Go to your local book store or maybe to your local library and see what books they have on investing in stocks, bonds, and mutual funds. Start with a basic book on investing. After you read it get another book on investing and read it. After you have read several books, go to Yahoo finance and set up a practice account, picking 5-10 stocks and 3 mutual funds and track them for 3 to 6 months to see how they do. Pick different stocks in different industries so you can get an idea how they perform. Pick 3 different types of mutual funds. Yahoo finance is an excellent learning tool.
Of the stocks you pick, you will be very fortunate if they all increase in price over the time period. Shoot for 4 out of 5 increasing. That should be your goal.
2006-08-16 00:01:11
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answer #1
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answered by Anonymous
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There's no need to lose money when you start out and though reading up on investing is important it shouldn't be a reason to wait to start.
First of all you need to take a look at your age and income and you're aversion to risk. Usually the younger you are the higher risk you can take.
First rule of thumb, research research research, always read the prospectus and pay special attention to the historical performance of the fund/stock before buying into it.
I don't recommend buying stocks when first starting out because stock picking is something like a science, stick to mutual funds and make sure they are no load. Vangaurd is good.
Everyone needs a diverse portfolio because the point is to earn not lose. You need a well proportioned mix of
1)safe investments, bonds or bond funds, CD's, this will be your cushion.
2) I personally think every portfolio should have at least one index fund which follows total markets instead of individual stocks and investments Vangaurd 500 is excellent and no I don't work for them.
3) The rest is up to you and you will decide what you want based on your research, reading and risk aversion. You may want to stay safe and stick with mid and large caps, blue chips, REITS etc...or you may want to get more risky. The goal is growth. Just remember that it's better in the long run to hold on to investments, look for things worth holding on too because frequent trading is a waste of money in transaction fees alone.
2006-08-16 09:34:24
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answer #2
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answered by Anonymous
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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
2006-08-16 11:40:11
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answer #3
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answered by Hoa N 6
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Make your life of it, expect to lose alot at first.
OR
Be eaten alive.
2006-08-16 04:49:23
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answer #4
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answered by handsomelittlegentleman 1
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