I would like to invest in stocks, but I just don't get it. I don't know how and where to start.?

Answer 1

start with understanding yourself. put your financial goals in writing and know your own risk tolerance. secondly, identify how you should invest. you can either be value investors, stock traders or even a speculator. then, only start with identifying which stock to invest and when to buy. though it sounds easy, you need a systematic approach to do this, so that your success is sustainable and your losses can be limited. last but not least, finalised your exit strategy. either you want to hold them forever, and keep the dividends, or just sell them as soon as it meets your target price.

Answer 2

You have several alternatives such as making an appointment with a brokerage firm or investment advisory and opening an account. Once you get there, you need to do an interview with an investment adviser who will lay out a plan and measure your tolerance for risk. The investment adviser is going to be biased toward savings, so he may push you towards opening a traditional IRA where you can contribute up to $4,000 per year and deduct those contributions from your income. For more risk averse investors, the adviser should talk to you about stock funds which allows you to invest your money into stock mutual funds that diversify their holdings. You will get professional management, and you can also transfer the funds from one family to another, buy and sell, etc. You can also have your money partially invested in a series of funds, some in individual stocks, like what we do for our clients, and the remainder of any cash will sit in a money-market fund where it earns interest while it waits to be invested. The drawback of the IRA is that it is an investment vehicle and you may not withdraw your funds before age 59 1/2 without paying regular tax and a 10% penalty on withdrawal. But you can roll those funds over into another IRA anytime you want.

You may also wish to purchase membership in the National Association of Investors Corporation (NAIC). This is a group of small investors established in your community who operate an informal fund and study stocks. The group usually meets weekly or monthly, and they recommend stocks to each other based on research, and they teach each other research methods too. If meetings are big enough, representatives from publicly-traded companies will come to your meetings and show you the fundamentals and why you should buy. NAIC groups also subscribe to a monthly journal called Better Investing which is a magazine devoted to teaching investors how to watch stocks and make the determination to buy or sell.

But you don't even have to join a stock club, for that matter. Subscribe to Better Investing. The journal will give you a list of publicly-traded companies that allow you to buy shares directly from the company's bank. That is how I bought shares of McDonald's by bypassing the traditional broker. Usually, however, there is a minimum-share purchase, like 10 shares, and then you can send money to the bank and they invest it in the company's stock.

Start with the NAIC if you are a conservative investor and happy investing.

Answer 3

A. Read "investing for dummies"
B. If your employer has a 401(k) or similar program, enroll in it. The HR department and the administrators of the program can refer you to a great deal of reading material.
C. If your local community college or adult ed (through the parks and recreation department for example) offers a "beginners guide to investing" course, take it.

The one thing that makes me very comfortable with having all $70 of my money in the stock market is that it is liquid ... that is, I have access to my money. Investing in real estate or corporate bonds is less liquid ... that is, it is much harder to find willing buyers for those assets who will pay enough that you don't lose your shirt.

The stock market isn't for everyone: a good beginning would be a reputable mutual fund. Your bank may offer an investing department, or a knowledgeable friend or relative could refer you to their money person.

The only thing I know for sure about investing in stocks is you have to look at 5 year windows: don't put in more than you can afford to have tied up for that long, and don't look at the stock reports daily. My broker tells me to only look at the end of the month ... it isn't like a piggy bank where you put it in one day and take it out the next.

I wish you luck and success with your pursuit of the American dream.

Answer 4

Go read "Rule #1" by Phil Town. He is a very conservative investor, but he gives you all the basics. Then, if you are ready for more, go read Jim Cramer's two books: Real Money (Sane Investing in an Insane World), and Mad Money (Watch TV, Get Rich).

Then, when you go to a discount broker to set up an account, make sure it allows you to "paper trade," i. e. where you can buy and sell stocks with pretend money, and see how you do, using some of the principles and/or theories laid down by these guys.

Answer 5

Stocks are riskier than say government bonds, but it can be fun if you have some extra money you'd be willing to risk. If you're looking to actually earn money, I would go with a mutual fund. These companies invest in a whole bunch of stocks so that if one company bombs, you haven't lost anything. You can even invest in a more aggressive fund if you're looking for fun. I'd check out morningstar.com. They have EVERYTHING you'll want to know and you'll even be able to invest through that site. So good luck!!

Answer 6

First get a book from Amazon on playing the stock market. Then open an account with a broker; find the names on your search engine, there are too many to list here.
The broker will have a site where you can go to get the gen on the IPOs. {companies where you invest} Dump a lump of cash in the broker's a/c and you're off.
Good luck

Answer 7

Why do you want to do that?
Stock investing is quite risky. It is like gambling.
All forms of investing are a little like gambling.
You are better off with some mutual funds. You can invest in a fund that is based on stocks...aggressive stocks, solid stocks, etc.
Mutual funds are more convenient.
You see, everytime you make a trade in stocks, you have to pay a fee. Those fees add up and cut into your profitabily.
With a mutual fund, you just throw some money at it and that's that. There is a small management fee and that's it.
Mutual funds are better.
Also, if you have a lot of money and want a safe play, look at bonds. Bonds are usually much safer than stocks.
You need a bigger chunk of money to invest when buying bonds though.

Answer 8

Well, don't listen to this people, they don't know what they are talking about (how do I know?)
I think it's time you go visit your local stock broker. He does everything. All you do is tell him how much you want to spend, your time span, your willingness how much you willing to lose, and then answer a few multiply answer questions he may have, as which he would explain it all.
Hey, if you don't understnad it, how can you screw it up? Your not doing the work! He is, the one with at least 4years of college just for that!
Don't get your hopes down, even though you know as much as a Horse in the Ocean.
Good luck!!!

Answer 9

Make sure you've maxed out your IRA and 401K first...this potentially helps you at tax time. If you still have investment bucks left after that, invest in an index fund. Such funds buy equal percentages of say, the top 100 stocks on the Dow, etc. They realign periodically, if some rise and others fall. A newbie investor's chance of beating the Dow is lower than his/her chances of making it big in Vegas.

Answer 10

if you go to top10traders.com you can play a pretend stock market game, they give you 100k of fake money to invest anyway you like and they rate you against the other people that invest there. great way to learn about investing, and you can ask the other people on the website any question you like. it is totally free