How can I invest small amounts in the stock market?

Im pretty poor...can I invest $20 for example.

How does it work? is there a possibility that I can loose all my money if I don't do it right?
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Thanks for ruining my dreams guys!

Before you invest even small amounts in the stock market you may want to consider learning the stock market.

You can of course read information given in books and even on the internet. There are several sources that are willing to educate you about the stock market. The first site listed below seems to be a good one.

An invaluable tool that I have found is a virtual trader. You can practice finding and getting into trades with an amount of imaginary cash that knows no bounds. I have also included two sites below that link you to the same virtual trader, both of them are the same as they are both powered by optionsXpress; however, the www.cboe.com only requires you to give an email address to set up a virtual account whereas the optionsxpress site requires you to set up an actual account though you don't have to fund it for up to a year (at least that is what happened when I signed up some time ago). I believe that both sites have a live chat component that can answer various questions about you what has happened to your virtual account, transaction assistance, and many other things.

Technically speaking, I haven't answered your question about investing small amounts in the stock market. You mentioned $20 which is a small amount indeed as opening and closing commissions from most reputable online brokers may for the most part wiped out your $20. However, don't be dismayed as there are stocks that are called 'penny stocks' which sell for less than $1 a share. In fact, you may remember Lehman Bros. whose stock was selling at over $150 a share a year or more ago. They went bankrupt because the U.S. Government wasn't sure about all this bail out stuff at the time and they are still around and trying to get their feet back under them. Their shares are selling for around $.032 a share. That's a hundred shares for about $3, or 500 shares for around $15. I've also included a site reference below for OTC stocks (penny stocks), which by the way, has links to zecco trading who advertises $0 stock trades ( I can't vouch for them).

You can do it as you apparently have the will and you feel in your bones that the market has hit bottom. I still recommend that you use virtual trader to practice and get some experience under your belt.

One last thing, you may be interested in a free stock charting program offered by market brower. I have been very pleased with their charts and though I have access to more expensive and costly charts I still use them for quick references. The link is also listed below.

Good luck and happy investing.

Yes you can. There is one mutual fund with a symbol of NBMOX. You can make as little as a 1 cent deposit each time. I invest with E*Trade. They have a service fee of $15 a quarter I think. That is waived if you do one trade per quarter. So you could buy $20 of NBMOX each quarter and not pay any service fees. E*Trade rates MBMOX as an all star mutual fund. NBMOX has no sales charge or any loads. It will take out a certain percentage each year of what you have in the mutual fund. You will still make money in today's market. Once stocks return to last year's levels, it might be a good idea to seach for some good bonds. You can do one buy order a quarter with a bond and still waive the quarterly service fee with E*Trade.

this will be helpful to you.

http://ebooksite.blogspot.com

well, are you aware of how crappy the stock market is now?
don't even waste your money.

Look into DRIPS (Dividend Reinvestment Plans).... I'm sure you'll find one that fits your needs & doesn't charge a commission to be involved.

Keep your $20 for emergencies.

Most Internet Brokerages have a $500 minimum to open a Cash account. It's $2000 minimum for a Margin account.

Yes, of course you could loose it all on a bad investment. With risk there is reward and visa versa.

Just the transaction fee is $10 for buying and $10 selling. even if made 100% you still won't make money cause you have to pay fee's then tax..$20 isn't enough for stocks.

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