And then she got back into the investing game.

Between my escapades with credit-card debt, house debt, car debt, school debt and savings I’ve never really been in the investing game. (That brief affair with mutual funds excluded) There was always other important things to focus on but I now know, I’m not going to be a millionaire unless I make my money work harder.

I’ve never owned individual stocks and I never knew what/when/where, how does one obtain those things? Eventually I got curious enough to start digging. I like doing things myself, even if I make mistakes. It took many hours of research online until I finally decided to open an account with Questrade, user-friendly, hands-on, great rates… it doesn’t get any better right?

I deposited a $1,000 and sat on it for a while because I was still scared and second guessing myself. That $1,000 has just been sitting there doing nothing. On Tuesday I finally, finally confronted my fears of the unknown. I opened Questrade’s online trading platform,  Questrade IQ Web, and spent some of the $1000 in my TFSA account:

Maybe they’ll make me rich some day.

I pulled the trigger on 15 shares of PWT @ $15.05. My main attraction to them was that 1) they’re dividend paying and 2) in a sector I would like to invest in and 3) I could buy a few shares relatively cheaply. An uneducated buy if anything. PWT has since dropped to $14.78 which is really a miniscule swing considering the grand picture but it’s hard to get over the auto-response of not liking red numbers… I just keep telling myself, it’s only $225.00 and I won’t be selling anytime soon (I think) (and yes in the future I will make bigger buys because it works out better cost-wise but this was my first purchase, so.)

I’ve had one other stock in particular in mind that I am really interested in, BMO, but decided to hold off for this week. I should do more research before my next buy, this one was rather on a whim. On a related note, I’ve been keeping an eye on the Money Pros Index fund challenge in which I participated. The goal was to pick three stocks before January 1, 2012 to follow through 2012 with a winner to be crowned at the end of the year. I picked EDU, HD and ENB for the challenge… HD and ENB are hanging in there (actually HD is killing it) but EDU is err, not doing so good. It’s killing my mock-money-pros portfolio dangit, or maybe now’s the time to buy EDU? I’ve got a lot to learn.

What’s the best resource you’ve found for learning how to buy, sell and hold stock?

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10 Comments

  1. Congrats for starting to invest.

    I assume the money you are investing is money you can afford to lose – as I know you have investigated all of the info about investing!

    • Yes, it’s outside of my emergency fund and I know that I could lose it all which is why I’m starting out small! I’m way too scared to put too much in stocks and have the company(ies) go bust and then I’m bust!

  2. like you, I basically have no idea what to do with individual stocks, (and no money) but what I look for is something in the consumer goods market – like cars, appliances, etc – people are always going to need a microwave and a stove!

  3. The best resource is obviously my blog! Ha ha.

    I have two finance degrees and spent a lot of time learning about investments, so I have a pretty solid background in investments.

    For most people, I advise starting out in diversified funds rather than individual stocks. It spreads out the risk in smaller portfolios.

    • I’m fully aware of risk and that I don’t have much to be risking but I find mutual funds through companies like freedom55 so… not sure. I feel like I am forcingmyself to learn about what I’m actually doing rather than listening to a sales pitch. Your comment got me looking at mutual funds again though. Once I’ve spent my $1,000 at questrade I may consider going with a BMO fund.

  4. If you plan on holding PWT for a long time, that little bit of a drop may not be so bad. If you reinvest your dividends, you are now going to be getting a higher yield, which means more shares from your reinvestment at the same payout.

    The best resource s basic finance and economics books and sites. Learning the basics of how the stock market works, and how to read financial statements as well as SEC reports will give you a much greater understanding of what you are getting into.

  5. Glad to hear that you’re getting into investing Renée. I’m at that point too. All of my investments are sitting in an RRSP until I’m more comfortable jumping into direct investing. Personally I’ve found the best resource to be investment bloggers. You learn a lot from reading their blogs and many are quite helpful with extra advice.

  6. Good for you that you took action!

    Personally, my moves are in the index fund realm these days. I have an MBA with a Finance major, so at one point I really enjoyed individual stocks. But at this point, I’m going the fund route!

  7. I hope you do more posts on investing/Quest Trade! This was helpful, thanks.

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