Your Questions About Investing For Dummies

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Thomas asks…

Can someone explain in “english” how to invest?

I would like to know how the whole investing in stocks thing works. Its something I would like to look into, but I don’t want to be bogged down with a whole bunch of banking jargon and mumbo jumbo. When you answer this question, think “Investing for dummies“.

financi4 answers:

Borrow the book “Investing for Dummies” from your local library. It will help you far more than any answers you can get from here.

Chris asks…

whta’s a good stock simulation game where i can play and learn for free?

i also would like a good book to read that is easy to understand. i have investing for dummies, but would like to get a good understanding of the ins and outs

financi4 answers:

You can go to top10traders were you can buy stocks they give 100,000 dollars to start with its great i have 1 the best acounts

James asks…

hey, i would like to know what’s the official website for investing money into federal bonds?

basically i’d like to view a website explaining the basics of federal bond investments… something like ‘investing in federal bonds for dummies?’ lol

financi4 answers:

Http://www.treasurydirect.gov/

http://www.treasurydirect.gov/indiv/products/products.htm

https://www.treasurydirect.gov/govt/resources/faq/faq_fedinvest.htm

http://www.investopedia.com/terms/t/treasurynote.asp

Michael asks…

21 yr. old, where can I find good info for learning about investing money?

I’m just looking for a good website or book to educate myself on investing money, something simple like a dummies guide or a beginners book.

financi4 answers:

Congratulations on attempting to learn investing at such an early age.

Let me share with you a little rule that Albert Einstein once claimed was “the greatest mathmatical discovery of all time”. It is called the Rule of 72. It is pretty simple…

If you take an interest rate and divide it into 72 you get the number of years it will take your money to double.

For example, lets say you have $40K to invest if you were to get an interest rate of 12% your money would double every 6 years. So your 40K would turn into 80K in 6 years, 160K in 12 years……and $1,280,000 in 30 years.

Keep this rule in mind as you make your investment decisions and you will do quite well.

As to what areas to invest in. The stock market has done quite well for the past couple of years and mutual funds allow you to diversify your portfolio. Personally, I have been having the greatest amount of fun and success in the foreign currency market…..Forex.

What is really nice about Forex is that you can open a practice account while you are learning and not risk any of your money.

In fact I am assembling another Trading Team to evaluate some Forex trading strategies. You would be most welcome to join the team and learn along with us. Just drop me a line if interested.

Best wishes for a prosperous 2007!

Paul

http://www.teampip.com

Robert asks…

Stock Market Investing for a Dummy?

roughly,how much money do I have to pay a stock broker?and also is it possible to lose 100% or more of the money I invest?

financi4 answers:

A full cost stock broker can charge up to 40% commission on a trade, so avoid them. I would go with an on-line brokerage where the commission costs per trade are much lower. Scottrade on charges $7.00.

Yes, it is entirely possible to lose all your money. So, know what you are doing before you start investing in individual stocks.

Paul asks…

How can I learn about Stocks? I don’t know a thing. Beginner…?

I don’t know even the basics like what a share is or trading is. Where can I learn? Is there a website? I just bought Stock Investing for Dummies but I need to know the basics first.

financi4 answers:

Congratulations on getting started. It’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 are!

A good primer is How to Make Money in Stocks by William O’Neil. You can get it cheap just about anywhere. It’s widely available new or used. You can read that after the Investing for dummies, but I wouldn’t necessarily follow any strategies in the I4D book. I’d use the I4D book more for terms and to better understand how the markets work.

Another good one is one of Jim Cramer’s books like Real Money (he’s got a few).

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.

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. He’s great at breaking things down.

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 that’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). And yes, you can definitely deal easily online.

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!

Mark asks…

How to buy stocks for dummies etc? What is the least amount of money that you can invest in?

I would like to learn the basics of buying stocks or learning how to buy stocks that would give me a good return on my investment. The issue is I would like to know if there is any solid advice one should know before investing in as well.

More or less I would like to know how you can buy stocks online as well. Do they charge a fee for one stock at a time to buy online or you can pay a monthly fee to trade stocks for a set price?

I would like to know the best way to seek out a stock broker to trade for you as well as a good guide?

financi4 answers:

Get help from a big broker, like E.F. Hutton or Fidelity Investments. They will hold your hand and help you set goals.

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