STOCK MARKET-minimum inventment?

Question

What do you think is a good amount to begin investing with? Would you say 200 is too small of an investment? Do you have to invest 10's of thousands of dollars?

Answer 1

A good amount is what you can afford to do without. You can invest small amounts such a the 200 you mention. But your investment won't be diversified which is one general recommendation. And, most often, the commission on stock is a flat rate so the portion of your investment that buys you nothing will be significant. You might think about mutual funds to get your feet wet.

Answer 2

I opened an account with $5,000. This is my "play money" or risk capital. Again, if you are a novice and want to play the stock market, assume that you could loose all your money. This concept will give you an idea on what you're willing to risk.

On a side note, I would suggest taking an investment class at say the local community college. They will give you an the basics - enough to get you started.

Answer 3

Stocks are a good investment. Over the course of history, they average, roughly, an 11% return.

The trick about stocks is, you have to pay a fee when you buy or sell. So if you buy $200 of stock, and pay $10 for your stock broker to buy it for you, then it goes up 10%, and you sell it for $220, with a $10 fee... The stock gained you $20, but you spent it on buying and selling it.

Answer 4

My son started with blue chip stocks at $25 per month. Its diversified. Now he's gainned enough to be in the bigger investments

Answer 5

Depends if you just want to buy and sell or if you will be trading options. Great E-Book (free) i found can be downloaded at http://www.masteryinwealth.com. Check it out.!

Answer 6

$500.00 USD (Scottrade)