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Beginner in Trading!

Beginner in Trading!

willalt319

So first thing, you said trading in point 1 but investing in point 2. I'd first decide what your goal is. Trading and investing are two different things. For trading, I wouldn't even bother with ETFs unless you wanted something leveraged like UPRO. For investing, no amount is too small. I personally us M1 and would recommend it for a "set it and forget approach". With this strategy, you'll ideally choose a couple total market ETFs like VOO (S&P 500) or VTI (All US stocks) and couple it with an international market ETF like VXUS (World minus US). This combo should constitute at least 70-80% of your portfolio. If you'd like a larger bucket of "growth" or "value" stocks, you can do something like VUG and/or VTV. If you have conviction in a particular sector, say technology, you can add in a small portion into something like VGT, QQQM, or QQQJ. TL;DR: buy Vanguard broad market indexes in M1 and forget it. Add a small portion (5%) in a particular sector if you must in order to feel alive.


pringless22sc

thanks for the reply! Obviously, have some more work to do because I thought investing is a form of trading ><


willalt319

Sort of the other way around. Trading can be considered a form investing, but typically when people use the term investing, they are referring to a longer term commitment, potentially lower risk, and guaging what they think will happen in the market over the next 10-20+ years. Trading on the other hand, involves knowing alot more about the technical side of stocks, charts, etc and has less to do with the company and more to do with things like public sentiment, market momentum, etc. Trading is designed to be for the short term (minutes to days to weeks) and really isn't for someone who doesn't know what they're doing. That's not meant as offense. Just that trading is a really great way to lose a lot of money quickly.


pringless22sc

I appreciate the honest input! I'm still watching videos and reading literature on how all of this work, but I thought it'd be relatively safe to invest in a few ETFs right now..,


SeanVo

Are you in the US? Fidelity will set you up well with a brokerage account, cash management account with checking and debit card if those are helpful. Vanguard or Schwab are also good. M1 gets good marks from many customers. What amount? What amount are you willing to lose over the next year or two? Are you investing or trading? Investing for growth for retirement or other goals is a long-term process. Spend 10+ years investing 10-25% of your monthly income in low cost index ETF's (like VTI) and you'll start to notice some major growth occurring. The best time to start was 10 years ago. The next best time is today.


pringless22sc

I thought fidelity charges for a brokerage account? This is why I was confused about starting off since it also says there's NO fees with ETFs. I was thinking of starting off with 10k and adding in 1k/month afterwards (pending salary changes) and investing over long term process!


SeanVo

No fees at Fidelity as far as I know. That sounds like a great start with $10k and then $1k a month! In 20 years you may have \~ $750K if the markets average 10 percent growth. In 30 years it could be $2.1M [https://www.investingfees.com/calc/investment/](https://www.investingfees.com/calc/investment/)


pringless22sc

awesome, thanks for the support!


pringless22sc

me again! If I plan to buy only Vanguard ETFs, then it's best to buy it from their brokerage account because then there is no fee from buying to selling the ETF (compared to buying-selling on Fidelity, for example?)


SeanVo

You can use any brokerage (Fidelity, Schwab, Vanguard, TD etc) to buy Vanguard ETF's, all transaction free. I've found Fidelity customer service to be a bit better than Vanguard over the last year. But any of the ones mentioned would be fine choices. There's no disadvantage to buying Vanguard ETF's in a different brokerage from everything I've read.


pringless22sc

Great, thanks for the info 😎


pringless22sc

and thank you!


Rob1iam

I always recommend Fidelity for anyone who is starting out. They are a well established brokerage who’ve been around forever and have a lot of respect in the industry. Zero commission for stock and ETF trading, no account fees, easy to navigate, and they have great customer service. There’s no such thing as a minimum to start buying ETFs. The best time to start investing was yesterday, and the second best time is today.


pringless22sc

But, if I plan to buy only Vanguard ETFs, then it's best to buy it from Vanguard's brokerage account because then there is no fee from buying to selling the ETF (compared to buying-selling on Fidelity, for example?)


Rob1iam

Fidelity does not charge commissions on ETFs, period. It’s doesn’t matter if it’s Fidelity’s own ETF or a competitor’s.


pringless22sc

I thought their exchange rate would be different ?


Rob1iam

Exchange rate? I’m sorry, I don’t follow. Are you talking about using foreign currency?