Your Questions About How To Invest In Stocks

Michael asks…

I’m very new to investing stocks and in fact I plan on registering with ETrade for the first time.?

I need to know if I’m making the right decision. I want to start off my Etrade with $500 dollars and graduately build on it. How much stock should I invest in. I want to make this a way of life and build my future on living the luxurious life on this.

John answers:

You’re not ready to open a brokerage account and start investing. — Learn what you’re doing, why you’re doing it and how to do it. If you have to ask how much to invest, you’re not ready.
I started investing at the age of 11, but I knew what I wanted to buy, what brokerage firm to use and exactly how much to spend (and it wasn’t 100% of my money).

Before you invest in any security, the first investment you should make is in yourself, and the best investment you can make is by educating yourself. Start your education by learning why you should invest and the importance of being able to make your own decisions or how the pro’s make theirs.

Here is some reading material that can get you started in the right direction,
Beating the Street by Peter Lynch
Bulls Make Money, Bears Make Money, Pigs Get Slaughtered, by Gallea
From Riches to Rags, by I.C. Freeley
Millionaire Traders, Lein & Schlosberg
How to Make Money in Stocks” by William O’Neil
24 Essential Lessons for Investment Success by William O’Neil
The Intelligent Investor, by Benjamin Graham
Common Stocks, Uncommon Profits, by Philip A. Fisher
One Up on Wall Street by Peter Lynch
Stocks for the Long Run, by Jeremy Siegel
The Interpretation of Financial Statements by Benjamin Graham
The Warren Buffett Way by Robert Hagstrom
Trading for a Living, by Alexander Elder
What Works on Wall Street by James O’Shaunessey
You Can Be a Stock Market Genius by Joel Greenblatt
Your Money and Your Brain by Jason Zweig

Get into the habit of making daily visits to some websites like MSN Money and Yahoo Finance. (http://moneycentral.msn.com/home.asp , http://finance.yahoo.com/
Other website that can provide instructions and help with procedures and terminology are Investopedia – http://www.investopedia.com/ Stock Charts – http://stockcharts.com/ http://www.investorshub.com/ http://www.1source4stocks.com/, http://www.tradingstocksguide.com/tradin…
Visit some of the more professional websites like Zacks- http://www.zacks.com/
Smart Money – http://www.smartmoney.com/ Schaeffer’s http://www.schaeffersresearch.com/ Some of these web sites will have advertisers who are worth looking into also. And remember, if they offer free information, get it.

Attend all the free seminars you can, just be careful and don’t get pressured into anything you really don’t want or need. Most schools offer courses in finance and economics, but very few will have courses on the mechanics of the investment markets, if they do try taking the course. You may want to consider on-line courses, the New York Institute of Finance use to have such courses. Try to get some fee information from the stocks exchanges they all have (had) free booklets, SIAC and some of the regulators (FINRA SEC MSRB CBOE) may provide some free literature.

You at least have made the right decision to start investing, this is the first big step and it won’t be your last. Keep taking those steps forward and along the way never take the advice from people that are not in the market or try to tell you not to invest.

Good luck on your journey

James asks…

What are some good sites to invest in stocks?

A friend of mine started with Etrade. I signed up but they somehow mixed my information with my fathers and wanted me to fax them all of this information that I don’t have the time to do at the moment.
He also stated that etrade has a fee per trade which I don’t like..

but what are a list of stock trading sites? Good ones..

Else, how else do people invest in stocks other than the internet? Would it just be through the actual stock market?

John answers:

All major brokerage firms provide their clients with on-line services, including trading platforms, latest market & financial news and research.

Customer need to select the site that is best for them. Traders have requirements in a site, while investors have other requirements.

Although most sites are geared to general securities and commodities, however customers may have special needs for the types of products they trade, and the markets in which they trade. For example I use Fidelity for investing. Scottrade for equities trading and ThinkorSwim for option trading

It seems that the most popular firms for on-line investing/trading all of which provide excellent platforms and services are; Scottrade; Chas.Schwab; TDAmeritrade; Fidelity; E-Trade and Thinkorswim. In your situation, you may be best served if you select Scottrade or Ameritrade

HOWEVER, based on the wording of your question you are not ready to open an account with any brokerage firm. Before you open an account with a brokerage firm, it would be in your best interest to learn what you’re doing, why you’re doing it and how to do it.

