I am just looking a way for extra income. I don't trust the stock market and myself too much and I am kind of short of money now. That's why i can only afford $250 to start. But if I am doing well, I'd put more money into it. So help me out. Don't answer it if you know how it is going on the stock market.
2007-04-06 20:07:58 · 7 answers · asked by Not A Daydreamer 2 in Business & Finance ➔ Investing
Since most no-load, low fee mutual funds require $1,000 or more to invest, and since you "don't trust the market or yourself" I suggest you stay away from mutual funds and individual stocks. Instead, look to an ETF (exchange traded fund), which is a mutual fund that trades like a stock so they don't have the $1,000+ minimum. For a one time low fee of $4 at www.sharebuilder.com, you can by a well diversified ETF that covers the entire US stock market. One good low cost ETF is Vanguard's Total Market ETF. Its symbol is VTI.
2007-04-07 01:45:55 · answer #1 · answered by gosh137 6 · 0⤊ 0⤋
The stock market can be a very volotile market, and if you don't know what you are doing, you could as easily loose your money as make a profit. With $250 to invest, by the time you pay stockbroker's fees, you are not going to be able to buy many of any stock. I'd put the money into a bank fixed term deposit or savings account until you have more to invest. Even for a managed fund, you would probably need at least $1000
2007-04-06 20:21:44 · answer #2 · answered by Anonymous · 0⤊ 1⤋
First, there is no reason not to trust the market. There are big problems like Enron and Worldcom, but good analysts were able to see what was happening and get away from firms like that. So I'm glad to see you are willing. Basically, the market is a place to exchange small ownership stakes in companies. When those companies make profits, they can either pay the owners dividends, or reinvest the profits to make greater profits in the future. So what you are buying is an ownership stake in the company, and the question lies in which company should you buy? That requires a great deal of research, or if you are not able to do that due to time or other constraints, you can look to places like economicinvest.com for help. They provide research, philosophy and advice for a very reasonable price.
2007-04-07 00:46:42 · answer #3 · answered by redfearn_jc 2 · 0⤊ 0⤋
The problem you are going to run into is the fees are going to eat up all your gains and more. The more "help" you need, the more it can cost you. I feel you should have at least $2,000 before starting in the stock market. The loss from fees would be offset by the daily fluctuations would could equal the amount of the fees.
You should go to usbonds.gov and buy $250 worth of I-bonds (adjusts to inflation). There is no fees and right now I-bonds are making over 6% which is probably more than you are going to gain after fees. I-bonds are government insured so you won't loose money.
2007-04-06 20:42:46 · answer #4 · answered by gregory_dittman 7 · 0⤊ 1⤋
The smartest thing is to put your available funds into at least 6 different types of shares. Some experts recommend you should put money in nearly 20 different shares to diversify safely. Spread your investments into totally unrelated sectors, e.g. banking and IT. This ensures if one sector fails to deliver results, you can earn decent returns from the others. You should not only diversify across the different sectors of the stock market but also into other investment avenues till you develop confidence in the stock market. An intelligent investor will use some portion of their investment money and invest it in secure investments like bonds and bank deposits though they provide less interest.
2016-05-19 02:27:00 · answer #5 · answered by gladis 3 · 0⤊ 0⤋
Just mail me at solidoffer11@yahoo.com with subjet- stock markets . I will send a link of best website where you can find good offers, tips and resources.
Best wishes
2007-04-07 01:35:29 · answer #6 · answered by Anonymous · 0⤊ 0⤋
SogoInvest.
2007-04-06 20:29:28 · answer #7 · answered by Anonymous · 0⤊ 1⤋