I have a company in mind, but I don't know what broker to use or how much to invest in a company.
2006-09-07 04:40:21 · 5 answers · asked by Mari 1 in Business & Finance ➔ Investing
Many beginners start with mutual funds or one sort or another. They offer diversification that purchasing just one or a few stocks does not provide. However, they do not offer as much fun. But they are safer for beginning investors.
Before beginning you should consider making an investment in your education of investments. There are many books that have been published on the subject. Start with a basic book such as "Investing for Dummies" and "mutual funds for dummies". Your library also most likely has a good selection.
2006-09-07 05:28:43 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I agree with Digital Genius, you should diversify, in two ways:
1. By investing in at least 25 stocks at any time, like studies have shown. If you screw up one or twice, the vast majority of your portfolio won't suffer so much.
2. By not being exposed to stock market crashes. You do this by investing half of your money in good, undervalued stocks with the hope that their prices will go up. With the other half, you can bet on overvalued stocks to go down (short selling or shorting). At the end of the day, you'll have a market neutral portfolio, unaffected by stock market behavior. In other words, you can make money, whatever the market.
More about this on my site, the link is below.
Let's make money!
Good luck
Marc
2006-09-07 04:52:51 · answer #2 · answered by Marc H. Mayor 2 · 0⤊ 0⤋
If you want to do it yourself, pick one of the on line trading firms (E*Trade, Scot trade, etc.) I like Fidelity. Then research the stocks you think you want.
If you don't have any particular stocks in mind; try an ETF (Exchange Traded Fund) that covers the total market. That way you get board coverage in one stock and don't have to worry about picking a losing stock or tons of research. There are several board market ETF's out there (Vanguard, Powershares, iShares, Rydex...etc.) They also have sector ETF's if your looking to invest in a more focused area but still not sure which stocks to pick.
2006-09-07 05:01:54 · answer #3 · answered by keith1512001 1 · 0⤊ 0⤋
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 74,000.00 and 30000.00 in taxble account. by follow simple rule
2006-09-07 14:40:14 · answer #4 · answered by Hoa N 6 · 0⤊ 0⤋
just remember, diversity.
pick 5 different areas to invest in.
that way if your sole pick bombs. the other 4 cover your losses and may even make you money.
2006-09-07 04:43:19 · answer #5 · answered by digital genius 6 · 0⤊ 0⤋