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Money Stuff - How To: Get in the Stock Market

DoosDoos Centurion

Hey dudes, I've recently been actively fucking with the stock market and I know from my personal life, work life and everything in between that most people do NOT fuck with it and it's confusing as hell and there's a lot to figure out so I'm going to break it down into a couple of easy steps because I know it's overwhelming but once you get a couple of the things it makes sense:

So, you want to buy some shares in a company. What the fuck do you do!?

You're going to need a couple of things:

1) A trading account through a broker of your choice.
2) Some money.
3) A company you want to invest in

The very first thing you need to do is pick a broker. Your bank probably has a broker if you're with any of the major banks. CIBC, RBC, TD, Scotia. They all have brokerages.

There's also lots of online ones to choose from too.

So what the fuck is a broker? They're the arm of your bank that can actively trade stocks. You tell them you want to buy/sell (over the phone, online, in person) and they get in touch with a buyer/seller and it's done for a fee.

This can be as easy as clicking a few buttons on your phone using an app. Or you can call the motherfuckers like all the old people do because they don't understand apps.

The commission fee these days is usually a flat rate of anywhere from 6.99 per trade up to around $15.

Do you need to have a broker with YOUR bank? No, no you don't. You can have an account with any broker. You can have 10 accounts with 10 brokers.. nobody cares. It's just more accounts for you to look after.

I went with CIBC right off the bat because they had the cheapest commission. $6.99. Their UI is outdated as fuck though so I started a different one with TD and it's a much nicer setup but the trades cost $9.99.

So ok, you picked a broker, cool. Now you'll need to start the process of opening an account. This was the lamest part because I actually had to go into the bank to do it a couple of times. For me it was a little different than it might be for ya'll because I was also transferring shares from one place to another and it was a little convoluted... but for ya'll, call the place you want to use and start the process of opening an account.

Here's the important part:

YOU WANT YOUR TRADING ACCOUNT TO BE A TFSA.

"I want to open a trading account. I want it to be a TFSA"

This is very important. So a TFSA means 'Tax free savings account'. That means the investments you hold in that account, be it shares or just straight cash, any gains you make are NOT TAXABLE.

If you buy shares at a dollar that are 20 years later worth 1000 bucks, you won't have to pay tax on those gains.

It's huge and Canada is currently one of the only countries in the world that has such a thing.

I mean, really, that's all there is to it.

Find a broker.
Open an account.
Add a TFSA to the account.
Transfer money into the TFSA.
Buy some shares.

^The buy some shares stuff has lots of silly things around it too. Market Order, Limit Order, what do these things mean?

Market order says 'Gimme the stock at the price it's at RIGHT NOW!' and Limit is 'I want that stock at this price that I've chosen.'

Simple, right?

Man, all the info is out there, it's super easy once you start messing with it.

So, just throwing it out there.

I'm no pro at this but I've done it a couple of times and man, there's money to be made out there.

Hit me up if you want to know more.

Juxtapose

Comments

  • DoosDoos Centurion
    edited March 16

    How do I know what to invest in?

    Let me tell you about my history with the stock market and I bet it corresponds with some of ya'll.

    When I first took notice of a stock it was when Steve Jobs announced the Iphone in 2007. I said 'Holy fucking shit that thing is the future.' but I didn't know anything about the stock market or how to invest or buy shares.

    In 2007 when I noticed that, their stock was valued at $15-20/share. 7 years later it was $750/share. In 7 years it went up over 3000%. So if you owned 1 share of apple at $20 and sold it at it's peak you would've profited around $600. Imagine if you'd owned 1000 shares, right?

    But I did nothing because I knew nothing.

    Then I noticed Netflix coming. I saw it when it was first coming to Canada around 2010. It went from around $15/share to $350. An increase of over 2000%.

    I did nothing because I knew nothing.

    But I saw them coming.

    Right now, I see weed coming and I finally pulled the trigger. For me, I see weed being bigger than either of those two. But there's a big difference between those examples and weed.

    Netflix and apple are singular companies, they meet the need by themselves. The weed industry is going to have hundreds of small producers at first but what is likely to happen and is happening already is that those small companies are going to get bought up by bigger companies and soon there will likely (Likely, not definitely) be one big ass weed producing company.

    Who is it going to be? I don't know but the front runner right now for me is Canopy Growth. Stock ticker: WEED

    Am I saying you should invest in Weed? Nope. But you should invest in a company or industry that you're familiar with. That you see doing something that you think is going to be a good idea.

    We all like videogames, who's killing it right now? Are they on the stock market? Do you think that they're priced fairly? Are their stocks going to continue to go up? How long term do I want to invest in this?

