I want to invest in some type of stock?

Question

I am young andI have never invested in stocks before anyone have some tips or suggestions. What stocks are likely to rise... ect.

Answer 1

You don't say how old you are, what kind of resourses you have or your knowledge of finance in general, I.E. do you know how the market works, listed vs over the counter, options, etc.? Before you invest a dime remember the cardinal rule of investing: the public finds out after the money's been made. In other words, if a stock is at a high it's not the time to get in. Also, the corolary: if it's too good to be true, it's too good to be true. Finaly, don't invest money that you can't afford to lose, especially if you're speculating (which it sounds like you are). Go to Morningstar.com and sign up. It will be the best money you spend for ideas, research and analysis. Read the Wall Street Journal and look for companies with a future. You might want to put money in an index such as the S&P 500 especially if you think the market will keep going up (and it won't - it will correct). Bottom line is that there is no easy answer to your question.

Avoid the following:

emails with stock tips
fax messages with stock tips
any stock selling for under $5.00 a share (unless you're willing to lose all you invest in it
penny stock
options
commodities
friends who say they "know a guy who knows a guy who said..."

Do the following:

Use a reputable broker either bricks and mortar (Merrill Lynch, Lehman Bros, etc, or a reputable on line broker like E*Trade, Scwabb, etc.
Put half your money in a good mutual funds of either high or mid-cap companies - you'll have gains while you experiment
Pick a point at which you want to get out on the up side (on Wall Street the pigs get slaughtered) and stick to it
If a stock is falling, pick a point at which you want to cut your loss. If it;s a good company you can always buy in at what you think the low is.

Good luck. If you find the secret let me know. I stick to known companies with solid balance sheets and a track record. Even so I've lost (Worldcom, GM and a few others).

Answer 2

I recommend perusing E*Trade. From there, you should be able to do some trading on your own.

However, I don't think it's a good idea to buy individual stocks. I mean, unless you really want to build your own portfolio from scratch, individual stocks in themselves run contrary to the principal of diversification. Personally, I think an index fund is better, such as the S&P 500. Mutual funds are the way to go IMHO.

Speaking of index funds, a good place to learn some investing basics is to do so in a tax shelter such as your 401k or IRA.

If you still insist on buying individual stocks, may I recommend starting out with dividend stocks? Sure, they're not going to shoot through the roof like an American Idol winner, but they tend to be fairly stable. In fact, it's because of that fact that many companies opt to pay dividends to make it attractive. Walmart stocks is one such example. Microsoft is another now. At least, I think it's a good way to get your feet wet until you can figure out what else you would like to do.

Answer 3

I've found some great stocks using the stock screener on Yahoo Finance... give it a try. Research plenty of companies before you put in a penny... I suggest looking at industries you feel show a lot of promise. Try investing in products you use... if you like Pepsi, you might consider stock in it; however, if you like Coca-Cola, buy stock in it.

Answer 4

You should not put your money into stocks just because someone tells you that they are about to rise. You need to do your homework. Find a few books to read and learn how a business is run to start with. A fun book, such as Jim Kramer's Mad Money" can be a starting point.

Answer 5

I hope you will take some time to educate yourself about the market before jumping in. The National Assoc of Investors Corp can help you find an investment club in your area. They also offer instructional materials, classes, a monthly magazine and a low cost investment plan for their members. Some of their materials are geared to teens and new investors. Check out their website.

Answer 6

You also might look at the American Association of Individual Investers and Morningstar, two very educational sites for me, as well as Yahoo Finance. And I also recommend Scottrade for an online discount broker. $7.00 to buy or to sell. Very straightforward. For a fee-based service, The Motley Fool website was very educational .

Good Luck!

;-)

Answer 7

read tips on investing and stocks to help you more on this site

Answer 8

It looks like this would be the perfect resource for you:
http://www.best-stock-trading-systems.com/trading_for_beginners_review.html