What's the best stock to invest in for beginners?

Question

I'm considering investing in some form of stock next month, and I was curious, what's hot besides oil and gold?

Answer 1

I would stick with an index fund that tracks the SP (spy, vfinx) and for individual stock I will pick banks. My favorite bank stock is Bank of America (BAC) which raises its dividends by 13% each year. Banks also have some of highest profits behind oil companies, national banks have consistent earnings even in recessions, and last but not least banks are here to stay........no high flying technology stocks for me!!!!

Answer 2

The first thing you need to know is that most beginners lose money. There are beginners courses available, some free and some very good low cost ones and it is wise to try virtual trading to start with as that will ensure that any losses are only on paper. For a private investor, technical analysis is the only way to go. You will always be a step behind the pros on news who have massive resources and teams of people who will all know about the latest word on the street before it even hits the street. Technical analysis allows you to find recurring behavior patterns in the price action of a stocks chart. Technical analysis methods are applicable to any chart so it is possible to quickly assess a range of possible investments rather than the laborious task of sifting through income statements and such. Those will give you what the company has done in the past but it it does not necessarily mean it can keep it up and fundamentals analysts need to try to predict what the unpredictable to try to place a value on a stock. EWI have just released the Elliott Wave Principle free to download and well worth a read for anyone interested in technical analysis

Answer 3

For beginners there are many land mines to watch out for. One is investing in what was hot last month. I do think you might have a good idea though concerning oil. All indications are that it is not going to be yesterday's hot stock. There is considerable risk to investing in a particular stock however. Do not forget about all of those people that had all of the money invested in Enron, World Com, Global Crossing, or for that matter air line stocks.

Oil stocks are very susseptable to political pressures more so than about any other industry.

You received a lot of advice to invest in an index fund. That advice is not without merit. But do not expect them to be "hot". They are not. Just good long term investment vehicles.

You have to ask yourself this question. Do I want to invest? or Do I want to speculate? Hot stocks are for speculators more than for investors. And plenty of them wind up getting their fingers burned. Some completely consumed.

Here are a couple that are in the hot category. But be forewarned. You might wind up with burned fingers or worse. NWS, CHN, IIF, VWSYF. Of these the last is by far the most speculative. The two in the middle might be considered even of an investment category. The first might also suit your fancy.

Answer 4

If you're looking for consistency, try a bank. You could also just invest in companies whose products you consume. RIght now, I would invest in Starbucks, because I know their growth has been steady, not only as a company, but in their stock as well. Also, Hewlet-Packard seems to be a good pick, because since the scandal, their stock is down, but as a strong company, their stock should come back up. Also, with Nintendo coming out with a new console, now's a good time to invest in Nintendo, especially since they're down because of the Microsoft's new XBox and Sony's PS3 and PSP. It all depends on how long you want to stay in.

Answer 5

If you are a beginner you should not buy stocks. Go into a mutual fund and let the pros manage your money. Get into a no load fund. Vanguard is very good and respected. Start with $3000 to open an account or $1000 for their STAR fund. You wont pay any commissions. You can add to it each month or any time you have $100 to invest Reinvest all dividends and capital gains. Over the long term you will have a nice nest egg. Contact Vanguard.com or call them. This your best bet. This is how I make my living, I am a pro. investor. If you need any help you can e mail me and I will do my best to help you.

Answer 6

If you are a beginner don't look for the hot stocks, look to invest for the long run. Try buying stocks with DRIP programs, or put $500 in a well known mutual fund.

Answer 7

I've made a nice profit on a couple of suggestions he's given and plan to start trading his ideas a lot more. I definitely recommend subscribing to https://tr.im/pennystockguide
Very good research, quality stocks. I was a bit weary of penny stocks from all the bad hype they receive but this guy is pretty legit. He's put my mind at ease with a lot of the fears I've had.

Answer 8

The safest thing would be index funds. EX) the S & P 500. This compiles the top 500 stocks in the U.S. Commoditites like oil and gold can be risky but it is not for beginners

Answer 9

Try a couple of trusted blue chips, like General Electric(GE) or Microsoft(MSFT). You can look into some other if you like, but solid performers like these that make up the S&P 500 and the Dow Jones industrial average are very reliable. Other to search, AA, C, JPM, HON, T, VZ, CSCO, XOM, SPLE, BA... Good luck =)

Answer 10

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Good Luck and Best Wishes!