What advice would you give to a beginner that wants to get into the stock market?
414933
Do your homework, especially on HOT TIPS people may offer you.  Never invest more than you can afford to lose.
17606
Assuming you live in the US investing in the share (stock) market is as simple as:\n1. Opening a brokerage account with one of the brokerage firms such as Wells Fargo, TD WaterHouse, Ameriprise with a deposit of say $1000 and start buying and selling shares online.\n2. Initially you could buy shares upto your deposit amount\n3. As you build assets you will be eligible to borrow against your assets and buy stocks on margin even if you don't have cash in the account. This is a risky strategy and should be employed by experienced investors
646357
Open a brokerage account with at least $350.00 and invest in the stock market with the help of a Financial Advisor like myself and when your stocks are up by 5% (Which could take as long as a week) you sell them and make $3.50 (Asuming you are a Scottrade Customer paying $14.00 in comissions) \nKeep doing it over and over for at least 300 times and you will get $1,000.00\n\nNote: \nIf you invest $700.00 you only need to wait until the stock is up 3% to sell and that could happen in two days.\n\nIf you invest $1,400 you only need to wait until the stock is up 2% to sell and that could happen in one day.\n\nYou get the idea.\n\nTop 3 Answerer in Business & Finance. (Vote for me)
517192
Buy a diversified series of mutual funds. Individual stocks are just way too risky in most cases, especially for novice investors, even if they look like a sure thing.  How are Enron and Worldcom doing right now?\n\nMake sure you hit all the assets classes, like Large cap stocks, small/mid cap stocks, international stocks, emerging markets stocks, government debt, corporate debt, hi-yield debt, foreign debt, emerging markets debt, real estate, commodities, and precious metals. That's 12 categories right there, so let's say you get started with with $1200, you're talking about $100 each. \n\nThen sit back and rebalance each year, back to your original percentages. This is called asset allocation. The thinking being, what's BEEN hot is more than likely not going to STAY hot. All markets, after all, are cyclical.  This is why people who invest their 401(k) by just putting in whatever's had the most recent best numbers never get anywhere--they're investig in something that DID will and IS probably NOT doing well.\n\nThis sort of portfolio should average 8-12% per year, so just split the difference and say 10%. Will it do 10% EVERY year? Of course not. I'd be surprised if it ever did EXACTLY 10%. That's an annual average. With that average, your money should double roughly every 7 years. \nSo, in 7 years you should have about $2,000\nin 14 years you should have about $4,000\nin 21 years you should have about $8,000\nin 28 years you should have about $16,000\nin 35 years you should have about $32,000\nin 42 years you should have about $64,000\nin 49 years you should have about $128,000\nin 56 years you should have about $256,000\nin 63 years you should have about $512,000\nin 70 years you should have about $1,024,000!\n\nOf course, if you keep adding money in, say $100 a month, you'll become a millionaire MUCH sooner. The key is discipline, and sticking in when markets are up OR down. Don't try to time the market--you'll NEVER get it right.\n\nHere's a handy formula:\n\n$100/month x 12% retutn x 20 years = $100,000.  \n\nSo if you invest $300 a month, you can expect to have $300,000 or so in 20 years, depending on what return you get.  And remember, even if you stop there, that money itself will double again in 7-10 years, depending.  Then double again.  Then double again.  You get the idea.\n\nIn short, you can make a HELL of a lot of money, with a small output on your part, if you do it right, and are patient.\n\nOh, and if you qualify, and do this all in a Roth IRA? Then every penny will be 100% TAX-FREE. That's a deal that's too good to pass up. That's why I tell all my under-30 clients--if you make under $90,000, and therefore qualify to do a Roth, you'd be a fool not to. Just having the power of youth (and therefore time) on your side is such an advantage, to squander it would be such a waste!\n\nHope this helps!\n--J.\n\nP.S. The previous answerer's advice about contacting Edward Jones is gold.  I would go to their website at www.edwardjones.com, enter your zip code, and find the closest office to you.  Chances are there's one within 10 miles.  They have 10,000 office in the US, UK, and Canada.  And they will take care of you right if you decide you don't want to go it alone.
372074
An answer would take volumes to provide, so let me suggest some literature: \n\nI would recommend William O'Neil's "The Successful Investor" as a good starting point. Follow that up with Peter Lynch's "Beating the Street". That should provide you with two strategies that you can learn from in building your own investment strategy.\n\nOther good books include "The Motley Fool Investment Guide" by Tom and Dave Gardner or "Real Money" by James Cramer.\n\nI have read all the books above and devised a strategy that adopts a bit from each one. \n\nAnother thing you can do is invest using a fictional portfolio. Let that run for a few months to see if you are ready to take on wall street. In the meantime, let a professional look after your money (ie, mutual funds). Once you are ready, sell the fund and invest on your own.\n\nRemember, the time spend learning about investing is far less then the money lost by not being prepared.\n\nGood luck.