    Is Netflix going to start streaming Live sports? Because $300+ sure is expensive for a share but it's not that expensive if it's only going to keep going up.

    Google and Amazon trade at over 1k+ per share. Is Netflix going to get there too?

    What about Disney?
    Oil and Gas?
    How's Gold doing these days?

    Hell, maybe just invest in a blue chip stock and collect the dividends every year. Will you make 1000% in a year? Probably not buy you'll probably make more than you would in a savings account.

    Or you can lose it all.

    Because THE STOCK MARKET IS GAMBLING.

    BUT and this is the most important thing in the whole wide world when dealing with the stock market.

    First: You only put in what you're willing to lose.
    Second but just as important: You're only down if you sell and you're only up if you sell.

    If you buy a stock and it tanks as soon as you buy it and you're like 'Holy fucking shit I'm down 50% of my investment.. fuck me.. fuck ME!!!' then you're doing it wrong.

    You buy into a share because you believe in the company, you have an idea of where you'd like to get out and you leave it there and forget about it.

    Warren Buffet is a genius trading billionaire and he says, all the time, 'Time in the market is better than timing the market.'

    That means that long term investments will almost ALWAYS pay more than trying to buy low sell high on a daily, weekly, monthly basis.

    Day traders are trying to buy sell all day long. They usually don't hold stocks in their account at the end of the day. They buy, hope for an increase, sell and are usually all cash at the end of the trading day. All sorts of videos on YouTube about this.

    Swing traders are guys who do the same as day traders but don't mind holding a stock for a couple days, weeks, whatever.. they're not looking to make a million trades a day.. more like a couple.

    Then there's investors. You buy a stock, you hold it for x amount of years or until it hits a number you like and then you sell it.

    That's the safest but still, a recession can happen (That's a great time to buy stock, by the way) and you can watch it all just tumble down but you don't sell, you keep holding and hey look, we're out of the recession and stronger than ever.

    Time in the market.

    So.. TLDR:

    What do you want to invest in?
    Long term investments have a better chance to pay out than short term, but short term can pay now and woo, it's exciting.
    What's happening in the world right now that you think you can capitalize on?

    Juxtapose
  • JuxtaposeJuxtapose Centurion

    Very cool @Doos . I've never touched the stock market simply because I am afraid of the "gambling" aspect of it. I've relied on GICs instead. Significantly less return potential, but 100% safe and not bad money overall.

  • DoosDoos Centurion

    And you're right, Jux.. at it's base, it's gambling. Stock can go up, or it can go down. You're basically betting that 'I'm buying it now, selling it then and I hope it's up when I want to sell it.'

    But it's not like gambling at a casino where it's stacked against you. You're betting on a company to gather shareholders.

    But you can certainly hedge your bets by buying into a solid company that you think is going to perform well. And you're never forced to sell. If a company's stock tanks and you're holding it, you don't have to sell that shit. You just keep on holding. That's why it's important to invest in a company you believe isn't going to go bankrupt any time soon. But they could. Oh shit yeah, they could.

    But it's all up to the individuals level of risk. You wanna get into some crazy volatile market? Like investing in Crypto? Woo... what a rollercoaster.. but you try to buy the dips and sell the peaks and you can make stupid money over night.. or lose it all.

    I don't recommend that shit but it's fun as hell when you win.

    Not so fun when you have to wait for a month for it to climb back up to where you bought it and then sell.

    Time in the market is better than timing the market.

    Juxtapose
  • Law212Law212 Centurion

    Doos, you're aewsome. Im going to TD tomorrow to open an account. My bank doesnt have trading

    Juxtapose
  • DoosDoos Centurion

    Thanks Law. Yeah, just tell 'em you want a self directed trading account with a TFSA.

    When I went in they were super backed up with all the people opening trading accounts. You may need to call ahead. I'm not the only one who thinks weed has potential to be a big industry.

    Ask what their current time frame is to get an account opened for you and if it's going to make it a quicker process, have them First) Set up your trading account. THEN add a TFSA to it.

    When I opened mine the guy said it might make it faster to do it that way because opening them both at the same time sometimes bogged the whole process down.

    This was months ago so things may have calmed down since then.

    Don't get crazy anxious or anything. You haven't been in the market for 36 years.. what's another month? (if it takes that long, sometimes it can, it shouldn't though)

    There's an acronym to remember. FOMO. It means 'Fear of missing out'. It's heavily used in the trading world because a stock will be skyrocketing and you're like 'Fuck if I don't get in now I'll never get in oh god.. I'm gonna buy in!' and bam you bought in at the all time high of the stock and now you're sitting there going 'fuuck.. if i'd just waited..'

