I want to begin Investing, where should I begin?

Question

what websites and books to read for information

Answer 1

I suggest you start reading everything you can get your hands on about investing. Start learning about accounting, taxes, law, stocks, bonds, options, commodities, real estate, entrepreneurship, sales, marketing, advertising, shipping, manufacturing, retail, wholesale, economics and finance.

Also, start watching CNBC TV, Jim Cramer's "Mad Money" TV show and the "Fast Money" CNBC Program. FOX news also has some decent programming on Sat. morning about investing.

Subscribe to Investors Business Daily, the leading paper used by professional investors, money managers and successful individual investors. If it is too expensive for you, read a copy at the library.

Read the news everyday, national, global and financial sections.

Start a small business of your own. This will help you in many ways and speed the learning curve about business and investments.

Open up a brokerage account with a leading brokerage and fund it. After some homework, start investing in stocks. One of the best ways to learn is to participate, even in a small way. Learn from your mistakes but don't be afraid to make mistakes.

Answer 2

I suggest getting a free subscription to the Investors Business Daily (IBD).

Finding a fundamentally sound company in terms of margins, return on equity and growth prospects is half the battle.
At some point, even the best companies are a bit expense and trust me...there's nothing worse that knowing you' ve found a great stock, but paid way too much for it, thereby showing a paper loss for years!

IBD will help you learn the TECHNICAL aspect of buying stocks.
You'll learn to read charts and volume....while considering the insider and institutional holdings which REALLY move the stock.

Answer 3

WOW. That's a tough question. Where to begin? The sooner the better!!!!

First, contribute enough to your 401k to get the company match (if you're employed and if they offer one).

Secondly, max a Roth IRA. You can put in $5000 this year. Roth's are such a great deal (because you NEVER pay taxes on them and they're super flexible) that the govn actually limits the amount of money you can put it. DO IT. You have to have earned income to do this though (research IRAs at www.fool.com--too much to explain here). Put the money in a target retirement date fund and forget it. I use Fidelity--Vanguard is a good choice too. No fees, low expense ratios, great reputations, great performance history.

Next, put enough aside in a high yield savings/money market for emergencies plus any big unusual expenses you anticipate making in the next 2 years. For instance, if you're going to buy a $30000 car in a year, keep $30000 plus emergency money in cash--don't put it in stocks. Make sure you're getting over 5%--savings accounts and money markets are paying more than CDs right now in many places. I use Fidelity Money Market (5.%).

Finally, you can invest outside your retirement accounts! If your goals are short term, stick with cash. For longer term goals, stick to index funds. Boring, but your BEST bet. They minimize taxes and fees, have no commissions to pay, and parallel the market returns (which most mutual funds lag even before fees are paid).
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Answer 4

First, figure out what you want to invest in.

Then learn about rate of return.

Learn what the risk factor means.

Some C.D.'s,which are usually considered safer than other investments, may pay about 5% annual interest.

Personally I've received a 24% annualized rate of interest, over the last 6 years investing in physical Gold right here:

http://www.goldmoney.com/

Good Luck!

Answer 5

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.
http://debt-trap.com/category/Tips-To-Invest-In-Shares.html

Answer 6

Visit the book store and you'll find tons of books for new investors. If you want to try the newest way to invest with good returns and minimal investment (start at $50.00), visit BMZ.com and invest on Prosper.

Good Luck

Answer 7

The Intelligent Investor by Ben Graham (a classic)
Anything on Warren Buffett

for openers.

Answer 8

I see you are interested in investing in the stock markets. Start trading stocks is as simple as opening a trading account and then picking a stock and then buy. However, that simplicity is truly the wolf beneath the sheep's skin.

There are quite a number of things you need to learn before you can even start thinking of the stock markets ...

1. You need to understand how the stock market works and what it is exactly about.

2. You need to know what are the different styles of trading in stocks and shares.

3. You need to read about why so many people lose their shirts in the stock markets so that you can avoid their mistakes and also decide if this is a risk you want to take.

For all these issues and more, you can read about them from some of the articles that I wrote at http://www.mastersoequity.com/articles.htm

After you are adequately armed with the basic concepts and ideas, you need to know how to find profitable stocks to trade or invest in. You can do that the easy way by subscribing to stock pick services (example http://www.stockpickmaster.com ) or you can learn to use charting tools and softwares to find stocks with parameters that you can pre-define. (example http://worden.mastersoequity.com/)...

Remember, the slogan "Just Do It", Just won't do for the stock markets. If profiting in the stock markets is as simple as buying a single stock , then why are so many people still poor?

After you have all the above mentioned knowledge, you need to ask the following golden questions before you can decide whether a stock is worth buying or not :

1. Why are you of the opinion that this stock will rise?

2. Is your opinion valid in the first place?

3. When are you expecting it to rise? Can you hold on for that period of time or longer?

4. What is your expected entry price? After what price would your expected profit margin be too thin to enter upon?

5. Where is your expected stop loss point? What is your stop loss point based on? Where will you tell yourself that it is time to take a loss and get out?

6. Where is your expected profit taking point? What is your profit taking point based on?

7. Does the way you are buying the stock allow you to hold on until your expected profit taking point?

8. How much of your money should you dedicate to this one trade?

9. What is the level of primary, secondary and idiosyncratic risk you are undertaking when deciding how much of your fund to use?

10. What is your cashflow need? Does your cashflow needs allow you to hold the full lifetime of the stock?

After you are able to answer all these questions confidently, THEN you are ready to... PAPER TRADE your stock strategy. Yes, even at this point, you are NOT READY to trade for real. You should trade on PAPER for at least 6 months and become consistently successful BEFORE you take your stock strategy into real life.

Then.. you are ready to start... but there is still no guarantee of success as paper trading is very different from real trading. You will need another maybe 1 year or 2 trading very little money and be consistently successful BEFORE you are ready to increase your stakes.


So, as you can see, success in the stock markets is not easy at all the the less knowledge you have, the more risk you undertake. I lost hundreds of thousands in the stock markets before I become successful.

Take heed and good luck.


All in all, investment and trading is a lifelong education and non stop learning. No one is ever done learning and catching up with changes in the markets.

If you care to read about how I went from completely broke to retired millionaire trading stocks and options by 28 years old, you can go to http://www.mastersoequity.com/


In conclusion, what I am saying here is that trading stocks and investing for profit is a professional game that takes years and a lot of money to learn, so it is not something that someone in need of college fees should do ... now.... but you should certainly start to learn about it right now.

Hope these information helps.


http://www.optiontradingpedia.com/

http://www.mastersoequity.com/

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Answer 9

http://www.investopedia.com has excellent tutorials

http://www.invest-for-retirement.com has a free book

http://www.moneychimp.com has more tutorials

Mutual Funds for Dummies by Eric Tyson and The Little Book on Common Sense Investing by John Bogle are excellent books for beginners.

Answer 10

start by investing in your education.
read
'48 days to work u love'
'what colour is ur parachute' work that is vocation is more profitable than a job.
'the millionaire next door'
'think and grow rich' poor people who get wealthy all ways become poorer (USBLS)
learn to manage /own ur money b4 it owns you. visit daveramsey.com for a common realistic proven approach to money and life.
Never put your money where u don't understand how it works or where it is going to increase at a ridiculouss rate. u'll lose it just as fast.