Investing and Morgan Stanley

[Proof]

I turn 20 this month and ive decided to seriously start investing my money. I meet with an investment banker at my bank, but what made me nervous was besides for the yearly fees associated with starting up an account what motivation does she have to invest my money wisely? Im sure everyone is familiar with Morgan Stanley's "we make money when you do" slogan.

So my question is who do you think i should go with? I have about $6,000 i want to put in long and short term investments and i already have 100 shares of Phizer, and like 3 shares of johnson and johnson.

 

[Luveno]

It all depends on what you're going for.

If you are interested in SandP 500 investing, I suggest NOT going with Morgan Stanley. You can get a way cheaper deal with Vanguard, and its the same thing.


Full service brokerages such as Morgan Stanley are useful to a point. But think about it - if they charge..lets say 1.5% commission, then you're going to have to make consistent gains larger than 1.5%.

 

[Proof]

Exactly, you could end up loosing more money than gaining.

 

[STR8UP]

I'm not big on stocks myself. I have made money on advice from my stock broker, but it always seemed that he wanted me to keep the money moving so he would make more on commissions.

Funny thing is, this broker (who was a friend of mine) ended up making millions from an invention a few years later, and last time I talked to him he was doing well with an import business he started. He was a licensed stock broker but made his millions in business. Go figure.

 

[cave dweller]

no load........

Proof,

my 2 cents........

I play the stock market. My accounts are with td waterhouse.

I have a 'straight' account and a ROTH IRA.

I would not go with a full service broker.

Also, Vanguard funds are the way to go.. (no load)

If I had 6,000 bucks to invest I would:

Put 3 grand in the S&P or Total Stock Market fund with Vanguard.

Put the other 3,000 in a discount broker account and buy and play stocks.

Like I said...my 2 cents

cave dweller

 

[cave dweller]

ETF

Also,

A couple of years ago I starting buying ETF's.

Why?

ETF's are a basket of stocks (like mutual funds) in one sector or theme.

You trade ETF's just as you would trade a stock.

cave dweller

 

[al77]

Re: no load........

Originally posted by cave dweller
I play the stock market. My accounts are with td waterhouse.
I have a 'straight' account and a ROTH IRA.


If I had 6,000 bucks to invest I would:
Put 3 grand in the S&P or Total Stock Market fund with Vanguard.
Put the other 3,000 in a discount broker account and buy and play stocks.

cave dweller,

Seems you have experience in trading, why did you chose
td waterhouse for straight account? It charges ~$10 for a transaction. Scotrade charges $7, I guess it is possible to find even lower price?

S&P: I have never been able to understand this concept.
If you invest in S&P it seems you are not going to trade it much - you invest basically "in teh market" and keep it for some long time. If you look at the chart of S&P, now it is doing good, but it also has some dips... that means you have to watch it as any other stock.
So then, what the difference between investing in S&P and just stock? Less volatility? Yes, but you still have to watch it...
Would not it be better to play stock with full sum?

By the way, what is the advatage of ETF over stocks?

 

[cave dweller]

S&P---ETF

My 2 cents........


S&P 500--tracks-----the 500 stongest (not biggest) companies in the market.

So, last month it moves down, say, 2% and this month it jumps up 4%---------

Check the 1 week, 1 month, 1 year, ect.... charts

I goes up, down, up up up, down, up up up, down, up up up...

Well, you get my drift.....

Buy on the down, sell on the up.........

Wait until you see what companies make up the S&P..... You will be shocked. ie: (Walmart, Dell, Sears, McDonalds, Ford)

---------------------------

ETF's........Are a basket of stocks with a 'theme'.

ie:

Let's say I wanted to buy stock in Ford---ticker symble--F.

So, I buy 2,000 bucks of F at 11 bucks a share.........

You buy 2, 000 bucks of an ETF that tracks Ford, GM, Honda, Jeep and 15 other auto companies.

Ford goes bankrupt and I loose all of my 2 grand.......

The ETF will do ok...........

cave dweller

 

[cave dweller]

sector stocks.....

Hey,

I hope you get my drift........

One more here:

I want to buy some Walgreens-------WAG.

or

I can buy into an ETF that tracks the drug store sector, ie:...Walgreens, CVS, Echards....A buch of them.......

If WAG goes Bankrupt you lose your cash.....

But, ETF's don't go bankrupt......


cave dweller