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How much money should a beginner invest in the stock market?

October 4th, 2009 | | Tags: , , , , | 7 Comments | |

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7 Responses to “How much money should a beginner invest in the stock market?”

  1. bob shark Says:
     October 4th, 2009 at 9:01 pm

    Start with $1,000
    Go to a bank and buy a "balanced mutual Fund" that has no front end load or rear end load (no buy/sell fee)

    This will give you a start with a diversified portfolio , of stocks , bonds, and money market instruments. It will not carry much risk, and will have little volatility. Add to your position when you can.

    Learn all you can about investments and next get more money and invest it in a "Blue Chip" dividend fund. Learn more, earn more, contribute more…and when you are ready to accept the risk, while keeping your other funds, buy a growth equity fund.

    Keep learning and investing and you will get rich

  2. karen b Says:
     October 4th, 2009 at 9:01 pm

    no more than you can afford to lose

  3. Ben Says:
     October 4th, 2009 at 9:01 pm

    It depends.
    The most important thing is that you diversify your portfolio,or
    invest in a variety of different things.
    As for a concrete number, I would say anything’s fine for a beginner, to get experience. If you’re interested no making cash, then no less than 3 or 4k.

  4. Mickey F Says:
     October 4th, 2009 at 9:01 pm

    You should only invest what you are willing to lose and yet feel comfortable about it. Never invest your money if you can’t. Start off with a Mutual Fund that has a low initial investment and no fee/tax. Also, buy some silver bars when the price comes back down. It is slow, but no taxes and you trade them in when you are ready.

  5. muncie birder Says:
     October 4th, 2009 at 9:01 pm

    I can not say that I completely recommend doing so today; but when I was a beginner I invested every cent I had in the stock market and even used margin. I no longer do that. Too old now and much more conservative.

    But there is an old saying. You learn by doing. From what I know today, I would certainly have done differently 45 years ago when I was beginning.

    Here are the trade offs. Every cent you can invest today over a 45 year period if you do not screw up too badly will earn you abut 73 cents. But in ten years every cent you invest will earn you only 28 cents. In 20 years every cent you invest will 11 cents. So the earlier you start the more you will make. There is a heck of a big difference between 73 cents and 28 cents. So starting early pays off really big.

    On the other hand, young people through their inexperience tend to make somewhat rash investments sometimes. I did. Always looking for the killing. Investing in mutual funds tends to moderate the rashness, if you invest in good mutual funds.

  6. Yaasbut Says:
     October 4th, 2009 at 9:01 pm

    When I started I open up an account put all my available cash in it but only invested 1/4 of the total in any one stock, just in case I lost I wouldn’t lose it all. More importantly than how much should you invest is how confident are you in your investing strategy? When you are confident in your strategy you will know how much to invest. If you are not confident make sure you invest enough to cover all your commissions.

  7. Frank Castle Says:
     October 4th, 2009 at 9:01 pm

    Half your salary (If you don’t have a house)

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