OK, so noobie me used WealthSimple to gamble a few dollars to learn about how the stock market works.
So I bought 36 shares @ .28 cents apiece of some shitty little gold mining company called Argonaut.
Their value shot up to 39 cents yesterday because of news it's being eaten by a slightly bigger fish called Alamos.
Can someone ELI5 what this means?
News release, with stock stuff in it:
I get the sense that I'm about to be winning, but I'm not sure what to do.
If you are going to buy stocks in a single company, you should do it with companies that you use and who make products or services that you like. It is still gambling, but your odds are much better. My Amazon stock has been making me a killing for the last ten years.
Penny stocks though are no better than buying lottery tickets.
If you are serious about investing, stick to mutual funds. If everyone just put their money into an S&P 500 fund, 99% of them would end up better off than from what they are currently doing. To beat the S&P 500, you need to be very lucky, or have the ability to see the future, like Paul Pelosi.
I can only really afford penny stocks at the moment, though it looks like one or two of those might be a bit ghosty, they just don't do anything.
I do have a mutual fund (and a TFSA) through the bank that I deposit a little bit into every month, been doing so for a few years now. I figured it was time to "diversify" a little bit, and there's no savings bonds here any more.
Then you should save up until you have enough to get into a mutual fund. For Fidelity, it is only $100 per fund IIRC. I use Vanguard, and their lower limit is $3000. But once the fund is opened, you can add to them in whatever amounts you want.
Or you could buy an ETF if the upfront cost of a mutual fund is too high. As long as it's not too esoteric, you'll probably find one mimicking a mutual fund, especially if it's normie shit like the S&P.