how do you get involved with buying stocks?
- yeeooowLv 41 decade agoFavorite Answer
Hi, It's important that we all know about investing.. much more then it was for our parents.
more and more we are become solely responsible for our selves. company pentions are just about a thing of the past. there is much talk about privatizing social security, we are taking on a greater share of medical and disability and long term care by way of higher premiums, copays and lower levels of service
so... you must learn to be an effective investor. Here are the necessary steps to get started
First decide what kind of brokerage you want to work with. You can open a brokerage account in your bank,
with a large full service brokerage or an internet brokerage. I find when I get help, most people want to sell me
things that are better for them then they are for me…. So I use http://www.scottrade.com because it’s cheap and
easy with low frills. I like their streaming quotes and I do my own research and make my own investments. But
any low cost internet brokerage service is fine.
Step 2. get a subscription to Barrons or Investors Business Daily… Don't worry about the cost, and don’t skip
this step. Do this for at least 6 months or a year. At first, It seems a bit mysterious, but pretty soon you start to
understand the terms and things that investors are looking for and what they are afraid of.
Step 3. If you have some money to invest, put it in 3 month CD’s right now. First the market is unstable and
second you have some homework in Step 4 to do before you do any investing.
Step 4. Go out to the internet and search on the following subjects. Become very familiar with the concepts.
Long term investing
dollar cost averaging
Roth ira vs ira
Large med small cap stocks
Value vs growth stocks
No load mutual funds
ETF (also ETN and CEF all similar but with special differences)
Bonds, CD, preferred stock
Life insurance term vs whole
In most cases, I think it is wise to use indexed mutual funds and ETF to build the base of your portfolio.
Step 5 go to http://clearstation.etrade.com/ and sign up for a free account. Play around there by looking at
graphs and fundamentals. If you click on the graph names, you will get clear information about what the graph
is based on and how to interpret it. I think it’s also a good idea to pretend you have $10,000 and start buying
and selling on paper. Keep track of where you are each day for a month… It’s a lot easier to lose play money
then real money….
WARNING: don’t rely on technical analysis alone. These graphs are good at telling you WHEN to buy and sell,
but now WHAT to buy.
Step 6. It’s always a good Idea to see a CFP (certified financial planner) especially if you have a family. But be
sure to go to one who charges a fee, rather then one who gets paid a commission on your investments. Their job
is to work for your benefit, not to sell you investments. They can cover subjects like employee benefits,
insurance, budgeting, living trusts, 401k, taxes and real estate as well as investment types and investment types
to keep away from.
But you can buy the CFP study guide at any book store and learn a lot about those topics yourself.
Always strive to do your own research… you’ll find everyone sounds like an expert so take everything people
tell you with a grain of salt. It’s not easy in the beginning but soon you will be the expert.
Don’t get involved with futures, currency, options (unless you get stock options at work), commodities,
annuities or other derivative type investments at this time.
- 1 decade ago
Education is key. I've been a trader and investor for 12 years. And if it's one thing I tell people over and over again. Education.
I don't mean going to college or taking courses. I mean research. Learning what the markets are. How they work. How you buy. How you sell. What are the risks. Where the scams lay. Successful proven strategies. Above all - account equity money management principles. An individual really needs to think about what they are doing.Source(s): http://investorandtrader.blogspot.com/
- 1 decade ago
2 Words - "Motley Fool"
If you want to read stuff in paper...
Here is the *perfect* book for you:
Why the Fool? Let me put it this way, when congress wanted info on what was going on with the markets during the Enron nonsense, they called Bill Mann, a Key writer for the fool.
The guys are 100x more trustworthy than any other site I've found. (unlike that Jim Cramer guy).
Another nice plus about the site is they've got a free "Stock Market Game" kinda thing at http://caps.fool.com
Check me out I'm ranked like 10th - Flitt12
You've got a great chance, starting early, I didn't get to start till I was out of college.
- Jerry SLv 71 decade ago
you can buy stocks through a stock broker or
for diversification through a mutual fund.
- How do you think about the answers? You can sign in to vote the answer.
- 4 years ago
I recommend 5paisa ( INDIA INFOLINE SECURITIES PVT. LTD.) share broker in both the way i.e. from fees and best from services.
- Anonymous1 decade ago
- Anonymous1 decade ago