When it comes to Investing, what is the smallest amount you can invest?

I am someone who knows absolutely nothing about investing and would like to know the very very basics, and would like to start out tiny if possible. Any tips?

Congratulations on getting started. Itâ€™ll help you more than you know!

Your first dollars should be spent on getting educated on investing. You don't have to train to trade them professionally, but we are talking about your future here. So the more you learn, the more it'll help you! So let's start there.

You ask a very broad question, so be prepared for a pretty long answer. Just take it in chunks!

How to invest depends on what you already know. We'll assume that you're beginning since you say you've got no clue!

A good primer is How to Make Money in Stocks by William O'Neil. You can get it cheap just about anywhere. Itâ€™s widely available new or used.

Another good one is one of Jim Cramer's books.

But books will only get you so far. At some point, you'll also want to get at least a little training. There are some great education companies if you want to make the investment. Investools.com or optionetics.com are both very good companies as is tmitchell.com

For free, you can start by visiting thestreet.com and investopedia.com. That'll get you a pretty good primer so at least you'll understand what the markets are and what a stock is, etc.

If you get a chance, watch Mad Money on CNBC. Don't trade any of his picks until you track many of them over time. Just use the show to get you to understand some basics and get a feel for the market itself.

Next, subscribe to something like investorsbusiness daily or something like that that can help you identify good stocks.

Once you understand stocks, go to 888options.com. It's a website that'll help you understand options (what they do, how they work, etc). You don't need to trade them, but the more you know, the more you'll see how options can really be the safest way to invest (once you're educated).

For discipline (which is crucial to successful trading), probably Trading in the Zone by Mark Douglas or Mastering the Trade by John Carter

I know thatâ€™s a LOT to absorb. Just take it one step at a time for now. Start with a book or two to give you an idea of where to begin. Take your time, and let it seep in.

As you get up to speed, you should papertrade to practice (highly recommended). This should help reduce your losses in the beginning as you get used to buying/selling.

You can practice for free on almost any reputable broker site (optionsxpress, scottrade, thinkorswim, etc).

Save up until you get a few hundred dollars (since you don't want commissions to eat up your investment. Start slow, then as you figure things out, you can buy more shares.

Congrats again on getting started. If you have any questions, please let me know.

Hope this helps!

There are sites like sharebuilder that let you start with almost nothing.
A great site to look at if you are new to investing is

http://www.top10traders.com

The site lists out which investors are doing the best and what stocks they have bought. Just click on the portfolio of the best investors and you can see the stocks they like.

This is a totally free site. You can create your own portfolio of stocks with $100,000 in 'play' money, and then watch how your stocks compare against other traders. It is a great way to learn about investing (and you don't have to risk losing any money).

well open a saving account in the bank and start saving some money .. when you have something like $10,000 or more start investing in properties .. buy small apartment with help from banks ,, and rent it out ,, you will make loads of money ,, good luck ... 13 years ago i started with Â£6000 in UK .. today i own 7 houses worth Â£1.8 million

The reason it doesn't pay to invest with small sums of money is you can't buy shares of companies without paying a commission to a broker. That cuts into your returns, (profits). As the other reader says, save up before you invest. Buying into Company shares or ETF's (Exchange Traded Funds) both cost per trade. To avoid this commission, save up until you can invest $500-$1000 by buying in a single transaction. Or put monthly deductions out of your paycheck into an IRA (Indivdual Retirement Account). Or buy shares in a mutual fund. OK now that the basics are laid out, what are you going to buy? You know it seems everyone has an idea about a great deal. But unless you own a working crystal ball it's best to get started with Indexed Mutual Funds such as the S&P 500 Index by Vanguard or T.Rowe Price in their Life Strategy Series. And what ever you do don't listen to Insurance salespeople. They'll have you in a Variable Annuity before you know what took your last dime.

On the other hand if you decide on real estate, do some comparison valuations, then make an offer. I like the dog in a good neighborhood. With a little or a lot of handiwork you can turn a run down home with character into a profit in 3-6 months.

Always take your time & decide with deliberance. Never fall in love with a Company or a home. Well a home is ok only if you are planning on living there for a long time. By the way when you sell that home, as long as you have lived in it as your primary residence for 2 years, you can sell it for a maximum of $250,000 & owe no capitol gains taxes, over & over again.

Good luck & I hope this helped.

Sharebuilder is for you. They will allow you to buy a single share of stock and if you get one that is paying dividends they will roll it over into more stock for you. The commission is dirt cheap till you get ready to sell. Then they stick you. The idea is that you will keep builing up and not be in a hurry to sell. It works well for the beginer. Also you may want to buy a book called investing without a broker. I forget the author. This book will help you buy stock directly from the company you wish to invest in. The commissions are dirt cheap and you get automatic roll over.

Not counting commissions, you can buy options for about 6 dollars and change but I don't recomend that. It is however a good example of how cheap you can get into the market. Good luck

Ok I came back for a quick edit. You can learn a lot as you go. You don't have to know a lot to get started. However as your money grows, your level of sophistication will need to grow. As your nest egg grows you desire to educate your self will also grow. After all it is your money. Get some books on investing, get some friends who invest, start an investment club or join one. There are lots of things you can do to grow your brain power. The more you grow your mind the more your cash will grow.

If you are thinking stocks and bonds, go to the Yahoo finance site. There is a complete reference section on all the basics plus all the brokerages advertise there. Contact them about the minimums to open an account.
good luck ( I like it better than property because no one calls me when the plumbing and heat give out !)

You can invest in various mutual funds for $50 a month. Companies like Janus and T. Rowe Price are good places to start. Their are many others.

I invested a little over 2k in this and totally LOVE IT! Never looked back. The income potential is limitless! GO TO shahansdestinations.com . GOOD LUCK IN THE JOURNEY!!!

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