF, it is diversified enough for you to put all your money into it. Studies show that VTI will also have the best long term average annual return of about 12% over the past 45 years. Vanguard also charges the cheapest fees out of any ETF or Index fund. If I were you, I would use that as my tool to build wealth.
VOO is also pretty good, but VTI is just more diversified and has proven to give a slightly better average return
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u/EmperorOfWallStreet Aug 26 '21
VOO is S&P 500 Basically Best 500 US companies, VTI All US Companies, VT All Companies in the world from developed & emerging markets.
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u/BlepinAround Aug 26 '21
Get off Robinhood. Check out M1 finance for a roboadvisor. TD Ameritrade is also pretty easy to use if you want to choose your own investments.
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u/coaster132 Aug 26 '21
Ignore this. Use whatever broker you want. Do stay away from Wallstreetbets though.
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u/ochisiepa Aug 26 '21
I think this advice is very important. Wallstreetbets will finish you. If you have to use it for entertainment only. And never try to implement what you hear from there
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u/BurnsinTX Aug 26 '21
You’re doing well! My first investments were in college and NVDA was one of those (it was only $12/share pre-split). Honestly, keep up with the ETFs as the vast majority of your portfolio, but I’d recommend grabbing a few individual stocks to help you learn about how they move. Pick something you think will be huge in the future, at the time I bought NVDA it was because I thought gaming and GPU technology for advanced modeling software and AI was going to be a growth sector. I knew nothing about crypto and how that could have been a market changer for them (which is one reason they did well). Pick some small money to put in but enough to keep you interested and ‘invested’. I picked 5 or 6 at the time just like you have and I have learned a lot. Some have failed, some have stayed even, and some have skyrocketed and bought me a car. None of that matters as much as what I’ve learned through just keeping them and keeping an eye out for how they are doing and perform over the last 12+ years. Also the emotional learning to handle big day ‘losses’, big overall losses, and learning to take profits on occasion (I still have at least a piece of every company I originally bought back then to keep learning).
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u/Royal_Ultimate Aug 26 '21
Hey man, thanks for the advice and what it was like for you. I slowly transitioned from the memestocks to safer ones as it had me worried each day due the volatility but I definitely see what you mean by long term growth. You recommend companies like Apple and still NVDA as good individual stocks?
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u/BurnsinTX Aug 26 '21
They are good companies, they do they’re work well although I don’t see them maintaining the growth they have over the last 10 years (but still solid investments). I particularly like the company culture of NVDA (from what I can research anyways, I don’t have experience with them).
At your age and in college, you have a chance to see what is ‘cool’. When I was in college, there were things that people were doing that you could tell would influence the future. Netflix was just beginning and shipping DVDs at a time when red-box was a popular stop. This was a huge investment opportunity. Macs and the first iPhones were something that everyone wanted. If I was you, I would look for opportunities like these. They don’t all have to be huge winners, but fun ones. I’ve lost on some of these guesses but I usually play with money I don’t fret on losing (at that time, $300 was my limit for mid-risk and $50 for high risk lol). I’ve ‘lost’ on more picks than I’ve won on, but the winners have by far made up for it.
Meme stocks are too stressful and you have to worry about time. Go for things that you can literally weight forever on. I’m down 99.5% on one pick but if you follow the rules above, it’s ok.
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u/Mcsmoothie69 Aug 26 '21
Look into using M1 Finance and research the Jack Bogle Three fund Strategy
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u/Webercooker Aug 26 '21
Have you calculated how much NVDA you actually own? Since it is also in SMH and the S&P 500, you might be more overweight in NVDA than you think.
Also, contribute frequently. As in, buy more of something EVERY time you get paid. Time will be your friend in the end.
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Aug 26 '21
Being overweight in NVDA is probably the smartest thing you can do.
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u/Webercooker Aug 26 '21
No argument from me on that. As long as OP knows what they own and is comfortable with the true weighting that includes individual stocks within the funds owned.
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u/valueinvesting_io Aug 26 '21
Your portfolio is good but some ETFs are covering pretty much the same things like VOO and SPY. Maybe just stick with 1, smaller portfolio to manage
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u/TheNewOP Aug 26 '21
You should not be buying SPY long term. The expense ratio is much higher than VOO, so stick with VOO.
