over the last 6 months I saved about $10,000. I don't have any debts. I put the money in a high yield savings account and recently I put it in a CD account. The CD account ends in April. I'm only getting 5% APR. But I feel that I'm barely getting anything for saving my money. My parents suggested investing my money in stocks. since I'm 22 if i lose it all I have plenty of time to earn it all back. How do I start? Is there anyother way I can invest my money?
2007-12-10 03:53:25 · 6 answers · asked by Anonymous in Business & Finance ➔ Investing
Start by learning about investing. Investopedia has a lot of good stuff, as does investor's business daily.
Buy a book like how to make money in stocks by William O'Neil. Watch Mad Money on CNBC.
Don't invest in his stocks offhand, but use the experience to learn about the market, etc.
Then once you're ready, start slow. Buy a couple of shares to start and paper trade the rest. You can keep the other money in the CDs to start, and after 90 days of paper trading and trading for real with a real acct, you can add in a little at a time.
Shoot for growth stocks like AAPL, PCLN, POT, PCP, PCU, CAM.
Your parents are right. If I started doing now back when I was 22, I'd already be retired!
Hope that helps!
Best of luck!
2007-12-13 19:23:24 · answer #1 · answered by Yada Yada Yada 7 · 1⤊ 0⤋
Hi!
YES, there is another way you can invest your money.
Do not invest in stocks. Too risky for you as you don't have special knowledge and related experience.
Try to invest in someones small business. You may receive up to 20% guaranteed interest a year. I run my own business and my net profit is over 5% a month.
Some of the European banks offer 7% to 14% APR (3-5 years deposits).
If you invest $10,000 at 14% APR, you will get back $19,254 in 5 years.
Email me at investment4us@hotmail.com and I'll give you a valuable advice if you are serious about investing.
Best of luck!
2007-12-12 04:20:02 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You really do not want to loose it all, and if you invest the money judiciously in stocks you will not. Do your parents invest in stocks?
$10,000 is a fair amount of money but not a great amount. The problem with buying stocks is that they are subject to specific risk, so if you do not own a large number of different stocks you could potentially loose a significant portion of your money if one of the stocks falls on hard times for example Country Wide Credit.
An excellent approach for a beginning investor is to invest in a mutual fund which reduces specific risk to a minimum. Fidelity, T Rowe Price, and Vanguard are companies that offer a wide variety of mutual funds with excellent track records and low expense ratios. They are all on the internet.
2007-12-10 04:28:27 · answer #3 · answered by Anonymous · 1⤊ 1⤋
It's great that you're putting money away.
A first step toward a more aggressive investing strategy is to start investing in a mutual fund account at a place like Vanguard. Purchase the an index fund, which seeks to mimic the return of stock market in general instead of trying anything fancy.
2007-12-10 04:04:43 · answer #4 · answered by JoeC 2 · 2⤊ 1⤋
-Index funds
- etf's
it's true about what they say diversification is the key word, don't put all your eggs in one basket and you will do alright
2007-12-10 04:50:54 · answer #5 · answered by Danielle 3 · 2⤊ 0⤋
buy e-trade shares
2007-12-10 14:55:50 · answer #6 · answered by Anonymous · 0⤊ 0⤋