Advice on stocks for the beginner?

Question

Is it as scary as it is made out to be?

Answer 1

My advice to you is not to ask any yahoo's on Yahoo. Talk to a professional financial advisor--someone at a reputable firm who is a Certified Financial Planner. You will end up paying a fee for this advice when you invest, but you will have a better idea what you're getting into, and you will sleep better at night.

Answer 2

I am also a very new at picking stocks but i would like to recommend a book Jim Cramers Mad Money. This Man is a Genious he has his own television show Called Mad Money. The book which i just started reading starts out from the basics and explains everything from what stocks really are and how to tell what stock is a cheaper. Its well worth the price and its not a defficult to read ether im A high School Senior looking for a jump start in the world and this book is deffently leading me in the correct direction.

Answer 3

Don't be intimidated by the stock market. If you diversify your money properly (I strongly recommend buying exchange traded funds like SPY or IVV, which will effectively allow you to own stock in 500 companies) then you can eliminate most of the risk involved with investing in stocks and just enjoy the market rate of return, which tends to average about 10% per year.

Of course the market is volatile, but frankly the volatility is overblown--the big drop last week worked out to be about 5% for the major indexes (that's like going to bed with a dollar and waking up with 95 cents) and the market has already rebounded strongly. Over the long term people who invest in the market tend to make a lot of money and I'd highly recommend it.

Answer 4

I was scared the first time I picked out stocks for my 401k,I took the advice of a friend and bought into some stock in Micron Tech.Well they went from the over $100 to $30 overnight.But luckily I bought stocks that I took a personal interest in(John Deere&MGM) and they have done very well for me.So my advice is to buy stock that you have a personal interest in or a product you like.

Answer 5

I read a book since 1987-1999 the stock market grew 20% & has an average growth of 12% a year .So if the highest CD rate is 5% your money can grow twice putting it on the stock market .I'm actually starting to open one myself & if you have money you won't be using for 5 years it's a good deal risky but It's worth it ! I'm thinking to buy Apple Inc. the moment they sell their Iphone it's gonna be a hit !

Answer 6

go with ETFs. Check out FXI, EWS, EWW, EWZ, etc.
They have been doing very well (40%) and they are diversified, which saves you the hassle of doing it yourself.
I have only been investing 6 months, but have had great success with them. I do own a couple of well known stocks, but the amount of stocks is overwhelming to say the least.

Answer 7

Take your time. It is no more difficult than learning to fly a 747. It will take time and education and will cost some money. Maybe years before you are really comfortable in the pilots seat. So, read, paper trade, study. Be patient. Get rich.

Answer 8

you should invest in a mutual fund. They do all of the stock picking and manage your money for you.

Answer 9

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Answer 10

do mock paper trading
learn technical
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