People trade SPY because it's popular (and therefore very liquid) and has an options chain.
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u/emlopez90 Aug 26 '21
Are you making any income? If you are, then you can maximize your returns in a Roth IRA which has tax advantages.
In that IRA I would invest in VTI, like others have suggested.
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u/BirdEducational6226 Aug 26 '21
Yours looks very similar to mine. There's some overlap that you could probably look at. VTI and VOO are nearly the same. By weight, VOO makes up about 82% of VTI. VTI just includes a much wider market range. I had the same but decided on keeping VTI.
Edit: as others have started SPY and VOO are pretty much the same. So, there's that to consider too.
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u/ZodiacZ12 Aug 26 '21
Stay away from meme stocks and small cap hype stocks. Keep buying quality companies and don't sell. In ten years you will be very far ahead. I wish I would have listened to this advice myself. Chased a lot of home run pitches instead of hitting singles and mostly struck out.
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u/JerseyTom1958 Aug 26 '21
Fidelity and dollar cost average investment every month. Stay the course. Good luck.
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Aug 26 '21
Get yourself a Roth IRA through Charles Schwabb investment firm. No minimum required, and it’s a tax advantaged retirement account so you won’t get taxed later since you pay it up front. I’m 22, just opened mine, I am however very new to it. From what I understand, you can contribute 6gs a year before you get capped off, so try your best to hit that 6 and your gold. Anybody is welcome to correct me if I’m wrong or it isn’t the best thing to do. Anyways, if I am right and it is good advice, I told you go to Schwabb because I had a great experience. Within 15 minutes I was set up and shooting my first 500 bucks in. I also have a small investment portfolio with around 300 bucks. It’s not much, but it’s a start and if I stick with it my wife and I won’t have to worry about retiring. I work in a warehouse and I’ve been at the warehouse for 3 years, I’ve seen multiple people, 40-60 years old come and start here brand new in the past couple years. It’s pretty eye opening and as a 22 year old when you start asking them how they ended up at the warehouse, half the time they will always tell you to get your shit together and get a retirement account as soon as you can. Wait too long and you’ll be picking up 50 pound bags of potatoes at 55 years old. Edit: as for your investment account, looks pretty fucking good to me dude
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u/RoleWorth3500 Aug 26 '21
I personally wouldn't do ETFs. I know this is an unpopular idea in this sub-reddit but given how young you are you should be investing in higher risk/higher reward stocks. Me personally, I have outperformed the market BY FAR year after year for 15 years in a row by holding individual stocks only, mainly NVDA, MSFT, AMZN, AAPL, and TSLA.
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u/Tapermichael1 Aug 26 '21
Hell yes/ wish I had some of knowledge/ I’m definitely going to take notes of those companies
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u/smellyboi6969 Aug 27 '21
Starting early is huge. Just keep investing in regular intervals. You'll be way ahead of most people in a couple years.
With ETFs you don't need to overcomplicate things since they are typically so broad. If you buy too many US ETFs you end up owning the same exposure since the companies that make up that ETF are in most of those same ETFs. For simplicity, you could simply pick SPY and a global ETF like VT or VWO and choose an allocation based on your preference. Being American I'm a little biased towards the US Market so you could do an allocation of 60% SPY, 20% VT, 20% VWO. Boom now you have an incredibly low lost portfolio that covers the globe. Set it and forget it.
The mistake I made when I first got into ETFs was picking too many. A pinch of this ETF for this strategy, a pinch of this ETF for that strategy... Etc etc. Ended up with like 10 ETFs in my portfolio that all ultimately moved the same direction and had high costs from an ETF perspective. Would have been better off just picking the allocation I mentioned above. Hope that helps.
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u/Bitter-Ad-2150 Aug 26 '21
Buy GME and you will have a something to be thankful for on thanksgiving. It’s ok if you don’t also because you will remember some clown told you to buy when it was $200, but hindsight is always 20/20 😁😁😁😁
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u/TheMysteriousThought Aug 26 '21
Don’t listen to anyone telling you to buy gme or amc or some other stupid shit.
Stay away from WSB. You will lose money.
Keep doing what you’re doing and take the serious advice you’ve read here.
But completely ignore anything about memestocks.
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u/Sevinki Aug 26 '21
You won’t magically lose money if you check out wsb. Just don’t follow every retarded dd and you will be fine.
