I’ve had saved for quite a while that I hadn’t been using. How exactly do I go about buying/selling ?

Is there a minimum to how much I can spend on it? I wanted to do a small test run to see how it worked with something incredibly cheap, but again, I’m entirely clueless on the subject.

 

  • Alex 5:02 am on March 4, 2010

    The best thing among stock market investment states is "hear to all, do for you". Listening to every cliché is as important as different traders face different situations and they have their own say in the practical situations. However, no one knows at what time the advice may help in producing favourable returns. Though, it should be made sure that the tips and advice do not grab the individual thought and calculations. Learn to mold the advice to your own benefit is the main criteria.

    http://ezinearticles.com/?Learn-To-Invest-In-Stocks—Get-Started&id=935472

  • The Innovator 5:02 am on March 4, 2010

    This website can help you get started.

    http://www.freeinvestinglessons.com/

    good luck

  • Keith 5:02 am on March 4, 2010

    finance.yahoo has a thing called My Portfolio where you can keep any number of test portfolios for free. They track the market live during the trading day.
    finance.google.com is my favorite for screening stocks for whatever criteria.

  • Derek 5:02 am on March 4, 2010

    I’d go through no low cost mutual funds.

  • Tyler W 5:02 am on March 4, 2010

    You can open a TD Ameritrade account with $1000, I think. If you don’t have considerable expertise in valuing stocks and more than at least $10,000 to invest, I would simply buy an exchange trade index fund like SPY. Unless you are going to buy a portfilio of at least 20 stocks, you will be taking on an unnecessary ammount of risk (you don’t put all you eggs in one basket). Also, the comissions will be far too high if you buy stocks in lots (purchases) of less than $500, even if you hold them for years.

    Also, it sounds as if you had better take some time to learn how stocks work, before you risk real money buying individual stocks. Even the real pros have only have a 51% success rate, but even they know how much risk they are taking on. If you are completely clueless, you can really get slammed. If you are determined to try out your skill at picking stocks, I would start by creating a fake portfolio on yahoo finance and seeing how you do. That shold be just as much fun, and will spare you some anxiety and probably some regrets.

    I cant exactly teach you how to pick stocks, because to fully understand how stocks work (at least as well as most professionals) would require the equavalent of 18 college credits in finance, economics, and accounting. I can give you some stock picking advise, though.

    The first thing to understand is that stocks are worth only as much as the dividends they are going to pay in the future. It is possible to make a whole lot of money buying a stock that pays no dividends, or to get wiped out buying a stock that pays a big dividend. That is not what I am talking about. What I am saying is that even if a stock never pays you a dividend while you own it, but is bought by somebody else who eventually gets a good stream of dividends, it can still be a very good investement for you. That is because the dividends the stock will pay are that much closer and that much more likely by the time you sell it. But if you but a stock that never pays any dividends, and you never sell it, you will never make any money, no matter how high the price goes. Even if you do sell such as tock to somebody else, they will be buying a worthless investment from you. In any case, I would not count on finding somebody stupider than you to buy your worthless investments from you at higher prices. That only works for so long.

    Second, I would advise you to pick stocks with low forward price-to-earnings ratios, low debt-to equity ratios, high 5-year expected earnings growth, and return on assets over 5%. None of these criteria is moreinportant than than any other. If you put too much weight on growth, or P/E (value), ROA (reinvestment requirements), or Debt-equity ratio (leverage and solvency). You will not do as well. If you want to eliminate some unnecessary risk, I would also stick to stocks with a market cap over 10 billion. Current dividends are a good thing too, as they pay you pack sooner then later, but don’t get caught up on them. Fast-growing companies have no business paying dividends anyway. That money could be better used to grow the business.

    Third, use your head. Ask yourself: "is this company’s product likely to face new competition," "what is going on in the economy that might be keeping this stock artificially low or artificially high," "will this company still be around in 50 years (assuming it is not bought by another firm)" and "what is the biggest risk or problem for this company."

    Fourth, decide ahead of time what will make you sell the stock, write it down, and stick to it. For instance you might say "if this stock’s P/E ratio gets above the S&P 500’s P/E ratio plus 50%, I am going to sell it." or " if 5-year expected earnings growth drops below 10%, I am going to sell." That way, you keep yourself honest and avoid the mistake of falling in love with a stock.

    Fifth, decide how much you are going to invest on a stock ahead of time, and never double down, no matter how much money you lose. There is no such thing as getting back to even. Get back to even on the next stock. Never throw good money after bad.

  • F H 5:02 am on March 4, 2010

    Go to a website etrade or scottrade or preferably usaa.com were you can open a free account the even start you off with some free trades or any other place you chose. wire money from your bank account and then buy MRNA it is trading at $0.21 and is on the rise. This is awesome stock that will be worth several dollars in the coming weeks. Medical company. Great dividends can’t lose.

  • Stock Shock! Procede With Caution! » Blog Archive » Is It Safe To Buy Stocks? 5:08 am on March 4, 2010

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