I am going to invest a small amount for first time, but I do not know where to find a good investment?
2006-09-19 03:19:39 · 12 answers · asked by College Guy 4 in Business & Finance ➔ Investing
If you are asking that question in this forum, you are obviously a naive investor. You should avoid buying individual stocks and put your money in a no-load mutual fund.
The fact is that if anyone knew of a stock that was undervalued, they would buy it & that would bid up the price, making it less likely to be undervalued for later investors.
Academic studies show that new information gets imbedded in prices almost immediately. This means that if someone tells you here that there is good news for a company, then that good news is already priced in.
The only way to beat the market on a regular basis is to have private information. There are three ways to get private information. One is to have insider information (which is usually illegal to use in trading). One way is to pay for it -- taking away the advantage. The third way is to gather up all public information on your own & glean information from it -- leading you to realize the private information that causes the public information. In other words -- use fundamental analysis. Since there are other people doing this analysis on big firms -- the payoff isn't going to be high, since they will probably get the information before you.
All of this means that profits can be made in smaller firms where no analyst is covering the company. You can be the first to learn what the public information means. Unfortunately, doing this involves a skill and knowledge that most people don't possess. And it is certainly a knowledge that you aren't going to learn asking here.
No load mutual funds are your best bet.
2006-09-19 04:23:03 · answer #1 · answered by Ranto 7 · 1⤊ 0⤋
Right now tech is strong. Stay away from commodities. Retail should pick up next month.
The amount of money you have will determine how you place it, but finding an investment strategy is critical. Do Not just buy something in hopes that it will go up. When will you buy? More importantly, how much gains do you need to sell?
Check out my 360. It'll point you in a direction (whether it be the right direction depends on what you want to do) At the very least, try to make some mock trades before you start trading. Be ready to do some research. I do about an hour a day for each stock that I trade. Be prepared to lose money as well as make it. All this being said, if you are able to get started in the stock market, it will be the more rewarding thing you will do. It's a different life to have your money make money for you. Good luck.
2006-09-19 10:54:00 · answer #2 · answered by JustJake 5 · 0⤊ 0⤋
Firts off you say a small amount. If you are Bill Gates then a small amount might be a few million. If you are a young worker then it may be as little as one hundred. If you intend to add so much a month to the invertment then a fund would be about the only way to go. An IRA or 401K might even be the thing for you. Stocks are a gamble no mater how you do it. Some make a lot and many loose more than they can afford to loose. I used to deal in stocks some and on average I did make money but not as much as I thought I should have. Some stocks pay good dividends and are worth buying and holding on to. So much to know so be careful.
2006-09-19 10:34:58 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The ones that are going to go up... :)
This is a reasonably good way to pick winning stocks... limit yourself to the technology and/or service industry, find a stock at or near it's 52 week low, with a P/E ration of 7 or above. Buy ten of those and more of them will gain than those that lose.
Otherwise, invest in land - it's the only thing nobody is making more of.
2006-09-19 10:28:34 · answer #4 · answered by Pundit 3 · 1⤊ 0⤋
I don't no how small you what to invest or how long you plan
on holding. A online site I like is http://www.sharebuilder.com/
this will allow for you to make weekly or monthly investments. Been with them for about six years and love it.
As far what to buy, start looking at companies like PG, CL , ACV and JNJ. They also pay a nice little yield.
2006-09-19 21:29:57 · answer #5 · answered by Grandpa Shark 7 · 0⤊ 0⤋
No individual stocks. Get a vanguard index fund or ETF. If you want a stock "tip" go to the casino. At least there you will get free drinks when you lose your money.
2006-09-19 14:01:59 · answer #6 · answered by tank_dogg2006 1 · 1⤊ 0⤋
Invest in real estate or in Gold
2006-09-19 10:28:09 · answer #7 · answered by king 4 · 0⤊ 1⤋
First you need to learn how to spell and write a correct sentence. Then think about buying stocks.
2006-09-19 10:35:32 · answer #8 · answered by Anonymous · 0⤊ 1⤋
How much are you going to invest and how long are you holding your stocks?
2006-09-20 18:46:13 · answer #9 · answered by Anonymous · 1⤊ 1⤋
Johnson & Johnson or Proctor Gamble. Wouldn't advise GM or Ford right now!
2006-09-19 10:25:00 · answer #10 · answered by Anonymous · 1⤊ 0⤋