I need some investment advise please? |
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Bunty | How to enter into stock market for a fresher? |
i am new to stock market, but want to make some money in stocks, what do you think, from where i should start my research, and what exactly i have to do for this. |
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raymanrevo
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My advice would be to first read up before you trade. The less you know, the more risk you are taking. There are lots of good books out there. Remember that trading stocks is NOT the same as:
- options trading
- FOREX (currency trading)
- futures (commodities i.e. cocoa beans, oil)
If you're looking to trade stocks, you also should define your goals. Do you want to be:
- an investor (hold stocks for a long period of time)
- a swinger trader (hold stocks for weeks to months)
- a day trader (Don't even consider this until you've been active in the market for at least a couple of years. Seriously.)
There are books that focus on each kind of trading.
The next thing you will need is an account. My personal suggestion would be to open a Roth IRA account. This is because you don't have to worry about any taxes whatsoever and you aren't allowed to short stocks, buy on margin etc. (basically you can't do the really risky stuff). You are allowed to contribute up to $4,000.00 a year to a Roth IRA and any money you make in the account you will never have to pay taxes on EVER (pretty much the coolest thing in the world).
You have to open an account with a broker. Brokers basically execute your trades for you. I recommend using Scottrade as your broker (especially if you have a location near you). Trades are only $7 and they are easy to use. Opening a Roth IRA account is free and you only need to deposit $500.00 initially. Sharebuilder is also a good broker if you're looking for more passive trading and you're looking to hold stocks a long time without selling them. You can open a free basic account with Sharebuilder with no initial deposit.
As far as websites go, read the tutorials and articles on Yahoo Finance (http://finance.yahoo.com) (it outdoes Google, which is still in Beta) and http://www.investopedia.com also has nice tutorials and will be able to define words that you may not understand. |
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CHARLES S
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go to computershare.com you can buy as little as one share invest ant time with little to no fees better then a broker |
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tuffluck44
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First things first. If you want to invest in stocks, it is a pretty time consuming event, so if you don't want to put in the effort, you would be better off purchasing a mutual fund or index fund. Also, stocks are risky, unless you are willing to keep that money invested for a few years, don't put that money in stocks, put it in a money market or a CD instead.
Secondly, you will need some cash. You need to diversify your holdings to at least 8 different companies. Commissions are a big deal, so if you only have $10,000 to invest, that means that if you spread that among 10 different companies, commissions costs (usually around $10 per trade) will be around $100, essentially starting your position !% down. The more you trade your stocks, the more fees you pay. Don't do it often. [There are tax reasons as well, which you will read about if you get into investing]
If you are like me and like to start with the basics, then read these two books:
Intelligent Investor, by Benjamin Graham
The Little Book that Beats the Market, by Joel Greenblatt
These two books will give you the foundation upon which you can learn to value a business.
Take some time to learn, stocks have done well in the recent few years (since the 2002 recession), but skeptics believe that soon we will reach an inflection in the market. Also, remember, it takes some work to put your money to work for you. If you spent all year earning it, you should at least take more than a few minutes putting in stocks. Even though the broader market tends to go up over long periods of time, in the interim it can go down as well. Furthermore, individual companies are not guaranteed to track the market. Just as they can outperform, so too can they underperform.
Hope that helps a little bit. |
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Frank Castle
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Open a brokerage account at Zecco. |
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Space Coast Virtual Services
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i like sharebuilder.com |
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wizardl74
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I think raymanrevo offered a very thorough and insightful answer. Your choice of personal objectives will open you to the methods available for you to meet your objectives. Never invest blindly or you will be "blinded" (hurt) by your investments.
Good luck. |
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Sigi H
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Good luck in gambling! Do you have any idea what is coming?
You cannot afford bluechip stocks like MS or IBM etc which are more stable BUT are also subject to ups and downs like all the other. So you have to gamble with low end stuff. I wish you luck!
Some are under the mistaken illusion that there is only one way - and that is UP UP and UP. What is artificially going or pumped up will eventually come crashing down to the bottom. |
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