What is the stock market all about ? How can I make money and start at it ?

Question

I am interested in learning about the stock market. Can anyone adives me and give me my best options along with how to start at it all ? I have the slightest clue only to wither you gain or lose money.

Answer 1

Congratulations on getting started. It’ll help you more than you know!

Your first dollars should be spent on getting educated on investing. You don't have to train to trade them professionally, but we are talking about your future here. So the more you learn, the more it'll help you! So let's start there.

You ask a very broad question, so be prepared for a pretty long answer. Just take it in chunks!


How to invest depends on what you already know. We'll assume that you're beginning!

A good primer is How to Make Money in Stocks by William O'Neil. You can get it cheap just about anywhere. It’s widely available new or used.

Another good one is one of Jim Cramer's books like Real Money (he’s got a few).

But books will only get you so far. At some point, you'll also want to get at least a little training. There are some great education companies if you want to make the investment. Investools.com or optionetics.com are both very good companies as is tmitchell.com who teaches trading futures.

For free, you can start by visiting thestreet.com and investopedia.com. That'll get you a pretty good primer so at least you'll understand what the markets are and what a stock is, etc.

If you get a chance, watch Mad Money on CNBC. Don't trade any of his picks until you track many of them over time. Just use the show to get you to understand some basics and get a feel for the market itself.

Next, subscribe to something like Investorsbusiness daily or something like that that can help you identify good stocks.

Once you understand stocks, go to 888options.com. It's a website that'll help you understand options (what they do, how they work, etc). You don't need to trade them, but the more you know, the more you'll see how options can really be the safest way to invest (once you're educated).

For discipline (which is crucial to successful trading), probably Trading in the Zone by Mark Douglas or Mastering the Trade by John Carter

I know that’s a LOT to absorb. Just take it one step at a time for now. Start with a book or two to give you an idea of where to begin. Take your time, and let it seep in.

As you get up to speed, you should papertrade to practice (highly recommended). This should help reduce your losses in the beginning as you get used to buying/selling.

You can practice for free on almost any reputable broker site (optionsxpress, scottrade, thinkorswim, etc). And yes, you can definitely deal easily online.

Start slow, then as you figure things out, you can buy more shares.

Congrats again on getting started. If you have any questions, please let me know.

Hope this helps!

Answer 2

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.

Answer 3

If it is cash that you will not have got to depend on to help your self then positioned all of it in a brokerage account. I use Tradeking in view that it has $five trades. There's no purpose to not begin making an investment with your whole cash. You can simply create low-danger portfolio. Maybe make investments three/four in a cash marketplace mutual fund or CD and the leisure within the inventory marketplace to begin. In all truthfully, you will have to positioned all of it within the inventory marketplace now. The recession has extensively diminished inventory fees and they're practically on sale. In a couple of years you'll be very completely happy you bought whilst the marketplace is down.

Answer 4

I think you might find Mutual Funds much easier than the actual stock market at this stage. In a Mutual Fund, you let the promoter of the fund handle your investments.
So get as much information as you can, and only then, start out investing. Happy Investing :-)

Answer 5

i think you must invest in education first, you can buy books and do some courses.