Stock question...?

Question

How do I go by buying/investing in stocks? I hear that its a very good way to make extra money. Can someone give me some info?
Thanks in advance.

Answer 1

You need a qualified financial advisor.

Yes you can make money with stocks, and you can lose money with stocks. You need a qualified financial advisor, to assess your risk tolerance, you investment profile, decide if you have enough money to invest, and to tell you about appropriate products.

Then you have to educate yourself, about different investment vehicles, how the markets work, and their cycles, understand economics and understand how world events, interest rates, market psychology, all work together to change the market.

To do it right and make money is HARD WORK.

Answer 2

If you are new to the stock market, you need a guide. It can be in the form of a book (or a couple of books) or an evening class at a local college, or it can be a stockbroker or investment advisor. The first step is always different for everyone because it depends on your personal level of knowledge.

My advice is to take a short course or find a reputable advisor. This is best accomplished by referral from someone who has had a successful experience with these two approaches.

Getting into the stock market without preparation is too easy and very tempting, which is why so many people lose money on stocks. If you want to try the independent route, you can learn a great deal from purchasing a single mutual fund (called an "investment company") that buys and sells stocks on behalf of investors who don't have enough knowledge to make profitable decisions. Mutual fund managers are the "super-pros". Being part owner of a fund, and studying how it invests in the market, can give you a wealth of knowledge about stocks.

Fidelity is one of the best fund managers in the industry. Their literature is easy to understand, and they run some very profitable funds. If you studied the stocks they invest in, you would gain knowledge about some of the better stocks in the market. One of their top mutual funds is Fidelity Small Cap Value Fund (FCPVX). I like the management because they favor stocks from the financial and consumer goods sector. I believe they still own one of my favorite stocks - RC2 Corporation (Nasdaq: RCRC), a smart toys and games designer that went up 37% between Aug. and Dec. 2006. I might not have discovered them had it not been for the information I received from Fidelity. Get educated about the stock market and you will make money! Good luck!

Hawk

Answer 3

More likely, its a very good way to lose money. Here's some statistics for you: At the beginning of this decade the combined value of the stock market, including everything; OTC, S&P, Nasdaq, etc., etc. was approx 15 trillon dollars. Currently the total stock market value is approx 11 trillion. In this declining market, corporate insiders have cashed in approx 2.25 trillion dollars since the beginning of the 00s. In other words, its the same old story; "the rich get richer, and the poor get poorer".

Answer 4

You can join any of the online sites such as Etrade, Scottrade but first you need to do research. I found out that the money section of www.msn.com was very useful for the beginner investor. If you would like to take investment on a step by step process you can invest for as little as $4 with the site www.sharebuilder.com. You may also want to look at some classes that are offered by local community college. I hope this helps!

Answer 5

There are some good tips on MyMoney.gov that are worth a read. It will send you to the Securities and Exchange Commission's Beginner's Guide to Investing page.