Lux Investing
What are the best stocks for beginner investors to invest in?
And how would they go about learning how to do so? Thanks
Public Comments
- There is no correct answer to this questi$1on, I think. Obviously, the best stocks are the ones that are going to go up in price; but that is trite. Start by purchasing "Investing for Dummies" about $13.00 or so. It will give you a good bunch of information on investing in general and be a basis for further learning. I think that many might suggest that beginners begin by buying several mutual funds or index funds. And if history continues the trend of the past 70 years, that would be an excellent approach. Instant diversity which is important. Unfortunately, about 70% of mutual funds underperform the market averages so index funds have a good bit of appeal on that count and they have very low expense ratios also compared to managed mutual funds. If you wish to invest in stocks of individual companies, you will just have to do your own research. An approach that has a lot of merit is to invest in companies whose products your are familiar with and like. That is a darn good recommendation for the stock.
- I agree with MuncieBird. Buy mutual/index funds!
- if you're a beginner don't mess with penny stocks.
- Start with GE, YHOO, MSFT, or XOM. Figure out what company's products you really like, and then invest a small amount of money. A good place to start learning about the stock market is http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can read posts on investing from the best traders, as well as share your own investing ideas. There is a charting feature, so you can see how your portfolio performs compared to the S&P 500. Also, you can create your own "group" so that you can see how you are doing compared to your friends. Here are this month's best traders: http://www.top10traders.com/Top10Standings.aspx Good luck.
