I know that's not a lot of money but where's a good place to start?
Are penny stocks a good idea?
The market goes up with the holidays right?
2007-10-20 04:50:36 · 11 answers · asked by laurenhonish 2 in Business & Finance ➔ Investing
Well, you will most likely have to pay $4 to $7 to buy stock. If you only have $100, and you will be paying $14 (to buy and sell) that means you will have to make a 14% return JUST TO BREAK EVEN. Buying ONE stock and doing that is very very very rare.
A better idea would be to invest in mutual funds consistently every month.
Also, the stock market is not a good place for short-term investments. If you are thinking about what will happen over the holidays, then you are thinking way too short-term for stocks.
2007-10-20 05:00:31 · answer #1 · answered by Anonymous · 2⤊ 0⤋
Penny stocks are usually a bad idea especially for first timers.
You would be better off with one share of a $100 stock then 200 shares of a .50 cent stock.
The markets don't have to go up during the holidays they don't have to go down during October, It just often happens that way.
Choose a stock that has a dividend reinvestment plan (DRIP)to get in at a low amount and continue building shares, with monthy contributions.
Directinvesting.com is one place that you can set up a DRIP program their fees are a little high, been awhile since I set up a DRIP
This is a long term plan, Pick a stock that has good long term growth prospects, and add more and more over time.
2007-10-20 11:58:39 · answer #2 · answered by Vultureman 6 · 0⤊ 0⤋
Penny stocks can be very volatile and are not usually a good place for a beginning investor.
I agree with the former poster who suggested saving your money until you have more to invest. You will be charged by your broker for every trade you make (every time you buy or sell a stock) so you probably want to buy them in larger increments than $100 to minimize the cost as a % of your investment. These fees can vary widely so shop around for a broker that meets your needs. For a starting investor who will not be trading a lot, www.scottrade.com is a good idea.
2007-10-20 12:01:41 · answer #3 · answered by Michael C 7 · 0⤊ 0⤋
www.motleyfool.com for lots of ideas/opinions
penny stocks are generally not a good idea. they're like the lottery - you definitely could get lucky & win big, but you're not likely to win w/ them. (this is esp. true if you don't know much about stocks or the specific companies you're buying)
the stock market does ~tend~ to go up (i.e. it's not guaranteed!) w/ the winter holidays (thanksgiving, christmas), but that's the market as a whole & should not be applied to individual stocks. even as the market as a whole goes up, a number of individual stocks will go down at the same time.
2007-10-20 12:11:15 · answer #4 · answered by anna 2 · 0⤊ 0⤋
One hundred dollars is not going to get you far in the stock market. Put it in the bank and save up. While you are saving, read a good introductory book on basic investing so you don't get burned.
There is NO guarantee that "the market" or any specific stock will go up during the holidays.
2007-10-20 11:56:08 · answer #5 · answered by npk 7 · 1⤊ 0⤋
u would be better off going with a short term investment such a high yield CD or something of that nature they have them for as short as three to sic months i think.Plus u dont have to worry about getting burned as in stocks.Read a book or two or talk to a financial advisor first before seriously considering the stock market as an investment.Also stay away from penny stocks they are way over hyped u will get burned bad trust me.
2007-10-20 19:54:22 · answer #6 · answered by jonathan c 1 · 1⤊ 0⤋
By the time they take commissions and sales charges you wind up with nothing. I bought some boxes of rifle ammo last summer and they tripled in price by the first of october; I turned a hundred dollars into three hundred dollars. As the price of fuel rises the cost of anything with weight to it increases even higher. Common things like hunting ammo will always be in demand; and will cost much, much more.
2007-10-20 12:24:15 · answer #7 · answered by acmeraven 7 · 0⤊ 0⤋
I own say a no-load mutual fund at Vangaurd. If you want stock ideas, I would suggest http://www.top10traders.com - it's free - each month the site ranks the best-performing investors.
If you want a cheap broker, I would suggest Scottrade. Good luck.
2007-10-20 14:17:25 · answer #8 · answered by Anonymous · 0⤊ 0⤋
with $100, it would be better to put it in mutual fund or CD. CD won't give you much, but 100 bucks give you less room to 'play around' in stock market investing.
2007-10-20 22:08:46 · answer #9 · answered by BigBen 5 · 0⤊ 0⤋
Id say the stock market would be a good place to look.
2007-10-20 11:54:24 · answer #10 · answered by Anonymous · 0⤊ 3⤋