23258
1) Read everything you can get your hands on about investing.  I would start with "How To Make Money In Stocks" by William O'Neil.  Yahoo Finance has a very good "education" section also. \n\n2) Never ever purchase a stock based on what you read here on or a message board.  Everybody on a message board has an agenda.
1026567
First you should know what your options for investing are. \n\nIf you don't have a good deal of money (in the thousands), you shouldn't invest in stocks because you won't be able to diversify your holdings enough - you need a well balanced portfolio that fits your goals and spreads out risk.\n\nUsually mutual funds are the most convenient and practical way for most people to invest in the stock market, with fund minimums starting around $1000 for funds like Vanguard STAR (VGSTX, a fund for beginning investors), and most of them being around $3,000 (and certainly going past that).\n\nAnother option is exchange-traded funds. They are baskets of stocks that are traded like stocks, and have lower expense ratios (the percentage that the fund company takes from your total return every year, usually under 1%) than mutual funds. ETFs don't have minimums.\n\nHere's the "Learn" section of a very reputable securities analysis company called Morningstar - they make lots of books about investing which you might want to check out as well.\n\nhttp://www.morningstar.com/Cover/Workshop.html?pgid=hetablearn\n\nIf you take a lot of tests there (and do well on them), you can actually send for a free book. Of course, you'll be on their mailing list after that.\n\nhttp://www.investopedia.com is also another great website for reading about all the different options available to you.\n\nAs for the brokers that you will have to buy your investments through (unless you buy it straight from a fund company like Vanguard, T. Rowe Price, or Fidelity), you have quite a few choices. The more affordable, while still easy-to-use brokers are Scottrade and TradeKing, while E-Trade and TDAmeritrade are very well-established and user-friendly but more costly brokers.\n\nHope I helped.
637938
Learn how to pick stocks.  You need to swing trade.  You need around 10K to start.  And you can be a millonaire in 10 years.  Keep in mind, you need to learn how to pick stocks first.  You can double every 6 months if you do.\n\nAside from that, learn how to play basketball like MJ, or sing like Mick Jagger, or talk smut like Howard Stern, or have a family name like George W Bush.\n\nI say picking stocks correctly is your best bet.
67826
Stock market is a kind of business where things happen so fast that one can’t handle it. It’s like a fighter jet where one mistake makes up loose a lot. \n\nBut once you had a good grip on it, you do get good returns. I suggest you to enter in the market after learning and getting good info about how it works. \n\nIf you have 100$ for example as saving, I suggest you keep 33% of it in safe deposit, invest 33% in secure stocks, and take risk or do learning with 34%, so you wont loose all. \n\nIts better to start with any online company in the initial phase. and yes if you want to learn trading try to find some game or go to this website www.fxplayer.com or FXCM trading website become their member and start dummy forex trading, it will help you in understanding the logics and tricks of trading.\n\nIn this world, 5 things exist in all businesses.\n1- Seller\n2- Buyer\n3- Product\n4- profit/loss\n5- How quick you make a decision\n\nThe best TIP for any business like trading or anything that my dad told me is\n\nDon’t hold your stock or goods if you are getting some profit, cos you don’t know what price the next customer will offer you. \n\nWith my 15 years of business experience, when ever I go opposite to his direction, in 80% cases I never got the best price. Indeed experience counts a lot.
505409
I would not buy stock options they are too risky, especially for beginners. I would recommend the following approach:\n\nFirst, I would make sure you have at least 3 months salary saved up in the bank or in a money market fund for an emergency fund. Financial disasters like getting layed off or sick happen to all of us.\nSecond, I would pay off all high interest debt. Pay off everything you can except the house mortgage. Paying off debt is one of the best investments you can make. You will have more money in the future because you won't have credit card bills to pay.\nThird, if you have money left, start investing in stocks, bonds, and money market funds.  You want to buy a diversified portfolio of stocks, as individual stocks are too risky.  For most folks this means buying mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money conservatively, in money market funds and bond funds, and part aggressively in stock funds. Vanguard.com has an on-line questionnaire which will give you an idea how aggressive you want to be. \nInvesting in a mutual fund IRA for retirement may give you an income tax break. Talk to your tax adviser. You may also be able to invest in a stock mutual fund via a 401K plan at work.\nBelieving someone you met over the Internet and know nothing about is risky. Read these websites for further information.
