Stocks Questions?

Question

I'm thinking of putting some money on the stocks but 1st i need some questions answerwell just 3 so here they are:1.What stocks should i put my money on?
2.How much money should i put in?
3.Could you really get rich just on stocks?
thanks for the answers

Answer 1

First, which companies are you interested in? Buying stock is buying an "interest" in a company, so what are you interested in? Where do you shop, what do you see as being a big thing in your view of the world, or what do you see as simply steady and solid?

Second, how much do you have? How much of what you have should you put into stocks? Do you have enough otherwise to pay your normal living expenses, your bills, and still have something to make grow? Do you have a solid bank account that you feel needs to be put to work to make more? Well, give yourself a cushion, some safety savings, and if you've got something that won't hurt if you lost it, that is what you invest.

Third, yes you can get rich just on stocks. You could lose it too. Companies go bust (remember hearing of a company called Enron?) but then companies get enormously big Berkshire Hathaway, for instance. Consider that if you had spent some $30 a share this time last year on TNH, Terra Nitrogen holdings, say bought a thousand shares, that $30k would be worth some $120k today, and it had been higher in mid summer. It can happen, usually doesn't, but the real question is will some company that you sink money into (check out CALM) make you more money than if it just sat in the bank growing interest? Banks are pretty safe places to put money to work, so you have to have some idea, some confidence, or you leave stocks alone. Fair enough?

Answer 2

1. Should by funds - not stocks . ADX excellent start - solid & at a discount
2. As much as you can after keeping 3-6 months in exepenses in reserve. If have expensive debt pay that 1st.
3. unlikely but goal is not to get rich in investing. Goal is to get your $$ working so you can work less.

Answer 3

1. Indexes.
2. All you can save, if you are thinking long term.
3. Yes but with active trading (as opposed to the usual buy and hold), and preferably also managing other people money.

Answer 4

If you are new to investing, you are better off putting your money into a mutual fund instead of an individual stock.
By doing this, you have a better chance of not loosing all of your money.

A mutual fund consists of a lot of different stocks so you are not relying on just one stock to make money.

You can get started in most mutual funds with a minimum of $1000.