Your Questions About How To Invest In Stocks

James asks…

Whats a good website to invest stocks in for a long term process?

I am 18 and want to invest into some stocks and wait for it to grow in the long run. If any one has any suggestions to what websites and what ways to approach this then that would be helpful.

John answers:

I believe mutual funds are much better (and stable) for long-term growth than stocks are. My IRA is through janus.com, and pretty soon I intend on opening up a mutual fund there when I have the $2500 for the one I want.

Https://ww4.janus.com/Janus/Retail/AllFundsOverviewStrategy?Fund_Type=Asset

Ken asks…

Can i get a broker account to invest in stocks with bad credit?

Can i get a broker account to invest in stocks with bad credit? I tried with scottrade online and it said no i cant have one….why not?

John answers:

No. I have never heard of such a thing unless they started doing that recently. They do have certain conditions which have to be met and a good credit score is not one of those conditions. Do a research on other online brokers and see what you get.

Helen asks…

I want to invest in stocks but I want to know what is the best way?

I don’t know that much about investing in stocks but I hear it can help you make some money. Can anyone help me out on what to begin with?

John answers:

Reading books is okay if you want to know the basics, but they are all pretty generic in their advice. No one can predict the future, and that is the big downfall in investing in stocks.

Some pros suggest you invest in companies whose products you love, supposedly because if you love them, others do, too, and the company will make a lot of money and pass it on to investors. Not always true.

I suggest you take it a step further. Instead of investing in just one or two stocks that you love, invest in mutual funds instead. That is a group of stocks – usually hundreds of them – so if one stock goes down, the others will make up for the loss. It’s like investing in oil companies instead of just Exxon.

Sign up for MorningStar.com and take their free investing workshops online. It won’t cost you a penny, and you’ll learn a lot.

Carol asks…

What is the best book that will introduce me into successfully investing in stocks through online brokerages?

I’m 18 years old and would like to invest $300 in stocks and hopefully sell them in 4 years through online brokerages like etrade. What is the best book that will introduce me into successfully investing in stocks through online brokerages?

John answers:

I don’t think it matters where you buy your shares from – online broker or old fashioned broker.

If you buy the wrong ones.. You will loose money.

Online brokers like thinkorswim.com & spectrumlive.com will let you open a practice account [known as a paper money or demo account] – so you can open one of these trade as for real, but with play money.

They also have some great educational tools.

Here are some books that will help you with trading

http://www.thedailytradingreport.com/recommended-reading/

David asks…

What are Key factors to consider when investing in stock market?

What are Key factors to consider when investing in stock market. I am looking to invest in smaller companies with smaller stock prices. I am also looking to invest short term and long term. What are key factors to consider when investing short term and long term. Such as, P/E ratio, dividend yield %, profit etc…

John answers:

Investing is about investing in businesses, yes the various ratios tells you something about the business but as an average of say temperature over a week is less indicative of overall average then one of the entire year, these “key factors” are less accurate and less indicative of the business as the businesses gets smaller. Smaller businesses are difficult enough to research and the data is of course less reliable as the business are smaller. Many brokers will deal with fractional shares, a small price on the share is not an advantage. Knowing the business is an advantage so you’re looking in the wrong places for an investment.

Being a penny stock isn’t a detractor from making a business a good investment but penny stocks are not where you go to find good investments, there are fewer there and it’s harder to determine who they are. Small stocks at small prices are not for beginners and experts find easier pickings else wheres.

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