What stocks should i invest in ...startting at $500?

Answer 1

I see you are interested in investing in the stock markets and think that you can start successfully by asking questions like this online. Just think, if winning in the stock market is as simple as posting questions like this, why are so many people still poor?

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/

Hope these information helps.


http://www.optiontradingpedia.com/

http://www.mastersoequity.com/

.

Answer 2

Not an easy choice by any means... because it all depends on how much risk you are really willing to take bro. With such little starting capita (you could buy one share of google, which would have to raise in price over 1 million dollars for you ever to be a millionaire - just incase you didn't have a basic understanding of stocks). l I would have recommended something below $10 like Sirius ($4 something a share before the merger), where you can get the most bang for your buck (the more shares you have - the better!). The more shares you have, the more profit potential with minimal market movement. On the other hand, the more shares the more risk you take on as well if things don't go so well. If you are still interested in stock picks and research, feel free to stay in tune with my website as I post the latest market news and hot picks:

http://www.buildsomebank.com

hope that helped man - good luck!

Answer 3

Starting at $500? Hmm, Google is selling somewhere near there.

Really, to "invest" (it is a specific term) you plan on holding something for a while. Consider these stock symbols when you are looking: NY, ISI, IYY, DVY, IOO, DIA, SPY, or even PXN. They are exchange traded funds (ETFs) and with them you have the relative safety of buying broadly into a bunch of good companies--while some are up, some are down, but the broad averages of these march up and down in a steadier and less volitile flow. Umm, since international affairs, particularly in the middle east are getting dicey again, consider IAU while you are looking. These trade like stocks and while they are technically mutual funds, they have no sales load (other than your broker's per share/trade commission) and very low internally-realized expense/management fees. One more thing, we usually don't have to worry about odd-lot trades these days, so you could likely buy about 6 or 7 shares of, say, NY (about $80 now, it was closer to $65 around this time last year, not too bad), plus $7 commission at, say, Scottrade (their minimum is $500).

Remember, stocks flop around, so don't get antsy, and riding stock tips can be very expensive, so don't get greedy or fall for tales that make you greedy. Just take it slow and easy, like planting a tree. That is "investing."

Answer 4

If you are starting with $500 then I would suggest buying a no load mutual fund instead of stocks. Whenever you buy or sell a stock there is a commission that has to be paid to the broker and these commissions will most likely wipe out any gains that you might see even in a well performing stock. In order to start trading stocks I recommend $10,000 to start so the commissions will take a much smaller percentage of your gains.

Answer 5

This penny stock service has years of proven experience. Ultimately it is the best service for beginners to use https://tr.im/qUNlW
You will have to wait between 3 and 10 days to get into the system in most cases. When I signed up it took 8 days. I wished it was faster, but if you can wait a week or two to start earn life changing money than you will have what it takes to make it in this business.

Answer 6

You have some really good and insightful comments to read and ponder. However, when starting out with just $500, sometimes it can be better to wait for a little more money before you make your first stock investment. The brokerage fee's will add up otherwise and your bound to make mistakes when starting out.

Read this for more info on brokerage fees. http://www.nabloid.com/brokerage-fees-hurt-your-return-on-investment/

Answer 7

Hi, here is a collection of informative articles about investing. a free online investing tutorial for you.

http://www.investingtutorial.info/

good luck !

wish you make fortune from investing !

Answer 8

YHOO.... With the CEO resigning, it is up to the new team to turn YAHOO around.