    Patience. Stock market isn't going anywhere. Neither are the companies.

    Hit up the thread once you've talked to the bank.

    Cheers.

  • Law212Law212 Centurion

    Ive been thinking of it for a few years. One stock i want to try to get is for the company i work with now. They arent public yet but will be soon.

  • DoosDoos Centurion

    Oh shit yeah. Are they going to offer an ESP? (Employee stock program)

    Because that's usually a great bet. A lot of the time they'll match your contributions and have dividends (A pay out x times a year at x amount of the stock price) and incentives.

    ESP's can be great.

  • Law212Law212 Centurion

    I dont know yet, but I will be asking for sure. Im going to be all over my boss about this

  • This is all great information I am going to use as soon as I make sure I'm setting myself up for retirement properly. Any extra money after that I'll probably play some stock games with.
  • DoosDoos Centurion

    I don't know what you want to do for a living, Tim but I'd be searching for something that provides a pension.

    Maybe google 'Which jobs have a pension' and see if you like any of them. Then see what you have to do to get them. Most federal and provincial jobs have them. Some trades if you work for a corporation.

    Then you can save for when they try to take it away from you. Ha!

    If you don't know what you want to do for a living, join the club. I'm just sticking with my gig because it pays well, has some benefits and a pension and I don't hate it.

    Good enough for me.

  • Law212Law212 Centurion

    Most people I know are not in jobs they wanted to be working in . Me included. That's not a bad thing. Things change, people change and sometimes something comes along you never thought of and its good so you take it. If you hold out for the perfect job you might miss out.

  • DoosDoos Centurion

    Man even my buddies who're doing what they're passionate about, it's still a grind some days. Just the way it is.

    I'm good at my job and I have good coworkers for the most part. That's two thumbs up, right there. Makes the days go by easier.

    EchoGolfSierraJuxtaposeLaw212
  • OzziOzzi Centurion

    I haven't done stocks, as of yet. It's something i'm eying up. Those tech startups are where to invest though. My brother however invested a bunch into the pot stocks, and so far has made a bunch off of that, even my cousin invested in those, and he hasn't worked for a year, cause his stocks are paying for his rent, food, extracurriculars.

    Law212Doos
  • Law212Law212 Centurion

    I opened an account with TD this morning.

    JuxtaposeDoos
  • DoosDoos Centurion

    Any investments, Law? It's a decent time to grab some weedstocks if you're looking to get into that market. Everything is down right now.

    Obviously I can't promise it'll ever go up but I imagine by this time next year most of 'em will be worth significantly more.

  • Law212Law212 Centurion

    I havent yet, but I will be. Ive been preoccupied with my car hunt and trip planning. but yeah it is a good time to get into that.

  • @Ozzi said:
    I haven't done stocks, as of yet. It's something i'm eying up. Those tech startups are where to invest though. My brother however invested a bunch into the pot stocks, and so far has made a bunch off of that, even my cousin invested in those, and he hasn't worked for a year, cause his stocks are paying for his rent, food, extracurriculars.

    I havent invested specifically in pot..... other than for consumption. I think there could be huge profits to be made in seeds because of how the cannabis plant grows

  • MSQGannerMSQGanner Centurion

    1- good post about stock market advices
    2- i don't get old, i level up...jerk...lol

  • DoosDoos Centurion
    edited April 5

    Thanks, Ganner.

    @Law, Yeah.. and if you'd bought WEED yesterday you'd be up 3% today or APH you'd be up 5% or ACB you'd be up 10%.

    In a day.

    That's the fun with the stock market on the daily and that's why Warren Buffet says 'Go long, son.. go long.'

    'Cause then none of that daily shit matters until you're looking to sell.

  • Law212Law212 Centurion

    Oh I'm still buying in. I just posted it because I read it while at work. Not to knock WEED.

  • Law212Law212 Centurion

    I thought it was a good read

  • DoosDoos Centurion

    Oh yeah, for sure. It's so hard to convey tone through text. <-- I meant to post this days ago. Whoops!

    Also, WEED is down into the 25.xx's again. I've been waiting for it to get down to 25 or less for months. Very close now.

  • DoosDoos Centurion

    Lot of people expecting a slow sell off leading into legalization. If anyone is looking to take a position, watch your favorite ticker over the next week and see if it dips to a level that interests you.

    I wouldn't mind a nice slow bleed into late October. Just load up on more shares as the wheels really start turning.

    Hearing a lot of talk about a shortage. I'm not sure how that's going to affect the stock price.

    In the short term, it'll probably make them drop.. in the long term, it's probably good. Especially if it turns into a Wii Fit type of fervor.

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