How To Start Investing Or Trading Or Both?

Sep. 19, 2022 5:21 PM ETBND, BNDX, BWX, SCHE, SCHF, SCHP, SCHZ, VTI, VTIP, VWO, VXUS, DOG, SH, PSQ31 Comments
O. Young Kwon profile picture
O. Young Kwon
487 Followers

Summary

  • The article is mainly to write a handy guide about how to start “Investing and Trading” for various investors.
  • The top-to-bottom is my base. A recession is likely not in the near future. The Terminal rate is 4.5%. A bull market (started on Mar. 09, 2009) is still with us.
  • As a long-term (5 years or longer) investor, you can start investing anytime.
  • The only matter is to select a minimum cost and the best quality investment products and the services of brokerages and mutual companies.
  • For long-term (at least 5 years) investors, a dozen ETF templates are illustrated for your convenience.

Wall street sign in New York with New York Stock Exchange background

naphtalina/iStock via Getty Images

We had two outrageous stimulus policies: 1) the Fed's (without help from the fiscal side) to deal with the 2007-08 financial crisis, and 2) the fiscal policy to counter the 2019-20 pandemic, (which eventually forced the Fed to act).

Both

This article was written by

O. Young Kwon profile picture
487 Followers
O. Young Kwon, a NYU Ph.D. in Economics (1980), had worked in the security industry for ten years as a Registered Investment Adviser (RIA). He taught Macroeconomics (CUNY, Staten Island) and Statistics (Rutgers, Newark) during 1979 to1981. In the first half of 1980s, he, as a full-time Research Associate, researched at the Center for International Business Cycle Research (CIBCR) (with Geoffery H. Moore) on business cycles, growth cycles, international indicators, composite indexes, and forecast of business conditions and inflation. Prior to his academic career, he was an Economist/Bank Supervisor at the Bank of Korea (the Fed's counterpart) for ten years (1963 - 73). In 1971, he visited the Federal Reserve Bank of New York, sent by the Bank of Korea: He studied the long-run central banking in the computerized environment. He had been a conservative investor, targeting a reasonable investment goal (inflation plus 5%), by setting well-diversified portfolios with Vanguard and Charles Schwab Exchange-Traded (Mutual) Funds (ETF) in the long run (5 to 7 years) until 2020, as shown in my various 20 articles.In recent years, significantly increased market volatility induced mainly by the more frequent online trading pattern, however, forces investors towards somewhat aggressive trading to gain more or lose less. It is a very serious challenge to conservative investors like him. He has traded in very short terms, based primarily upon his (manual) real - time framework. It successfully provides him with the turning points in a given session. Now, he has invested in very-short terms (anywhere between a few seconds and a couple of sessions) in two trading accounts in Charles Schwab and TD Ameritrade (whit 40% of his nest egg).  He also has had two internet savings in Marcus: Goldman Sachs with (the remaining 60%), earning 1.7% of the annual percentage yield (APY) which is daily compounded and FDIC protected. (if you're an investor older than 70, my portfolio might be right for you in the current market condition). He studied at NYU under Oskar Morgenstern (Economic History, Game Theory), Wassily Leontief (Input-Output Theory), Fritz Machlup (International Finance and Trade), William J. Baumol (Economic Theory and Operations Analysis), M. Isaq Nadiri (Macroeconomic Theory), and Edward Wolff (Econometric Modelling). He worked on various research projects: The input-Output Framework of the U.S. Economy (Leontief), U.S. Productivity Measurements (Nadiri), Knowledge Distribution (Machlup), Firms, Games, Decisions (Baumol), and U.S. Household Spending and Saving Behavior (Wolff). His Doctoral Thesis under Machlup (1980): Theory of Foreign Exchange and Economic Policy.(UCONN MA in Economics 1975, Seoul Nat'l U BA in Economics 1963, Kyung-gi H 1958. Pohang M 1955, and Pohang E 1952 for His Dear Alumni & Friends)

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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