I am in my 20s and i want to invest for retirment but i want to learn to invest in stock, how can i do that?

Answer 1

First you need to get a good background in investing. Go to your library and check out several books on investing. "Investing for Dummies" is a good book to start with.

Next you should read "Security Analysis" by Grahm, Dodd, & Cottle, the classic work on fundamental investing.

Next you should read "Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications (New York Institute of Finance S.)"


Next you should go to Yahoo finance and set up a portfolio of stocks that you think might be good buys. Then track them for a period of time 6 months and see how well you did. This will verify whether your methodology is sound or whether it needs improvement. Pick at least 5 stocks. Some will increase in price and some will decrease in price but overall your porfolio should perform to your satisfaction. Compare your return to the general market such as the S&P 500 or other appropriate index. See if your return beats the market.

You will also want to learn about mutual funds. There is plenty of information on Yahoo finance and you might even find some books on investing in mutual funds. Be aware that 70% of mutual funds do not perform as well as the market in general. Learn about the different types of funds, open ended mutual funds, front end loaded mutual funds, no load mutual funds, closed end mutual funds, ETF index funds, bond funds, stock funds, sector funds, country and region funds.

At this point you are ready to start investing. Open a Ross IRA account. This is a great account to have because everything that it earns is tax free. It is a retirement account and you will not be able to withdraw from it untill age 59 1/2 without incurring a penalty except under special circumstances. Read up on Ross IRA accounts. You can open one with a stock broker or with mutual fund companies. You can have several but your contributions are limited to a certain amount each year--about $4000 but the amount changes each year.

There are several internet stock brokers who will execute your stock transactions at a reasonable price and will also purchase many mutual funds for you, but it is less expensive in many cases to purchase mutual funds directly from the mutual fund company.

Answer 2

dont invest in a stock if you want to invest for a retirement. Stocks are risky no matter what grade you buy them at. BUT the riskier th stck the higher the return. If you are willing to take the risk then get junk bonds which are rated BB or less. ANything above that usually has a stable return. but stocks are always up and down so you might want to invest in something like a CD or a ertificate of deposit where you can deposit like a thousand dollars (which i think is the min) for a certain amount of time, the min is 3 months and youll be paid interest on it. Interest rates are kinda high now so its the best time to invest. You can also havea money market account.

ALso with stocks, you r only gonna get like a few dollars per stock if your stock goes up. you need like hundreds to thousands of stocks for you to actually make a profit.

good luck

Answer 3

If you have a Community College in your area, take a course in Personal Finance. You can also check with any college to see if they have courses on investing in stocks.
Investors Business Daily is a good source of information.
Consider mutual funds. You invest money and let the professionals buy and sell stocks. If you earn money, you stay with the mutual fund. If you lose money, there are plenty of ways to compare the performance of your fund to other funds. If all the funds are losing at the same time, you just have to live through a down turn.
If you own an individual stock, it could drop in value when all other stocks are going up. The company could go "Enron" and you would lose the entire investment. With mutual funds, you will not lose your entire investment.

Answer 4

As you see from the answers you got, people disagree.

In investment, the reward is proportional to the risk, but .
over the long term, the stock market has been more profitable than any other form of investment, including property. However, it is much riskier than bank deposits and you could lose all your money. My advice is:

1) Join your employer's pension scheme. Top priority.

2) Invest regular amounts in a mutual fund tracking the S&P500 market index

3) Invest regular amounts in a mutual fund investing in the Far East.

Enjoy any money left over.

Answer 5

To start with : take route through mutual funds.

Select a good mutual fund with good track record and target a monthly amount every month in their "growth" scheme under their "Systematic Investment Plan". The fund will go on allotting you units every month. For the same amount, you will get more units if market goes down and less units if market goes up.Ultimately you will find that most of the units were bought at less rate. Equities and equity based mutual funds are expected to give very good return in future and by the time you retire you will have good amount which can invest at that time according to your requirements.

Slowly, you can take interest in direct investment in shares also but in that case you will have to devote time to churn out your portfolios time to time.

To start with study BusinessLine newspaper every sunday.

The above reply is in Indian context.

BEST OF LUCK

Answer 6

read anything by Warren Buffet. also, you can pick up tips from www.thestreet.com. yahoo also has some pretty good articles on investing in the stock market.

Answer 7

Yes you could learn invest by yourself. it is your money, you should know how to do with it. for starter check this site out.

http://www.pathtoinvesting.org/index_fla...
http://www.stockcharts.com
http://www.streettalklive.com>... university. a lot amount of information. It will serve you well
I accumulate in good amount in 401k at the young age.I could share with you. when consider invest in stock market. you should consider basic 3 things:

fundamental analysis==(economic data,finincial health, management, business model, competetion)>>what to buy

technical analysis==(chart+indicator)>> when to buy

Sentiment/schycho analysis==>>mood of investor, Contrarian point of view.
Market cycle===>> check out book Trader Almanac by jeff hirsch will give you inside stuff
When you combine 3 thing, It is one of the powerful knowledge goinh with you for the rest of your live

At the age of 32. my 401k is amassed 71,000.00 and 30000.00 in taxble account. by follow simple rule

Answer 8

enjoying the inventory industry is like enjoying poker...you no longer purely play your enjoying cards, you play the different gamers on the table. Many awful employer's inventory skyrocket because of fact of investor/analyst hype. Many large compay's inventory go nowhere because of fact the employer/industry is "uninteresting" to the hyping industry makets. To make $$$ contained available in the industry, get in on the vanguard of the hype & sell while all newswires and analysts love the inventory because of fact quickly this inventory will crash while the anaysts and marketmakers start to court the subsequent inventory. In different words, the inventory industry isn't a numbers activity, it rather is activity of interpreting human nature.