69628
Stocks represent ownership in a corporation.  When a company goes public, they sell shares to the general public thru an underwriter who sells the shares to large clients.  Once these large clients have the stocks any individual can buy or sell these stocks in the open market -- once you have access to the market.\n\nTo get access to the market you need to open up a brokerage account with an investment company.  If you have never bought or sold stocks before I highly recommend that you get your feet wet with mutual funds first -- reading the prospectuses could provide you with some information about what THEY look for when purchasing stocks and bonds.\n\nThe stock market is the bets place to have your money for the long term, but you really should leave it to the experts -- funds are a great way to diversify, particularly with limited funds.
600002
I'm a professional investor.  I highly recommend that you invest inside of a ROTH IRA.  Not only for the tax benefits, but as a young person, if you need the money for a house down payment, you can get money out of a Roth.  I would strongly consider avoiding stocks if you're a beginner.  You're competing with professionals who do this for a living and you may get lucky, but 99% of beginners *eventually* take themselves to the cleaners.  You probably don't have a ton of capital to begin with, so a diversified mutual fund makes the most long-term sense.\n\nI do recommend beginning to invest in college.  It's a great habit to form.  I did the same.  While my buddies were out buying much nicer cars and even boats with money they saved, I was socking money into a retirement account.  The difference an appreciating IRA makes in comparison with a depreciating vehicle is mind boggling.\n\nStart now.  Start simple and diversified with a mutual fund.  Invest inside of a Roth IRA.\n\nIf you really want to trade stocks, then be willing to lose 50% or more of what you're starting with.  Most people I know, do.\n\nGood luck, email me with any questions,\n\nJared
327666
Simply open an account with a broker - I recommend an internet broker such as E*Trade.  They are cheaper but do not offer any advice - you have to decide when to buy or sell.  \n\nThere are 2 types of brokerage accounts - cash and margin.  In a cash account you must pay for stock purchased within 5 days of your purchase.  This is the only approach for a beginner.  \n\nDO NOT TAKE DELIVERY OF YOU SHARES - leave them with your broker - they are safe there and if you have them and loose them they transact like cash and there is no insurance against theft etc. Also when your broker holds the shares you can make an immediate sale without sending the shares back to the broker via registered mail. \n\nAfter you build up your account (amount depends upon the broker and your holdings) you will be able to switch to a margin account.  In this type of account you buy stock on the strength of the stock you hold with the broker (buying on margin).  In other words, if you have 100% equity in say $100,00 in stock, the broker will extend credit of maybe $150,000 and you can buy additional stock up to that amount with no additional cash.  \n\nHOWEVER there are MAJOR pitfalls to buying stock on margin. 1) the broker will charge you interest on the amount you owe and MORE IMPORTANTLY if your holdings begin to slide in the market the broker will sell as many of your holdings as necessary to cover the credit (margin) the broker extended to you - this is referred to as a margin call.  A margin call is done by the broker WITHOUT YOUR PERMISSION and depending upon the volatility of the market can happen within hours.. \n\nMnay, many, many people have lost everything by over extending their margin buying and then loosing everything via a margin call.  I recommend you only use a margin account to cover your purchases while your check for your purchases in enroute to the broker.
764708
Technically, it is extremely simple with today's information era to invest or trade stocks and shares. You simply need to open a trading account, fund that account, buy a stock and sell it later at a higher price for a profit. Simple?\n\nYou can sign up for an online trading account with http://www.sharekhan.com\n\nWell, that simplicity is exactly the sheep skin that hides the wolf beneath. That is exactly the expressway to wasting a lot of money.\n\nInvesting or trading the stock markets never start from opening a trading account... it starts from adequate investment and trading knowledge. There are quite a number of things you need to learn before you can even start thinking of the stock markets ...\n\n1. You need to understand how the stock market works and what it is exactly about.\n\n2. You need to know what are the different styles of trading in stocks and shares. \n\n3. You need to read about why so many people lose their shirts in the stock markets so that you can avoid their mistakes and also decide if this is a risk you want to take.\n\nFor all these issues and more, you can read about them from some of the articles that I wrote at http://www.mastersoequity.com/articles.htm\n\nAfter you are adequately armed with the basic concepts and ideas, you need to know how to find profitable stocks to trade or invest in. You can do that the easy way by subscribing to stock pick services (example http://www.stockpickmaster.com ) or you can learn to use charting tools and softwares to find stocks with parameters that you can pre-define. (example http://www.metastock.com ) \n\nAll in all, investment and trading is a lifelong education and non stop learning. No one is ever done learning and catching up with changes in the markets. \n\nIf you want a reliable, sure fire method to trade the indian market, please go to http://stocklab-india.mastersoequity.com . There, you will also get to read about why most beginners in the share market lose all their money and how to prevent that from happening to you. \n\n\nHope these information helps.
