Your Questions About Investing In Stocks

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Joseph asks…

What do you think about investing in stocks as a beginner?

I think the stock market can be a smart thing to experiment in even without much experience, in contrast to most advice given. My reasoning is that you can “practice” picking stocks for a very small amount of money- even under $100. You can buy just 1 stock option and though you won’t make much, you won’t lose much either and you’ll have experience of watching the market. Sure you can argue that you can study the market without putting your money into it, but I think having something on the line- even if it is only a $20 stock option- keeps your attention and diligence. I am inexperienced with stock trading- it’s been years since I’ve owned stock- but I’m smart, I have a financial mind, and I am a quick study. I think I want to take a few hundred dollars and spread it over a handful of well-picked stocks and watch it for a few months to see what happens. Maybe I’ll make a profit, maybe I won’t. But I’m not risking much. If you disagree, please explain your logic. Thank you!
what do you think about zecco.com?

financi4 answers:

Oh! I agree… I found that it is an excellent, even fantastic< way to profitably spend your time. As you say, if you get in just a little…it's great experience ( and always something to " click over to" on the computer.
If you're into the " practice" part of it , a guy ( who occasionally answers here) has a nice site at:
http://www.top10traders.com/
Great place to see " how you can do" and look at the way about 1200 other traders play the game!
Good luck.
P.S. Correction: up to 1300 traders, now.

Paul asks…

How can I get started investing in stocks?

I would like to invest in stocks or mutual funds, but I really don’t know where to start. What is a good broker to use? I would like to do it online, and I want minimal fees.

I am looking to invest about $5-8K.

Thanks.

financi4 answers:

Try educating yourself first. Read “Investing for Dummies” available from your public library.

James asks…

I am 18 and want to start investing in stocks?

I obviously don’t have that much money, but I would like to invest at least some in some stocks. Could anyone recommend any websites that would allow me to do this with a minimum amount of money?

financi4 answers:

Go for low risk, low yield stocks first since you are new at this. Read as much as you can and watch youtube videos and documentaries. If you find the topic interesting then open a brokerage account somewhere and start buying stocks. Don’t open a forex account, I know lots of ads are out there promoting forex but trust me stocks are much better and safer to start out with.

I recommend a low fee brokerage like sogo who charge $3 a trade and also give you 100 free trades to start so make your first few trades really small ones.

Https://www.sogotrade.com/Setup/Default.aspx?rf=392837

And if you like to read then hit amazon and look for 5 star reviews on books. And get this book on options:

Option Volatility & Pricing: Advanced Trading Strategies and Techniques by Sheldon Natenberg.

Donald asks…

How do you profit from investing into stocks?

I’m looking into investing in the stock market, because its something ive always wanted to do. But i would like to know how and when do you start seeing profits from investing, and when you do see the profits are you liable to touch that money at the moment or are you supposed to let sit there for awhile. I know this might sound funny but i’m a real real beginner. I just dont want to do anything that I’m going to regret.

financi4 answers:

Stay away from TD Ameritrade and Scottrade.

They are for the “more experienced” investor. Both are very good….. But not right now.

Start with Charles Schwab or Fidelity Brokerage.

Read as much as you can. Never invest in anything you don’t understand. Never invest in “tips” (from people you know or talking heads in any media).

Start with Mutual Funds or basic ETF’s. Don’t invest a penny until you have an “Asset Allocation”. Don’t deviate from your asset allocation model.

Be aware the biggest threats to profitability are;
Indecision
Fear
Greed

You can do this. Just take your time learning!

John asks…

What is the minimum amout you have to have in order to start investing in stocks?

I talked to a Merril Lynch representative and he told me that you have to have $2,000 up front before they would even considering taking the time to let you pick some stocks. Is this the case for all stock companies? If so, can I just go online straight to some of these Blue Chip companies and invest online with them without even having to go through these brokers to invest in stock? For example, could I go online at Walmart or Pepsi or Mc Donald’s and invest through them online?

financi4 answers:

Merril doesn’t want your measily $2k. This is not a dis on you, just a statement of the “status” of brokerage houses. These places suck for the investor starting out. Go online and buy what you can afford with a discount brokerage. You can also buy shares from certain companies directly. Contact investor relations departments for the companies you would like to buy from. The guy above me mentioned sharebuilder.com check it out.

Chris asks…

How can i start investing in stocks?

How can i invest in stocks, either through someone, or by myself? where can i go, what do i do, and how much money should i have? Is there a website that i can go to? How long shuld i leave my money in there, years, months? the list of questions goes on!

financi4 answers:

This is a question which is complicated to answer…:-)

The first thing you need to do is open an account where you can buy stocks. You can go thru a site like ameritrade.com, or etrade.com, or schwab.com, they are all great, big names and will handle clients from everywhere (don’t know where you are based). You can also check with your local bank if they will “attach” a stock buying account to your checking or savings account, they are called brokerage accounts-this might help to.

Watch out for commissions in buying and selling stocks. That’s why internet brokers like ameritrade.com are great, they are cheap to trade.

Then comes to hard and fun part. How to make money.

The bad news-statistics are against you. Most people lose money in the stock market.

The good news-the ones who do make money-get to keep it all.

There’s lots of investing strategies, etc. One really good “stock” is the symbol SPY-in one shot you buy 500 big companies listed on the New YorK Stock Exchange.

Go to sites like nyse.com, nasdaq.com, they have lots of information on trading stocks.

You can also take some classes for trading stocks.

A good overall site is http://www.tradingresources.org . Lists some must visit sites for a trader.

You should probably have a minimum of $2000 (US) to make it worthwhile to play the market. Otherwise, commission costs will be too big a percentage and you will lose all to your broker (normal commissions are $10-$20 for a buy or sell order).

You can leave your money for seconds, minutes, days, years…..This is what trading is.

Good luck,
Monica

George asks…

How does a novice start investing in stocks?

Is there a minimum amount of money you should start with? Is it better to research everything yourself and trade online or talk to an investment firm and buy stocks that way? Just looking for tips on how to break into buying and selling stocks.

financi4 answers:

Be careful with stocks you can get hurt. Join a stock trading club in your area. Or you can get books on trading stocks and learn that way.

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