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The Basics Of Investing?

hey I've decided to try out the stock market but the question os how what are the basics for ONLINE trade and whos the cheapest trader to go through this isnt a life changing thing i have income i just want to try it out for now and see if i like it i have like $200 where do i start and what do i do from there?

Public Comments

  1. forex.com allows you to setup a practice acct. great way to learn... b4 you put a dime into the market
  2. I like to recommend DRIP Plans to anyone who is serious about investing, but I really like to suggest them to beginners. They are seldom recommended by brokers due to the low rate of commissions received. However, these reinvestment plans can be very powerful long-term investments. Studies have shown that DRIP's are one of the best strategies on Wall Street. They are inexpensive and easy to start. New investors to the stock market should definitely consider a DRIP Plan. Companies like Toyota, Royal Canadian Bank, Sony, Bank of America, General Electric and many other Blue Chip Stocks can be purchased through your DRIP Plan, with as little as 1 share in most cases. These long-term plans are great for beginners as well as veterans. Check them out. Best of Luck
  3. In the beginning “newbie” traders & investors DO NOT INVEST any money. It probably won’t be long when you’ll feel you’re ready to invest your hard-earned money. Before taking that step, you really should do research about what you are investing in. You should LEARN HOW: A] the stock market works. B] to invest in many, many various ways. C] to properly trade D] Properly manage the money in your trading account. "Newbie" investors & traders ALWAYS make mistakes. In fact, throughout a person's trading, he/she makes mistakes. END E-MAIL #! WITH PRELIM BEGIN E-MAIL #2 In the beginning, you READ & LEARN about the market & how it works: Read "Investing for Dummies" As you read & do research about the investments you are interested in, sometimes you'll come across a financial or investment term you never heard before. http://investopedia.com is a free site. It’s recognized by Y! A as a "Featured Knowledge Partner". You can usually find excellent, easy-to-understand definitions of many financial & investment terms by going to Investopedia’s dictionary. It also has a free, paper trading platform. You can set up a virtual account & almost trade as though you were trading with real money. http://finance.yahoo.com is also recognized by Y! A as a "Featured Knowledge Partner" $200 may be just enough for you to get started. BUT you'll probably be pretty upset if you lose it. THIS IS NOT SPAM: I DO NOT know this man. I am not associated w/ him in any way. I know of him & the wonderful book he wrote. You should invest in a copy of “The Richest Man in Babylon” by George S. Classon. You can get the book on http://amazon.com Its easy to read & follow. You can write in it & make notes in it. Simply read five [5] pages of this book - or any book - each and every day. OR You can leave it on the shelf, on a table or on the floor & let it collect dust. Thanks for asking your Q! I enjoyed answering it! VTY, Ron Berue Yes, that is my real last name!
  4. $200 is a challenge because most mutual funds want +2K to open. you will have a granualarity problem with most of the top etf's ( spy, dia, qqqq) - you will not be able invest a good part of the dollars because of the high share price. i recommend that you buy 10 shares of Pfiser (PFE). it pays a fairly hefty 6% dividend and does not seem to suffer from the 'whipsaw' disease that so many other stocks suffer from these days. you want your first direct stock ownership to be gentle, maybe a little boring, but positive. if you can find a dividend reinvestment plan (DRIP) for PFE even better. they will reinvest your dividends automagically and track fractional shares for you. put the $200 in and look at it no more than once a year when you fill out your taxes. this is not enough money to trade in and out of the market because even the cheapo online brokers are going to want $8-16 bucks per trade, 4 to 8% of your balance.
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