I'm a new investor/buying stocks help?

Question

Does anybody have any advice
Any stock buyers?
what should i look for?
explain stuff because i am only 11 and i don't know that much..

Answer 1

Go to your library and check out the books on investing. Start there. There are two approaches to buying stocks, the technical approach and the fundamental approach. The first evaluates stocks based on the stock charts. The second evaluates stocks based on the fundamentals of the company. Both are important to understand.

Answer 2

It depends how much money you want to invest and with which goals and what your risk tolerance is.

Trading stocks successfully has a lot to do with experience. Without experience you normally lose your money out there. So - if you have a nice sum to invest you need to get a stock broker to work for you, a financial adviser.

If you have only little money to put aside and you want to do this for savings only then you should pick a low risk low expense mutual fund. Like an S&P Index fund (expense ration smaller than 0.1%). Vanguard funds are cheap for example.

On the other hand well managed funds with higher expense rations perform better. But it's an art to pick good ones. Fidelity has some good performers.

Stocks....if you don't want to start with funds but stocks...you should at least try the very consevative stocks, large companies with a god brand and dividend payments. But do your reserach on the fundamentals. Even large companies sometimes have trouble brewing.

Well - and then watch the market. Read in the financial message boards everyday. Start with a test portfolio (for free) and watch your stocks and find your trading system. If you do this very disciplined every day then after a year you may be ready.

There is always risk involved. If you think you can make easy money on it - it's mostly not true. So be careful.

Answer 3

go to www.sharebuilder.com You can buy stock there in any amount and for $4 per buy. They have a research tool as well, so you can look up stocks and see recommendations. Buy a Smart Money magazine and look at the stocks they recommend, they are usually right on.

You might try investing in mutual funds, they are more diverse and less risky,

Buy a book like Investing for Dummies - not that you are a dummy, but it explains things in clear easy terms which I really needed when I started.

Good luck, starting now, you will most likely be wealthy one day. Keep it up and let us know how you are doing!!

Answer 4

If you're 11, just buy stocks of the companies you have an interest in.
Then keep reading up on investing as much as you can and adjust your portfolio accordingly.

If I were you I would put my money into value stocks and blue chips. Don't gamble on over the counter stocks (aka "pennystocks," labeled sometimes as .BB) even though you could own hundreds of shares. Go with companies that will be around when you grow up. Like Microsoft, Viacom, Philip Morris, Coke, Disney, etc. Ask your parents for advice or hit your local library. Much fortune to you.

Answer 5

i'd actually avoid blue chip stocks.....the Dow is entering at least a 10 year BEAR market and those big names won't hold up.....you can make the biggest % gains in penny stocks actually. Just remember to not chase stocks that are already running unless the news is really that good and be agressive to sell when they stall out and protect your profits......then buy something nice for yourself and take your time looking for the next 'big thing'

you don't need to always own a stock...being in 'cash' is a position too!!!

in fact, you only need to be invested in a stock 15% of the time to enjoy the biggest gains

as you can see, there is all kinds of advice out there but nothing will replace your own experience...and that will probably involve losing money at times...just call it 'tuition' HAHA!!