How should i begin investing in stocks?

Question

I have not done any investing in the past but would like to begin. i would like to know how to start and what i should invest in.

Answer 1

I guess the best answer I can give you with stocks is to diversify. Do not put all your money into one stock or even one sector. For example, you might like technology companies but it would be wise to diversify by picking up some banking or transportation stocks as well. This way as one industry goes down the others may be moving up to minimize your potential losses.

The other thing with stock investment is to invest with a long term horizon. Give your stock investments time to grow. Remember "the trend is your friend". If a stock has been appreciating over the past few years there is a good chance it will continue.

Lastly, look to invest in things you like. For example, lets say you just had a great meal at Olive Garden....evaluate investing in Olive Garden. Or you were really comfortable enjoying a movie at Regal Cinemas....evaluate investing in Regal. Chances are if you had a good experience others will as well and over time the stock price of a company is rewarded for quality and customer satisfaction.

Good luck in your new adventures. I am personally experiencing success in the Forex market. If you are ever interested in Forex drop me a line.

Cheers,

Paul

Answer 2

There is a series of booklets from Morningstar.com (which keeps track of all the mutual funds) that can help.

As for what to invest in (which is one of the books), I'll give you my idea (not theirs). Browse through the articles on businesses in CNN.com/Money (Fortune magazine is found there too) or Businessweek.com. Read of the stuff that various featured companies are doing. Some of it is good, some bad, and some simply new. Interested in one of them? Want to be a part of it? Then buy their shares with your "extra" money, the stuff that you can live without. This is investing.

Trading or speculating, is an entirely different dog. There you look for patterns and trends and news of earnings and new features. (Oh, and don't get fooled with the 'buy low and sell high' stuff, just because a stock is at its low for the year doesn't mean it can't go lower and just because another is at its high for the year, it could turn into the low for the next year if business is great) For that, make a practice portfolio or use a trading game like the Zacks.com challenge or virtualstockexchange.com. Then when you feel comfortable, try it with your own, real money. The market waits for no one, but fresh opportunities arrive daily, so don't get into a rush, until you feel you are ready.

Answer 3

I would advise you invest your money in index trackers. These are the cheapest method of stock investment and give you exposure to a whole index - not just the stocks your fund manager has chosen.

Stock market investment is an extremely difficult and time intensive occupation - it is NOT something one can do in one's spare time and hope to consistently make money - leave it to the professionals.

I suggest you read 'Reminiscences of a Stock Operater' by Edwin Lefevre to get an idea of investing - it is widely acclaimed as an all time great. Another finance 'bible' is Benjamin Graham's 'Security Analysis'. My own personal tips would include Jack Schwager's 'Market Wizards' series. Hopefully these books will give you an insight into just how demanding and difficult a field investing is - it is only for a very few people to be active in.

If you are still keen on investing, then I would recommend getting a job in an Investment Bank or Asset Manager - the best way to make money in a bull market!

Answer 4

Depends very much on your situation. If you've got the knowledge and a little intestinal fortitude, open a Scottrade account and find stocks you like and buy some. For MOST folks, buying mutual funds that look good to you and are low cost with no up front fee off the top is a better way to start. Look at www.vanguard.com an EXCELLENT, investor friendly company. Your outlook on life and things in generals will lead you to an investing "style". That's a very interesting question and the answers are almost innumerable.

Answer 5

Forget about brokers, learn yourself - Knowledge is Power.

Start by reading books, I suggest reading "Understanding Wall Street". At the same time take some stock investing courses at your local community schools, which are very inexpensive. Learn and understand technical ananlysis before you invest.

You need about $2,000 to open up an account with a brokerage firm, I suggest E-trade. Once you start playing and getting your feet wet, I suggest taking a class with a professional trader (more expensive), but really worth it.

As you get experienced , learn more as you go. With time, patience, knowledge and experience you will become a good trader. Just like any other business, stock trading is no different.

Don't listen to people who say the stock market is like gambling. Those people are losers, you need to talk to people who are the winners, makes sense, right?

Answer 6

Before you begin investing in stocks first make sure you have::
1. Contributed enough to your 401k to achieve your company's match. (if that is an option available to you)
2. Paid off all debt (except for your mortgage if you have one)
3. Set aside 3 months of living expenses.
Now you are ready to go! You might want to consider mutual funds unless you have the time and interest to research and follow stocks. As to tools... see the following url which has info on various investment strategies.
http://www.investu.com
Success and health to you!

Answer 7

check out investopedia.com and finance.yahoo.com and read up on the market first. you can find some great books at the library or Borders. Jim Cramer has a few good ones on investing. "Real Money" is very good at simplifying the way the market works. I have an account with Scottrade.com. their website has lots of useful information plus all the research tools you need.

Answer 8

some good books are: 'commerce Your thank you to monetary Freedom' with tips from Van Tharp - even with that's cheesy identify, it is the final e book I surely have ever examine on buying and advertising. A ought to examine! 'buying and advertising For A residing' with tips from Alexander Elder is likewise good. And 'buying and advertising interior the Zone' with tips from Mark Douglas is likewise good. perchance examine between the 'buying and advertising For Dummies' or 'making an investment for Dummies' books first, then examine those i've got pronounced above, afterwards, as they seem to be somewhat greater progressed (yet are no longer confusing to verify - they are relatively hassle-free to verify, notwithstanding it is ultimate in case you initiate with certainly the basics first). as quickly as you have finished some examine, verify you study approximately danger administration as properly, as that's one factor to make earnings/funds, notwithstanding that's yet another total factor studying to no longer take stupid hazards that can 'blow up' your account.

Answer 9

Find a good broker and talk to them.