how does buying stocks works. how much money should i start with?

Question

i was interested in buying stock and many websites allow me to buy stocks without any minimum.what are the step in buying stocks. i am a begginer and and i am young. i dont have money so i dont want to lose it in stocks but i want to earn money from stocks. i want to start from mabye speniding $50 and then if it works i will go up. someone who know how all this works please let me know.thanks

Answer 1

Here is what I would do in your situation:

1. Start saving money in a money market fund. An easy one to start with is to just open a payPal account. Their MMF is currently paying around 5% interest, and it's really easy to deal with. There are other similar choices.

Investigate no-load, index mutual funds with low initial investment requirements. There are quite a few with minimum investment requirements of $1000.00. An index fund will automatically give you a diversified portfolio, because they buy stocks that make up one of the major indexes, like the S&P 500. A good example is Morgan Stanley Total Market Index A LW (TMIAX.LW). When you have accumulated the minimum, open the mutual fund account.

Arrange for your investment to be automatic, from the very beginning. Either have a portion of your paycheck sent to the account, if that is available to you, or authorize the account to draw a check automatically from your checking account. When ever you get a raise, use half of it to increase your investment amount.

Start learning about the stock market. Morningstar's website has some good beginner's courses for free.

When you have $10,000 invested, pull out 1/4 from the mutual fund, and invest in common stocks your learning has lead you to.

Consider doing all the above within a Roth IRA. That way, your money will accumulate tax-free, and withdrawals when you retire will be tax-free. Your wealth will build much faster that way. Only invest outside the IRA when your investment funds for the year exceed that year's Roth IRA maximum investment. Also, some mutual funds have lower initial investment requirements for IRAs.

Good luck!

Answer 2

Dude, don't even bother if yo have less that $1000. The cheapest you can trade that I have seen is $7.00, so if you only have $50 then you lose 14% of your $$$ right off the bat. Then if you want to cash out its another $7.00, and that 32% of your dough! Few stocks will up 32% in short time.

Save your $$$ until A) you have enough to hit it for real, and B) you can affors to lose your cash and not be in a really bad way because of it.

Good Luck

Answer 3

Save at least from 5k-10k, then open online brokerage like Etrade, Scottrade, Ameritrade. In the mean time, learn how to invest the right way., how to protect your principle or capital.

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 4

Save your money until you get about 5 thousand dollars then call around and get a broker.

Answer 5

I think its like a 2 gran min

Answer 6

read tips and articles on investing and stocks on this site