Is $1000 a good starting amount?

I'm willing to risk that amount starting out but is that enough for most stock? The price is in between 80 and 90.
Additional Details
I'm new, so is $1000 a good starting amount if the price in 60 to 70?

Any amount is a good starting amount. Everyone has to start somewhere. I started with much less. But back then much less was worth much more.

For you the first few years will be a learning experience. You may have beginners luck but then again you may not. Slow and steady will be your best bet but most beginning investors/speculators do not understand that.

One of your responder's mentioned mutual funds. Those are slow and steady. Not too sexy but often the very best bet for beginning investors. Looking back, I wish I had put my first $1000 into a mutual fund instead of where I did. If I had I might be a multi millionare today.

Sure. Just be sure to sign up for an account will a brokerage firn with low fees. You should be able to find one that will only charge you $20 or less for buying your 11 or 12 shares.

You might even find one that will give you a free trade to start you out. Check out TDAmeritrade. They always have low rates and are usually pretty highly rated.

Ask about share builder programs too. They allow you to deposit a fixed amount every month, say $25, and they'll purchase shares at a low commision charge, possibly none. They buy fractional shares for you, like one quarter of share.

Good Investing!

you can start investing with as little as $50.

You should not invest in individual stocks without a lot of expertise and a lot of money you can afford to lose.

Find an investment company that will set you up with a no-load mutual fund. Set up a regular scheduled monthly investment.

$100 a month starting when you are 18 could hit $300,000 to $1.5 million by retirement age.

Any amount you can afford is good. The big thing is dont put all your money in stocks. Too volitile. You should do a good ammount in mutual funds which are a mix of different stocks and bonds among other things. It is putting your faith in someone that hopefully knows more about the stuff than the average guy.

Here's a checklist for anyone looking to "start" out in the stock market. Remember those that fail to plan are planning to fail.

1. Determine what you want to accomplish and set realistic goals and timelines. Do you want to invest or trade stocks? Investing is usually buying and holding a stock 1yr or longer and trading is buying and holding a stock less than 1yr. This also determines if you will pay short-term or long-term capital gains taxes (if you're profitable)

Other things to consider before you begin:
- Understand the higher the priced the stock the less volatile it is and the smaller the % gain you can expect in the short term.
- Penny stocks ($5 or less) can be as cheap as .0001 per share. So $100 can buy 1 million shares of a .0001 (triple zero one) stock. The lower the price the higher the risk!!!

2. Paper trade until you consistently achieve your goals for 3 - 6 months before jumping in with real money. (seems boring but if done correctly is what separates the men from the boys)

3. Realize if you have $1000 in a $10 or a $60 stock and each stock moves up $1, what's your return on investment (ROI) for each stock?
- $11 / $10 = 10% gain * $1000 = $1,100 or
- $61 / $60 = 1.67% gain * $1000 = $1,001 (before fees)

This is largely why many people who want to trade higher priced stocks trade stock options; you get more for your money. OR you could trade lower priced stocks. Remember the lower the price the higher risk and reward ratio.

3. Open an account with a broker if you don't already have one. THIS will be what usually determines if $1000 is a good starting point or not. Many brokers require $2000 or more dollars to open an account. Scottrade has a $500 opening balance, however they aren't as good as they JD Power awards suggest if you're an active trader/investor, imho.

So as you can see by this answer, your simple question wasn't really that simple. Many of our listeners have come to appreciate the knowledge we offer. This is by no means the only things you have to consider, this is truly the tip of the iceberg! Serious money waits for serious people. The stock market is a vehicle that transfers wealth from the inpatient and undisciplined to those who are patient and discipline and students of the market.

Check us out every Sun - Thur night 8pm - 11pm for our live commercial-free stock talk show. All levels of investors and traders are welcome to be part of the show.

because you're new, i suggest u invest in mutual funds first.
ull be better of studying the market first before u dive straight into it.

Honestly....
Visit swisscash,net
I am an investor with them and have a US$50K portfolio there. I'm getting paid every month on time as promised and guaranteed. The average returns are 20% per MONTH!
You can recover your initial investment amount within 8 months and then it's profits on the run from there.
Read the details...it's easy to understand.
It's not an MLM...nothing to 'market'. You can just be an investor and reap ur returns which are guaranteed as stipulated.
You can visit my financial site provided by them at www.swisscash.net/sgamk1632202
I am in touch with some senior consultants of Swisscash and I must say, they are serious dynamic professionals and I'm confident they will be profitable for at least the next few years.
If you are willing to loose the $1K as u have mentioned... try this one and I'm sure u'll thank me for this. I started with US$1K initially and then when my confidence grew, I beefed up to $50K.
Best regards... Kaz

with that kind of money starting to invest n stocks isn't a good ideal your best bet is to start your own business summer is coming and if u act now you'll be n a good place to start a lot of business

Try prosper.com instead of the market. Your money will be a little less liquid but the returns are better.

Enter Your Message or Comment

User Name:
User Email:
Post a comment:

Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.974
Copyright (c) 2011 Financial Crisis Monday, May 28, 2012 - Terms of use - Privacy Policy