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Investing is like planting a tree. Trading is like chasing chickens. Both can be profitable. Both can lose money. They require either some careful digging or a lot of luck, sometimes an awful bunch of both.

May I suggest, first check out the mymoney.gov link below.

Then check out magazines like BusinessWeek, Fortune, and Forbes (all of which are online with a lot of free content, oh, for Fortune you go to CNN.com/money). Similarly, there are the newspapers like Wall Street Journal and Investors Business Daily. While the WSJ used to typically be known for its stock listing section, the real value is in the stories. As with the magazines mentioned, you will get to know things about a large number of businesses after a time of reading them. Eventually, you are going to go away from an article or two with the thought, "I want to be part of that!" That is when you plunk down some cash in a brokerage account and buy some. That is investing.

Trading, however, is a good bit different. It can range from buying a stock that pays good dividends, after the dividends are paid and the price has fallen. Sometimes the market isn't interested in the long term, so news of a special profit is seen as a short term thing, so the stock falls like a stone after an earnings announcement. Sometimes the market looks long term and after a dismal earnings announcement, the stock rises, like they expect the company to fix what was wrong so things will get better. Here you need to test your strategy, so use the portfolio features that abound on websites especially where there is business news--use them to practice, to test your ideas. Last year I had a dismal experience with some highly rated, good paying dividend stocks (preferred stocks and trusts), but as a whole they lost value, more than their high paying dividends returned. So I used a simple "portfolio" feature to test a couple of different approaches before I do that again. (So far, the S&P dividend "aristocrat" list is doing pretty pathetic, I am glad I didn't sink real money into it, but my other sample a home-made dividend list is making half again as much as the bank would have paid for that money, even though one of the companies lost almost a third--yet it was all an experiment, no real cash ventured, no real cash gained, but some ideas gleaned for the future).

Investing is boring, but can be very profitable. Trading is exciting and fun when you are winning. But learn about what you are doing and practice while your cash is safe in the bank until you have a better feel for what is going on, whichever way you go. Good luck.

2007-05-30 04:27:04 · answer #1 · answered by Rabbit 7 · 0 0

You are new investor, i think. so it is tough to deal by yourself in the secondary market. but you can go primary market and can apply in the IPO, if you get any offer. for know about the offer, you must read share based magazin and/or share based page of daily news paper. in the primary market, rate of the share, you are able to handle. it will give you huge experiance

2007-05-30 08:35:24 · answer #2 · answered by shibluhoque 2 · 0 0

HEY, IF U KNOW NOTHING ABOUT SHARES .DONT STEP INTO THAT FIELD ,WITHOUT GAINING INFORMATION ABOUT SHARES FROM A SHAREHOLDER OR FIRMS WHICH DEAL WITH SHARES. BECAUSE ,SHARE MARKET IS NOT A JOKE . FIRST UP ALL ,IF U WANT TO BE MEMBER U
HAVE TO PAY LOTS AND LOTS OF CASH ,AS A DEPOSIT.
ALTERNATIVE IS BUY SHARES FROM BROKERS.
AND IF KNOW NOTHING ABOUT SHARES ,THE BROKERS OR THE BULLS IN THE SHARE MARKET ,WILL EXPLOIT U .
SO , THINK VERY WELL.

2007-05-30 08:26:23 · answer #3 · answered by Wolf S 2 · 0 1

Hi, i recommand you a good and basic tutorial for investing. it covers all Issues related to your Investing and everything around it.

http://www.investingtutorial.info/

wish it will help you.

Good Luck , Best Wishes!

2007-05-30 08:42:56 · answer #4 · answered by Anonymous · 0 0

you must have a really big jar of k-y

2007-05-30 10:01:10 · answer #5 · answered by DennistheMenace 7 · 0 0

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