Can someone who doesn't know anything about the Stock Market actually make some money from it?

Question

I've been reading alot about it, obviously i don't understand the whole concept of it in its entirety but i'm getting there. If i were to be interested in investing and such how do i get to it, where do i go to place my money, who do i see, etc...? I know it's always risky but there's a big chance of striking big, and by the way how are the chances of actaully making money on your first try? And how long does it take for something you've invested on to actually become profitable. Sorry i know its a lot of questions but i'm really curious about it. I know someone who's made a lot of money on the market and that pretty much struck my curiosity nerve. Thanks, any good answer is welcome.

Answer 1

Everyone started with nothing. Your potential lies within you. Keep reading, studying, and testing your theories.

You need to do the work first, learn a few terms, read a few books, which you will have to do anyway. Go to the library, and browse through the row upon row of the subject. All of these questions will be answered as soon as you take the first step and read a beginners guide to investing.

Try to determine your time horizon. Short-term, long-term?

Take a look at charting and Technical Analysis for following trends in the markets. Why would you own a stock that is in an obvious decline?

Realize right away there are two sides to the market, not just the upside. What goes up, eventually comes down at least part way.

Learn how to analyze risk, and make this your primary approach, not by compounding profits and erroneously analyzing how much money you can make. For example, most traders don't make any money at all; more than 80% blow out.

Learn about money management techniques, and maybe you'll stick around awhile.

Try to find these books:
They say "Buy and Hold" for the long term is better, but that depends on when you get in, and what your definition of "long term" is. The phrase "Buy low and sell high" infers that you buy after a decline; but how much of a decline? If you had bought after a 1000 pt decline in the Dow in 2000, you would still be waiting to get back to even, six years later in most stocks.

How to start trading online:

http://www.bernanke.cn/stock-trade/...
http://www.stock-trading.jims-info.com/....

http://money.howstuffworks.com/......

http://www.investopedia.com/

http://sharebuilder.com/

www.stockcharts.com


Beginner’s Books on Investing


"Which Is Better, Buy-and-Hold or Market Timing?"

"Do You Have What It Takes to Be a Market Timer

The Beginner's Bible in Technical Analysis is:
Edwards & McGee"Tech. Anal. Of Stock Trends"

Droke, ClifTechnical Analysis Simplified

Kahn, Michael N.Tech. Anal. Plain & Simple

Kamich, Bruce M.How Technical Analysis Works

Lefevre, EdwinReminiscences of a Stock Operator

Lofton, ToddGetting Started in Futures

Lowenstein, RogerBuffet (Warren)-The Making of a Capitalist

O'Neil, William J.How to Make Money in Stocks

Oz, TonyHow to Make Money From Wall Street

Develop a plan, then test your plan on a free simulator at Investopedia.com and when you start making "virtual" money, then you can risk your own.


http://simulator.investopedia.com/home.aspx

http://investopedia.com

http://investing.sitesled.com/

http://futures.tradingcharts.com/learning/


Blogs
http://winners-and-losers.com/

Training & classes
http://bettertrades.com

http://investedcentral.com


ETF news and analysis
http://ETF-World.Org/

Article: Trading is Timing
http://www.investopedia.com/articles/trading/06/TradingisTiming.asp


Stock Charts


Bigcharts.com
http://www.stockTA.com
http://www.stockcharts.com
http://www.incrediblecharts.com...
www.prophet.net
americanbulls.com

Answer 2

Sure you can make money from the Stock Market. I've know people who just blindly choose a stock and made some serious cake. Keep this in mind though. For every amateur success story you here there are ten thousand failures. The stock market can be a tricky beast. You would be better off starting with very low risk investments until you get a feel for the market and how it reacts (unpredictably) to world news.

There a lot's of websites out there that offer information about the stock market and gaining an understanding of it.

Answer 3

Go to a reputable stock broker (Edward Jones Assoc.) for example. Get to know your investment counselor (his education, experience, methodology, etc). He/she can then begin to form a financial portfolio for you based on your income, expenses, current investments like retirement accts., IRA's, 401K's etc. And this person will advise you on the best way to incest your money to net you the most profit. If you're in the 20-35 age bracket, they may suggest higher risk stocks because they pay higher and at a younger age you have time to recup losses...the older you are, the less risk you should take as retirement age approaches. Diversify! In other words...don't place all of your investment money on one particular stock. For a saving investment, Roth IRA's are great! A 6 month commitment yields good interest. For more information and sage advice, check out suzieorman.com She's fantastic!

Answer 4

Dear Friend,
your view towards market is really true,my best advise will be stay invested even if it is small money stay invested for long run in a fundamentally good stocks,don't get carried away with the booming stock and lose money,,,,,you can pick the stock of infrastructure and IT ,,those are ever green industries...Apart from that find a good trust worthy finical advisor who can help you on wealth building ,,,,,,,,,,,Don't Never and Ever greedy ,,,,invest and forget those investments will fetch you better return....

Answer 5

I have heard that people have made money by following advisors until they get the hang of it. If you are interested in the penny stock market you could subscribe to peterleeds.com. They make recomendations with a high level of accuracy.

Answer 6

You are unlikely to strike it rich unless you have access to some privileged knowledge. For example, if you knew of the imminent takeover of a company then you could buy low and sell high, or you could hedge against (sell-forward) a share which you knew was going to fall in price, sell high and buy low.

If you have no specialist knowledge then it's best to stick to a managed fund and take a modest return, of say, 10 percent.

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Answer 7

Sure you can make money, and you don't have to know anything at all... except where to find a broker who does know what to do. Go with any reputable brokerage firm... pay the commissions... they'll be earning them. After five years, evaluate your progress... if you're not satisfied with the returns, there are dozens of other brokerage firms anxious for your business.

Answer 8

Yes. If you are lucky enough.

If you want to invest, make it serious and full time. Don't play with it.

Answer 9

Im sure they can, but probably out of pure luck.