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IM LOOKING TO START INVESTING. IN STOCKS OR BONDS LET ME KNOW

2006-10-29 02:31:14 · 6 answers · asked by blackflash40 1 in Business & Finance Investing

6 answers

Don't take this the wrong way, but you are clearly a beginner. Beginners have no business investing in single stocks and, frankly, neither do most experienced investors. Certain individual bonds can make some sense for a beginner, but usually the returns of a bond (a stream of income) aren't what most people are looking for in an investment. Further, most people starting out in investing don't know how to match their goals with the proper individual bond. So, steer clear of those, too.

My suggestion: log onto Fidelity.com and Vanguard.com. One of those will probably be your best bet. Find a mutual fund that reflects a broad market of stocks (like the S&P 500 or the Wilshire 5000) and invest in that. The best way to do that is to invest smaller amounts, via dollar-cost averaging, over a longer period of time rather than larger a large sum at once. This will tend to reduce your purchase price per share of the mutual fund.

Finally, make sure that you allocate resources wisely. Mutual funds, while they provide good overall return, are risky. Make sure you have sufficient other funds to cover current and near-term expenses and save mutual funds for long-term investing (10 years or more).

Good luck!

2006-10-29 03:41:07 · answer #1 · answered by DancesWithHorses 3 · 0 0

First you will need to open a brokerage account. I would reccomend Zecco.com because they have free commisions. This helps when you have a small ammount of capital.

Then you just need to find a stock. This is the hard part. For you, I would recommend finding a sector that you believe will preform well in your time frame. Then do research on this sector. A great resource is Market Insight http://mi.compustat.com

Ask yourself:
How does this industry value themselves?
What is the outlook for this industry?
Who are the industry leaders?

When you think you have found a company you like go and read their annual report (usually on their website). Get a feel for how they make their money and what their growth prospects are.

Then look at valuation. Compare ratios: growth rates, ROE, P/E, P/B, Price/Sale, and any industry valuations.

If you find a company that looks good put an order in. And keep up with it. I know this is alot. Use http://investopedia.com

Also I run a blog on these topics. If you have any question or would like to see an article on something you can always send me a comment. http://www.marketbrew.com

2006-10-30 22:36:18 · answer #2 · answered by Mark 1 · 0 0

You will need an online account - you can open one at Scottrade.com.

Then you will need to buy something. How do you know what to buy? I think the best way to invest is to buy what the best traders are buying. This is the idea behind http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day, the site ranks the best performing portfolios - so you can see how your picks compare to other investors. You can see what the best and worst traders are buying and selling. You can also read the investing thoughts of the best investors. You can also post your own investing ideas.

Here are this months best traders:

http://www.top10traders.com/Top10Standings.aspx

Good luck!

2006-10-29 03:34:21 · answer #3 · answered by Anonymous · 0 0

if you want to invest in single stocks, you should use a on-line broker. pick one based on your needs, your level of knowledge and the amount of trading you plan to do. I use scottrade.com but it is really your choice. if you are looking to buy mutual funds there are other companies for that. they will select the blend of stocks and you buy in to that fund and it is a little bit over a lot of different stocks. Companies like Vanguard do this for stocks and bonds. hope this helps.

2006-10-29 02:44:38 · answer #4 · answered by LD 5 · 0 0

Dude theres stocks on the internet, nasdaq, and cnn

2006-10-29 02:38:58 · answer #5 · answered by Craz 1 · 0 0

JIM CRAMER, I don't know what channel, or if he is on in your area..

2006-10-29 02:33:29 · answer #6 · answered by Anonymous · 0 0

fedest.com, questions and answers