I only want to invest a small amount of cash to get an idea of the stock market. Many thanksCan anyone give me some basic advice on how to go about buying some decent shares ?
If you want a real good source to learn about investing %26amp; the basics on how the stock market works, you should sign up(it's free) at the Motley Fool's website.
www.fool.comCan anyone give me some basic advice on how to go about buying some decent shares ?
When you start learning about investing, my advice is to think in terms of ';risking.'; The word ';investing'; makes the whole process sound like it WILL make you money. If you turn it around and think in terms of ';risking';, you are more likely to actually make money.
Some one gave you advice about ';paper trading.'; Very sound advice. How to find the right stocks? Harder advice. I suggest going to a web site such as Fidelity or others that allow you to check out a list of ';Solid Dividend Stocks,'; ';Top Performining Stocks,'; or ';Best Value Stocks.'; Take a look at the stocks those lists offered up ... then look at the companies behind the stocks. It is an involved and time-consuming process, but if you keep the word ';risk'; in your mind, as opposed to the word ';invest'; you'll be able to stick with the process of weeding out stocks.
Some one also gave you the advice to start investing actual money in mutual funds or ETFs. Again, solid advice. Check out Morningstar.com for advice on ETFs and mutual funds. Find a solid mid-cap or large cap fund ... don't fall for the ';quick'; profit of a small cap fund at this stage.
My advice is to start with paper trading in stocks. Take your money and buy mutual funds or ETFs. AND be patient. It is a crummy market out there and the most seasoned pros are losing money right and left. If they can do it, so can you. Be patient. Now is the time to learn ... not a time to risk.
I wish you luck!
Uppity Wench
Oh yes, I have the perfect ideas for you. You can read more on my site since there are many aspects to it, but here it is in basic:
-enrol in a DRIP (dividend reinvestment plan) or
-buy some shares in a company that increases its dividend regularly, like a bank.
If you just want to try things out, these are the best ways, IMO. You can contact me for more info if you like, or see the posts I wrote on how to enrol in DRIPs. You can get started with less than $50.
MoneyEnergy
http://www.getmoneyenergy.com
It depends on your investment goals and appetite for risk. If you want low risk , then buy a diversified mutual fund. But, risk and reward go hand in hand. The higher the risk, the higher potential reward but also the higher the potential loss. Food and medicine are good , but you have to look at the invidual company also. Microsoft is at a 52 week low right now, but so are many other stocks. I think WalMart is a good investment of course. But, it really boils down to how much you can afford to do without for several months or longer. If you invest, your stock could go down, and you don't want to get scared after 2 weeks and then sell.
real investor dont buy stock when its high they buy low and they focus on company tht are just coming up. there is not alot of money made investing in company that have already maxed out a few times. get the before tht are super big
You should not start your investing ';career'; with stocks - start with mutual funds.
Getting an idea how the market works is great, and the fact you want to do that is fantastic. However you can do that on paper, pick a company or bunch of companies you like, see what a hypothetical investment of , say $30,000 would return for you over 2 or 3 years. To actually open an account and buy stock with a small amount of money, it would be best to buy either a mutual fund that fits your criteria, or an EFT to match the benchmark you are looking for.
This will give you diversification and for a small amount of money $500 to $1,000 minimum , give you a nice return and a good start in the stock market. Talk to an advisor first to make sure your risk tolerance and your financial situation is right to begin investing. Any questions email me.
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