What is A good amount of mony to invest in one company for beginers to the stock market?

Answer 1

If your a begginer in the stock market try www.sharebuilder.com
or www.scotttrade.com then get yourself a copy of kipplingers or smart money and do some reserch. Remember too keep a ballance or stocks and bonds like 70% stocks 30% bonds ect. Mutual Funds are another option you have as well too.

Answer 2

You want to diversify across six or seven stocks. Any more and you are duplicating and have trouble watching them all. The amount of money is irrelevant unless we're talking millions of dollars.

You don't say how much money; that will llimit what you can do and decide your category, how much you can divest, and how much risk you take or leverage you accept.

If you have a strong stomach for $100 price fluctuations in a day (that's $10,000 on 100 shares), you can buy something like Google.

The "when" is more important than the "how much."

What is your definition of Long-Term? If you had bought stocks anywhere around the 2000 high in the stock market, you would still be waiting to get even after six years, and wouldn't mind waiting another seven years to make a profit if you are truly a "long-term" investor.

The "Buy-and-Hold" strategy really doesn't hold water if you consider it depends on when you "buy." You might go 25 years without a profit, if history is any guide. But if that is your deal, then go for it. But you need not be limited to only three choices. All three of these choices are always "in" the market.

Otherwise, you have to consider that the Dow has again approached that all-time historical high set in Jan 2000 at 11,721 and failed there. Looks like a Double Top to me, but some people say we could double that again. Logically, this is one of the scariest markets I've ever seen in two decades of watching it; just pick something that is stable, anything. Doesn't exist, does it. Anything could send this market over the edge to the great void. But hey, it might double too, who knows.

For most people, the name of the game is capital preservation. You don't invest when the market gets too risky or too frothy or is nearing a market top or an old market top, or when the market is overpriced, or unstable, and all of these things are true today. There really is a time when cash is King. That 2.5% CD is going to look pretty good when everyone else is cryin' in their beer about losses. Or the market could just go sideways to work off the excesses, but either way, you're safe if you're out. Wanna throw the dice, go to Vegas.

If you wish to research the “Buy and Hold Strategy” further, or perhaps trade yourself, I recommend two book titles. One is called "Which Is Better, Buy-and-Hold or Market Timing?" The other is "Do You Have What It Takes to Be a Market Timer?" They will give you plenty to think about.

In my mind, none of your three choices are very good. A financial planner will just have you invested in the other two. Stay out a month or two, and see where the wind blows, and you may find some real bargains then.

Answer 3

I always say, if you want to buy an individual stock in a brokerage accoujnt, never buy less than $2,000 worth. Why?

It's gonna cost you $10 to buy it and $10 to sell it. That's $20. On a $2000 investment that's 1%. A good annual return on something is 8 - 10%. So if buy and sell you've made 7-9%.

But if you Buy $500 worth, now you need to take off 4% from your return, so you'll only make 4-6%. If you put your $500 in a CD, you would have made the same return with a LOT less risk.

But for that reason, I think Chui's answer is NOT good advice.

Jacob said do 100shares...I disagree with this as well.

Number of shares is arbitrary...If a stock is at $100 a share, and I buy 20 shares. Or if I buy 100 shares of a $20 stock, the investment is still going to cost me $20 to buy and sell. There is no extra charge for odd lots. So what difference does the number of shares make? Unless you are writing calls or selling puts, having multiples of 100 is irrelevant.

Answer 4

I wouldn't look at money wise, but share wise. If going to start investing and have the money, I would go with a 100 shares of the stock you want to own. This is just a good way to go with investing as a start. Also look for low priced stocks or ones that are at a low price but have history of being high. They should go up for than and you can get some money earned.

Answer 5

Never invest more than you can afford to lose. The market is volatile and you could lose most or everything you invest. Also, it may not be the best time to get in - I've read the market will be headed down for a while. My investments have been dropping for a few weeks now.

Answer 6

There is not a set answer. Start by playing with a bunch of actual penny stocks and build your confidence. Even with penny stocks and the learning curve, make sure you take it very seriously. Then go from there. Very in the learning curve dont put more then $500.00 in any one stock and put in as miniumum of $100.00. Play with at least 10 different stocks. This actually will show you if your money grows or shrionks. Learn and practice for at leat 1 year but build a syatem and take notes. Each persom has their own style and you should as also. .....Good luck and take care...........

Answer 7

5% of your total portfolio is a good amount to invest in 1 company.
If you don't have much to invest try a mutul fund or an exchange traded fund. Which fund depends on your objectives.also indexes may be suitable for you.

Answer 8

If you are a first time investor select three A group stocks and distribute 25k equally and try ur luck, may be with three months time frame

Answer 9

Usually about 100-500 bucks because you dont know what your doing and hey, if you are lucky you might make some money