i was watching this show called mad money and this guy called in and said my 14 yr old daughter has made like 2 grand and so i want to make some money. where do i start doing stocks, how do i do them, and where should i start, what company should i invest in and how much should i invest.
2007-07-12 04:04:37 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
how do you do them?
i think maybe you need to learn what a stock is first...and since i doubt you will actually go buy some books and prepare yourself, go here and start reading -> http://www.investopedia.com
2007-07-12 04:09:37 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Individual stocks are not good investment vehicles for beginners. You MIGHT make money, but you are more likely to lose it.
Instead, start with mutual funds - index funds are best, because they automatically track an index like the total stock market, and have very low management fees. You have more chance of making money that way.
You need to understand that all stock market investments are intended for the long haul - at least five years. Trying to make a profit in the stock market in the short term is really just gambling.
If you prefer a stock-type investment, look at Exchange Traded Funds - ETFs. These are traded like stocks, but really are buying a bundle of stocks to match an index. Again, this spreads your risk and over the long term you can expect a return of 8 to 10%.
You must understand that stocks carry risks - there are no certain profits. And you need to do some background reading before you buy anything. Start at websites like http://www.fool.com or http://www.vanguard.com. Vanguard is also a good place to get started buying your ETFs or mutual funds.
2007-07-12 04:19:53 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Start by reading, "The Intelligent Investor," by Benjamin Graham, I believe copyright 1974. It is not only in print, it is usually easy to find.
A stock is proportionate ownership in a company. It is no different than being in a very large partnership, except you are not liable for business debts.
DO NOT DO ANYTHING UNTIL YOU LEARN A LOT.
If you do want to invest and not learn how to do it yourself, go to Edward Jones. It is a very good brokerage firm and it has great internal oversight of its brokers. They will help you reach your personal goals and do a good job generally of keeping you out of trouble.
2007-07-12 04:19:55 · answer #3 · answered by OPM 7 · 0⤊ 0⤋
After you learn about the market and how it works, you can practice here for free http://vse.marketwatch.com/Game/Homepage.aspx
to gain confidence.
2007-07-12 06:36:28 · answer #4 · answered by sixstringdad421 1 · 0⤊ 0⤋