Your Questions About Investing For Beginners

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Joseph asks…

Stock Investing for beginners?

I am 29 years old and wanting to get into the stock market. I have started contributing to RSP’s since I was 21 and currently have roughly $80K in my RSP portfolio. Therefore, when I start looking to invest in stocks, I am willing to take on some high risk, and my goal for this, for the time being, is not for retirement – that’s what my RSP’s are for. However, I’m looking to only start with an investment of $2000, low I know, but I want to first start of with a small amount to learn the stock market and how to invest. Can someone help me understand what type of stocks I should be looking to invest in? I’m not sure if I should try to find stocks with growth potential, mix up my portfolio to keep it balanced, invest in bigger companies that pay dividends and have sustainable growth, etc.

Ideally, I would like to have a 15% ROI – 20% ROI, which I feel is not very high for someone willing to take on some risk. I’ve read some articles online on guides to investing for beginners, but I want to know more about what attributes of companies I should be looking at when choosing a company to purchase stock in.
Thanks for all the responses!! It looks like I have more reading to do before I actually start investing. I do not see myself spending hours per day researching and trading, but it if I start to like doing it then maybe I will spend more time. For now, I want to spend a couple of hours per week at most.

financi4 answers:

When you start, keep it simple.

You keep it simple and effective when you:
1) Invest in index funds (like the SPY for the S&P 500)
2) Buy the funds when the long-term trend in the market starts to go up and sell when the long-term trend in the market starts to go down.

Once you get comfortable with putting your real money to work in this way, you could start thinking of doing something else.

If you have sufficient time available and the skills and passion to analyze the financial data of individual companies, you could start allocating a part of your investments to individual stocks. But do your own analysis and do not follow the penny stock picks of someone else. And always keep an eye on the long-term market trend. Because when the overall market is going down like in 2008 or 2001-2003, most stocks go down, even those of the great companies.

Note that I do not bother with trying to pick individual stocks since I am happy with the returns I can get with the combination of Trend Investing and Index Funds.

James asks…

investing for beginners?

im 15 years old, i want to invest in EA for when battlefield 3 comes out.Honestly im using my own money, so the most im willing to invest is 100$ worth of stocks lol.My dad says if i predict the stocks correctly , he will invest a little more for me.Any tips?

financi4 answers:

The problem is that Battlefield 3 was announced a long time ago, so its release is already built into EA’s price. Think of it as if a bunch of investors are predicting how much $ EA will make off of Battlefield 3. If you think it will be a huge hit and will beat investors’ expectations, then you should buy it. If you think Battlefield 3 will make less than everyone predicts, don’t buy it. Personally, I think the price is probably too high because COD is also coming out and will eat into the Battlefield profits… But it’s really anyone’s guess.

In the future, the best way to make $ off of video game companies is to buy the stock before the game is announced. If you think a company is really innovative and will continue to create great games and increase earnings, then buy it.

John asks…

Coin Collecting/Investing for Beginners?

Can someone give a Beginner Coin Collector/Inverter some tips? such as what to watch for, what to stay away from, where to look, ect ect ect.

financi4 answers:

Well let me tell you its really easy to find places that sells coins in your local area, look at the phone book is one of them but i only thought of this after i found a place that sells coins. What i did was typed in some coin key words into google maps and saw a few places pop up then i paid them a visit. The one at my city has about everything from tokens to coins, and they even sell silver investments. They also have buckets of world coins that goes for cheep usually 25 cent a piece at least that’s how much they cost here and most coins stores will have this as i hear a lot of people saying there local coin store have a world coin bucket to select from. Investor coins are great, but i must tell you these coins are usually not for regular coin collectors who just want them for the looks, but to protect your wealth and savings. Such investor coins are the Canadian silver maple leaf coin, and in some cases, depending on the date it was issued it can be a collectible as well. The 1997 was one of the lowest mintage of maples there was with only around 100,000 made. There is another one the dutch liberation tulip privy silver maple this cost around 130.00 but usually these kinda silver coins and investor coins you can find at currency exchange offices. The one here has the silver maples and also the gold maples. Right now i am currently collecting nickel bullion coins and they are in the 1955 to 1981 canadian nickels, they can also be used as investments but also collection such as the 1964 canadian nickel. In that year look for the extra water line. If found in really good condition its worth something and its a good find. I hope you find this information useful

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