how to start investing,like what is the basic level for a starting investor?

Question

i want to learn the safe game of investing.i want to know the abcd"s of investing.
please tell me where to start and i am really interested to know.

Answer 1

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 4 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 are 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

Unfortunately there is not a "safe" way to invest. It's all a gamble.
However, there are some "safer" ways. I have found that DRIP's (Dividend Re-Investment Plans) are a very good and safe sound investment. There are many companies that allow you to buy portions of shares on a monthly basis w/as little as $25-50 a month withdrawn from your checking account. Over time your $'s and Dividends compound and add up quickly. Some better ones are Exxon, Istar Financial, Johnson Control, American Electric Power, Bob Evans and some Mutual funds allow this as well TIAA-CREF is one. This way you don't pay any expenses and have a diverse portfolio.
Also, Real Estate has always been a strong investment.

Answer 3

If safe means no risk, well there is no such thing available.

If "safe" means reasonable risk, balanced against somewhat larger gain, and a watchful eye to limit losses, yes you can do it.

If you want to game it out, go to Yahoo[ or any other site that allows it] and start a model portfolio, shadowing exactly what you THINK you would do in real life, including real commisions, and limiting your moves within a specific amount of capital you have to work with.
First, STUDY, and get a working knowledge of what the data listed in Yahoo KEY STATISTICS means, by reading the definations, and applying them.
Second, develop YOUR OWN method of picking stock issues you like, based on your own personal observation.
Check those stocks out, with Yahoo KEY STATISTICS.
Third, follow a series of SECTOR GROUPINGS, and find a sector whose direction has significantly and decisively changed. Find a stock in the best sector you like, which again passes your personal choice AND Yahoo's KEY STATISTICS.

THEN include that stock, in Yahoo Model Portfolio, in an amount to allow you to acquire 4 stocks and remain 20% in cash at any given time. You should pay attention to the BETA of the stock, for it will tell you how much to buy to attempt to reach an annual gain target.
Watch each price daily, and [according to Suzie Orman] with whom I agree, do not ever let a stock loss in any issue exceed 7% from your purchase price.
At the end of either every month or every quarter, sell the poorest performing stock, and split the proceeds and put them into the two BEST performing stocks, until you are satisified with your portfolios performance. Always have new stocks waiting to replace bad performers if you choose to repostion your porfolio that way. Ride your winners, sell your losers.
Now having modelled all of this for 6 mo's while monitoring and modifiying your operations, you should be able to follow Hoa's plan for education which will stand you in good stead. AT THAT POINT YOU MIGHT BE READY TO GIVE SOME OF THE WALL STREET SHARKS SOME OF YOUR HARD EARNED CASH.

Brokers for starting out? Mine is Scottrade, some like E-Trade, etc, there are good and bad online discount brokers, but neither E*Trade nor Scottrade is a bad one.

Good Luck

Answer 4

Always protecting your capital/principle at all cost by using stop loss order. Limit your loss. In the mean time, study how to invest the right way

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