I'm new to the stock market, what should I buy? Any top picks?

Question

I just graduated from college and want to try investing some of my salary in the stock market. I'm going to start small, like $2000. I'm leaning toward IT stocks b/c my friend earns a lot from Apple (APPL) stock. Any advice on which stock to pick?

Answer 1

Going to have a nice long run at things if you just got out of school and want to invest over your working lifetime. Congrats.

There are a couple of tacks to take, which you might get some good miles from. One is find companies that are (1) profitable, (2) make a good return on their equity (the part that stockholders own), and (3) have good expectations of the future, sometimes estimated by something called the price per earning to growth, or PEG. You might consider those that pay good dividends, but still have money enough to keep things cooking well.

New Zealand Telecom (NZT) is interesting. Southern Copper (PCU) is a bit pricey, but you get some really good value. Take a look, while you are looking, at Silicon Precision (SPIL) or Houston Wire and Cable (HWCC), a couple of good industrial providers with solid books and solid growth prospects. I'm not overly fond of clothing retailers, but give these two a thought: Cherokee (CHKE) and Limited Brands (LTD).

The other side of the coin is buy a broad basket of stocks, such as what you can get with exchange traded funds, or ETFs. They may be mutual funds, but they have a simple formula without spending money on active trading managers, so the expense fees are dirt cheap. DIA gets you the Dow Jones Industrials. SPY gets you the Standard & Poors 500. You get them warts and all, so if some stink, there isn't a manager saying minimize these and maximize those. Consider some like NY, the 100 biggest (by market capitalization) companies on the New York Stock
Exchange, or DVY, Dow Jones select dividend paying companies (not the biggest yields, but the steadiest companies consistently paying good dividends), or IOO (100 biggest publicly-traded international companies).

One method is like using a high caliber rifle, the other a shotgun. Either way, choices like these won't be terribly embarrassing if things go bad in the market.

You might also shop around for some DRIPs, dividend reinvestment programs. A good company that pays good dividends and reinvests them in more stock for you (watch the fees, some programs are better than others), is as close as you will get to compound interest in the stock market. Some people have done amazingly well in this kind of otherwise boring investment vehicle. There can be some difficulties with taxes once the snowball starts accumulating really well, but then that means your investment is starting to be worth a bundle, nice problem to have. Be patient and good luck to you.

Answer 2

Congratulations on your graduation!.
Thinking of financial income right after gradution is a very positive thing
But, you got to think it over and talk to a good financial advisor to understand the benefits/risks involved.
High risk == high rewards, but at the same time . u could lose everything too.
you mention about your friend making some $$$ off of AAPL. Its not the only stock people are making $$$, there are oil company stocks, banks, biotech stocks, basic materials,,,etc..etc. Also, do you realize how many people are losing money too?? We always talk about 5% of people who are successful Coz, we dont want to talk the other 95% of people. :) Start with a short term CD and get all the learning (stocks/options) as much as you can and also about all kinds of investing strategies.

Answer 3

Hi there,
I've been trading the market for just a few months. My cousin actually told me about this website ( http://pennystocks.toptips.org ) and I signed up immediately after. This is my honest review about their method. I'm not someone who has a lot of time to be researching for ideas because I work many hours. they made it incredibly easy for me to make money in the market. Their reports are easy to read and follow. I've tracked most of the stock ideas that I've received in my e-mail from them and MANY have seen some nice gains after their announcements. I've made a nice profit (55% return on my investment on one, and 112% on the other!) on a couple of suggestions he's given and plan to start trading his ideas a lot more.

For more info: http://pennystocks.toptips.org
Bye Bye

Answer 4

I started working with penny stocks less then one year ago and I think it's great! There are a lot of opportunities to make big money, you just need to find them!

At the beginning for me was really useful the support of this method http://penny-stock.keysolve.net

It's a simple course that will teach you how to move your first steps and how to grow fast in this buisness.
I will tell you how was my first experience:
I started with a lighting technology company that was overdue a breakout from 75 cents.
Just two weeks after I alerted my subscribers… that breakout arrived! A 362% return later and the stock had risen to $3.47 cents…
Turning my starting stake of $1,000 into $4,625, and it was just the beginning!

Answer 5

My advice for all new investors is start by visiting Vanguard.com and start with a quality mutual fund or index fund.

Many new investors do not realize how hard it is to be successful trading "individual stocks." It takes a lot of time, knowledge, and patience to trade "individual stocks." These are things the average working guy or gal sitting at home does not usually have. This is why many people invest in funds instead of "individual stocks."

Answer 6

Buy VIP = Russian telecom - up about 1200% in last 5 years. Up 50% last 2 months.
Buy GILD - Premier aids drugs and bird flu vaccine maker. Doubles and splits just about every 18 months.
Buy CRDN - They make 90% of the body armor used in IRAQ. They're also reporting earnings in about 8 hours from now.
Don't just buy. Do some research first and always do your own research. DOn't rely on any stock pickers, especially professional ones.

Answer 7

I'm no expert, but try Wells Fargo (WFC). With the fires in S.Ca, they will need loans to do rebuilding and WFC is strong in that area. The company is 150 yrs old +, and I'm a Bus Mgmt major; am doing a report on the company right now. It's just a gut feeling.

Answer 8

If you wish to enter the Indian stock market, then you can start from here

www.vjondalalstreet.com

Answer 9

You're making one of the most common mistakes of newbies to trading. You're asking strangers (whose qualifications and motives can never be known by you) to tell you how to invest your hard earned money.

My suggestion for you is not fun..... but I guarantee you it will do you well for a lifetime.

The choice is easy. Continue to make typical newbie mistakes... or take the time to "learn". Six to eighteen months of reading and understanding will save you thousands of dollars (10's of thousands over a lifetime).

Consider yourself warned.

(good luck!!!!)

Answer 10

You should put your money into the capital preservation fund money market and also US treasuries. the market is doomed. You might also consider gold wafers.