Ok, so I'm looking for some extra income, and I would like to try my hand at trading on the Stock Market, how do I get started, and how much should I expect to invest initially, does anyone have any sound advice?? Thanks in Advance!!
2007-07-06 03:29:11 · 7 answers · asked by ~~*Paradise Dreams*~~ 6 in Business & Finance ➔ Investing
You will want to get a general education on investing before you place any money into it. Start off with some basic books.
For general investing:
1) http://www.investopedia.com has some excellent tutorials
2) http://www.invest-for-retirement.com has a free downloadable book
3) Investing for Dummies, by Eric Tyson
For mutual funds, try Mutual Funds for Dummies.
For investing in individual stocks, try The Five Rules for Successful Stock Investing, by Pat Dorsey.
You will not be able to glean enough info from Yahoo Answers to start investing in the stock market. It will take many hours of learning before you can successfully invest. For if you do not, you will become much poorer.
Answer me this question? Can you define what a PE ratio is and why it's important? If you cannot answer this basic question, then you are not even close to ready. Read and learn so that you do not end up learning the hard way.
Whatever you invest in, it is wise to remember the instructions from famed investor Benjamin Graham. He gave 3 basic tenets that all intelligent investors must follow:
- You must understand what you invest in.
- You must strive for adequate, not extraordinary, returns.
- You must deliberately protect yourself against serious losses.
2007-07-06 04:30:17 · answer #1 · answered by derobake 4 · 0⤊ 0⤋
Investing isn't just something that you should 'try your hand at' with real money.
Start out at investopedia.com or hedgestop.com where you can start trading fake money for investments. You can open up an investment account with as little as $100 but I'd stick to mutual funds and stable investments (GE, Altria, Johnson and Johnson) until you have a better handle on things.
Start reading Forbes, Smart Money, and either Investors Business Daily or the Wall Street Journal to get a pulse on what's going on in the economy.
One you have a basic level of knowledge, yyou'll be ready to start investing.
Don't listen to anyone here talking about making some quick money by daytrading.
Good luck!
2007-07-06 03:52:04 · answer #2 · answered by Blicka 4 · 1⤊ 0⤋
I personally trade in small cap(companies market cap between $300M and $2B) companies. These are VERY risky but can easily double in value because of low liquidity(amount of stock that is traded). If you do your research and stick to your guns, you usually come out a winner. I repeat, do your research, check the EPS and balance sheet to see that the company isn't racking up a lot of debt, and has good cash flow. A good place to look for financial statements is here at Yahoo/finance.
2016-04-01 00:18:06 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Be very careful with the advise you solicit on "Yahoo Answers". You have no way of verifying the credentials or motives of these people.
Best way to start; READ!
Try books like "Retirement Investing For Dummies" or some basic books on investing (if retirement is not your goal).
You must learn: ASSET ALLOCATION
You must become familiar with: MUTUAL FUNDS
Don't deal with the least expensive brokers. They're geared to the experienced trader... not the "Newbie".
Fidelity Brokerage or Schwab are good places to start (after reading).
Don't invest in penny stocks until you have years of experience (if then......).
Never (ever) make an investment in something you don't understand.
2007-07-06 03:54:00 · answer #4 · answered by Common Sense 7 · 1⤊ 0⤋
There is no limit to how much you can lose!!
Remember this fact!
Use some money to learn more about trading.
You'll need to do courses..or you will lose your money...
guaranteed!
Putting money in the market means you need to protect
it from market falls.
If you are seriously prepared to do this, I suggest
you learn how you can protect your stocks with options.
I'll mention some resources that will help you.
2007-07-06 16:22:10 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Great idea!
First, I think you have to learn about the stock market and investing.
Then, you can plan and implement your plan.
Here's a good intro on how to get started in investing:
http://techfarm.blogspot.com/2007/07/how-do-i-start-investing.html
2007-07-08 11:54:50 · answer #6 · answered by TechFarm 3 · 0⤊ 0⤋
http://finance.groups.yahoo.com/group/TradingZoom/
2007-07-06 04:21:25 · answer #7 · answered by Anonymous · 0⤊ 1⤋