what is the least amount of money I should save to start buying stocks?

Question

i want to start trading stocks and doing short term investments, what ammount of money would be necesary for me to start in the right track?

Answer 1

I personally wouldn't start with less than about 5000. Any less and the trading fees hurt too much. I would look for medium risk stocks that you can expect to sell within a 6 month period.
Look for a P/E of less than 20 and a PEG of less than 2. Low debt always means lower risk. At least 100000 shares traded per day is key. Also you can have the best stock in the world but if no ones heard of it it will not move. I suggest watching some financial shows on CNBC to find out what is getting exposure.

Answer 2

Trading is gambling, and you will eventually loose your capital. You would be better served to find solid investments in companies that have stock prices that are discounted. Its a lot of work, and requires knowledge of financial concepts. Or you can get help at sites like economicinvest.com for some ideas.

Answer 3

First, don't start investing until you have an emergency fund of atleast three to six months of savings. It is safer to keep emergency money away from the market.

Second, $1000 is a good start. Get your feet wet and learn the game. Get used to the lows and highs and then move it up from there.

Good Luck!

Answer 4

If your serious about trading you should invest in mutual funds until you have about 20K. Mutual funds are relatively cheap if you use your own banks and choose a low MER. Once you have about 20K that will allow you to buy into 4 or 5 good companies that have paid increasing dividends for the past 10 years. Remember to buy boring like toothpaste manufacturer. It's constant and steady. remember when Nortel was sexy. Sexy fades.

Answer 5

I have to disagree. I think anywhere from 1k-5k is a decent amount to start with if you're looking for short term investments and returns, especially if you're in your twenties/are a college student. As you make wiser decisions your short term liquid assets will grow allowing you to naturally enhance your portfolio so that you don't have to start searching for a big pile of cash right off the bat :).

Answer 6

Realistically you can get started on £500, but it's hardly worth the bother. Get at least a thousand or two under your belt for your first investment.

Answer 7

if you mean day trade stocks, you should have a minimum bank roll of 50K....and be willing to lose that much too. Daytrading is gambling.

Answer 8

It is up to you, you can start with any amonth of money if you do it online. They do have minimum fees that they charge per transaction but it is not anything much.