Lux Investing

how to start investing in stock? what are the basics?

Public Comments

1. Money you can afford to loose :-) To be serious - start by putting any spare cash into your Pension (eg as AVC's) - I suggest at least 10% of gross salary - if you pay any tax at 40%, I suggest you put in all money subject to 40% tax (this willl eliminate any 40% liability and means that every £10,000 you put into your Pension wil have cost you only £6,000) Learn about investing. Put some cash (£7,000 per year) into an ISA and start trading. Once you start doing reasonably well you can think about moving your AVC Pension (not the Final Salary part) into a SIPP. Depending on your age (and Salary) you might want to move the ISA into the SIPP (you can get immediate Tax credit of 20% when you move the funds - so £7,000 in the ISA becomes £8,974 in the SIPP).
2. But stock that you think is undervalued. Sell it when you think it is overvalued.
3. Go to motleyfool.com and Tradeking .com, they are both very informative and you will get a good understanding before you invest.
4. Just starting IS the basic. Schwab.com to open acct then fund it. Don't trade - invest. ADX PEO EWA PGJ - closed ends + etfs. %s are the key. Same if you have $1000 or $100,000 25% Big cap 20% International. etc.
5. An exchange-traded fund (ETF) is a basket of securities designed to replicate the performance of a stock or bond index (e.g., S&P 500, Dow Jones Industrial Average). ETFs are listed on an exchange and can be traded intra-day at a price set by the market. ETFs add the flexibility, ease, and liquidity of stock trading to the benefits of traditional index fund investing. To better understand ETFs, it may be helpful to understand index funds, which share some similarities. Both ETFs and Index Funds: Allow you to buy an interest in an entire portfolio of securities by purchasing a single security Are passively managed and have limited expenses Are designed to track the performance of an unmanaged index Track a broad market index or target a specific sector or segment of the market Track markets in various regions or countries
6. What amount do you want to start with? 1. Choose an online brokerage (eg inexpensive: sharebuilder, zecco, tradeking, scottrade, others: fedelity, td ameritrade, etrade) 2. Choose and buy stocks or funds, etc 3. Watch and trade You also can invest directly from the websites of companies you like. Good Luck!
7. like anything else, do your research first. may i suggest you read motleyfool.com, get some of jim cramers books, and watch mad money, on the money, and fast money (all on cnbc from 6-9pm est) to get warmed up with the basics.
8. Stock should be the last thing you invest in. Your first investment steps should be as follows: make sure you have a security fund of cash in a high interest, tax-free savings account that will cover your living expenses for one year minimum. Then make sure you have put aside some money to be able to buy an apartment or house. Once you have these things covered, then spread your porfolio over government bonds, gold/silver. Only then think about stocks. But do not get the balance wrong: most of your investments etc. should be in solid safe stuff.
9. The basic, first thing you need to know is why do you want to invest in stocks. Are you in for the long haul, or do you want to make a quick buck. Do you want capital gains, or do you want dividends. Or a combination of both. Once you know that, you will know what kind of books to read to educate yourself. As you can see, we cannot answer your first question, without knowing in which direction you want to go - searching for high dividend, long term stable stocks is very different from looking for day-trade stocks. But keep looking, just remember, the reason not everybody is making huge money consistently in the stock market, (or in anything else), is because it is hard work.
10. 1) Find a stock broker and register with him. 2) Send him some money, ready for your first purchase. 3) Telephone him and tell him what to buy. 4) Wait for the paper work he will send you. 5) Keep a note for the tax you will be paying at the end of the tax year.