484335
Instead of trying to get something for nothing, which will only get you opinions and not facts or knowledge, start looking at "how" to invest, rather than "what" to invest in. \n\nInstead of looking at assest classes and divestiture and mutual funds vs Google, find out first the condition of the market, its position, and its trend. All boats rise and fall on the tide, unless you're clairvoyand and can pick the one or two that doesn't. No future in swimming against the tide.\n\nYou have to consider that the Dow is again approaching that all-time historical high set in Jan 2000 at 11,721. Looks like a Double Top to me, but some people say we could double that again. Logically, this is one of the scariest markets I've ever seen in two decades of watching it; just try to find something that is stable, anything. Doesn't exist, does it. Anything could send this market over the edge to the great void. But hey, it might double too, who knows.\n\nThis is simply not a good entry point for investors. Be patient, wait a few months, and you'll be able to buy much more stock a lot cheaper, the risks will be lower (even though they will seem higher), and your chance of success greater.\n\nFor most people, the name of the game is capital preservation. You don't invest when the market gets too risky or too frothy or is nearing a market top or an old market top, or when the market is overpriced, or unstable, and all of these things are true today. There really is a time when cash is King. That 1.5% CD is going to look pretty good when everyone else is cryin' in their beer about losses. Or the market could just go sideways to work off the excesses, but either way, you're safe if you're out. Wanna throw the dice, go to Vegas.\n\nIf you wish to research the “Buy and Hold Strategy” further, or perhaps trade yourself, I recommend two book titles. One is called "Which Is Better, Buy-and-Hold or Market Timing?" The other is "Do You Have What It Takes to Be a Market Timer?" They will give you plenty to think about.
186205
Tips? \n\nDon't take candy from strangers. Don't wear stripes with plaids. Don't buy stocks, buy mutual funds ... these tips are guaranteed good advice!
824807
Congratulations on getting started. It’ll help you more than you know! \n\nYour first dollars should be spent on getting educated on investing. You don't have to train to trade them professionally, but we are talking about your future here. So the more you learn, the more it'll help you! So let's start there.\n\nYou ask a very broad question, so be prepared for a pretty long answer. Just take it in chunks!\n\n\nHow to invest depends on what you already know. We'll assume that you're beginning since you say you're new!\n\nA good primer is How to Make Money in Stocks by William O'Neil. You can get it cheap just about anywhere. It’s widely available new or used.\n\nAnother good one is one of Jim Cramer's books (he’s got a few). \n\nBut books will only get you so far. At some point, you'll also want to get at least a little training. There are some great education companies if you want to make the investment. Investools.com or optionetics.com are both very good companies as is tmitchell.com\n\nFor free, you can start by visiting thestreet.com and investopedia.com. That'll get you a pretty good primer so at least you'll understand what the markets are and what a stock is, etc. \n\nIf you get a chance, watch Mad Money on CNBC. Don't trade any of his picks until you track many of them over time. Just use the show to get you to understand some basics and get a feel for the market itself.\n\nNext, subscribe to something like Investorsbusiness daily or something like that that can help you identify good stocks.\n\nOnce you understand stocks, go to 888options.com. It's a website that'll help you understand options (what they do, how they work, etc). You don't need to trade them, but the more you know, the more you'll see how options can really be the safest way to invest (once you're educated).\n\nFor discipline (which is crucial to successful trading), probably Trading in the Zone by Mark Douglas or Mastering the Trade by John Carter\n\nI know that’s a LOT to absorb. Just take it one step at a time for now. Start with a book or two to give you an idea of where to begin. Take your time, and let it seep in. \n\nAs you get up to speed, you should papertrade to practice (highly recommended). This should help reduce your losses in the beginning as you get used to buying/selling.\n\nYou can practice for free on almost any reputable broker site (optionsxpress, scottrade, thinkorswim, etc). And yes, you can definitely deal easily online.\n\nStart slow, then as you figure things out, you can buy more shares.\n\nCongrats again on getting started. If you have any questions, please let me know. \n\nHope this helps!\n\n\nAdditional edit: I tried to answer your question, but you haven't confirmed your email yet, so I can't reply.