i do i invest in stocks?

Question

how do I set up a portfolio and what are the basics of starting to invest in stocks

Answer 1

There are a number of ways to invest...The most common way is to go to a discount broker online like etrade, tdameritrade, schwab, etc. They all offer different benefits, drawbacks and pricing structures. Some require you to keep a minimum balance and trade a minimum amount each month, others dont.

Once you set it up and deposit money, you can start trading. Stocks, bonds, etc are very complicated, so do a lot of reading first. I would suggest checking out yahoo Finance, fool.com and msn money to really get an understanding. You may want to start with mutual funds and ETFs.

Answer 2

You can invest in stocks the "safe" way by investing in mutual funds. In this way, you let the experts do the stock picking for you.
Most mutual fund companies have a fund that tracks the stocks in the S & P 500. Standard and Poors does all of the stock picking and monitoring, at no cost to you.
The mutual fund companies have very low fees for this fund as the manager does not have to pick stocks.
Over the long run, you can expect a return of about 10% on your investment. You can add to your investment by sending in money, and there is no fee involved.
Right now there are more than 5000 publicly traded companies in the US. Your chances of picking money makers is not that good as you do not have the research that brokers and institutional investors have. And even they are not always right.

Answer 3

Stock market is very risky. Be careful before investing in it.

Answer 4

The easiest way is to open an online brokerage account...like www.tdwaterhouse.com Depost some money and pick some stocks.