Your Questions About Investing

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Michael asks…

How do you go about investing in a stock?

I am in my early twenties and want to get started with investing. What are some resources that are available to learn about investing?

financi4 answers:

The best is to get started a soon a you can. The best way to get started is by hiring someone to do all the trading for you. Make sure that he has a team of professionals. Check what kind of rate of return they have being getting for the last 20+ years (you want returns of 10-12% per year).
In other words to get started investing on mutual funds. That meet the perfornace that I mentioned above. In a mutual fund you have a diversified portfolio that will keep you money in good investments. The mutual fund industry is highly regulated. The day you made all the research that you need and you feel comfortable managing your own portafolio just do it.
This is a good simulator for stock trading:

If you want to take it easy invest in mutual fund for the rest of your life and you’ll be just fine. I have umbelievable resources on ivesting in my blog.

Steven asks…

What is the best success you had in investing? What are you method to invest?

I am interested in finding out what types of investing people do and the greatest success they had over a period of time. I am not interested in someone trying to sell me a product. Also, I am interested in finding out any failure they may have had in investing.

financi4 answers:

I’ll tell you about some of my failures, you’ll certainly learn more from them!

When trying to pick the bottom of a stock that’s fallen a lot, don’t buy your whole position at once! I did that when I bought Kohl’s, KSS, at $60, and then it proceded to drop past $50. I eventually sold it around $49 I think, when in fact I should have been starting to buy some more around there. The point is you never know how low a stock price can go, so it’s best to not to put all your money in all at once, because your timing might be wrong.

Charles asks…

What does investing money in a company mean?

What is the benefit of investing money into a company? How does that benefit the company and us?
Thanks in advance.

financi4 answers:

It gives the company money to spend and gives you a return on your investment if they spend their money wisely.

Robert asks…

Is putting the work into investing in the stock market worth it?

Keep in mind I am 17 years old. I’ve heard plenty of stories of those who’ve made millions through the stock market, but I don’t want to invest every free hour I have in an attempt to make money, which may not even be that profitable. Do you think the hard work and time involved in investing into the stock market is worth it?

financi4 answers:

Yes, it’s worth it, especially now since prices are low due to the recession.

If you’re a rookie in investing or stocks, go to

Open up a portfolio without using real money. You can give yourself as much or as little money to try out the market. The stocks you want to focus on is consumer staples, consumer discretionary, and healthcare. These are DEFENSIVE stocks that will survive through good and bad times. Most of my positions are in these stocks. Some names include 3M, Procter & Gamble, Kimberly Clark, Exxon Mobil, Walmart, Costco. Everybody’s got to eat and wipe their butts regardless of the state of economy. Many of these companies survived through the Great Depression.

That’s the benefits. You can sleep at night knowing your money is doing well. There are NO guarantees that you won’t lose money. It’s just that these stocks are the best. They pay good dividends too.

Then once you’re comfortable and test the waters of the market, you can finally put some real money in. Go to They’re excellent for beginners.

If you’re new to stocks, DON’T DAY TRADE. You’ll a rookie in a world of professionals. I tried day-trading with Citigroup and AIG when they were a little bit over $1. I had some luck at first, making about $30 a day but I was way over my head. My luck didn’t last long and I had to rethink my strategy.

Day trading involves A LOT of commissions to the broker. With all the commissions deducted from each trade, you’ll be lucky if you only lose half your money.

I would just day trade using Yahoo! Finance. Open a stimulation account, give yourself $100 worth of fake money and play it in the stimulation format. You’ll see what I mean by losing money every easily.

Good luck.

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