Lux Investing
how to invest in stocks for a newbie?
I am intrested in investing in stocks but I am not so sure how it all goes? Say I want to buy a stock where do I look for the listing on what stocks are available or not? How do I know which company to invest my money in to see if it is going to be a good investment or bad investment for me. If i do invest in a certain stock or more then one stock how do I know if it went up or down for that stock that i purchased? If I want to sell or buy my stock how do I do that? Are there any good stock brokers out there or any one with alot of experience dealing with the stock market please help me out.
Public Comments
- You need to first get an acct (DEMAT acct) for stock trading. Here you can buy and sell your stocks. Also you can easily check the prevailing rates for the stocks online. Start with an investement of small amount...once u are confident, go ahead and make a fortune!!
- Most companies that you have heard of are available to buy on the stock market but you need a stock broker to do the transaction. You will have to pay a commission for buying and selling. The stock broker will have a web site where you can enter your orders to buy and or sell. You can also check stock quotes (price of stock at the moment) to see if the price has gone up or down. Go with one of the online discount brokers like Etrade or TD Ameritrade. Their commissions are very low and both have local offices where you can have your questions answered. How do you know which company to buy? That my friend is the million dollar question! If someone gives you an answer with a specific company be very wary! Also the best investment for you depends on a lot of things like your income, savings, debt, tax bracket and so on. So if a professional doesn't ask questions about these things do not take their advice. The best advice is from Peter Lynch - buy something you know. If you work in the software industry I'll bet you have a good idea of what software is on the rise and what is failing. Take a look at the companies you think will be successful.
- Here's a few tip on when to buy/sell: http://articles.moneycentral.msn.com/Investing/SimpleStrategies/10InvestingTipsToBalanceFearAndGreed.aspx I highly suggest looking on msn.com and kiplinger.com for articles on how to invest in stock and for specific companies. Another tip is diversify in your stocks. Owning only one or two company stocks can lead to a high increase, but also a swift decrease.
- Great question, I hope I can help! I have been in the US Equity markets for over 15 years, I have worked for brokerage houses and two different US stock exchanges including being a trader on the floor of an exchange. So first things first, its great that you want to “get in the game” I would encourage you to do so, but lets use some common sense… First, rule #1 only invest what you are willing to loose, don’t bet the farm, or even the rent money. The hard fact is stocks do go up, but they also go down. So only invest “disposable income” or what you are willing to loose. Second, if you’re new at this start by getting some good advice and I’m not talking about what your next door neighbor hears or what you hear in a chat room, go to a professional licensed broker, a company with a great reputation, get some experience before you set out on your own. Look, you can open a Scottrade or E*Trade or Ameritrade account for $500 and pay $5 per trade, but I would be afraid that you would blow a lot of money quickly, and be turned off from investing, I would not want to see that for anyone. In the beginning find a “full service broker” like Charles Schwab, Amerprise financial, or Edward Jones, or you may want to go visit your local banker, odds are they own or are affiliated with an investment bank. That is a sure bet if you bank with JP Morgan Chase, Wachovia, ABN, Wells Fargo, or Citi. Now they will charge you about $50-$75 per trade but they will give you great advice for your money. Remember, you get what you pay for, but ask about fees first!!! Now as time goes on and you get more familiar with trading and investing then move to an Ameritrade or E*Trade for the $5 trades when you are confident you can make your own decisions. Investing is like getting a masters degree, it takes a long time to get a good education, be patient, pay attention, and it will pay off. Just remember for every person that makes a profitable trade, someone else lost, but you only need to be right 51% of the time. So have fun, spend wisely, and like I said in the beginning get some good advice from a pro! Good luck!
- Open a brokerage account at TD Ameritrade and then drop me a line if you have more questions. Top 4 Answerer.
- I would suggest you to check the website below to learn more on shares and stock trading and how to select the best shares. Hope it helps. http://money-review-site.com/shares.html http://www.money-review-site.com
