wanting to start investing but not sure how?

Question

I just graduated from college with a degree in finance so i know more than the average person, but i don't feel my schooling prepared me adequately for truly being successful in the investment world. I was thinking about getting in on some penny stocks to just learn the basics and learn how a follow and predict s dtckd activity. is this a wise plan, I am very interested but being in MS there aren't many brokerage firm I can go to and hassle people about taking me under their wings so I just gotta make my own lane. Any suggestions would be great!

Answer 1

A good idea is to do some research first. read some books, watch Cnbc, Mad Money with Jim Cramer,etc.

while you're learning, save up some money.

If you use a broker, you will be paying them commissions. You're better off becoming your own best advisor, since you're smart and educated. you can do it.

start small. buy a cheap stock, modest number of shares. wait, see how it does. If it's good, buy another block of shares, same company. If you want, you can cash out when you see some profit ( subtract trading fees, like with etrade.com ).

all stocks go up and down, even good stocks. either sell on a peak and buy it back later, or hold for the long term.

brokerages don't really care much for small investors, better off to learn what they do to make money, then do it yourself.

Answer 2

Be very careful investing with a financial adviser. If the advisers in India are anything like those in the UK then they are pushed hard to make sales and will place your money where it makes most commission for them. General principles of investment advice: Always pay off your debts before you invest. The interest you receive on your investment is generally less than you pay on your debts. Make sure that you always have access to an emergency fund. You never know when your roof will start leaking or you may have to pay for medical treatment. If you place your money into a product that allows instant access you will not get a very good investment return. The equivalent of a few months salary should be enough. Next, start making plans for your retirement. I know this sounds odd when you're young. Look at other tax efficient savings & investments. These investments to not attract tax and this gives them an advantage over other tax bearing products and often enables them to pay more returns to the investor. See the attached link for examples of tax efficient products in India. Consider tying your money up for short periods. If you don't need access to money for one year then they will pay you more interest - if you can wait two years then they'll pay even more. A word of warning - be careful about tying your money up for too long - as an undergraduate, your life will probably change more over the next ten years than at any other time. Those were some textbook principles but I'll add one more. Consider investing in something that you love - like your house or your education - they are rewarding in a more immediate way and are sometimes financially rewarding too. This is what I do. Good luck. EDIT: Never invest in anything that talks about 25-30% a year!

Answer 3

Hello you received some good answers thus far and I know what you mean as I was a banker with BOA in Ca for 20 years and although my job was to make decisions on granting loans for start up companies and small companies, and I knew of the forex markets (currency trade) I really never invested myself. I tried stocks but the time involved with following a certain group was more than I could afford to spend and although I was aware of forex, again I could not afford the time to really learn how and why things were done the way they were. I did find a club to join through a recommendation and so far it has been great. I average a great return each month and I have learned alot on what to look for and how to make a trade. If I can be of any further help write me at [e-mail] Have a great day
Bob

Answer 4

Don't do penny stocks. Unless you can spend the same amount on about 10 stocks. Same with nickel stocks, but only five stocks. Hit up some of these free seminars for investing. The ones where they are trying to get you to buy there product. Usually get free information and materials. I wouldn't recommend CNBC, Mad Money or anything like that on TV. You are not the only watching the show. If you do invest in their stocks, buy early and sell no later than 2-3 days after the surge it presented by being on TV. Try the free fantasy stock programs on the internet. These will help you learn at the same time, but won't cost you money. try the motley fool, it costs but is actually pretty accurate.

Answer 5

You can go get some more information and experience.

Take the CFA course. It is one of the top recognized courses and you will easily land a job anywhere. Go look at the average wage earned by those guys. It's REALLY high, higher than MBA students!

Oh, and you can learn on your own time obviously, by reading websites, books, etc.

I'm just guessing you need a job since you just graduated. Getting a job in the industry is the best way. The best way to get that job is to get a CFA. Read the 3rd link below for salary info.

Answer 6

Do an on-line search to see if there are any investment groups in your area, and ask friends and associates if they know of any groups. It is becoming a fad for groups of friends and work associates to form little investment groups to help each other learn the ropes and to share the ups and downs of the market. One can also buy books on investing and finance. Visit Barnes and Noble on-line to search for them.

Answer 7

i think that the way to would be to wait until theres some sort of crash in the market then use all ur life saving to by a really expensive stock then make sure its the most powerful stock in the hole world then just sit there only wondering if anyone realizes what kind of mad man u really r

Answer 8

Now is the time to start thinking about retirement investing. I have a free downloadable book on my website that will teach you everything you need to know to build wealth for retirement. I am not a financial rep and am not selling anything. Just click on my profile and read the info or email me.