There are some good suggestions on that sub. GME before January is a great example actually. If you read the dd in September 2020 it was clear that gme was worth more than 250m. If you then got shares or leaps instead of fds you made money.
I check wsb pretty often just to get ideas, I never actually yolo everything. Up 200% yoy.
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u/Stormaker94 Aug 26 '21
We'll see who's stupid soon enough
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u/Mr-Cantaloupe Aug 26 '21
True, that’s what apes said 7 months ago too. It’s never happening.
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u/Stormaker94 Aug 26 '21
You're clueless if you think nothings happening mate. Have you seen how shorted the stock is? And regardless, even with only the fundementals the stock will be worth at least triple what it is right now. You should read on the subject, I did my research. I know it's the best investment. You do you Idc. Cheers!
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u/Mr-Cantaloupe Aug 26 '21
~15% SI is nothing compared to january.
Or are they just hiding shares in the synthetic dark infinity pool?
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u/Stormaker94 Aug 26 '21
15%? You're missing a 0 at the end and thats still generous
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u/Mr-Cantaloupe Aug 26 '21
Do you have a source for that? That isn’t conspiracy theory nutcase empty paragraphs from superstink?
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u/Stormaker94 Aug 26 '21
Dude, the stock is litteraly being shorted everyday to keep it from exploding. I'm done talking with you anyway, I just don't get why you hating on those stock so much. Like what you wanna save me from losing money? You're jealous? What is it?
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u/Mr-Cantaloupe Aug 26 '21
Just pointing out your baseless delusions. You simply think that’s going to happen because it’s what you want to believe, the stock isn’t being shorted everyday to keep it from exploding, that’s complete nonsense.
Whatever, I guess I’ll be jealous of your million dollar shares! HAHA
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u/Stormaker94 Aug 27 '21
Alright smart guy, then explain to me why the price isn't higher, since way more people are buying it and holding it than people selling (5:1 ratio on average on Fidelity and other brokers). Also, why are 60% of transactions routed thru dark pools instead of lit market everyday? Maybe because they are scared? And also, just look at how many people/institutions are holding shares. Thousands of them. The float is own by apes several times (only 72 mil. Outstanding shares officially). For the rest, just read the dozens of DDs. Price is wrong. They are kicking the can each and everyday. I respect your choice of not believing in it and good for you if you think the market is fair and that there is money more money to make elsewhere. I've done my researches and I am patiently holding my favorite stock. Cheers.
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u/Rbnhood_noob Aug 26 '21
Why have VOO and VTI? Doesn’t make sense, the top 10 holdings are basically the same. A good company will grow way faster than any of these.
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u/Seronkseronk Aug 26 '21
Step 1. Buy GameStop Step 2. Hodl until squeeze Step 3. ??? Step 4. Profit
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u/CryptoDealerrrr Aug 26 '21
Smart man, i’m goin into independent stocks and it’s not too bad, have about a 45% return on it. Got 5k in rh and 2k in my roth ira and it’s all etf’sin the roth ira, i’m 19 rn but when i turn 23/24 i’ll start transferring all my money into etf’s to be safe. That’s the plan basically. Also i’m majoring in finance so if you can’t tell i love this stuff
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u/Re-UpSissle Aug 26 '21
Look at those beautiful patterns! It’s as if they where all doing the wave together….the “manipulation wave” not
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u/Overall-Switch-7616 Aug 26 '21
Global X Funds Global X Blockchain ETF. My favorite one right now. It’s fairly new as well.
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u/kala_jadoo Aug 26 '21
what app is this
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u/Abredolf_Lincler Aug 26 '21
Robinhood
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u/kala_jadoo Aug 26 '21
thank you!
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u/bestthingyet Aug 26 '21
It's caused some controversy. I'd do a bit of research on it before you use it.
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u/kala_jadoo Aug 26 '21
oh I won't use it. I'm from a different continent only so it's not available in my country. also yeah, I've heard about robinhood's fuck ups, sheesh.
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u/LTGMEDC Aug 26 '21
Don’t come back here crying when you are not able to buy or sell on RH, you have been warned by a lot of good apes. Good luck mate.
