I want to get into the stock market. I know about it but I know its a competitive field thats why I want to know as much as I can about it. I'm not trying to be a millionaire. I'm sure if it was possible, everyone would. I just want to know how I could make some extra bunks. How much could a person make on a stock? How much do stocks usually cost? Do you have to go through a stock broker? How much does the broker take off? Thanks in advance!
2007-05-20 08:19:20 · 5 answers · asked by Ms Awesome 3 in Business & Finance ➔ Investing
What you need isn't information on the stock market but information about learning about Personal Finances. Go out to your local book store and get either the Dummies Book for Personal Finance (Not the Stock Market or Investing or Day Trading). Or my personal Favorite is The Only Investment Guide You'll Evr Need - Andrew Tobias. He starts out and discusses things charter by chapter. Chapter one is about how much you can save by buying in bulk. Either of these will run you about $15 and you'll save that hundreds of times over between learning how to be a saver, investment ideas that won't cause you to lose a fortune and other advice.
2007-05-20 08:37:57 · answer #1 · answered by tiescore 6 · 0⤊ 0⤋
The stock market being a "competitive field" has nothing to do with you as an investor. When you invest in a stock you are a shareholder.
How much could a peson make on a stock? That's nothing that a person could answer. A stock has a potential to continously make more money - making profit limitless. Your gain (or loss) from owning a stock can only be determined by knowing the price at which you buy a stock and the price at which you sell after purchase.
How much do stocks usually cost? All stock prices are different. If you obtain stock when it is first issued, it's generally at a lower price - the initial public offering (IPO) price. (After which, hopefully the price rises.) Then the stock is sold in the secondary market (the New York Stock Exchange, Nasdaq, etc.) where the price fluctuates because of trading among investors.
Do you have to go through a stock broker? You can go through a broker or you can open an online trading account where you can direct the trading (purchase and sale) of stocks on your own.
How much does the broker take off? Brokers usually have commission fees that they charge. (Online accounts have commission fees too, but they are generally less.) Commission fees vary by broker-dealer.
You should do research about stocks in general. Pick some of the companies that you like (or the companies that produce items that you use or buy often). You can look at the companies and see how they do in the market.
Look at Yahoo Finance and do symbol look ups for the companies you choose. You can get more information that way about stocks, companies, and the prices at which the stock is trading.
I hope this information helps.
2007-05-20 15:43:54 · answer #2 · answered by 1+1=2 4 · 0⤊ 0⤋
You need to have a broker first, online is the easiest, and cheapest, contact Ameritrade, Etrade, or Scottrade and open an account.
After you have funds and a broker, you need to buy the stocks or mutual funds. For a beginner, I recommend index funds (which track and index made up of stocks) or mutual funds. These have less risk, because they are automatically diversified.
The best thing to do, as opposed to getting advice here, would be to read a book or 2 about investing to learn about the basic principles before you go buying stuff.
There are so many levels, strategies, and things to learn, it can not all be explained here.
Start small and simple, and as you gain experience you will only get better at it.
Don't trade too frequently, because that will only eat into your profits, buy and hold is the way to go.
Lastly, if you can get into your company's 401K, do that before you go freelancing on your own, because if you don't have alot of experience, it is harder to make money above and beyond what you would make in your 401K because of transaction costs and taxes. After you get that done, start your own brokerage account.
This is only my recommendation.
2007-05-20 15:34:12 · answer #3 · answered by Steve 3 · 0⤊ 0⤋
Open a brokerage account at Zecco and invest in the ETF DIA.
2007-05-20 19:11:34 · answer #4 · answered by Anonymous · 0⤊ 1⤋
It is very comp;icated. Good idea is look for a class in adult evening education.
2007-05-20 16:27:53 · answer #5 · answered by Anonymous · 0⤊ 0⤋