Don't think that you can beat the market, or even approximate the overall market, especially as a novice. The best advice? Put your money into the lowest expense ratioed index fund that you can find, and let it sit there for years and years. Buying and selling ends up eating away a lot of your profits, with basic trading expenses, and taxes.
I think that Vanguard offers an index fund of the S&P 500 with an expense ratio of around .16. This means that if the S&P returns 10% on average (which it has, historically), you will earn slightly less than 10% per year on your investment. If you want to invest overseas, the same thing goes: find an index fund. But do your research first, and anything you do, plan on keeping the shares for at least a year, but hopefully for more like 25 years.
If you plan on buying/selling more rapidly than I am advising, then have preset limits beyond which you will buy or sell (as in, a share drops 20%, you sell to limit your losses: a stock gains 20%, you sell to make sure you keep your profit). This will prevent you from trying to time the market, which is a pipe dream and random luck: you might as well take $1,000 and put it on a hand of blackjack, and see what happens.
But the best advice is to stick with index funds, as this will save you from wasting time, energy, and stress on trying to pick "hot" stocks. It will also likely give you the best long term gains.
2006-12-19 05:41:28
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answer #1
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answered by waefijfaewfew 3
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Open an account at Scottrade. Then for investment ideas, you need 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.
2006-12-19 21:14:01
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answer #2
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answered by Anonymous
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hile this subject may seem trivial to most experienced investors, I often hear people asking what they need to do in order to start trading stocks. If you are new to the stock market or are just wondering how to get started, here is what you will need to do:
1. The first thing you need is a brokerage account. Brokerage account comes in two forms, a full service or discount brokerage. The full service brokerage will charge you more for their services. These large brokerages are companies such as Citigroup/Smith Barney and Merrill Lynch of the world. Again, the full service brokerage provides more services so they will charge you more.
read more at source link (below)
2006-12-19 14:38:19
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answer #3
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answered by Anonymous
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My Advice:
Think about the kind of risk you want to take.
And at this moment CHINA And India are the best region to invest.
Growing rate : from 6 to 10%
You can take a llok at matthews asian funds
and are some web pages where yu can PLAY
(not for real) investing in the stock market , so you can start learning..............without loss $$$
Im looking for the same.
bcenter02@yahoo.com
2006-12-19 13:05:41
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answer #4
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answered by MIkE ALEGRIA 1
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If you are serious about buying stock on your own and plan on doing all of the associate research, read several books and do your research before you buy anything. I suggest One Up on Wall St by Peter Lynch. Its an older one but the concept is right. Use Sharebuilder and you can get started for very little money, buy stocks automatically and at a lower cost.
And don't buy anything that Jim Cramer suggests
2006-12-19 14:29:04
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answer #5
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answered by Anonymous
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If your just getting started, God is right. You need to analyze your risk level. Try starting out in mutual funds and learn as you go. Most people that start with mutual funds learn that it is the best way to invest and never change.
Minimum investment is usually $250.
Good Luck!
2006-12-19 13:40:08
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answer #6
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answered by MR MONEY 3
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Scottrade ($500.00 USD)
2006-12-19 14:04:17
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answer #7
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answered by Anonymous
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Why not do what God asks, sell all you have and give to the poor? As far as you're concerned, that will have the same result only faster, and it makes more sense to give it all to the poor than to the rich.
Beth
2006-12-19 12:53:47
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answer #8
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answered by Anonymous
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