Your Questions About Investing Money

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Daniel asks…

I am a college student and im interested in investing money in stocks. What should i do to start?

What should i do to start investing money in stocks?

financi4 answers:

First of all, before starting to invest, you should have about $5000 of cash on hand. This will ensure that you have enough money on hand in case your investments do not perform well.

After that, you should read a few books on investing in stocks. A book by Burton Malkiel, called “A Random Walk Down Wall Street” is a highly recommended book for individual investors starting out in the stock market. The book will explain some useful concepts in investing. Also, if possible, you should read another book called “Security Analysis,” by Benjamin Graham. These books will provide some helpful tips. I have not read “Stock Investing for Dummies” or books of that kind but I am sure they will have useful information. However, the two books I have recommended are written by academics who have spent their lives conducting research into the stock market. Before selecting a company’s stock, you should throughly research the company beforehand. You should apply the concepts explained in the two books I have recommended.

After that, you should select a broker. Since you are a college student, I would recommend Scottrade. They require a $500 minimum as the INITIAL investment to create the account. Once the account is created, you can have any amount of cash in the account. They charge $7 per trade, which is the lowest of any broker for their requirements. While other brokers may have lower fees, they have high minimum balance requirements.

Finally, I would like to warn you that you may see times where your investment is losing money. I know from personal experience. I started investing in stocks in February 2009 and I got hammered in March 2009 before stabilizing. I strongly advise against selling on impulse. Think very carefully before buying or selling. Also, as you will learn if you read the books I have recommended, the stock market is best used as a vehicle for long-term investments. Best of luck!

Joseph asks…

When is the right time to start investing money?

I’m not talking about markets, I mean how can I tell when my personal finances will allow me to start investing? I want my money to work for me, but I’m still trying to pay the mortgage and put food on the table.

financi4 answers:

Of course you do have to pay the mortgage. But there are other expenses that are, shall we say, descrecitionary. And food is one of them. Eating out is something that can be avoided allowing you to use that money to invest.

Quite frankly the sooner you start investing the better off you will be.

Here is the low down.

Assuming you can earn 8% annually, not an impossibilty.

$1.00 invested

after 40 years becomes $21.724

after only 30 years becomes only $10.06

after only 20 years becomes only $4.66

So you see the longer you put off investing the more money you loose.

Michael asks…

Id like to start investing money over the summer?

and im extremely clueless.

I am 13 years old,and my father will be the one setting up the account and investing,but I get the money

So what are the basics? tips?

please dont criticize me because Im so young.

financi4 answers:

If you are asking for advices to trade, buy low and sell high. Always try to buy when there is a bear rally or a down day. And not really on an up day unless the point you buy is still at its low.

Also, even if you see that the stock might be going up and you think you might be missing the opportunity…don’t worry…chances are…stocks go up and down…so you might be able to buy it at the price you want. Don’t try to chase after the stock.

For short term, when you see a decent profit, take the profit and get back in once the price of the stock drops.

You should start reading financial news, be aware when the economic data are coming out and how those data can affect the market, the earnings announcement from the companies.

Also, there are blogs available such as…so you can get someone’s point of view about the stock market.

Personally for me, when I opened my Scottrade account a few months ago, I just looked at the historical price trends graph of the stocks from google finance and keep myself updated with the news.

If you still need to open a brokerage account, consider Scottrade.

NO account maintenance, service, or inactivity fees.
$7.00 online trading commission for stock over $1.00 a share.
Tutorial and webcast available to customers.
Excellent trading platforms (very user friendly).
Excellent customer service (398 Branch offices nationwide).
$500.00 minimum to open an account.

If you do end up opening it with Scottrade, use this referral code: EJVR8926
You and I can get 3 FREE trades.

So far, I have been buying financial stocks…so out of them BAC, WFC, JPM, DB…overall right now JPM, WFC, and DB are kinda high…so you should wait til the earnings’ period is done and reevaluate the market condition…so you can buy them at lower prices and keep them for short or long term…

For apparel companies…I think GES and RL are good…but once again…have gone up way too much…

Charles asks…

How to earn money without investing money in advance online?

i wanna earn some money for free without investing money in advance which is normally to be paid by PayPal.i don wanna pay.It is okay if i get even a dollar a day

can anyone help?

Plz help me ASAP

financi4 answers:

I make some extra money taking surveys.
I found a site that doesn’t try to charge you anything
or ask for a credit card. I have posted pictures of the payments I received, as proof.


Richard asks…

I want to get investing money on the stock market but need more info?

Recently I thought about starting to invest in the stock market but before I could do it I’d definitely need to become more informed and educate myself about investing wisely. Do you know of any good resources I could look into? As well what is the minimum amount of money I need to be willing to invest?

financi4 answers:

A good way for beginners to start off is through practice trading in a virtual StockMarket game as it is a great way to familiarize yourself with all aspects of trading. It is a fun and easy way to start learning how to trade.

Online stock trading games add the bit of excitement into pratice trading that a standard paper trading account lacks and is completely risk free so it is a great way to start learning how it all works to gain the knowledge required to start out – before risking any cash.

Thomas asks…

Does anyone know any tips or advice about investing money into stocks or bonds?

I’m a college student and I am thinking about investing some of my money. I know nothing about this process however and I am curious to see if anyone on here knows a thing or two about it. I am willing to invest in the long term as well as the short term. I just need advice on how not to lose my money.

financi4 answers:

_Stock Markets for Dummies_ is a great place to start.

Investors Business Daily (IBD) is a solid daily resource (and its complement, ). It’s a better newspaper than the Wall Street Journal and it is built around a particular approach to trading. You could read _How to Make Money in Stocks_ by William O’Neil too–he’s the founder of IBD.

Search your local library for other books on stock investing. Try to absorb as much knowledge and understanding as you can. Eventually, you should open a brokerage account and paper trade for a while–this is practice (not real money).

George asks…

what do you think about investing money into the stock market?

i have some money saved up and i want to gain more than the one percent interest what do you think about investing it in an Ira or CD’s? Any suggestions?

financi4 answers:

You should have financial advisor’s available to you in Iraq within the personnel system. I know that to make money in the stock market as an individual, you have to be oline every single day and well versed in what you are doing. CD’s pay only about 3 percent on average which is just a bother and an IRA is always a good bet, but when you come home you may want a house and then the penatlies hit as you need the money. Thank you for being in Iraq for us. We all do appreciate you and all the other service members there; either military or civilian.

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