Does anyone know what's the best way to get started in the stock market?

Question

I'm looking to get going with the stock market but I can't speak the language. How can I enhance my knowledge and make wise short term investments?

also - don't have much money to start out with.

Answer 1

First of all--the stock market is not a good vehicle for short term investments (though I am well aware that some people became rich quickly). Go to Fidelity, E-Trade, Charles Schwab, or many other (Yahoo Finance) and you can read about the terms. You can also try the Motley Fool. Or, I could tell you, if you have specific questions.

Answer 2

First, don't quit your day job.

Second, narrow your list to a few--more than one but not more than, say, ten--companies that you follow continuously. These have to be exceptional at something--profits, product, potential.

Third, don't ever buck the trends. No matter what the news, the market will always know the important stuff before you. That is not to say don't be instantly ready when the change takes place.

Fourth, don't ever sink it all in one stock or position. If you are horribly wrong, you still want something left for the next try.

Fifth, don't trade too much. Why work hard for a nickel today when you can have a dollar by simply waiting for the trend to play itself through?

Finally, while it isn't gambling, there is a lot of luck needed. You often make your own luck by knowing the stock's business cold and knowing its industry as well. If you know about Gateway, you darned sure better know about Dell. If you know about Target, you better know about Wal-Mart. Another for instance, news today is that domestic steel lost some tarrif protections, so if a domestic steel producer was on your list, now is not necessarily a good time to buy, but they are a good thing to watch because as their price falls from the lost advantage, there may be a future buying opportunity if they find another advantage. That is trading and hunting and most of sports--looking for the right time to employ the right advantage to your profit. Good luck.

Answer 3

No such thing as a wise short term investment. If you trade frequently you'll probably lose. There's a lot of good info on Yahoo finance and it's free. There are lots of good books on the subject and don't invest until you understand how things work. There's no easy way to make a lot of money fast. That goes for the market too. If you take the time to learn how to invest you'll be glad you did.

Answer 4

First, you should gain some knowledge, and I suggest you to read the book, "Understanding Wall Street". Then take some inexpensive courses in stock market investing at your local community schools, they have courses for adult education. Learn all you can about technical analysis.

In the menatime, while you are learning, save up your money to open up an account with Etrade, Scottrade, or Ameritrade. I personally have Etrade. I believe you need about $1,000 to $1,500 to open up an account. As you gain more experience continue learning more and more, and at some point take a course with a professional trader (more expensive, but very well worth it). With time, experience and knowledge you can become a successful trader.

This is no different than learning any other carreer, all it takes is passion to become good at what you do.

Answer 5

What I did was read alot of books on the stock market and investing. Started with a few books that are meant for those who have no clue about it.

Once I felt I knew enough I took 500 dollars and opened a brokerage account with scottrade since there commision is less than others.

You learn even more once you actually start buying and selling stocks

Answer 6

A safer way to start in the stock market is by investing in mutual funds. These are families of stocks grouped together, there are many differnt types from aggressive to conservative.

You can also start these with as little as $50 a month.

Answer 7

There is no limit to how much you can lose!! Remember this fact! Use some money to learn more about trading. You'll need to do courses..or you will lose your money... guaranteed! Putting money in the market means you need to protect it from market falls. If you are seriously prepared to do this, I suggest you learn how you can protect your stocks with options. I'll mention some resources that will help you.

Answer 8

The best program to make income fast is http://tinyurl.com/ylkczs

if you don't have the money for that program yet then you should learn to invest. virtualstockexchange.com is a FREE site where you can practice real stocks with imaginary money.

When you get the hang of it:

Sharebuilder.com is the best place for you to start if you want to do stocks. Many mutual funds can accept monthly investment plans, and some will allow you to start with as little as $50.

If you pick a basic mutual fund, you're probably as safe there as anywhere. It won't be a world-beater, but it will be a great place to start until you build up your dollars.

Answer 9

go and buy the book, investing for dummies, it is not for dummies, it is packed full of good info, may even find a used copy at amazon.com

best way to get started investing is to start putting a little bit of money into a mutal fund each month, you can start this with as little as $50 a month. money goes right from your checking account into your investment account on the day you choose. start out with a balanced fund or equity income fund, they are more conservative. contact Vanguard or American Funds on their 800 number and they can help you get started. if you start this at a young age and keep doing it your whole life you can make a boatload of money for yourself, maybe a million dollars or more. this is one of the best things you can ever do for yourself, don't be afraid, just do it. the stock market is one greatest things in the world, learn as much as you can about it, it is not that hard to learn, watch cnbc on tv that is the stock market channel........

Answer 10

I think the best way to learn about investing, is to see what the best investors are buying and selling. Go to 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 perform compared to other investors. You can also read posts on investing from the best traders, as well as share your own investing ideas. There is also a charting feature , so you can see how your portfolio performs compared to the S&P 500.

Here are this month's best traders:

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

Good luck.