Your Questions About Investing Tips

William asks…

I have a 1000 dollars, and want to put it towards stocks any tips?

It’s just a starting, I want to invest 1000 dollars into stocks and want to make a profit. What stock should I invest in and whats some good tips.

John answers:

Invest in mutual funds, they are a group of diversified stocks.

The very important thing in investing, is to diversify your investments.

– from Money Talk.

Thomas asks…

I want to start investing at age 18-19, need tips?

I am currently 17, going to turn 18 soon. I am interested in stocks and I have been reading articles online about how to grow wealth and how to invest.

I realize starting early is an advantage so I was planning to get a job and invest a decent amount of my salary in stocks. Already, I don’t spend money on things I don’t necessarily need to save up money. I plan on getting a job in the medical field and I want to save up money for my loan.

What I want to know, is where should I start? And how much money should I invest annually to see a reasonable amount of profit in four or five years?

Thanks

John answers:

Tes, stocks are for you, but what stocks? I prefer mutual funds
whereby the fund manager does the picking. The fund manager
and his team look for the best companies to invest in.
When you do find work, see if they have a 401K plan to invest in.
You may also try a Roth IRA with a limit of $5,000 a year.
This fund company will let you invest with monthly small amounts
of $50.00. American Century 800 378 9878.

Sandra asks…

Whats the purpose of investing in currency, compared to investing in shares ?

I got a friend who gave me a tip about investing in currency with that forex.com site and it appears to be promising but it dosen’t seem no differen’t then investing in shares, stocks, bonds & mutal funds.

So somebody please explain to me whats so unique about investing in currency trading compared to investing in shares ???

John answers:

I wouldn’t recommend it if you don’t really know what you’re doing. You could lose a lot of money and fast. Investing in currencies is something that you should be at least a semi-expert in before you do it. All currencies have their value measured against other currencies. For instance:

Today, 1.00 US dollar = 0.787174 Euros

So the Euro is worth more today, as usual. As you can see, it only takes 0.787 of a Euro to make one whole dollar. The values of currencies fluctuate everyday, all day. So if you know enough to predict through graphs, charts, and financial news, which way a currency will be headed, you can buy them and if they become more valuable, you just made money. Basically, all you are doing is taking your own country’s currency and converting to a different country’s currency in the hopes that the one you get will rise in value.

Shares typically refer to publicly traded stocks which are issued most commonly by medium and large sized companies. When you purchase shares of a stock, you are letting the company borrow your money as an investment, and you hope they are going to profit in the time that you hold the stock, thus making your stock price go up. Then, when you (hopefully) sell your shares at a higher price than what you bought them for, you make money. Many stocks also pay dividends, which is a way to reward shareholders when the company is profiting. Dividends are usually some certain percentage of how much stock you own, paid out a few times a year, depending on the company.

Never get into an investment without doing what is known as “DD,” or “due diligence.” This means that you do thorough research on things you are going to invest in. You know the history of the currency or company, have knowledge about it, and a reasonable understanding of why it should make you profit.

Good luck!

Ken asks…

Whats the purpose of investing in currency, compared to investing in shares ?

I got a friend who gave me a tip about investing in currency with that forex.com site and it appears to be promising but it dosen’t seem no differen’t then investing in shares, stocks, bonds & mutal funds.

So somebody please explain to me whats so unique about investing in currency trading compared to investing in shares ???

John answers:

Fx isn’t investing. It’s speculating. Not that this is a bad thing. You just need to understand the difference.

Buying stock gives you ownership of a piece of the company and a claim on future dividends and earnings. With fx you make money (or lose) when the exchange rate changes.

Michael asks…

Whats the purpose of investing in currency, compared to investing in shares ?

I got a friend who gave me a tip about investing in currency with that forex.com site and it appears to be promising but it dosen’t seem no differen’t then investing in shares, stocks, bonds & mutal funds.

So somebody please explain to me whats so unique about investing in currency trading compared to investing in shares ???

John answers:

Currency trading is almost always a short-term speculative undertaking based on the investor’s judgment about whether a given currency will rise or fall on international currency markets. It is almost never a long-term investment to generate more or less stable income. Thus the only people who make money at it are highly specialized speculators, and they often loose money.

Share or stock investment can be speculative for very short term gain, based on whether one thinks a given stock will decline or fall in the near term, or it can be for the very long-term to generate an income stream over time. Speculative stock investment tends to be done by finance professionals, though some ordinary people now do it hoping for a quick buck. Longer-term stock investment is often preferred by people who want stable longer term income, such as those near retirement, and tend to be in stable companies with an established record of good returns: GE, Microsoft, etc.

Powered by Yahoo! Answers

This entry was posted in Uncategorized. Bookmark the permalink.