Your Questions About Investing In Stocks

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Charles asks…

Do you have to be rich to invest in Stock market investment?

How does invest Stock work ? how much can are could i invest , and when is it a good time to invest and what should i invest in?

Justin answers:

1) No.
2) I suggest you to buy “Wall Street” on DVD.
3) Billions.
4) Now.
5) ETFs. (If you have less than $2,000.00 USD)

Joseph asks…

I’m 16 years old, and I would like to learn how to invest in stocks?

I have no prior knowledge whatsoever about investing, stocks, compound interest, etc. Can somebody give me an overview about all this? Is it even legal for me to invest on my own? How do I go about it, and how do I determine what to invest in?

Justin 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’re a newbie!

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.

Another good one is one of Jim Cramer’s books (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. or are both very good companies as is

For free, you can start by visiting and 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 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).

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!

Steven asks…

How can I invest in stock market?

I graduated high school last month. I want to invest in stock market. But, I have never invested in stock market. I want to invest stocks in online.
1) To invest, do I need to make a special account? Where can I make it? I have an account in UMB bank.
2) To trade stocks, which programs do I need?
3) Can you sugest any books for beginners?

Justin answers:

You need to open an account with stock exchange through your broker and deposit some initial amount.

To trade you need charting software’s / trading software/terminal and data feeds this all will be provided by your broker at some fees / may be free.

There are lot of books / strategies you can search the net.


David asks…

Can you invest stock in the New Jersey Nets?

Can you invest stock in individual NBA teams?

Justin answers:

Privately you could approach bruce ratner sure. Its not a public company though

Green bay packers are the only pure play publicly traded sports franchise.

Indirectly, the NY Rangers and Knicks (Cablevision), Seattle Mariners (Nintendo), and the Toronto Blue Jays (Rogers Communications).

Ken asks…

If a person residing in US invests in Indian stocks and get profit, what would be the income tax payable?

A person residing in US invests stocks in India. He has no other income except from stocks. If he is getting profit from short term(less than 365 days) gains, long term(more than 365 days) gains and dividends, does he need pay capital gains tax? If he does not need to pay does he need to file tax returns.

Justin answers:

The basic exemption limit of Rs. 1,60,000 is available to all Assessees, whether resident or non resident.

Therefore, if the short term profit on share trading is less than this amount, no Indian Income Tax needs to be paid and consequently no tax return also needs to be filed in India.

However, assuming that the Short Term Gains exceeds this basic limit, tax @ 15% with education cess of 0.45% is to be paid on the excess over 1,60,000.

Long term capital gains are tax free for both residents and non residents if the all sales have been effected through stock exchanges/brokers and securities transaction tax has been paid on all such deals.

If both long term and short term gains taken together exceed the basic limit, a tax return MUST BE filed even though no tax is payable.

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