Futures are, like the The Foosaaaah said very risky. For the reason that is you forget to, or cannot sell your position when you are "in the money" you'll end up owning what you bought and paying the price! Plus you'll have to store and care for your new purchase.
Unless you've been playing the market for a long time and understand it, futures can hurt you. Options trading can be less risky because depending on how you trade them you will know the total risk when entering the position (buying vs. selling).
The best way to start investing, in my opinion, is in penny stocks. You can learn the basics of tracking and reading charts and usually enter a position with little money. You may even be lucky and make some money in the long run. Don't be too bullish but stand firm in your decision not to back out at the first sign of loss.
The only way to make money in the market is if someone else loses, be smart and do your research. For new comers to investing the futures market is way too risky for the reasons listed above.
Even if you wanted to pursue an investment route in Futures or Options you’ll be hard pressed to find a broker that will allow you to risk so much with so little experience. They will have expected you to know the market inside and out, have a certain income and experience level with the market. Otherwise their neck is on the line.
If you want in, play it safe, start slow and work your way up. Check out http://finance.yahoo.com & http://finance.google.com to research companies. If you have CNBC you may want to check out Jim Cramer’s “Mad Money”. See http://en.wikipedia.org/wiki/Mad_Money.
You don’t have to trust a word he says, but you will learn something from the show and others on CNBC.
If you're looking for a cheap broker, check out TradeKing. I've had luck trading Options and stocks with them for almost a year now and their rates are very reasonable for a beginner.
Best of luck and don’t invest over your head.
2006-08-30 07:56:21
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answer #1
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answered by dreft 2
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