If a person wants to invest on the stock company, what should be their first step?

Question

First off all, I am a college student and broke!! I just want to know what’s the minimum amount of money you can invest in stock market and what are the requirements? Can you give me some advice and yes do you really have to be a citizen? How do you know what company should you invest in?

Answer 1

First of all you go to your bank and speak with a financial advisor.
Then she will tell you how you could open a stock trading account. Bad news is that you have to start with some money to set up a trading account using your bank account. As a student, I don't believe a bank will lend you money to trade with - esp. since you don't seem to have an income.

The good news is that I just opened a stock trading account for my mother and am using only $2000 (just as an example). However her net worth is def. more than $2000. I've been trading for my husband and myself for over 6 years and I'm sure you're interested at this time since this is a spectacular year for results.

3rd question: re: citizen - you should go to a bank in your area to find out all such details - even to inform yourself for after your college stint.

What companies to invest in? Well, you know what companies because you read all the financial newspapers that you can possibily get your hands on. And you keep reading them for about 3 months - each day. Also you watch Bloomburg TV as much as you can to get an overall world view of investing for about 3 months. Then you have a much better idea of what you sshould be investing in.

You also use investing and tracking on-line tools such as Globeinvestor.com to watch how various stocks are trading and echeck their charts, their latest news, etc.

However keep in mind that all this advice is only a beginning. Stock trading is not easy, and often you may not end up winning.
A lot of research is involved and your investments should be monitored once a day to see how they are trading.

Research, research, research and then... you could still lose.

Answer 2

Hi,

I have the same dilema since I was a student. I have been wanting to do that for years. And just last week I decided that this is it. I am going to do it. First of all I recommend reading books and artcles about the subject. There are probably hunderds of books that claim to teach you how to invest. There are also artcles online.
check out:
http://www.coolinvesting.com/ for the basics

Then I opened an account. I looked at my bank options where I have my checking account. And then I checked out TD Ameritrade. I was told good things about the latter so I opened an account there. The most important thing to look for is how much you pay commission per trade. TD are quite reasonable. it could be between $5-$60 depends on the broker.

Then with regards to what kind of stock to buy and the minimum:
The account you open has a minimum. Like with TD the min is $2000. Then some stock has a minimum, but most don't have it. YOu cans start small. My gut feeling is: If you can invest $100 a month while in collage, this is reasonable and a good starting point.

Which share to buy? Oh well, I can give you advice and then you be looking for me later :-))
I suggest to go for the big ones, which is what I do, like Coca Cola and Pepsi and McDonald. Especially if you dont have enough time to investigate thoroughly.
Then there are always mutual funds. I only put my money on those.

And your last queston: You do not need to be a citizen. I am sure of that because I have been in the same status myself. I dont think you even need to be a resident, but I am not sure of that. But it would help to have a local checking account in America.

Good Luck getting rich!

Answer 3

There is no real minimum when it comes to investing in stocks. Some shares are cheap and affordable and others are not...
First of all congratulations on taking the initiative and wanting to start investing! You are still young and the younger you are the more you can learn and therefore the more you can earn!!

However I would advise you to first learn as much as you can about the stock market before you jump in. Unless you know what you are doing the stock market is a dangerous, risky and expensive game. I would not advise buying stocks as a first investment and I would try to earn some more money before you do try to invest.

My advice and steps would be;
1) Buy or borrow as many books as you can about the stock market
2) Learn the vocabulary of the stock market
3) Write down your goals and find someone who knows something or better yet a lot about the stock market (and has made a lot of money to prove it) so you can show them your goals and ask them to help you achieve those goals
4) You will need to have some money to be able to buy shares, futures, derivatives etc so it would be good if you start thinking about how you will do this. Add this to your list of goals

How long do you have to still study? and what do you study? Perhaps you can learn more about the stock market so that you are ready to start investing when you are finished studying (or can start before you finish studying)!!
The best advice I think I could give you would be to read Rober Kiyosakis rich dads guide to investing! It explains what investing is, it is easy to understand and it teaches you the smart and safe way to invest!!

For the rest I wish you the best of luck!! I congratulate you and admire you for your decision to take your future into your own hands and with some determination you will reach your goals, I can feel it!! If you have any other questions then you can e-mail me at [e-mail].

Answer 4

A good way to invest (including buying stock) is to buy what you can afford using your spare money (money you don't need to use) and then keep the investment as long as possible. Consider the spare money you spent on investment as gifts and you're not planning to get back. Do NOT sell out your investment unless you really need the money. Do NOT sell out your investment if your investment look like it's about to lose money, things can easily go back up again. Besides, if things are really quite worst, they really need your money. If your money is lost, remember, it's a gift and you're not planning of getting it back. When to sell out your investment is if you really need the money. If you don't really need the money, you really shouldn't sell. On the other hand you're really that 'greedy', then sell only a tiny part of it and sell it only once your investment have growed in multiple folds. Where should you invest? Anywhere you feel like it. It can be a family business, your favorite company, the company that produce the product you use, and so on. The investment broker you should use is the one you feel the most comfortable, you can use Yahoo! and other search engines to search for the one(s) you're most comfortable. You can even search it directly in person without using any online media. If you're really a beginner, then go for investment brokers that sell investment certificates as collectibles. It will be an easy start.

Answer 5

First of all...If you are broke , forget about investing in the stock market.
And, since you are broke..start learning about the market, how it works, what events make it go up and down, learn market cycles, types of investments, asset allocations, diversity, financial analysis, technical analysis etc. This is all free, By the time you understand it all you will not be broke any more and can start investing for real

Answer 6

First you'll need to understand some basic principles of investment and understand which type of investment suits you.
To achieve excellent returns on your investments it is important to adopt the right investing strategies. Some shares are cheap and affordable while others are expensive,so to learn more about how to pick the best stocks,check the website link below.
hope it helps.

http://www.smart-investments.org/Best-Stock-Investments/How-To-Invest-In-Stock.php

http://money-review-site.com/shares.html

Answer 7

If you are broke then you need to find a job or save more.

Answer 8

Try www.stock-exc.com