William asks…

Whats the least amount of money I can invest in stocks and shares?

I would like to try to buy some stocks or shares as a hobby,nothing serious.Whats the least amount of money I can invest and how do I do it?

John answers:

Well personally i would save at least £500 before i bought any..
Http://www.hl.co.uk/
are excellent as you can choose from thousands of International companies ,just click on Share Research & Prices..

Helen asks…

How do you invest in stocks. Website? or who is the best company to go throw? Please help?

Need to learn how to invest in stocks.

John answers:

My answer is in this advise I give everyone:

Choose a stock of a solid company(s) (in or outside the USA) that you believe has a future (or a mutual fund), and has a 3-5 year record of consistent growth of its share/stock price. Look in on its price and news articles (like through Yahoo Finance) every few days or daily to make sure nothing tragic is occurring to your particular company or stock’s value. But HOLD it (except in the event of some major free-fall). Jumping in and out (selling the shares and buying them again within 3 business days) to avoid losses is only permitted by law if you are a ‘margin trader’. As you earn money you should also buy the stock of a company in a different industry, but using the same evaluation technique as above. Eventually you should hold at least one solid company’s stock in several healthy industries.

This is a simple stock market plan that should serve you very well. You’ll need to contact a brokerage to start an account. I like Fidelity and Scottrade. Both have online trading. If you don’t have an IRA (Individual Retirement Account) I would start a Roth IRA as the account in which to keep your stock because all the earnings/gains are tax-free. A HUGE benefit. And max the allowed contributions whenever you can afford to. You can’t withdraw this money until age 59 ½ without a major penalty, but still the wise thing to start first. You can also start a second regular brokerage account at the same time and place whatever amount of stocks in it, if you feel more comfortable knowing you can sell off and withdraw the money anytime. But you’ll have to pay capital gains tax on those withdrawals.

Good luck.

Jesus is Lord.

Maria asks…

I would like to find out how I can invest in stocks, for the first time. How can I do that?Is it a good trade?

I’m really interested in find out, how to start investing in stocks for the first time. Is it a hard trade to get invovled in? Or is it easy? Please I’d really like to know.

John answers:

Playing stocks is a risky business, and more people fail than win. You might be a winner, asking questions before you invest is an indicator that you might be. First thing first, read three books on investing. Three different opinions, three different sources, cover to cover.

Then, when you have a good idea, pick out a couple of mutual funds you like, and pay attention to the stocks within that fund. See how they move, see how they change, see how the market reacts. While you do this, read three more books.

Keep learning, NEVER stop reading, never assume you know all there is to know. Eventually the information will start to seem redundant, but thats good. It will help keep you grounded. You don’t want to learn the hard way in stocks.

How to be good at stocks also depends on what you define as success. For your first two years, breaking even is success. After that, focus on beating the market average. Its a dangerous risky game, but it can be a lot of fun. Just take it easy, and don’t jump right in. Don’t listen to individual advice someone gives you on a stock. If they were so brilliant, why aren’t they living in a 500 million dollar penthouse in manhattan? If they are on television, its their job to hype you up over certain stocks, its entertainment not advice. I don’t care who they are. If you get advice on a stock, you look at the stock and reanalyze it yourself. Then buy in or not.

But read, research, learn. The only safe bet in stocks is that you will not become a millionare overnight. The stories about people making a fortune overnight happen, but so does winning powerball.

Did I mention research and study? You don’t need a degree, but you should read a dozen or so books on investing from Barnes and Noble before you even begin to think you might be educated to begin trading on your own.

If you simply want to put your savings somewhere safe, and you don’t want to work hard to read financial reports and listen to quarterly statements, the the stock market is good also. Pick a few solid mutual funds, and watch your money beat inflation. CD’s earn less than the rate of inflation, so I don’t like them for long term investment, although they are better than your mattress.

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