Im planning to invest in the stock market, Im new at this but I want to try for a change in life, some advise?

Question

I live in New York FYI....

Answer 1

Here is some standard advise:

More and more, we are taking on the bulk of the costs of life. Corporations are cashing out pensions and moving towards the 401k, they’re putting more of the cost of medical insurance on us by way of higher premiums, copays and deductibles. We are funding more for disability, and long term care. Social security may be privatized in which case some very simple math will show most of us will do worse.

If you are 25 today and you retire at 67 with a million dollar investment portfolio, that will safely generate $60K/year. But when you are 67, that 60K will only have the buying power of a little over $16K/year. It gets worse though, because at 67, you will still probably have 30 more years to live and that 16K will shrink each year until it’s only worth $8K/year at age 90.

A million dollars isn’t what it used to be… and it will be even less in the future.

So…. We must all become educated investors much more so then our parents were and start sooner. These are some basic steps to get you started. You’ve got to jump in now.


Step 1.
First decide what kind of brokerage you want to work with. You can open a brokerage account in your bank, with a large full service brokerage or an internet brokerage. I find when I get help, most people want to sell me things that are better for them…. So I use http://www.scottrade.com because it’s cheap and easy with low frills. I like their streaming quotes and I do my own research and make my own investments. But any low cost internet brokerage service is fine.

Step 2. get a subscription to Barrons or Investors Business Daily… Do this for 6 months or a year. At first, It seems a bit mysterious, but pretty soon you start to understand the terms and things that investors are looking for and what they are afraid of

Step 3. If you have some money to invest, put it in 3 month CD’s right now. First the market is unstable and second you have some homework in Step 3 to do before you do any investing.

Step 4. Go out to the internet and search on the following subjects. Become very familiar with the concepts.
Asset allocation
Long term investing
inflation
Roth ira vs ira
Large med small cap
Value vs growth
Indexed mutual funds
No load mutual funds
ETF
Sector funds
Bonds CD preferred stock
dividends
International funds
Market cycles
volatility
Fundamental analysis
Technical analysis
In most cases, I think it is wise to use indexed mutual funds and ETF to build the base of your portfolio.

Step 5 go to http://clearstation.etrade.com/ and sign up for a free account. Play around there by looking at graphs and fundamentals. If you click on the graph names, you will get clear information about what the graph is based on and how to interpret it. I think it’s also a good idea to pretend you have $10,000 and start buying and selling on paper. Keep track of where you are each day for a month… It’s a lot easier to lose play money then real money….
WARNING: don’t rely on technical analysis alone. These graphs a good at telling you WHEN to buy and sell, but now WHAT to buy.

Step 6. It’s always a good Idea to see a CFP (certified financial planner). Their job is to work for your benefit, not to sell you investments. They can cover subjects like employee benefits, insurance, budgeting, living trusts, 401k, taxes and real estate as well as investment types and investment types to keep away from.

Always strive to do your own research… you’ll find everyone sounds like an expert so take everything people tell you with a grain of salt. It’s not easy in the beginning but soon you will be the expert.

Don’t get involved with futures, currency, options (unless you get stock options at work), commodities, annuities or other derivative type investments at this time.


Good Luck

Answer 2

#! diversify, #2 read everything you can about what is happening in the world, #3 spend a little (10% or so) in speculation...look for singles and doubles (when you get lucky.) But, hit a grand slam every now and again. Depending on your age, income, expenses, etc. look to take a bit of a risk now and then. If congress passes a law mandating that everyone must drink coffee, what would you look to buy? Use that kind of investigative discipine in your research. Most important, don't be reluctant to take profits. (As Kramer says, hogs get slaughtered.) And, above all, have an exit point/strategy. Don't ride your 'turkeys' to the bottom. Every smart investor has a stop out point. You too need to develop one. Once you have it, use it religiously. Good luck. Believe me, there is money to be made!

Answer 3

Check out books by Suze Orman who approaches the topic(s) in a very down to earth manner. She offers a risk assessment test that can help you decide if stocks are the way to go for your personality type.

Answer 4

1) don't try to pick homerun stocks.
2) use a well diversified portfolio (ie, small cap, large cap, value, growth, international, emerging markets, bonds etc.).
3) check out http://www.ifa.com and http://www.fool.com . great sources of information.

Answer 5

Read some stock tips and quotes on this site

Answer 6

find an agent...and start small, then work your portfolio up. research the companies and get second opinions before you purchase stock.. also, consider what you are willing to pay the agent in commisions, some have higher commisions than others. research, research.......research

Answer 7

This is a good site with lots of info:
http://www.eckleswealth.com

Be careful about where you get your advice (such as on a free board like this...). Remember, it's worth what you paid for it!!!

Answer 8

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 9

Sure. Research the market and what makes it tick for about a year. Then, you are on your own.

Answer 10

I've been exploring Sharebuilder.com and it seems like a pretty good starter site. Best of luck!