So I decided to start gambling

[Markbnj]

That's just crazy talk! Real Americans know Gut Instinct wins out over "facts" and "sense" every time!

If I'd listened to nonsense like that, I'd have all my stock money in index funds and ETFs, and I'd have enough spare money to buy toys for children's hospitals every Christmas!

Stay the course Red Squirrel! Get rich quick!!

Haha, I waited until I was in my 40's to take that advice. Wish I had started a long time before then.

 

[Humpy]

If your goal is to buy something and sell it for a higher price, you should probably understand what a good buying and selling price is eh?

A "good" buying and selling price is a separate issue beyond a simple goal of selling for any price above the purchase price.

 

[Jeff7]

Investing is super easy if you're just talking about equities and bonds, gets a little more complicated when you start doing options and other stuff. I took a few grand (tax return like you) years ago and jumped in the pool at TDameritrade.

I started off buying what I knew (had some MSFT, ATVI, INTC etc. etc.). I think I made like $200. After capital gains taxes It left me with chump change. I remember I made out like a bandit owning Ford for about two months, made like 3g's.

Really what you need to do is read a book on an investment strategy. Specifically this one:

Linky

Made about 9 grand last year off of my piddly 60k in the market. Granted I think everyone is doing well since we're coming out of the recession.

Or this.

Or don't even bother spending the money on a book.

 

[KMFJD]

It's super low right now, it's going to go back up as it usually does. But of course I could be wrong. That's why I call it gambling. I'm not sure yet if I want to invest directly into specific oil companies or some common stocks that have multiple companies in it. Still have to read up more on how all that works. Of course look at graphs and stuff too.

I need to read up more on stock market before I actually make any major transactions though. I just at least wanted to open the account, probably play around with penny stocks for now.

Debating on making it a TFSA as that is an option. I already have a TFSA with my bank though so I'd have to transfer it out. The downside of TFSA is that it's capped, and it's hard to know really when you're at the cap since it's accumulative and not based on balance. I don't imagine I will actually hit the 10k cap in a single year just from trading though so it is an option. I think the key to TFSA is to not dip into it too often, so that way your balance is close enough to your cap and it's an easy way to tell. You can always take some out at end of year when it resets. How much do you get taxed on stocks usually, is it half? Is it also just the profits that get taxed or everything you take out? Ex: I invest $50, it's now worth $60, and I take it out, do I get taxed on $60 or on $10?

Your MyAccount should show you how much room you have left, i think there's another service that provides it online as well. I believe the total contributions so far is $41,000 and the limit is reverted back to $5,500 this year. You should definitely take advantage of it, tax free money is nice.

 

[Red Squirrel]

Your MyAccount should show you how much room you have left, i think there's another service that provides it online as well. I believe the total contributions so far is $41,000 and the limit is reverted back to $5,500 this year. You should definitely take advantage of it, tax free money is nice.

Oh did not realize there was other ways to see it, I will have to look into that. My bank does not show it. But yeah think I'll look into what it takes to transfer it out to the stock broker system. I only use my TFSA for play money anyway, so it wont be any different. My current TFSA is just a standard savings account, it does not even have any kind of investments built in.

 

[brianmanahan]

Oh did not realize there was other ways to see it, I will have to look into that. My bank does not show it. But yeah think I'll look into what it takes to transfer it out to the stock broker system. I only use my TFSA for play money anyway, so it wont be any different.

TFSA should be easier on your taxes than a regular stock broker account though. you can realize gains and not have to pay any taxes.