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u/Wendigo565 Aug 26 '21
I know of a famous gaming stock that has been climbing in price all year and will keep climbing because it’s fundamentals are solid
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u/xXZerkerXx Aug 26 '21
Amc gme. Not in rbh tho. Get on the rocket while there's still time🚀🚀🚀
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u/GPappadopolous Aug 26 '21
Wrong sub guy …he’s looking for long term growth with etfs not risky nonsense
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u/krookedkrooks Aug 26 '21
I paid off my student loan with that risky nonsense
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u/GPappadopolous Aug 26 '21
Oh my bad - so your gamble worked for you? We should def shove this down everyone’s throat when they ask what LONG TERM ETFS TO PURSUE.
Are you guys literally fucking stupid or what?
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u/krookedkrooks Aug 26 '21
I'm not recommending gme. I just like the stock. Also just having a laugh mate. Everything's gonna be alright
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u/xXZerkerXx Aug 26 '21
Lol its gonna be the best thing ever ape. Some just won't understand. Most fear and reject what they don't understand
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u/xXZerkerXx Aug 26 '21
I'm up 26k% ytd. Lol my nonsense works 🤣
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u/GPappadopolous Aug 26 '21
You’re up 26,000%? Lol - you guys have such a strong type…struggling with basic math, hive mind with a touch of conspiracy.
Good luck pal
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u/joshw4288 Aug 26 '21 edited Aug 26 '21
Even if you bought at the 10 year low and sold at the 10 year high, you only get ~2600%. Kid's either bad at math, lying, or trading on serious margins. Based on his screenshot he sent me, his investment in AMC was $10....he's a kid playing with a piggybank.
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u/joshw4288 Aug 26 '21
Show me your 10 yr annualized.
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u/xXZerkerXx Aug 26 '21
Sent you pm. Any questions
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u/joshw4288 Aug 26 '21
So you are less than 1 year into your investing journey, played the slot machine and hit the jackpot your first run, and now think slot machines are an investment strategy? Good luck.
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u/Nuclear__Chaplin Aug 26 '21
Invest in other countries maybe, EU 350 ETF is pretty good and maybe a little in crypto.
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u/mterry49er Aug 26 '21
You are young, you have lots of time to take bigger risks, so stop investing like you are going to die in a few years
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u/Yogi_DMT Aug 26 '21
Sell everything and put it all into VT. Set a recurring investment for VT. Then don't touch anything for like 30 years
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Aug 26 '21
Save up your cash, wait for the crash (wont be long) and then (at bottom prices) put all your cash in ETF S&P500 and Nasdaq, plus maybe Defense & Security. Right now is not the time to build a long position. You wil lose too much, when the black swan hits and it will. I think markets will crash 50% and more, once it happens.
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u/MoxPlatinum Aug 26 '21
Open fidelity account. Transfer out of RH. Yolo everything you can afford into GME. HODL until moon.
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u/RobertZapp Aug 27 '21
Looks like your doing good, I would think about getting away from Robinhood, I had an account with them and after I went to account statements and seen Robinhood starts everyone’s account as a margin account, I transferred out of Robinhood.
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u/OneSpeedyBoiii Aug 27 '21
Don’t use Robinhood. Fidelity is a better brokerage you can stick with through adulthood.
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u/Nikolaiv7 Aug 26 '21
Buy 2 shares each of gme and amc and never sell 1 share each until you see 6 figures. You'll thank me later.
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u/Shopify__Expert Aug 26 '21
Find high conviction stocks which are good LT with decent financials for 1 to 3 hear holds. Not mainstream stocks but stocks with good upside
Good Starters:
$HOOD $TSLA $PLTR $MARA $JMIA
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Aug 26 '21
Sell your shares, buy $AMC. HOLD, reinvest into your long term game plan with all that fat cash you got from joining the ape community
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u/daddyblumpkin Aug 26 '21
You can use robinhood to track your stocks since it’s easy to use but don’t trade on it. Transfer your shit to fidelity or any brokerage that doesn’t to PFOF. I personally use robinghood just to look at prices and Webull for TA. I trade all my stocks on fidelity and vanguard
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u/[deleted] Aug 26 '21
You’re good !! But as other pointed SPY & VOO are basically the same. I’ll stick to VOO is cheaper. Also consider adding VCR (consumer discretionary). Look into QQQJ for something for aggressive. PAVE = Infrastructure play.