I am a 20 year old college student and I really want to start getting into investing. First is it reasonable for me to start because I am working with a limited income and don't have $10,000 just sitting around, And if it is, what are some good trading sites that I can use with my limited income. I have a few books on investing including Jim Cramer's Mad money that I find to be very helpful so far-I haven't finished reading it yet. Whatever advice you have will help because I am the first person in my family that will start investing and I really don't have anyone to help guide me.
2007-03-24 15:44:06 · 6 answers · asked by jetsetter 1 in Business & Finance ➔ Investing
You can start investing if you have enough money to buy 1 share of stock and pay the commission fee for buying the stock. However there are two big impediments you can run into if you're trying to invest a really small amount of money.
1) Is commissions. A $10 fee to buy and sell stocks isn't a particularly big deal if you're making a $1,000 investment (its about 2% of the investment), but if you're investing, say, $100 then it would cost you 20% of your initial investment just to buy and sell the stock. This is likely to eat away any profits you'd make.
2) Some brokers have an 'account maintenace fee' or otherwise charge you simply for having an account open if you have less than a certain amount of money. This is obviously something you want to avoid.
If I were you I'd find a low fee online broker, like Scottrade or Tradeking which don't charge fees and have low comissions ($7 for scottrade, $5 for tradeking).
Also because you probably won't be able to diversify properly you might consider buying ETFs, such as the SPDR fund (SPY).
Good luck.
2007-03-24 16:08:02 · answer #1 · answered by Adam J 6 · 0⤊ 0⤋
Don't do "fads". Don't depend on talking heads like Jim Cramer.
"Asset Allocation" is the number one indicator of success for the individual investor. Next to that are low fees and low commissions.
Never take "tips". You may want to start with a simple S&P500 index fund. Or get a little more "involved" with ETF's (Exchange Traded Funds). DRIP's are fun and can sometimes be profitable. There's just greater risk with one equity (vs. many).
Good luck!
2007-03-24 16:49:28 · answer #2 · answered by Common Sense 7 · 0⤊ 0⤋
I would start by going to the web sites of companies that you are interested in and look for "DRIP" (direct investment) plans. They allow you make a minimal initial investment usually less than $500..and make small periodic additions over time....
2007-03-24 15:50:13 · answer #3 · answered by RotoGuru78 1 · 0⤊ 0⤋
Trading stocks is profitable if you have to invest larger sum of money. If you have limited income, I suggest you look for investment pooling program. Please take a look at this and assess if this program suits your preference.
http://www.international-investment-pool.freewebsitehosting.com/index.htm
2007-03-24 17:17:57 · answer #4 · answered by Neo_Apocalypse 3 · 0⤊ 0⤋
Open a brokerage account at Zecco and drop me a line.
I will help you for FREE.
2007-03-25 10:54:03 · answer #5 · answered by Anonymous · 0⤊ 0⤋
keep reading them books, get some books with donald trump also, make sure your chances are good and not 50/50
2007-03-24 15:49:10 · answer #6 · answered by josephcodner 2 · 0⤊ 0⤋